Document:

Unassociated Document

    Exhibit
      10.1.1

    $50,000,000 REVOLVING
      CREDIT FACILITY

     

    CREDIT
      AGREEMENT

     

    by
      and
      among

     

    STRATEGIC
      ENERGY, L.L.C.

     

    and

     

    THE
      LENDERS PARTY HERETO

     

    and

     

    PNC
      BANK,
      NATIONAL ASSOCIATION, As Administrative Agent

     

    Dated
      as
      of October 3, 2007

     

    

    
      

    

    

    
      	
              1.

            	
              CERTAIN
                DEFINITIONS

            	
              1

            
	 	
              1.1           Certain
                Definitions

            	
              1

            
	 	
              1.2           Construction

            	
              19

            
	 	
              1.3           Accounting
                Principles

            	
              19

            
	 	 	 
	
              2.

            	
              REVOLVING
                CREDIT FACILITY

            	
              20

            
	 	
              2.1           Commitments.

            	
              20

            
	 	
              2.2           Nature
                of Lenders' Obligations with Respect to Loans.

            	
              20

            
	 	
              2.3           Commitment
                Fees.

            	
              20

            
	 	
              2.4           Facility
                Fees.

            	
              20

            
	 	
              2.5           Loan
                Requests.

            	
              20

            
	 	
              2.6   Making
                Loans;
                Presumptions by the Administrative Agent; Repayment of
                Loans.

            	
              20

            
	 	
              2.7           Notes.

            	
              21

            
	 	
              2.8           Use
                of Proceeds.

            	
              21

            
	 	
              2.9           Letter
                of Credit Subfacility.

            	
              21

            
	 	 	 
	
              3.

            	
              INTENTIONALLY
                OMITTED

            	
              27

            
	 	 	 
	
              4.

            	
              INTEREST
                RATES

            	
              27

            
	 	
              4.1           Interest
                Rate Options.

            	
              27

            
	 	
              4.2           Interest
                Periods.

            	
              28

            
	 	
              4.3           Interest
                After Default.

            	
              28

            
	 	
              4.4   LIBOR
                Rate
                Unascertainable; Illegality; Increased Costs; Deposits Not
                Available.

            	
              28

            
	 	
              4.5           Selection
                of Interest Rate Options.

            	
              29

            
	 	 	 
	
              5.

            	
              PAYMENTS

            	
              29

            
	 	
              5.1           Payments.

            	
              29

            
	 	
              5.2           Pro
                Rata Treatment of Lenders.

            	
              30

            
	 	
              5.3           Sharing
                of Payments by Lenders.

            	
              30

            
	 	
              5.4           Presumptions
                by Administrative Agent.

            	
              30

            
	 	
              5.5           Interest
                Payment Dates.

            	
              31

            
	 	
              5.6           Voluntary
                Prepayments.

            	
              31

            
	 	
              5.7           Mandatory
                Prepayments.

            	
              32

            
	 	
              5.8           Increased
                Costs.

            	
              32

            
	 	
              5.9           Taxes.

            	
              34

            
	 	
              5.10          Indemnity.

            	
              35

            
	 	 	 
	
              6.

            	
              REPRESENTATIONS
                AND WARRANTIES

            	
              36

            
	 	
              6.1           Representations
                and Warranties.

            	
              36

            
	 	
              6.2           Updates
                to Schedules.

            	
              39

            
	 	 	 
	
              7.

            	
              CONDITIONS
                OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

            	
              39

            
	 	
              7.1           First
                Loans and Letters of Credit.

            	
              39

            

    

     

     

    i

    
      

    

    

    
      	 	
              7.2           Each
                Loan or Letter of Credit.

            	
              41

            
	 	 	 
	
              8.

            	
              COVENANTS

            	
              41

            
	 	
              8.1           Affirmative
                Covenants.

            	
              41

            
	 	
              8.2           Negative
                Covenants.

            	
              43

            
	 	
              8.3           Reporting
                Requirements.

            	
              48

            
	 	 	 
	
              9.

            	
              DEFAULT

            	
              50

            
	 	
              9.1           Events
                of Default.

            	
              50

            
	 	
              9.2           Consequences
                of Event of Default.

            	
              52

            
	 	 	 
	
              10.

            	
              THE
                ADMINISTRATIVE AGENT

            	
              54

            
	 	
              10.1           Appointment
                and Authority.

            	
              54

            
	 	
              10.2           Rights
                as a Lender.

            	
              54

            
	 	
              10.3           Exculpatory
                Provisions.

            	
              54

            
	 	
              10.4           Reliance
                by Administrative Agent.

            	
              55

            
	 	
              10.5           Delegation
                of Duties.

            	
              55

            
	 	
              10.6           Resignation
                of Administrative Agent.

            	
              55

            
	 	
              10.7           Non-Reliance
                on Administrative Agent and Other Lenders.

            	
              56

            
	 	
              10.8           No
                Other Duties, etc.

            	
              56

            
	 	
              10.9           Administrative
                Agent's Fee.

            	
              56

            
	 	
              10.10         Authorization
                to Release Collateral and Guarantors.

            	
              56

            
	 	
              10.11    
No
                Reliance on Administrative Agent's Customer Identification
                Program.

            	
              56

            
	 	
              10.12         Intercreditor
                Agreement.

            	
              57

            
	 	 	 
	
              11.

            	
              MISCELLANEOUS

            	
              57

            
	 	
              11.1           Modifications,
                Amendments or Waivers.

            	
              57

            
	 	
              11.2           No
                Implied Waivers; Cumulative Remedies.

            	
              58

            
	 	
              11.3           Expenses;
                Indemnity; Damage Waiver.

            	
              58

            
	 	
              11.4           Holidays.

            	
              59

            
	 	
              11.5           Notices;
                Effectiveness; Electronic Communication.

            	
              59

            
	 	
              11.6           Severability.

            	
              60

            
	 	
              11.7           Duration;
                Survival.

            	
              60

            
	 	
              11.8           Successors
                and Assigns.

            	
              60

            
	 	
              11.9           Confidentiality.

            	
              63

            
	 	
              11.10         Counterparts;
                Integration; Effectiveness.

            	
              64

            
	 	
              11.11  
                 
CHOICE
                OF LAW; SUBMISSION
                TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY
                TRIAL.

            	
              64

            
	 	
              11.12         USA
                Patriot Act Notice.

            	
              65

            

    

    

     ii
      
        

      

    

    

    LIST
      OF SCHEDULES AND EXHIBITS

     

    

    SCHEDULES

     

    
      	
              SCHEDULE
                1.1(A)

            	
              -

            	
              PRICING
                GRID

            
	
              SCHEDULE
                1.1(B)

            	
              -

            	
              COMMITMENTS
                OF LENDERS AND ADDRESSES FOR NOTICES

            
	
              SCHEDULE
                1.1(P)(1)

            	
              -

            	
              EXISTING
                PERMITTED INVESTMENTS

            
	
              SCHEDULE
                1.1(P)(2)

            	
              -

            	
              PERMITTED
                LIENS

            
	
              SCHEDULE
                6.1.1

            	
              -

            	
              QUALIFICATIONS
                TO DO BUSINESS

            
	
              SCHEDULE
                6.1.2

            	
              -

            	
              SUBSIDIARIES

            
	
              SCHEDULE
                6.15

            	
              -

            	
              LITIGATION

            
	
              SCHEDULE
                6.1.14

            	
              -

            	
              ENVIRONMENTAL
                DISCLOSURES

            
	
              SCHEDULE
                7.1.1

            	
              -

            	
              OPINION
                OF COUNSEL

            
	
              SCHEDULE
                8.1.3

            	
              -

            	
              INSURANCE
                REQUIREMENTS RELATING TO COLLATERAL

            
	
              SCHEDULE
                8.2.1

            	
              -

            	
              PERMITTED
                INDEBTEDNESS

            

    

    

    
      	
              
                EXHIBITS

              

            	
               

            

    

     

    
      	
              EXHIBIT
                1.1(A)

            	
              -

            	
              ASSIGNMENT
                AND ASSUMPTION AGREEMENT

            
	
              EXHIBIT
                1.1(G)(1)

            	
              -

            	
              GUARANTOR
                JOINDER

            
	
              EXHIBIT
                1.1(G)(2)

            	
              -

            	
              GUARANTY
                AGREEMENT

            
	
              EXHIBIT
                1.1(G)(3)

            	
              -

            	
              GREAT
                PLAINS GUARANTY AGREEMENT

            
	
              EXHIBIT
                1.1(I)

            	
              -

            	
              INTERCOMPANY
                SUBORDINATION AGREEMENT

            
	
              EXHIBIT
                1.1(N)

            	
              -

            	
              REVOLVING
                CREDIT NOTE

            
	
              EXHIBIT
                1.1(P)(1)

            	
              -

            	
              PATENT,
                TRADEMARK AND COPYRIGHT SECURITY AGREEMENT

            
	
              EXHIBIT
                1.1(P)(2)

            	
              -

            	
              PLEDGE
                AGREEMENT

            
	
              EXHIBIT
                1.1(S)(1)

            	
              -

            	
              SECURITY
                AGREEMENT

            
	
              EXHIBIT
                1.1(S)(2)

            	
              -

            	
              SUBORDINATION
                AGREEMENT

            
	
              EXHIBIT
                2.5

            	
              -

            	
              LOAN
                REQUEST

            
	
              EXHIBIT
                8.3.1

            	
              -

            	
              BORROWING
                BASE CERTIFICATE

            
	
              EXHIBIT
                8.3.4

            	
              -

            	
              QUARTERLY
                COMPLIANCE CERTIFICATE

            

    

     

     

    iii

    
      

    

    

     

     

    CREDIT
      AGREEMENT

     

    THIS
      CREDIT AGREEMENT (as hereafter amended, the "Agreement") is dated as of October
      3, 2007, and is made by and among STRATEGIC ENERGY, L.L.C., a Delaware limited
      liability company (the "Borrower"), each of the GUARANTORS (as hereinafter
      defined and other than Great Plains Energy Incorporated), the LENDERS (as
      hereinafter defined), and PNC BANK, NATIONAL ASSOCIATION, in its capacity as
      administrative agent for the Lenders under this Agreement (hereinafter referred
      to in such capacity as the "Administrative Agent").

     

    The
      Borrower has requested the Lenders to provide a revolving credit facility
      to the Borrower in an aggregate principal amount not to exceed
      $50,000,000.  In consideration of their mutual covenants and
      agreements hereinafter set forth and intending to be legally bound hereby,
      the
      parties hereto covenant and agree as follows:

     

    1.           CERTAIN
      DEFINITIONS

     

    1.1           Certain
      Definitions.

     

      In
      addition to words and terms defined elsewhere in this Agreement, the following
      words and terms shall have the following meanings, respectively, unless the
      context hereof clearly requires otherwise:

     

    Account
      shall mean any account, contract right, general intangible, chattel paper,
      instrument or document representing any right to payment for goods sold or
      services rendered, whether or not earned by performance and whether or not
      evidenced by a contract, instrument or document, which is now owned or hereafter
      acquired by any Borrower or any of its Subsidiaries.

     

    Account
      Debtor shall mean any Person who is or who may become obligated to the
      Borrower or any of its Subsidiaries under, with respect to, or on account of,
      an
      Account.

     

    Acquisition
      shall mean any acquisition whether by purchase or by merger, (i) all of the
      ownership interests of another Person or (ii) substantially all of assets
      of another Person, constituting a business or division of another
      Person.

     

    Administrative
      Agent shall mean PNC Bank, National Association, and its successors and
      assigns.

    

      Administrative
        Agent's Fee shall have the meaning specified in Section 10.9
        [Administrative Agent's Fee].

       

      Administrative
        Agent's Letter shall have the meaning specified in Section 10.9
        [Administrative Agent's Fee].

       

    

    Affiliate
      as to any Person any other Person (i) which directly or indirectly
      controls, is controlled by, or is under common control with such Person,
      (ii) which beneficially owns or holds 10% or more of any class of the
      voting or other equity interests of such Person, or (iii) 10% or more of
      any class of voting interests or other equity interests of which is beneficially
      owned or held, directly or indirectly, by such Person.

     

    Anti-Terrorism
      Laws shall mean any Laws relating to terrorism or money laundering,
      including Executive Order No. 13224, the USA Patriot Act, the Laws comprising
      or
      implementing the Bank Secrecy Act, and the Laws administered by the United
      States Treasury Department's Office of Foreign Asset Control (as any of the
      foregoing Laws may from time to time be amended, renewed, extended, or
      replaced).

     

    

    
      

    

    

    Applicable
      Commitment Fee Rate shall mean the percentage rate per annum based on the
      Unused Availability then in effect according to the pricing grid on Schedule
      1.1(A) below the heading "Commitment Fee."

     

    Applicable
      Letter of Credit Fee Rate shall mean the percentage rate per annum based on
      the Unused Availability then in effect according to the pricing grid on
Schedule 1.1(A) below the heading "Letter of Credit Fee."

     

    Applicable
      Margin shall mean, as applicable:

     

    (A)           the
      percentage spread to be added to the Base Rate applicable to Loans under the
      Base Rate Option based on the Unused Availability then in effect according
      to
      the pricing grid on Schedule 1.1(A) below the heading "Base Rate Spread",
      or

     

    (B)           the
      percentage spread to be added to the LIBOR Rate applicable to Loans under the
      LIBOR Rate Option based on the Unused Availability then in effect according
      to
      the pricing grid on Schedule 1.1(A) below the heading "LIBOR Rate
      Spread".

     

    Approved
      Fund shall mean any fund that is engaged in making, purchasing, holding or
      investing in bank loans and similar extensions of credit in the ordinary course
      of business and that is administered or managed by (a) a Lender,
      (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity
      that administers or manages a Lender.

     

    Assignment
      and Assumption means an assignment and assumption entered into by a Lender
      and an assignee permitted under Section 11.8 [Successors and Assigns], in
      substantially the form of Exhibit 1.1(A).

     

    Authorized
      Officer shall mean, with respect to the Borrower or any of its Subsidiaries,
      the Chief Executive Officer, President, Chief Financial Officer, Vice President
      - Corporate Development and Finance, Treasurer or Assistant Treasurer of such
      Borrower or Subsidiary or such other individuals, designated by written notice
      to the Administrative Agent from the Borrower, authorized to execute notices,
      reports and other documents on behalf of the Borrower or its Subsidiaries
      required hereunder.  The Borrower may amend such list of individuals
      from time to time by giving written notice of such amendment to the
      Administrative Agent.

     

    Base
      Rate shall mean the greater of (i) the interest rate per annum
      announced from time to time by the Administrative Agent at its Principal Office
      as its then prime rate, which rate may not be the lowest rate then being charged
      commercial borrowers by the Administrative Agent, or (ii) the Federal Funds
      Open Rate, plus one half of one percent (0.5%) per annum.

     

    Base
      Rate Option shall mean the option of the Borrower to have Loans bear
      interest at the rate and under the terms set forth in either
      Section 4.1.1(i) [Base Rate Option].

     

    Borrower
      shall mean Strategic Energy, L.L.C., a limited liability company organized
      and
      existing under the laws of the State of Delaware.

     

    Borrowing
      Base shall mean at any time the sum of (i) 85% of Eligible Receivables
      ("Receivables Portion"), plus (ii) either the amount of the GPE
      Letter of Credit or the GPE Limited Guaranty Amount other than the GPE
      Guaranty Increases occurring pursuant to Section 9.1.11 [Breach of Fixed
      Charge Coverage Ratio]; provided that any increase in the amount of
      the GPE Limited Guaranty Amount is made pursuant to an amendment to the GPE
      Guaranty in form and substance satisfactory to the Administrative Agent in
      its
      sole discretion and at a time when GPE's long term senior unsecured debt is
      rated at least Baa3 by Moody's Investors Service or at least BBB- by Standard
      & Poor's Ratings Group, less (iii) the Securitization
      Usage.  Notwithstanding anything to the contrary herein, the
      Administrative Agent may, in its sole discretion, at any time hereafter,
      decrease the advance percentage for Eligible Receivables, or increase the level
      of any reserves or ineligibles, or define or maintain such other
      reserves

     

     

    -2-

    
      

    

    

    or
      ineligibles, as the Administrative Agent may deem necessary or appropriate
      in
      the exercise of it reasonable discretion and based on (1) its analysis of the
      financial condition of the Borrower or (2) any change in the status of the
      Eligible Receivables pursuant to an audit by the Administrative
      Agent.  Any such change shall become effective immediately upon
      written notice from the Administrative Agent to the Borrower for the purpose
      of
      calculating the Borrowing Base hereunder.  For purposes of determining
      the Borrowing Base, (a) the Receivables Portion shall be determined from the
      most recent Borrowing Base Certificate and (b) the GPE Limited Guaranty Amount,
      GPE Letter of Credit amount and Securitization Usage shall be determined
      daily.

     

    Borrowing
      Date shall mean, with respect to any Loan, the date for the making thereof
      or the renewal or conversion thereof at or to the same or a different Interest
      Rate Option, which shall be a Business Day.

     

    Borrowing
      Tranche shall mean specified portions of Loans outstanding as
      follows:  (i) any Loans to which a LIBOR Rate Option applies
      which become subject to the same Interest Rate Option under the same Loan
      Request by the Borrower and which have the same Interest Period shall constitute
      one Borrowing Tranche, and (ii) all Loans to which a Base Rate Option
      applies shall constitute one Borrowing Tranche.

     

    Business
      Day shall mean any day other than a Saturday or Sunday or a legal holiday
      on
      which commercial banks are authorized or required to be closed for business
      in
      Pittsburgh, Pennsylvania and if the applicable Business Day relates to any
      Loan
      to which the LIBOR Rate Option applies, such day must also be a day on which
      dealings are carried on in the London interbank market.

     

    Capital
      Stock shall mean (i) in the case of a corporation, corporate stock, (ii) in
      the case of an association or business entity, any and all shares, interests,
      participations, rights or other equivalents (however designated) of corporate
      stock, (iii) in the case of a partnership, partnership interests (whether
      general or limited) and (iv) any other interest or participation that confers
      on
      a Person the right to receive a share of the profits and losses of, or
      distributions of assets of, the issuing Person.

     

    Cash
      Equivalents shall mean (i) marketable direct obligations issued or
      unconditionally guaranteed by the United States government and backed by the
      full faith and credit of the United States government; (ii) domestic and
      Eurodollar certificates of deposit and time deposits, bankers’ acceptances and
      floating rate certificates of deposit issued by any commercial bank organized
      under the laws of the United States, any state thereof, the District of
      Columbia, any foreign bank, or its branches or agencies, any such issuing bank
      having capital and retained earnings of at least $500,000,000 (fully protected
      against currency fluctuations for any such deposits with a term of more than
      ninety (90) days); (iii) shares of money market, mutual or similar funds having
      assets in excess of $100,000,000 and the investments of which are limited to
      investment grade securities (i.e., securities rated at least Baa3 by Moody’s
      Investors Service, Inc. or at least BBB- by Standard & Poor’s Ratings
      Group); and (iv) commercial paper of United States and foreign banks and bank
      holding companies and their subsidiaries and United States and foreign finance,
      commercial industrial or utility companies which, at the time of acquisition,
      are rated A-1 (or better) by Standard & Poor’s Ratings Group, or P-1 (or
      better) by Moody’s Investors Service, Inc.; provided that the maturities
      of such Cash Equivalents shall not exceed 365 days.

     

    Change
      in Law shall mean the occurrence, after the date of this Agreement, of any
      of the following: (a) the adoption or taking effect of any Law,
      (b) any change in any Law or in the administration, interpretation or
      application thereof by any Official Body or (c) the making or issuance of
      any request, guideline or directive (whether or not having the force of Law)
      by
      any Official Body.

     

    Change
      of Control means an event or series of events by which:

     

    (i)
      GPE
      ceases to own and control directly or indirectly, 51% or more of the Equity
      Interests of the Borrower; or

     

     

    -3-

    
      

    

    

    (ii)  the
      Borrower consolidates with or merges into another corporation or conveys,
      transfers or leases all or substantially all of its property to any Person,
      or
      any corporation consolidates with or merges into the Borrower, in either event
      pursuant to a transaction in which the outstanding Capital Stock of the Borrower
      is reclassified or changed into or exchanged for cash, securities or other
      property; provided, however, that so long as no Potential Default or Event
      of
      Default has occurred and is continuing, a Change of Control shall not be deemed
      to have occurred if (A) after the consummation of any such events, GPE continues
      to own and control, directly or indirectly, 99% or more of the Equity Interests
      of the resulting entity, and (B) the resulting entity delivers to the
      Administrative Agent such documents, instruments, and agreements as are
      necessary to evidence its agreement to be bound by this Agreement and the Loan
      Documents.

     

    Closing
      Date shall mean the Business Day on which the first Loan shall be made,
      which shall be October 3, 2007.

     

    Code
      shall mean the Internal Revenue Code of 1986, as the same may be amended or
      supplemented from time to time, and any successor statute of similar import,
      and
      the rules and regulations thereunder, as from time to time in
      effect.

     

    Collateral
      shall mean all property and interests in property now owned or hereafter
      acquired by the Borrower or any of its Subsidiaries in or upon which a security
      interest, lien or mortgage is granted to the Administrative Agent, for the
      benefit of the Lenders, including under the (i) Security Agreement (ii) Pledge
      Agreement, or (iii) Patent, Trademark and Copyright Security Agreement;
      provided, however, that “Collateral” shall not include the Excluded
      Collateral.

     

    Commitment
      shall mean, as to any Lender at any time, the amount initially set forth
      opposite its name on Schedule 1.1(B) in the column labeled
      "Amount of Commitment for Loans," as such Commitment is thereafter assigned
      or
      modified and Commitments shall mean the aggregate Commitments of all of
      the Lenders.

     

    Commitment
      Fee shall have the meaning specified in Section 2.3 [Commitment
      Fees].

     

    Compliance
      Certificate shall have the meaning specified in Section 8.3.4 [Certificate
      of the Borrower].

     

    Complying
      Lender shall mean any Lender which is not a Non-Complying
      Lender.

     

    Commodities
      Contracts means any and all domestic and foreign
      commodity futures contracts, physical commodities contracts, exchanges for
      physical commodities, options on domestic and foreign commodity contracts,
      spot
      commodities contracts, commodities swaps and swap options, or other commodities
      related derivatives on one or more rates, currencies, commodities, equity
      securities or other equity instruments, debt securities or other debt
      instruments, economic indices or measures of economic risk or value or other
      benchmarks against which payments or deliveries are to be
      made.  Commodities Contacts shall be deemed Hedging Obligations for
      purposes of this Agreement.

     

    Contract
      shall mean, with respect to any Receivable, any and all contracts, instruments,
      agreements, leases, invoices, notes or other writings pursuant to which such
      Receivable arises or that evidence such Receivable or under which an Obligor
      becomes or is obligated to make payment in respect of such
      Receivable.

     

    Distributions
      means (i) any dividend or other distribution, direct or indirect, on account
      of
      any Equity Interests of the Borrower now or hereafter outstanding, except a
      dividend payable solely in the Borrower’s Capital Stock or in options, warrants
      or other rights to purchase such Capital Stock, and (ii) any redemption,
      retirement, purchase or other acquisition for value, direct or indirect, of
      any
      Equity Interests of the Borrower or any of its Subsidiaries now or hereafter
      outstanding.

     

     

    -4-

    
      

    

    

    Dollar,
      Dollars, U.S. Dollars and the symbol $ shall mean lawful money of the
      United States of America.

     

    Drawing
      Date shall have the meaning specified in Section 2.9.3 [Disbursements,
      Reimbursement].

     

    EBITDA  shall
      mean, for any period, on a consolidated basis for the Borrower and its
      Subsidiaries, the sum of the amounts for such period, without duplication,
      of
      (i) Net Income, plus (ii) Interest Expense, plus (iii) charges
      against income for foreign, federal, state and local taxes to the extent
      deducted in computing Net Income, plus (iv) depreciation expense to the
      extent deducted in computing Net Income, plus (v) amortization expense,
      including, without limitation, amortization of goodwill and other intangible
      assets and Transaction Costs to the extent deducted in computing Net Income,
      plus (vi) other non-cash charges to the extent deducted in computing Net
      Income, including non-cash charges for mark to market adjustments under FAS
      133,
less (vii) non-cash gains to the extent reflected in Net Income,
      including non-cash gains for mark to market adjustments under FAS
      133.

     

    Eligible
      Receivables as used herein shall mean the Eligible Receivables as such term
      is defined in the Receivables Purchase Agreement as of the Closing
      Date.

     

    Energy
      Purchase Contracts shall mean those physical and financial wholesale
      agreements between Borrower and a counterparty for the purpose of buying and
      selling electric energy in the ordinary course of its business.

     

    Environmental
      Laws shall mean all applicable federal, state, local, tribal, territorial
      and foreign Laws (including common law), constitutions, statutes, treaties,
      regulations, rules, ordinances and codes and any consent decrees, settlement
      agreements, judgments, orders, directives, policies or programs issued by or
      entered into with an Official Body pertaining or relating to: (i) pollution
      or pollution control; (ii) protection of human health from exposure to
      regulated substances; or the environment; (iii) protection of the
      environment and/or natural resources; employee safety in the workplace;
      (iv) the presence, use, management, generation, manufacture, processing,
      extraction, treatment, recycling, refining, reclamation, labeling, packaging,
      sale, transport, storage, collection, distribution, disposal or release or
      threat of release of regulated substances; (v) the presence of
      contamination; (vi) the protection of endangered or threatened species; and
      (vii) the protection of environmentally sensitive areas.

     

    Equity
      Interests means Capital Stock and all warrants, options or other rights to
      acquire Capital Stock (but excluding any debt security that is convertible
      into,
      or exchangeable for, Capital Stock).

     

    ERISA
      shall mean the Employee Retirement Income Security Act of 1974, as the same
      may
      be amended or supplemented from time to time, and any successor statute of
      similar import, and the rules and regulations thereunder, as from time to time
      in effect.

     

    ERISA
      Affiliate shall mean, at any time, any trade or business (whether or not
      incorporated) under common control with the Borrower and are treated as a single
      employer under Section 414 of the Code.

     

    ERISA
      Event means (a) a reportable event (under Section 4043 of ERISA and
      regulations thereunder) with respect to a Pension Plan; (b) a withdrawal by
      Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063
      of
      ERISA during a plan year in which it was a substantial employer (as defined
      in
      Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as
      such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial
      withdrawal by Borrower or any ERISA Affiliate from a Multiemployer Plan or
      notification that a Multiemployer Plan is in reorganization; (d) the filing
      of a
      notice of intent to terminate, the treatment of a Plan amendment as a
      termination under Sections 4041 or 4041A of ERISA, or the commencement of
      proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan;
      (e)
      an event or condition which constitutes grounds

     

     

    -5-

    
      

    

    

    under
      Section 4042 of ERISA for the termination of, or the appointment of a trustee
      to
      administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of
      any
      liability under Title IV of ERISA, other than for PBGC premiums due but not
      delinquent under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate;
      provided that it shall not constitute an "ERISA Event" hereunder unless it
      is
      reasonably likely to result in liability of $1,000,000 or more to the Borrower
      or its Subsidiaries.

     

    ERISA
      Group shall mean, at any time, the Borrower and all members of a controlled
      group of corporations and all trades or businesses (whether or not incorporated)
      under common control and all other entities which, together with the Borrower,
      are treated as a single employer under Section 414 of the Internal Revenue
      Code.

     

    Event
      of Default shall mean any of the events described in Section 9.1
      [Events of Default] and referred to therein as an "Event of
      Default."

     

    Excluded
      Collateral shall mean (1) Transferred Receivables; (2) all cash and
      letter-of-credit rights held by the Borrower as “Performance Assurance”, “Posted
      Credit Support” or “Adequate Assurance of Performance” as those terms are
      defined in the Energy Purchase Contracts, so long as such amounts are held
      by
      LaSalle Bank pursuant to that certain Custody Agreement dated as of March 26,
      2003 between the Borrower and LaSalle Bank (as may be amended, restated,
      modified, or replaced with any Lender or any other financial institution that
      is
      reasonably satisfactory to the Administrative Agent; (3) any Collateral in
      which
      the Borrower has granted a security interest, or in the future will be granting
      a security interest, pursuant to a close out and setoff netting agreement (such
      as the EEI Master Netting, Setoff, Security and Collateral Agreement, EEI Master
      Power Purchase and Sale Agreement, ISDA Master Agreement or the ISDA Energy
      Agreement Bridge) entered into with a third party with whom it has entered
      into
      an Energy Purchase Contract, but only to the extent that such Collateral
      consists of present or future payment obligations of such third party to the
      Borrower arising under the Energy Purchase Contract entered into between the
      Borrower and said third party; and (4) only to the extent (i) a security
      interest in such property in favor of the Administrative Agent, for the benefit
      of the Lenders, violates the express written terms and conditions of a
      commodities brokerage account(s) established by the Borrower with a commodities
      broker for the purpose of transacting in Commodities Contracts, (ii) such
      property is subject to a lien, security interest and right of set-off and
      recoupment in the commodities broker’s favor to secure the Borrower’s
      indebtedness and obligations to such broker, and (iii) such property does not
      exceed by more than ten percent (10%) the minimum amount of property then
      required under the terms of such commodities brokerage account(s) to be pledged
      to such commodities broker or otherwise to be maintained in such commodities
      account, the contents of such commodities account, including any such
      Commodities Contracts, monies, proceeds, securities, or other property which
      are
      held by a commodities broker, or its agents or affiliates, for the
      Borrower.

     

    Excluded
      Taxes shall mean, with respect to the Administrative Agent, any Lender, the
      Issuing Lender or any other recipient of any payment to be made by or on account
      of any obligation of the Borrower hereunder, (a) taxes imposed on or
      measured by its overall net income (however denominated), and franchise taxes
      imposed on it (in lieu of net income taxes), by the jurisdiction (or any
      political subdivision thereof) under the Laws of which such recipient is
      organized or in which its principal office is located or, in the case of any
      Lender, in which its applicable lending office is located, (b) any branch
      profits taxes imposed by the United States of America or any similar tax imposed
      by any other jurisdiction in which the Borrower is located and (c) in the
      case of a Foreign Lender, any withholding tax that is imposed on amounts payable
      to such Foreign Lender at the time such Foreign Lender becomes a party hereto
      (or designates a new lending office) or is attributable to such Foreign Lender’s
      failure or inability (other than as a result of a Change in Law) to comply
      with
      Section 5.9.5[Taxes –Status of Lenders], except to the extent that such Foreign
      Lender (or its assignor, if any) was entitled, at the time of designation
      of a new lending office (or assignment), to receive additional amounts from
      the
      Borrower with respect to such withholding tax pursuant to Section 5.9.1 [Taxes
–
Payment Free of Taxes].

     

    -6- 

    
      

    

     

    Executive
      Order No. 13224 shall mean the Executive Order No. 13224 on Terrorist
      Financing, effective September 24, 2001, as the same has been, or shall
      hereafter be, renewed, extended, amended or replaced.

     

    Expiration
      Date shall mean, with respect to the Commitments, October 3,
      2010.

     

    Facility
      Availability shall mean, as of any given day, the difference between (i) the
      lesser of the Borrowing Base or the Commitment minus (ii) the Facility
      Usage.

     

    Facility
      Fees shall mean the fees referred to in Sections 2.4 [Facility
      Fees].

     

    Facility
      Usage shall mean at any time the sum of the outstanding Loans and the Letter
      of Credit Obligations.

     

    Federal
      Funds Effective Rate for any day shall mean the rate per annum (based on a
      year of 360 days and actual days elapsed and rounded upward to the nearest
      1/100
      of 1%) announced by the Federal Reserve Bank of New York (or any successor)
      on
      such day as being the weighted average of the rates on overnight federal funds
      transactions arranged by federal funds brokers on the previous trading day,
      as
      computed and announced by such Federal Reserve Bank (or any successor) in
      substantially the same manner as such Federal Reserve Bank computes and
      announces the weighted average it refers to as the "Federal Funds Effective
      Rate" as of the date of this Agreement; provided, if such Federal Reserve
      Bank (or its successor) does not announce such rate on any day, the "Federal
      Funds Effective Rate" for such day shall be the Federal Funds Effective Rate
      for
      the last day on which such rate was announced.

     

    Federal
      Funds Open Rate.  The rate per annum determined by the
      Administrative Agent in accordance with its usual procedures (which
      determination shall be conclusive absent manifest error) to be the "open" rate
      for federal funds transactions as of the opening of business for federal funds
      transactions among members of the Federal Reserve System arranged by federal
      funds brokers on such day, as quoted by Garvin Guybutler, any successor entity
      thereto, or any other broker selected by the Administrative Agent, as set forth
      on the applicable Telerate display page; provided, however; that
      if such day is not a Business Day, the Federal Funds Open Rate for such day
      shall be the "open" rate on the immediately preceding Business Day, or if no
      such rate shall be quoted by a Federal funds broker at such time, such other
      rate as determined by the Administrative Agent in accordance with its usual
      procedures.

     

    Fixed
      Charge Coverage Ratio is defined in Section 8.2.18 [Minimum Fixed
      Charge Coverage Ratio] hereof.

     

    Foreign
      Lender shall mean any Lender that is organized under the Laws of a
      jurisdiction other than that in which the Borrower is resident for tax
      purposes.  For purposes of this definition, the United States of
      America, each State thereof and the District of Columbia shall be deemed to
      constitute a single jurisdiction.

     

    FPA
      means the Federal Power Act, as amended, and all rules and regulations
      promulgated thereunder.

     

    GAAP
      shall mean generally accepted accounting principles as are in effect from time
      to time, subject to the provisions of Section 1.3 [Accounting Principles],
      and applied on a consistent basis both as to classification of items and
      amounts.

     

    Governmental Authority
      means any nation or government, any federal, state, local or other political
      subdivision thereof and any entity exercising executive, legislative, judicial,
      regulatory or administrative functions of or pertaining to
      government.

     

    GPE  shall
      mean Great Plains Energy, Incorporated, a Missouri corporation.

     

     -7-
      
        

      

    

     

    GPE
      Cash Infusion means the purchase by GPE or its Subsidiaries for cash of
      additional Equity Interests of Borrower or cash capital contributions made
      by
      GPE or its Subsidiaries in respect of their direct or indirect Equity Interests
      in Borrower.

     

    GPE
      Cross Default shall have the meaning set forth in the GPE
      Guaranty.

     

    GPE
      Guarantee Increase means (i) any increase in the amount of the GPE
      Limited Guaranty Amount made pursuant to an amendment to the GPE Guaranty
      in form and substance satisfactory to the Administrative Agent in its sole
      discretion and at a time when GPE's long term senior unsecured debt is rated
      at
      least Baa3 by Moody's Investors Service or at least BBB- by Standard &
Poor's Ratings Group or (ii) any increase in the GPE Letter of Credit, if
      one is in effect, pursuant to an amendment in form and substance satisfactory
      to
      the Administrative Agent in its sole discretion. 

     

    GPE
      Guaranty shall mean the Limited Continuing Agreement of Guaranty and
      Suretyship in substantially the form of Exhibit 1.1(G)(3)
      (as amended, restated, supplemented or otherwise modified from time to time)
      executed and delivered by GPE.

     

    GPE
      Letter of Credit means a letter of credit issued in favor of the
      Administrative Agent (i) within ten (10) calendar days of GPE's long term senior
      unsecured debt no longer being rated at least Baa3 by Moody's Investor
      Service or BBB- by Standard & Poor's Rating Group or (ii) prior to the
      termination of the GPE Guaranty.  Such letter of credit shall be
      issued by a lender satisfactory to the Administrative Agent in its sole
      discretion, in an amount equal to the GPE Limited Guaranty Amount and shall
      not
      expire (or fail to be renewed) prior to the Expiration Date.

     

    GPE
      Limited Guaranty Amount shall mean the principal amount of the Obligations
      guaranteed pursuant to the GPE Guaranty, which amount is $12,500,000 as of
      the
      Closing Date and may be increased (but not decreased below $12,500,000) by
      GPE
      by a GPE Guarantee Increase.

     

    Guarantor
      shall mean (i) GPE and (ii) each of the parties to this Agreement which is
      designated as a "Guarantor" on the signature page hereof and each other Person
      which joins this Agreement as a Guarantor after the date hereof.

     

    Guarantor
      Joinder shall mean a joinder by a Person as a Guarantor under the Loan
      Documents in the form of
Exhibit 1.1(G)(1).

     

    Guaranty
      of any Person shall mean any obligation of such Person guaranteeing or in effect
      guaranteeing any liability or obligation of any other Person in any manner,
      whether directly or indirectly, including any agreement to indemnify or hold
      harmless any other Person, any performance bond or other suretyship arrangement
      and any other form of assurance against loss, except endorsement of negotiable
      or other instruments for deposit or collection in the ordinary course of
      business.

     

    Guaranty
      Agreement shall mean the Continuing Agreement of Guaranty and Suretyship in
      substantially the form of Exhibit 1.1(G)(2) (as amended,
      restated, supplemented or otherwise modified from time to time) executed and
      delivered by each of the Guarantors (other than GPE).

     

    Hedging
      Obligations of a Person means any and all obligations of such Person,
      whether absolute or contingent and howsoever and whensoever created, arising,
      evidenced or acquired (including all renewals, extensions and modifications
      thereof and substitutions therefor), under (i) any and all agreements, devices
      or arrangements designed to protect at least one of the parties thereto from
      the
      fluctuations of interest rates, commodity prices, exchange rates or forward
      rates applicable to such party’s assets, liabilities or exchange transactions,
      including, but not limited to, dollar-denominated or cross-currency interest
      rate exchange agreements, forward currency exchange agreements, interest rate
      cap or collar protection agreements, forward rate currency or interest rate
      options, puts and warrants, and (ii) any and all cancellations, buy backs,
      reversals, terminations or assignments of any of the foregoing; provided,
however,
      that “Hedging Obligations” shall not include physical and financial agreements
      to purchase energy entered into by the Borrower in the ordinary course of its
      business.

     

     -8-
      
        

      

    

     

    Indebtedness
      shall mean, as to any Person at any time, any and all indebtedness, obligations
      or liabilities (whether matured or unmatured, liquidated or unliquidated, direct
      or indirect, absolute or contingent, or joint or several) of such Person for
      or
      in respect of:  (i) borrowed money, (ii) amounts raised
      under or liabilities in respect of any note purchase or acceptance credit
      facility, (iii) reimbursement obligations (contingent or otherwise) under
      any letter of credit, currency swap agreement, interest rate swap, cap, collar
      or floor agreement or other interest rate management device, (iv) any other
      transaction (including forward sale or purchase agreements, capitalized leases
      and conditional sales agreements) having the commercial effect of a borrowing
      of
      money entered into by such Person to finance its operations or capital
      requirements (but not including trade payables and accrued expenses incurred
      in
      the ordinary course of business which are not represented by a promissory note
      or other evidence of indebtedness and which are not more than thirty (30) days
      past due), (v) any Guaranty of Indebtedness for borrowed money, or (vi)
      Hedging Obligations.  Anything to the contrary contained in this
      Agreement notwithstanding, Borrower’s Energy Purchase Contracts, Distributions
      by the Borrower to the holders of its Equity Interests, and the obligation
      to
      make tax distributions under the terms of the Borrower’s limited liability
      company operating agreement shall not be deemed to be Indebtedness.

     

    Indemnified
      Taxes shall mean Taxes other than Excluded Taxes.

     

    Indemnitee
      shall have the meaning specified in Section 11.3.2 [Indemnification by the
      Borrower].

     

    Information
      shall mean all information received from the Loan Parties or any of their
      Subsidiaries relating to the Loan Parties or any of such Subsidiaries or any
      of
      their respective businesses, other than any such information that is available
      to the Administrative Agent, any Lender or the Issuing Lender on a
      non-confidential basis prior to disclosure by the Loan Parties or any of their
      Subsidiaries, provided that, in the case of information received from the
      Loan Parties or any of their Subsidiaries after the date of this Agreement,
      such
      information is clearly identified at the time of delivery as
      confidential.

     

    Insolvency
      Proceeding  shall mean, with respect to any Person, (a) a
      case, action or proceeding with respect to such Person (i) before any court
      or any other Official Body under any bankruptcy, insolvency, reorganization
      or
      other similar Law now or hereafter in effect, or (ii) for the appointment
      of a receiver, liquidator, assignee, custodian, trustee, sequestrator,
      conservator (or similar official) of any Loan Party or otherwise relating to
      the
      liquidation, dissolution, winding-up or relief of such Person, or (b) any
      general assignment for the benefit of creditors, composition, marshaling of
      assets for creditors, or other, similar arrangement in respect of such Person's
      creditors generally or any substantial portion of its creditors; undertaken
      under any Law.

     

    Intercompany
      Subordination Agreement shall mean a Subordination Agreement among the
      Borrower and each of its Subsidiaries (other than Strategic Receivables) in
      the
      form attached hereto as Exhibit 1.1(I) (as amended,
      restated, supplemented or otherwise modified from time to time).

     

    Intercreditor
      Agreement shall mean that certain Intercreditor Agreement, dated as of the
      date hereof, among Borrower, the Administrative Agent and PNC Bank, as
      administrator under the Receivables Purchase Agreement, as amended, restated,
      supplemented or otherwise modified from time to time.

     

    Interest
      Expense shall mean, for any period, the total interest expense of the
      Borrower and its consolidated Subsidiaries, whether paid or accrued (including
      the interest component of any capitalized leases, commitment and letter of
      credit fees) as reflected on the income statement of the Borrower and its
      consolidated Subsidiaries, all as determined in conformity with
      GAAP.

     

    Interest
      Period shall mean the period of time selected by the Borrower in connection
      with (and to apply to) any election permitted hereunder by the Borrower to
      have
      Loans bear interest under the LIBOR Rate Option.  Subject to the last
      sentence of this definition, such period shall be one, two, three or six
      Months.  Such Interest Period shall commence on the effective date of
      such Interest Rate Option, 

    -9-

    
      
        

      

    

     

    which
      shall be (i) the Borrowing Date if the Borrower is requesting new Loans, or
      (ii)
      the date of renewal of or conversion to the LIBOR Rate Option if the Borrower
      is
      renewing or converting to the LIBOR Rate Option applicable to outstanding
      Loans.  Notwithstanding the second sentence hereof: (A) any Interest
      Period which would otherwise end on a date which is not a Business Day shall
      be
      extended to the next succeeding Business Day unless such Business Day falls
      in
      the next calendar month, in which case such Interest Period shall end on the
      next preceding Business Day, and (B) the Borrower shall not select, convert
      to
      or renew an Interest Period for any portion of the Loans that would end after
      the Expiration Date.

     

    Interest
      Rate Hedge shall mean an interest rate exchange, collar, cap, swap,
      adjustable strike cap, adjustable strike corridor or similar agreements entered
      into by the Borrower or its Subsidiaries in order to provide protection to,
      or
      minimize the impact upon, the Borrower, the Guarantor and/or their Subsidiaries
      of increasing floating rates of interest applicable to
      Indebtedness.

     

    Interest
      Rate Option shall mean any LIBOR Rate Option or Base Rate
      Option.

     

    IRS
      shall mean the Internal Revenue Service.

     

    Issuing
      Lender means PNC Bank, in its individual capacity as issuer of Letters of
      Credit hereunder and any other Lender that Borrower, Administrative Agent and
      such other Lender may agree may from time to time issue Letters of Credit
      hereunder.

     

    Joint
      Venture shall mean a corporation, partnership, limited liability company or
      other entities in which any Person other than the Loan Parties and their
      Subsidiaries holds, directly or indirectly, an equity interest.

     

    Law
      shall mean any law (including common law), constitution, statute, treaty,
      regulation, rule, ordinance, opinion, release, ruling, order, injunction, writ,
      decree, bond, judgment, authorization or approval, lien or award by or
      settlement agreement with any Official Body.

     

    Lender
      Provided Interest Rate Hedge shall mean an Interest Rate Hedge which is
      provided by any Lender or its Affiliate and with respect to which the
      Administrative Agent confirms: (i) is documented in a standard International
      Swap Dealer Association Agreement, (ii) provides for the method of calculating
      the reimbursable amount of the provider's credit exposure in a reasonable and
      customary manner, and (iii) is entered into for hedging (rather than
      speculative) purposes.

     

    Lenders
      shall mean the financial institutions named on Schedule
1.1(B) and their respective successors and assigns as
      permitted hereunder, each of which is referred to herein as a
      Lender.  For the purpose of any Loan Document which provides for the
      granting of a security interest or other Lien to the Lenders or to the
      Administrative Agent for the benefit of the Lenders as security for the
      Obligations, "Lenders" shall include any Affiliate of a Lender to which such
      Obligation is owed.

     

    Letter
      of Credit shall have the meaning specified in Section 2.9.1 [Issuance
      of Letters of Credit].

     

    Letter
      of Credit Borrowing shall have the meaning specified in Section 2.9.3
      [Disbursements, Reimbursement].

     

    Letter
      of Credit Fee shall have the meaning specified in Section 2.9.2 [Letter
      of Credit Fees].

     

    Letter
      of Credit Obligation means, as of any date of determination, the aggregate
      amount available to be drawn under all outstanding Letters of Credit on such
      date (if any Letter of Credit shall increase
      in amount automatically in the future, such aggregate amount available to be
      drawn shall currently give effect to any such future increase) plus the
      aggregate Reimbursement Obligations and Letter of Credit Borrowings on such
      date.

     

     -10-
      
      
        

      

    

     

    LIBOR
      Rate shall mean, with respect to the Loans comprising any Borrowing Tranche
      to which the LIBOR Rate Option applies for any Interest Period, the interest
      rate per annum determined by the Administrative Agent by dividing (the resulting
      quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum)
      (i) the rate which appears
      on the
      Bloomberg Page BBAM1 (or on such other substitute Bloomberg page that displays
      rates at which US dollar deposits are offered by leading banks in the London
      interbank deposit market), or the rate which is quoted by another source
      selected by the Administrative Agent which has been approved by the British
      Bankers’ Association as an authorized information vendor for the purpose of
      displaying rates at which US dollar deposits are offered by leading banks in
      the
      London interbank deposit market (an “Alternate Source”), at approximately 11:00
      a.m., London time, two (2) Business Days prior to the commencement of such
      Interest Period as the London interbank offered rate for U.S. Dollars for
      an amount comparable to such Borrowing Tranche and having a borrowing date
      and a
      maturity comparable to such Interest Period (or if there shall at any time,
      for any
      reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or
      any
      Alternate Source, a comparable replacement rate determined by the Administrative
      Agent at such time (which determination shall be conclusive absent manifest
      error)), by (ii) a number equal to 1.00 minus the LIBOR Reserve
      Percentage.  LIBOR may also be expressed by the following
      formula:

     

    Average
      of London interbank offered rates quoted

     

    by
      Bloomberg or appropriate successor as shown on

     

    
      	
               

            	
              LIBOR
                =

            	
              Bloomberg
                Page BBAM1

            

    

    
      	
            	
               

            	
              1.00
                - LIBOR Reserve Percentage

            

    

     

    The
      LIBOR
      Rate shall be adjusted with respect to any Loan to which the LIBOR Rate Option
      applies that is outstanding on the effective date of any change in the LIBOR
      Rate Reserve Percentage as of such effective date.  The Administrative
      Agent shall give prompt notice to the Borrower of the LIBOR Rate as determined
      or adjusted in accordance herewith, which determination shall be conclusive
      absent manifest error.

     

    LIBOR
      Rate Option shall mean shall mean the option of the Borrower to have Loans
      bear interest at the rate and under the terms set forth in
      Section 4.1.1(ii)  [LIBOR Rate Option].

     

    LIBOR
      Rate Reserve Percentage shall mean as of any day the maximum percentage in
      effect on such day, as prescribed by the Board of Governors of the Federal
      Reserve System (or any successor) for determining the reserve requirements
      (including supplemental, marginal and emergency reserve requirements) with
      respect to eurocurrency funding (currently referred to as "Eurocurrency
      Liabilities").

     

    Lien
      shall mean any mortgage, deed of trust, pledge, lien, security interest, charge
      or other encumbrance or security arrangement of any nature whatsoever, whether
      voluntarily or involuntarily given, including any conditional sale or title
      retention arrangement, and any assignment, deposit arrangement or lease intended
      as, or having the effect of, security and any filed financing statement or
      other
      notice of any of the foregoing (whether or not a lien or other encumbrance
      is
      created or exists at the time of the filing).

     

    Loan
      Documents shall mean this Agreement, the Administrative Agent's Letter, the
      Guaranty Agreement, the GPE Guaranty Agreement, the Subordination Agreement,
      the
      Intercompany Subordination Agreement, the Intercreditor Agreement, the Notes,
      the Patent, Trademark and Copyright Security Agreement, the Pledge Agreement,
      the Security Agreement, and any other instruments, certificates or documents
      delivered in connection herewith or therewith.

     

    Loan
      Parties shall mean the Borrower and the Guarantors.

     

    Loan
      Request shall have the meaning specified in Section 2.5 [Loan
      Requests].

     

     -11-
      
        

      

    

     

    Loans
      shall mean collectively and Loan shall mean separately all Loans or any
      Loan made by the Lenders or one of the Lenders to the Borrower pursuant to
      Section 2.1 [Commitments] or 2.9.3 [Disbursements,
      Reimbursement].

     

    Material
      Adverse Change shall mean any set of circumstances or events which
      (a) has or could reasonably be expected to have any material adverse effect
      whatsoever upon the validity or enforceability of this Agreement or any other
      Loan Document, (b) is or could reasonably be expected to be material and
      adverse to the business, properties, assets, financial condition, results of
      operations or prospects of the Borrower and each of its Subsidiaries taken
      as a
      whole, (c) impairs materially or could reasonably be expected to impair
      materially the ability of the Borrower and each of its Subsidiaries taken as
      a
      whole to duly and punctually pay or perform its Indebtedness, or
      (d) impairs materially or could reasonably be expected to impair materially
      the ability of the Administrative Agent or any of the Lenders, to the extent
      permitted, to enforce their legal remedies pursuant to this Agreement or any
      other Loan Document.

     

    Month,
      with respect to an Interest Period under the LIBOR Rate Option, shall mean
      the
      interval between the days in consecutive calendar months numerically
      corresponding to the first day of such Interest Period.  If any LIBOR
      Rate Interest Period begins on a day of a calendar month for which there is
      no
      numerically corresponding day in the month in which such Interest Period is
      to
      end, the final month of such Interest Period shall be deemed to end on the
      last
      Business Day of such final month.

     

    Multiemployer
      Plan shall mean any employee benefit plan which is a "multiemployer plan"
      within the meaning of Section 4001(a)(3) of ERISA and to which the Borrower
      or any member of the ERISA Group is then making or accruing an obligation to
      make contributions or, within the preceding five Plan years, has made or had
      an
      obligation to make such contributions.

     

    Net
      Income shall mean, for any period, the net earnings (or loss) after taxes of
      the Borrower and its Subsidiaries on a consolidated basis for such period taken
      as a single accounting period determined in conformity with GAAP.

     

    Non-Complying
      Lender shall mean any Lender which has failed to fund any Loan which it is
      required to fund, or pay any other amount which it is required to pay to the
      Administrative Agent or any other Lender, within one day of the due date
      therefor.

     

    Non-Consenting
      Lender shall have the meaning specified in Section 11.1 [Modifications,
      Amendments or Waivers].

     

    Notes
      shall mean, collectively, the promissory notes in the form of Exhibit
      1.1(N) (as amended, restated, supplemented or otherwise modified from time
      to time) evidencing the Loans.

     

    Notices
      shall have the meaning specified in Section 11.5 [Notices; Effectiveness;
      Electronic Communication].

     

    Obligation
      shall mean any obligation or liability of any of the Loan Parties, howsoever
      created, arising or evidenced, whether direct or indirect, absolute or
      contingent, now or hereafter existing, or due or to become due, under or in
      connection with (i) this Agreement, the Notes, the Letters
      of Credit, the Administrative Agent’s Letter or any other Loan Document whether
      to the Administrative Agent, any of the Lenders or their Affiliates or other
      persons provided for under such Loan Documents, (ii) any Lender Provided
      Interest Rate Hedge and (iii) any Other Lender Provided Financial Service
      Product.

     

    Obligor
      shall mean, with respect to any Receivable, the Person obligated to make
      payments pursuant to the Contract relating to such Receivable.

     

    Official
      Body shall mean the government of the United States of America or any other
      nation, or of any political subdivision thereof, whether state or local, and
      any
      agency, authority, instrumentality, regulatory body, court, central bank or
      other entity exercising executive, legislative, 

     

    -12-

    
      
        

      

    

     

    judicial,
      taxing, regulatory or administrative powers or functions of or pertaining to
      government (including any supra-national bodies such as the European Union
      or
      the European Central Bank).

     

    Other
      Lender Provided Financial Service Product shall mean agreements or other
      arrangements under which any Lender or Affiliate of a Lender provides any of
      the
      following products or services to any of the Loan Parties: (a) credit cards,
      (b)
      credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH
      Transactions, (f) cash management, including controlled disbursement, accounts
      or services, or (g) foreign currency exchange.

     

    Other
      Taxes shall mean all present or future stamp or documentary taxes or any
      other excise or property taxes, charges or similar levies arising from any
      payment made hereunder or under any other Loan Document or from the execution,
      delivery or enforcement of, or otherwise with respect to, this Agreement or
      any
      other Loan Document.

     

    Participant
      has the meaning specified in Section 11.8.4 [Participations].

     

    Participation
      Advance shall have the meaning specified in Section 2.9.3
      [Disbursements, Reimbursement].

     

    Patent,
      Trademark and Copyright Security Agreement shall mean the Patent, Trademark
      and Copyright Security Agreement in substantially the form of Exhibit
1.1(P)(1) (as amended, restated, supplemented or otherwise
      modified from time to time) executed and delivered by the Borrower and each
      of
      its Subsidiaries (other than Strategic Receivables) to the Administrative Agent
      for the benefit of the Lenders.

     

    Payment
      Date shall mean the first day of each October, January, April and July after
      the date hereof and on the Expiration Date or upon acceleration of the
      Notes.

     

    Payment
      In Full shall mean payment in full in cash of the Loans and other
      Obligations hereunder, termination of the Commitments and expiration or
      termination of all Letters of Credit.

     

    PBGC
      shall mean the Pension Benefit Guaranty Corporation established pursuant to
      Subtitle A of Title IV of ERISA or any successor.

     

    Pension
      Plan means any "employee pension benefit plan" (as such term is defined in
      Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to
      Title IV of ERISA and is sponsored or maintained by Borrower or any ERISA
      Affiliate or to which Borrower or any ERISA Affiliate contributes or has an
      obligation to contribute, or in the case of a multiple employer or other plan
      described in Section 4064(a) of ERISA, has made contributions at any times
      during the immediately preceding five plan years.

     

    Permitted
      Existing Investments means the Investments of the Borrower and its
      Subsidiaries identified as such on Schedule 1.1(P)(1) to this
      Agreement.

     

    Permitted
      Liens shall mean:

     

    (i)           Liens
      for taxes, assessments, or similar charges, incurred in the ordinary course
      of
      business and which are not yet due and payable;

     

    (ii)           Pledges
      or deposits made in the ordinary course of business to secure payment of
      workmen's compensation, or to participate in any fund in connection with
      workmen's compensation, unemployment insurance, old-age pensions or other social
      security programs;

    

    (iii)           Liens
      of mechanics, materialmen, warehousemen, carriers, or other like Liens, securing
      obligations incurred in the ordinary course of business that are not yet due
      and
      payable and Liens of landlords securing obligations to pay lease payments that
      are not yet due and payable or in default;

     

     -13-
      
        

      

    

     

    (iv)           Good-faith
      pledges or deposits made in the ordinary course of business to secure
      performance of bids, tenders, contracts (other than for the repayment of
      borrowed money) or leases, not in excess of the aggregate amount due thereunder,
      or to secure statutory obligations, or surety, appeal, indemnity, performance
      or
      other similar bonds required in the ordinary course of business;

     

    (v)           Encumbrances
      consisting of zoning restrictions, easements or other restrictions on the use
      of
      real property, none of which materially impairs the use of such property or
      the
      value thereof, and none of which is violated in any material respect by existing
      or proposed structures or land use;

     

    (vi)           Liens,
      security interests and mortgages in favor of the Administrative Agent for the
      benefit of the Lenders and their Affiliates securing the Obligations including
      Lender Provided Financial Services Obligations;

     

    (vii)           Liens
      on property leased by any Loan Party or Subsidiary of a Loan Party under capital
      and operating leases permitted in Section 8.2.15 [Capital Expenditures and
      Leases] securing obligations of such Loan Party or Subsidiary to the lessor
      under such leases;

     

    (viii)           Any
      Lien existing on the date of this Agreement and described on Schedule
1.1(P)(2), provided that the principal amount secured
      thereby is not hereafter increased, and no additional assets become subject
      to
      such Lien;

     

    (ix)           Purchase
      Money Security Interests; provided that the aggregate amount of loans and
      deferred payments secured by such Purchase Money Security Interests shall not
      exceed $5,000,000 (excluding for the purpose of this
      computation any loans or deferred payments secured by Liens described on
Schedule 1.1(P)(2));

     

    (x)           The
      following, (A) if the validity or amount thereof is being contested in good
      faith by appropriate and lawful proceedings diligently conducted so long as
      levy
      and execution thereon have been stayed and continue to be stayed or (B) if
      a final judgment is entered and such judgment is discharged within thirty (30)
      days of entry, and in either case they do not affect the Collateral or, in
      the
      aggregate, materially impair the ability of any Loan Party to perform its
      Obligations hereunder or under the other Loan Documents:

     

    (1)           Claims
      or Liens for taxes, assessments or charges due and payable and subject to
      interest or penalty; provided that the applicable Loan Party maintains
      such reserves or other appropriate provisions as shall be required by GAAP
      and
      pays all such taxes, assessments or charges forthwith upon the commencement
      of
      proceedings to foreclose any such Lien;

     

    (2)           Claims,
      Liens or encumbrances upon, and defects of title to, real or personal property
      other than the Collateral, including any attachment of personal or real property
      or other legal process prior to adjudication of a dispute on the
      merits;

     

    (3)           Claims
      or Liens of mechanics, materialmen, warehousemen, carriers, or other statutory
      nonconsensual Liens;

     

    (4)           Liens
      resulting from final judgments or orders that would not constitute an Event
      of
      Default under Section 9.1.7 [Final Judgments or Orders]; provided
      that all Liens securing judgments or in connection with appeals do not secure
      at
      any time an aggregate amount exceeding $5,000,000.00;

     

    (xi)           Liens
      in connection with the Transferred Receivables;

     

    (xii)           Liens
      and rights of set-off and recoupment in a commodities broker’s favor to secure
      the Borrower’s indebtedness and obligations to such broker with respect to a
      commodities brokerage
      account established by the Borrower with such commodities broker for the purpose
      of transacting in Commodities Contracts, provided that such Liens and
      rights of set-off and recoupment relate only to the contents of such commodities
      brokerage account(s), including any such Commodities Contracts, monies,
      proceeds, securities, or other property which are held by a commodities broker,
      or its 

     

    -14-

    
      
        

      

    

     

    agents
      or
      affiliates, for the Borrower, and provided, further, that all such
      Commodities Contracts entered into through such commodities account are
      permitted Hedging Obligations under Section 8.2.16 [Hedging Obligations]
      hereof; and

     

    (xiii)           Liens
      with respect to any cash collateral deposited by the Borrower with a independent
      system operator.

     

    (xiv)           Liens
      with respect to (a) the Consolidated Utility Billing Service and Assignment
      Agreement (as referenced in the May, 2006 Waiver and Consent) or (b) any other
      receivables purchase programs provided by local distribution utilities
      acceptable to the Administrative Agent in its reasonable
      discretion.

     

    Permitted
      Refinancing Indebtedness means any replacement, renewal, refinancing or
      extension of any Indebtedness permitted by this Agreement that (i) does not
      exceed the aggregate principal amount (plus accrued interest and any applicable
      premium and associated fees and expenses) of the Indebtedness being replaced,
      renewed, refinanced or extended, (ii) does not have a Weighted Average Life
      to
      Maturity at the time of such replacement, renewal, refinancing or extension
      that
      is less than the Weighted Average Life to Maturity of the Indebtedness being
      replaced, renewed, refinanced or extended, (iii) does not rank at the time
      of
      such replacement, renewal, refinancing or extension senior to the Indebtedness
      being replaced, renewed, refinanced or extended, and (iv) does not contain
      terms
      (including, without limitation, terms relating to security, amortization,
      interest rate, premiums, fees, covenants, event of default and remedies)
      materially less favorable to the Borrower or to the Lenders than those
      applicable to the Indebtedness being replaced, renewed, refinanced or
      extended.

     

    Person
      shall mean any individual, corporation, partnership, limited liability company,
      association, joint-stock company, trust, unincorporated organization, joint
      venture, government or political subdivision or agency thereof, or any other
      entity.

     

    Plan
      shall mean at any time an employee pension benefit plan (including a Multiple
      Employer Plan, but not a Multiemployer Plan) which is covered by Title IV of
      ERISA or is subject to the minimum funding standards under Section 412 of
      the Code and either (i) is maintained by any member of the ERISA Group for
      employees of any member of the ERISA Group or (ii) has at any time within
      the preceding five years been maintained by any entity which was at such time
      a
      member of the ERISA Group for employees of any entity which was at such time
      a
      member of the ERISA Group.

     

    Pledge
      Agreement shall mean the Pledge Agreement in substantially the form of
Exhibit 1.1(P)(2) (as amended, restated, supplemented or
      otherwise modified from time to time) executed and delivered by Borrower to
      the
      Administrative Agent for the benefit of the Lenders.

     

    PNC
      Bank shall mean PNC Bank, National Association, its successors and
      assigns.

     

    Potential
      Default shall mean any event or condition which with notice or passage of
      time, or both, would constitute an Event of Default.

     

    Principal
      Office shall mean the main banking office of the Administrative Agent in
      Pittsburgh, Pennsylvania.

     

    Prior
      Security Interest shall mean a valid and enforceable perfected
      first-priority security interest under the Uniform Commercial Code in the
      Collateral which is subject only to statutory Liens for taxes not yet due and
      payable or Purchase Money Security Interests.

     

    Purchase
      Money Security Interest shall mean Liens upon tangible personal property
      securing loans to any Loan Party or Subsidiary of a Loan Party or deferred
      payments by such Loan Party or Subsidiary for the purchase of such tangible
      personal property.

     

    Purchase
      and Sale Agreement shall mean that certain Purchase and Sale Agreement (as
      may be amended, restated, modified or supplemented with the consent of the
      Administrative Agent, 

     

    -15- 
      
        

      

    

     

    which
      consent shall not be unreasonably withheld) entered into by Strategic
      Receivables, the Borrower, as Servicer (as defined therein), and the Originators
      (as defined therein), dated October 3, 2007.

     

    Ratable
      Share shall mean the proportion that a Lender's Commitment bears to the
      Commitments of all of the Lenders.  If the Commitments have terminated
      or expired, the Ratable Shares shall be determined based upon the Commitments
      most recently in effect, giving effect to any assignments.

     

    Receivables
      as used herein shall mean the Receivables as such term is defined in the
      Receivables Purchase Agreement as of the Closing Date.

     

    Receivables
      Purchase Agreement shall mean that certain Receivables Purchase Agreement
      (as may be amended, restated, modified or supplemented with the consent of
      the
      Administrative Agent, which consent shall not be unreasonably withheld) entered
      into by Strategic Receivables, the Borrower, as Servicer (as defined therein),
      the Conduit Purchasers (as defined therein), the LC Participants (as defined
      therein) and PNC Bank, as Administrator and LC Bank (each as defined therein),
      dated October 3, 2007.

     

    Receivables
      Purchase Facility shall mean the Receivables Purchase Agreement, the
      Purchase and Sale Agreement and the other Transaction Documents (as defined
      in
      the Receivables Purchase Agreement).

     

    Reimbursement
      Obligation shall have the meaning specified in Section 2.9.3 [Disbursements,
      Reimbursement].

     

    Related
      Parties shall mean, with respect to any Person, such Person’s Affiliates and
      the partners, directors, officers, employees, agents and advisors of such Person
      and of such Person’s Affiliates.

     

    Related
      Security shall mean, with respect to any Transferred
      Receivable:

     

    (A)           All
      of Borrower's, Strategic Receivables'  and any other Subsidiary of the
      Borrower's interests in any goods (including returned goods), and documentation
      of title evidencing the shipment or storage of any goods (including returned
      goods), relating to any sale giving rise to such Transferred
      Receivable;

     

    (B)           All
      instruments and chattel paper that may evidence such Transferred
      Receivable;

     

    (C)           All
      other security interests or liens and property subject thereto from time to
      time
      purporting to secure payment of such Transferred Receivable, whether pursuant
      to
      the Contract related to such Transferred Receivable or otherwise, together
      with
      all UCC financing statements or similar filings relating thereto;

     

    (D)           All
      of Borrower's, Strategic Receivables'  and any other Subsidiary of the
      Borrower's rights, interests and claims under the Contracts and all guaranties,
      warranties, indemnities, insurance (and proceeds and premium refunds with
      respect thereto) and other agreements (including the related Contract) or
      arrangements of whatever character from time to time supporting or securing
      payment of such Transferred Receivable or otherwise relating to such Transferred
      Receivable, whether pursuant to the Contract related to such Transferred
      Receivable or otherwise; and

    

    (E)           All
      of Strategic Receivables' rights, interests and claims under the Purchase and
      Sale Agreement and the other Transaction Documents (as defined in the
      Receivables Purchase Agreement).

     

    Relief
      Proceeding shall mean any proceeding seeking a decree or order for relief in
      respect of any Loan Party or Subsidiary of the Borrower in a voluntary or
      involuntary case under any 

     

    -16-

    
      
        

      

    

     

    applicable
      bankruptcy, insolvency, reorganization or other similar law now or hereafter
      in
      effect, or for the appointment of a receiver, liquidator, assignee, custodian,
      trustee, sequestrator, conservator (or similar official) of any Loan Party
      or
      Subsidiary of the Borrower for any substantial part of its property, or for
      the
      winding-up or liquidation of its affairs, or an assignment for the benefit
      of
      its creditors.

     

    Required
      Lenders shall mean:

     

    (A)           If
      there exists fewer than three (3) Lenders, all Lenders, and

     

    (B)           If
      there exist three (3) or more Lenders:

     

    (i)           if
      there are no Loans, Reimbursement Obligations or Letter of Credit Borrowings
      outstanding, Complying Lenders whose Commitments aggregate at least 75% of
      the
      Commitments of all of the Complying Lenders, or

     

    (ii)           if
      there are Loans, Reimbursement Obligations, or Letter of Credit Borrowings
      outstanding, any group of Complying Lenders if the sum of the Loans,
      Reimbursement Obligations and Letter of Credit Borrowings of such Lenders then
      outstanding aggregates at least 75% of the total principal amount of all of
      the
      Loans, Reimbursement Obligations and Letter of Credit Borrowings of all of
      the
      Complying Lenders then outstanding.  

     

    Restricted Payment
      means (i) any redemption, purchase, retirement, defeasance, prepayment or
      other acquisition for value, direct or indirect, of any Indebtedness other
      than
      the Obligations prior to the stated maturity of such Indebtedness, (ii) any
      payment of a claim for the rescission of the purchase or sale of, or for
      material damages arising from the purchase or sale of, any Indebtedness (other
      than the Obligations), or of a claim for reimbursement, indemnification or
      contribution arising out of or related to any such claim for damages or
      rescission and (iii) any payment of any management fee or similar consulting
      fee
      to any Affiliate of the Borrower in excess of $2,500,000 in the aggregate in
      any
      fiscal year.

     

    Security
      Agreement shall mean the Security Agreement in substantially the form of
Exhibit 1.1(S)(1) executed and delivered by the Borrower
      and each of its Subsidiaries (other than Strategic Receivables) to the
      Administrative Agent for the benefit of the Lenders.

     

    Securitization
      Usage shall mean, as of any give day, the sum of (i) the aggregate Capital
      plus (ii) the LC Participation Amount of the Purchasers under the Receivables
      Purchase Agreement, as each undefined term is defined in the Receivables
      Purchase Agreement as of the Closing Date.

     

    Solvent
      shall mean, with respect to any Person on a particular date, that on such date
      (i) the fair value of the property of such Person is greater than the total
      amount of liabilities, including, without limitation, contingent liabilities,
      of
      such Person, (ii) the present fair saleable value of the assets of such
      Person is not less than the amount that will be required to pay the probable
      liability of such Person on its debts as they become absolute and matured,
      (iii) such Person is able to realize upon its assets and pay its debts and
      other liabilities, contingent obligations and other commitments as they mature
      in the normal course of business, (iv) such Person does not intend to, and
      does not believe that it will, incur debts or liabilities beyond such Person's
      ability to pay as such debts and liabilities mature, and (v) such Person is
      not engaged in business or a transaction, and is not about to engage in business
      or a transaction, for which such Person's property would constitute unreasonably
      small capital after giving due consideration to the prevailing practice in
      the
      industry in which such Person is engaged.  In computing the amount of
      contingent liabilities at any time, it is intended that such liabilities will
      be
      computed at the amount
      which, in light of all the facts and circumstances existing at such time,
      represents the amount that can reasonably be expected to become an actual or
      matured liability.

     

    Strategic
      Receivables shall mean Strategic Receivables, LLC a Delaware limited
      liability company. 

     

     -17-
      
        

      

    

     

    Standard
      & Poor's shall mean Standard & Poor's Ratings Services, a division
      of The McGraw-Hill Companies, Inc.

     

    Statements
      shall have the meaning specified in Section 6.1.6(i) [Historical
      Statements].

     

    Subordinated
      Debtholder means GPE

     

    Subordinated
      Debt  means any intercompany Indebtedness owed by the
      Borrower and its Subsidiaries to the Subordinated Debtholder (whether or not
      evidenced by a promissory note) and subject to the terms of the Subordination
      Agreement.

     

    Subordination
      Agreement means that certain Subordination Agreement dated as of the Closing
      Date (as amended, restated, supplemented or otherwise modified from time to
      time) between the Subordinated Debtholder and the Borrower and its Subsidiaries
      in favor of the Administrative Agent on behalf of the Lenders with respect
      to
      the Subordinated Debt, in substantially the form of Exhibit 1.1(S)(2)
      attached hereto.

     

    Subsidiary
      of any Person at any time shall mean any corporation, trust, partnership, any
      limited liability company or other business entity (i) of which 50% or more
      of
      the outstanding voting securities or other interests normally entitled to vote
      for the election of one or more directors or trustees (regardless of any
      contingency which does or may suspend or dilute the voting rights) is at such
      time owned directly or indirectly by such Person or one or more of such Person's
      Subsidiaries, or (ii)  which is controlled or capable of being controlled
      by such Person or one or more of such Person's Subsidiaries.

     

    Subsidiary
      Equity Interests shall have the meaning specified in Section 6.1.2
      [Subsidiaries and Owners; Investment Companies].

     

    Taxes
      shall mean all present or future taxes, levies, imposts, duties, deductions,
      withholdings, assessments, fees or other charges imposed by any Official Body,
      including any interest, additions to tax or penalties applicable
      thereto.

     

    Transaction
      Costs shall mean the fees, costs and expenses payable by the Borrower in
      connection with the execution, delivery and performance of the Loan
      Documents.

     

    Transferred  Receivables shall
      mean:

     

    (A)           Each
      Receivable of the Borrower or any Subsidiary of the Borrower that has been
      sold,
      purportedly sold, transferred, assigned, contributed, or conveyed to (or subject
      to a security interest in favor of) Strategic Receivables, pursuant to the
      Purchase and Sale Agreement;

    

    (B)           All
      rights to, but not the obligations under, all Related Security with respect
      to
      such Receivables;

    

    (C)           All
      monies due or to become due to Strategic Receivables with respect to any of
      the
      foregoing set forth in clauses (A) and (B) above;

    

    (D)           All
      books and records related to any of the foregoing; and all rights, remedies,
      powers, privileges, title and interest of Borrower in each lock-box and related
      lock-box address and account to which Collections (as defined in the Receivables
      Purchase Agreement) are sent, all amounts on deposit therein, all certificates
      and instruments, if any, from time to time evidencing such accounts and
amounts
      on deposit therein, and all related agreements between Borrower, any Subsidiary
      of the Borrower, Strategic Receivables and each related account bank and each
      related lock-box bank; and

    

    (E)           All
      collections and other products and proceeds (as defined in the applicable UCC)
      of any of the foregoing that are or were received by Borrower, any Subsidiary
      of
      the Borrower or

     

    -18-

    
      
        

      

    

     

     Strategic
      Receivables on or after October 3, 2007, including without limitation, all
      funds
      which either are received by the Borrower, any Subsidiary of the Borrower or
      Strategic Receivables from or on behalf of the Obligors in payment of any
      amounts owed (including, without limitation, invoice price, finance charges,
      interest and all other charges) in respect of such Receivables, or are applied
      to such amounts owed by the Obligors (including, without limitation, insurance
      payments that Borrower, any other Loan Party or Strategic Receivables applies
      in
      the ordinary course of its business to amounts owed in respect of any such
      Receivable and net proceeds of sale or other disposition of repossessed goods
      or
      other collateral or property of the Obligors or any other parties directly
      or
      indirectly liable for payment of such Transferred Receivables).

    

    Unused
      Availability shall mean the difference between (i) the Borrowing Base for
      the previous calendar month minus (ii) the average outstanding Facility
      Usage for the previous calendar month.

     

    USA
      Patriot Act shall mean the Uniting and Strengthening America by Providing
      Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,
      Public Law 107-56, as the same has been, or shall hereafter be, renewed,
      extended, amended or replaced.

     

        1.2           Construction.  Unless
      the context of this Agreement otherwise clearly requires, the following rules
      of
      construction shall apply to this Agreement and each of the other Loan Documents:
      (i) references to the plural include the singular, the plural, the part and
      the
      whole and the words “include,” “includes” and “including” shall be deemed to be
      followed by the phrase “without limitation”; (ii) the words "hereof," "herein,"
      "hereunder," "hereto" and similar terms in this Agreement or any other Loan
      Document refer to this Agreement or such other Loan Document as a whole; (iii)
      article, section, subsection, clause, schedule and exhibit references are to
      this Agreement or other Loan Document, as the case may be, unless otherwise
      specified; (iv) reference to any Person includes such Person's successors and
      assigns; (v) reference to any agreement, including this Agreement and any other
      Loan Document together with the schedules and exhibits hereto or thereto,
      document or instrument means such agreement, document or instrument as amended,
      modified, replaced, substituted for, superseded or restated; (vi) relative
      to
      the determination of any period of time, "from" means "from and including,"
      "to"
      means "to but excluding," and "through" means "through and including"; (vii)
      the
      words “asset” and “property” shall be construed to have the same meaning and
      effect and to refer to any and all tangible and intangible assets and
      properties, including cash, securities, accounts and contract rights, (viii)
      section headings herein and in each other Loan Document are included for
      convenience and shall not affect the interpretation of this Agreement or such
      Loan Document, and (ix) unless otherwise specified, all references herein to
      times of day shall be references to local Pittsburgh, Pennsylvania
      time.

     

        1.3           Accounting
      Principles.   Except
      as otherwise provided in this Agreement, all computations and determinations
      as
      to accounting or financial matters and all financial statements to be delivered
      pursuant to this Agreement shall be made and prepared in accordance with GAAP
      (including principles of consolidation where appropriate), and all accounting
      or
      financial terms shall have the meanings ascribed to such terms by GAAP;
provided, however, that all accounting terms used in
      Section 8.2 [Negative Covenants] (and all defined terms used in the
      definition of any accounting term used in Section 8.2 [Negative Covenants]
      shall have the meaning given to such terms (and defined terms) under GAAP as
      in
      effect on the date hereof applied on a basis consistent with those used in
      preparing Statements referred to in Section 6.1.6(i) [Historical
      Statements].  In the event of any change after the date
      hereof in GAAP, and if such change would affect the computation of any of the
      financial covenants set forth in Section 8.2 [Negative Covenants], then the
      parties hereto agree to endeavor, in good faith, to agree upon an amendment
      to
      this Agreement that would adjust such financial covenants in a manner that
      would
      preserve the original intent thereof, but would allow compliance therewith
      to be
      determined in

     

    -19-

    
      

    

     

    
      accordance
        with the Borrower's financial statements at that time, provided
that, until so amended such financial covenants shall continue
        to be
        computed in accordance with GAAP prior to such change therein.

       

    

    2.           REVOLVING
      CREDIT FACILITY

     

        2.1           Commitments.  Subject
      to the terms and conditions hereof and relying upon the representations and
      warranties herein set forth, each Lender severally agrees to make Loans to
      the
      Borrower at any time or from time to time on or after the date hereof to the
      Expiration Date; provided that after giving effect to such Loan (i) the
      aggregate amount of Loans from such Lender shall not exceed such Lender's
      Commitment minus such Lender's Ratable Share of the Letter of Credit Obligations
      and (ii) the Facility Usage shall not exceed the Borrowing
      Base.  Within such limits of time and amount and subject to the other
      provisions of this Agreement, the Borrower may borrow, repay and reborrow
      pursuant to this Section 2.1; provided, however, that at no time shall the
      Facility Usage exceed the lesser of the Borrowing Base or the
      Commitments.

     

        2.2           Nature
      of Lenders' Obligations with Respect to Loans.  Each
      Lender shall be obligated to participate in each request for Loans pursuant
      to
      Section 2.5 [Loan Requests] in accordance with its Ratable
      Share.  The aggregate of each Lender's Loans outstanding hereunder to
      the Borrower at any time shall never exceed its Commitment minus its Ratable
      Share of the Letter of Credit Obligations.  The obligations of each
      Lender hereunder are several.  The failure of any Lender to perform
      its obligations hereunder shall not affect the Obligations of the Borrower
      to
      any other party nor shall any other party be liable for the failure of such
      Lender to perform its obligations hereunder.  The Lenders shall have
      no obligation to make Loans hereunder on or after the Expiration
      Date.

     

        2.3           Commitment
      Fees.  Accruing
      from the date hereof until the Expiration Date, the Borrower agrees to pay
      to
      the Administrative Agent for the account of each Lender according to its Ratable
      Share, a nonrefundable commitment fee (the "Commitment Fee") equal to the
      Applicable Commitment Fee Rate (computed on the basis of a year of 365 or 366
      days, as the case may be, and actual days elapsed) times the average daily
      difference between the amount of (i) the Commitments and the (ii) the
      Facility Usage.  All Commitment Fees shall be payable in arrears on
      each Payment Date.

     

        2.4           Facility
      Fees. The
      Borrower agrees to pay to the Administrative Agent on the Closing Date for
      the
      account of each Lender according to its Ratable Share, a nonrefundable facility
      fee (the "Facility Fee") equal to the one quarter of one percent (0.25%) of
      the
      Commitments.  

     

        2.5           Loan
      Requests.  Except
      as otherwise provided herein, the Borrower may from time to time prior to the
      Expiration Date request the Lenders to make Loans, or renew or convert the
      Interest Rate Option applicable to existing Loans pursuant to Section 4.2
      [Interest Periods], by delivering to the Administrative Agent, not later than
      (i) 12:00 noon, three (3) Business Days prior to the proposed Borrowing
      Date with respect to the making of Loans to which the LIBOR Rate Option applies
      or the conversion to or the renewal of the LIBOR Rate Option for any Loans;
      and
      (ii) [12:00 noon], on the same Business Day with respect to the making of a
      Loan to which the Base Rate Option applies or the last day of the preceding
      Interest Period with respect to the conversion to the Base Rate Option for
      any
      Loan, of a duly completed request therefor substantially in the form of
Exhibit 2.5 or a request by telephone immediately confirmed in
      writing by letter, facsimile or telex in such form (each, a "Loan Request"),
      it
      being understood that the Administrative Agent may rely on the authority of
      any
      individual making such a telephonic request without the necessity of receipt
      of
      such written confirmation.  Each Loan Request shall be irrevocable and
      shall specify the aggregate amount of the proposed Loans comprising
      each

     

    Borrowing
      Tranche, and, if applicable, the Interest Period, which amounts shall be in
      integral multiples of $100,000 and not less than $1,000,000 for each Borrowing
      Tranche under the LIBOR Rate Option and not less than the lesser of $500,000
      or
      the maximum amount available for Borrowing Tranches under the Base Rate
      Option.

     

    2.6           Making
      Loans; Presumptions by the Administrative Agent; Repayment of
      Loans.

     

     

    -20-

    
      

    

    
                2.6.1       Making
      Loans.  The Administrative Agent shall, promptly after receipt by
      it of a Loan Request pursuant to Section 2.5 [Loan Requests], notify the
      Lenders of its receipt of such Loan Request specifying the information provided
      by the Borrower and the apportionment among the Lenders of the requested Loans
      as determined by the Administrative Agent in accordance with
      Section 2.2  [Nature of Lenders' Obligations with Respect to
      Loans].  Each Lender shall remit the principal amount of each Loan to
      the Administrative Agent such that the Administrative Agent is able to, and
      the
      Administrative Agent shall, to the extent the Lenders have made funds available
      to it for such purpose and subject to Section 7.2 [Each Loan or Letter of
      Credit], fund such Loans to the Borrower in U.S. Dollars and immediately
      available funds at the Principal Office prior to 2:00 p.m., on the applicable
      Borrowing Date; provided that if any Lender fails to remit such funds to the
      Administrative Agent in a timely manner, the Administrative Agent may elect
      in
      its sole discretion to fund with its own funds the Loans of such Lender on
      such
      Borrowing Date, and such Lender shall be subject to the repayment obligation
      in
      Section 2.6.2 [Presumptions by the Administrative Agent].

     

    2.6.2           Presumptions
      by the Administrative Agent.  Unless the Administrative Agent
      shall have received notice from a Lender prior to the proposed date of any
      Loan
      that such Lender will not make available to the Administrative Agent such
      Lender’s share of such Loan, the Administrative Agent may assume that such
      Lender has made such share available on such date in accordance with Section
      2.6.1 [Making Loans] and may, in reliance upon such assumption, make available
      to the Borrower a corresponding amount.  In such event, if a Lender
      has not in fact made its share of the applicable Loan available to the
      Administrative Agent, then the applicable Lender and the Borrower severally
      agree to pay to the Administrative Agent forthwith on demand such corresponding
      amount with interest thereon, for each day from and including the date such
      amount is made available to the Borrower to but excluding the date of payment
      to
      the Administrative Agent, at (i) in the case of a payment to be made by
      such Lender, the greater of the Federal Funds Effective Rate and a rate
      determined by the Administrative Agent in accordance with banking industry
      rules
      on interbank compensation and (ii) in the case of a payment to be made by
      the Borrower, the interest rate applicable to Loans under the Base Rate
      Option.  If such Lender pays its share of the applicable Loan to the
      Administrative Agent, then the amount so paid shall constitute such Lender’s
      Loan.  Any payment by the Borrower shall be without prejudice to any
      claim the Borrower may have against a Lender that shall have failed to make
      such
      payment to the Administrative Agent.

     

    2.6.3           Repayment
      of Loans.  The Borrower shall repay the Loans together with all
      outstanding interest thereon on the Expiration Date. 

     

    2.7           Notes.  The
      Obligation of the Borrower to repay the aggregate unpaid principal amount of
      the
      Loans made to it by each Lender, together with interest thereon, shall be
      evidenced by a Note, dated the Closing Date payable to the order of such Lender
      in a face amount equal to the Commitment of such Lender.

     

    2.8           Use
      of Proceeds.  The Borrower shall use the proceeds of
      the  Loans to (i) repay existing Indebtedness, (ii) provide funds for
      the additional working capital needs and other general corporate purposes of
      the
      Borrower, (iii) provide funds for cash collateral to independent system
      operators, and (iv) provide funds for the payment of fees and expenses incurred
      in connection with the negotiation and documentation of this Agreement and
      the
      Loan Documents.  The Borrower will not, nor will it permit any
      Subsidiary to, use any of the proceeds of the Loans to purchase or carry any
      Margin

     

    Stock.  Letters
      of Credit issued hereunder will be used (i) to provide performance assurance
      of
      Borrower’s obligations under the Energy Purchase Contracts, and (ii) for other
      general corporate purposes of the Borrower.

     

    2.9           Letter
      of Credit Subfacility.

     

     

    -21-

    

    
      

    

     

    

     

    2.9.1           Issuance
      of Letters of Credit.  The Borrower may at any time prior to the
      Expiration Date request the issuance of a standby or trade letter of credit
      under this Agreement (each a "Letter of Credit") on behalf of itself or another
      Loan Party, or the amendment or extension of an existing Letter of Credit,
      by
      delivering or having such other Loan Party deliver to the Issuing Lender (with
      a
      copy to the Administrative Agent) a completed application and agreement for
      letters of credit, or request for such amendment or extension, as applicable,
      in
      such form as the Issuing Lender may specify from time to time by no later than
      2:00 p.m. at least one (1) Business Day, or such shorter period as may be agreed
      to by the Issuing Lender, in advance of the proposed date of
      issuance.  For the avoidance of doubt, the defined term "Letter of
      Credit" shall not include any Letters of Credit issued to Strategic Receivables
      pursuant to the Receivables Purchase Facility.  Promptly after receipt
      of any letter of credit application, the Issuing Lender shall confirm with
      the
      Administrative Agent (by telephone or in writing) that the Administrative Agent
      has received a copy of such Letter of Credit application and  if not,
      such Issuing Lender will provide Administrative Agent with a copy
      thereof.  Unless the Issuing Lender has received notice from any
      lender, Administrative Agent or any Loan party, at least one day prior to the
      requested date of issuance, amendment or extension of the applicable Letter
      of
      Credit, that one or more applicable conditions in Section 7 [Conditions of
      Lending and Issuance of Letters of Credit] is not satisfied, then, subject
      to
      the terms and conditions hereof and in reliance on the agreements of the other
      Lenders set forth in this Section 2.9, the Issuing Lender or any of the
      Issuing Lender's Affiliates will issue a Letter of Credit or agree to such
      amendment or extension, provided that each Letter of Credit shall (A) have
      a maximum maturity of twelve (12) months from the date of issuance, and
      (B) in no event expire later than the Expiration Date and provided further
      that in no event shall (i) the Letter of Credit Obligations exceed, at any
      one time, the  lesser of the Borrowing Base or the Commitments or
      (ii) the Facility Usage exceed, at any one time, the Facility
      Availability.  Each request by the Borrower for the issuance,
      amendment or extension of a Letter of Credit shall be deemed to be a
      representation by the Borrower that it shall be in compliance with the preceding
      sentence and with Section 7[Conditions of Lending and Issuance of Letters of
      Credit] after giving effect to the requested issuance, amendment or extension
      of
      such Letter of Credit.

     

    2.9.2           Letter
      of Credit Fees.  The Borrower shall pay (i) to the
      Administrative Agent for the ratable account of the Lenders a fee (the "Letter
      of Credit Fee") equal to the Applicable Letter of Credit Fee Rate, and
      (ii) to the Issuing Lender for its own account a fronting fee equal to one
      eighth of one percent (1/8%) per annum (in each case computed on the basis
      of a
      year of 360 days and actual days elapsed), which fees shall be computed on
      the
      daily average Letter of Credit Obligations and shall be payable quarterly in
      arrears on each Payment Date following issuance of each Letter of
      Credit.  The Borrower shall also pay to the Issuing Lender for the
      Issuing Lender's sole account the Issuing Lender's then in effect customary
      fees
      and administrative expenses payable with respect to the Letters of Credit as
      the
      Issuing Lender may generally charge or incur from time to time in connection
      with the issuance, maintenance, amendment (if any), assignment or transfer
      (if
      any), negotiation, and administration of Letters of
      Credit.

     

    2.9.3           Disbursements,
      Reimbursement.  Immediately upon the Issuance of each Letter of
      Credit, each Lender shall be deemed to, and hereby irrevocably and
      unconditionally agrees to, purchase from the Issuing Lender a participation
      in
      such Letter of Credit and each drawing thereunder in an amount equal to such
      Lender's Ratable Share of the maximum amount available to be drawn under such
      Letter of Credit and the amount of such drawing, respectively.

     

    2.9.3.1            In
      the event of any request for a drawing under a Letter of Credit by the
      beneficiary or transferee thereof, the Issuing Lender will promptly notify
      the
      Borrower and the Administrative Agent thereof.  Provided that it shall
      have received such notice, the Borrower shall reimburse (such obligation to
      reimburse the Issuing Lender shall sometimes be referred to as a "Reimbursement
      Obligation") the Issuing Lender prior to 12:00 noon, Pittsburgh time on each
      date that an amount is paid by the Issuing Lender under any Letter of Credit
      (each such date, a "Drawing Date") by

     

    -22-

     
      
        

      

    

    

    paying
      to
      the Administrative Agent for the account of the Issuing Lender an amount equal
      to the amount so paid by the Issuing Lender.  In the event the
      Borrower fails to reimburse the Issuing Lender (through the Administrative
      Agent) for the full amount of any drawing under any Letter of Credit by 12:00
      noon, Pittsburgh time, on the Drawing Date, the Administrative Agent will
      promptly notify each Lender thereof, and the Borrower shall be deemed to have
      requested that Loans be made by the Lenders under the Base Rate Option to be
      disbursed on the Drawing Date under such Letter of Credit, subject to Facility
      Availability and subject to the conditions set forth in Section 7.2 [Each
      Additional Loan] other than any notice requirements.  Any notice given
      by the Administrative Agent or Issuing Lender pursuant to this
      Section 2.9.3.1 may be oral if immediately confirmed in writing; provided
      that the lack of such an immediate confirmation shall not affect the
      conclusiveness or binding effect of such notice.

     

    2.9.3.2            Each
      Lender shall upon any notice pursuant to Section 2.9.3.1 make available to
      the
      Administrative Agent for the account of the Issuing Lender an amount in
      immediately available funds equal to its Ratable Share of the amount of the
      drawing, whereupon the participating Lenders shall (subject to Section 
2.9.3[Disbursement; Reimbursement]) each be deemed to have made a Loan under
      the
      Base Rate Option to the Borrower in that amount.  If any Lender so
      notified fails to make available to the Administrative Agent for the account
      of
      the Issuing Lender the amount of such Lender's Ratable Share of such amount
      by
      no later than 2:00 p.m., Pittsburgh time on the Drawing Date, then interest
      shall accrue on such Lender's obligation to make such payment, from the Drawing
      Date to the date on which such Lender makes such payment (i) at a rate per
      annum
      equal to the Federal Funds Effective Rate during the first three (3) days
      following the Drawing Date and (ii) at a rate per annum equal to the rate
      applicable to Loans under the Base Rate Option on and after the fourth day
      following the Drawing Date.  The Administrative Agent and the Issuing
      Lender will promptly give notice (as described in Section 2.9.3.1 above) of
      the
      occurrence of the Drawing Date, but failure of the Administrative Agent or
      the
      Issuing Lender to give any such notice on the Drawing Date or in sufficient
      time
      to enable any Lender to effect such payment on such date shall not relieve
      such
      Lender from its obligation under this Section 2.9.3.2.

     

    2.9.3.3            With
      respect to any unreimbursed drawing that is not converted into Loans under
      the
      Base Rate Option to the Borrower in whole or in part as contemplated by
      Section 2.9.3.1, because of the Borrower's failure to satisfy the
      conditions set forth in Section 7.2 [Each Additional Loan] other than any
      notice requirements, or for any other reason, the Borrower shall be deemed
      to
      have incurred from the Issuing Lender a borrowing (each a "Letter of Credit
      Borrowing") in the amount of such drawing.  Such Letter of Credit
      Borrowing shall be due and payable on demand (together with interest) and shall
      bear interest at the rate per annum applicable to the Loans under the Base
      Rate
      Option.  Each Lender's payment to the Administrative Agent for the
      account of the Issuing Lender pursuant to Section 2.9.3 [Disbursements,
      Reimbursement] shall be deemed to be a payment in respect of its participation
      in such Letter of Credit Borrowing (each a "Participation Advance") from such
      Lender in satisfaction of its participation obligation under this
      Section 2.9.3.

     

    2.9.4           Repayment
      of Participation Advances.

     

    2.9.4.1            Upon
      (and only upon) receipt by the Administrative Agent for the account of the
      Issuing Lender of immediately available funds from the Borrower (i) in
      reimbursement of any payment made by the Issuing Lender under the Letter of
      Credit with respect to which any Lender has made a Participation Advance to
      the
      Administrative Agent, or (ii) in payment of interest on such a payment made
      by the Issuing Lender under such a Letter of Credit, the Administrative Agent
      on
      behalf of the Issuing Lender will pay to each Lender, in the same funds as
      those
      received by the Administrative Agent, the amount of such Lender's Ratable Share
      of such funds, except the Administrative Agent shall retain for the account
      of
      the Issuing Lender the amount of the Ratable Share of such funds of any Lender
      that did not make a Participation Advance in respect of such payment by the
      Issuing Lender.

     

    

     -23-
      
        

      

    

    

     

     

    2.9.4.2             If
      the Administrative Agent is required at any time to return to any Loan Party,
      or
      to a trustee, receiver, liquidator, custodian, or any official in any Insolvency
      Proceeding, any portion of any payment made by any Loan Party to the
      Administrative Agent for the account of the Issuing Lender pursuant to this
      Section in reimbursement of a payment made under the Letter of Credit or
      interest or fee thereon, each Lender shall, on demand of the Administrative
      Agent, forthwith return to the Administrative Agent for the account of the
      Issuing Lender the amount of its Ratable Share of any amounts so returned by
      the
      Administrative Agent plus interest thereon from the date such demand is made
      to
      the date such amounts are returned by such Lender to the Administrative Agent,
      at a rate per annum equal to the Federal Funds Effective Rate in effect from
      time to time.

     

    2.9.5           Documentation.  Each
      Loan Party agrees to be bound by the terms of the Issuing Lender's application
      and agreement for letters of credit and the Issuing Lender's written regulations
      and customary practices relating to letters of credit, though such
      interpretation may be different from such Loan Party's own.  In the
      event of a conflict between such application or agreement and this Agreement,
      this Agreement shall govern.  It is understood and agreed that, except
      in the case of gross negligence or willful misconduct, the Issuing Lender shall
      not be liable for any error, negligence and/or mistakes, whether of omission
      or
      commission, in following any Loan Party's instructions or those contained in
      the
      Letters of Credit or any modifications, amendments or supplements
      thereto.

     

    2.9.6           Determinations
      to Honor Drawing Requests.  In determining whether to honor any
      request for drawing under any Letter of Credit by the beneficiary thereof,
      the
      Issuing Lender shall be responsible only to determine that the documents and
      certificates required to be delivered under such Letter of Credit have been
      delivered and that they comply on their face with the requirements of such
      Letter of Credit.

     

    2.9.7           Nature
      of Participation and Reimbursement Obligations.  Each Lender's
      obligation in accordance with this Agreement to make the Loans or Participation
      Advances, as contemplated by Section 2.9.3 [Disbursements, Reimbursement],
      as a result of a drawing under a Letter of Credit, and the Obligations of the
      Borrower to reimburse the Issuing Lender upon a draw under a Letter of Credit,
      shall be absolute, unconditional and irrevocable, and shall be performed
      strictly in accordance with the terms of this Section 2.9 under all
      circumstances, including the following circumstances:

     

    (i)           any
      set-off, counterclaim, recoupment, defense or other right which such Lender
      may
      have against the Issuing Lender or any of its Affiliates, the Borrower or any
      other Person for any reason whatsoever, or which any Loan Party may have against
      the Issuing Lender or any of its Affiliates, any Lender or any other Person
      for
      any reason whatsoever;

     

    (ii)           the
      failure of any Loan Party or any other Person to comply, in connection with
      a
      Letter of Credit Borrowing, with the conditions set forth in Section 2.1
      [Commitments], 2.5 [Loan Requests], 2.6 [Making Loans] or 7.2 [Each Additional
      Loan] or as otherwise set forth in this Agreement for the making of a Loan, it
      being acknowledged that such conditions are not required for the making of
      a
      Letter of Credit Borrowing and the obligation of the Lenders to make
      Participation Advances under Section 2.9.3 [Disbursements,
      Reimbursement];

     

    (iii)           any
      lack of validity or enforceability of any Letter of Credit;

     

    (iv)           any
      claim of breach of warranty that might be made by any Loan Party or any Lender
      against any beneficiary of a Letter of Credit, or the existence of any claim,
      set-off, recoupment, counterclaim, crossclaim, defense or other right which
      any
      Loan Party or any Lender may have at any time against a beneficiary, successor
      beneficiary any transferee or assignee of any Letter of Credit or the proceeds
      thereof (or any Persons for whom any such transferee may be acting), the Issuing
      Lender or its Affiliates or any Lender or any other Person, whether in
      connection with this

     

    -24-

     
      

    

    

    Agreement,
      the transactions contemplated herein or any unrelated transaction (including
      any
      underlying transaction between any Loan Party or Subsidiaries of a Loan Party
      and the beneficiary for which any Letter of Credit was procured);

     

    (v)           the
      lack of power or authority of any signer of (or any defect in or forgery of
      any
      signature or endorsement on) or the form of or lack of validity, sufficiency,
      accuracy, enforceability or genuineness of any draft, demand, instrument,
      certificate or other document presented under or in connection with any Letter
      of Credit, or any fraud or alleged fraud in connection with any Letter of
      Credit, or the transport of any property or provision of services relating
      to a
      Letter of Credit, in each case even if the Issuing Lender or any of its
      Affiliates has been notified thereof;

     

    (vi)          payment
      by the Issuing Lender or any of its Affiliates under any Letter of Credit
      against presentation of a demand, draft or certificate or other document which
      does not comply with the terms of such Letter of Credit;

     

    (vii)         the
      solvency of, or any acts or omissions by, any beneficiary of any Letter of
      Credit, or any other Person having a role in any transaction or obligation
      relating to a Letter of Credit, or the existence, nature, quality, quantity,
      condition, value or other characteristic of any property or services relating
      to
      a Letter of Credit;

     

    (viii)        any
      failure by the Issuing Lender or any of its Affiliates to issue any Letter
      of
      Credit in the form requested by any Loan Party, unless the Issuing Lender has
      received written notice from such Loan Party of such failure within three
      Business Days after the Issuing Lender shall have furnished such Loan Party
      and
      the Administrative Agent a copy of such Letter of Credit and such error is
      material and no drawing has been made thereon prior to receipt of such
      notice;

     

    (ix)           any
      adverse change in the business, operations, properties, assets, condition
      (financial or otherwise) or prospects of any Loan Party or Subsidiaries of
      a
      Loan Party;

     

    (x)           any
      breach of this Agreement or any other Loan Document by any party
      thereto;

     

    (xi)          the
      occurrence or continuance of an Insolvency Proceeding with respect to any Loan
      Party;

     

    (xii)         the
      fact that an Event of Default or a Potential Default shall have occurred and
      be
      continuing;

     

    (xiii)        the
      fact that the Expiration Date shall have passed or this Agreement or the
      Commitments hereunder shall have been terminated; and

     

    (xiv)        any
      other circumstance or happening whatsoever, whether or not similar to any of
      the
      foregoing.

     

    2.9.8           Indemnity.  The
      Borrower hereby agrees to protect, indemnify, pay and save harmless the Issuing
      Lender and any of its Affiliates that has issued a Letter of Credit from and
      against any and all claims, demands, liabilities, damages, taxes, penalties,
      interest, judgments, losses, costs, charges and expenses (including reasonable
      fees, expenses and disbursements of counsel and allocated costs of internal
      counsel) which the Issuing Lender or any of its Affiliates may incur or be
      subject to as a consequence, direct or indirect, of the issuance of any Letter
      of Credit, other than as a result of (A) the gross negligence or willful
      misconduct of the Issuing Lender as determined by a final non-appealable
      judgment of a court of competent jurisdiction or (B) the wrongful dishonor
      by the Issuing Lender or any of Issuing Lender's Affiliates of a proper demand
      for payment made under any Letter of Credit, except if  such dishonor
      resulted from any act or omission, whether rightful or wrongful, of any present
      or future de jure or de facto government or governmental authority.

     

    -25-

     
      
        

      

    

    

    

     

    2.9.9           Liability
      for Acts and Omissions.  As between any Loan Party and the Issuing
      Lender, or the Issuing Lender's Affiliates, such Loan Party assumes all risks
      of
      the acts and omissions of, or misuse of the Letters of Credit by, the respective
      beneficiaries of such Letters of Credit.  In furtherance and not in
      limitation of the foregoing, the Issuing Lender shall not be responsible for
      any
      of the following, including any losses or damages to any Loan Party or other
      Person or property relating therefrom:  (i) the form, validity,
      sufficiency, accuracy, genuineness or legal effect of any document submitted
      by
      any party in connection with the application for an issuance of any such Letter
      of Credit, even if it should in fact prove to be in any or all respects invalid,
      insufficient, inaccurate, fraudulent or forged (even if the Issuing Lender
      or
      its Affiliates shall have been notified thereof); (ii) the validity or
      sufficiency of any instrument transferring or assigning or purporting to
      transfer or assign any such Letter of Credit or the rights or benefits
      thereunder or proceeds thereof, in whole or in part, which may prove to be
      invalid or ineffective for any reason; (iii) the failure of the beneficiary
      of any such Letter of Credit, or any other party to which such Letter of Credit
      may be transferred, to comply fully with any conditions required in order to
      draw upon such Letter of Credit or any other claim of any Loan Party against
      any
      beneficiary of such Letter of Credit, or any such transferee, or any dispute
      between or among any Loan Party and any beneficiary of any Letter of Credit
      or
      any such transferee; (iv) errors, omissions, interruptions or delays in
      transmission or delivery of any messages, by mail, cable, telegraph, telex
      or
      otherwise, whether or not they be in cipher; (v) errors in interpretation
      of technical terms; (vi) any loss or delay in the transmission or otherwise
      of any document required in order to make a drawing under any such Letter of
      Credit or of the proceeds thereof; (vii) the misapplication by the
      beneficiary of any such Letter of Credit of the proceeds of any drawing under
      such Letter of Credit; or (viii) any consequences arising from causes
      beyond the control of the Issuing Lender or the its Affiliates, as applicable,
      including any act or omission of any governmental authority, and none of the
      above shall affect or impair, or prevent the vesting of, any of the Issuing
      Lender's or its Affiliates rights or powers hereunder.  Nothing in the
      preceding sentence shall relieve the Issuing Lender from liability for the
      Issuing Lender's gross negligence or willful misconduct in connection with
      actions or omissions described in such clauses (i) through (viii) of such
      sentence.  In no event shall the Issuing Lender or its Affiliates be
      liable to any Loan Party for any indirect, consequential, incidental, punitive,
      exemplary or special damages or expenses (including without limitation
      attorneys' fees), or for any damages resulting from any change in the value
      of
      any property relating to a Letter of Credit.

     

    Without
      limiting the generality of the foregoing, the Issuing Lender and each of its
      Affiliates (i) may rely on any oral or other communication believed in good
      faith by the Issuing Lender or such Affiliate to have been authorized or given
      by or on behalf of the applicant for a Letter of Credit, (ii) may honor any
      presentation if the documents presented appear on their face substantially
      to
      comply with the terms and conditions of the relevant Letter of Credit; (iii)
      may
      honor a previously dishonored presentation under a Letter of Credit, whether
      such dishonor was pursuant to a court order, to settle or compromise any claim
      of wrongful dishonor, or otherwise, and shall be entitled to reimbursement
      to
      the same extent as if such presentation had initially been honored, together
      with any interest paid by the Issuing Lender or its Affiliate; (iv) may honor
      any drawing that is payable upon presentation of a statement advising
      negotiation or payment, upon receipt of such statement (even if such statement
      indicates that a draft or other document is being delivered separately), and
      shall not be liable for any failure of any such draft or other document to
      arrive, or to conform in any way with the relevant Letter of Credit; (v) may
      pay
      any paying or negotiating bank claiming that it rightfully honored under the
      laws or practices of the place where such bank is located; and (vi) may settle
      or adjust any claim or demand made on the Issuing Lender or its Affiliate in
      any
      way related to any order issued at the applicant's request to an air carrier,
      a
      letter of guarantee or of indemnity issued to a carrier or any similar document
      (each an "Order") and honor any drawing in connection with any Letter of Credit
      that is the subject of such Order, notwithstanding that any drafts or other
      documents presented in connection with such Letter of Credit fail to conform
      in
      any way with such Letter of Credit.

     

    

     -26-
      
        

      

    

    

     

    In
      furtherance and extension and not in limitation of the specific provisions
      set
      forth above, any action taken or omitted by the Issuing Lender or its Affiliates
      under or in connection with the Letters of Credit issued by it or any documents
      and certificates delivered thereunder, if taken or omitted in good faith, shall
      not put the Issuing Lender or its Affiliates under any resulting liability
      to
      the Borrower or any Lender.

     

    2.9.10         Issuing
      Lender Reporting Requirements.  Each Issuing Lender shall, on the
      first business day of each month, provide to Administrative Agent and Borrower
      a
      schedule of the Letters of Credit issued by it, in form and substance
      satisfactory to Administrative Agent, showing the date of issuance of each
      Letter of Credit, the account party, the original face amount (if any), and
      the
      expiration date of any Letter of Credit outstanding at any time during the
      preceding month, and any other information relating to such Letter of Credit
      that the Administrative Agent may request.

     

    2.9.11         Reduction
      of Commitment.  The Borrower shall have the right at any time
      after the Closing Date upon five (5) days' prior written notice to the
      Administrative Agent to permanently reduce (ratably among the Lenders in
      proportion to their Ratable Shares) the Commitments, in a minimum amount of
      $5,000,000 and whole multiples of $1,000,000, or to terminate completely the
      Commitments, without penalty or premium except as hereinafter set forth;
      provided that any such reduction or termination shall be accompanied by
      prepayment of the Notes, together with outstanding Commitment Fees, and the
      full
      amount of interest accrued on the principal sum to be prepaid (and all amounts
      referred to in Section 5.10 [Indemnity] hereof) to the extent necessary to
      cause
      the aggregate Facility Usage after giving effect to such prepayments to be
      equal
      to or less than the lesser of (i) the Commitments as so reduced or terminated
      or
      (ii) the Borrowing Base.  Any notice to reduce the Commitments under
      this Section 2.1. shall be irrevocable.

     

    3.           INTENTIONALLY
      OMITTED 

     

    4.           INTEREST
      RATES

     

    4.1           Interest
      Rate Options.  The Borrower shall pay interest in respect of the
      outstanding unpaid principal amount of the Loans as selected by it from the
      Base
      Rate Option or LIBOR Rate Option set forth below applicable to the Loans, it
      being understood that, subject to the provisions of this Agreement, the Borrower
      may select different Interest Rate Options and different Interest Periods to
      apply simultaneously to the Loans comprising different Borrowing Tranches and
      may convert to or renew one or more Interest Rate Options with respect to all
      or
      any portion of the Loans comprising any Borrowing Tranche; provided that there
      shall not be at any one time outstanding more than five (5) Borrowing Tranches
      in the aggregate among all of the Loans and provided further that if an Event
      of
      Default or Potential Default exits and is continuing, the Borrower may not
      request, convert to, or renew the LIBOR Rate Option for any Loans and the
      Required Lenders may demand that all existing Borrowing Tranches bearing
      interest under the LIBOR Rate Option shall be converted immediately to the
      Base
      Rate Option, subject to the obligation of the Borrower to pay any indemnity
      under Section 5.10 [Indemnity] in connection with such conversion.  If
      at any time the designated rate applicable to any Loan made by any Lender
      exceeds such Lender's highest lawful rate, the rate of interest on such Lender's
      Loan shall be limited to such Lender's highest lawful rate.

     

    4.1.1           Interest
      Rate Options.  The Borrower shall have the right to select from
      the following Interest Rate Options applicable to the Loans:

     

              (i)           Base
      Rate Option:  A fluctuating rate per annum (computed on the basis
      of a year of 365 or 366  days, as the case may be, and
      actual days elapsed) equal to the Base Rate plus the Applicable Margin, such
      interest rate to change automatically from time to time effective as of the
      effective date of each change in the Base Rate; or

     

    

     -27-
      
        

      

    

    

    (ii)           LIBOR
      Rate Option:  A rate per annum (computed on the basis of a year of
      360 days and actual days elapsed) equal to the LIBOR Rate plus the Applicable
      Margin.

     

    4.1.2           Rate
      Quotations.  The Borrower may call the Administrative Agent on or
      before the date on which a Loan Request is to be delivered to receive an
      indication of the rates then in effect, but it is acknowledged that such
      projection shall not be binding on the Administrative Agent or the Lenders
      nor
      affect the rate of interest which thereafter is actually in effect when the
      election is made.

     

    4.2           Interest
      Periods.  At any time when the Borrower shall select, convert to
      or renew a LIBOR Rate Option, the Borrower shall notify the Administrative
      Agent
      thereof at least three (3) Business Days prior to the effective date of such
      LIBOR Rate Option by delivering a Loan Request.  The notice shall
      specify an Interest Period during which such Interest Rate Option shall
      apply.  Notwithstanding the preceding sentence, the following
      provisions shall apply to any selection of, renewal of, or conversion to a
      LIBOR
      Rate Option:

     

    4.2.1           Amount
      of Borrowing Tranche.  Each Borrowing Tranche of Loans under the
      LIBOR Rate Option shall be in integral multiples of $100,000 and not less than
      $1,000,000; and

     

    4.2.2           Renewals.  In
      the case of the renewal of a LIBOR Rate Option at the end of an Interest Period,
      the first day of the new Interest Period shall be the last day of the preceding
      Interest Period, without duplication in payment of interest for such
      day.

     

    4.3           Interest
      After Default.  To the extent permitted by Law, upon the
      occurrence of an Event of Default and until such time such Event of Default
      shall have been cured or waived:

     

    4.3.1           Letter
      of Credit Fees, Interest Rate.  The Letter of Credit Fees and the
      rate of interest for each Loan otherwise applicable pursuant to
      Section 2.9.2 [Letter of Credit Fees] or Section 4.1 [Interest Rate
      Options], respectively, shall be increased by 2.0% per annum;

     

    4.3.2           Other
      Obligations.  Each other Obligation hereunder if not paid when due
      shall bear interest at a rate per annum equal to the sum of the rate of interest
      applicable under the Base Rate Option plus an additional 2.0% per annum from
      the
      time such Obligation becomes due and payable and until it is paid in full;
      and

     

    4.3.3           Acknowledgment.  The
      Borrower acknowledges that the increase in rates referred to in this
      Section 4.3 reflects, among other things, the fact that such Loans or other
      amounts have become a substantially greater risk given their default status
      and
      that the Lenders are entitled to additional compensation for such risk; and
      all
      such interest shall be payable by Borrower upon demand by Administrative
      Agent.

     

    4.4           LIBOR
      Rate Unascertainable; Illegality; Increased Costs; Deposits Not
      Available.

     

    4.4.1           Unascertainable.  If
      on any date on which a LIBOR Rate would otherwise be determined, the
      Administrative Agent shall have determined that:

     

    (i)           adequate
      and reasonable means do not exist for ascertaining such LIBOR Rate,
      or

     

    (ii)           a
      contingency has occurred which materially and adversely affects the London
      interbank eurodollar market relating to the LIBOR Rate, the Administrative
      Agent
      shall have the rights specified in Section 4.4.3 [Administrative Agent's
      and Lender's Rights].

     

    4.4.2           Illegality;
      Increased Costs; Deposits Not Available.

     

      If
      at any time any Lender shall have determined that:

     

    (i)         the
      making, maintenance or funding of any Loan to which a LIBOR Rate Option applies
      has been made impracticable or unlawful by compliance by such

     

     

    -28-

    

    
      

    

    

    Lender
      in
      good faith with any Law or any interpretation or application thereof by any
      Official Body or with any request or directive of any such Official Body
      (whether or not having the force of Law), or

     

    (ii)         such
      LIBOR Rate Option will not adequately and fairly reflect the cost to such Lender
      of the establishment or maintenance of any such Loan, or

     

    (iii)         after
      making all reasonable efforts, deposits of the relevant amount in Dollars for
      the relevant Interest Period for a Loan, or to banks generally, to which a
      LIBOR
      Rate Option applies, respectively, are not available to such Lender with respect
      to such Loan, or to banks generally, in the interbank eurodollar market, then
      the Administrative Agent shall have the rights specified in Section 4.4.3
      [Administrative Agent's and Lender's Rights].

     

    4.4.3           Administrative
      Agent's and Lender's Rights.  In the case of any event specified
      in Section 4.4.1 [Unascertainable] above, the Administrative Agent shall
      promptly so notify the Lenders and the Borrower thereof, and in the case of
      an
      event specified in Section 4.4.2 [Illegality; Increased Costs; Deposits Not
      Available] above, such Lender shall promptly so notify the Administrative Agent
      and endorse a certificate to such notice as to the specific circumstances of
      such notice, and the Administrative Agent shall promptly send copies of such
      notice and certificate to the other Lenders and the Borrower.  Upon
      such date as shall be specified in such notice (which shall not be earlier
      than
      the date such notice is given), the obligation of (A) the Lenders, in the
      case of such notice given by the Administrative Agent, or (B) such Lender,
      in the case of such notice given by such Lender, to allow the Borrower to
      select, convert to or renew a LIBOR Rate Option shall be suspended until the
      Administrative Agent shall have later notified the Borrower, or such Lender
      shall have later notified the Administrative Agent, of the Administrative
      Agent's or such Lender's, as the case may be, determination that the
      circumstances giving rise to such previous determination no longer
      exist.  If at any time the Administrative Agent makes a determination
      under Section 4.4.1 [Unascertainable] and the Borrower has previously
      notified the Administrative Agent of its selection of, conversion to or renewal
      of a LIBOR Rate Option and such Interest Rate Option has not yet gone into
      effect, such notification shall be deemed to provide for selection of,
      conversion to or renewal of the Base Rate Option otherwise available with
      respect to such Loans.  If any Lender notifies the Administrative
      Agent of a determination under Section 4.4.2 [Illegality; Increased Costs;
      Deposits Not Available], the Borrower shall, subject to the Borrower's
      indemnification Obligations under Section 5.10 [Indemnity], as to any Loan
      of the Lender to which a LIBOR Rate Option applies, on the date specified in
      such notice either convert such Loan to the Base Rate Option otherwise available
      with respect to such Loan or prepay such Loan in accordance with
      Section 5.6 [Voluntary Prepayments].  Absent due notice from the
      Borrower of conversion or prepayment, such Loan shall automatically be converted
      to the Base Rate Option otherwise available with respect to such Loan upon
      such
      specified date.

     

    4.5           Selection
      of Interest Rate Options.  If the Borrower fails to select a new
      Interest Period to apply to any Borrowing Tranche of Loans under the LIBOR
      Rate
      Option at the expiration of an existing Interest Period applicable to such
      Borrowing Tranche in accordance with the provisions of Section 4.2
      [Interest Periods], the Borrower shall be deemed to have converted such
      Borrowing Tranche to the Base Rate Option commencing upon the last day of the
      existing Interest Period.

     

    5.           PAYMENTS

     

    5.1           Payments.  All
      payments and prepayments to be made in respect of principal, interest,
      Commitment Fees, Facility Fees, Letter of Credit Fees, Administrative Agent's
      Fee or other feesor amounts due from the Borrower hereunder shall be payable
      prior to 11:00 a.m. on the date when due, provided that Borrower has adequate
      information to assess such amount due, without presentment, demand, protest
      or
      notice of any kind, all of which are hereby expressly waived by the Borrower,
      and without set-off, counterclaim or other deduction of any nature, and an
      action therefor shall immediately

     

    

     -29-
      
        

      

    

    

    accrue.  Such
      payments shall be made to the Administrative Agent at the Principal Office
      for
      the ratable accounts of the Lenders with respect to the Loans in U.S. Dollars
      and in immediately available funds, and the Administrative Agent shall promptly
      distribute such amounts to the Lenders in immediately available funds; provided
      that in the event payments are received by 11:00 a.m. by the Administrative
      Agent with respect to the Loans and such payments are not distributed to the
      Lenders on the same day received by the Administrative Agent, the Administrative
      Agent shall pay the Lenders the Federal Funds Effective Rate with respect to
      the
      amount of such payments for each day held by the Administrative Agent and not
      distributed to the Lenders.  The Administrative Agent's and each
      Lender's statement of account, ledger or other relevant record shall, in the
      absence of manifest error, be conclusive as the statement of the amount of
      principal of and interest on the Loans and other amounts owing under this
      Agreement and shall be deemed an "account stated."

     

    5.2           Pro
      Rata Treatment of Lenders.  Each borrowing shall be allocated to
      each Lender according to its Ratable Share, and each selection of, conversion
      to
      or renewal of any Interest Rate Option and each payment or prepayment by the
      Borrower with respect to principal, interest, Commitment Fees, Facility Fees,
      Letter of Credit Fees, or other fees (except for the Administrative Agent's
      Fee)
      or amounts due from the Borrower hereunder to the Lenders with respect to the
      Loans, shall (except as provided in Section 4.4.3 [Administrative Agent's
      and Lender's Rights] in the case of an event specified in Section 4.4
      [LIBOR Rate Unascertainable; Etc.], 5.6.2 [Replacement of a Lender] or 5.8
      [Increased Costs; Indemnity]) be made in proportion to the applicable Loans
      outstanding from each Lender and, if no such Loans are then outstanding, in
      proportion to the Ratable Share of each Lender.

     

    5.3           Sharing
      of Payments by Lenders.  If any Lender shall, by exercising any
      right of setoff, counterclaim or banker's lien, by receipt of voluntary payment,
      by realization upon security, or by any other non-pro rata source, obtain
      payment in respect of any principal of or interest on any of its Loans or other
      obligations hereunder resulting in such Lender’s receiving payment of a
      proportion of the aggregate amount of its Loans and accrued interest thereon
      or
      other such obligations greater than its Ratable Share thereof as provided
      herein, then the Lender receiving such greater proportion shall (a) notify
      the Administrative Agent of such fact, and (b) purchase (for cash at face
      value) participations in the Loans and such other obligations of the other
      Lenders, or make such other adjustments as shall be equitable, so that the
      benefit of all such payments shall be shared by the Lenders ratably in
      accordance with the aggregate amount of principal of and accrued interest on
      their respective Loans and other amounts owing them, provided that:

     

    (i)            if
      any such participations are purchased and all or any portion of the payment
      giving rise thereto is recovered, such participations shall be rescinded and
      the
      purchase price restored to the extent of such recovery, together with interest
      or other amounts, if any, required by Law (including court order) to be paid
      by
      the Lender or the holder making such purchase; and

     

    (ii)            the
      provisions of this Section 5.3 shall not be construed to apply to (x) any
      payment made by the Loan Parties pursuant to and in accordance with the express
      terms of the Loan Documents or (y) any payment obtained by a Lender as
      consideration for the assignment of or sale of a participation in any of its
      Loans or Participation Advances to any assignee or participant, other than
      to
      the Borrower or any Subsidiary thereof (as to which the provisions of this
      Section 5.3 shall apply).

     

    Each
      Loan
      Party consents to the foregoing and agrees, to the extent it may effectively
      do
      so under applicable Law, that any Lender acquiring a participation pursuant
      to
      the foregoing arrangements may exercise against each Loan Party rights of setoff
      and counterclaim with respect to such participation as fully as if such Lender
      were a direct creditor of each Loan Party in the amount of such
      participation.

     

    5.4           Presumptions
      by Administrative Agent.  Unless the Administrative Agent shall
      have received notice from the Borrower prior to the date on which any payment
      is
      due to the Administrative Agent for the account of the Lenders or the Issuing
      Lender hereunder that the Borrower will not make

     

    

     -30-
      
        

      

    

     

    such
      payment, the Administrative Agent may assume that the Borrower has made such
      payment on such date in accordance herewith and may, in reliance upon such
      assumption, distribute to the Lenders or the Issuing Lender, as the case may
      be,
      the amount due.  In such event, if the Borrower has not in fact made
      such payment, then each of the Lenders or the Issuing Lender, as the case may
      be, severally agrees to repay to the Administrative Agent forthwith on demand
      the amount so distributed to such Lender or the Issuing Lender, with interest
      thereon, for each day from and including the date such amount is distributed
      to
      it to but excluding the date of payment to the Administrative Agent, at the
      greater of the Federal Funds Effective Rate and a rate determined by the
      Administrative Agent in accordance with banking industry rules on interbank
      compensation.

     

    5.5           Interest
      Payment Dates.  Interest on Loans to which the Base Rate Option
      applies shall be due and payable in arrears on each Payment
      Date.  Interest on Loans to which the LIBOR Rate Option applies shall
      be due and payable on the last day of each Interest Period for those Loans
      and,
      if such Interest Period is longer than three (3) Months, also on the 90th day
      of
      such Interest Period.  Interest on mandatory prepayments of principal
      under Section 5.7 [Mandatory Prepayments] shall be due on the date such
      mandatory prepayment is due.  Interest on the principal amount of each
      Loan or other monetary Obligation shall be due and payable on demand after
      such
      principal amount or other monetary Obligation becomes due and payable (whether
      on the stated Expiration Date, upon acceleration or otherwise).

     

    5.6           Voluntary
      Prepayments.

     

    5.6.1         Right
      to Prepay.  The Borrower shall have the right at its option from
      time to time to prepay the Loans in whole or part without premium or penalty
      (except as provided in Section 5.6.2 [Replacement of a Lender] below, in
      Section 5.8 [Increased Costs; Indemnity] and Section 5.10
      [Indemnity]).  Whenever the Borrower desires to prepay any part of the
      Loans to which the LIBOR Rate Option applies, it shall provide a prepayment
      notice to the Administrative Agent by 1:00 p.m. at least one (1) Business Day
      prior to the date of prepayment of such Loans setting forth the following
      information:

     

    (y)           the
      date, which shall be a Business Day, on which the proposed prepayment is to
      be
      made; and

     

    (z)           the
      total principal amount of such prepayment, which shall not be less than
      $1,000,000.

     

    All
      prepayment notices shall be irrevocable.  The principal amount of the
      Loans for which a prepayment notice is given, together with interest on such
      principal amount shall be due and payable on the date specified in such
      prepayment notice as the date on which the proposed prepayment is to be
      made.  Except as provided in Section 4.4.3 [Administrative
      Agent's and Lender's Rights], if the Borrower prepays a Loan but fails to
      specify the applicable Borrowing Tranche which the Borrower is prepaying, the
      prepayment shall be applied first to Loans to which the Base Rate Option
      applies, then to Loans to which the LIBOR Rate Option applies.  Any
      prepayment hereunder shall be subject to the Borrower's Obligation to indemnify
      the Lenders under Section 5.10 [Indemnity].

     

    5.6.2           Replacement
      of a Lender.  In the event any Lender (i) gives notice under
      Section 4.4 [LIBOR Rate Unascertainable, Etc.], (ii) requests compensation
      under Section 5.8 [Increased Costs], or requires the Borrower to pay any
      additional amount to any Lender or any Official Body for the account of any
      Lender pursuant to Section 5.9[Taxes], (iii) is a Non-Complying Lender
      or otherwise, (iv) becomes subject to the control of an Official Body
      (other than normal and customary supervision), or (v) is a Non-Consenting Lender
      referred to in Section 11.1 [Modifications, Amendments or Waivers] then in
      any such event the Borrower may, at its sole expense, upon notice to such Lender
      and the Administrative Agent, require such Lender to assign and delegate,
      without recourse (in accordance with and subject to the restrictions contained
      in, and consents required by, Section 11.8 [Successors and Assigns]), all
      of its interests, rights and obligations under this Agreement and the related
      Loan Documents

     

    

     -31-
      
        

      

    

    

    
 

    to
      an
      assignee that shall assume such obligations (which assignee may be another
      Lender, if a Lender accepts such assignment), provided that:

     

    (i) 
      the Borrower shall have paid to the Administrative Agent the assignment fee
      specified in Section 11.8 [Successors and Assigns];

     

    (ii) 
      such Lender shall have received payment of an amount equal to the outstanding
      principal of its Loans and Participation Advances, accrued interest thereon,
      accrued fees and all other amounts payable to it hereunder and under the other
      Loan Documents (including any amounts under Section 5.10 [Indemnity]) from
      the assignee (to the extent of such outstanding principal and accrued interest
      and fees) or the Borrower (in the case of all other amounts);

     

    (iii) 
      in the case of any such assignment resulting from a claim for compensation
      under
      Section 5.8.1 [Increased Costs Generally] or payments required to be made
      pursuant to Section 5.9 [Taxes], such assignment will result in a reduction
      in such compensation or payments thereafter; and

     

    (iv) 
      such assignment does not conflict with applicable Law.

     

    A
      Lender
      shall not be required to make any such assignment or delegation if, prior
      thereto, as a result of a waiver by such Lender or otherwise, the circumstances
      entitling the Borrower to require such assignment and delegation cease to
      apply.

     

    5.7           Mandatory
      Prepayments.

     

    5.7.1           Sale
      of Assets.  Unless otherwise consented to in writing by the
      Administrative Agent and subject to any right of priority payments under the
      Receivables Purchase Facility, within five (5) Business Days of any non-ordinary
      course of business sale of assets (other than the sales contemplated under
      the
      Receivables Purchase Facility) authorized by Section 8.2.8 [Disposition of
      Assets or Subsidiaries] and any insurance and condemnation proceeds received
      by
      the Borrower or any of its subsidiaries, the Borrower shall make a mandatory
      prepayment of principal on the Loans equal to the after-tax proceeds of such
      sale (as estimated in good faith by the Borrower), together with accrued
      interest on such principal amount; provided however, that the Borrower and
      its
      Subsidiaries shall not be obligated to make any prepayments pursuant this
      Section 5.7.1 for any such sales that do not exceed $2,000,000 in the
      aggregate per each fiscal year.  All prepayments pursuant to this
      Section 5.7.1 shall be applied to payment of the principal amount of the
      Loans.

     

    5.7.2           Borrowing
      Base Exceeded.  Whenever the Facility Usage exceeds the Borrowing
      Base, the Borrower shall make, within one (1) Business Day after the Borrower
      learns of such excess and whether or not the Administrative Agent has given
      notice to such effect, a mandatory prepayment of principal, equal to the excess
      of the outstanding principal balance of the Facility Usage over the Borrowing
      Base, together with accrued interest on such principal amount.  In the
      event that such prepayment of principal is not sufficient to reduce the Facility
      Usage to less than the Borrowing Base, the Borrower shall provide cash
      collateral for the Letters of Credit in an amount sufficient to reduce the
      Facility Usage to less than the Borrowing Base.

     

    5.7.3           Application
      Among Interest Rate Options.  All prepayments required pursuant to
      this Section 5.7 shall first be applied among the Interest Rate Options to
      the principal amount of the Loans subject to the Base Rate Option, then to
      Loans
      subject to a LIBOR Rate Option.  In accordance with Section 5.10
      [Indemnity], the Borrower shall indemnify the Lenders for any loss or expense,
      including loss of margin, incurred with respect to any such prepayments applied
      against Loans subject to a LIBOR Rate Option on any day other than the last
      day
      of the applicable Interest Period.

     

    5.8           Increased
      Costs.

     

          
      5.8.1           Increased
      Costs Generally.  If any Change in Law shall:

     

    

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    (i)  impose,
      modify or deem applicable any reserve, special deposit, compulsory loan,
      insurance charge or similar requirement against assets of, deposits with or
      for
      the account of, or credit extended or participated in by, any Lender (except
      any
      reserve requirement reflected in the LIBOR Rate) or the Issuing
      Lender;

     

    (ii)  subject
      any Lender or the Issuing Lender to any tax of any kind whatsoever with respect
      to this Agreement, any Letter of Credit, any participation in a Letter of Credit
      or any Loan under the LIBOR Rate Option made by it, or change the basis of
      taxation of payments to such Lender or the Issuing Lender in respect thereof
      (except for Indemnified Taxes or Other Taxes covered by Section 5.9 [Taxes]
      and the imposition of, or any change in the rate of, any Excluded Tax payable
      by
      such Lender or the Issuing Lender); or

     

    (iii)  impose
      on any Lender, the Issuing Lender or the London interbank market any other
      condition, cost or expense affecting this Agreement or Loan under the LIBOR
      Rate
      Option made by such Lender or any Letter of Credit or participation therein;
      and
      the result of any of the foregoing shall be to increase the cost to such Lender
      of making or maintaining any Loan under the LIBOR Rate Option (or of maintaining
      its obligation to make any such Loan), or to increase the cost to such Lender
      or
      the Issuing Lender of participating in, issuing or maintaining any Letter of
      Credit (or of maintaining its obligation to participate in or to issue any
      Letter of Credit), or to reduce the amount of any sum received or receivable
      by
      such Lender or the Issuing Lender hereunder (whether of principal, interest
      or
      any other amount) then, upon request of such Lender or the Issuing Lender,
      the
      Borrower will pay to such Lender or the Issuing Lender, as the case may be,
      such
      additional amount or amounts as will compensate such Lender or the Issuing
      Lender, as the case may be, for such additional costs incurred or reduction
      suffered.

     

    5.8.2           Capital
      Requirements.  If any Lender or the Issuing Lender determines that
      any Change in Law affecting such Lender or the Issuing Lender or any lending
      office of such Lender or such Lender’s or the Issuing Lender’s holding company,
      if any, regarding capital requirements has or would have the effect of reducing
      the rate of return on such Lender’s or the Issuing Lender’s capital or on the
      capital of such Lender’s or the Issuing Lender’s holding company, if any, as a
      consequence of this Agreement, the Commitments of such Lender or the Loans
      made
      by, or participations in Letters of Credit held by, such Lender, or the Letters
      of Credit issued by the Issuing Lender, to a level below that which such Lender
      or the Issuing Lender or such Lender’s or the Issuing Lender’s holding company
      could have achieved but for such Change in Law (taking into consideration such
      Lender’s or the Issuing Lender’s policies and the policies of such Lender’s or
      the Issuing Lender’s holding company with respect to capital adequacy), then
      from time to time the Borrower will pay to such Lender or the Issuing Lender,
      as
      the case may be, such additional amount or amounts as will compensate such
      Lender or the Issuing Lender or such Lender’s or the Issuing Lender’s holding
      company for any such reduction suffered.

     

    5.8.3           Certificates
      for Reimbursement; Repayment of Outstanding Loans; Borrowing of New
      Loans.  A certificate of a Lender or the Issuing Lender setting
      forth the amount or amounts necessary to compensate such Lender or the Issuing
      Lender or its holding company, as the case may be, as specified in
      Sections 5.8.1 [Increased Costs Generally] or 5.8.2 [Capital Requirements]
      and delivered to the Borrower shall be conclusive absent manifest
      error.  The Borrower shall pay such Lender or the Issuing Lender, as
      the case may be, the amount shown as due on any such certificate within ten
      (10) days after receipt thereof.

     

    5.8.4           Delay
      in Requests.  Failure or delay on the part of any Lender or the
      Issuing Lender to demand compensation pursuant to this Section shall not
      constitute a waiver of such Lender’s or the Issuing Lender’s right to demand
      such compensation, provided that the Borrower shall not be required to
      compensate a Lender or the Issuing Lender pursuant to this Section for any
      increased costs incurred
      or reductions suffered more than nine months prior to the date that such Lender
      or the Issuing

     

    

    -33- 
      
        

      

    

    

    Lender,
      as the case may be, notifies the Borrower of the Change in Law giving rise
      to
      such increased costs or reductions and of such Lender’s or the Issuing Lender’s
      intention to claim compensation therefor (except that, if the Change in Law
      giving rise to such increased costs or reductions is retroactive, then the
      nine
      (9) month period referred to above shall be extended to include the period
      of
      retroactive effect thereof).

     

    5.9           Taxes.

     

    5.9.1           Payments
      Free of Taxes.  Any and all payments by or on account of any
      obligation of the Borrower hereunder or under any other Loan Document shall
      be
      made free and clear of and without reduction or withholding for any Indemnified
      Taxes or Other Taxes; provided that if the Borrower shall be required by
      applicable Law to deduct any Indemnified Taxes (including any Other Taxes)
      from
      such payments, then (i) the sum payable shall be increased as necessary so
      that after making all required deductions (including deductions applicable
      to
      additional sums payable under this Section) the Administrative Agent, Lender
      or
      Issuing Lender, as the case may be, receives an amount equal to the sum it
      would
      have received had no such deductions been made, (ii) the Borrower shall
      make such deductions and (iii) the Borrower shall timely pay the full
      amount deducted to the relevant Official Body in accordance with applicable
      Law.

     

                    5.9.2       Payment
      of Other Taxes by the Borrower.  Without limiting the provisions
      of Section 5.9.1 [Payments Free of Taxes] above, the Borrower shall timely
      pay any Other Taxes to the relevant Official Body in accordance with applicable
      Law.

     

    5.9.3           Indemnification
      by the Borrower.  The Borrower shall indemnify the Administrative
      Agent, each Lender and the Issuing Lender, within ten (10) days after demand
      therefor, for the full amount of any Indemnified Taxes or Other Taxes (including
      Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
      amounts payable under this Section) paid by the Administrative Agent, such
      Lender or the Issuing Lender, as the case may be, and any penalties, interest
      and reasonable expenses arising therefrom or with respect thereto, whether
      or
      not such Indemnified Taxes or Other Taxes were correctly or legally imposed
      or
      asserted by the relevant Official Body.  A certificate as to the
      amount of such payment or liability delivered to the Borrower by a Lender or
      the
      Issuing Lender (with a copy to the Administrative Agent), or by the
      Administrative Agent on its own behalf or on behalf of a Lender or the Issuing
      Lender, shall be conclusive absent manifest error.

     

    5.9.4           Evidence
      of Payments.  As soon as practicable after any payment of
      Indemnified Taxes or Other Taxes by the Borrower to a Official Body, the
      Borrower shall deliver to the Administrative Agent the original or a certified
      copy of a receipt issued by such Official Body evidencing such payment, a copy
      of the return reporting such payment or other evidence of such payment
      reasonably satisfactory to the Administrative Agent.

     

    5.9.5           Status
      of Lenders.  Any Foreign Lender that is entitled to an exemption
      from or reduction of withholding tax under the Law of the jurisdiction in which
      the Borrower is resident for tax purposes, or any treaty to which such
      jurisdiction is a party, with respect to payments hereunder or under any other
      Loan Document shall deliver to the Borrower (with a copy to the Administrative
      Agent), at the time or times prescribed by applicable Law or reasonably
      requested by the Borrower or the Administrative Agent, such properly completed
      and executed documentation prescribed by applicable Law as will permit such
      payments to be made without withholding or at a reduced rate of
      withholding.  Notwithstanding the submission of a such documentation
      claiming a reduced rate of or exemption from U.S. withholding tax, the
      Administrative Agent shall be entitled to withhold United States federal income
      taxes at the full 30% withholding rate if in its reasonable judgment it is
      required to do so under the due diligence requirements imposed upon a
      withholding agent under § 1.1441-7(b) of the United States Income Tax
      Regulations.  Further, the Administrative Agent is indemnified under §
1.1461-1(e) of the United States Income Tax Regulations against any claims
      and
      demands of any Lender or assignee or

     

    

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    participant
      of a Lender for the amount of any tax it deducts and withholds in accordance
      with regulations under § 1441 of the Internal Revenue Code.  In
      addition, any Lender, if requested by the Borrower or the Administrative Agent,
      shall deliver such other documentation prescribed by applicable Law or
      reasonably requested by the Borrower or the Administrative Agent as will enable
      the Borrower or the Administrative Agent to determine whether or not such Lender
      is subject to backup withholding or information reporting
      requirements.

    Without
      limiting the generality of the foregoing, in the event that the Borrower is
      resident for tax purposes in the United States of America, any Foreign Lender
      shall deliver to the Borrower and the Administrative Agent (in such number
      of
      copies as shall be requested by the recipient) on or prior to the date on which
      such Foreign Lender becomes a Lender under this Agreement (and from time to
      time
      thereafter upon the request of the Borrower or the Administrative Agent, but
      only if such Foreign Lender is legally entitled to do so), whichever of the
      following is applicable:

     

    (i)           duly
      completed copies of IRS Form W-8BEN claiming eligibility for benefits of an
      income tax treaty to which the United States of America is a party,

     

    (ii)          duly
      completed copies of  IRS Form W-8ECI,

     

    (iii)         in
      the case of a Foreign Lender claiming the benefits of the exemption for
      portfolio interest under section 881(c) of the Code, (x) a certificate to the
      effect that such Foreign Lender is not (A) a “bank” within the meaning of
      section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower
      within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled
      foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly
      completed copies of IRS Form W-8BEN, or

     

    (iv)         any
      other form prescribed by applicable Law as a basis for claiming exemption from
      or a reduction in United States Federal withholding tax duly completed together
      with such supplementary documentation as may be prescribed by applicable Law
      to
      permit the Borrower to determine the withholding or deduction required to be
      made.

     

    5.10           Indemnity.  In
      addition to the compensation or payments required by Section 5.8 [Increased
      Costs] or Section 5.9 [Taxes], the Borrower shall indemnify each Lender
      against all liabilities, losses or expenses (including loss of margin, any
      loss
      or expense incurred in liquidating or employing deposits from third parties
      and
      any loss or expense incurred in connection with funds acquired by a Lender
      to
      fund or maintain Loans subject to a LIBOR Rate Option) which such Lender
      sustains or incurs as a consequence of any

     

    (i)           payment,
      prepayment, conversion or renewal of any Loan to which a LIBOR Rate Option
      applies on a day other than the last day of the corresponding Interest Period
      (whether or not such payment or prepayment is mandatory, voluntary or automatic
      and whether or not such payment or prepayment is then due),

     

    (ii)          attempt
      by the Borrower to revoke (expressly, by later inconsistent notices or
      otherwise) in whole or part any Loan Requests under Section 2.5 [Loan
      Requests] or Section 4.2 [Interest Periods] or notice relating to
      prepayments under Section 5.6 [Voluntary Prepayments], or

     

    (iii)         default
      by the Borrower in the performance or observance of any covenant or condition
      contained in this Agreement or any other Loan Document, including any failure
      of
      the Borrower to pay when due (by acceleration or otherwise) any principal,
      interest, Commitment Fee or any other amount due hereunder.

     

    If
      any
      Lender sustains or incurs any such loss or expense, it shall from time to time
      notify the Borrower of the amount determined in good faith by such Lender (which
      determination may include such assumptions, allocations of costs and expenses
      and averaging or attribution methods as such Lender

     

    

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    shall
      deem reasonable) to be necessary to indemnify such Lender for such loss or
      expense.  Such notice shall set forth in reasonable detail the basis
      for such determination.  Such amount shall be due and payable by the
      Borrower to such Lender ten (10) Business Days after such notice is
      given.

     

    6.           REPRESENTATIONS
      AND WARRANTIES

     

    6.1           Representations
      and Warranties.  The Borrower, on behalf of itself and each of its
      Subsidiaries, represents and warrants to the Administrative Agent and each
      of
      the Lenders as follows:

     

    6.1.1           Organization
      and Qualification; Power and Authority; Compliance With Laws; Title to
      Properties; Event of Default.  The Borrower and each of its
      Subsidiaries (i) is a corporation, partnership or limited liability company
      duly
      organized, validly existing and in good standing under the laws of its
      jurisdiction of organization, (ii) has the lawful power to own or lease its
      properties and to engage in the business it presently conducts or proposes
      to
      conduct, (iii) is duly licensed or qualified and in good standing in each
      jurisdiction listed on Schedule 6.1.1 and in all other
      jurisdictions where failure to do so could reasonably be expected to result
      in a
      Material Adverse Change, (iv) has full power to enter into, execute, deliver
      and
      carry out this Agreement and the other Loan Documents to which it is a party,
      to
      incur the Indebtedness contemplated by the Loan Documents to which it is a
      party
      and to perform its Obligations under the Loan Documents to which it is a party,
      and all such actions have been duly authorized by all necessary proceedings
      on
      its part, (v) is in compliance in all material respects with all applicable
      Laws
      (other than Environmental Laws which are specifically addressed in
      Section 6.1.14 [Environmental Matters]) in all jurisdictions in which any
      Loan Party or Subsidiary of any Loan Party is presently doing business except
      where the failure to do so would not constitute a Material Adverse Change,
      and
      (vi) has good and marketable title to or valid leasehold interest in all
      properties, assets and other rights which it purports to own or lease or which
      are reflected as owned or leased on its books and records, free and clear of
      all
      Liens and encumbrances except Permitted Liens.  No Event of Default or
      Potential Default exists or is continuing.  GPE owns, directly or
      indirectly, over ninety-nine percent (99%) of the outstanding Equity Interests
      of the Borrower.

     

    6.1.2           Subsidiaries
      and Owners; Investment Companies.  Schedule 6.1.2
      states (i) the name of each of the Borrower's Subsidiaries, its jurisdiction
      of
      organization and the amount, percentage and type of equity interests in such
      Subsidiary (the "Subsidiary Equity Interests"), (ii) the name of each holder
      of
      an equity interest in the Borrower, the amount, percentage and type of such
      equity interest (the "Borrower Equity Interests"), and (iii) any
      options, warrants or other rights outstanding to purchase
      any such equity interests referred to in clause (i) or (iii) (collectively
      the
      "Equity Interests").  The Borrower and each Subsidiary of the Borrower
      has good and marketable title to all of the Subsidiary Equity Interests it
      purports to own, free and clear in each case of any Lien and all such Subsidiary
      Equity Interests been validly issued, fully paid and
      nonassessable.  Neither the Borrower nor any of its Subsidiaries is an
      "investment company" registered or required to be registered under the
      Investment Company Act of 1940 or under the "control" of an "investment company"
      as such terms are defined in the Investment Company Act of 1940 and shall not
      become such an "investment company" or under such "control."

     

    6.1.3           Validity
      and Binding Effect.  This Agreement and each of the other Loan
      Documents (i) has been duly and validly executed and delivered by the Borrower
      and each of its Subsidiaries, to the extent any such Subsidiary is a party
      hereto or thereto, and (ii) constitutes, or will constitute, legal, valid and
      binding obligations of the Borrower and each of its Subsidiaries which is or
      will be a party thereto, enforceable against such Borrower and Subsidiaries
      in
      accordance with its terms.

     

    6.1.4           No
      Conflict; Material Agreements; Consents.  Neither the execution
      and delivery of this Agreement or the other Loan Documents by the Borrower
      or
      any of its Subsidiaries, to the extent any such Subsidiary is a party hereto
      or
      thereto, nor the consummation of the transactions herein or therein contemplated
      or compliance with the terms and provisions hereof or thereof by any of them
      will

     

    

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    conflict
      with, constitute a default under or result in any breach of (i) the terms
      and conditions of the certificate of incorporation, bylaws, certificate of
      limited partnership, partnership agreement, certificate of formation, limited
      liability company agreement or other organizational documents of the Borrower
      or
      any of its Subsidiaries, (ii) any Law or order, writ, judgment, injunction
      or decree to which the Borrower or any of its Subsidiaries is a party or by
      which the Borrower or any of its Subsidiaries is bound or to which it is
      subject, or result in the creation or enforcement of any Lien, charge or
      encumbrance whatsoever upon any property (now or hereafter acquired) of the
      Borrower or any of its Subsidiaries (other than Liens granted under the Loan
      Documents) or (iii) any instrument, indenture, loan agreement, mortgage, deed
      of
      trust or other material agreement, to the extent that the same could reasonably
      be expected to result in a Material Adverse Change.  There is no
      default under such material agreement (referred to above) and neither the
      Borrower nor its Subsidiaries are bound by any contractual obligation, or
      subject to any restriction in any organization document, or any requirement
      of
      Law which could result in a Material Adverse Change.  No consent,
      approval, exemption, order or authorization of, or a registration or filing
      with, any Official Body or any other Person is required by any Law or any
      agreement in connection with the execution, delivery and carrying out of this
      Agreement and the other Loan Documents.

     

    6.1.5           Litigation.  Schedule 6.1.5
      to this Agreement lists all pending litigation involving individual claims
      against the Borrower of more than $1,000,000.00.  There are no
      actions, suits, proceedings or investigations pending or, to the knowledge
      of
      the Borrower or any of its Subsidiaries, threatened against such Borrower or
      such Subsidiaries at law or in equity before any Official Body (whether listed
      on Schedule 6.1.5 or otherwise) which individually or in the aggregate may
      result in any Material Adverse Change.  Neither the Borrower nor any
      of its Subsidiaries are in violation of any order, writ, injunction or any
      decree of any Official Body which may result in any Material Adverse
      Change.

     

    6.1.6           Financial
      Statements.

     

    (i)           Historical
      Statements.  The Borrower has delivered to the Administrative
      Agent copies of its audited consolidated year-end financial statements for
      and
      as of the end of the fiscal year ending 2006.  In addition, the
      Borrower has delivered to the Administrative Agent copies of its unaudited
      consolidated interim financial statements for the fiscal year to date and as
      of
      the end of the fiscal quarter ended June 30, 2007 (all such annual and interim
      statements being collectively referred to as the "Statements").  The
      Statements were compiled from the books and records maintained by the Borrower's
      management, are correct and complete and fairly represent the consolidated
      financial condition of the Borrower and its Subsidiaries as of the respective
      dates thereof and the results of operations for the fiscal periods then ended
      and have been prepared in accordance with GAAP consistently applied, subject
      (in
      the case of the interim statements) to normal year-end audit
      adjustments.

     

    (ii)           Accuracy
      of Financial Statements.  Neither the Borrower nor any Subsidiary
      of the Borrower has any material liabilities, contingent or otherwise, or
      forward or long-term commitments that are not disclosed in the Statements or
      in
      the notes thereto, and except as disclosed therein there are no unrealized
      or
      anticipated losses from any commitments of the Borrower or any Subsidiary of
      the
      Borrower which may cause a Material Adverse Change.  Since December
      31, 2006, no Material Adverse Change has occurred.

     

    6.1.7           Margin
      Stock.  Neither the Borrower nor any of its Subsidiaries engages
      or intends to engage principally, or as one of its important activities, in
      the
      business of extending credit for the purpose, immediately, incidentally or
      ultimately, of purchasing or carrying margin stock (within the meaning of
      Regulation U, T or X as promulgated by the Board of Governors of the Federal
      Reserve System).  No part of the proceeds of any Loan has been or will
      be used, immediately, incidentally or ultimately, to purchase or carry any
      margin stock or to extend credit to others for the purpose of purchasing or
      carrying any margin stock or which is inconsistent with the provisions of the
      regulations of the Board of Governors of the Federal Reserve
      System.  Neither the Borrower nor any of its Subsidiaries

     

    

     -37-
      
        

      

    

    

    holds
      or
      intends to hold margin stock in such amounts that more than 25% of the
      reasonable value of the assets of such Borrower or Subsidiary are or will be
      represented by margin stock.

     

    6.1.8           Full
      Disclosure.  Neither this Agreement nor any other Loan Document,
      nor any certificate, statement, agreement or other documents furnished to the
      Administrative Agent or any Lender in connection herewith or therewith, contains
      any untrue statement of a material fact or omits to state a material fact
      necessary in order to make the statements contained herein and therein, in
      light
      of the circumstances under which they were made, not
      misleading.  There is no fact known to the Borrower or any of its
      Subsidiaries which materially adversely affects the business, property, assets,
      financial condition, results of operations or prospects of such Borrower or
      Subsidiary which has not been set forth in this Agreement or in the
      certificates, statements, agreements or other documents furnished in writing
      to
      the Administrative Agent and the Lenders prior to or at the date hereof in
      connection with the transactions contemplated hereby.

     

    6.1.9           Taxes.  All
      federal, state, local and other tax returns required to have been filed with
      respect to the Borrower and each of its Subsidiaries have been filed, and
      payment or adequate provision has been made for the payment of all taxes, fees,
      assessments and other governmental charges which have become due pursuant to
      said returns or to assessments received, except to the extent that such taxes,
      fees, assessments and other charges are being contested in good faith by
      appropriate proceedings diligently conducted and for which such reserves or
      other appropriate provisions, if any, as shall be required by GAAP shall have
      been made.

     

    6.1.10        Patents,
      Trademarks, Copyrights, Licenses, Etc.  The Borrower and each of
      its Subsidiaries owns or possesses all the material patents, trademarks, service
      marks, trade names, copyrights, licenses, registrations, franchises, permits
      and
      rights necessary to own and operate its properties and to carry on its business
      as presently conducted and planned to be conducted by such Borrower or
      Subsidiary, without known or actual conflict with the rights of others, and
      no
      such conflict has been alleged.

     

    6.1.11        Liens
      in the Collateral.  The Liens in the Collateral granted to the
      Administrative Agent for the benefit of the Lenders pursuant to the Patent,
      Trademark and Copyright Security Agreement, the Pledge Agreement, and the
      Security Agreement (collectively, the "Collateral Documents") constitute and
      will continue to constitute first priority perfected Liens.  All
      filing fees and other expenses in connection with the perfection of such Liens
      have been or will be paid by the Borrower.

     

    6.1.12        Insurance.  The
      tangible personalty and real property interests of the Borrower and each of
      its
      Subsidiaries are insured pursuant to policies and other bonds which are valid
      and in full force and effect and which provide adequate coverage from reputable
      and financially sound insurers in amounts sufficient to insure the assets and
      risks of each such Borrower and Subsidiary in accordance with prudent business
      practice in the industry of such Borrower and Subsidiaries.

     

    6.1.13        ERISA
      Compliance. (i) Each Plan is in compliance in all material respects with the
      applicable provisions of ERISA, the Code and other federal or state
      Laws.  Each Plan that is intended to qualify under Section 401(a)
      of the Code has received a favorable determination letter from the IRS or an
      application for such a letter is currently being processed by the IRS with
      respect thereto and, to the best knowledge of Borrower, nothing has occurred
      which would prevent, or cause the loss of, such
      qualification.  Borrower and each ERISA Affiliate have made all
      required contributions to each Plan subject to Section 412 of the Code, and
      no
      application for a funding waiver or an extension of any amortization period
      pursuant to Section 412 of the Code has been made with respect to any
      Plan.

     

    (ii)
       No ERISA Event has occurred or is reasonably expected to occur; (a) no
      Pension Plan has any unfunded pension liability (i.e. excess of benefit
      liabilities over the current value of that Pension Plan's assets, determined
      in
      accordance with the assumptions used for funding the Pension Plan for the
      applicable plan year) that is reasonably likely to result in liability of
      $1,000,000 or more to the Borrower

     

    

     -38-
      
        

      

    

    

    or
      its
      Subsidiaries; (b) neither Borrower nor any ERISA Affiliate has incurred, or
      reasonably expects to incur, any liability under Title IV of ERISA with
      respect to any Pension Plan (other than premiums due and not delinquent under
      Section 4007 of ERISA); (c) neither Borrower nor any ERISA Affiliate has
      incurred, or reasonably expects to incur, any liability (and no event has
      occurred which, with the giving of notice under Section 4219 of ERISA,
      would result in such liability) under Sections 4201 or 4243 of ERISA with
      respect to a Multiemployer Plan; and (d) neither Borrower nor any ERISA
      Affiliate has engaged in a transaction that could be subject to Sections 4069
      or
      4212(c) of ERISA. 

     

    6.1.14        Environmental
      Matters.  The Borrower and each of its Subsidiaries are and, to
      the knowledge of each respective Borrower and Subsidiary are and have been
      in
      material compliance with applicable Environmental Laws except as disclosed
      on
      Schedule 6.1.14; provided that such matters so disclosed could not reasonably
      be
      expected to subject the Borrower to liability in excess of $2,500,000.00 or
      result in a Material Adverse Change.

     

    6.1.15        Solvency.  The
      Borrower and each of its Subsidiaries are Solvent.  After giving
      effect to the transactions contemplated by the Loan Documents and the
      Receivables Purchase Facility, including all Indebtedness incurred thereby,
      the
      Liens granted by the Borrower in connection therewith and the payment of all
      fees related thereto, the Borrower and each of its Subsidiaries will be Solvent,
      determined as of the Closing Date.

     

    6.1.16        Statutory
      Indebtedness Restrictions.  The Borrower and GPE have all
      necessary authorization required for the transactions contemplated by the Loan
      Documents under FPA or any other Law for the execution, delivery and performance
      of the Loan Documents to which the Borrower or GPE is a party do not and will
      not violate FPA or require any registration with, consent or approval of, or
      notice to, or any other action to, with or by any Governmental Authority under
      FPA or any Law, other than such reporting requirements as may be in effect
      from
      time to time under FPA.

     

    6.2           Updates
      to Schedules.  Should any of the information or disclosures
      provided on any of the Schedules attached hereto become outdated or incorrect
      in
      any material respect, the Borrower shall promptly provide the Administrative
      Agent in writing with such revisions or updates to such Schedule as may be
      necessary or appropriate to update or correct same; provided, however, that
      no
      Schedule shall be deemed to have been amended, modified or superseded by any
      such correction or update, nor shall any breach of warranty or representation
      resulting from the inaccuracy or incompleteness of any such Schedule be deemed
      to have been cured thereby, unless and until the Required Lenders, in their
      sole
      and absolute discretion, shall have accepted in writing such revisions or
      updates to such Schedule.

     

    7.           CONDITIONS
      OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

     

    The
      obligation of each Lender to make Loans and of the Issuing Lender to issue
      Letters of Credit hereunder is subject to the performance by the Borrower and
      each of it Subsidiaries of its Obligations to be performed hereunder at or
      prior
      to the making of any such Loans or issuance of such Letters of Credit and to
      the
      satisfaction of the following further conditions:

     

    7.1           First
      Loans and Letters of Credit.

     

    7.1.1           Deliveries.  On
      the Closing Date, the Administrative Agent shall have received each of the
      following in form and substance satisfactory to the Administrative
      Agent:

     

    (i)           A
      certificate of the Borrower signed by an Authorized Officer, dated the Closing
      Date stating that the Borrower and its Subsidiaries are in compliance with
      each
      of their representations, warranties, covenants and conditions hereunder and
      no
      Event of Default or Potential Default exists, no Material Adverse Change has
      occurred since the date of the last audited financial statements of the Borrower
      delivered to the Administrative Agent, and no material adverse litigation
      exists.

     

    

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    (ii)           A
      certificate dated the Closing Date and signed by the Secretary or an Assistant
      Secretary of the Borrower and each of the Loan Parties, certifying as
      appropriate as to: (a) all action taken by each Loan Party in connection with
      this Agreement and the other Loan Documents; (b) the names of the Authorized
      Officers authorized to sign the Loan Documents and their true signatures; and
      (c) copies of its organizational documents as in effect on the Closing Date
      certified by the appropriate state official where such documents are filed
      in a
      state office together with certificates from the appropriate state officials
      as
      to the continued existence and good standing of each Loan Party in each state
      where organized or qualified to do business.

     

    (iii)           This
      Agreement and each of the other Loan Documents signed by an Authorized Officer
      and all appropriate financing statements and appropriate stock powers and
      certificates evidencing the pledged Collateral.

     

    (iv)          A
      written opinion of counsel for the Loan Parties, dated the Closing Date and
      as
      to the matters set forth in Schedule 7.1.1.

     

    (v)           Evidence
      that adequate insurance required to be maintained under this Agreement is in
      full force and effect, with additional insured and lender loss payable special
      endorsements attached thereto in form and substance satisfactory to the
      Administrative Agent and its counsel naming the Administrative Agent as
      additional insured, mortgagee and lender loss payee.

     

    (vi)          A
      duly completed Compliance Certificate as of the last day of the fiscal quarter
      of Borrower most recently ended prior to the Closing Date, signed by an
      Authorized Officer of Borrower;

     

    (vii)         All
      material consents, regulatory approvals and licenses required to effectuate
      the
      transactions contemplated hereby.

     

    (viii)        Evidence
      that the Amended and Restated Agreement dated July 2, 2004 among Borrower and
      PNC Bank and LaSalle Bank National Association, has been terminated, and all
      outstanding obligations thereunder have been paid and all Liens securing such
      obligations have been released;

     

    (ix)          A
      Lien search in acceptable scope and with acceptable results;

     

    (x)           A
      Borrowing Base Certificate prepared as of the Closing Date in substantially
      the
      form of Exhibit 8.3.5, showing total Unused Availability (using current
      amounts, rather than average amounts, for Loans and Letters of Credit
      Outstanding), after giving effect to (i) the Loans to be made on the Closing
      Date, (ii) the Letters of Credit issued and outstanding, and (iii) the
      consummation of the transactions contemplated hereby, of at least
      $25,000,000;

     

    (xi)           A
      duly completed solvency certificate, in form and substance satisfactory to
      the
      Administrative Agent dated as of the Closing Date, signed by an Authorized
      Officer of Borrower;

     

    (xii)          A
      field examination of the Borrower's receivables prepared in connection with
      the
      Receivables Purchase Facility which shall be satisfactory to the Administrative
      Agent, in its sole discretion;

     

    (xiii)         No
      action, proceeding, investigation, regulation or legislation shall have been
      instituted, or, to the knowledge of any Authorized Officer of the Borrower
      and
      any Subsidiary, threatened or proposed before any court, governmental agency
      or
      legislative body to enjoin, restrain or prohibit, or to obtain damages in
      respect of, this Agreement, the other Loan Documents or the consummation of
      the
      transactions contemplated hereby or thereby or which, in the sole
      discretion

     

    

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    of
      the
      Administrative Agent, would make it inadvisable to consummate the transactions
      contemplated by this Agreement or any of the other Loan Documents;

     

    (xiv)         The
      Administrative Agent and the Lenders shall have completed or shall have caused
      to be completed, to their satisfaction in form, scope, substance and in all
      other respects, a due diligence review with respect to the assets, financial
      condition, operations, business and prospects of the Borrower and each of the
      other Loan Parties, including a review, without limitation of the books and
      records of the Borrower and each of the other Loan Parties, the historical
      financial statements and related Form-10-K filed with the Securities and
      Exchange Commission for the fiscal year ended December 31, 2006, the financial
      projections (including income statements) from the Closing Date through the
      three year anniversary of the Closing Date, and all tax, ERISA, employee
      retirement benefit, environmental and the contingent liabilities to which the
      Borrower and any other Loan Party may be subject.

     

    (xv)          an
      executed Company Note (as defined in the Purchase and Sale Agreement) delivered
      from Strategic Receivables to the Borrower pursuant to Section 3.1(b) of the
      Purchase and Sale Agreement; and

     

    (xvi)         such
      other documents in connection with such transactions as the Administrative
      Agent
      or said counsel may reasonably request.

     

    7.1.2           Payment
      of Fees.  The Borrower shall have paid or caused to be paid to the
      Administrative Agent for themselves and for the account of the Lenders to the
      extent not previously paid, all commitment and other fees accrued through the
      Closing Date and the costs and expenses for which the Administrative Agent
      and
      the Lenders are entitled to be reimbursed.

     

    7.2           Each
      Loan or Letter of Credit.  At the time of making any Loans or
      issuing any Letters of Credit and after giving effect to the proposed extensions
      of credit:  the representations, warranties and covenants of the
      Borrower and its Subsidiaries shall then be true and no Event of Default or
      Potential Default shall have occurred and be continuing; the making of the
      Loans
      or issuance of such Letter of Credit shall not contravene any Law applicable
      to
      the Borrower or any of its Subsidiary or any of the Lenders; and the Borrower
      shall have delivered to the Administrative Agent a duly executed and completed
      Loan Request or to the Issuing Lender an application for a Letter of Credit,
      as
      the case may be.

     

    8.           COVENANTS

     

    The
      Borrower, on behalf of itself and each of its Subsidiaries, covenants and agrees
      that until Payment in Full, the Borrower and each of its Subsidiaries shall
      comply at all times with the following covenants:

     

    8.1           Affirmative
      Covenants.

     

    8.1.1           Preservation
      of Existence, Etc.  The Borrower and each of its Subsidiaries
      shall maintain its legal existence as a corporation, limited partnership or
      limited liability company and its license or qualification and good standing
      in
      each jurisdiction in which its ownership or lease of property or the nature
      of
      its business makes such license or qualification necessary.

     

    8.1.2           Payment
      of Liabilities, Including Taxes, Etc.  The Borrower and each of
      its Subsidiaries shall duly pay and discharge all material liabilities to which
      it is subject or which are asserted against it, promptly as and when the same
      shall become due and payable, including all
      taxes, assessments and governmental charges upon it or any
      of its properties, assets, income or profits, prior to the date on which
      penalties attach thereto, except to the extent that such liabilities, including
      taxes, assessments or charges, are being contested in good faith and by
      appropriate and lawful proceedings diligently conducted and for which such
      reserve or other appropriate provisions, if any, as shall be required by GAAP
      shall have been made.

     

    

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    8.1.3           Maintenance
      of Insurance.  The Borrower and each of its Subsidiaries shall
      insure its properties and assets against loss or damage by fire and such other
      insurable hazards as such assets are commonly insured (including fire, extended
      coverage, property damage, workers' compensation, public liability and business
      interruption insurance) and against other risks (including errors and omissions)
      in such amounts as similar properties and assets are insured by prudent
      companies in similar circumstances carrying on similar businesses, and with
      reputable and financially sound insurers, including self-insurance to the extent
      customary, all as reasonably determined by the Administrative
      Agent.  The Borrower and each of its Subsidiaries shall comply with
      the covenants and provide the endorsement set forth on Schedule 8.1.3
      relating to property and related insurance policies covering the
      Collateral.

     

    8.1.4           Maintenance
      of Properties and Leases.  The Borrower and each of its
      Subsidiaries shall maintain in good repair, working order and condition
      (ordinary wear and tear excepted) in accordance with the general practice of
      other businesses of similar character and size, all of those properties useful
      or necessary to its business, and from time to time, Borrower and/or such
      Subsidiary shall will make or cause to be made all appropriate repairs, renewals
      or replacements thereof, all as in the reasonable judgment of Borrower may
      be
      necessary so that the business carried on in connection therewith may be
      properly and advantageously conducted; provided, however, that nothing shall
      prevent the Borrower from discontinuing the operation or maintenance of such
      property if such discontinuance is, in the reasonable judgment of the Borrower,
      desirable and not disadvantageous in any material respect to the Administrative
      Agent or any of the Lenders.

     

    8.1.5           Visitation
      Rights.  The Borrower and each of its Subsidiaries shall permit
      any of the officers or authorized employees or representatives of the
      Administrative Agent or any of the Lenders to visit and inspect any of its
      properties and to examine and make excerpts from its books and records and
      discuss its business affairs, finances and accounts with its officers, all
      in
      such detail and at such times and as often as any of the Lenders may reasonably
      request, provided that each Lender shall provide the Borrower and the
      Administrative Agent with reasonable notice prior to any visit or
      inspection.  In the event any Lender desires to conduct an audit of
      the Borrower and each of its Subsidiaries shall, such Lender shall make a
      reasonable effort to conduct such audit contemporaneously with any audit to
      be
      performed by the Administrative Agent; and provided further, absent the
      occurrence of an Event of Default that is continuing, such inspections shall
      only be conducted upon reasonable advance notice and during normal business
      hours.  The Borrower, Administrative Agent and the Lenders agree that
      absent the occurrence of an Event of Default that is continuing, the Borrower
      shall be obligated to reimburse the Administrative Agent for costs and expenses
      associated with one inspection each fiscal year.

     

    8.1.6           Keeping
      of Records and Books of Account.  The Borrower and each of its
      Subsidiaries shall maintain and keep proper books of record and account which
      enable the Borrower and its Subsidiaries to issue financial statements in
      accordance with GAAP and as otherwise required by applicable Laws of any
      Official Body having jurisdiction over the Borrower or any Subsidiary of the
      Borrower, and in which full, true and correct entries shall be made in all
      material respects of all its dealings and business and financial
      affairs.

     

    8.1.7           Compliance
      with Laws; Use of Proceeds.  The Borrower and each of its
      Subsidiaries shall comply with all applicable Laws, including all Environmental
      Laws, in all respects; provided that it shall not be deemed to be a violation
      of
      this Section 8.1.7 if any failure to comply with any Law would not result
      in fines, penalties, remediation costs, other similar liabilities or injunctive
      relief which in the aggregate would constitute a Material Adverse
      Change.  The Borrower and each of its Subsidiaries will use the
      Letters of Credit and the proceeds of the Loans only in accordance with Section
      2.8 above and as permitted by applicable Law.

     

    8.1.8           Further
      Assurances.  The Borrower and each of its Subsidiaries (other than
      Strategic Receivables) shall, from time to time, at its expense, faithfully
      preserve and protect the

     

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    Administrative
      Agent's Lien on and Prior Security Interest in the Collateral whether now owned
      or hereafter acquired (other than the Excluded Collateral) as a continuing
      first
      priority perfected Lien, subject only to Permitted Liens, and shall do such
      other acts and things as the Administrative Agent in its sole discretion may
      deem necessary or advisable from time to time in order to preserve, perfect
      and
      protect the Liens granted under the Loan Documents and to exercise and enforce
      its rights and remedies thereunder with respect to the Collateral.

     

    8.1.9           Anti-Terrorism
      Laws. Neither
      the
      Borrower nor any of its Subsidiaries is or shall be (i)
a
      Person with whom any
      Lender is restricted from doing business under Executive Order No. 13224
      or any other Anti-Terrorism Law, (ii) engaged in any business involved in making
      or receiving any contribution of funds, goods or services to or for the benefit
      of such a Person or in any transaction that evades or avoids, or has the purpose
      of evading or avoiding, the prohibitions set forth in any Anti-Terrorism Law,
      or
      (iii) otherwise in violation of any Anti-Terrorism Law.  The Borrower
      and each of its Subsidiaries shall provide to the Lenders
      any
      certifications or information that a Lender requests to confirm compliance
      by
the Borrower and each of its Subsidiaries with Anti-Terrorism
      Laws.

     

    8.2           Negative
      Covenants.

     

    8.2.1           Indebtedness.  The
      Borrower and each of its Subsidiaries shall not at any time create, incur,
      assume or suffer to exist any Indebtedness, except:

     

    (i)           Indebtedness
      under the Loan Documents;

     

    (ii)          Existing
      Indebtedness as set forth on Schedule 8.2.1 (including any
      extensions or renewals thereof; provided there is no increase in the
      amount thereof or other significant change in the terms thereof unless otherwise
      specified on Schedule 8.2.1;

     

    (iii)         Indebtedness
      secured by Purchase Money Security Interests not exceeding
      $5,000,000;

     

    (iv)         Indebtedness
      of a Loan Party to another Loan Party which is subordinated pursuant to the
      Intercompany Subordination Agreement or Subordination Agreement;

     

    (v)          the
      Subordinated Debt;

     

    (vi)         Indebtedness
      in respect of obligations secured by  Permitted Liens described in
      clauses (xii) and (xiii) therein;

     

    (vii)        Indebtedness
      in respect of Hedging Obligations permitted under Section 8.2.16;

     

    (viii)       other
      future unsecured Indebtedness in an aggregate principal amount not to exceed
      $20,000,000.00;

     

    (ix)          Any
      Permitted Refinancing Indebtedness;

     

    (x)           Indebtedness
      in connection with the Receivables Purchase Facility; and

     

    (xi)          Any
      (i) Lender Provided Interest Rate Hedge, (ii) other Interest Rate Hedge approved
      by the Administrative Agent or (iii) Indebtedness under any Other Lender
      Provided Financial Service Product.

     

     

                    8.2.2         
      Liens.  The Borrower and each of its Subsidiaries shall not, at
      any time create, incur, assume or suffer to exist any Lien on any of its
      property or assets, tangible or intangible, now owned or hereafter acquired,
      or
      agree or become liable to do so, except Permitted
      Liens.

     

     

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    8.2.3           Guaranties.  The
      Borrower and each of its Subsidiaries shall not, at any time, directly or
      indirectly, become or be liable in respect of any Guaranty, or assume,
      guarantee, become surety for, endorse or otherwise agree, become or remain
      directly or contingently liable upon or with respect to any obligation or
      liability of any other Person, except for (i) Guaranties of Indebtedness of
      the
      Borrower and each of its Subsidiaries permitted hereunder; (ii) obligations,
      warranties, and indemnities, not relating to Indebtedness of any Person, which
      have been or are undertaken or made in the ordinary course of business and
      not
      for the benefit of or in favor of an Affiliate of the Borrower or such
      Subsidiary; (iii) Guaranties with respect to appeal and performance bonds
      obtained by the Borrower or any of its Subsidiaries in the ordinary course
      of
      business; and (iv) Guaranties with respect to surety bonds issued for the
      benefit of the Borrower in an amount not to exceed $250,000,000.00.

     

    8.2.4           Loans
      and Investments.  The Borrower and each of its Subsidiaries shall
      not, at any time, make or suffer to remain outstanding any loan or advance
      to,
      or purchase, acquire or own any stock, bonds, notes or securities of, or any
      partnership interest (whether general or limited) or limited liability company
      interest in, or any other investment or interest in, or
      make any capital contribution to, any other Person, or agree, become or remain
      liable to do any of the foregoing, except:

     

    (i)           trade
      credit extended on usual and customary terms in the ordinary course of
      business;

     

    (ii)          advances
      to employees to meet expenses incurred by such employees in the ordinary course
      of business;

     

    (iii)         investments
      in Cash Equivalents;

     

    (iv)         loans,
      advances and investments in other Loan Parties (other than GPE or its
      Subsidiaries);

     

    (v)          Permitted
      Existing Investments in an amount not greater than the amount thereof on the
      Closing Date;

     

    (vi)         Investments
      in trade receivables or received in connection with the bankruptcy or
      reorganization of suppliers and customers and in settlement of delinquent
      obligations of, and other disputes with, customers and suppliers arising in
      the
      ordinary course of business;

     

    (vii)        loans,
      advances and investments in an amount not to exceed $20,000,000 in an aggregate
      amount at any time outstanding consisting of loans to GPE or its
      Subsidiaries;

     

    (viii)       any
      sale of receivables to Strategic Receivables pursuant to the Receivables
      Purchase Facility or the Borrower's acceptance of notes from Strategic
      Receivables  pursuant to the Receivables Purchase Facility;
      and

     

    (ix)          Investments
      in addition to those referred to elsewhere in this Section 8.2.4 in an
      amount not to exceed $2,500,000.00 in the aggregate at any time
      outstanding.

     

    8.2.5           Dividends
      and Related Distributions.  The Borrower and each of its
      Subsidiaries shall not make or pay, or agree to become or remain liable to
      make
      or pay, any Distribution of any nature (whether in cash, property, securities
      or
      otherwise) on account of or in respect of its shares of capital stock,
      partnership interests or limited liability company interests on account of
      the
      purchase, redemption, retirement or acquisition of its shares of capital stock
      (or warrants, options or rights therefor), partnership interests or limited
      liability company interests, except (a) Distributions pursuant to
      Section 8.2.13 [Issuance of Stock] and (b) Distributions if, after giving
      effect to each Distribution, the Borrower and each of its Subsidiaries are
      in
      pro forma compliance with the covenants contained in Sections8.2.18 [Minimum
      Fixed Charge Coverage

     

    -44-

     
      
        

      

    

     

    Ratio]
      and 8.2.19 [Minimum EBITDA]; provided, however, nothing
      contained in this section shall prohibit Strategic Receivables from making
      distributions of cash to the Borrower.

     

    8.2.6           Restricted
      Payments.  The Borrower and each of its Subsidiaries shall not
      declare or make any Restricted Payment; provided, however, nothing
      contained in this section shall prohibit Strategic Receivables from (i) making
      payments on notes in favor of the Borrower pursuant to the Receivables Purchase
      Facility or (ii) paying any servicing fee to the Borrower in connection with
      the
      Receivables Purchase Facility.

     

    8.2.7           Conduct
      of Business; Subsidiaries.

     

    (i)           Neither
      the Borrower nor any of its Subsidiaries shall engage in any business other
      than
      the businesses engaged in by the Borrower on the Closing Date and any business
      or activities which are substantially similar, related or incidental
      thereto.

     

    (ii)           Neither
      the Borrower nor its Subsidiaries shall create, acquire or capitalize any
      Subsidiary (a "New Subsidiary") after the date hereof pursuant to any
      transaction unless such transaction is permitted by or not otherwise prohibited
      by this Agreement and upon the creation or acquisition of each New Subsidiary,
      the Borrower or its Subsidiaries shall promptly deliver, and shall cause each
      New Subsidiary to promptly deliver to the Administrative Agent the documents,
      instruments and agreements required pursuant to Section 8.2.10 [Subsidiaries,
      Partnerships and Joint Ventures] for a New Subsidiary; provided, however,
      Borrower and its Subsidiaries shall be permitted to capitalize Strategic
      Receivables;

     

    (iii)           Neither
      the Borrower nor any of its Subsidiaries shall make any Acquisitions other
      than
      Acquisitions meeting all of the following requirements (each such Acquisition
      constituting a “Permitted Acquisition”):

     

    (a)         no
      Event of Default or Potential Default shall have occurred and be continuing
      or
      would result from such Acquisition or the incurrence of any Indebtedness in
      connection therewith;

     

    (b)         the
      Acquisition shall be consummated on a non-hostile basis and, in the case of
      an
      Acquisition of Equity Interests of an entity, such Acquisition shall be of
      not
      less than the amount of the Equity Interests required to give the Borrower
      direct or indirect voting control of such entity;

     

    (c)         the
      businesses being acquired shall be substantially similar to the businesses
      or
      activities engaged in by the Borrower on the Closing Date;

     

    (d)         the
      aggregate purchase price (including assumed liabilities) in connection with
      all
      such transactions during the term of this Agreement shall not exceed
      $25,000,000.00;

     

    (e)         The
      Borrower and each of its Subsidiaries shall be, after giving effect to such
      Acquisition, in pro forma compliance with the covenants contained in Sections
      8.2.18 [Minimum Fixed Charge Coverage Ratio] and 8.2.19 [Minimum
      EBITDA] (including in such computation Indebtedness incurred in connection
      with
      such Acquisition and including income earned or expenses incurred by the Person,
      business or assets to be acquired prior to the date of such Acquisition);
      and

     

    (f)         The
      Borrower shall have, after giving effect to such Acquisition, Unused
      Availability greater than or equal to $50,000,000.

     

    

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    8.2.8           Dispositions
      of Assets or Subsidiaries.

     

      The
      Borrower and each of its Subsidiaries shall not sell, convey, assign, lease,
      abandon or otherwise transfer or dispose of, voluntarily or involuntarily,
      any
      of its properties or assets, tangible or intangible (including sale, assignment,
      discount or other disposition of accounts, contract rights, chattel paper,
      equipment or general intangibles with or without recourse or of capital stock,
      shares of beneficial interest, partnership interests or limited liability
      company interests of a Subsidiary of such Borrower or Subsidiary),
      except:

     

    (i)          transactions
      involving the sale of inventory in the ordinary course of business;

     

    (ii)         any
      sale, transfer or lease of assets in the ordinary course of business which
      are
      no longer necessary or required in the conduct of the Borrower's or such
      Subsidiary's business;

     

    (iii)        any
      sale, contribution, transfer or lease of assets by any wholly owned Subsidiary
      of the Borrower or its Subsidiaries to one another;

     

    (iv)        any
      sale, purported sale, contribution, assignment, conveyance or transfer of assets
      contemplated by the Receivables Purchase Facility;

     

    (v)         any
      sale, transfer or lease of assets in the ordinary course of business which
      are
      replaced by substitute assets acquired or leased within the parameters of
      Section 8.2.15 [Capital Expenditures and Leases]; provided such
      substitute assets are subject to the Lenders' Prior Security Interest;

     

    (vi)        any
      sale, transfer or lease of assets, other than those specifically excepted
      pursuant to clauses (i) through (iv) above, which is approved by the Required
      Lenders so long as the after-tax proceeds (as reasonably estimated by the
      Borrower) are applied as a mandatory prepayment of the Loans in accordance
      with
      the provisions of Section 5.7.1 [Sale of Assets] above; or

     

    (vii)       dividends
      and related distributions permitted pursuant to Section 8.2.5 [Dividends and
      Related Distributions].

     

    8.2.9           Affiliate
      Transactions.  The Borrower and each of its Subsidiaries shall not
      enter into or carry out any transaction (including purchasing property or
      services from or selling property or services to any Affiliate of any Borrower
      or such Subsidiary or other Person) unless such transaction is not otherwise
      prohibited by this Agreement, is entered into in the ordinary course of business
      upon fair and reasonable arm's-length terms and conditions which are fully
      disclosed to the Administrative Agent and is in accordance with all applicable
      Law.

     

    8.2.10         Subsidiaries,
      Partnerships and Joint Ventures.  The Borrower and each of its
      Subsidiaries shall not own or create directly or indirectly any Subsidiaries
      other than (i) any Subsidiary other than Strategic Receivables which has joined
      this Agreement as Guarantor on the Closing Date; and (ii) any Subsidiary formed
      after the Closing Date which joins this Agreement as a Guarantor by delivering
      to the Administrative Agent (A) a signed Guarantor Joinder;
      (B) documents in the forms described in Section 7.1 [First Loans]
      modified as appropriate; and (C) documents necessary to grant and perfect
      Prior Security Interests to the Administrative Agent for the benefit of the
      Lenders in the equity interests of, and Collateral held by, such
      Subsidiary.  The Borrower and each of its Subsidiaries shall not
      become or agree to become a party to a Joint Venture.

     

    8.2.11         Continuation
      of or Change in Business.  The Borrower and each of its
      Subsidiaries shall not engage in any business other than substantially as
      conducted and operated by the Borrower or such Subsidiary during the present
      fiscal year, and such Borrower or Subsidiary shall not
      permit any material change in such business.

     

    

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                    8.2.12        
      Fiscal Year.  The Borrower and each of its Subsidiaries shall
      not change its fiscal year from the twelve-month period beginning January 1
      and
      ending December 31.

     

    8.2.13         Issuance
      of Stock.  The Borrower and each of its Subsidiaries shall not
      issue any additional shares of its capital stock or any options, warrants or
      other rights in respect thereof.

     

    8.2.14         Changes
      in Organizational Documents.  The Borrower and each of its
      Subsidiaries (other than Strategic Receivables) shall not amend in any respect
      its certificate of incorporation (including any provisions or resolutions
      relating to capital stock), by-laws, certificate of limited partnership,
      partnership agreement, certificate of formation, limited liability company
      agreement or other organizational documents without providing at least thirty
      (30) calendar days' prior written notice to the Administrative Agent and the
      Lenders and, in the event such change would be adverse to the Lenders as
      determined by the Administrative Agent in its sole discretion, obtaining the
      prior written consent of the Required Lenders.

     

    8.2.15         Intentionally
      Omitted.

     

    8.2.16         Hedging
      Obligations.  The Borrower and each of its Subsidiaries (other
      than Strategic Receivables) shall not enter into any interest rate, commodity
      or
      foreign currency exchange, swap, collar, cap or similar agreements evidencing
      Hedging Obligations, other than interest rate, foreign currency or commodity
      exchange, swap, collar, cap or similar agreements entered into by the Borrower
      pursuant to which the Borrower has hedged its actual interest rate, foreign
      currency or commodity exposure.

     

    8.2.17         Subordinated
      Debt.  The Borrower shall not amend, supplement or modify the
      terms of the Subordinated Debt or make any payment required as a result of
      any
      amendment or change thereto without the prior written consent of the
      Administrative Agent and the Required Lenders.  Except as permitted in
      the Subordination Agreement as in effect on the date hereof, the Borrower shall
      not redeem, purchase, prepay (by setoff or otherwise), defease or repay any
      principal of, premium, if any, or other amount payable in respect of the
      Subordinated Debt.

     

    8.2.18          Minimum
      Fixed Charge Coverage Ratio.  The Borrower and each of its
      Subsidiaries shall maintain a ratio ("Fixed Charge Coverage Ratio") of (i)
      the
      sum of the amounts of (a) EBITDA minus (b) capital expenditures to (ii) the
      sum
      of the amounts of (a) Interest Expense to the extent paid in cash plus (b)
      scheduled cash payments of the principal portion of all Indebtedness for
      borrowed money of the Borrower made during such period plus (c) cash income
      taxes paid by the Borrower and its consolidated Subsidiaries during such period
      plus (d) Distributions paid during such period less (e) the amount of GPE Cash
      Infusions during such period, of at least 1.05 to 1.00 calculated as of the
      end
      of each fiscal quarter for the four fiscal quarters then ended, commencing
      with
      the fiscal quarter ending December 31, 2007, and for each fiscal year thereafter
      until the Maturity Date.

     

    8.2.19         Minimum
      EBITDA.  The Borrower and each of its Subsidiaries shall not at
      any time permit EBITDA of the Borrower and each of its Subsidiaries, calculated
      as of the end of each fiscal quarter for the four fiscal quarters then ended,
      to
      be less than the applicable amount set for the applicable fiscal quarter
      below:

     

    
      	
              Fiscal
                Quarter

            	
              Amount

            
	
              July
                1, 2007 through March 31, 2008

            	
              $15,000,000

            
	
              April
                1, 2008 through September 30, 2008

            	
              $17,500,000

            
	
              October
                1, 2008 through March 31, 2009

            	
              $20,000,000

            
	
              April
                1, 2009 and each fiscal quarter thereafter

            	
              $22,500,000

            

    

    

     

    

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    8.2.20         Wholesale
      Supply Position.  The Borrower and each of its Subsidiaries (other
      than Strategic Receivables) shall employ a business strategy of entering into
      wholesale supply positions to approximately match the expected megawatt hour
      utilization of its fixed price retail supply contracts so that the net long
      or
      short position created by the Borrower's hedging activities shall not result
      in
      its book being more than 10% long or short megawatt hours in the
      aggregate.

     

    8.2.21         Maximum
      Facility Usage.  The Borrower and each of its Subsidiaries shall
      not at any time permit the Facility Usage to exceed the Borrowing
      Base.

     

    8.3           Reporting
      Requirements.  The Borrower will furnish or cause to be furnished
      to the Administrative Agent and each of the Lenders.

     

    8.3.1           Borrowing
      Base Certificates; Schedules of Accounts; Hedging Report; Securitization
      Information.  Monthly, within twenty-one (21) calendar days after
      the end of each calendar month and upon demand by the Administrative Agent,
      (i)
      a Borrowing Base Certificate in the form of Exhibit 8.3.1 hereto,
      appropriately completed, executed and delivered by an Authorized Officer, (ii)
      a
      hedging report, in form and substance satisfactory to the Administrative Agent
      detailing all of the Borrower's and each of its Subsidiaries' Hedging
      Obligations and on the wholesale supply position referenced in
      Section 8.2.20 [Wholesale Supply Position], (iii) copies of any information
      submitted to the Administrator of the Receivable Purchase Agreement, including
      the Information Package (as such term is defined in the Receivables Purchase
      Agreement), and (iv) any additional detail that the Administrative Agent may
      request. 

     

    8.3.2           Quarterly
      Financial Statements.  As soon as available and in any event
      within forty-five (45) calendar days after the end of each of the first three
      fiscal quarters in each fiscal year, financial statements of the Borrower,
      consisting of a consolidated balance sheet as of the end of such fiscal quarter
      and related consolidated statements of income, stockholders' equity and cash
      flows for the fiscal quarter then ended and the fiscal year through that date,
      all in reasonable detail and certified (subject to normal year-end audit
      adjustments) by the Chief Executive Officer, President or Chief Financial
      Officer of the Borrower as having been prepared in accordance with GAAP,
      consistently applied, and setting forth in comparative form the respective
      financial statements for the corresponding date and period in the previous
      fiscal year.

     

    8.3.3           Annual
      Financial Statements.  As soon as available and in any event
      within ninety (90) days after the end of each fiscal year of the Borrower,
      financial statements of the Borrower consisting of a consolidated balance sheet
      as of the end of such fiscal year, and related consolidated statements of
      income, stockholders' equity and cash flows for the fiscal year then ended,
      all
      in reasonable detail and setting forth in comparative form the financial
      statements as of the end of and for the preceding fiscal year, and certified
      by
      independent certified public accountants of nationally recognized standing
      satisfactory to the Administrative Agent.  The certificate or report
      of accountants shall be free of qualifications (other than any consistency
      qualification that may result from a change in the method used to prepare the
      financial statements as to which such accountants concur) and shall not indicate
      the occurrence or existence of any event, condition or contingency which would
      materially impair the prospect of payment or performance of any covenant,
      agreement or duty of Borrower or any of its Subsidiaries under any of the Loan
      Documents.  The Borrower shall deliver with such financial statements
      and certification by their accountants a letter of such accountants to the
      Administrative Agent and the Lenders substantially to the effect that, based
      upon their ordinary and customary examination of the affairs of the Borrower,
      performed in connection with the preparation of such consolidated financial
      statements, and in accordance with GAAP, they are not aware of the existence
      of
      any condition or event which constitutes an Event of Default or Potential
      Default or, if they are aware of such condition or event, stating the nature
      thereof.

     

    

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    8.3.4           Certificate
      of the Borrower.  Concurrently with the financial statements of
      the Borrower furnished to the Administrative Agent and to the Lenders pursuant
      to Sections 8.3.2 [Quarterly Financial Statements] and 8.3.3 [Annual
      Financial Statements], a certificate (each a "Compliance Certificate") of the
      Borrower signed by the Chief Executive Officer, President or Chief Financial
      Officer of the Borrower in the form of Exhibit 8.3.4. including, without
      limitation, schedules detailing Distributions and compliance with the financial
      covenants.

     

    8.3.5           Notices

     

    8.3.5.1     Default.  Promptly
      after any officer of the Borrower or any of its Subsidiaries has learned of
      the
      occurrence of an Event of Default or Potential Default, a certificate signed
      by
      an Authorized Officer setting forth the details of such Event of Default or
      Potential Default and the action which such Loan Party proposes to take with
      respect thereto.

     

    8.3.5.2     Litigation.  Promptly
      after the commencement thereof, notice of all actions, suits, proceedings or
      investigations before or by any Official Body or any other Person against
      Borrower or any of its Subsidiaries which relate to the Collateral, involve
      a
      claim or series of claims in excess of $2,500,000 or which if adversely
      determined would constitute a Material Adverse Change.

     

    8.3.5.3     Organizational
      Documents.  Within the time limits set forth in
      Section 8.2.14 [Changes in Organizational Documents], any amendment to the
      organizational documents of any Loan Party.

     

    8.3.5.4     Erroneous
      Financial Information.  Immediately in the event that the Borrower
      or its accountants conclude or advise that any previously issued financial
      statement, audit report or interim review should no longer be relied upon or
      that disclosure should be made or action should be taken to prevent future
      reliance.

     

    8.3.5.5     ERISA
      Event.  Immediately upon the occurrence of any ERISA
      Event.

     

    8.3.5.6     Business
      Plans; Financial Projections.  As soon as practicable and in any
      event not later than thirty (30) days after the beginning of each fiscal year,
      a
      copy of the business plan and forecast (including a projected balance sheet,
      income statement and a statement of cash flow) of the Borrower and its
      Subsidiaries for the next succeeding fiscal year prepared in such detail as
      shall be reasonably satisfactory to the Administrative Agent.

     

    8.3.5.7     Other
      Reports. Promptly upon their becoming available to the
      Borrower:

     

    (i)       Management
      Letters.  Any reports, including management letters submitted to
      the Borrower by independent accountants in connection with any annual, interim
      or special audit, if any,

     

    (ii)      SEC
      Reports; Shareholder Communications.  Reports, including Forms
      10-K, 10-Q and 8-K, registration statements and prospectuses and other
      shareholder communications, filed by the Borrower with the Securities and
      Exchange Commission, if any,

     

    (iii)     Other
      Indebtedness.  Deliver to the Administrative Agent (i) a copy
      of each regular report, notice or communication regarding potential or actual
      defaults (including any accompanying officer’s certificate) delivered by or on
      behalf of the Borrower to the holders of non-contingent Indebtedness pursuant
      to
      the terms of the agreements governing such non-contingent Indebtedness, such
      delivery to be made at the same time and by the same means as such notice or
      other communication is delivered to such holders, and (ii) a copy of each
      notice or other communication received by the Borrower from the holders of
      non-contingent Indebtedness pursuant to

     

    

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    the
      terms
      of such non-contingent Indebtedness, such delivery to be made promptly after
      such notice or other communication is received by the Borrower,

     

    (iv)     Other
      Information.  Such other reports and information as any of the
      Lenders may from time to time reasonably request.

     

    9.           DEFAULT

     

    9.1           Events
      of Default.  An Event of Default shall mean the occurrence or
      existence of any one or more of the following events or conditions (whatever
      the
      reason therefor and whether voluntary, involuntary or effected by operation
      of
      Law):

     

    9.1.1           Payments
      Under Loan Documents.  The Borrower shall fail to pay any
      principal of any Loan (including scheduled installments, mandatory prepayments
      or the payment due at maturity), Reimbursement Obligation or Letter of Credit
      or
      Obligation or any interest on any Loan, Reimbursement Obligation or Letter
      of
      Credit Obligation or any other amount owing hereunder or under the other Loan
      Documents within one (1) day of the date on which such principal, interest
      or
      other amount becomes due in accordance with the terms hereof or
      thereof;

     

    9.1.2           Breach
      of Warranty.  Any representation or warranty made at any time by
      any of the Loan Parties herein or by any of the Loan Parties in any other Loan
      Document, or in any certificate, other instrument or statement furnished
      pursuant to the provisions hereof or thereof, shall prove to have been false
      or
      misleading in any material respect as of the time it was made or
      furnished;

     

    9.1.3           Breach
      of Negative Covenants; Borrowing Base Exceeded or Visitation
      Rights.  The Borrower or any of its Subsidiaries shall default in
      the observance or performance of any covenant contained in Section 5.7.2
      [Borrowing Base Exceeded], Section 8.1.5 [Visitation Rights] or
      Section 8.2 [Negative Covenants] other than Section 8.2.18 (which is
      specifically addressed in Section 9.1.11 [Breach of Fixed Charge Coverage Ratio]
      below);

     

    9.1.4           Breach
      of Reporting Requirement.  The Borrower shall default in the
      observance or performance of any covenant contained in Section 8.3.1[Reporting
      Requirements] and such default shall continue unremedied for a period of ten
      (10) Business Days;

     

    9.1.5           Breach
      of Other Covenants.  Any of the Loan Parties shall default in the
      observance or performance of any other covenant, condition or provision hereof
      or of any other Loan Document and such default shall continue unremedied for
      a
      period of thirty (30) calendar days;

     

    9.1.6           Defaults
      in Other Agreements or Indebtedness.  A default or event of
      default shall occur at any time under the terms of any other agreement involving
      borrowed money or the extension of credit or any other Indebtedness under which
      (i) the Borrower or any Subsidiary of the Borrower may be obligated as a
      borrower or guarantor in excess of $7,500,000 in the aggregate or (ii) GPE
      may
      be obligated as a borrower or guarantor in excess of $25,000,000 in the
      aggregate, and such breach, default or event of default consists of the failure
      to pay (beyond any period of grace permitted with respect thereto, whether
      waived or not) any Indebtedness when due (whether at stated maturity, by
      acceleration or otherwise) or if such breach or default permits or causes the
      acceleration of any Indebtedness (whether or not such right shall have been
      waived) or the termination of any commitment to lend;

     

    9.1.7           Final
      Judgments or Orders.  Any money judgment(s) (other than a money
      judgment covered by insurance as to which the insurance company has not
      disclaimed or reserved the right to disclaim coverage), writ or warrant of
      attachment, or similar process against the Borrower or any of its Subsidiaries
      or any their respective assets involving in any single case or in the aggregate
      an amount in excess of $7,500,000.00 is or are entered and shall remain
      undischarged, unvacated, unbonded or unstayed for a period of sixty (60) days
      or
      in any event later than fifteen (15) days prior to the date of any proposed
      sale
      thereunder;

     

    

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    9.1.8           Loan
      Document Unenforceable.  Any of the Loan Documents shall cease to
      be legal, valid and binding agreements enforceable against the party executing
      the same or such party's successors and assigns (as permitted under the Loan
      Documents) in accordance with the respective terms thereof or shall in any
      way
      be terminated (except in accordance with its terms) or become or be declared
      ineffective or inoperative or shall in any way be challenged or contested or
      cease to give or provide the respective Liens, security interests, rights,
      titles, interests, remedies, powers or privileges intended to be created
      thereby;

     

    9.1.9           Uninsured
      Losses; Proceedings Against Assets.  There shall occur any
      material uninsured damage to or loss, theft or destruction of any of the
      Collateral in excess of $2,500,000 in the aggregate during the term of this
      Agreement, or the Collateral or the Borrower or any of its Subsidiaries' assets
      are attached, seized, levied upon or subjected to a writ or distress warrant;
      or
      such come within the possession of any receiver, trustee, custodian or assignee
      for the benefit of creditors and the same is not cured within thirty (30) days
      thereafter;

     

                    9.1.10     Events
      Relating to Plans and Benefit Arrangements.  (i) An ERISA Event
      occurs with respect to a Pension Plan or Multiemployer Plan which has resulted
      or could reasonably be expected to result in liability of Borrower under Title
      IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
      amount in excess of $1,000,000, or (ii) Borrower or any ERISA Affiliate fails
      to
      pay when due, after the expiration of any applicable grace period, any
      installment payment with respect to its withdrawal liability under Section
      4201
      of ERISA under a Multiemployer Plan in an aggregate amount in excess of
      $100,000;

     

    9.1.11         Breach
      of Fixed Charge Coverage Ratio.  The Borrower shall default in the
      performance of or compliance with the financial covenant contained in
      Section 8.2.18 [Minimum Fixed Charge Coverage Ratio] (a "Fixed Charge
      Coverage Ratio Covenant Breach"), and such default is not cured pursuant to
      the
      procedure set forth below within fifteen (15) days after the determination
      of
      such Fixed Charge Coverage Ratio Covenant Breach.  In the event of a
      Fixed Charge Coverage Ratio Covenant Breach and so long as (i) no other
      Potential Default or Event of Default has occurred and is continuing, and (ii)
      no GPE Cross Default has occurred and is continuing, GPE may within fifteen
      (15)
      days of the determination of such breach, cure the Fixed Charge Coverage Ratio
      Covenant Breach through a GPE Cash Infusion or GPE Guarantee Increase, or
      combination thereof, in an amount equal to the amount required to achieve
      compliance with the Fixed Charge Coverage Ratio, such amount to be determined
      as
      of the last day of the quarter when compliance with the Fixed Charge Coverage
      Ratio was tested; provided that, in no event shall GPE be permitted to make
      a
      GPE Guarantee Increase in excess of $15,000,000 for purposes of this Section
      9.1.11.  In regard to a Fixed Charge Coverage Ratio Covenant Breach,
      the Fixed Charge Coverage Ratio shall be recalculated by adding to EBITDA the
      amount(s) of the applicable GPE Cash Infusion, GPE Guarantee Increase and/or
      the
      amount of the GPE Letter of Credit.  For purposes of this Section
      9.1.11, any increase in EBITDA for the fiscal quarter in which a Fixed Charge
      Coverage Ratio Covenant Breach occurred resulting from such GPE Cash Infusion,
      GPE Guarantee Increase and/or the amount of the GPE Letter of Credit shall
      be
      deemed to modify EBITDA for such fiscal quarter for purposes of calculating
      compliance with the Fixed Charge Coverage Ratio in fiscal quarters following
      the
      fiscal quarter in which such Fixed Charge Coverage Ratio Covenant Breach has
      occurred, but only so long as the full amount of such GPE Cash Infusion, GPE
      Guarantee Increase and/or the amount of the GPE Letter of Credit is maintained
      and is not reduced by means of a Distribution or reduction in the GPE Guarantee
      Increase or GPE Letter of Credit.

     

    9.1.12         Change
      of Control. A Change of Control shall occur;

     

    9.1.13         Loan
      Documents; Failure of Security.  At any time, for any reason, (i)
      any Loan Document as a whole that materially affects the ability of the
      Administrative Agent or any of the Lenders to enforce the Obligations or enforce
      their rights against the Collateral ceases to be in full force and effect or
      any
      of the Borrower’s or any of its Subsidiaries party thereto seeks to repudiate
      its

     

    

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    obligations
      thereunder and the Liens intended to be created thereby are, or any of the
      Borrower or any such Subsidiary seeks to render such Liens, invalid and
      unperfected, or (ii) Liens on Collateral with a fair market value in excess
      of
      $100,000.00 in favor of the Administrative Agent contemplated by the Loan
      Documents shall, at any time, for any reason, be invalidated or otherwise cease
      to be in full force and effect, or such Liens shall not have the perfection
      or
      priority contemplated by this Agreement or the Loan Documents;

     

    9.1.14         Environmental
      Matters.  The Borrower or any of its Subsidiaries shall be the
      subject of any proceeding or investigation pertaining to (i) the release by
      the
      Borrower or any of its Subsidiaries of any contaminant into the environment,
      (ii) the liability of the Borrower arising from the release by any other Person
      of any contaminant into the environment, or (iii) any violation of any
      Environmental Law which by the Borrower or any of its Subsidiaries, which,
      in
      any case, has or could reasonably be expected to subject the Borrower or any
      of
      its Subsidiaries to liability in excess of $1,000,000.00;

     

    9.1.15         Guarantor
      Revocation.(i)Any
      guarantor of the Obligations shall
      terminate or revoke or refuse to perform any of its payment obligations under
      the applicable guarantee agreement or (ii) a GPE Default (as defined in such
      guarantee agreement) shall occur; provided
      that upon the timely issuance of a GPE
      Letter of Credit, any violation of subsection (i) and (ii) of this Section
      shall
      not constitute an Event of Default;

     

    9.1.16         Default
      Under Subordinated Debt.  A default or event of default shall
      occur with respect to the obligations arising under the Subordinated Debt or
      under any instrument or agreement executed in connection therewith and the
      holder(s) thereof shall take any action to accelerate the maturity thereof
      or to
      otherwise collect the amount outstanding with respect to the Subordinated
      Debt;

     

    9.1.17         Default
      under Contractual Obligations.  A default or event of default
      shall occur under (i) any Energy Purchase Contract, to the extent that such
      default could reasonably be expected to result in a Material Adverse Change;
      (ii) the Receivables Purchase Facility; or (iii) any other contractual
      obligation of the Borrower or any of its Subsidiaries where such default or
      event of default could reasonably be expected to have a Material Adverse Change;
      or

     

    9.1.18         Relief
      Proceedings.

     

    (i)  
      A Relief Proceeding shall have been instituted against any Loan Party or
      Subsidiary of the Borrower and such Relief Proceeding shall remain undismissed
      or unstayed and in effect for a period of sixty (60) consecutive days or such
      court shall enter a decree or order granting any of the relief sought in such
      Relief Proceeding, (ii) any Loan Party or Subsidiary of the Borrower institutes,
      or takes any action in furtherance of, a Relief Proceeding, or (iii) any Loan
      Party or any Subsidiary of the Borrower ceases to be Solvent or admits in
      writing its inability to pay its debts as they mature.

     

    9.2           Consequences
      of Event of Default.

     

    9.2.1           Events
      of Default Other Than Bankruptcy, Insolvency or Reorganization
      Proceedings.  If an Event of Default specified under
      Sections 9.1.1 through 9.1.17 shall occur and be continuing, the Lenders
      and the Administrative Agent shall be under no further obligation to make Loans
      and the Issuing Lender shall be under no obligation to issue Letters of Credit
      and the Administrative Agent may, and upon the request of the Required Lenders,
      shall (i) by written notice to the Borrower, declare the unpaid principal
      amount of the Notes then outstanding and all interest accrued thereon, any
      unpaid fees and all other Indebtedness of the Borrower to the Lenders hereunder
      and thereunder to be forthwith due and payable, and the same shall thereupon
      become and be immediately due and payable to the Administrative Agent for the
      benefit of each Lender without presentment, demand, protest or any other notice
      of any kind, all of which are hereby expressly waived, and (ii) require the
      Borrower to, and the Borrower shall thereupon, deposit in a non-interest-bearing
      account with the

     

    

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    Administrative
      Agent, as cash collateral for its Obligations under the Loan Documents, an
      amount equal to the maximum amount currently or at any time thereafter available
      to be drawn on all outstanding Letters of Credit, and the Borrower hereby
      pledges to the Administrative Agent and the Lenders, and grants to the
      Administrative Agent and the Lenders a security interest in, all such cash
      as
      security for such Obligations; and

     

    9.2.2           Bankruptcy,
      Insolvency or Reorganization Proceedings.  If an Event of Default
      specified under Section 9.1.18 [Relief Proceedings] shall occur, the
      Lenders shall be under no further obligations to make Loans hereunder and the
      Issuing Lender shall be under no obligation to issue Letters of Credit and
      the
      unpaid principal amount of the Loans then outstanding and all interest accrued
      thereon, any unpaid fees and all other Indebtedness of the Borrower to the
      Lenders hereunder and thereunder shall be immediately due and payable, without
      presentment, demand, protest or notice of any kind, all of which are hereby
      expressly waived; and

     

    9.2.3           Set-off.  If
      an Event of Default shall have occurred and be continuing, each Lender, the
      Issuing Lender, and each of their respective Affiliates and any participant
      of
      such Lender or Affiliate which has agreed in writing to be bound by the
      provisions of Section 5.3 [Sharing of Payments] is hereby authorized at any
      time and from time to time, to the fullest extent permitted by applicable Law,
      to set off and apply any and all deposits (general or special, time or demand,
      provisional or final, in whatever currency) at any time held and other
      obligations (in whatever currency) at any time owing by such Lender, the Issuing
      Lender or any such Affiliate or participant to or for the credit or the account
      of the Borrower or any of its Subsidiaries against any and all of the
      Obligations of such the Borrower or Subsidiaries now or hereafter existing
      under
      this Agreement or any other Loan Document to such Lender, the Issuing Lender,
      Affiliate or participant, irrespective of whether or not such Lender, Issuing
      Lender, Affiliate or participant shall have made any demand under this Agreement
      or any other Loan Document and although such Obligations of the Borrower or
      such
      Subsidiaries may be contingent or unmatured or are owed to a branch or office
      of
      such Lender or the Issuing Lender different from the branch or office holding
      such deposit or obligated on such Indebtedness.  The rights of each
      Lender, the Issuing Lender and their respective Affiliates and participants
      under this Section are in addition to other rights and remedies (including
      other
      rights of setoff) that such Lender, the Issuing Lender or their respective
      Affiliates and participants may have.  Each Lender and the Issuing
      Lender agrees to notify the Borrower and the Administrative Agent promptly
      after
      any such setoff and application; provided that the failure to give such notice
      shall not affect the validity of such setoff and application; and

     

    9.2.4           Application
      of Proceeds.  From and after the date on which the Administrative
      Agent has taken any action pursuant to this Section 9.2 and until all
      Obligations of the Borrower and its Subsidiaries have been paid in full, any
      and
      all proceeds received by the Administrative Agent from any sale or other
      disposition of the Collateral, or any part thereof, or the exercise of any
      other
      remedy by the Administrative Agent, shall be applied as follows:

     

    (i)         first,
      to reimburse the Administrative Agent and the Lenders for out-of-pocket costs,
      expenses and disbursements, including reasonable attorneys' and paralegals'
      fees
      and legal expenses, incurred by the Administrative Agent or the Lenders in
      connection with realizing on the Collateral or collection of any Obligations
      of
      any of the Borrower and its Subsidiaries under any of the Loan Documents,
      including advances made by the Lenders or any one of them or the Administrative
      Agent for the reasonable maintenance, preservation, protection or enforcement
      of, or realization upon, the Collateral, including advances for taxes,
      insurance, repairs and the like and reasonable expenses incurred to sell or
      otherwise realize on, or prepare for sale or other realization on, any of the
      Collateral;

     

    (ii)        second,
      to the repayment of all Obligations then due and unpaid of the Borrower and
      its
      Subsidiaries to the Lenders or their Affiliates incurred under this Agreement
      or
      any of the other Loan Documents or agreements evidencing Lender Provided
      Financial

     

    

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    Services
      Obligations, whether of principal, interest, fees, expenses or otherwise and
      to
      cash collateralize the Letter of Credit Obligations, in such manner as the
      Administrative Agent may determine in its discretion; and

     

    (iii)       the
      balance, if any, as required by Law.

     

    10.           THE
      ADMINISTRATIVE AGENT

     

    10.1           Appointment
      and Authority.  Each of the Lenders and the Issuing Lender hereby
      irrevocably appoints PNC Bank to act on its behalf as the Administrative Agent
      hereunder and under the other Loan Documents and authorizes the Administrative
      Agent to take such actions on its behalf and to exercise such powers as are
      delegated to the Administrative Agent by the terms hereof or thereof, together
      with such actions and powers as are reasonably incidental
      thereto.  The provisions of this Section 10 are solely for the
      benefit of the Administrative Agent, the Lenders and the Issuing Lender, and
      neither the Borrower nor any other Loan Party shall have rights as a third
      party
      beneficiary of any of such provisions.

     

    10.2           Rights
      as a Lender.  The Person serving as the Administrative Agent
      hereunder shall have the same rights and powers in its capacity as a Lender
      as
      any other Lender and may exercise the same as though it were not the
      Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise
      expressly indicated or unless the context otherwise requires, include the Person
      serving as the Administrative Agent hereunder in its individual
      capacity.  Such Person and its Affiliates may accept deposits from,
      lend money to, act as the financial advisor or in any other advisory capacity
      for and generally engage in any kind of business with the Borrower or any
      Subsidiary or other Affiliate thereof as if such Person were not the
      Administrative Agent hereunder and without any duty to account therefor to
      the
      Lenders.

     

    10.3           Exculpatory
      Provisions.  The Administrative Agent shall not have any duties or
      obligations except those expressly set forth herein and in the other Loan
      Documents.  Without limiting the generality of the foregoing, the
      Administrative Agent:

     

    (a)           shall
      not be subject to any fiduciary or other implied duties, regardless of whether
      a
      Potential Default or Event of Default has occurred and is
      continuing;

     

    (b)           shall
      not have any duty to take any discretionary action or exercise any discretionary
      powers, except discretionary rights and powers expressly contemplated hereby
      or
      by the other Loan Documents that the Administrative Agent is required to
      exercise as directed in writing by the Required Lenders (or such other number
      or
      percentage of the Lenders as shall be expressly provided for herein or in the
      other Loan Documents); provided that the Administrative Agent shall not
      be required to take any action that, in its opinion or the opinion of its
      counsel, may expose the Administrative Agent to liability or that is contrary
      to
      any Loan Document or applicable Law; and

     

    (c)           shall
      not, except as expressly set forth herein and in the other Loan Documents,
      have
      any duty to disclose, and shall not be liable for the failure to disclose,
      any
      information relating to the Borrower or any of its Affiliates that is
      communicated to or obtained by the Person serving as the Administrative Agent
      or
      any of its Affiliates in any capacity.

     

    The
      Administrative Agent shall not be liable for any action taken or not taken
      by it
      (i) with the consent or at the request of the Required Lenders (or such
      other number or percentage of the Lenders as shall be necessary, or as the
      Administrative Agent shall believe in good faith shall be necessary, under
      the
      circumstances as provided in Sections 11.1 [Modifications, Amendments or
      Waivers] and 9.2 [Consequences of Event of Default]) or (ii) in the
      absence of its own gross negligence or willful misconduct.  The
      Administrative Agent shall be deemed not to have knowledge of any Potential
      Default or Event of Default unless and until notice describing such Potential
      Default or Event of Default is given to the Administrative Agent by the
      Borrower, a Lender or the Issuing Lender.

     

    

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    The
      Administrative Agent shall not be responsible for or have any duty to ascertain
      or inquire into (i) any statement, warranty or representation made in or in
      connection with this Agreement or any other Loan Document, (ii) the
      contents of any certificate, report or other document delivered hereunder or
      thereunder or in connection herewith or therewith, (iii) the performance or
      observance of any of the covenants, agreements or other terms or conditions
      set
      forth herein or therein or the occurrence of any Potential Default or Event
      of
      Default, (iv) the validity, enforceability, effectiveness or genuineness of
      this Agreement, any other Loan Document or any other agreement, instrument
      or
      document or (v) the satisfaction of any condition set forth in
      Section 7 [Conditions of Lending and Issuance of Letters of Credit] or
      elsewhere herein, other than to confirm receipt of items expressly required
      to
      be delivered to the Administrative Agent.

     

    10.4           Reliance
      by Administrative Agent.  The Administrative Agent shall be
      entitled to rely upon, and shall not incur any liability for relying upon,
      any
      notice, request, certificate, consent, statement, instrument, document or other
      writing (including any electronic message, Internet or intranet website posting
      or other distribution) believed by it to be genuine and to have been signed,
      sent or otherwise authenticated by the proper Person.  The
      Administrative Agent also may rely upon any statement made to it orally or
      by
      telephone and believed by it to have been made by the proper Person, and shall
      not incur any liability for relying thereon.  In determining
      compliance with any condition hereunder to the making of a Loan, or the issuance
      of a Letter of Credit, that by its terms must be fulfilled to the satisfaction
      of a Lender or the Issuing Lender, the Administrative Agent may presume that
      such condition is satisfactory to such Lender or the Issuing Lender unless
      the
      Administrative Agent shall have received notice to the contrary from such Lender
      or the Issuing Lender prior to the making of such Loan or the issuance of such
      Letter of Credit.  The Administrative Agent may consult with legal
      counsel (who may be counsel for the Borrower), independent accountants and
      other
      experts selected by it, and shall not be liable for any action taken or not
      taken by it in accordance with the advice of any such counsel, accountants
      or
      experts.

     

    10.5           Delegation
      of Duties.  The Administrative Agent may perform any and all of
      its duties and exercise its rights and powers hereunder or under any other
      Loan
      Document by or through any one or more sub-agents appointed by the
      Administrative Agent.  The Administrative Agent and any such sub-agent
      may perform any and all of its duties and exercise its rights and powers by
      or
      through their respective Related Parties.  The exculpatory provisions
      of this Section 10 shall apply to any such sub-agent and to the Related
      Parties of the Administrative Agent and any such sub-agent, and shall apply
      to
      their respective activities in connection with the syndication of the credit
      facilities provided for herein as well as activities as Administrative
      Agent.

     

    10.6           Resignation
      of Administrative Agent.  The Administrative Agent may at any time
      give notice of its resignation to the Lenders, the Issuing Lender and the
      Borrower.  Upon receipt of any such notice of resignation, the
      Required Lenders shall have the right, with approval from the Borrower (so
      long
      as no Event of Default has occurred and is continuing), to appoint a successor,
      such approval not to be unreasonably withheld or delayed.  If no such
      successor shall have been so appointed by the Required Lenders and shall have
      accepted such appointment within thirty (30) days after the retiring
      Administrative Agent gives notice of its resignation, then the retiring
      Administrative Agent may on behalf of the Lenders and the Issuing Lender,
      appoint a successor Administrative Agent meeting the qualifications set forth
      above; provided that if the Administrative Agent shall notify the Borrower
      and
      the Lenders that no qualifying Person has accepted such appointment, then such
      resignation shall nonetheless become effective in accordance with such notice
      and (i) the retiring Administrative Agent shall be discharged from its
      duties and obligations hereunder and under the other Loan Documents (except
      that
      in the case of any collateral security held by the Administrative Agent on
      behalf of the Lenders or the Issuing Lender under any of the Loan Documents,
      the
      retiring Administrative Agent shall continue to hold such collateral security
      until such time as a successor Administrative Agent is appointed) and
      (ii) all payments, communications and determinations provided to be made
      by, to or through the Administrative Agent shall

     

    

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    instead
      be made by or to each Lender and the Issuing Lender directly, until such time
      as
      the Required Lenders appoint a successor Administrative Agent as provided for
      above in this Section 10.6.  Upon the acceptance of a successor’s
      appointment as Administrative Agent hereunder, such successor shall succeed
      to
      and become vested with all of the rights, powers, privileges and duties of
      the
      retiring (or retired) Administrative Agent, and the retiring Administrative
      Agent shall be discharged from all of its duties and obligations hereunder
      or
      under the other Loan Documents (if not already discharged therefrom as provided
      above in this Section).  The fees payable by the Borrower to a
      successor Administrative Agent shall be the same as those payable to its
      predecessor unless otherwise agreed between the Borrower and such
      successor.  After the retiring Administrative Agent’s resignation
      hereunder and under the other Loan Documents, the provisions of this
      Section 10 and Section 11.3 [Expenses; Indemnity; Damage Waiver] shall
      continue in effect for the benefit of such retiring Administrative Agent, its
      sub-agents and their respective Related Parties in respect of any actions taken
      or omitted to be taken by any of them while the retiring Administrative Agent
      was acting as Administrative Agent.

     

    If
      PNC
      Bank resigns as Administrative Agent under this Section 10.6, PNC Bank shall
      also resign as an Issuing Lender.  Upon the appointment of a successor
      Administrative Agent hereunder, such successor shall (i) succeed to all of
      the
      rights, powers, privileges and duties of PNC Bank as the retiring Issuing Lender
      and Administrative Agent and PNC Bank shall be discharged from all of its
      respective duties and obligations as Issuing Lender and Administrative Agent
      under the Loan Documents, and (ii) issue letters of credit in substitution
      for
      the Letters of Credit issued by PNC Bank, if any, outstanding at the time of
      such succession or make other arrangement satisfactory to PNC Bank to
      effectively assume the obligations of PNC Bank with respect to such Letters
      of
      Credit.

     

    10.7           Non-Reliance
      on Administrative Agent and Other Lenders.  Each Lender and the
      Issuing Lender acknowledges that it has, independently and without reliance
      upon
      the Administrative Agent or any other Lender or any of their Related Parties
      and
      based on such documents and information as it has deemed appropriate, made
      its
      own credit analysis and decision to enter into this Agreement.  Each
      Lender and the Issuing Lender also acknowledges that it will, independently
      and
      without reliance upon the Administrative Agent or any other Lender or any of
      their Related Parties and based on such documents and information as it shall
      from time to time deem appropriate, continue to make its own decisions in taking
      or not taking action under or based upon this Agreement, any other Loan Document
      or any related agreement or any document furnished hereunder or
      thereunder.

     

    10.8           No
      Other Duties, etc.  Anything herein to the contrary
      notwithstanding, none of the Lenders listed on the cover page hereof shall
      have
      any powers, duties or responsibilities under this Agreement or any of the other
      Loan Documents, except in its capacity, as applicable, as the Administrative
      Agent, a Lender or the Issuing Lender hereunder.

     

    10.9           Administrative
      Agent's Fee.  The Borrower shall pay to the Administrative Agent a
      nonrefundable fee (the "Administrative Agent's Fee") under the terms of a letter
      (the "Administrative Agent’s Letter") between the Borrower and Administrative
      Agent, as amended from time to time.

     

    10.10         Authorization
      to Release Collateral and Guarantors.  The Lenders and Issuing
      Lenders authorize the Administrative Agent to release (i) any Collateral
      consisting of assets or equity interests sold or otherwise disposed of in a
      sale
      or other disposition or transfer permitted under Section 8.2.8 [Disposition
      of Assets or Subsidiaries] and (ii) any Guarantor from its obligations under
      the
      Guaranty Agreement if the ownership interests in such Guarantor are sold or
      otherwise disposed of or transferred to persons other than Loan Parties or
      Subsidiaries of the Loan Parties in a transaction permitted under
      Section 8.2.8 [Disposition of Assets or Subsidiaries].

     

    10.11         No
      Reliance on Administrative Agent's Customer Identification
      Program.  Each Lender acknowledges and agrees that neither such
      Lender, nor any of its Affiliates, participants or assignees, may rely on the
      Administrative Agent to carry out such Lender's, Affiliate's, participant's
      or

     

    

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    assignee's
      customer identification program, or other obligations required or imposed under
      or pursuant to the USA Patriot Act or the regulations thereunder, including
      the
      regulations contained in 31 CFR 103.121 (as hereafter amended or replaced,
      the
      "CIP Regulations"), or any other Anti-Terrorism Law, including any programs
      involving any of the following items relating to or in connection with any
      of
      the Loan Parties, their Affiliates or their agents, the Loan Documents or the
      transactions hereunder or contemplated hereby: (i) any identity verification
      procedures, (ii) any recordkeeping, (iii) comparisons with government lists,
      (iv) customer notices or (v) other procedures required under the CIP Regulations
      or such other Laws.

     

    10.12         Intercreditor
      Agreement.Each of the Lenders hereby authorizes the Administrative Agent to
      enter the Intercreditor Agreement, and agrees to be bound by the provisions
      thereof.  The Administrative Agent shall be authorized to make any
      amendment, waiver, permit, consent or approval with respect to such
      Intercreditor Agreement in its sole discretion (except for any amendment to
      Section 6(b) thereof or otherwise in any manner materially adverse to the
      interest of the Lenders), and any such amendment, waiver, permit, consent or
      approval shall be binding upon each of the Lenders and the Administrative
      Agent.

     

    11.           MISCELLANEOUS

     

    11.1           Modifications,
      Amendments or Waivers.  With the written consent of the Required
      Lenders, the Administrative Agent, acting on behalf of all the Lenders, and
      the
      Borrower, on behalf of the Loan Parties, may from time to time enter into
      written agreements amending or changing any provision of this Agreement or
      any
      other Loan Document or the rights of the Lenders or the Loan Parties hereunder
      or thereunder, or may grant written waivers or consents hereunder or
      thereunder.  Any such agreement, waiver or consent made with such
      written consent shall be effective to bind all the Lenders and the Loan Parties;
      provided, that no such agreement, waiver or consent may be made which
      will:

     

    11.1.1        Increase
      of Commitment.  Increase the amount of the Commitment of any
      Lender hereunder without the consent of such Lender;

     

    11.1.2        Extension
      of Payment; Reduction of Principal Interest or Fees; Modification of Terms
      of
      Payment.  Whether or not any Loans are outstanding, extend the
      Expiration Date or the time for payment of principal or interest of any Loan
      (excluding the due date of any mandatory prepayment of a Loan), the Commitment
      Fee or any other fee payable to any Lender, or reduce the principal amount
      of or
      the rate of interest borne by any Loan or reduce the Commitment Fee or any
      other
      fee payable to any Lender, the Commitment Fee or any other fee payable to any
      Lender, without the consent of each Lender directly affected
      thereby;

     

    11.1.3        Release
      of Collateral or Guarantor.  Release all or substantially all of
      the Collateral or any Guarantor from its Obligations under the Guaranty
      Agreement without the consent of all Complying Lenders, except for (i) sales
      of
      assets permitted by Section 8.2.8 [Disposition of Assets or Subsidiaries]
      or (ii) the release any Guarantor or any Collateral having a value less than
      or
      equal to $5,000,000.00 at any one time; or

     

    11.1.4        Miscellaneous.  Amend
      Section 5.2 [Pro Rata Treatment of Lenders], 10.3 [Exculpatory
      Provisions, Etc.] or 5.3 [Sharing of Payments by Lenders] or the definitions
      Eligible Receivables, Receivables or Securitization Usage contained in Section
      1.1 [Definitions] or this Section 11.1, alter any provision regarding the
      pro rata treatment of the Lenders or requiring all Lenders to authorize the
      taking of any action or reduce any percentage specified in the definition of
      Required Lenders, in each case without the consent of all of the Complying
      Lenders;

     

    provided
      that no agreement, waiver or consent which would modify the interests, rights
      or
      obligations of the Administrative Agent or the Issuing Lender without the
      written consent of such Administrative Agent or Issuing Lender, as applicable,
      and provided, further that, if in connection with any proposed waiver,
      amendment or modification referred to in Sections 11.1.1
      through 11.1.4 above, the consent of the Required Lenders is obtained but
      the consent of one or more of such other Lenders whose consent is

     

    

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    required
      is not obtained (each a "Non-Consenting Lender"), then the Borrower shall have
      the right to replace any such Non-Consenting Lender with one or more replacement
      Lenders pursuant to Section 5.6.2 [Replacement of a Lender].

     

    11.2           No
      Implied Waivers; Cumulative Remedies.  No course of dealing and no
      delay or failure of the Administrative Agent or any Lender in exercising any
      right, power, remedy or privilege under this Agreement or any other Loan
      Document shall affect any other or future exercise thereof or operate as a
      waiver thereof, nor shall any single or partial exercise thereof preclude any
      further exercise thereof or of any other right, power, remedy or
      privilege.  The rights and remedies of the Administrative Agent and
      the Lenders under this Agreement and any other Loan Documents are cumulative
      and
      not exclusive of any rights or remedies which they would otherwise
      have.

     

    11.3           Expenses;
      Indemnity; Damage Waiver.

     

    11.3.1         Costs
      and Expenses.  The Borrower shall pay (i) all reasonable
      out-of-pocket expenses incurred by the Administrative Agent and its Affiliates
      (including the reasonable fees, charges and disbursements of counsel for the
      Administrative Agent), and shall pay all fees and time charges and disbursements
      for attorneys who may be employees of the Administrative Agent, in connection
      with the syndication of the credit facilities provided for herein, the
      preparation, negotiation, execution, delivery and administration of this
      Agreement and the other Loan Documents or any amendments, modifications or
      waivers of the provisions hereof or thereof (whether or not the transactions
      contemplated hereby or thereby shall be consummated), (ii) all reasonable
      out-of-pocket expenses incurred by the Issuing Lender in connection with the
      issuance, amendment, renewal or extension of any Letter of Credit or any demand
      for payment thereunder, (iii) all out-of-pocket expenses incurred by the
      Administrative Agent, any Lender or the Issuing Lender (including the fees,
      charges and disbursements of any counsel for the Administrative Agent, any
      Lender or the Issuing Lender), and shall pay all fees and time charges for
      attorneys who may be employees of the Administrative Agent, any Lender or the
      Issuing Lender, in connection with the enforcement or protection of its rights
      (A) in connection with this Agreement and the other Loan Documents,
      including its rights under this Section, or (B) in connection with the
      Loans made or Letters of Credit issued hereunder, including all such
      out-of-pocket expenses incurred during any workout, restructuring or
      negotiations in respect of such Loans or Letters of Credit, and (iv) all
      reasonable out-of-pocket expenses of the Administrative Agent's regular
      employees and agents engaged periodically to perform audits of the Loan Parties'
      books, records and business properties.

     

    11.3.2         Indemnification
      by the Borrower.  The Borrower shall indemnify the Administrative
      Agent (and any sub-agent thereof), each Lender and the Issuing Lender, and
      each
      Related Party of any of the foregoing Persons (each such Person being called
      an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all
      losses, claims, damages, liabilities and related expenses (including the fees,
      charges and disbursements of any counsel for any Indemnitee), and shall
      indemnify and hold harmless each Indemnitee from all fees and time charges
      and
      disbursements for attorneys who may be employees of any Indemnitee, incurred
      by
      any Indemnitee or asserted against any Indemnitee by any third party or by
      the
      Borrower or any other Loan Party arising out of, in connection with, or as
      a
      result of (i) the execution or delivery of this Agreement, any other Loan
      Document or any agreement or instrument contemplated hereby or thereby, the
      performance by the parties hereto of their respective obligations hereunder
      or
      thereunder or the consummation of the transactions contemplated hereby or
      thereby, (ii) any Loan or Letter of Credit or the use or proposed use of
      the proceeds therefrom (including any refusal by the Issuing Lender to honor
      a
      demand for payment under a Letter of Credit if the documents presented in
      connection with such demand do not strictly comply with the terms of such Letter
      of Credit), (iii) breach of representations, warranties or covenants of the
      Borrower under the Loan Documents, or (iv) any actual or prospective claim,
      litigation, investigation or proceeding relating to any of the foregoing,
      including any such items or losses relating to or arising under Environmental
      Laws or pertaining to environmental matters, whether based on contract, tort
      or
      any other theory, whether brought

     

    

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    by
      a
      third party or by the Borrower or any other Loan Party, and regardless of
      whether any Indemnitee is a party thereto; provided that such indemnity
      shall not, as to any Indemnitee, be available to the extent that such losses,
      claims, damages, liabilities or related expenses (x) are determined by a
      court of competent jurisdiction by final and nonappealable judgment to have
      resulted from the gross negligence or willful misconduct of such Indemnitee
      or
      (y) result from a claim brought by the Borrower or any other Loan Party
      against an Indemnitee for breach in bad faith of such Indemnitee's obligations
      hereunder or under any other Loan Document, if the Borrower or such Loan Party
      has obtained a final and nonappealable judgment in its favor on such claim
      as
      determined by a court of competent jurisdiction.

     

    11.3.3         Reimbursement
      by Lenders.  To the extent that the Borrower for any reason fails
      to indefeasibly pay any amount required under Sections 11.3.1 [Costs and
      Expenses] or 11.3.2 [Indemnification by the Borrower] to be paid by it to
      the Administrative Agent (or any sub-agent thereof), the Issuing Lender or
      any
      Related Party of any of the foregoing, each Lender severally agrees to pay
      to
      the Administrative Agent (or any such sub-agent), the Issuing Lender or such
      Related Party, as the case may be, such Lender’s Ratable Share (determined as of
      the time that the applicable unreimbursed expense or indemnity payment is
      sought) of such unpaid amount, provided that the unreimbursed expense or
      indemnified loss, claim, damage, liability or related expense, as the case
      may
      be, was incurred by or asserted against the Administrative Agent (or any such
      sub-agent) or the Issuing Lender in its capacity as such, or against any Related
      Party of any of the foregoing acting for the Administrative Agent (or any such
      sub-agent) or Issuing Lender in connection with such capacity.

     

    11.3.4          Waiver
      of Consequential Damages, Etc.  To the fullest extent permitted by
      applicable Law, the Borrower shall not assert, and hereby waives, any claim
      against any Indemnitee, on any theory of liability, for special, indirect,
      consequential or punitive damages (as opposed to direct or actual damages)
      arising out of, in connection with, or as a result of, this Agreement, any
      other
      Loan Document or any agreement or instrument contemplated hereby, the
      transactions contemplated hereby or thereby, any Loan or Letter of Credit or
      the
      use of the proceeds thereof.  No Indemnitee referred to in
      Section 11.3.2 [Indemnification by Borrower] shall be liable for any
      damages arising from the use by unintended recipients of any information or
      other materials distributed by it through telecommunications, electronic or
      other information transmission systems in connection with this Agreement or
      the
      other Loan Documents or the transactions contemplated hereby or
      thereby.

     

    11.3.5         Payments.  All
      amounts due under this Section shall be payable not later than ten (10) days
      after demand therefor.

     

    11.4           Holidays.  Whenever
      payment of a Loan to be made or taken hereunder shall be due on a day which
      is
      not a Business Day such payment shall be due on the next Business Day (except
      as
      provided in Section 4.2 [Interest Periods]) and such extension of time
      shall be included in computing interest and fees, except that the Loans shall
      be
      due on the Business Day preceding the Expiration Date if the Expiration Date
      is
      not a Business Day.  Whenever any payment or action to be made or
      taken hereunder (other than payment of the Loans) shall be stated to be due
      on a
      day which is not a Business Day, such payment or action shall be made or taken
      on the next following Business Day, and such extension of time shall not be
      included in computing interest or fees, if any, in connection with such payment
      or action.

     

    11.5           Notices;
      Effectiveness; Electronic Communication.

     

    11.5.1         Notices
      Generally.  Except in the case of notices and other communications
      expressly permitted to be given by telephone (and except as provided in
      Section 11.5.2 [Electronic Communications]), all notices and other
      communications provided for herein shall be in writing and shall be delivered
      by
      hand or overnight courier service, mailed by certified or registered mail or
      sent by telecopier (i) if to a Lender, to it at its address set forth in its
      administrative questionnaire, or (ii) if to any other Person, to it at its
      address set forth on Schedule 1.1(B).

     

    

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    Notices
      sent by hand or overnight courier service, or mailed by certified or registered
      mail, shall be deemed to have been given when received; notices sent by
      telecopier shall be deemed to have been given when sent (except that, if not
      given during normal business hours for the recipient, shall be deemed to have
      been given at the opening of business on the next Business Day for the
      recipient).  Notices delivered through electronic communications to
      the extent provided in Section 11.5.2 [Electronic Communications], shall be
      effective as provided in such Section.

     

    11.5.2         Electronic
      Communications.  Notices and other communications to the Lenders
      and the Issuing Lender hereunder may be delivered or furnished by electronic
      communication (including e-mail and Internet or intranet websites) pursuant
      to
      procedures approved by the Administrative Agent; provided that the
      foregoing shall not apply to notices to any Lender or the Issuing Lender if
      such
      Lender or the Issuing Lender, as applicable, has notified the Administrative
      Agent that it is incapable of receiving notices under such Article by electronic
      communication.  The Administrative Agent or the Borrower may, in its
      discretion, agree to accept notices and other communications to it hereunder
      by
      electronic communications pursuant to procedures approved by it; provided
      that approval of such procedures may be limited to particular notices or
      communications.  Unless the Administrative Agent otherwise prescribes,
      (i) notices and other communications sent to an e-mail address shall be
      deemed received upon the sender’s receipt of an acknowledgement from the
      intended recipient (such as by the “return receipt requested” function, as
      available, return e-mail or other written acknowledgement); provided that if
      such notice or other communication is not sent during the normal business hours
      of the recipient, such notice or communication shall be deemed to have been
      sent
      at the opening of business on the next Business Day for the recipient, and
      (ii) notices or communications posted to an Internet or intranet website
      shall be deemed received upon the deemed receipt by the intended recipient
      at
      its e-mail address as described in the foregoing clause (i) of notification
      that such notice or communication is available and identifying the website
      address therefor.

     

    11.5.3         Change
      of Address, Etc.  Any party hereto may change its address or
      telecopier number for notices and other communications hereunder by notice
      to
      the other parties hereto.

     

    11.6           Severability.  The
      provisions of this Agreement are intended to be severable.  If any
      provision of this Agreement shall be held invalid or unenforceable in whole
      or
      in part in any jurisdiction, such provision shall, as to such jurisdiction,
      be
      ineffective to the extent of such invalidity or unenforceability without in
      any
      manner affecting the validity or enforceability thereof in any other
      jurisdiction or the remaining provisions hereof in any
      jurisdiction.

     

    11.7           Duration;
      Survival.  All representations and warranties of the Borrower and
      its Subsidiaries contained herein or made in connection herewith shall survive
      the execution and delivery of this Agreement, the completion of the transactions
      hereunder and Payment In Full.  All covenants and agreements of the
      Borrower contained herein relating to the payment of principal, interest,
      premiums, additional compensation or expenses and indemnification, including
      those set forth in the Notes, Section 5 [Payments] and Section 11.3
      [Expenses; Indemnity; Damage Waiver], shall survive Payment in
      Full.  All other covenants and agreements of the Borrower and its
      Subsidiaries shall continue in full force and effect from and after the date
      hereof and until Payment in Full.

     

    11.8           Successors
      and Assigns.

     

    11.8.1         Successors
      and Assigns Generally.  The provisions of this Agreement shall be
      binding upon, and inure to the benefit of, the parties hereto and their
      respective successors and assigns permitted hereby, except that neither the
      Borrower nor any other Loan Party may assign or otherwise transfer any of its
      rights or obligations hereunder without the prior written consent of the
      Administrative Agent and each Lender and no Lender may assign or otherwise
      transfer any of its rights or obligations hereunder except (i) to an assignee
      in
      accordance with the provisions of Section 11.8.2 [Assignments by Lenders],
      (ii) by way of participation in accordance with the provisions of
      Section

     

    

     -60-
      
        

      

    

    

    11.8.4 [Participations],
      or (iii) by way of pledge or assignment of a security interest subject to the
      restrictions of Section 11.8.6 [Certain Pledges; Successors and Assigns
      Generally] (and any other attempted assignment or transfer by any party hereto
      shall be null and void).  Nothing in this Agreement, expressed or
      implied, shall be construed to confer upon any Person (other than the parties
      hereto, their respective successors and assigns permitted hereby, Participants
      to the extent provided in Section 11.8.4 [Participations] and, to the
      extent expressly contemplated hereby, the Related Parties of each of the
      Administrative Agent and the Lenders) any legal or equitable right, remedy
      or
      claim under or by reason of this Agreement.

     

    11.8.2         Assignments
      by Lenders.  Any Lender may at any time assign to one or more
      assignees all or a portion of its rights and obligations under this Agreement
      (including all or a portion of its Commitment and the Loans at the time owing
      to
      it); provided that any such assignment shall be subject to the following
      conditions:

     

    (i)           Minimum
      Amounts.

     

    (A)           in
      the case of an assignment of the entire remaining amount of the assigning
      Lender’s Commitment and the Loans at the time owing to it or in the case of an
      assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum
      amount need be assigned; and

     

    (B)           in
      any case not described in clause (i)(A) of this Section 11.8.2, the aggregate
      amount of the Commitment (which for this purpose includes Loans outstanding
      thereunder) or, if the applicable Commitment is not then in effect, the
      principal outstanding balance of the Loans of the assigning Lender subject
      to
      each such assignment (determined as of the date the Assignment and Assumption
      Agreement with respect to such assignment is delivered to the Administrative
      Agent or, if “Trade Date” is specified in the Assignment and Assumption
      Agreement, as of the Trade Date) shall not be less than $5,000,000, unless
      each
      of the Administrative Agent and, so long as no Event of Default has occurred
      and
      is continuing, the Borrower otherwise consents (each such consent not to be
      unreasonably withheld or delayed).

     

    (ii)           Proportionate
      Amounts.  Each partial assignment shall be made as an assignment
      of a proportionate part of all the assigning Lender’s rights and obligations
      under this Agreement with respect to the Loan or the Commitment
      assigned.

     

    (iii)           Required
      Consents.  No consent shall be required for any assignment except
      for the consent of the Administrative Agent (which shall not be unreasonably
      withheld or delayed) and:

     

    (A)           the
      consent of the Borrower (such consent not to be unreasonably withheld or
      delayed) shall be required unless (x) an Event of Default has occurred and
      is
      continuing at the time of such assignment or (y) such assignment is to a Lender,
      an Affiliate of a Lender or an Approved Fund;

     

    (B)           the
      consent of the Issuing Lender (such consent not to be unreasonably withheld
      or
      delayed) shall be required for any assignment that increases the obligation
      of
      the assignee to participate in exposure under one or more Letters of Credit
      (whether or not then outstanding).

     

    (iv)           Assignment
      and Assumption Agreement.  The parties to each assignment shall
      execute and deliver to the Administrative Agent an Assignment and Assumption
      Agreement, together with a processing and recordation fee of $3,500, and the
      assignee, if it is not a Lender, shall deliver to the Administrative Agent
      an
      administrative questionnaire provided by the Administrative Agent.

     

    

     -61-
      
        

      

    

    

    

     

    (v)           No
      Assignment to Borrower.  No such assignment shall be made to the
      Borrower or any of the Borrower’s Affiliates or Subsidiaries.

     

    (vi)           No
      Assignment to Natural Persons.  No such assignment shall be made
      to a natural person.

     

    Subject
      to acceptance and recording thereof by the Administrative Agent pursuant to
      Section 11.8.3 [Register], from and after the effective date specified in
      each Assignment and Assumption Agreement, the assignee thereunder shall be
      a
      party to this Agreement and, to the extent of the interest assigned by such
      Assignment and Assumption Agreement, have the rights and obligations of a Lender
      under this Agreement, and the assigning Lender thereunder shall, to the extent
      of the interest assigned by such Assignment and Assumption Agreement, be
      released from its obligations under this Agreement (and, in the case of an
      Assignment and Assumption Agreement covering all of the assigning Lender’s
      rights and obligations under this Agreement, such Lender shall cease to be
      a
      party hereto) but shall continue to be entitled to the benefits of
      Sections 4.4 [LIBOR Rate Unascertainable; Illegality; Increased Costs;
      Deposits Not Available], 5.8 [Increased Costs; Indemnity], and 11.3
      [Expenses, Indemnity; Damage Waiver] with respect to facts and
      circumstances occurring prior to the effective date of such
      assignment.  Any assignment or transfer by a Lender of rights or
      obligations under this Agreement that does not comply with this
      Section 11.8.2 shall be treated for purposes of this Agreement as a sale by
      such Lender of a participation in such rights and obligations in accordance
      with
      Section 11.8.4 [Participations].

     

    11.8.3         Register.  The
      Administrative Agent, acting solely for this purpose as an agent of the
      Borrower, shall maintain a record of the names and addresses of the Lenders,
      and
      the Commitments of, and principal amounts of the Loans owing to, each Lender
      pursuant to the terms hereof from time to time.  Such register shall
      be conclusive, and the Borrower, the Administrative Agent and the Lenders may
      treat each Person whose name is in such register pursuant to the terms hereof
      as
      a Lender hereunder for all purposes of this Agreement, notwithstanding notice
      to
      the contrary.  Such register shall be available for inspection by the
      Borrower and any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

     

    11.8.4         Participations.  Any
      Lender may at any time, without the consent of, or notice to, the Borrower
      or
      the Administrative Agent, sell participations to any Person (other than a
      natural person or the Borrower or any of the Borrower’s Affiliates or
      Subsidiaries) (each, a “Participant”) in all or a portion of such
      Lender’s rights and/or obligations under this Agreement (including all or a
      portion of its Commitment and/or the Loans owing to it); provided that
      (i) such Lender’s obligations under this Agreement shall remain unchanged,
      (ii) such Lender shall remain solely responsible to the other parties
      hereto for the performance of such obligations and (iii) the Borrower, the
      Administrative Agent and the Lenders, Issuing Lender shall continue to deal
      solely and directly with such Lender in connection with such Lender’s rights and
      obligations under this Agreement.  

     

    Any
      agreement or instrument pursuant to which a Lender sells such a participation
      shall provide that such Lender shall retain the sole right to enforce this
      Agreement and to approve any amendment, modification or waiver of
      any  provision of this Agreement; provided that such agreement
      or instrument may provide that such Lender will not, without the consent of
      the
      Participant, agree to any amendment, modification or waiver with respect to
      Sections 11.1.1 [Increase of Commitment, Etc.], 11.1.2 [Extension of
      Payment, Etc.], or 11.1.3 [Release of Collateral or
      Guarantor]).  Subject to Section 11.8.5 [Limitations upon
      Participant Rights Successors and Assigns Generally], the Borrower agrees that
      each Participant shall be entitled to the benefits of Sections 4.4 [LIBOR
      Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available]
      and 5.8 [Increased Costs; Indemnity] to the same extent as if
      it were a Lender and had acquired its interest by assignment pursuant to
      Section 11.8.2 [Assignments by Lenders].  To the extent permitted
      by Law, each Participant also shall be entitled to the benefits of
      Section 9.2.3 [Setoff] as though it were a Lender;
provided such Participant agrees to be subject to Section 5.3
      [Sharing of Payments by Lenders] as though it were a
      Lender.

     

    

     -62-
      
        

      

    

    

    

     

    11.8.5         Limitations
      upon Participant Rights Successors and Assigns Generally.  A
      Participant shall not be entitled to receive any greater payment under
      Sections 5.8 [Increased Costs], 5.9 [Taxes] or 11.3 [ Expenses;
      Indemnity; Damage Waiver] than the applicable Lender would have
      been entitled to receive with respect to the participation sold to such
      Participant, unless the sale of the participation to such Participant is made
      with the Borrower’s prior written consent.  A Participant that would
      be a Foreign Lender if it were a Lender shall not be entitled to the benefits
      of
      Section 5.9 [Taxes] unless the Borrower is notified of the
      participation sold to such Participant and such Participant agrees, for the
      benefit of the Borrower, to comply with Section 5.9.5 [Status of
      Lenders] as though it were a Lender.

     

    11.8.6         Certain
      Pledges; Successors and Assigns Generally.  Any Lender may at any
      time pledge or assign a security interest in all or any portion of its rights
      under this Agreement to secure obligations of such Lender, including any pledge
      or assignment to secure obligations to a Federal Reserve Bank; provided
      that no such pledge or assignment shall release such Lender from any of its
      obligations hereunder or substitute any such pledgee or assignee for such Lender
      as a party hereto.

     

    11.8.7         Assignment
      and Participation Expenses.  Any Lender assigning any portion of
      its Commitment and/or Loans or selling a participation in its Commitment and/or
      Loans, and the assignee(s) and Participant(s), shall bear their own fees and
      expenses incurred in connection with any such assignment or participation,
      and
      none of the Borrower, any other Loan Party or any of their respective Affiliates
      shall have any obligation for any such fees or expenses.

     

    11.9           Confidentiality.

     

    11.9.1     General.  Each
      of the Administrative Agent, the Lenders and the Issuing Lender agrees to
      maintain the confidentiality of the Information, except that Information may
      be
      disclosed (i) to its Affiliates and to its and its Affiliates’ respective
      partners, directors, officers, employees, agents, advisors and other
      representatives (it being understood that the Persons to whom such disclosure
      is
      made will be informed of the confidential nature of such Information and
      instructed to keep such Information confidential), (ii) to the extent
      requested by any regulatory authority purporting to have jurisdiction over
      it
      (including any self-regulatory authority, such as the National Association
      of
      Insurance Commissioners), (iii) to the extent required by applicable Laws
      or regulations or by any subpoena or similar legal process, (iv) to any
      other party hereto, (v) in connection with the exercise of any remedies
      hereunder or under any other Loan Document or any action or proceeding relating
      to this Agreement or any other Loan Document or the enforcement of rights
      hereunder or thereunder, (vi) subject to an agreement containing provisions
      substantially the same as those of this Section, to (A) any assignee of or
      Participant in, or any prospective assignee of or Participant in, any of its
      rights or obligations under this Agreement or (B) any actual or prospective
      counterparty (or its advisors) to any swap or derivative transaction relating
      to
      the Borrower and its obligations, (vii) with the consent of the Borrower or
      (viii) to the extent such Information (A) becomes publicly available
      other than as a result of a breach of this Section or (B) becomes available
      to the Administrative Agent, any Lender, the Issuing Lender or any of their
      respective Affiliates on a nonconfidential basis from a source other than the
      Borrower or the other Loan Parties.  Any Person required to maintain
      the confidentiality of Information as provided in this Section shall be
      considered to have complied with its obligation to do so if such Person has
      exercised the same degree of care to maintain the confidentiality of such
      Information as such Person would accord to its own confidential
      information.

     

    11.9.2         Sharing
      Information With Affiliates of the Lenders.  Each Loan Party
      acknowledges that from time to time financial advisory, investment banking
      and
      other services may be offered or provided to the Borrower or one or more of
      its
      Affiliates (in connection with this Agreement or otherwise) by any Lender or
      by
      one or more Subsidiaries or Affiliates of such Lender and each of the Loan
      Parties hereby authorizes each Lender to share any information delivered to
      such
      Lender by such

     

    

     -63-
      
        

      

    

    

    Loan
      Party and its Subsidiaries pursuant to this Agreement to any such Subsidiary
      or
      Affiliate subject to the provisions of Section 11.9.1 [General].

     

    11.10               Counterparts;
      Integration; Effectiveness.

     

    11.10.1       Counterparts;
      Integration; Effectiveness.  This Agreement may be executed in
      counterparts (and by different parties hereto in different counterparts), each
      of which shall constitute an original, but all of which when taken together
      shall constitute a single contract.  This Agreement and the other Loan
      Documents, and any separate letter agreements with respect to fees payable
      to
      the Administrative Agent, constitute the entire contract among the parties
      relating to the subject matter hereof and supersede any and all previous
      agreements and understandings, oral or written, relating to the subject matter
      hereof including any prior confidentiality agreements and
      commitments.  Except as provided in Section 7 [Conditions Of
      Lending And Issuance Of Letters Of Credit], this Agreement shall become
      effective when it shall have been executed by the Administrative Agent and
      when
      the Administrative Agent shall have received counterparts hereof that, when
      taken together, bear the signatures of each of the other parties
      hereto.  Delivery of an executed counterpart of a signature page of
      this Agreement by telecopy shall be effective as delivery of a manually executed
      counterpart of this Agreement.

     

    11.11               CHOICE
      OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER
      OF JURY TRIAL.

     

    11.11.1       Governing
      Law  This Agreement shall be deemed to be a contract under the
      Laws of the Commonwealth of Pennsylvania without regard to its conflict of
      laws
      principles.  Each standby Letter of Credit issued under this Agreement
      shall be subject either to the rules of the Uniform Customs and Practice for
      Documentary Credits, as most recently published by the International Chamber
      of
      Commerce (the “ICC”) at the time of issuance (“UCP”) or the rules of the
      International Standby Practices (ICC Publication Number 590) (“ISP98”), as
      determined by the Issuing Lender, and each trade Letter of Credit shall be
      subject to UCP, and in each case to the extent not inconsistent therewith,
      the
      Laws of the Commonwealth of Pennsylvania without regard to is conflict of laws
      principles.

     

    11.11.2       SUBMISSION
      TO JURISDICTION.  THE BORROWER AND EACH OF ITS SUBSIDIARIES
      IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
      NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE COMMONWEALTH OF PENNSYLVANIA
      SITTING IN ALLEGHENY COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE
      WESTERN DISTRICT OF PENNSYLVANIA, AND ANY APPELLATE COURT FROM ANY THEREOF,
      IN
      ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
      OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND
      EACH
      OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS
      IN
      RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH
      PENNSYLVANIA STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
      LAW,
      IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL
      JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
      ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
      PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN
      DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR
      THE
      ISSUING LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING
      TO
      THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY OTHER
      OF
      ITS SUBSIDIARIES OR ITS PROPERTIES IN THE COURTS OF ANY
      JURISDICTION.

     

    

     -64-
      
        

      

    

    

    

     

    11.11.3       WAIVER
      OF VENUE.  THE BORROWER AND EACH ITS SUBSIDIARIES IRREVOCABLY AND
      UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY
      OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION
      OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
      DOCUMENT IN ANY COURT REFERRED TO IN THIS SECTION 11.11.  EACH OF THE
      PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
      APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF
      SUCH
      ACTION OR PROCEEDING IN ANY SUCH COURT AND AGREES NOT ASSERT ANY SUCH
      DEFENSE.

     

    11.11.4       SERVICE
      OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
      PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.5  [NOTICES;
      EFFECTIVENESS; ELECTRONIC COMMUNICATION].  NOTHING IN THIS AGREEMENT
      WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
      PERMITTED BY APPLICABLE LAW.

     

    11.11.5       WAIVER
      OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
      THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
      TRIAL
      BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
      RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
      CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
      THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
      ADMINISTRATIVE AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY
      OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION,
      SEEK
      TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
      PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
      LOAN
      DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
      THIS
      SECTION.

     

    11.12               USA
      Patriot Act Notice.  Each Lender that is subject to the USA
      Patriot Act and the Administrative Agent (for itself and not on behalf of any
      Lender) hereby notifies the Borrower and its Subsidiaries that pursuant to
      the
      requirements of the USA Patriot Act, it is required to obtain, verify and record
      information that identifies the Borrower and its Subsidiaries, which information
      includes the name and address of the Borrower and its Subsidiaries and other
      information that will allow such Lender or Administrative Agent, as applicable,
      to identify the Borrower and its Subsidiaries in accordance with the USA Patriot
      Act.

     

    [SIGNATURE
      PAGES TO FOLLOW]

    

     

    -65-

    
      

    

    

    [SIGNATURE
      PAGE TO CREDIT AGREEMENT]

    

     

    

     

    IN
      WITNESS WHEREOF, the parties hereto, by their officers thereunto duly
      authorized, have executed this Agreement as of the day and year first above
      written.

     

    
      	
              WITNESS/ATTEST:

               

              ____________________________

            	
              STRATEGIC
                ENERGY, L.L.C.

               

              ___________________________________

            
	 	
              By:

              Name:
                Brian M. Begg

              Title:
                Vice President, Corporate Development and
                Finance

            

    

    

     

    

     
      
        

      

    

    

    [SIGNATURE
      PAGE TO CREDIT AGREEMENT]

    

     

    
      	 	
              PNC
                BANK NATIONAL ASSOCIATION 

              individually
                and as Administrative Agent

               

              ____________________________________

            
	 	
              By:

              Name:
                Thomas A. Majeski

              Title:
                Vice President and Director

            

    

    

     

    

     
      
        

      

    

    

     [SIGNATURE
      PAGE TO CREDIT AGREEMENT]

    

     

    
      	 	
              FIFTH
                THIRD BANK

               

              ____________________________________

            
	 	
              By:

              Name:
                Jim Janovksy

              Title:
                Vice President

            

    

    

     

    

     
      
        

      

    

    

    [SIGNATURE
      PAGE TO CREDIT AGREEMENT]

    

     

    
      	 	
              THE
                HUNTINGTON NATIONAL BANK

               

              ____________________________________

            
	 	
              By:

              Name:
                W. Christopher Kohler

              Title:
                Vice President

            

    

    

     

    

     
      
        

      

    

    

    

    SCHEDULE 1.1(A)

     

    PRICING
      GRID--

    VARIABLE
      PRICING AND FEES BASED ON UNUSED
      AVAILABILITY

     

    (PRICING
      EXPRESSED IN BASIS POINTS)

     

    
      	
               

               

               

              Level

            	
               

              Unused
                Availability

            	
               

              Commitment

              Fee

            	
               

              Letter
                of Credit Fee

            	
               

              Base
                Rate Spread

            	
               

              LIBOR
                Rate Spread

            
	
               

              I

            	
              Greater
                than $50,000,000

               

            	
               

              37.5

            	
               

              175

            	
               

              25

            	
               

              175

            
	
               

               

              II

            	
              Less
                than or equal to $50,000,000 but greater than
                $25,000,000

               

            	
               

               

               

              37.5

            	
               

               

               

              200

            	
               

               

               

              50

            	
               

               

               

              200

            
	
               

              III

            	
              Less
                than or equal to $25,000,000

            	
               

              50

            	
               

              225

            	
               

              75

            	
               

              225

            

    

    

     

    For
      purposes of determining the Applicable Margin, the Applicable Commitment Fee
      Rate and the Applicable Letter of Credit Fee Rate:

     

    (a)           The
      Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter
      of Credit Fee Rate shall be determined on the Closing Date based on the Unused
      Availability computed on such date pursuant to a Borrowing Base Certificate
      to
      be delivered on the Closing Date.

     

    (b)           The
      Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter
      of Credit Fee Rate shall be recomputed in connection with each delivery of
      a
      Borrowing Base Certificate on the 21st day of each calendar month and shall
      apply retroactively to the first day of such calendar month; provided, if
      the Borrower shall fail to deliver such Borrowing Base Certificate on the 21st
      day of such month, the Loans and Letters of Credit shall be subject Level III
      pricing for such calendar month.

     

    (c)           This
      paragraph shall not limit the rights of the Administrative Agent, any Lender
      or
      the Issuing Lender, as the case may be, under Section 2.9 [Letter of Credit
      Subfacility] or 4.3 [Interest After Default] or 9
      [Default].  The Borrower’s obligations under this paragraph shall
      survive the termination of the Commitments and the repayment of all other
      Obligations hereunder.

     

    

     

    

    
      SCHEDULE
        1.1.(A) - 1

    

    
      

    

    SCHEDULE 1.1(B)

     

    COMMITMENTS
      OF LENDERS AND ADDRESSES FOR NOTICES

     

    Page
      1 of
      2

     

    Part
      1 - Commitments of Lenders and Addresses for Notices to
      Lenders

     

    
      	
               

               

               

              Lender

            	
               

               

               

              Commitment

            	
               

               

               

              Ratable
                Share

            
	
              Name:  PNC
                Bank, National Association

              Address:  
                One PNC Plaza, 2nd
                Floor

              249
                Fifth Avenue

              Pittsburgh,
                PA 15222-2707

              Attention:
                Thomas A. Majeski

              Telephone:         412-762-2431

              Telecopy:            412-762-6484

            	
               

               

               

               

               

              $20,000,000

            	
               

               

               

               

               

              40.000000000%

            
	 	 	 
	
              Name:
                Fifth Third Bank

              Address:  
                707 Grant Street, Gulf Tower, 21st Floor

                                 
                Pittsburgh, PA 15219

              Attention: 
                Jim Janovsky

              Telephone:         (412)
                291-5427

              Telecopy:            (412)
                291-5411

            	
               

               

               

               

               

              $15,000,000

            	
               

               

               

               

               

              30.000000000%

            
	 	 	 
	
              Name:  The
                Huntington National Bank

              Address:  
                336 Fourth Avenue

                                 
                Pittsburgh, PA 15222

              Attention: 
                W. Christopher Kohler

              Telephone:          (412)
                227-6496

              Telecopy:             (412)
                227-2249

            	
               

               

               

               

               

              $15,000,000

            	
               

               

               

               

               

              30.000000000%

            
	 	 	 
	
              Total

            	
              $50,000,000

            	
              100%

            

    

    

     

    SCHEDULE
      1.1(B) - 1

    
      
        

      

    

    SCHEDULE 1.1(B)

     

    COMMITMENTS
      OF LENDERS AND ADDRESSES FOR NOTICES

     

    Page
      2 of
      2

     

    Part
      2 - Addresses for Notices to Borrower and Guarantors:

     

    ADMINISTRATIVE
      AGENT

     

    Agency
      Services

    PNC
      Bank,
      National Association

    PNC
      Firstside Center

    4th
      Floor

    500
      First
      Avenue

    Pittsburgh,
      PA  15219

    Attention:  Trina
      Barkley

    Telephone:          (412)
      768-0423

    Telecopy:             (412)
      705-2006

    

     

    BORROWER:

     

    Name:  Strategic
      Energy, L.L.C.

    Address:
      Two Gateway Center, 9th Floor

      Pittsburgh,
      PA  15222-1458

    Attention:  Brian
      M. Begg

    Telephone:           (412)
      394-6467

    Telecopy:              (412)
      394-6664

     

    GUARANTOR:

     

    Name:  Great
      Plains Energy, Incorporated

    Address:  1201
      Walnut

    Kansas
      City, MO 64106

    Attention:  Michael
      W. Cline

    Telephone:            (816)
      556-2622

    Telecopy:               (816)
      556-2992

     

    

    

    SCHEDULE
      1.1(B) - 2

    
      
        

      

    

    SCHEDULE 
      8.1.3

     

    INSURANCE
      REQUIREMENTS RELATING TO THE COLLATERAL

     

    COVENANTS:

     

    At
      the
      request of the Administrative Agent, the Borrower and its Subsidiaries shall
      deliver to the Administrative Agent and each of the Lenders (x) on the
      Closing Date and annually thereafter an original certificate of insurance signed
      by the Borrower's and its Subsidiaries' independent insurance broker describing
      and certifying as to the existence of the insurance on the Collateral required
      to be maintained by this Agreement and the other Loan Documents, together with
      a
      copy of the endorsement described in the next sentence attached to such
      certificate and (y) from time to time a summary schedule indicating all
      insurance then in force with respect to each of the Borrower and its
      Subsidiaries.  Such policies of insurance shall contain special
      endorsements, in form and substance acceptable to the Administrative Agent,
      which shall include the provisions set forth below.  The applicable
      Borrower and/or Subsidiary shall notify the Administrative Agent promptly of
      any
      occurrence causing a material loss or decline in value of the Collateral and
      the
      estimated (or actual, if available) amount of such loss or
      decline.  Any monies received by the Administrative Agent constituting
      insurance proceeds or condemnation proceeds may, at the option of the
      Administrative Agent, (i) be applied by the Administrative Agent to the
      payment of the Loans in such manner as the Administrative Agent may reasonably
      determine, or (ii) be disbursed to the applicable Borrower and/or
      Subsidiary on such terms as are deemed appropriate by the Administrative Agent
      for the repair, restoration and/or replacement of property in respect of which
      such proceeds were received.

     

    ENDORSEMENT:

     

    (i) specify
      the Administrative Agent as an additional insured and lender loss payee as
      its
      interests may appear, with the understanding that any obligation imposed upon
      the insured (including the liability to pay premiums) shall be the sole
      obligation of the applicable Borrower and/or Subsidiary and not that of the
      insured,

     

    (ii) provide
      that the interest of the Lenders shall be insured regardless of any breach
      or
      violation by the applicable Borrower and/or Subsidiary of any warranties,
      declarations or conditions contained in such policies or any action or inaction
      of the applicable Borrower and/or Subsidiary or others insured under such
      policies,

     

    (iii) provide
      a waiver of any right of the insurers to set off or counterclaim or any other
      deduction, whether by attachment or otherwise,

     

    (iv) provide
      that any and all rights of subrogation which the insurers may have or acquire
      shall be, at all times and in all respects, junior and subordinate to the prior
      payment in full of the Indebtedness hereunder and that no insurer shall exercise
      or assert any right of subrogation until such time as the Indebtedness hereunder
      has been paid in full and the Commitments have terminated,

     

    (v) provide,
      except in the case of public liability insurance and workmen's compensation
      insurance, that all insurance proceeds for losses of less than $1,000,000 shall
      be adjusted with and payable to the applicable Borrower and/or Subsidiary and
      that all insurance proceeds for losses of $1,000,000 or more shall be adjusted
      with and payable to the Administrative Agent,

     

    (vi) include
      effective waivers by the insurer of all claims for insurance premiums against
      the Administrative Agent,

     

    

     SCHEDULE
      8.1.3 - 1
      
        

      

    

    

    (vii) provide
      that no cancellation of such policies for any reason (including non-payment
      of
      premium) nor any change therein shall be effective until at least thirty (30)
      days after receipt by the Administrative Agent of written notice of such
      cancellation or change,

     

    (viii) be
      primary without right of contribution of any other insurance carried by or
      on
      behalf of any additional insureds with respect to their respective interests
      in
      the Collateral, and

     

    (ix) provide
      that inasmuch as the policy covers more than one insured, all terms, conditions,
      insuring agreements and endorsements (except limits of liability) shall operate
      as if there were a separate policy covering each insured.

     

    

    SCHEDULE
      8.1.3 - 2Unassociated Document

    

    Exhibit
      10.1.2

     

    EXECUTION
      COPY

     

    

     

    RECEIVABLES
      PURCHASE AGREEMENT

     

    

     

    DATED
      AS OF October 3, 2007

     

    BY
      AND AMONG

     

    STRATEGIC
      RECEIVABLES, LLC

     

    as
      Seller

     

    AND

     

    STRATEGIC
      ENERGY, L.L.C.

     

    as
      initial Servicer

     

    AND

     

    THE
      CONDUIT PURCHASERS PARTY HERETO

     

    AND

     

    THE
      PURCHASER AGENTS PARTY HERETO

     

    AND

     

    THE
      FINANCIAL INSTITUTIONS FROM TIME TO TIME PARTY HERETO,

     

    as
      LC Participants

     

    AND

     

    PNC
      BANK, NATIONAL ASSOCIATION,

     

    as
      Administrator and as LC Bank

     

    
      
        

      

    
TABLE
      OF CONTENTS

     

    Page

     

    
      
        	
                ARTICLE
                  I.

              	
                AMOUNTS
                  AND TERMS OF THE PURCHASES

              	
                1

              

      

      
        	
                    Section
                  1.1

              	
                Purchase
                  Facility

              	
                1

              
	
                    Section
                  1.2

              	
                Making
                  Purchases

              	
                3

              
	
                    Section
                  1.3

              	
                Purchased
                  Interest Computation

              	
                4

              
	
                    Section
                  1.4

              	
                Settlement
                  Procedures

              	
                5

              
	
                    Section
                  1.5

              	
                Fees

              	
                9

              
	
                    Section
                  1.6

              	
                Payments
                  and Computations, Etc.

              	
                9

              
	
                    Section
                  1.7

              	
                Increased
                  Costs and Yield Protection

              	
                10

              
	
                    Section
                  1.8

              	
                Requirements
                  of Law; Funding Losses

              	
                11

              
	
                    Section
                  1.9

              	
                Inability
                  to Determine Euro-Rate

              	
                12

              
	
                    Section
                  1.10

              	
                [Reserved]

              	
                13

              
	
                    Section
                  1.11

              	
                Letters
                  of Credit

              	
                13

              
	
                    Section
                  1.12

              	
                Issuance
                  of Letters of Credit

              	
                13

              
	
                    Section
                  1.13

              	
                Requirements
                  For Issuance of Letters of Credit

              	
                14

              
	
                    Section
                  1.14

              	
                Disbursements,
                  Reimbursement

              	
                14

              
	
                    Section
                  1.15

              	
                Repayment
                  of Participation Advances

              	
                15

              
	
                    Section
                  1.16

              	
                Documentation

              	
                15

              
	
                    Section
                  1.17

              	
                Determination
                  to Honor Drawing Request

              	
                16

              
	
                    Section
                  1.18

              	
                Nature
                  of Participation and Reimbursement Obligations

              	
                16

              
	
                    Section
                  1.19

              	
                Indemnity

              	
                17

              
	
                    Section
                  1.20

              	
                Liability
                  for Acts and Omissions

              	
                18

              

      

      
        	
                ARTICLE
                  II.

              	
                REPRESENTATIONS
                  AND WARRANTIES; COVENANTS; TERMINATION EVENTS

              	
                19

              

      

      
        	
                    Section
                  2.1

              	
                Representations
                  and Warranties; Covenants

              	
                19

              
	
                    Section
                  2.2

              	
                Termination
                  Events

              	
                19

              
	
                    Section
                  2.3

              	
                Tax
                  Treatment

              	
                20

              

      

      
        	
                ARTICLE
                  III.

              	
                INDEMNIFICATION

              	
                20

              

      

      
        	
                    Section
                  3.1

              	
                Indemnities
                  by the Seller

              	
                20

              
	
                    Section
                  3.2

              	
                Indemnities
                  by the Servicer

              	
                22

              

      

      
        	
                ARTICLE
                  IV.

              	
                ADMINISTRATION
                  AND COLLECTIONS

              	
                22

              

      

      
        	
                    Section
                  4.1

              	
                Appointment
                  and Authorization of the Servicer

              	
                22

              
	
                    Section
                  4.2

              	
                Duties
                  of the Servicer

              	
                23

              	 

      

    

     

                                                i                        STRATEGIC
      ENERGY - RPA

    
                          

      
        

      

      
TABLE
        OF CONTENTS
         

        Page

        

        
          	
                      Section
                    4.3

                	
                  Lock-Box
                    Arrangements

                	
                  24

                
	
                      Section
                    4.4

                	
                  Enforcement
                    Rights

                	
                  25

                
	
                      Section
                    4.5

                	
                  Responsibilities
                    of the Seller

                	
                  25

                
	
                      Section
                    4.6

                	
                  Servicing
                    Fee

                	
                  26

                

        

        
          	
                  ARTICLE
                    V.

                	
                  ADMINISTRATOR

                	
                  26

                

        

        
          	
                      Section
                    5.1

                	
                  Appointment,
                    Authorization and Action of the Administrator

                	
                  26

                
	
                      Section
                    5.2

                	
                  Nature
                    of Administrator’s Duties

                	
                  27

                
	
                      Section
                    5.3

                	
                  Exculpatory
                    Provisions

                	
                  28

                
	
                      Section
                    5.4

                	
                  Reliance
                    by Administrator

                	
                  28

                
	
                      Section
                    5.5

                	
                  Notice
                    of Termination Events

                	
                  29

                
	
                      Section
                    5.6

                	
                  Non-Reliance
                    on Administrator

                	
                  29

                
	
                      Section
                    5.7

                	
                  Administrator,
                    Purchasers, Purchaser Agents and Affiliates

                	
                  30

                
	
                      Section
                    5.8

                	
                  Indemnification

                	
                  30

                
	
                      Section
                    5.9

                	
                  Successor
                    Administrator

                	
                  31

                

        

        
          	
                  ARTICLE
                    VI.

                	
                  MISCELLANEOUS

                	
                  31

                

        

        
          	
                      Section
                    6.1

                	
                  Amendments,
                    Etc

                	
                  31

                
	
                      Section
                    6.2

                	
                  Notices,
                    Etc

                	
                  31

                
	
                      Section
                    6.3

                	
                  Successors
                    and Assigns; Assignability; Participations

                	
                  32

                
	
                      Section
                    6.4

                	
                  Costs,
                    Expenses and Taxes

                	
                  34

                
	
                      Section
                    6.5

                	
                  No
                    Proceedings; Limitation on Payments

                	
                  34

                
	
                      Section
                    6.6

                	
                  Confidentiality

                	
                  35

                
	
                      Section
                    6.7

                	
                  GOVERNING
                    LAW AND JURISDICTION

                	
                  36

                
	
                      Section
                    6.8

                	
                  Execution
                    in Counterparts

                	
                  36

                
	
                      Section
                    6.9

                	
                  Survival
                    of Termination; Non-Waiver

                	
                  36

                
	
                      Section
                    6.10

                	
                  WAIVER
                    OF JURY TRIAL

                	
                  36

                
	
                      Section
                    6.11

                	
                  Entire
                    Agreement

                	
                  37

                
	
                      Section
                    6.12

                	
                  Headings

                	
                  37

                
	
                      Section
                    6.13

                	
                  Purchasers’
                    and Purchaser Agents’ Liabilities

                	
                  37

                
	
                      Section
                    6.14

                	
                  Sharing
                    of Recoveries

                	
                  37

                
	
                      Section
                    6.15

                	
                  Intercreditor
                    Agreement

                	
                  37

                
	
                      Section
                    6.16

                	
                  Payments
                    to Non-Lock-Box Accounts

                	
                  38

                

        

        
 

        ii        STRATEGIC
          ENERGY - RPA

        
          

        

        

        
          	
                  EXHIBIT
                    I

                	
                  DEFINITIONS

                
	
                  EXHIBIT
                    II

                	
                  CONDITIONS
                    OF TRANSFERS

                
	
                  EXHIBIT
                    III

                	
                  REPRESENTATIONS
                    AND WARRANTIES

                
	
                  EXHIBIT
                    IV

                	
                  COVENANTS

                
	
                  EXHIBIT
                    V

                	
                  TERMINATION
                    EVENTS

                
	 	 
	
                  SCHEDULE
                    I

                	
                  CREDIT
                    AND COLLECTION POLICY

                
	
                  SCHEDULE
                    II

                	
                  LOCK-BOX
                    BANKS AND LOCK-BOX ACCOUNTS

                
	
                  SCHEDULE
                    III

                	
                  TRADE
                    NAMES

                
	
                  SCHEDULE
                    IV

                	
                  OFFICE
                    LOCATIONS

                
	
                  SCHEDULE
                    V

                	
                  EXISTING
                    LETTERS OF CREDIT

                
	
                  SCHEDULE
                    VI

                	
                  EXCLUDED
                    RECEIVABLE OBLIGORS

                
	
                  SCHEDULE
                    VII

                	
                  NON-LOCK-BOX
                    ACCOUNTS

                
	 	 
	
                  ANNEX
                    A

                	
                  FORM
                    OF INFORMATION PACKAGE

                
	
                  ANNEX
                    B

                	
                  FORM
                    OF PURCHASE NOTICE

                
	
                  ANNEX
                    C

                	
                  FORM
                    OF PAYDOWN NOTICE

                
	
                  ANNEX
                    D

                	
                  FORM
                    OF COMPLIANCE CERTIFICATE

                
	
                  ANNEX
                    E

                	
                  FORM
                    OF LETTER OF CREDIT APPLICATION

                

        

        
 

        iii        STRATEGIC
          ENERGY - RPA

        
          

        

        

        This
          RECEIVABLES PURCHASE AGREEMENT (as amended, restated, supplemented or otherwise
          modified from time to time, this “Agreement”) is entered into as of
          October 3, 2007, by and among STRATEGIC RECEIVABLES, LLC, a Delaware limited
          liability company, as seller (the “Seller”), STRATEGIC ENERGY, L.L.C., a
          Delaware limited liability company (“Strategic Energy”), as initial
          servicer (in such capacity, together with its successors and permitted
          assigns
          in such capacity, the “Servicer”), the CONDUIT PURCHASERS FROM TIME TO
          TIME PARTY HERETO (each, a “Conduit Purchaser”), the PURCHASER AGENTS
          FROM TIME TO TIME PARTY HERETO (each, a “Purchaser Agent”), THE FINANCIAL
          INSTITUTIONS FROM TIME TO TIME PARTY HERETO AS LC PARTICIPANTS (each together
          with their successors and permitted assigns in such capacity, an “LC
          Participant”), PNC BANK, NATIONAL ASSOCIATION, a national banking
          association (“PNC”), as Purchaser Agent for Market Street, and as
          administrator for the Conduit Purchasers (in such capacity, together with
          its
          successors and assigns in such capacity, the “Administrator”) and as
          issuer of Letters of Credit (in such capacity, together with its successors
          and
          assigns in such capacity, the “LC Bank”) and each of the other members of
          each Purchaser Group party hereto or that become parties hereto by executing
          an
          Assumption Agreement or a Transfer Supplement.

         

        PRELIMINARY
          STATEMENTS

         

        Certain
          terms that are capitalized and used throughout this Agreement are used
          as
          defined in Exhibit I.  References to the “Agreement” in the
          Exhibits hereto refer to this Agreement, as amended, restated, supplemented
          or
          otherwise modified from time to time.

         

        The
          Seller (i) desires to sell, transfer and assign an undivided variable percentage
          interest in a pool of receivables, and the Conduit Purchasers desire to
          acquire
          such undivided variable percentage interest, as such percentage interest
          shall
          be adjusted from time to time based upon, in part, reinvestment payments
          that
          are made by the Conduit Purchasers and (ii) may, subject to the terms and
          conditions hereof, request that the LC Bank issue or cause the issuance
          of one
          or more Letters of Credit.

         

        In
          consideration of the mutual agreements, provisions and covenants contained
          herein, the sufficiency of which is hereby acknowledged, the parties hereto
          agree as follows:

         

        ARTICLE
          I.

        AMOUNTS
          AND TERMS OF THE PURCHASES

         

        Section
          1.1       Purchase
          Facility.

         

        (a)           On
          the terms and subject to the conditions hereinafter set forth, each Conduit
          Purchaser hereby agrees, ratably based on its respective Commitment, to
          purchase, and make reinvestments in, and, if so requested in accordance
          with and
          subject to the terms of this Agreement, the LC Bank hereby agrees to issue
          Letters of Credit in return for (and each LC Participant hereby severally
          agrees
          to make participation advances in connection with any draws under such
          Letters
          of Credit equal to such LC Participant’s Pro Rata Share of such draws),
          undivided variable percentage ownership interests with regard to the Purchased
          Interest from the Seller from time to time from the date hereof to the
          Facility
          Termination Date (each such purchase, reinvestment or issuance is referred
          to
          herein as a “Transfer”).

         

         

        STRATEGIC
          ENERGY - RPA

        
          

        

        

         

        The
          Seller may, subject to the requirements and conditions herein, use the
          proceeds
          of any purchase by the Conduit Purchasers hereunder to satisfy its Reimbursement
          Obligation to the LC Bank and the LC Participants (ratably, based on the
          outstanding amounts funded by the LC Bank and each such LC Participant)
          pursuant
          to Section 1.14.

         

        Each
          Purchaser Agent shall notify the Seller at least 45 days prior to the occurrence
          of the date specified in clause (d) of the definition of “Facility Termination
          Date” if the Liquidity Providers with respect to the related Liquidity Agreement
          do not intend to extend such date under such Liquidity Agreement.

         

        (b)           In
          addition, in the event the Seller fails to reimburse the LC Bank for the
          full
          amount of any drawing under any Letter of Credit on the applicable Drawing
          Date
          (out of its own funds available therefor), pursuant to Section 1.14
          below, then the Seller shall, automatically (and without the requirement
          of any
          further action on the part of any Person hereunder), be deemed to have
          requested
          a new purchase from the Conduit Purchasers on such date, on the terms and
          subject to the conditions hereof, in an amount equal to the amount of such
          Reimbursement Obligation at such time. Subject to the limitations on funding
          set
          forth in the remainder of this paragraph (b) below (and the other
          requirements and conditions herein), the Conduit Purchasers shall fund
          such
          deemed purchase request and deliver the proceeds thereof directly to the
          Administrator to be immediately distributed (ratably) to the LC Bank and
          the
          applicable LC Participants in satisfaction of the Seller’s Reimbursement
          Obligation pursuant to Section 1.14 below, to the extent of the amounts
          permitted to be funded by the Conduit Purchasers, at such time,
          hereunder.

         

        Notwithstanding
          anything set forth in this paragraph (b) or otherwise herein to the
          contrary, under no circumstances shall any Purchaser be obligated to make
          any
          such purchase or reinvestment (including, without limitation, any deemed
          purchases by the Conduit Purchasers pursuant to the immediately preceding
          paragraphs of this Section 1.1(b)), or issue any Letter of Credit, as
          applicable, if, after giving effect to such Transfer, (i) the aggregate
          outstanding amount of the Capital funded by such Purchaser, when added
          to all
          other Capital funded by all other Purchasers in such Purchaser’s Purchaser
          Group, would exceed (A) its Purchaser Group’s Group Commitment (as the same may
          be reduced from time to time pursuant to Section 1.1(c)) minus (B) the
          related LC Participant’s Pro Rata Share of the face amount of any outstanding
          Letters of Credit or (ii) the aggregate outstanding Capital plus the LC
          Participation Amount would exceed the Purchase Limit.

         

        (c)           The
          Seller may, upon at least 30 days’ written notice to the Administrator and each
          Purchaser Agent, terminate the purchase facility provided in this Section
          in
          whole or, upon at least 15 days’ written notice to the Administrator, from time
          to time, irrevocably reduce in part the unused portion of the Purchase
          Limit;
          provided, that each partial reduction shall be in the amount of at least
          $5,000,000, or an integral multiple of $1,000,000 in excess thereof, and
          that,
          unless terminated in whole, the Purchase Limit shall in no event be reduced
          below $50,000,000; provided, however, that the Seller may upon
          at least 10 days’ written notice to the Administrator and each Purchaser Agent,
          terminate the purchase facility provided in this Section in whole only
          in the
          event that (i) an Affected Person exercises rights under Section 1.7 or
          (ii) a Conduit Purchaser does not fund a Portion of Capital through the issuance
          of Notes and such Conduit Purchaser’s aggregate Capital at such time exceeds
          $25,000,000.  Each reduction in the

         

         

        2        STRATEGIC
          ENERGY
          - RPA

        
          

        

        

        Commitments
          hereunder shall be made ratably among the Purchasers in accordance with
          their
          respective pro rata shares. The Administrator shall advise the Purchaser
          Agents
          of any notice it receives pursuant to this Section 1.1(c); it being
          understood that (in addition to and without limiting any other requirements
          for termination, prepayment and/or the funding of the LC Collateral Account
          hereunder) no such termination or reduction shall be effective unless and
          until
          (i) in the case of a termination, the amount on deposit in the LC Collateral
          Account is at least equal to 100% of the then outstanding LC Participation
          Amount and (ii) in the case of a partial reduction, the amount on deposit
          in the
          LC Collateral Account is at least equal to the positive difference between
          100%
          of the then outstanding LC Participation Amount and the Purchase Limit
          as so
          reduced by such partial reduction.

         

        Section
          1.2       Making
          Purchases.

         

        (a)           Each
          Funded Purchase (but not reinvestment) of undivided variable percentage
          ownership interests with regard to the Purchased Interest hereunder shall
          be
          made upon the Seller’s irrevocable written notice in the form of Annex B
          (the “Purchase Notice”) delivered to the Administrator and each Purchaser
          Agent in accordance with Section 5.2 (which notice must be received by
          the Administrator and each Purchaser Agent before 11:00 a.m., New York
          City
          time) at least two Business Days before the requested purchase date, which
          notice shall specify:  (A) in the case of a Funded Purchase (other
          than one made pursuant to Section 1.14(b)), the amount requested to be
          paid to the Seller with respect to each Conduit Purchaser (such amount,
          which
          shall not be less than $1,000,000 (or such lesser amount as agreed to by
          the
          Administrator and the Majority Purchaser Agents) and shall be in integral
          multiples of $100,000, being the Capital relating to the undivided variable
          percentage ownership interest then being purchased by such Conduit Purchaser),
          (B) the date of such Funded Purchase (which shall be a Business Day), and
          (C)
          the pro forma calculation of the Purchased Interest after giving effect
          to the
          increase in Capital.

         

        (b)           On
          the date of each Funded Purchase (but not reinvestment, issuance of a Letter
          of
          Credit or a Funded Purchase pursuant to Section 1.2(e)) of undivided
          variable percentage ownership interests with regard to the Purchased Interest
          hereunder, each applicable Conduit Purchaser (or the related Purchaser
          Agent on
          its behalf) shall, upon satisfaction of the applicable conditions set forth
          in
Exhibit II, make available to the Seller in same day funds, at PNC Bank,
          National Association, account number 1019809357, ABA No. 043000096, an
          amount
          equal to its Capital relating to the undivided variable percentage ownership
          interest then being purchased.

         

        (c)           Effective
          on the date of each Funded Purchase or other Transfer pursuant to this
          Agreement
          and each reinvestment pursuant to Section 1.4, the Seller hereby sells
          and assigns to the Administrator (for the benefit of the Purchasers (ratably
          based on the sum of the Capital plus the LC Participation Amount outstanding
          at
          such time,) an undivided variable percentage ownership interest
          in:  (a) each Pool Receivable then existing, (b) all Related Security
          with respect to such Pool Receivables, and (c) all Collections with respect
          to,
          and other proceeds of, such Pool Receivables and Related Security.

         

        (d)           To
          secure all of the Seller’s obligations (monetary or otherwise) under this
          Agreement and the other Transaction Documents to which it is a party, whether
          now or hereafter existing or arising, due or to become due, direct or indirect,
          absolute or contingent, the Seller

         

         

        3        STRATEGIC
          ENERGY - RPA
          

        

        

        hereby
          grants to the Administrator (for the benefit of the Purchasers and their
          assigns) a security interest in all of the Seller’s right, title and interest
          (including any undivided interest of the Seller) in, to and under all of
          the
          following, whether now or hereafter owned, existing or arising:  (d)
          all Pool Receivables, (e) all Related Security with respect to such Pool
          Receivables, (f) all Collections with respect to such Pool Receivables,
          (g) the
          Lock-Box Accounts and all amounts on deposit therein, and all certificates
          and
          instruments, if any, from time to time evidencing such Lock-Box Accounts
          and
          amounts on deposit therein, (v) all rights (but none of the obligations)
          of the
          Seller under the Sale Agreement and (vi) all proceeds of, and all amounts
          received or receivable under any or all of, the foregoing (collectively,
          the
“Pool Assets”) (it being understood that Pool Assets shall not include
          any amounts deposited by any Purchaser into the Seller’s account pursuant to
Section 1.2(b)).  The Seller hereby authorizes the
          Administrator to file financing statements in accordance with this grant
          of
          security interest.  The Administrator, for the benefit of the
          Purchasers, shall have, with respect to the Pool Assets, and in addition
          to all
          the other rights and remedies available to the Administrator and the Purchasers,
          all the rights and remedies of a secured party under any applicable
          UCC.

         

        (e)           Whenever
          the LC Bank issues a Letter of Credit pursuant to Section 1.12 hereof,
          each LC Participant shall, automatically and without further action of
          any kind
          upon the effective date of issuance of such Letter of Credit, have irrevocably
          been deemed to have made a Funded Purchase hereunder in the event that
          such
          Letter of Credit is subsequently drawn and such drawn amount shall not
          have been
          reimbursed pursuant to Section 1.1(b) or Section 1.14 upon such
          draw in an amount equal to its Pro Rata Share of such unreimbursed
          draw.  If the LC Bank pays a drawing under a Letter of Credit that is
          not reimbursed by the Seller on the applicable Drawing Date, the LC Bank
          shall
          be deemed to have made a Funded Purchase hereunder in the amount equal
          to its
          Pro Rata Share of such unreimbursed drawing.  All such Funded
          Purchases shall accrue Discount from the date of such draw.  In the
          event that any Letter of Credit expires or is surrendered without being
          drawn
          (in whole or in part) then, in such event, the foregoing commitment to
          make
          Funded Purchases shall expire with respect to such Letter of Credit and
          the LC
          Participation Amount shall automatically reduce by the amount of the Letter
          of
          Credit which is no longer outstanding.

         

        Section
          1.3       Purchased Interest
          Computation.

         

        The
          Purchased Interest shall be initially computed on the date of the initial
          purchase hereunder.  Thereafter, until the Facility Termination Date,
          the Purchased Interest shall be automatically recomputed (or deemed to
          be
          recomputed) on each Business Day other than a Termination Day.  The
          Purchased Interest as computed (or deemed recomputed) as of the day before
          the
          Facility Termination Date shall thereafter remain constant.  From and
          after the occurrence of any Termination Day, the Purchased Interest shall
          (until
          the event(s) giving rise to such Termination Day are satisfied or are waived
          by
          the Administrator in accordance with Section 2.2) be deemed to be
          100%.  The Purchased Interest shall become zero when (a) the Capital
          thereof and Discount thereon shall have been paid in full, (b) an amount
          equal
          to 100% of the LC Participation Amount has been deposited in the LC Collateral
          Account, or all Letters of Credit have expired and (c) all the amounts
          owed by
          the Seller or the Servicer hereunder to each Purchaser, the Administrator
          and
          any other Indemnified Party or Affected Person are paid in full, and the
          Servicer shall have received the accrued Servicing Fee thereon.

         

      

      
         

        4            STRATEGIC
          ENERGY - RPA

        
          
            

          

        

        Section
          1.4       Settlement Procedures.

         

        (a)           The
          collection of the Pool Receivables shall be administered by the Servicer
          in
          accordance with this Agreement.  The Seller shall provide to the
          Servicer on a timely basis all information needed for such administration,
          including notice of the occurrence of any Termination Day and current
          computations of the Purchased Interest.

         

        (b)           The
          Servicer shall, on each day on which Collections of Pool Receivables are
          received (or deemed received) by the Seller or the Servicer:

         

        (i)           set
          aside and hold in trust (and shall, at the request of the Administrator,
          segregate in a separate account approved by the Administrator) for the
          Administrator (for the benefit of the Purchasers), out of the Purchasers’ Share
          of such Collections,

         

        (A)           first,
          an amount equal to the Purchasers’ aggregate amount of Discount accrued through
          such day for each Portion of Capital and not previously set aside,

         

        (B)           second,
          an amount equal to the fees set forth in the Fee Letters accrued and unpaid
          through such day,

         

        (C)           and
          third, to the extent funds are available therefor, an amount equal to the
          aggregate of such Purchaser Group’s Ratable Share of the Purchaser’s Share of
          the Servicing Fee accrued through such day and not previously set
          aside,

         

        (ii)           subject
          to Section 1.4(f), if such day is not a Termination Day, remit to the
          Seller, ratably, on behalf of each Purchaser Group, the remainder of such
          Collections.  Such remainder shall, to the extent representing a
          return on the aggregate Capital, be automatically deemed to be reinvested
          in
          Pool Receivables, and in the Related Security, Collections and other proceeds
          with respect thereto ratably, according to each Purchaser’s Capital; provided,
          however, that if the Purchased Interest would exceed 100%, then the Servicer
          shall not remit such remainder to the Seller or reinvest it, but shall
          set aside
          and hold in trust for the Administrator (for the benefit of the Purchasers)
          (and
          shall, at the request of the Administrator, segregate in a separate account
          approved by the Administrator) a portion of such Collections that, together
          with
          the other Collections set aside pursuant to this paragraph, shall equal
          the
          amount necessary to reduce the Purchased Interest to 100% (determined as
          if such
          Collections set aside had been applied to reduce the aggregate Capital
          outstanding at such time); provided, further, that in the case of
          any Purchaser that has provided notice (an “Exiting Notice”) to its
          Purchaser Agent of its refusal to extend its Commitment hereunder (an
“Exiting Purchaser”), then such Exiting Purchaser’s ratable share of such
          Collections based on its Capital shall not be reinvested (after the termination
          of its Commitment) and shall instead be held in trust for Administrator
          (for  the benefit of such Exiting Purchaser) and applied in accordance
          with clause (iii) below,

         

        (iii)           if
          such day is a Termination Day (or any day following the provision of an
          Exiting
          Notice), set aside, segregate and hold in trust for the Administrator (for
          the
          benefit of the Purchasers) (and shall, at the request of the Administrator,
          segregate in a separate account approved by the Administrator) for the
          benefit
          of each Purchaser Group the entire remainder of such Collections (or in
          the case
          of an Exiting Purchaser an amount equal to such Purchaser’s

         

        5        STRATEGIC
          ENERGY
          - RPA

        
          

        

        

        ratable
          share of such Collections based on its Capital); provided, that solely
          for the purpose of determining such Purchaser’s ratable share of such
          Collections, such Purchaser’s Capital shall be deemed to remain constant from
          the date of the provision of an Exiting Notice until the date such Purchaser’s
          Capital has been paid in full; it being understood that if such day is
          also a Termination Day, such Exiting Purchaser’s Capital shall be recalculated
          taking into account amounts received by such Purchaser in respect of this
          parenthetical and thereafter Collections shall be set aside for such Purchaser
          ratably in respect of its Capital (as recalculated)); provided, that if
          amounts
          are set aside and held in trust on any Termination Day of the type described
          in
          clause (a) of the definition of “Termination Day” and, thereafter, the
          conditions set forth in Section 2 of Exhibit II are satisfied or
          waived in accordance with Section 6.1 hereof, such previously set-aside
          amounts shall, to the extent representing a return on aggregate Capital
          (other
          than the Capital of any Exiting Purchaser) and ratably in accordance with
          each
          Purchaser’s (other than an Exiting Purchaser) Capital, be reinvested in
          accordance with clause (ii) on the day of such subsequent satisfaction or
          waiver of conditions, and

         

        (iv)           release
          to the Seller (subject to Section 1.4(f)) for its own account any
          Collections in excess, if any, of:  (w) amounts required to be
          reinvested in accordance with clause (ii) or the proviso to clause (iii)
          plus
          (x) the amounts that are required to be set aside pursuant to clause (i),
          the proviso to clause (ii) and clause (iii) plus (y) the Seller’s
          Share of the Servicing Fee accrued and unpaid through such day plus (z)
          all
          other amounts then due and payable by the Seller under this Agreement to
          any
          Purchasers, the Administrator, and any other Indemnified Party or Affected
          Person.

         

        (c)           The
          Servicer shall deposit into each Purchaser Agent’s account (as designated by
          such Purchaser Agent to Servicer on or prior to the date hereof, or such
          other
          account designated by such Purchaser to Servicer from time to time), on
          each
          Settlement Date, Collections held for each Purchaser with respect to such
          Purchaser’s Portion(s) of Capital, pursuant to clause (b)(i) or (f) plus
          the amount of Collections then held for the Administrator (for the benefit
          of
          such Purchaser) pursuant to clauses (b)(ii) and (iii) of
Section 1.4; provided, that if Strategic Energy or an Affiliate
          thereof
          is the Servicer and such day is not a Termination Day, Strategic Energy
          (or such
          Affiliate) may retain the portion of the Collections set aside pursuant
          to
clause (b)(i) or (b)(iv)(y) that represents the aggregate of each
          Purchaser Group’s Ratable Share of the Purchasers’ Share of the Servicing
          Fee.  On the last day of each Settlement Period, each Purchaser or
          (its Purchaser Agent) will notify the Servicer by facsimile of the amount
          of
          Discount accrued with respect to each Portion of Capital during such Settlement
          Period or portion thereof.

         

        (d)           Upon
          receipt of funds deposited pursuant to clause (c), each Purchaser Agent
          shall cause such funds to be distributed as follows:

         

        (i)           if
          such distribution occurs on a day that is not a Termination Day and the
          Purchased Interest does not exceed 100%,

         

        (A)           first,
          to such Purchaser Agent ratably according to the Discount accrued during
          the
          applicable Settlement Period (for the benefit of the relevant Purchasers
          within
          such Purchaser Agent’s Purchaser Group) in payment in full of all accrued
          Discount and fees (other than Servicing Fees) with respect to each

         

      

       

      
        6            STRATEGIC
          ENERGY - RPA

        
          

        

        

        Portion
          of Capital maintained by such Purchasers; it being understood that each
          Purchaser Agent shall distribute such amounts to the Purchasers within
          its
          Purchaser Group ratably according to the Discount with respect to each
          Portion
          of Capital maintained by such Purchaser, and

         

        (B)           second,
          if the Servicer has set aside amounts in respect of the Servicing Fee pursuant
          to clause (b)(i) and has not retained such amounts pursuant to clause
          (c), to the Servicer (payable in arrears on each Settlement Date) in payment
          in full of the aggregate of each Purchaser Group’s Ratable Share of the
          Purchaser’s Share of accrued Servicing Fees so set aside, and

         

        (ii)           if
          such distribution occurs on a Termination Day or on a day when the Purchased
          Interest exceeds 100%,

         

        (A)           first,
          if such Termination Day is not solely the result of the occurrence and
          continuation of a Servicer Termination Event, to the Servicer in payment
          in full
          of the aggregate of such Purchaser Group’s Ratable Share of all accrued
          Servicing Fees,

         

        (B)           second,
          to such Purchaser Agent ratably according to Discount (for the benefit
          of the
          relevant Purchasers within such Purchaser Agent’s Purchaser Group) in payment in
          full of all accrued Discount and fees (other than Servicer Fees) with respect
          to
          each Portion of Capital funded or maintained by the Purchasers within such
          Purchaser Agent’s Purchaser Group,

         

        (C)           third,
          to such Purchaser Agent ratably according to the aggregate of the Capital
          of
          each Purchaser in each such Purchaser Agent’s Purchaser Group (for the benefit
          of the relevant Purchasers within such Purchaser Agent’s Purchaser Group) in
          payment in full of each Purchaser’s Capital (or, if such day is not a
          Termination Day, such Purchaser’s ratable share of the amount necessary to
          reduce the Purchased Interest to 100%),

         

        (D)           fourth,
          to the LC Collateral Account for the benefit of the LC Bank and the LC
          Participants, the amount necessary to cash collateralize the LC Participation
          Amount until the amount of cash collateral held in such LC Collateral Account
          equals 100% of the aggregate outstanding amount of the LC Participation
          Amount
          (determined as if such Collections used to cash collateralize the LC Amount
          had
          been applied to reduce the aggregate Capital outstanding at such
          time),

         

        (E)           fifth,
          if such Termination Day is solely the result of the occurrence and continuation
          of a Servicer Termination Event, to the Servicer in payment in full of
          the
          aggregate of such Purchaser Group’s Ratable Share of all accrued Servicing Fees,
          and

         

        (F)           sixth,
          and if the Capital and accrued Discount with respect to the Purchasers
          in its
          Purchaser Group’s percentage interest of Capital have been reduced to zero or if
          such day is not a Termination Day, the Purchased Interest is

         

        

         7        STRATEGIC
          ENERGY
          - RPA
          
            

          

        

        

        reduced
          to 100%, and all accrued Servicing Fees payable to the Servicer have been
          paid
          in full, to the Administrator for distribution to each Purchaser, each
          Purchaser
          Agent, the Administrator and any other Indemnified Party or Affected Person
          in
          payment in full of any other amounts owed thereto by the Seller hereunder,
          ratably in accordance with the amounts due thereto.

         

        After
          the
          Capital, Discount, fees payable pursuant to the Fee Letters and Servicing
          Fees
          with respect to the Purchased Interest, and any other amounts payable by
          the
          Seller and the Servicer to each Purchaser Group, the Administrator or any
          other
          Indemnified Party or Affected Person hereunder, have been paid in full,
          and (on
          and after a Termination Day) after an amount equal to 100% of the LC
          Participation Amount has been deposited in the LC Collateral Account, all
          additional Collections with respect to the Purchased Interest shall be
          paid to
          the Seller for its own account.

         

        (e)           For
          the purposes of this Section 1.4:

         

        (i)           if
          on any day the Outstanding Balance of any Pool Receivable is reduced or
          adjusted
          as a result of any defective, rejected, returned, repossessed or foreclosed
          goods or services, or any revision, cancellation, allowance, rebate, discount
          or
          other adjustment made by the Seller or any Affiliate of the Seller, or
          any
          setoff or dispute between the Seller or any Affiliate of the Seller and
          an
          Obligor, (x) the Seller shall be deemed to have received on such day a
          Collection of such Pool Receivable in the amount of such reduction or adjustment
          and (y) the Seller shall promptly pay an amount equal to such amount in
          respect
          thereof to a Lock-Box Account for the benefit of the Purchasers and their
          assigns and for application pursuant to this Section 1.4; provided,
          however, that unless a Termination Event has occurred and is continuing
          on such
          day, the payment required by clause (y) above may be made on the next Monthly
          Settlement Date;

         

        (ii)           if
          on any day any of the representations or warranties in Section 1(g) or
(n)  of Exhibit III is not true with respect to any Pool
          Receivable, the Seller shall be deemed to have received on such day a Collection
          of such Pool Receivable in full and shall immediately pay any and all such
          amounts in respect thereof to a Lock-Box Account (or as otherwise directed
          by
          the Administrator at such time) for the benefit of the Purchasers and their
          assigns and for application pursuant to this Section 1.4;

         

        (iii)           except
          as provided in clause (i) or (ii), or as otherwise required by
          applicable law or the relevant Contract, all Collections received from
          an
          Obligor of any Receivable shall be applied to the Receivables of such Obligor
          in
          the order of the age of such Receivables, starting with the oldest such
          Receivable, unless such Obligor designates in writing its payment for
          application to specific Receivables; and

         

        (iv)           if
          and to the extent the Administrator or any Purchaser shall be required
          for any
          reason to pay over to an Obligor (or any trustee, receiver, custodian or
          similar
          official in any Insolvency Proceeding) any amount received by it hereunder,
          such
          amount shall be deemed not to have been so received by the Administrator
          or such
          Purchaser but rather to have been retained by the Seller and, accordingly,
          the
          Administrator or such Purchaser, as the case may be,

         

        

         8        STRATEGIC
          ENERGY - RPA
          
            

          

        

        

        shall
          have a claim against the Seller for such amount, payable when and to the
          extent
          that any distribution from or on behalf of such Obligor is made in respect
          thereof.

         

        (f)           If
          at any time the Seller shall wish to cause the reduction of Capital (but
          not to
          commence the liquidation, or reduction to zero, of the entire Capital of
          the
          Purchased Interest), the Seller may do so as follows:

         

        (i)           the
          Seller shall give the Administrator, the Purchaser Agents and the Servicer
          written notice in the form of Annex C (the “Paydown Notice”) at
          least two Business Days’ prior to the date of such reduction; provided, however,
          that if such Paydown Notice is received by the Administrator and the Purchaser
          Agents prior to 2:00 p.m., New York time on a Business Day, then such requested
          reduction shall be effected by the close of business on the following Business
          Day;

         

        (ii)           on
          the proposed date of the commencement of such reduction and on each day
          thereafter, the Servicer shall cause Collections not to be reinvested until
          the
          amount thereof not so reinvested shall equal the desired amount of reduction;
          and

         

        (iii)           the
          Servicer shall hold such Collections in trust for the Purchasers ratably
          (based
          on their respective Portions of Capital), for payment to the Purchaser
          Agents on
          the next Settlement Date immediately following the current Settlement Period
          or
          such other date approved by the Purchaser Agents, and Capital shall be
          deemed
          reduced in the amount to be paid to the Purchaser Agents only when in fact
          finally so paid.

         

        Section
          1.5       Fees.

         

        The
          Seller shall pay to each Purchaser Agent for the benefit of the related
          Purchasers certain fees in the amounts and on the dates set forth in certain
          fee
          letters, among (i) Strategic Energy, the Seller and the applicable Purchaser
          Agent dated the date hereof, and (ii) Strategic Energy, the Seller, and
          each
          Purchaser Agent other than the Purchaser Group to which Market Street and
          Fifth
          Third Bank are members dated as of the date such Purchaser Group becomes
          party
          to this Agreement (as such letter agreements may be amended, restated,
          supplemented or otherwise modified from time to time, the “Fee
          Letters”).

         

        Section
          1.6       Payments and Computations,
          Etc.

         

        (a)           All
          amounts to be paid or deposited by the Seller or the Servicer hereunder
          or any
          other Transaction Document shall be made without reduction for offset or
          counterclaim and shall be paid or deposited no later than noon, New York
          City,
          New York time on the day when due in same day funds to each Purchaser Agent’s
          account.  All amounts received after noon, New York City, New York
          time, will be deemed to have been received on the next Business
          Day.

         

        (b)           The
          Seller or the Servicer, as the case may be, shall, to the extent permitted
          by
          applicable law, pay interest on any amount not paid or deposited by the
          Seller
          or the Servicer, as the case may be, when due hereunder, at an interest
          rate
          equal to 2.00% per annum above the Base Rate, payable on demand.

         

        

         9        STRATEGIC
          ENERGY
          - RPA
          
            

          

        

        

        (c)           All
          computations of interest under clause (b) and all computations of
          Discount, fees and other amounts hereunder shall be made on the basis of
          a year
          of 360 (or 365 or 366, as applicable, with respect to Discount or other
          amounts
          calculated by reference to the Base Rate) days for the actual number of
          days
          elapsed.  Whenever any payment or deposit to be made hereunder shall
          be due on a day other than a Business Day, such payment or deposit shall
          be made
          on the next Business Day and such extension of time shall be included in
          the
          computation of such payment or deposit.

         

        Section
          1.7       Increased Costs and Yield
          Protection.

         

        (a)           If
          the Administrator, any Liquidity Provider, any Purchaser Agent, any Purchaser,
          any other Program Support Provider or any of their respective Affiliates
          (each
          an “Affected Person”) reasonably determines that the existence of or
          compliance with:  (a) FIN 46 and Subsequent Statements and
          Interpretations described in Section 1.7(c) below, (b) any other law,
          rule, regulation or generally accepted accounting principle (including
          any
          applicable law, rule or regulation regarding capital adequacy) or any change
          therein or in the interpretation or application thereof, in each case adopted,
          issued or occurring after the date hereof, or (c) any request, guideline
          or
          directive from Financial Accounting Standards Board, any central bank or
          other
          Governmental Authority (whether or not having the force of law) affecting
          or
          which would affect the amount of capital required or expected to be maintained
          by such Affected Person, and such Affected Person determines that the amount
          of
          such capital is increased by or based upon the existence of any commitment
          to
          make purchases of (or otherwise to maintain the investment in) Pool Receivables
          or issue any Letter of Credit related to this Agreement or any related
          liquidity
          facility, credit enhancement facility and other commitments of the same
          type,
          then, upon demand by such Affected Person (with a copy to the Administrator
          and
          the Purchaser Agents), the Seller shall immediately pay to such Affected
          Person,
          from time to time as specified by such Affected Person, additional amounts
          sufficient to compensate such Affected Person for both increased costs
          and
          maintenance of bargained for yield in the light of such circumstances,
          to the
          extent that such Affected Person reasonably determines such increase in
          capital
          to be allocable to the existence of any of such commitments.  A
          certificate as to such amounts submitted to the Seller, the Administrator
          and
          the Purchaser Agents by such Affected Person shall be conclusive and binding
          for
          all purposes, absent manifest error.

         

        (b)           If,
          due to either:  (i) FIN 46 and Subsequent Statements and
          Interpretations, (ii) the introduction of or any change in or in the
          interpretation of any law, rule, regulation or generally accepted accounting
          standard or (iii) compliance with any guideline or request from any central
          bank
          or other Governmental Authority (whether or not having the force of law),
          there
          shall be any increase in the cost to any Affected Person of agreeing to
          purchase
          or purchasing, or maintaining the ownership of, the Purchased Interest
          in
          respect of which Discount is computed by reference to the Euro-Rate, then,
          upon
          demand by such Affected Person (with a copy to the Administrator and the
          Purchaser Agents), the Seller shall promptly pay to such Affected Person,
          from
          time to time as specified by such Affected Person, additional amounts sufficient
          to compensate such Affected Person for both increased costs and maintenance
          of
          bargained for yield.  A certificate as to such amounts submitted to
          the Seller, the Administrator and the Purchaser Agents by such Affected
          Person
          shall be conclusive and binding for all purposes, absent manifest
          error.

         

      

       

      
        10            STRATEGIC
          ENERGY - RPA

        
          

        

        

        (c)           For
          the avoidance of doubt, any increase in cost and/or reduction in yield
          caused by
          regulatory capital allocation adjustments due to Financial Accounting Standards
          Board’s Interpretation 46 (revised December 2003) Consolidation of Variable
          Interest Entities and Interpretation of Accounting Research Bulletin No.
          51 (or
          any future statement or interpretation issued by the Financial Accounting
          Standards Board or any successor thereto) (collectively, the “FIN 46 and
          Subsequent Statements and Interpretations”) shall be covered by this
Section 1.7.

         

        (d)           If
          such increased costs affect the related Affected Person’s portfolio of financing
          transactions, such Affected Person shall use reasonable averaging and
          attribution methods to allocate such increased costs to the transactions
          contemplated by this Agreement.

         

        Section
          1.8       Requirements of Law; Funding
          Losses.

         

        (a)           If
          any Affected Person reasonably determines that the existence of or compliance
          with:  (i) any law, rule or regulation or any change therein or in the
          interpretation or application thereof, in each case adopted, issued or
          occurring
          after the date hereof, or (ii) any request, guideline or directive from
          any
          central bank or other Governmental Authority (whether or not having the
          force of
          law) issued or occurring after the date of this Agreement:

         

        (A)           does
          or shall subject such Affected Person to any tax of any kind or nature
          whatsoever with respect to this Agreement (excluding taxes imposed on the
          overall or branch pre-tax net income of such Affected Person, and franchise
          taxes imposed on such Affected Person), by the jurisdiction under the laws
          of
          which such Affected Person is organized or otherwise is considered doing,
          or
          having done, business (unless the Affected Person would not be considered
          doing
          business in such jurisdiction, but for having entered into, or engaged
          in the
          transactions in connection with, this Agreement or any other Transaction
          Document) or a political subdivision thereof), any increase in the Purchased
          Interest (or its portion thereof) or in the amount of Capital relating
          thereto,
          or does or shall change the basis of taxation of payments to such Affected
          Person on account of Collections, Discount or any other amounts payable
          hereunder (excluding taxes imposed on the overall or branch pre-tax net
          income
          of such Affected Person, and franchise taxes imposed on such Affected Person),
          by the jurisdiction under the laws of which such Affected Person is organized
          or
          otherwise is considered doing, or having done, business (unless the Affected
          Person would not be considered doing, or having done, business in such
          jurisdiction, but for having entered into, or engaged in the transactions
          in
          connection with, this Agreement or any other Transaction Document) or a
          political subdivision thereof), or

         

        (B)           does
          or shall impose, modify or hold applicable any reserve, special deposit,
          compulsory loan or similar requirement against assets held by, or deposits
          or
          other liabilities in or for the account of, purchases, advances or loans
          by, or
          other credit extended by, or any other acquisition of funds by, any office
          of
          such Affected Person that are not otherwise included in the determination
          of the
          Euro-Rate or the Base Rate hereunder,

         

        and
          the
          result of any of the foregoing is: (1) to increase the cost to such Affected
          Person of acting as Administrator, or of agreeing to purchase or purchasing
          or
          maintaining the ownership of undivided variable percentage ownership interests
          with regard to, or issuing any Letter of Credit in respect of, the Purchased
          Interest (or interests therein) or any Portion of Capital, or (2) to reduce
          any
          amount receivable hereunder (whether directly or indirectly), then, in
          any such
          case,

         

        

         11        STRATEGIC
          ENERGY
          - RPA
          
            

          

        

        

        upon
          demand by such Affected Person (with a copy to the Administrator and the
          Purchaser Agents), and subject to Section 4.1(d) hereof, the Seller shall
          promptly pay to such Affected Person additional amounts necessary to compensate
          such Affected Person for such additional cost or reduced amount
          receivable.  All such amounts shall be payable as
          incurred.  A certificate from such Affected Person to the Seller, the
          Administrator and the Purchaser Agents shall be conclusive and binding
          for all
          purposes, absent manifest error; provided, however, that no
          Affected Person shall be required to disclose any confidential or tax planning
          information in any such certificate.

         

        (b)           The
          Seller shall compensate each Affected Person, upon written request by such
          Person for all losses, expenses and liabilities (including any interest
          paid by
          such Affected Person to lenders of funds borrowed by it to fund or maintain
          any
          Portion of Capital hereunder at an interest rate determined by reference
          to the
          Euro-Rate and any loss sustained by such Person in connection with the
          re-employment of such funds), which such Affected Person may sustain with
          respect to funding or maintaining such Portion of Capital at the Euro-Rate
          if,
          for any reason, funding or maintaining such Portion of Capital at an interest
          rate determined by reference to the Euro-Rate does not occur on a date
          specified
          therefor; provided, however, that no Affected Person shall be required
          to
          disclose any confidential or tax planning information in any such
          certificate.

         

        Section
          1.9       Inability to Determine
          Euro-Rate.

         

        (a)           If
          the Administrator or any Purchaser Agent determines before the first day
          of any
          Settlement Period (which determination shall be final and conclusive) that,
          by
          reason of circumstances affecting the interbank eurodollar market generally,
          (i)
          deposits in dollars (in the relevant amounts for such Settlement Period)
          are not
          being offered to banks in the interbank eurodollar market for such Settlement
          Period, (ii) adequate means do not exist for ascertaining the Euro-Rate
          for such
          Settlement Period or (iii) the Euro Rate does not accurately reflect the
          cost to
          any Purchaser (as determined by such Purchaser or its related Purchaser
          Agent)
          of maintaining any Portion of Capital during such Settlement Period, then
          the
          Administrator or such Purchaser Agent shall give notice thereof to the
          Seller.  Thereafter, until the Administrator or such Purchaser Agent
          notifies the Seller that the circumstances giving rise to such suspension
          no
          longer exist, (i) no Portion of Capital shall be funded at the Alternate
          Rate
          determined by reference to the Euro-Rate and (ii) the Discount for any
          outstanding Portions of Capital then funded at the Alternate Rate determined
          by
          reference to the Euro-Rate shall, on the last day of the then current Settlement
          Period, be converted to the Alternate Rate determined by reference to the
          Base
          Rate.

         

        (b)           If,
          on or before the first day of any Settlement Period, the Administrator
          shall
          have been notified by any Affected Person that such Affected Person has
          determined (which determination shall be final and conclusive) that any
          enactment, promulgation or adoption of or any change in any applicable
          law, rule
          or regulation, or any change in the interpretation or administration thereof
          by
          a governmental authority, central bank or comparable agency charged with
          the
          interpretation or administration thereof, or compliance by such Affected
          Person
          with any guideline, request or directive (whether or not having the force
          of
          law) of any such authority, central bank or comparable agency shall make
          it
          unlawful or impossible for such Affected Person to fund or maintain any
          Portion
          of Capital at the Alternate Rate and based upon the Euro

         

        

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        Rate,
          the
          Administrator shall notify the Seller thereof.  Upon receipt of such
          notice, until the Administrator notifies the Seller that the circumstances
          giving rise to such determination no longer apply, (i) no Portion of Capital
          shall be funded at the Alternate Rate determined by reference to the Euro-Rate
          and  the Discount for any outstanding Portions of Capital then funded
          at the Alternate Rate determined by reference to the Euro-Rate shall be
          converted to the Alternate Rate determined by reference to the Base Rate
          either
          (A) on the last day of the then current Settlement Period if such Affected
          Person may lawfully continue to maintain such Portion of Capital at the
          Alternate Rate determined by reference to the Euro-Rate to such day, or
          (B)
          immediately, if such Affected Person may not lawfully continue to maintain
          such
          Portion of Capital at the Alternate Rate determined by reference to the
          Euro-Rate to such day.

         

        Section
          1.10      [Reserved].

         

        Section
          1.11      Letters of Credit.

         

        On
          the
          terms and subject to the conditions hereof, the LC Bank shall issue or
          cause the
          issuance of standby letters of credit (“Letters of Credit”) on behalf of Seller
          (and, if applicable, on behalf of, or for the account of, any Originator
          in
          favor of such beneficiaries as such Originator may elect); provided,
however, that the LC Bank will not be required to issue or cause
          to be
          issued any Letters of Credit to the extent that, after giving effect to
          the
          issuance of such Letters of Credit, such issuance would then cause (a)
          the sum
          of (i) the aggregate Capital plus (ii) the LC Participation Amount to exceed
          the
          Purchase Limit, (b) the Capital for Purchasers in the LC Bank’s Purchaser Group
          to exceed the Group Commitment for such Purchaser Group or (c) the LC
          Participation Amount to exceed in the aggregate, at any time, the aggregate
          of
          the Commitments of the LC Bank and the LC Participants.  All amounts
          drawn upon Letters of Credit shall accrue Discount. Letters of Credit that
          have
          not been drawn upon shall not accrue Discount.  Each of the parties
          hereto acknowledges and agrees that each outstanding and uncancelled standby
          letter of credit issued by PNC for the account of any Originator or Strategic
          Energy prior to the date hereof, which such letters of credit are listed
          on
Schedule V hereto, shall be deemed for all purposes of this Agreement and
          the other Transaction Documents to be a Letter of Credit issued
          hereunder.

         

        Section
          1.12      Issuance of Letters of
          Credit.

         

        (a)           The
          Seller may request that the LC Bank, upon one (1) Business Day prior written
          notice submitted on or before 2:00 p.m., New York time, issue a Letter
          of Credit
          by delivering to the Administrator, the LC Bank’s form of Letter of Credit
          Application (the “Letter of Credit Application”), substantially in the form of
          Annex E attached hereto completed to the satisfaction of the Administrator
          and
          the LC Bank; and, such other certificates, documents and other papers and
          information as the Administrator may reasonably request.  The Seller
          also has the right to give instructions and make agreements with respect
          to any
          Letter of Credit Application and the disposition of documents, and to agree
          with
          the Administrator upon any amendment, extension or renewal of any Letter
          of
          Credit.

         

        (b)           Each
          Letter of Credit shall, among other things, (i) provide for the payment
          of sight
          drafts or other written demands for payment when presented for honor thereunder
          in accordance with the terms thereof and when accompanied by the documents
          described therein,

         

        

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        (ii)
          have
          an expiry date not later than twelve (12) months after such Letter of Credit’s
          date of issuance and (iii) provide that amounts drawn with respect to such
          Letter of Credit may not be redrawn.  Each Letter of Credit shall be
          subject either to the Uniform Customs and Practice for Documentary Credits
          (1993
          Revision), International Chamber of Commerce Publication No. 500 or
          International Chamber of Commerce Publication No. 600, based on which
          publication is in effect at the time that such Letter of Credit is issued,
          and
          any amendments or revisions thereof adhered to by the LC Bank or the
          International Standby Practices (ISP98-International Chamber of Commerce
          Publication Number 590), and any amendments or revisions thereof adhered
          to by
          the LC Bank (the “ISP98 Rules”), as determined by the LC Bank.

         

        (c)           The
          Administrator shall promptly notify the LC Bank, at its address for notices
          hereunder, and each LC Participant of the request by the Seller for a Letter
          of
          Credit hereunder, and shall provide the LC Bank with the Letter of Credit
          Application delivered to the Administrator by the Seller pursuant to paragraph
          (a), above, by the close of business on the day received or if received
          on a day
          that is not a Business Day or on any Business Day after 2:00 p.m., New
          York
          time, on such day, on the next Business Day.

         

        Section
          1.13      Requirements For Issuance of Letters
          of Credit.

         

        The
          Seller shall authorize and direct the LC Bank to name the Seller or any
          Originator as the “Applicant” or “Account Party” of each Letter of
          Credit.

         

        Section
          1.14      Disbursements,
          Reimbursement.

         

        (a)           Immediately
          upon the issuance of each Letter of Credit, each LC Participant shall be
          deemed
          to, and hereby irrevocably and unconditionally agrees to, purchase from
          the LC
          Bank a participation in such Letter of Credit and each drawing thereunder
          in an
          amount equal to such LC Participant’s Pro Rata Share of the face amount of such
          Letter of Credit and the amount of such drawing, respectively.

         

        (b)           In
          the event of any request for a drawing under a Letter of Credit by the
          beneficiary or transferee thereof, the LC Bank will promptly notify the
          Administrator and the Seller of such request.  Provided that it shall
          have received such notice, the Seller shall reimburse (such obligation
          to
          reimburse the LC Bank shall sometimes be referred to as a “Reimbursement
          Obligation”) the LC Bank prior to 12:00 p.m., New York time, on each date that
          an amount is paid by the LC Bank under any Letter of Credit (each such
          date, a
“Drawing Date”) in an amount equal to the amount so paid by the LC
          Bank.  In the event the Seller fails to reimburse the LC Bank for the
          full amount of any drawing under any Letter of Credit by 12:00 p.m., New
          York
          time, on the Drawing Date, the LC Bank will promptly notify each LC Participant
          thereof, and the Seller shall be deemed to have requested that a Funded
          Purchase
          be made by each Conduit Purchaser in the Purchaser Group for the LC Bank
          and the
          LC Participants to be disbursed on the Drawing Date under such Letter of
          Credit
          in accordance with Section 1.1(b).  In no case shall the LC
          Bank or any LC Participant look to Strategic Energy or any Originator for
          any
          reimbursement with respect to a draw.  Any notice given by the LC Bank
          pursuant to this Section 1.14, may be an oral notice, if such oral notice
          is immediately confirmed in writing; provided, however, that the
          lack of any such written confirmation shall not affect the conclusiveness
          or
          binding effect of such oral notice.

         

        

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        (c)           Each
          LC Participant shall, upon any notice pursuant to subclause (b) above,
          make
          available to the LC Bank an amount in immediately available funds equal
          to its
          Pro Rata Share of the amount of the drawing.  If any LC Participant so
          notified fails to make available to the LC Bank the amount of such LC
          Participant’s Pro Rata Share of such amount by no later than 2:00 p.m., New York
          time on the Drawing Date, then interest shall accrue on such LC Participant’s
          obligation to make such payment, from the Drawing Date to the date on which
          such
          LC Participant makes such payment (i) at a rate per annum equal to the
          Federal
          Funds Rate during the first three days following the Drawing Date and (ii)
          at a
          rate per annum equal to the Discount rate applicable to Capital on and
          after the
          fourth day following the Drawing Date.  The LC Bank will promptly give
          notice of the occurrence of the Drawing Date, but failure of the LC Bank
          to give
          any such notice on the Drawing Date or in sufficient time to enable any
          LC
          Participant to effect such payment on such date shall not relieve such
          LC
          Participant from its obligation under this subclause (c), provided that
          such LC
          Participant shall not be obligated to pay interest as provided in subclauses
          (i)
          and (ii) above until and commencing from the date of receipt of notice
          from the
          LC Bank or the Administrator of a drawing.  Each LC Participant’s
          Commitment shall continue until the last to occur of any of the following
          events:  (A) the LC Bank ceases to be obligated to issue or cause to
          be issued Letters of Credit hereunder; (B) no Letter of Credit issued hereunder
          remains outstanding and uncancelled or (C) all Persons (other than the
          Seller)
          have been fully reimbursed for all payments made under or relating to Letters
          of
          Credit.

         

        Section
          1.15      Repayment of Participation
          Advances.

         

        (a)           Upon
          (and only upon) receipt by the LC Bank for its account of immediately available
          funds from or for the account of the Seller (i) in reimbursement of any
          payment
          made by the LC Bank under a Letter of Credit with respect to which any
          LC
          Participant has made a participation advance to the LC Bank, or (ii) in
          payment
          of Discount on the Funded Purchases made or deemed to have been made in
          connection with any such draw, the LC Bank will pay to each LC Participant,
          ratably (based on the outstanding drawn amounts funded by each such LC
          Participant in respect of such Letter of Credit), in the same funds as
          those
          received by the LC Bank; it being understood, that the LC Bank shall
          retain a ratable amount of such funds that were not the subject of any
          payment
          in respect of such Letter of Credit by any LC Participant.

         

        (b)           If
          the LC Bank is required at any time to return to the Seller, or to a trustee,
          receiver, liquidator, custodian, or any official in any insolvency proceeding,
          any portion of the payments made by the Seller to the LC Bank pursuant
          to this
          Agreement in reimbursement of a payment made under the Letter of Credit
          or
          interest or fee thereon, each LC Participant shall, on demand of the LC
          Bank,
          forthwith return to the LC Bank the amount of its Pro Rata Share of any
          amounts
          so returned by the LC Bank plus interest at the Federal Funds Rate, from
          the
          date the payment was first made to such LC Participant through, but not
          including the date the payment is returned by such LC Participant.

         

        Section
          1.16      Documentation.

         

        The
          Seller agrees to be bound by the terms of the Letter of Credit Application
          and
          by the LC Bank’s interpretations of any Letter of Credit issued for the Seller
          and by the LC Bank’s written regulations and customary practices relating to
          letters of credit, though the LC Bank’s interpretation of such regulations and
          practices may be different from the Seller’s own.  In the

         

        

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        event
          of
          a conflict between the Letter of Credit Application and this Agreement,
          this
          Agreement shall govern.  It is understood and agreed that, except in
          the case of gross negligence or willful misconduct by the LC Bank, the
          LC Bank
          shall not be liable for any error, negligence and/or mistakes, whether
          of
          omission or commission, in following the Seller’s instructions or those
          contained in the Letters of Credit or any modifications, amendments or
          supplements thereto.

         

        Section
          1.17      Determination to Honor Drawing
          Request.

         

        In
          determining whether to honor any request for drawing under any Letter of
          Credit
          by the beneficiary thereof, the LC Bank shall be responsible only to determine
          that the documents and certificates required to be delivered under such
          Letter
          of Credit have been delivered and that they comply on their face with the
          requirements of such Letter of Credit and that any other drawing condition
          appearing on the face of such Letter of Credit has been satisfied in the
          manner
          so set forth.

         

        Section
          1.18      Nature of Participation and
          Reimbursement Obligations.

         

        Each
          LC
          Participant’s obligation in accordance with this Agreement to make participation
          advances as a result of a drawing under a Letter of Credit, and the obligations
          of the Seller to reimburse the LC Bank upon a draw under a Letter of Credit,
          shall be absolute, unconditional and irrevocable, and shall be performed
          strictly in accordance with the terms of this Agreement under all circumstances,
          including the following circumstances:

         

        (i)           any
          set-off, counterclaim, recoupment, defense or other right which such LC
          Participant may have against the LC Bank, the Administrator, any Purchaser,
          the
          Seller or any other Person for any reason whatsoever;

         

        (ii)           the
          failure of the Seller or any other Person to comply with the conditions
          set
          forth in this Agreement for the making of a purchase, reinvestments, requests
          for Letters of Credit or otherwise, it being acknowledged that such conditions
          are not required for the making of participation advances
          hereunder;

         

        (iii)           any
          lack of validity or enforceability of any Letter of Credit or any set-off,
          counterclaim, recoupment, defense or other right which Seller or any Originator
          on behalf of which a Letter of Credit has been issued may have against
          the LC
          Bank, the Administrator, any Purchaser, or any other Person for any reason
          whatsoever;

         

        (iv)           any
          claim of breach of warranty that might be made by the Seller, the LC Bank
          or any
          LC Participant against the beneficiary of a Letter of Credit, or the existence
          of any claim, set-off, counterclaim, recoupment, defense or other right
          which
          the Seller, the LC Bank or any LC Participant may have at any time against
          a
          beneficiary, any successor beneficiary or any transferee of any Letter
          of Credit
          or the proceeds thereof (or any Persons for whom any such transferee may
          be
          acting), the LC Bank, any LC Participant, any Purchaser or any other Person,
          whether in connection with this Agreement, the transactions contemplated
          herein
          or any unrelated transaction (including any underlying transaction between
          the
          Seller or any Subsidiaries of the Seller or any Affiliates of the Seller
          and the
          beneficiary for which any Letter of Credit was procured);

         

        

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        (v)           the
          lack of power or authority of any signer of, or lack of validity, sufficiency,
          accuracy, enforceability or genuineness of, any draft, demand, instrument,
          certificate or other document presented under any Letter of Credit, or
          any such
          draft, demand, instrument, certificate or other document proving to be
          forged,
          fraudulent, invalid, defective or insufficient in any respect or any statement
          therein being untrue or inaccurate in any respect, even if the Administrator
          or
          the LC Bank has been notified thereof;

         

        (vi)           payment
          by the LC Bank under any Letter of Credit against presentation of a demand,
          draft or certificate or other document which does not comply with the terms
          of
          such Letter of Credit other than as a result of the gross negligence or
          willful
          misconduct of the LC Bank;

         

        (vii)           the
          solvency of, or any acts or omissions by, any beneficiary of any Letter
          of
          Credit, or any other Person having a role in any transaction or obligation
          relating to a Letter of Credit, or the existence, nature, quality, quantity,
          condition, value or other characteristic of any property or services relating
          to
          a Letter of Credit;

         

        (viii)                      any
          failure by the LC Bank or any of the LC Bank’s Affiliates to issue any Letter of
          Credit in the form requested by the Seller, unless the LC Bank has received
          written notice from the Seller of such failure within three Business Days
          after
          the LC Bank shall have furnished the Seller a copy of such Letter of Credit
          and
          such error is material and no drawing has been made thereon prior to receipt
          of
          such notice;

         

        (ix)           any
          Material Adverse Effect on the Seller, any Originator or any Affiliates
          thereof;

         

        (x)           any
          breach of this Agreement or any Transaction Document by any party
          thereto;

         

        (xi)           the
          occurrence or continuance of an Insolvency Proceeding with respect to the
          Seller, any Originator or any Affiliate thereof;

         

        (xii)           the
          fact that a Termination Event or an Unmatured Termination Event shall have
          occurred and be continuing;

         

        (xiii)                      the
          fact that this Agreement or the obligations of Seller or Servicer hereunder
          shall have been terminated; and

         

        (xiv)                      any
          other circumstance or happening whatsoever, whether or not similar to any
          of the
          foregoing.

         

        Section
          1.19      Indemnity.

         

        In
          addition to other amounts payable hereunder, the Seller hereby agrees to
          protect, indemnify, pay and save harmless the Administrator, the LC Bank,
          each
          LC Participant and any of the LC Bank’s Affiliates that have issued a Letter of
          Credit from and against any and all claims, demands, liabilities, damages,
          taxes
          (other than taxes imposed on or measured by such Person’s net income or net
          profits (or franchise taxes imposed in lieu thereof) by any

         

        

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        Governmental
          Authority under the laws of which such Person is organized, in which its
          principal office is located or in which it is otherwise doing or has done
          business (unless it is doing or has done business solely as a result of
          such
          Person entering into, receiving any payment under, or taking any action
          pursuant
          to, this Agreement)), penalties, interest, judgments, losses, costs, charges
          and
          expenses (including Attorney Costs) which the Administrator, the LC Bank,
          any LC
          Participant or any of their respective Affiliates may incur or be subject
          to as
          a consequence, direct or indirect, of the issuance of any Letter of Credit,
          other than as a result of (a) the gross negligence or willful misconduct
          of the
          party to be indemnified as determined by a final judgment of a court of
          competent jurisdiction or (b) the wrongful dishonor by the LC Bank of a
          proper
          demand for payment made under any Letter of Credit, except if such dishonor
          resulted from any act or omission, whether rightful or wrongful, of any
          present
          or future de jure or de facto Governmental Authority (all such acts or
          omissions
          herein called “Governmental Acts”).

         

        Section
          1.20      Liability for Acts and
          Omissions.

         

        As
          between the Seller, on the one hand, and the Administrator, the LC Bank,
          the LC
          Participants and the other Purchasers, on the other, the Seller assumes
          all
          risks of the acts and omissions of, or misuse of the Letters of Credit
          by, the
          respective beneficiaries of such Letters of Credit. In furtherance and
          not in
          limitation of the respective foregoing, none of the Administrator, the
          LC Bank
          or any other Purchaser shall be responsible for: (i) the form, validity,
          sufficiency, accuracy, genuineness or legal effect of any document submitted
          by
          any party in connection with the application for an issuance of any such
          Letter
          of Credit, even if it should in fact prove to be in any or all respects
          invalid,
          insufficient, inaccurate, fraudulent or forged (even if the LC Bank shall
          have
          been notified thereof); (ii) the validity or sufficiency of any instrument
          transferring or assigning or purporting to transfer or assign any such
          Letter of
          Credit or the rights or benefits thereunder or proceeds thereof, in whole
          or in
          part, which may prove to be invalid or ineffective for any reason; (iii)
          the
          failure of the beneficiary of any such Letter of Credit, or any other party
          to
          which such Letter of Credit may be transferred, to comply fully with any
          conditions required in order to draw upon such Letter of Credit or any
          other
          claim of the Seller against any beneficiary of such Letter of Credit, or
          any
          such transferee, or any dispute between or among the Seller and any beneficiary
          of any Letter of Credit or any such transferee; (iv) errors, omissions,
          interruptions or delays in transmission or delivery of any messages, by
          mail,
          cable, telegraph, telex or otherwise, whether or not they be in cipher;
          (v)
          errors in interpretation of technical terms; (vi) any loss or delay in
          the
          transmission or otherwise of any document required in order to make a drawing
          under any such Letter of Credit or of the proceeds thereof; (vii) the
          misapplication by the beneficiary of any such Letter of Credit of the proceeds
          of any drawing under such Letter of Credit; or (viii) any consequences
          arising
          from causes beyond the control of the Administrator, the LC Bank, any LC
          Participant and any Conduit Purchaser, including any Governmental Acts,
          and none
          of the above shall affect or impair, or prevent the vesting of, any of
          the LC
          Bank’s rights or powers hereunder. Nothing in the preceding sentence shall
          relieve the LC Bank from liability for its gross negligence or willful
          misconduct, as determined by a final non-appealable judgment of a court
          of
          competent jurisdiction, in connection with actions or omissions described
          in
          such clauses (i) through (viii) of such sentence.  In no event shall
          the Administrator, the LC Bank, any LC Participant, any Conduit Purchaser
          or
          their respective Affiliates, be liable to the Seller or any other Person
          for any
          indirect, consequential, incidental, punitive, exemplary or special damages
          or
          expenses

         

        

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        (including
          without limitation attorneys’ fees), or for any damages resulting from any
          change in the value of any property relating to a Letter of Credit.

         

        Without
          limiting the generality of the foregoing, the Administrator, the LC Bank,
          any LC
          Participant and any Conduit Purchaser and each of its Affiliates (i) may
          rely on
          any written communication believed in good faith by such Person to have
          been
          authorized or given by or on behalf of the applicant for a Letter of Credit;
          (ii) may honor any presentation if the documents presented appear on their
          face
          to comply with the terms and conditions of the relevant Letter of Credit;
          (iii)
          may honor a previously dishonored presentation under a Letter of Credit,
          whether
          such dishonor was pursuant to a court order, to settle or compromise any
          claim
          of wrongful dishonor, or otherwise, and shall be entitled to reimbursement
          to
          the same extent as if such presentation had initially been honored, together
          with any interest paid by the LC Bank or its Affiliates; (iv) may honor
          any
          drawing that is payable upon presentation of a statement advising negotiation
          or
          payment, upon receipt of such statement (even if such statement indicates
          that a
          draft or other document is being delivered separately), and shall not be
          liable
          for any failure of any such draft or other document to arrive, or to conform
          in
          any way with the relevant Letter of  Credit; (v) may pay any paying or
          negotiating bank claiming that it rightfully honored under the laws or
          practices
          of the place where such bank is located; and (vi) may settle or adjust
          any claim
          or demand made on the Administrator, the LC Bank, any LC Participant, any
          Conduit Purchaser  or their respective Affiliates, in any way related
          to any order issued at the applicant’s request to an air carrier, a letter of
          guarantee or of indemnity issued to a carrier or any similar document (each
          an
“Order”) and may honor any drawing in connection with any Letter of Credit that
          is the subject of such Order, notwithstanding that any drafts or other
          documents
          presented in connection with such Letter of Credit fail to conform in any
          way
          with such Letter of Credit.

         

        In
          furtherance and extension and not in limitation of the specific provisions
          set
          forth above, any action taken or omitted by the LC Bank under or in connection
          with the Letters of Credit issued by it or any documents and certificates
          delivered thereunder, if taken or omitted in good faith and without gross
          negligence or willful misconduct, as determined by a final non-appealable
          judgment of a court of competent jurisdiction, shall not put the LC Bank
          under
          any resulting liability to the Seller, any LC Participant or any other
          Person.

         

        ARTICLE
          II.

        REPRESENTATIONS
          AND WARRANTIES; COVENANTS; TERMINATION EVENTS

         

        Section
          2.1       Representations and Warranties;
          Covenants.

         

        Each
          of
          the Seller and the Servicer hereby makes the representations and warranties,
          and
          hereby agrees to perform and observe the covenants, applicable to it set
          forth
          in Exhibits III and IV, respectively.

         

        Section
          2.2       Termination
          Events.

         

        If
          any of
          the Termination Events set forth in Exhibit V shall occur, the
          Administrator may, by notice to the Seller, declare the Facility Termination
          Date to have occurred (in which case the Facility Termination Date shall
          be
          deemed to have occurred); provided, that automatically upon the occurrence
          of
          any event (without any requirement for the passage of time

         

        

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        or
          the
          giving of notice) described in paragraph (f) of Exhibit V, the
          Facility Termination Date shall occur.  Upon any such declaration,
          occurrence or deemed occurrence of the Facility Termination Date, the Purchasers
          and the Administrator shall have, in addition to the rights and remedies
          that
          they may have under this Agreement, all other rights and remedies provided
          after
          default under the applicable UCC and under other applicable law, rules
          and
          regulations, which rights and remedies shall be cumulative.

         

        Section
          2.3       Tax Treatment.

         

        It
          is the
          intention of the parties that the transactions contemplated by this Agreement
          will create a debt obligation of the Seller for United States federal,
          state and
          local income and franchise tax purposes.  Unless otherwise required by
          law, each party to this Agreement, including without limitation any successors
          and assigns, agrees to treat the transactions accordingly for all such
          purposes.

         

        ARTICLE
          III.

        INDEMNIFICATION

            Section
          3.1        Indemnities by the
          Seller.

         

        Without
          limiting any other rights that the Administrator, the Purchasers, the Liquidity
          Providers, any other Program Support Provider or any of their respective
          Affiliates, employees, officers, directors, agents, counsel, successors,
          transferees or assigns (each, an “Indemnified Party”) may have hereunder
          or under applicable law, rules or regulations, the Seller hereby agrees
          to
          indemnify each Indemnified Party from and against any and all claims, damages,
          expenses, costs, losses, liabilities and penalties (including Attorney
          Costs)
          (all of the foregoing being collectively referred to as “Indemnified
          Amounts”) arising out of or resulting from this Agreement (whether directly
          or indirectly), the use of proceeds of purchases or reinvestments, the
          ownership
          of the Purchased Interest, or any interest therein, or in respect of any
          Receivable, Related Security or Contract, excluding, however:  (a)
          Indemnified Amounts to the extent resulting from gross negligence or willful
          misconduct on the part of such Indemnified Party or its employees, officers,
          directors, agents or counsel, (b) any indemnification which has the effect
          of
          recourse for the non-payment of the Receivables to any indemnitor (except
          as
          otherwise specifically provided under Section 1.4(e) and this Section
          3.1), or (c) overall net income taxes or franchise taxes imposed on such
          Indemnified Party by the jurisdiction under the laws of which such Indemnified
          Party is organized or any political subdivision thereof, or in which its
          principal office is located or in which it is otherwise doing, or has done,
          business (unless it is doing business, or has done business, solely as
          a result
          of such Indemnified Party entering into, receiving any payment under, or
          enforcing its rights pursuant to, this Agreement).  Without limiting
          or being limited by the foregoing, and subject to the exclusions set forth
          in
          the preceding sentence, the Seller shall pay on demand (which demand shall
          be
          accompanied by documentation of the Indemnified Amounts, in reasonable
          detail)
          to each Indemnified Party any and all amounts necessary to indemnify such
          Indemnified Party from and against any and all Indemnified Amounts relating
          to
          or resulting from any of the following:

         

        (i)           the
          failure of any Receivable included in the calculation of the Net Receivables
          Pool Balance as an Eligible Receivable to be an Eligible Receivable, the
          failure
          of

         

      

       

      20            STRATEGIC
        ENERGY - RPA
        

        
          

        

        

        any
          information contained in an Information Package to be true and
          correct, or the failure of any other information provided to any Purchaser
          or
          the Administrator with respect to Receivables or this Agreement to be true
          and
          correct,

         

        (ii)           the
          failure of any representation, warranty or statement made or deemed made
          by the
          Seller (or any of its officers) under or in connection with this Agreement
          or
          any other Transaction Document to have been true and correct as of the
          date made
          or deemed made in all respects when made,

         

        (iii)           the
          failure by the Seller to comply with any applicable law, rule or regulation
          with
          respect to any Pool Receivable or the related Contract, or the failure
          of any
          Pool Receivable or the related Contract to conform to any such applicable
          law,
          rule or regulation,

         

        (iv)           the
          failure to vest and maintain vested in the Administrator (on behalf of
          the
          Purchasers) a valid and enforceable:  (i) perfected undivided variable
          percentage ownership interest, to the extent of the Purchased Interest,
          in the
          Receivables in, or purporting to be in, the Receivables Pool and the other
          Pool
          Assets, or (ii) first priority perfected security interest in the Pool
          Assets,
          in each case, free and clear of any Adverse Claim,

         

        (v)           the
          failure to have filed, or any delay in filing, financing statements or
          other
          similar instruments or documents under the UCC of any applicable jurisdiction
          or
          other applicable laws with respect to any Receivables in, or purporting
          to be
          in, the Receivables Pool and the other Pool Assets, whether at the time
          of any
          purchase or reinvestment or at any subsequent time,

         

        (vi)           any
          dispute, claim, offset or defense (other than discharge in bankruptcy of
          the
          Obligor) of the Obligor to the payment of any Receivable in, or purporting
          to be
          in, the Receivables Pool (including a defense based on such Receivable
          or the
          related Contract not being a legal, valid and binding obligation of such
          Obligor
          enforceable against it in accordance with its terms), or any other claim
          resulting from the sale of the goods or services related to such Receivable
          or
          the furnishing or failure to furnish such goods or services or relating
          to
          collection activities with respect to such Receivable (if such collection
          activities were performed by the Seller or any of its Affiliates acting
          as
          Servicer or by any agent or independent contractor retained by the Seller
          or any
          of its Affiliates),

         

        (vii)           any
          failure of the Seller (or any of its Affiliates acting as the Servicer)
          to
          perform its duties or obligations in accordance with the provisions hereof
          or
          under the Contracts,

         

        (viii)          any
          environmental, products liability or other claim, investigation, litigation
          or
          proceeding arising out of or in connection with merchandise, insurance
          or
          services that are the subject of any Contract,

         

        (ix)           the
          commingling of Collections at any time with other funds (except as contemplated
          by Section 2(k) of Exhibit IV to the Agreement),

         

        (x)           the
          use of proceeds of purchases or reinvestments or the issuance of any Letter
          of
          Credit by the Seller or Servicer,

         

        

        21        STRATEGIC
          ENERGY
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        (xi)           any
          failure of a Lock-Box Bank to comply with the terms of a related Lock-Box
          Agreement, or

         

        (xii)           any
          reduction in Capital as a result of the distribution of Collections pursuant
          to
Section 1.4(d), if all or a portion of such distributions shall
          thereafter be rescinded or otherwise must be returned for any reason.

         

        Section
          3.2       Indemnities
          by the Servicer.

         

        Without
          limiting any other rights that the Administrator, any
          Purchasers, any Liquidity Provider, any other Program Support Provider
          or any
          other Indemnified Party may have hereunder or under applicable law, rules
          or
          regulations, the Servicer hereby agrees to indemnify each Indemnified Party
          from
          and against any and all Indemnified Amounts arising out of or resulting
          from
          (whether directly or indirectly):  (a) the failure of any information
          contained in an Information Package to be true and correct, or the failure
          of
          any other information provided to any such Indemnified Party by, or on
          behalf
          of, the Servicer to be true and correct, (b) the failure of any representation,
          warranty or statement made or deemed made by the Servicer (or any of its
          officers) under or in connection with this Agreement or any other Transaction
          Document to which it is a party to have been true and correct as of the
          date
          made or deemed made in all respects when made, (c) the failure by the Servicer
          to comply with any applicable law, rule or regulation with respect to any
          Pool
          Receivable or the related Contract, (d) any dispute, claim, offset or defense
          of
          the Obligor to the payment of any Receivable in, or purporting to be in,
          the
          Receivables Pool resulting from or related to the collection activities
          with
          respect to such Receivable, or (e) any failure of the Servicer to perform
          its
          duties or obligations in accordance with the provisions hereof or any other
          Transaction Document to which it is a party.

         

        ARTICLE
          IV.

        ADMINISTRATION
          AND COLLECTIONS

         

        Section
          4.1       Appointment
          and Authorization of the Servicer.

         

        (a)           The
          servicing, administering and collection of the Pool Receivables shall be
          conducted by the Person so designated from time to time as the Servicer
          in
          accordance with this Section.  Until the Administrator gives notice to
          Strategic Energy (in accordance with this Section) of the designation of
          a new
          Servicer, Strategic Energy is hereby designated as, and hereby agrees to
          perform
          the duties and obligations of, the Servicer pursuant to the terms
          hereof.  Upon the occurrence of a Termination Event, the Administrator
          may designate as Servicer any Person (including itself) to succeed Strategic
          Energy or any successor Servicer, on the condition in each case that any
          such
          Person so designated shall agree to perform the duties and obligations
          of the
          Servicer pursuant to the terms hereof.

         

        (b)           Upon
          the designation of a successor Servicer as set forth in clause (a),
          Strategic Energy agrees that it will terminate its activities as Servicer
          hereunder in a manner that the Administrator determines will facilitate
          the
          transition of the performance of such activities to the new Servicer, and
          Strategic Energy shall cooperate with and assist such new
          Servicer.  Such cooperation shall include access to and transfer of
          related records and use by the new Servicer of

         

        

        22        STRATEGIC
          ENERGY
          - RPA 
          
            

          

        

        

        all
          licenses (or the obtaining of new licenses), hardware and
          software necessary or desirable to collect the Pool Receivables and the
          Related
          Security.

         

        (c)           Strategic
          Energy acknowledges that, in making its decision to execute and deliver
          this
          Agreement, the Administrator and the Conduit Purchasers have relied on
          Strategic
          Energy’s agreement to act as Servicer hereunder.  Accordingly,
          Strategic Energy agrees that it will not voluntarily resign as Servicer.

         

        (d)           The
          Servicer may delegate its duties and obligations hereunder to the Originators
          (each a “Sub-Servicer” and collectively, the “Sub-Servicers”);
provided, that, in such delegation:  (i) each such Sub-Servicer
          agrees in writing to perform the duties and obligations of the Servicer
          pursuant
          to the terms hereof, (ii)the Servicer shall remain primarily liable for
          the
          performance of the duties and obligations so delegated, (iii) the Seller,
          the
          Administrator and the Conduit Purchasers shall have the right to look solely
          to
          the Servicer for performance, and (iv) the terms of any agreement with
          any
          Sub-Servicer shall provide that the Administrator may terminate such agreement
          upon the termination of the Servicer hereunder by giving notice of its
          desire to
          terminate such agreement to the Servicer (and the Servicer shall provide
          appropriate notice to each such Sub-Servicer); provided, however,
          that if any such delegation is to any Person other than any Originator,
          the
          Administrator shall have consented in writing in advance to such
          delegation.

         

        Section
          4.2       Duties of the
          Servicer.

         

        (a)           The
          Servicer shall take or cause to be taken all such action to administer
          and
          collect each Pool Receivable from time to time, all in accordance with
          this
          Agreement and all applicable laws, rules and regulations, with reasonable
          care
          and diligence, and in accordance with the Credit and Collection
          Policy.  The Servicer shall set aside, for the accounts of the Seller
          and each Purchaser, the amount of the Collections to which each is entitled
          in
          accordance with Article I.  The Servicer may, in accordance
          with the applicable Credit and Collection Policy, extend the maturity of
          any
          Pool Receivable and extend the maturity or adjust the Outstanding Balance
          of any
          Defaulted Receivable as the Servicer may determine to be appropriate to
          maximize
          Collections thereof; provided, however, that:  for the
          purposes of this Agreement, (i) such extension shall not change the number
          of
          days such Pool Receivable has remained unpaid from the date of the invoice
          date
          related to such Pool Receivable, (ii) such extension or adjustment shall
          not
          alter the status of such Pool Receivable as a Delinquent Receivable or
          a
          Defaulted Receivable or limit the rights of any Purchaser or the Administrator
          under this Agreement and (iii) after knowledge by or notice to, the Servicer
          that a Termination Event has occurred and is continuing and Strategic Energy
          or
          an Affiliate thereof is serving as the Servicer, Strategic Energy or such
          Affiliate may make such extension or adjustment only upon the prior approval
          of
          the Administrator.  The Seller shall deliver to the Servicer and the
          Servicer shall hold for the benefit of the Seller and the Administrator
          (individually and for the benefit of Purchasers), in accordance with their
          respective interests, all records and documents (including computer tapes
          or
          disks) with respect to each Pool Receivable.  Notwithstanding anything
          to the contrary contained herein, following the occurrence and continuation
          of a
          Termination Event, the Administrator may direct the Servicer (whether the
          Servicer is Strategic Energy or any other Person) to commence or settle
          any
          legal action to enforce collection of any Pool Receivable or to foreclose
          upon
          or repossess any Related Security.

         

        

        23        STRATEGIC
          ENERGY
          - RPA 
          
            

          

        

        

        (b)           The
          Servicer shall, as soon as practicable following actual receipt by the
          Servicer
          or any Sub-Servicer of collected funds, turn over to the Seller the collections
          of any indebtedness that is not a Pool Receivable, less, if Strategic Energy
          or
          an Affiliate thereof is not the Servicer, all reasonable and appropriate
          out-of-pocket costs and expenses of such Servicer of servicing, collecting
          and
          administering such collections.  The Servicer, if other than Strategic
          Energy or an Affiliate thereof, shall, as soon as practicable upon demand,
          deliver to the Seller all records in its possession that evidence or relate
          to
          any indebtedness that is not a Pool Receivable, and copies of records in
          its
          possession that evidence or relate to any indebtedness that is a Pool
          Receivable.

         

        (c)           The
          Servicer’s obligations hereunder shall terminate on the latest
          of:  (i) the Facility Termination Date, (ii) the date on which no
          Capital of or Discount in respect of the Purchased Interest shall be
          outstanding, (iii) the date on which an amount equal to 100% of the LC
          Participation Amount has been deposited in the LC Collateral Account or
          the
          Letters of Credit have expired and (iv) the date on which all amounts
          required to be paid to the Purchasers, the Administrator and any other
          Indemnified Party or Affected Person hereunder shall have been paid in
          full.

         

        After
          such termination, if Strategic Energy or an Affiliate
          thereof was not the Servicer on the date of such termination, the Servicer
          shall
          promptly deliver to the Seller all books, records and related materials
          that the
          Seller previously provided to the Servicer, or that have been obtained
          by the
          Servicer, in connection with this Agreement.

         

        Section
          4.3       Lock-Box
          Arrangements.

         

        Prior
          to the initial purchase hereunder, the Seller shall enter
          into Lock-Box Agreements with all of the Lock-Box Banks and deliver counterparts
          thereof to the Administrator.  Upon the occurrence of a Termination
          Event, the Administrator may at any time thereafter give notice to each
          Lock-Box
          Bank that the Administrator is exercising its rights under the Lock-Box
          Agreements to do any or all of the following:  (a) to have the
          exclusive ownership and control of the Lock-Box Accounts transferred to
          the
          Administrator and to exercise exclusive dominion and control over the funds
          deposited therein, (b) to have the proceeds that are sent to the respective
          Lock-Box Accounts redirected pursuant to the Administrator’s instructions rather
          than deposited in the applicable Lock-Box Account, and (c) to take any
          or all
          other actions permitted under the applicable Lock-Box Agreement.  The
          Seller hereby agrees that if the Administrator at any time takes any action
          set
          forth in the preceding sentence, the Administrator shall have exclusive
          control
          of the proceeds (including Collections) of all Pool Receivables and the
          Seller
          hereby further agrees to take any other action that the Administrator may
          reasonably request to transfer such control.  Any proceeds of Pool
          Receivables received by the Seller or the Servicer thereafter shall be
          sent
          immediately to the Administrator.  The parties hereto hereby
          acknowledge that if at any time the Administrator takes control of any
          Lock-Box
          Account, the Administrator shall not have any rights to the funds therein
          in
          excess of the unpaid amounts due to the Administrator, the Purchasers or
          any
          other Person hereunder, and the Administrator shall distribute or cause
          to be
          distributed such funds in accordance with Section 4.2(b) and Article
          I (in each case as if such funds were held by the Servicer
          thereunder).  The Administrator hereby agrees that if it exercises its
          remedies under this Section 4.3, it shall apply the funds over which it
          exercises exclusive dominion and control to satisfy the liabilities and
          obligations of the Seller under this Agreement and the other Transaction
          Documents.

         

        

         24        STRATEGIC
          ENERGY
          - RPA
          
            

          

        

        

        Section
          4.4       Enforcement
          Rights.

         

        (a)           At
          any time following the occurrence of and the continuation of a Termination
          Event:

         

        (i)           the
          Administrator may direct the Obligors that payment of all amounts payable
          under
          any Pool Receivable is to be made directly to the Administrator or its
          designee,

         

        (ii)           the
          Administrator may instruct the Seller or the Servicer to give notice of
          the
          Purchasers’ interest in Pool Receivables to each Obligor, which notice shall
          direct that payments be made directly to the Administrator or its designee,
          and
          the Seller or the Servicer, as the case may be, shall give such notice
          at the
          expense of the Seller or the Servicer, as the case may be; provided, that
          if the Seller or the Servicer, as the case may be, fails to so notify each
          Obligor, the Administrator (at the Seller’s or the Servicer’s, as the case may
          be, expense) may so notify the Obligors,

         

        (iii)           the
          Administrator may request the Servicer to, and upon such request the Servicer
          shall:  (A) assemble all of the records necessary or desirable to
          collect the Pool Receivables and the Related Security, and transfer or
          license
          to a successor Servicer the use of all software necessary or desirable
          to
          collect the Pool Receivables and the Related Security, and make the same
          available to the Administrator or its designee at a place selected by the
          Administrator, and (B) segregate all cash, checks and other instruments
          received
          by it from time to time constituting Collections in a manner reasonably
          acceptable to the Administrator and, promptly upon receipt, remit all such
          cash,
          checks and instruments, duly endorsed or with duly executed instruments
          of
          transfer, to the Administrator or its designee, and

         

        (iv)           the
          Administrator may collect any amounts due from any Originator under the
          Sale
          Agreement.

         

        (b)           The
          Seller hereby authorizes the Administrator, and irrevocably appoints the
          Administrator as its attorney-in-fact with full power of substitution and
          with
          full authority in the place and stead of the Seller, which appointment
          is
          coupled with an interest, to take any and all steps in the name of the
          Seller
          and on behalf of the Seller necessary or desirable, in the determination
          of the
          Administrator, to collect any and all amounts or portions thereof due under
          any
          and all Pool Assets, including endorsing the name of the Seller on checks
          and
          other instruments representing Collections and enforcing such Pool
          Assets.  The Administrator agrees that it will not take any such steps
          in the name of the Seller and on behalf of the Seller unless a Termination
          Event
          has occurred and is continuing.  Notwithstanding anything to the
          contrary contained in this subsection, none of the powers conferred upon
          such
          attorney-in-fact pursuant to the preceding sentence shall subject such
          attorney-in-fact to any liability if any action taken by it shall prove
          to be
          inadequate or invalid, nor shall they confer any obligations upon such
          attorney-in-fact in any manner whatsoever.

         

        Section
          4.5       Responsibilities of the
          Seller.

         

        (a)           Anything
          herein to the contrary notwithstanding, the Seller shall:  (i) perform
          all of its obligations, if any, under the Contracts related to the Pool
          Receivables to the same extent as if interests in such Pool Receivables
          had not
          been transferred hereunder, and the exercise by

         

        

        25        STRATEGIC
          ENERGY
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        the
          Administrator or any Purchaser of their respective rights
          hereunder shall not relieve the Seller from such obligations, and (ii)
          pay when
          due any taxes, including any sales taxes payable in connection with the
          Pool
          Receivables and their creation and satisfaction.  Neither the
          Administrator nor any Purchaser shall have any obligation or liability
          with
          respect to any Pool Asset, nor shall either of them be obligated to perform
          any
          of the obligations of the Seller, Strategic Energy or any Originator
          thereunder.

         

        (b)           Strategic
          Energy hereby irrevocably agrees that if at any time it shall cease to
          be the
          Servicer hereunder, it shall act (if the then-current Servicer so requests)
          as
          the data-processing agent of the Servicer and, in such capacity, Strategic
          Energy shall conduct the data-processing functions of the administration
          of the
          Receivables and the Collections thereon in substantially the same way that
          Strategic Energy conducted such data-processing functions while it acted
          as the
          Servicer.

         

        Section
          4.6       Servicing
          Fee.

         

        (a)           Subject
          to clause (b), the Servicer shall be paid a fee equal to 1.0% per
          annum  (the “Servicing Fee Rate”) of the daily average
          aggregate Outstanding Balance of the Pool Receivables.  The
          Purchasers’ Share of such fee shall be paid through the distributions
          contemplated by Section 1.4, and the Seller’s Share of such fee shall be
          paid by the Seller on each Monthly Settlement Date.

         

        (b)           If
          the Servicer ceases to be Strategic Energy or an Affiliate thereof, the
          servicing fee shall be the greater of:  (i) the amount calculated
          pursuant to clause (a), and (ii) an alternative amount specified by the
          successor Servicer not to exceed 105% of the aggregate reasonable costs
          and
          expenses incurred by such successor Servicer in connection with the performance
          of its obligations as Servicer.

         

        ARTICLE
          V.

        ADMINISTRATOR

         

        Section
          5.1       Appointment,
          Authorization and Action of the Administrator.

         

        (a)           Each
          Purchaser and Purchaser Agent hereby accepts the appointment of and irrevocably
          designates and appoints PNC as the “Administrator” hereunder and authorizes the
          Administrator to take such actions and to exercise such powers as are delegated
          to the Administrator hereby and to exercise such other powers as are reasonably
          incidental thereto.  The Administrator shall hold, in its name, for
          the benefit of each Purchaser, ratably, the Purchased Interest.  The
          Administrator shall not have any duties other than those expressly set
          forth
          herein or any fiduciary relationship with any Purchaser or Purchaser Agent,
          and
          no implied obligations or liabilities shall be read into this Agreement,
          or
          otherwise exist, against the Administrator.  The Administrator does
          not assume, nor shall it be deemed to have assumed, any obligation to,
          or
          relationship of trust or agency with, the Seller or Servicer.  Except
          to the extent provided in Section 5.10 hereof, notwithstanding any
          provision of this Agreement or any other Transaction Document to the contrary,
          in no event shall the Administrator ever be required to take any action
          which
          exposes the Administrator to personal liability or which is contrary to
          the
          provision of any Transaction Document or applicable law, rule or
          regulation.  The appointment

         

        

         26        STRATEGIC
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        and
          authority of the Administrator hereunder shall terminate on the date following
          the Facility Termination Date on which no Capital of or Discount in respect
          of
          the Purchased Interest shall be outstanding, all Letters of Credit shall
          be
          cancelled or expired and all amounts due to each Person under each of the
          Transaction Documents shall have been paid in full.

         

        (b)           Each
          Purchaser hereby irrevocably designates and appoints the respective institution
          identified as the Purchaser Agent for such Purchaser’s Purchaser Group on the
          signature pages hereto or in the Assumption Agreement pursuant to which
          such
          Purchaser becomes a party hereto.  Each Purchaser hereby authorizes
          its Purchaser Agent to take such action on its behalf under the provisions
          of
          this Agreement and to exercise such powers and perform such duties as are
          expressly delegated to such Purchaser Agent by the terms of this Agreement,
          if
          any, together with such other powers as are reasonably incidental
          thereto.  Notwithstanding any provision to the contrary elsewhere in
          this Agreement, no Purchaser Agent shall have any duties or responsibilities,
          except those expressly set forth herein, or any fiduciary relationship
          with any
          Purchaser or other Purchaser Agent or the Administrator, and no implied
          covenants, functions, responsibilities, duties, obligations or liabilities
          on
          the part of such Purchaser Agent shall be read into this Agreement or otherwise
          exist against such Purchaser Agent.

         

        (c)           Except
          as otherwise specifically provided in this Agreement, the provisions of
          this
          Article V are solely for the benefit of the Purchaser Agents, the Administrator
          and the Purchasers, and none of the Seller or Servicer shall have any rights
          as
          a third-party beneficiary or otherwise under any of the provisions of this
          Article V, except that this Article V shall not affect any
          obligations which any Purchaser Agent, the Administrator or any Purchaser
          may
          have to the Seller or the Servicer under the other provisions of this
          Agreement.  Furthermore, no Purchaser shall have any rights as a third
          party beneficiary or otherwise under any of the provisions hereof in respect
          of
          a Purchaser Agent which is not the Purchaser Agent for such
          Purchaser.

         

        (d)           In
          performing its functions and duties hereunder, the Administrator shall
          act
          solely as the agent of the Purchasers and the Purchaser Agents and does
          not
          assume nor shall be deemed to have assumed any obligation or relationship
          of
          trust or agency with or for the Seller or Servicer or any of their successors
          and assigns.  In performing its functions and duties hereunder, each
          Purchaser Agent shall act solely as the agent of its respective Purchaser
          and
          does not assume nor shall be deemed to have assumed any obligation or
          relationship of trust or agency with or for the Seller, the Servicer, any
          other
          Purchaser, any other Purchaser Agent or the Administrator, or any of their
          respective successors and assigns.

         

        Section
          5.2       Nature of Administrator’s
          Duties.

         

        (a)           The
          Administrator shall have no duties or responsibilities except those expressly
          set forth in this Agreement or in the other Transaction
          Documents.  The duties of the Administrator shall be mechanical and
          administrative in nature.  The Administrator shall not have, by reason
          of this Agreement, a fiduciary relationship in respect of any
          Purchaser.  Nothing in this Agreement or any of the Transaction
          Documents, express or implied, is intended to or shall be construed to
          impose
          upon the Administrator any obligations in respect of this Agreement or
          any of
          the Transaction Documents except as expressly set forth herein or
          therein.  The Administrator shall not have any duty or responsibility,
          either initially or on a continuing basis,

         

        27        STRATEGIC
          ENERGY - RPA

        
          

        

        

        to
          provide any Purchaser with any credit or other information with respect
          to the
          Seller, any Originator or the Servicer, whether coming into its possession
          before the date hereof or at any time or times thereafter.  If the
          Administrator seeks the consent or approval of the Purchasers or the Purchaser
          Agents to the taking or refraining from taking any action hereunder, the
          Administrator shall send notice thereof to each Purchaser and each Purchaser
          Agent.

         

        (b)           The
          Administrator may execute any of its duties through agents or attorneys-in-fact
          and shall be entitled to advice of counsel concerning all matters pertaining
          to
          such duties.  The Administrator shall not be responsible for the
          negligence or misconduct of any agents or attorneys-in-fact selected by
          it with
          reasonable care.

         

        Section
          5.3       Exculpatory
          Provisions.

         

        None
          of
          the Purchaser Agents, the Administrator or any of their directors, officers,
          agents or employees shall be liable for any action taken or omitted (i)
          with the
          consent or at the direction of the Majority Purchaser Agents (or in the
          case of
          any Purchaser Agent, the Purchasers within its Purchaser Group that have
          a
          majority of the Group Commitment of such Purchaser Group) or (ii) in the
          absence
          of such Person’s gross negligence or willful misconduct.  The
          Administrator shall not be responsible to any Purchaser, Purchaser Agent
          or
          other Person for (i) any recitals, representations, warranties or other
          statements made by the Seller, Servicer, any Originator or any of their
          Affiliates, (ii) the value, validity, effectiveness, genuineness, enforceability
          or sufficiency of any Transaction Document, (iii) any failure of the Seller,
          the
          Servicer, any Originator or any of their Affiliates to perform any obligation
          hereunder or under the other Transaction Documents to which it is a party
          (or
          under any Contract), or (iv) the satisfaction of any condition specified
          in
Exhibit II.  The Administrator shall not have any obligation to
          any Purchaser or Purchaser Agent to ascertain or inquire about the observance
          or
          performance of any agreement contained in any Transaction Document or to
          inspect
          the properties, books or records of the Seller, Servicer, any Originator
          or any
          of their respective Affiliates.

         

        Section
          5.4       Reliance by
          Administrator.

         

        (a)           Each
          Purchaser Agent and the Administrator shall in all cases be entitled to
          rely,
          and shall be fully protected in relying, upon any document or other writing
          or
          conversation believed by it to be genuine and correct and to have been
          signed,
          sent or made by the proper Person and upon advice and statements of legal
          counsel (including counsel to the Seller), independent accountants and
          other
          experts selected by the Administrator.  Each Purchaser Agent and the
          Administrator shall in all cases be fully justified in failing or refusing
          to
          take any action under any Transaction Document unless it shall first receive
          such advice or concurrence of the Majority Purchaser Agents (or in the
          case of
          any Purchaser Agent, the Purchasers within its Purchaser Group that have
          a
          majority of the Group Commitment of such Purchaser Group), and assurance
          of its
          indemnification, as it deems appropriate.

         

        (b)           The
          Administrator shall in all cases be fully protected in acting, or in refraining
          from acting, under this Agreement in accordance with a request of the Majority
          Purchaser Agents (or in the case of any Purchaser Agent, the Purchasers
          within
          its Purchaser Group that have a majority of the Group Commitment of such
          Purchaser Group) and such request and any

         

        28        STRATEGIC
          ENERGY
          - RPA

        
          

        

        

        action
          taken or failure to act pursuant thereto shall be binding upon all Purchasers,
          Purchaser Agents and the Administrator.

         

        (c)           The
          Purchasers within each Purchaser Group with a majority of the Group Commitment
          of such Purchaser Group shall be entitled to request or direct the related
          Purchaser Agent to take action, or refrain from taking action, under this
          Agreement on behalf of such Purchasers.  Such Purchaser Agent shall in
          all cases be fully protected in acting, or in refraining from acting, under
          this
          Agreement in accordance with a request of such majority Purchasers, and
          such
          request and any action taken or failure to act pursuant thereto shall be
          binding
          upon all of such Purchaser Agent’s Purchasers.

         

        (d)           Unless
          otherwise advised in writing by a Purchaser Agent or by any Purchaser on
          whose
          behalf such Purchaser Agent is purportedly acting, each party to this Agreement
          may assume that (i) such Purchaser Agent is acting for the benefit of each
          of
          the Purchasers in respect of which such Purchaser Agent is identified as
          being
          the “Purchaser Agent” in the definition of “Purchaser Agent” hereto, as well as
          for the benefit of each assignee or other transferee from any such Person,
          and
          (ii) each action taken by such Purchaser Agent has been duly authorized
          and
          approved by all necessary action on the part of the Purchasers on whose
          behalf
          it is purportedly acting.  Each Purchaser Agent and its Purchaser(s)
          shall agree amongst themselves as to the circumstances and procedures for
          removal, resignation and replacement of such Purchaser Agent.

         

        Section
          5.5       Notice of Termination
          Events.

         

        Neither
          any Purchaser Agent nor the Administrator shall be deemed to have knowledge
          or
          notice of the occurrence of any Termination Event or Unmatured Termination
          Event
          unless the Administrator and the Purchaser Agents have received notice
          from any
          Purchaser, the Servicer or the Seller stating that a Termination Event
          or
          Unmatured Termination Event has occurred hereunder and describing such
          Termination Event or Unmatured Termination Event.  In the event that
          the Administrator receives such a notice, it shall promptly give notice
          thereof
          to each Purchaser Agent and Seller, whereupon each such Purchaser Agent
          shall
          promptly give notice thereof to its Purchasers.  In the event that a
          Purchaser or Purchaser Agent receives such a notice (other than from the
          Administrator), it shall promptly give notice thereof to the Administrator
          and
          Seller.  The Administrator shall take such action concerning a
          Termination Event or Unmatured Termination Event as may be directed by
          the
          Majority Purchaser Agents (unless such action otherwise requires the consent
          of
          all Purchasers, the LC Bank and/or the Required LC Participants), but until
          the
          Administrator receives such directions, the Administrator may (but shall
          not be
          obligated to) take such action, or refrain from taking such action, as
          the
          Administrator deems advisable and in the best interests of the Purchasers
          and
          Purchaser Agents.

         

        Section
          5.6       Non-Reliance on
          Administrator.

         

        Each
          Purchaser and Purchaser Agent expressly acknowledges that none of the
          Administrator, the Purchaser Agents nor any of their respective officers,
          directors, employees, agents, attorneys-in-fact or Affiliates has made
          any
          representations or warranties to it and that no act by the Administrator,
          or any
          Purchaser Agent hereafter taken, including any review of the

         

        29        STRATEGIC
          ENERGY
          - RPA

        
          

        

        

        affairs
          of the Seller, Servicer or any Originator, shall be deemed to constitute
          any
          representation or warranty by the Administrator or such Purchaser Agent,
          as
          applicable.  Each Purchaser and Purchaser Agent represents and
          warrants to the Administrator, the other Purchasers and Purchaser Agents
          that it
          has, independently and without reliance upon the Administrator or any other
          Purchaser or Purchaser Agent and based on such documents and information
          as it
          has deemed appropriate, it has made and will continue to make its own appraisal
          of and investigation into the business, operations, property, prospects,
          financial and other conditions and creditworthiness of the Seller, Servicer
          or
          the Originators, and the Receivables and it has made and will continue
          to make
          its own decision to enter into this Agreement and to take, or omit, action
          under
          any Transaction Document.  Except for items specifically required to
          be delivered hereunder, the Administrator shall not have any duty or
          responsibility to provide any Purchaser or Purchaser Agent with any information
          concerning the Seller, Servicer or the Originators or any of their Affiliates
          that comes into the possession of the Administrator or any of its officers,
          directors, employees, agents, attorneys-in-fact or Affiliates.

         

        Section
          5.7       Administrator, Purchasers,
          Purchaser Agents and Affiliates.

         

        Each
          of
          the Purchasers, Purchaser Agents and the Administrator and their respective
          Affiliates may extend credit to, accept deposits from and generally engage
          in
          any kind of banking, trust, debt, equity or other business with the Seller,
          Servicer or any Originator or any of their respective Affiliates and PNC
          may
          exercise or refrain from exercising its rights and powers as if it were
          not the
          Administrator.  With respect to the acquisition of the Pool Assets
          pursuant to this Agreement, each of the Purchaser Agents and the Administrator,
          to the extent they are also a Purchaser, shall have the same rights and
          powers
          under this Agreement as any Purchaser and may exercise the same as though
          it
          were not the Purchaser Agent or the Administrator, as applicable, and the
          terms
“Purchaser” and “Purchasers” shall include the Purchaser Agent and the
          Administrator in their individual capacities.

         

        Section
          5.8       Indemnification.

         

        Each
          LC
          Participant agrees to indemnify and hold harmless the Administrator and
          the LC
          Bank and the officers, directors, employees, representatives and agents
          of the
          Administrator and the LC Bank (to the extent not reimbursed by the Seller,
          the
          Servicer or any Originator and without limiting the obligation of the Seller,
          the Servicer or any Originator to do so), ratably according to its Pro
          Rata
          Share, from and against any and all liabilities, obligations, losses, damages,
          penalties, actions, judgments, suits, settlements, costs, expenses and
          disbursements of any kind whatsoever (including in connection with any
          investigative or threatened proceeding, whether or not the Administrator,
          the LC
          Bank or such Person shall be designated a party, thereto) that may at any
          time
          be imposed on, incurred by or asserted against the Administrator, the LC
          Bank or
          such Person as a result of, or related to, any of the transactions contemplated
          by the Transaction Documents or the execution, delivery or performance
          of the
          Transaction Documents or any other document furnished in connection therewith
          (but excluding any such liabilities, obligations, losses, damages, penalties,
          actions, judgments, settlements, suits, costs, expenses or disbursements
          resulting solely from the Administrator’s or the LC Bank’s gross negligence or
          willful misconduct, as finally determined by a final non-appealable judgment
          of
          a court of competent jurisdiction.  Without limiting the generality of
          the foregoing, each LC Participant agrees to reimburse the Administrator
          and the
          LC Bank, ratably according to its Pro

         

         

        30        STRATEGIC
          ENERGY - RPA

        
          

        

        

        Rata
          Shares, promptly upon demand, for any out-of-pocket expenses (including
          reasonable counsel fees) incurred by the Administrator or the LC Bank in
          connection with the administration, modification, amendment or enforcement
          (whether through negotiations, legal proceedings or otherwise) of, or legal
          advice in respect of its rights or responsibilities under, this
          Agreement.

         

        Section
          5.9       Successor
          Administrator.

         

        The
          Administrator may, resign at any time by giving thirty (30) Business Days’
notice thereof to the Seller, the Servicer, each Purchaser and each Purchaser
          Agent.  Such resignation shall not become effective until a successor
          Administrator is appointed by the Majority Purchaser Agents and the LC
          Bank and
          has accepted such appointment with the consent of the Seller (such consent
          not
          to be unreasonably withheld, conditioned or delayed); provided, however,
          that
          the consent of the Seller shall not be required if (i) a Termination Event
          has
          occurred and is continuing or (ii) such successor Administrator is any
          Purchaser
          Agent or an Affiliate of PNC or a Purchaser Agent.  Upon such
          acceptance of its appointment as Administrator hereunder by a successor
          Administrator, such successor Administrator shall succeed to and become
          vested
          with all the rights and duties of the retiring Administrator, and the retiring
          Administrator shall be discharged from any further duties and obligations
          under
          the Transaction Documents.  After any retiring Administrator’s
          resignation hereunder, the provisions of Sections 3.1, 3.2, 6.4 and this
Article V shall inure to its benefit as to any actions taken or
          omitted
          to be taken by it while it was the Administrator.

         

        ARTICLE
          VI.

        MISCELLANEOUS

         

        Section
          6.1       Amendments,
          Etc.

         

        No
          amendment or waiver of any provision of this Agreement or any other Transaction
          Document, or consent to any departure by the Seller or the Servicer therefrom,
          shall be effective unless in a writing signed by the Administrator, the
          LC Bank
          and the Majority LC Participants and each Conduit Purchaser, and, in the
          case of
          any amendment, by the other parties thereto; and then such amendment, waiver
          or
          consent shall be effective only in the specific instance and for the specific
          purpose for which given.  No failure on the part of any Purchaser, any
          Purchaser Agent or the Administrator to exercise, and no delay in exercising
          any
          right hereunder shall operate as a waiver thereof, nor shall any single
          or
          partial exercise of any right hereunder preclude any other or further exercise
          thereof or the exercise of any other right.

         

        Section
          6.2       Notices, Etc.

         

        All
          notices and other communications hereunder shall, unless otherwise stated
          herein, be in writing (which shall include facsimile and email communication)
          and be sent or delivered to each party hereto at its address set forth
          under its
          name on the signature pages hereof (or in any Assumption Agreement pursuant
          to
          which it became a party hereto) or at such other address as shall be designated
          by such party in a written notice to the other parties
          hereto.  Notices and communications by facsimile shall be effective
          when sent (and shall be followed by hard copy

         

        31        STRATEGIC
          ENERGY
          - RPA

        
          

        

        

        sent
          by
          first class mail), and notices and communications sent by other means shall
          be
          effective when received.

         

        Section
          6.3       Successors and Assigns;
          Assignability; Participations.

         

        (a)           Whenever
          in this Agreement any of the parties hereto is referred to, such reference
          shall
          be deemed to include the successors and assigns of such party; all covenants,
          promises and agreements by or on behalf of any parties hereto that are
          contained
          in this Agreement shall bind and inure to the benefit of the parties hereto
          and
          their respective successors and assigns. Except as otherwise provided herein,
          none of Strategic Energy, the Seller or the Servicer may assign or transfer
          any
          of its rights or obligations or delegate any of its duties hereunder or
          under
          any Transaction Document without the prior written consent of the Administrator,
          the LC Bank, the Majority Purchaser Agents and the Required LC
          Participants.  Each of the LC Participants, with the prior written
          consent of the Administrator, the LC Bank and, so long as no Termination
          Event
          has occurred and is continuing, the Seller (such consent not to be unreasonably
          withheld, conditioned or delayed), may assign any of its interests, rights
          and
          obligations hereunder to an Eligible Assignee; provided, that (i) the Commitment
          amount to be assigned by any such LC Participant hereunder shall not be
          less
          than $5,000,000 and (ii) prior to the effective date of any such assignment,
          the
          assignee and assignor shall have executed and delivered to the Administrator
          and
          the LC Bank an assignment and acceptance agreement in form and substance
          satisfactory to the Administrator and the LC Bank. Upon the effectiveness
          of any
          such permitted assignment, (i) the assignee thereunder shall, to the extent
          of
          the interests assigned to it, be entitled to the interests, rights and
          obligations of an LC Participant under this Agreement and (ii) the assigning
          LC
          Participant shall, to the extent of the interest assigned, be released
          from any
          further obligations under this Agreement.

         

        (b)           Notwithstanding
          anything contained in paragraph (a) of this Section 6.3, each of the LC
          Bank and each LC Participant may sell participations in all or any part
          of any
          Funded Purchase made by it to another bank or other entity so long as (i)
          no
          such grant of a participation shall, without the consent of the Seller,
          require
          the Seller to file a registration statement with the Securities and Exchange
          Commission and (ii) no holder of any such participation shall be entitled
          to
          require such LC Participant to take or omit to take any action hereunder
          except
          that it may agree with such participant that, without such participant’s
          consent, it will not consent to an amendment, modification or waiver with
          respect to (A) the reduction of any Capital, Discount or fee, (B) any extension
          the Facility Termination Date, (C) any increase in the Purchase Limit or
          the
          Commitment related to such participant, (D) any reserve requirements hereunder,
          (E) Section 1.4 hereof, (F) any issuance terms with respect to Letters of
          Credit or (G) the release of any collateral secured by this Agreement or
          any
          other Transaction Document.  Any such participant shall not have any
          rights hereunder or under the Transaction Documents except that such participant
          shall have rights under Sections 1.7 and 1.8 (as limited by
Section 6.3(i)) and 1.9 hereunder as if it were an LC Participant;
          provided that no such participant shall be entitled to receive any payment
          pursuant to such sections which is greater in amount than the payment which
          the
          assigning LC Participant would have otherwise been entitled to receive
          in
          respect of the participation interest so sold.

         

        (c)           This
          Agreement and any Conduit Purchaser’s rights and obligations herein (including
          ownership of the Purchased Interest or an interest therein) shall be assignable,
          in

         

      

    

     

    32        STRATEGIC
      ENERGY
      - RPA

    

    
      

    

    

    whole
      or
      in part, by any Conduit Purchaser and its successors and assigns with the prior
      written consent of the Administrator and the Seller; provided,
however, that such consent by the Seller and the Administrator shall
      not
      be unreasonably withheld; and provided further, that no such
      consent by the Seller shall be required if the assignment is made during the
      continuance of a Termination Event or to PNC, any Affiliate of PNC (other than
      a
      director or officer of PNC), any Purchaser or other Program Support Provider
      or
      any Person that is:  (i) in the business of issuing Notes and (ii)
      associated with or administered by PNC or any Affiliate of PNC.  Each
      assignor may, in connection with the assignment, disclose to the applicable
      assignee (that shall have agreed to be bound by Section 5.6) any
      information relating to the Servicer, the Seller or the Pool Receivables
      furnished to such assignor by or on behalf of the Servicer, the Seller, any
      Conduit Purchaser or the Administrator.  Any Conduit Purchaser shall
      give prior written notice of any assignment of such Conduit Purchaser’s rights
      and obligations (including ownership of the Purchased Interest to any Person
      other than a Program Support Provider).

     

    (d)           Any
      Conduit Purchaser may at any time grant to one or more Liquidity Providers
      party
      to the Liquidity Agreement, or to any other Program Support Provider,
      participating interests in the Purchased Interest.  In the event of
      any such grant by a Conduit Purchaser of a participating interest to a Liquidity
      Provider or other Program Support Provider, such Conduit Purchaser shall remain
      responsible for the performance of its obligations hereunder.  Subject
      to the limitations set forth in Section 6.3(i), the Seller agrees that
      each Liquidity Provider or other Program Support Provider shall be entitled
      to
      the benefits of Sections 1.7 and 1.8.

     

    (e)           This
      Agreement and the rights and obligations of the Administrator, the LC Bank,
      each
      LC Participant and the Purchaser Agents hereunder shall be assignable, in whole
      or in part, by the Administrator, the LC Bank, each LC Participant and the
      Purchaser Agents, as the case may be, and their respective successors and
      assigns, with the consent of the Seller; provided, however, that the Seller’s
      consent shall not be required if a Termination Event has occurred and is
      continuing at the time of such assignment.

     

    (f)           Except
      as provided in Section 4.1(d), none of the Seller, Strategic Energy or
      the Servicer may assign its rights or delegate its obligations hereunder or
      any
      interest herein without the prior written consent of the
      Administrator.

     

    (g)           Without
      limiting any other rights that may be available under applicable law, rule
      or
      regulation, the rights of any Purchaser and each Program Support Provider may
      be
      enforced through it or by its Purchaser Agent or, in the case of a Program
      Support Provider, the Purchaser Agent of the related Purchaser.

     

    (h)           If
      required by the Administrator or any Purchaser Agent or to maintain the ratings
      of any Conduit Purchaser, each Assumption Agreement or other assignment and
      acceptance agreement must be accompanied by an opinion of counsel of the
      assignee as to such matters as the Administrator or such Purchaser Agent may
      reasonably request.

     

    (i)           Notwithstanding
      anything herein to the contrary, no Affected Person may assign, transfer or
      otherwise dispose of any or all of its rights or obligations to any person
      that
      is not a U.S. person within the meaning of Section 7701(a)(30) of the Internal
      Revenue Code of 1986, as amended, without the consent of Seller (such consent
      not to be unreasonably withheld).  In the

     

    

    33        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    event
      that any such assignment, transfer or other disposition is made without the
      Seller’s consent, such assignee, transferee or successor shall not be entitled
      to any additional amounts for any taxes, as set forth in Section 1.8,
      from Seller.

     

    Section
      6.4       Costs, Expenses and
      Taxes.

     

    (a)           In
      addition to the rights of indemnification granted under Sections 1.19 and
3.1, the Seller agrees to pay on demand all reasonable costs and
      expenses
      in connection with the preparation, execution, delivery and administration
      (including periodic internal audits of Pool Receivables by the Administrator,
      or
      by third parties at the direction of the Administrator, provided that the Seller
      shall not pay for more than one audit per year unless a Termination Event has
      occurred and is continuing) of this Agreement, the other Transaction Documents
      and the other documents and agreements to be delivered hereunder (and all
      reasonable costs and expenses in connection with any amendment, waiver or
      modification of any thereof), including:  (i) Attorney Costs for the
      Administrator, the Purchasers and their respective Affiliates and agents with
      respect thereto and with respect to advising the Administrator, the Purchasers
      and their respective Affiliates and agents as to their rights and remedies
      under
      this Agreement and the other Transaction Documents, and (ii) all reasonable
      costs and expenses (including Attorney Costs), if any, of the Administrator,
      the
      Purchasers and their respective Affiliates and agents in connection with the
      enforcement of this Agreement and the other Transaction Documents; provided,
      however, that Attorney Costs incurred other than with respect to clauses (i)
      or
      (ii) above shall be limited to such Attorney Costs of only one outside counsel
      to the Administrator and the Purchaser Groups.

     

    (b)           In
      addition, the Seller shall pay on demand any and all stamp, franchise and other
      taxes and fees payable in connection with the execution, delivery, filing and
      recording of this Agreement or the other documents or agreements to be delivered
      hereunder, and agrees to save each Indemnified Party harmless from and against
      any liabilities with respect to or resulting from any delay in paying or
      omission to pay such taxes and fees (it being understood and agreed that this
      Section 6.4(b) shall exclude taxes imposed on the overall or branch
      pre-tax net income of each such Person, and franchise taxes imposed on each
      such
      Person, by the jurisdiction under the laws of which such Person is organized
      or
      otherwise is considered doing, or having done, business (unless such Person
      would not be considered doing, or having done, business in such jurisdiction,
      but for having entered into, or engaged in the transactions in connection with,
      this Agreement or any other Transaction Document) or a political subdivision
      thereof).

     

    Section
      6.5       No Proceedings; Limitation on
      Payments.

     

    (a)           Each
      of the Seller, Strategic Energy, the Servicer, the Administrator, the LC Bank,
      each LC Participant, each other Purchaser, each Purchaser Agent and each
      assignee of any Purchased Interest or any interest therein, and each Person
      that
      enters into a commitment to purchase the Purchased Interest or interests
      therein, hereby covenants and agrees that it will not institute against, or
      join
      any other Person in instituting against, any Conduit Purchaser or Purchaser
      Agent any bankruptcy, reorganization, arrangement, insolvency or liquidation
      proceeding, or other proceeding under any federal or state bankruptcy or similar
      law, for one year and one day after the latest maturing Note issued by all
      Conduit Purchasers is paid in full.  Each party hereto agrees that it
      will not institute against, or join any other Person in instituting

     

    

    34        STRATEGIC
      ENERGY - RPA 
      
        

      

    

    

    against,
      the Seller any bankruptcy, reorganization, arrangement, insolvency or
      liquidation proceeding, or other proceeding under any federal or state
      bankruptcy or similar law, for one year and one day after which all other
      indebtedness and other obligations of the Seller hereunder and under each other
      Transaction Document shall have been paid in full; provided,
however, that the Administrator may take any such action with the
      prior
      written consent of the Majority Purchaser Agents and the LC Bank.

     

    (b)           Notwithstanding
      any provisions contained in this Agreement to the contrary, no Conduit Purchaser
      shall pay or be obligated to pay any amount payable by it pursuant to this
      Agreement or any other Transaction Document unless (i) such Conduit Purchaser
      has received funds which may be used to make such payment and which are not
      required to repay the Notes when due and (ii) after giving effect to such
      payment, either (x) such Conduit Purchaser could issue Notes to refinance all
      of
      its outstanding Notes (assuming such outstanding Notes matured at such time)
      in
      accordance with the program documents governing such Conduit Purchaser’s
      securitization program or (y) all of its Notes are paid in full.  Any
      amount which such Conduit Purchaser does not pay pursuant to the operation
      of
      the preceding sentence shall not constitute a claim (as defined in §101 of the
      Bankruptcy Code) against or company obligation of such Conduit Purchaser for
      any
      such insufficiency unless and until such Conduit Purchaser satisfies the
      provisions of clauses (i) and (ii) above.

     

    The
      provisions of this Section 6.5 shall survive any termination of this
      Agreement.

     

    Section
      6.6       Confidentiality.

     

    Each
      of
      the Seller and the Servicer agrees to maintain the confidentiality of this
      Agreement and the other Transaction Documents (and all drafts thereof) and
      that
      certain Summary of Terms and Conditions, dated July 30, 2007 in communications
      with third parties and otherwise; provided, that this Agreement may be
      disclosed to:  (a) any Affiliate of the Seller or the Servicer or any
      officers, directors, members, managers, employees or outside accountants,
      auditors or attorneys of such Person if they agree to hold it confidential,
      (b)
      any potential financing providers of or investors in the Servicer or any
      Originator if they agree to hold it confidential pursuant to a written agreement
      of confidentiality in form and substance reasonably satisfactory to the
      Administrator, (c) each of Strategic Energy’s, the Seller’s and the Servicer’s
      legal counsel and auditors if such legal counsel and auditors agree to hold
      it
      confidential, and (d) as otherwise required by applicable law, rules or
      regulations, provided prior notice is given to the Seller.  Unless
      otherwise required by applicable law, rules or regulations, each of the
      Administrator, the Purchaser Agents and the Purchasers agrees to maintain the
      confidentiality of non-public financial information regarding Strategic Energy
      and its Subsidiaries and Affiliates; provided, that such information may
      be disclosed to:  (i) any Affiliate of the Administrator, any
      Purchaser Agent or any Purchaser or any officers, directors, members, managers,
      employees or outside accountants, auditors or attorneys of such Person if they
      agree to hold it confidential, (ii) any potential assignees and participants
      if
      they agree to hold it confidential, (iii) legal counsel and auditors of any
      Purchaser Agent, any Purchaser or the Administrator if they agree to hold it
      confidential, (iv) the rating agencies rating the Notes, (v) any Program Support
      Provider or potential Program Support Provider if they agree to hold it
      confidential, (vi) any placement agent placing the Notes and (vii) any
      regulatory authorities having jurisdiction over PNC, any Purchaser Agent, any
      Purchaser, any Program Support Provider or any Purchaser.

     

    

    35    STRATEGIC
      ENERGY - RPA 
      
        

      

    

    

    Section
      6.7       GOVERNING LAW AND
      JURISDICTION.

     

    (a)           THIS
      AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS
      OF THE STATE OF NEW YORK (WITHOUT REGARD TO ANY OTHERWISE APPLICABLE CONFLICTS
      OF LAW PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
      OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY
      OR PERFECTION OF A SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY
      PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN
      THE
      STATE OF NEW YORK.

     

    (b)           ANY
      LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN
      THE
      COURTS OF NEW YORK COUNTY, NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
      DISTRICT OF NEW YORK; AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH
      OF
      THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO
      THE
      NON-EXCLUSIVE JURISDICTION OF THOSE COURTS.  EACH OF THE PARTIES
      HERETO IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY
      OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
      GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO THE
      BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS
      AGREEMENT OR ANY DOCUMENT RELATED HERETO.  EACH OF THE PARTIES HERETO
      WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH
      SERVICE MAY BE MADE BY ANY OTHER MEANS PERMITTED BY NEW YORK LAW.

     

    Section
      6.8       Execution in
      Counterparts.

     

    This
      Agreement may be executed in any number of counterparts, each of which, when
      so
      executed, shall be deemed to be an original, and all of which, when taken
      together, shall constitute one and the same agreement.

     

    Section
      6.9       Survival of Termination;
      Non-Waiver.

     

    The
      provisions of Sections 1.7, 1.8, 1.18, 1.19,
3.1, 3.2, 6.3(i), 6.4, 6.5, 6.6,
      6.7, 6.10 and 6.13 shall survive any termination of this
      Agreement.  Neither the Servicer nor any other Person may waive a
      breach of Exhibit III, Section 1(g) or 1(j) or Exhibit
      IV, Section 1(d) or 2(i) of this Agreement for so long as the
      Notes are outstanding.

     

    Section
      6.10     WAIVER OF JURY TRIAL.

     

    EACH
      OF
      THE PARTIES HERETO WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM
      OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT
      OR
      THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER
      LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY
      OR
      PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR
      OTHERWISE.  EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM
      OR

     

    

    36        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    CAUSE
      OF
      ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY.  WITHOUT
      LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER AGREES THAT ITS
      RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
      6.10 AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING THAT SEEKS, IN WHOLE
      OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR
      ANY
      PROVISION HEREOF.  THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
      AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
      AGREEMENT.

     

    Section
      6.11      Entire Agreement.

     

    This
      Agreement and the other Transaction Documents embody the entire agreement and
      understanding between the parties hereto, and supersede all prior or
      contemporaneous agreements and understandings of such Persons, verbal or
      written, relating to the subject matter hereof and thereof.

     

    Section
      6.12      Headings.

     

    The
      captions and headings of this Agreement and any Exhibit, Schedule or Annex
      hereto are for convenience of reference only and shall not affect the
      interpretation hereof or thereof.

     

    Section
      6.13      Purchasers’ and Purchaser Agents’
Liabilities.

     

    The
      obligations of each Purchaser and Purchaser Agent under the Transaction
      Documents are solely the obligations of such Purchaser or Purchaser
      Agent.  No recourse shall be had for any obligation or claim arising
      out of or based upon any Transaction Document against any stockholder, employee,
      officer, director, organizer or incorporator of any Purchaser or Purchaser
      Agent; provided, however, that this Section shall not relieve any
      such Person of any liability it might otherwise have for its own gross
      negligence or willful misconduct.

     

    Section
      6.14      Sharing of
      Recoveries.

     

    Each
      Purchaser agrees that if it receives any recovery, through set-off, judicial
      action or otherwise, on any amount payable or recoverable hereunder in a greater
      proportion than should have been received hereunder or otherwise inconsistent
      with the provisions hereof, then the recipient of such recovery shall purchase
      for cash an interest in amounts owing to the other Purchasers (as return of
      Capital or otherwise), without representation or warranty except for the
      representation and warranty that such interest is being sold by each such other
      Purchaser free and clear of any Adverse Claim created or granted by such other
      Purchaser, in the amount necessary to create proportional participation by
      the
      Purchaser in such recovery.  If all or any portion of such amount is
      thereafter recovered from the recipient, such purchase shall be rescinded and
      the purchase price restored to the extent of such recovery, but without
      interest.

     

          Section
      6.15      Intercreditor
      Agreement.

     

    Each
      of
      the Purchasers and the Purchaser Agents hereby authorizes the Administrator
      to
      enter into the Intercreditor Agreement and agrees to be bound by the provisions
      thereof.  The Administrator shall be authorized to make any amendment,
      waiver, permit, consent or approval

     

    

    37        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    with
      respect to the Intercreditor Agreement in its sole discretion, subject to the
      consent of the Purchaser Agents, and any such amendment, waiver, permit, consent
      or approval shall be binding upon each of the Purchasers and the Purchaser
      Agents.

     

    Section
      6.16      Payments to Non-Lock-Box
      Accounts.

     

    Notwithstanding
      anything to the contrary herein or in the Sale Agreement or the Lock-Box
      Agreement, solely to the extent that any payments with respect to Receivables
      (including any Collections or other proceeds of such Receivables) are credited
      to or deposited into any account set forth on Schedule VII hereto (the
“Non-Lock-Box Accounts”) within ninety (90) days following the Closing
      Date, so long as the Seller or the Servicer redirects all such amounts to a
      Lock-Box Account within one (1) Business Day after the crediting or depositing
      of such amount into such Non-Lock-Box Account, the Administrator, each Purchaser
      Agent and each Purchaser hereby consents to the departure from all
      representations, warranties and covenants by the Seller and the Servicer solely
      in respect of the credit to or deposit into a Non-Lock-Box Account of any such
      amounts.  The temporary consent to departure from such
      representations, warranties and covenants by the Seller and the Servicer
      provided for in this Section 6.16 shall automatically terminate on the
      91st day
      following the Closing Date.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    

     

    38        STRATEGIC
      ENERGY
      - RPA

      
        

      

     

    

    IN
      WITNESS WHEREOF, the parties have caused this Agreement to be executed
      by their respective officers thereunto duly authorized, as of the date first
      above written.

     

    
      	
              SELLER:

            	
              STRATEGIC
                RECEIVABLES, LLC

               

               

              By:
                /s/ Andrew J. Washburn

              Name:
                Andrew J.
                Washburn

              Title:   President

               

            
	 	
              Address:

            	
              Two
                Gateway Center

              Pittsburgh,
                PA 15222-1458

            
	 	
              Attention:

            	
              Andrew
                J. Washburn

            
	 	
              Telephone:

            	
              (412)
                258-2188

            
	 	
              Facsimile:

            	
              (412)
                258-2199

            
	 
	
              INITIAL
                SERVICER:

            	
              STRATEGIC
                ENERGY, L.L.C.

               

               

              By:
                /s/ Brian M. Begg

              Name:
                Brian M.
                Begg

              Title:    VP,
                Corporate Development & Finance

               

            
	 	
              Address:

            	
              Two
                Gateway Center

              Pittsburgh,
                PA 15222-1458

            
	 	
              Attention:

            	
              Brian
                M. Begg

            
	 	
              Telephone:

            	
              (412)
                394-6267

            
	 	
              Facsimile:

            	
              (412)
                394-6664

            
	 

    

     

     

     

     

     

     

     

    S-1        STRATEGIC
      ENERGY
      - RPA

    

    
      

    

    

    
      	 	 	 
	
              CONDUIT
                PURCHASERS:

            	
              MARKET
                STREET

                 FUNDING
                LLC

               

               

              By:
                /s/ Doris J. Hearn

              Name:
                Doris J.
                Hearn

              Title:  Vice
                President

               

            
	 	
              Address:

            	
              Market
                Street Funding LLC

              c/o
                AMACAR Group, LLC

              6525
                Morrison Boulevard, Suite 318

              Charlotte,
                North Carolina 28211

            
	 	
              Attention:

            	
              Doug
                Johnson

            
	 	
              Telephone:

            	
              704-365-0569

            
	 	
              Facsimile:

            	
              704-365-1362

            
	 	 	 
	 	
              With
                a copy to:

            
	 	 	 
	 	
              PNC
                Bank, National Association

              One
                PNC Plaza, 26th floor

              249
                Fifth Avenue

              Pittsburgh,
                PA 15222

            
	 	
              Attention:

            	
              Bill
                Falcon

            
	 	
              Telephone:

            	
              412-762-5442

            
	 	
              Facsimile:

            	
              412-762-9184

            
	 	
              Commitment:

            	
              $112,500,000

            

    

    

     

     

    
S-2        STRATEGIC
      ENERGY - RPA

     
      
        

      

    

    

    

    
      	 	
              FIFTH
                THIRD BANK

               

               

              By:
                /s/ Andrew D. Jones

              Name:
                Andrew D.
                Jones

              Title:
                Assistant Vice
                President

               

            
	 	
              Address:

            	
              Fifth
                Third Bank

              38
                Fountain Square Plaza,

              MD
                109047

              Cincinnati,
                Ohio 45263

              Attention:
                Andrew D. Jones

              Telephone
                No.:(513) 534-0836

              Facsimile
                No.: (513) 534-0319

            
	 	 	 
	 	
              With
                a copy to its Purchaser Agent

            
	 	 	 
	 	
              Commitment:

            	
              $62,500,000

            

    

    

     

     

     

    S-3        STRATEGIC
      ENERGY
      - RPA

    
      

    

    

    

    
      	
              ADMINISTRATOR
                AND PURCHASER AGENT FOR MARKET STREET:

            	
               

              PNC
                BANK, NATIONAL ASSOCIATION

               

               

              By:
                /s/ William P. Falcon

              Name:
                William P.
                Falcon

              Title:  Vice
                President

               

            
	 	
              Address:

            	
              PNC
                Bank, National Association

              One
                PNC Plaza, 26th floor

              249
                Fifth Avenue

              Pittsburgh,
                PA 15222

            
	 	
              Attention:

            	
              Bill
                Falcon

            
	 	
              Telephone:

            	
              412-762-5442

            
	 	
              Facsimile:

            	
              412-762-9184

            

    

    

    
      	
              PURCHASER
                AGENT FOR FIFTH THIRD BANK:

            	
              FIFTH
                THIRD BANK

               

               

              By:
                /s/ Andrew D. Jones

              Name:
                Andrew D.
                Jones

              Title:  Assistant
                Vice President

               

            
	 	
              Address:

            	
              Fifth
                Third Bank

              38
                Fountain Square Plaza,

              MD109047

              Cincinnati,
                Ohio 45263

            
	 	
              Attention:

            	
              Tausha
                Bush

            
	 	
              Telephone:

            	
              (513)
                534-6235

            
	 	
              Facsimile:

            	
              (513)
                534-0875

            

    

     

     

     

     

    
 

     S-4        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

    LC
      BANK/LC
      PARTICIPANTS:                                                                                     PNC
      BANK, NATIONAL ASSOCIATION,

                     as
      the LC Bank and as an LC
      Participant

    

    

                    By:
      /s/ Thomas A.
      Majeski

                    Name:  Thomas
      A. Majeski

                    Title:    Vice
      President

    

    
      	 	
              Address:

            	
              One
                PNC Plaza, 26th floor

            
	 	 	
              249
                Fifth Avenue

            
	 	 	
              Pittsburgh,
                PA 15222

            
	 	
              Attention:

            	
              Thomas
                Majeski

            
	 	
              Telephone:

            	
              412-762-2431

            
	 	
              Facsimile:

            	
              412-762-4718

            
	 	 	 
	 	
              Commitment:

            	
              $112,500,000

            
	 	
              Pro-Rata
                Share:

            	
              64.29%

            

    

     

                    

                                                    FIFTH
      THIRD
      BANK,
                                    as
      the LC Bank and as an LC
      Participant

    

    

                    By:
      /s/ Andrew D.
      Jones

                   
      Name:  Andrew D. Jones

                   Title:    Vice
      President

    

      
        	 	
                Address:

              	
                38
                  Fountain Square Plaza,

              
	 	 	
                MD
                  109047

              
	 	 	
                Cincinnati,
                  Ohio 45263

              
	 	
                Attention:

              	
                Tausha
                  Bush

              
	 	
                Telephone:

              	
                (513)
                  534-6235

              
	 	
                Facsimile:

              	
                (513)
                  534-0875

              
	 	 	 
	 	
                Commitment:

              	
                $62,500,000

              
	 	
                Pro-Rata
                  Share:

              	
                35.71%

              

      

     

     

     

     

     

     

     

     

     

     

     

    S-5        STRATEGIC
      ENERGY
      - RPA

    
      
        

      

    EXHIBIT
      I

     

    DEFINITIONS

     

    As
      used
      in the Agreement (including its Exhibits, Schedules and Annexes), the following
      terms shall have the following meanings (such meanings to be equally applicable
      to both the singular and plural forms of the terms defined).  Unless
      otherwise indicated, all Section, Annex, Exhibit and Schedule references in
      this
      Exhibit are to Sections of and Annexes, Exhibits and Schedules to the
      Agreement.

     

    “Administrator”
      has the meaning set forth in the preamble to the Agreement.

     

    “Adverse
      Claim” means (i) a lien, security interest or other charge or encumbrance, or
      any other type of preferential arrangement; it being understood that any
      thereof in favor of, or assigned to, any Purchaser Agent, Purchaser or the
      Administrator (for the benefit of such Purchaser Agent or Purchaser) or PNC
      shall not constitute an Adverse Claim, or, (ii) when used in connection with
      a
      Receivable or Collections or Related Rights with respect to a Receivable, a
      claim or contention by or on behalf of a representative of the estate of any
      Originator which may be created under § 541 of the Bankruptcy Code that a
      Receivable generated by such Originator (or Collections or Related Rights with
      respect to such Receivable) which has been purchased or accepted as a
      contribution by the Seller from such Originator pursuant to the Sale Agreement
      constitutes property of such estate or that the transfer of such Receivable
      (or
      Collections or Related Rights with respect to such Receivable) should be avoided
      under § 544 or 548 of the Bankruptcy Code.

     

    “Affected
      Person” has the meaning set forth in Section 1.7 of the
      Agreement.

     

    “Affiliate”
      means, as to any Person:  (a) any Person that, directly or indirectly,
      is in control of, is controlled by or is under common control with such Person,
      or (b) who is a director or officer:  (i) of such Person or (ii) of
      any Person described in clause (a), except that, with respect to any
      Purchaser, Affiliate shall mean the holder(s) of its capital stock or membership
      interests, as the case may be; provided, however, that Kansas City
      Power & Light shall be deemed not to be an Affiliate.  For
      purposes of this definition, control of a Person shall mean the power, direct
      or
      indirect:  (x) to vote 25% or more of the securities having ordinary
      voting power for the election of directors or managers of such Person, or (y)
      to
      direct or cause the direction of the management and policies of such Person,
      in
      either case whether by ownership of securities, contract, proxy or
      otherwise.

     

    “Agreement”
      has the meaning set forth in the preamble to the Agreement.

     

    “Assumption
      Agreement” means an agreement substantially in the form acceptable to the
      Administrator.

     

    “Alternate
      Rate” for any Settlement Period for any Portion of Capital of the Purchased
      Interest means an interest rate per annum equal to:  (a) 2.25% per
      annum above the Euro-Rate for such Settlement Period; provided,
however, that if (x) it shall become unlawful for any Purchaser or
      Program Support Provider to obtain funds in the London interbank eurodollar
      market in order to make, fund or maintain any Purchased Interest, or if such
      funds shall not be reasonably available to any Purchaser or Program Support
      Provider, or (y) there shall not be at least two

     

    

    I-1        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    Business
      Days prior to the commencement of an applicable Settlement Period to determine
      a
      Euro-Rate in accordance with its terms, then the “Alternate Rate” shall be equal
      to the Base Rate in effect for each day during the remainder of such Settlement
      Period or (b) if requested by the Seller the Base Rate for such Settlement
      Period; provided, however, that the “Alternate Rate” for any day
      while a Termination Event exists shall be an interest rate equal to 2.00% per
      annum above the Base Rate in effect on such day.

     

    “Attorney
      Costs” means and includes all reasonable fees and disbursements of any law firm
      or other external counsel.

     

    “Bankruptcy
      Code” means the United States Bankruptcy Reform Act of 1978 (11
      U.S.C.  § 101, et seq.), as amended from time to time.

     

    “Base
      Rate” means, for any day, (i) in the case of Market Street, the Market Street
      Base Rate, and (ii) in the case of each other Conduit Purchaser, the rate set
      forth as the Base Rate for such Conduit Purchaser in the related Fee
      Letter.

     

    “Base
      Rate Portion of Capital” shall mean a Portion of Capital, the Discount with
      respect to which is calculated at a per annum rate based on the
      interest rate determined by reference to the Base Rate.

     

    “BBA”
      means the British Bankers’ Association.

     

    “Benefit
      Plan” means any employee benefit pension plan as defined in Section 3(2) of
      ERISA in respect of which the Seller, any Originator, Strategic Energy or any
      ERISA Affiliate is, or at any time during the immediately preceding six years
      was, an “employer” as defined in Section 3(5) of ERISA.

     

    “Business
      Day” means any day (other than a Saturday or Sunday) on which:  (a)
      banks are not authorized or required to close in New York City, New York or
      Pittsburgh, Pennsylvania and (b) if this definition of “Business Day” is
      utilized in connection with the Euro-Rate, dealings are carried out in the
      London interbank market.

     

    “Capital”
      means, with respect to any Purchaser, the aggregate amounts paid to the Seller
      pursuant to Section 1.1(a) or Section 1.1(b) and the aggregate
      amount of all unreimbursed draws deemed to be Funded Purchases pursuant to
      the
      Agreement (including Section 1.2(e)), or such amount divided or combined
      in order to determine the Discount applicable to any Portion of Capital, in
      each
      case reduced from time to time by Collections distributed and applied on account
      of such Capital pursuant to Section 1.4(d) of the Agreement;
provided, that if such Capital shall have been reduced by any
      distribution, and thereafter all or a portion of such distribution is rescinded
      or must otherwise be returned for any reason, such Capital shall be increased
      by
      the amount of such rescinded or returned distribution as though it had not
      been
      made.

     

    “Change
      in Control” means that (a) Strategic Energy, ceases to own, directly or
      indirectly, 100% of the membership interests of the Seller free and clear of
      all
      Adverse Claims, or (b) Strategic Energy ceases to own, directly or indirectly,
      100% of the membership interests or capital stock, as the case may be, of the
      Originators, free and clear of all Adverse Claims.

     

    

    I-2        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    “Closing
      Date” means October 3, 2007.

     

    “Collections”
      means, with respect to any Pool Receivable:  (a) all funds that are
      received by any Originator, the Seller or the Servicer in payment of any amounts
      owed in respect of such Receivable (including purchase price, finance charges,
      interest and all other charges), or applied to amounts owed in respect of such
      Receivable (including insurance payments and net proceeds of the sale or other
      disposition of repossessed goods or other collateral or property of the related
      Obligor or any other Person directly or indirectly liable for the payment of
      such Pool Receivable and available to be applied thereon), (b) all amounts
      deemed to have been received pursuant to Section 1.4(e) of the Agreement
      and (c) all other proceeds of such Pool Receivable.

     

    “Commitment”
      shall mean, (i) as to a Conduit Purchaser, that dollar amount set forth as
      the “Commitment” under its name on the signature pages to the Agreement, (ii) as
      to any LC Participant, its commitment to make participation advances and/or
      share in draws, in each case, under Letters of Credit up to that dollar amount
      set forth as the “Commitment” under its name on the signature pages to the
      Agreement or in the Assumption Agreement pursuant to which it became a
      Purchaser, as such amount may be modified in connection with any subsequent
      assignment and (iii) as to the LC Bank, its commitment to issue or cause the
      issuance of Letters of Credit up to that dollar amount set forth as the
“Commitment” under its name on the signature pages to the Agreement (or, as
      applicable, set forth in any amendment thereto or set forth in any assignment
      agreement entered into pursuant to Section 6.3 as such dollar amount may
      be reduced pursuant to Section 1.1(c) of the Agreement); provided,
however, that if any Person is a Conduit Purchaser and an
      LC Participant,
      such Person’s Commitment shall not exceed the greater of (x) the Commitment set
      forth under its name on the signature pages to the Agreement in such Person’s
      capacity as Conduit Purchaser and (y) the Commitment set forth under its name
      on
      the signature pages to the Agreement in such Person’s capacity as LC
      Participant; provided, further, that the aggregate Commitments of
      all Purchasers in a Purchaser Group shall not exceed the Commitment set forth
      under such Purchaser Group’s Conduit Purchaser’s name on the signature pages to
      the Agreement; and “Commitments” shall mean the aggregate commitments of the LC
      Participants to make participating advances in the Letters of Credit up to
      the
      Purchase Limit (or, if less, the amount permitted under Section
      1.1(b)).

     

    “Company
      Note” has the meaning set forth in Section 3.1 of the Sale
      Agreement.

     

    “Concentration
      Percentage” means:  (a) for any Group A Obligor, 10.0%, (b) for any
      Group B Obligor, 10.0%, (c) for any Group C Obligor 5.0% and (d) for any Group
      D
      Obligor, 2.5%.

     

    “Concentration
      Reserve” means, at any time, the product of:  (a) the Capital plus the
      LC Participation Amount, at such time multiplied by (b)(i) the Concentration
      Reserve Percentage, divided by (ii) 1 minus the Concentration Reserve
      Percentage.

     

    “Concentration
      Reserve Percentage” means, at any time the following expressed as a percentage
      (as opposed to a fraction), (a) the largest of the following:  (i) the
      sum of four largest Group D Obligor Receivables balances (up to the
      Concentration Percentage for each Obligor), (ii) the sum of the two largest
      Group C Obligor Receivables balances (up to the Concentration Percentage for
      each Obligor) and (iii) the largest Group B Obligor Receivables balances (up
      to

     

    

    I-3        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    the
      Concentration Percentage for each Obligor) or Group A Obligor Receivables
      balances (up to the Concentration Percentage for each Obligor), divided by
      (b)
      Eligible Receivables.

     

    “Conduit
      Purchaser” has the meaning set forth in the preamble to the
      Agreement.

     

    “Contract”
      means, with respect to any Receivable, any and all contracts, instruments,
      agreements, leases, invoices, notes or other writings pursuant to which such
      Receivable arises or that evidence such Receivable or under which an Obligor
      becomes or is obligated to make payment in respect of such
      Receivable.

     

    “CP
      Rate”
for any Settlement Period for any Portion of Capital means (i) in the case
      of
      Market Street, a rate calculated by the Administrator equal to:  (a)
      the rate (or if more than one rate, the weighted average of the rates) at which
      Notes of Market Street on each day during such period have been outstanding;
      provided, that if such rate(s) is a discount rate(s), then the CP Rate
      shall be the rate (or if more than one rate, the weighted average of the rates)
      resulting from converting such discount rate(s) to an interest-bearing
      equivalent rate plus (b) the commissions and charges charged by such placement
      agent or commercial paper dealer with respect to such Notes, expressed as a
      percentage of the face amount of such Notes and converted to an interest-bearing
      equivalent rate per annum, and (ii) in the case of each other Conduit Purchaser,
      the rate set forth as the CP Rate for such Conduit Purchaser in the related
      Fee
      Letter.  Notwithstanding the foregoing, the “CP Rate” for any day
      while a Termination Event exists shall be an interest rate equal to 2.00% above
      the Base Rate in effect on such day.

     

    “Credit
      Agreement” means that certain Credit Agreement, dated on or about October 3,
      2007, among Strategic Energy, the lenders and guarantors party thereto and
      PNC,
      as administrative agent thereunder, as amended, restated, supplemented or
      otherwise modified from time to time.

     

    “Credit
      and Collection Policy” means, as the context may require, those receivables
      credit and collection policies and practices of the Originators in effect on
      the
      date of the Agreement and described in Schedule I to the Agreement, as
      modified in compliance with the Agreement.

     

    “Cut-off
      Date” has the meaning set forth in Section 1.1(a) of the Sale
      Agreement.

     

    “Days’
      Sales Outstanding” means, at any time, an amount computed as of the last day of
      each calendar month equal to:  (a) the average of the Outstanding
      Balance of all Pool Receivables as of the last day of each of the three most
      recent calendar months ended on the last day of such calendar month divided
      by
      (b)(i) the aggregate credit sales made by the Originators during the three
      calendar months ended on or before the last day of such calendar month divided
      by (ii) 90.

     

    “Debt”
      means (a) indebtedness for borrowed money, (b) obligations evidenced by bonds,
      debentures, notes or other similar instruments, (c) obligations to pay the
      deferred purchase price of property or services (it being understood that,
      with
      respect to the Servicer or any Originator, any such obligation which is less
      than ninety-one (91) days deferred shall not constitute “Debt”), (d) obligations
      as lessee under leases that shall have been or should be, in accordance with
      generally accepted accounting principles, recorded as capital leases, and (e)
      obligations under

     

    

    I-4        STRATEGIC
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    direct
      or
      indirect guaranties in respect of, and obligations (contingent or otherwise)
      to
      purchase or otherwise acquire, or otherwise to assure a creditor against loss
      in
      respect of, indebtedness or obligations of others of the kinds referred to
      in
clauses (a) through (d).

     

    “Default
      Ratio” means the ratio (expressed as a percentage and rounded to the nearest
      1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day
      of
      each calendar month by dividing:  (a) the aggregate Outstanding
      Balance of all Pool Receivables that became Defaulted Receivables during such
      month, by (b) the aggregate credit sales made by the Originators during the
      month that is seven calendar months before such month.

     

    “Defaulted
      Receivable” means a Receivable:

     

    (a)           as
      to which any payment, or part thereof, remains unpaid for more than 120 days
      from the original due date for such payment (which shall be determined without
      regard to any credit memos or credit balances available to the Obligor),
      or

     

    (b)           without
      duplication (i) as to which an Insolvency Proceeding shall have occurred with
      respect to the Obligor thereof or any other Person obligated thereon or owning
      any Related Security with respect thereto, or (ii) that has been written off
      the
      Seller’s books as uncollectible.

     

    “Delinquency
      Ratio” means the ratio (expressed as a percentage and rounded to the nearest
      1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day
      of
      each calendar month by dividing:  (a) the aggregate Outstanding
      Balance of all Pool Receivables that were Delinquent Receivables on such day
      by
      (b) the aggregate Outstanding Balance of all Pool Receivables on such
      day.

     

    “Delinquent
      Receivable” means a Receivable as to which any payment, or part thereof, remains
      unpaid for more than 60 days from the original due date for such
      payment.

     

    “Dilution
      Horizon” means, for any calendar month, the ratio (expressed as a percentage and
      rounded to the nearest 1/100th of 1%, with 5/1000th of 1% rounded upward)
      computed as of the last day of such calendar month of:  (a) the
      aggregate credit sales made by the Originators during the two most recent
      calendar months to (b) the Net Receivables Pool Balance at the last day of
      the
      most recent calendar month.

     

    “Dilution
      Ratio” means the ratio (expressed as a percentage and rounded to the nearest
      1/100th of 1%, with 5/1000th of 1% rounded upward), computed as of the last
      day
      of each calendar month by dividing:  (a) the aggregate amount of
      payments required to be made by the Seller pursuant to Section 1.4(e)(i)
      of the Agreement during such calendar month by (b) the aggregate credit sales
      made by the Originators during the month that is one month prior to the current
      calendar month.

     

    “Dilution
      Reserve” means, on any date, an amount equal to:  (a) the sum of the
      Capital plus the LC Participation Amount at the close of business of the Seller
      on such date multiplied by (b) (i) the Dilution Reserve Percentage on such
      date,
divided by (ii) 100% minus the Dilution Reserve Percentage on such
      date.

     

    

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    “Dilution
      Reserve Percentage” means on any date, the following expressed as a percentage
      (as opposed to a fraction):  the product of (i) the Dilution Horizon
multiplied by (ii) the sum of (x) 2.00 times the average of the
      Dilution Ratio for the twelve most recent calendar months and (y) the Spike
      Factor.

     

    “Discount”
      means with respect to any Purchaser:

     

    (a)           for
      the Portion of Capital for any Settlement Period to the extent such Conduit
      Purchaser will be funding such Portion of Capital during such Settlement Period
      through the issuance of Notes:

     

    CPR
      x C x
      ED/360

     

    (b)           for
      the Portion of Capital for any Settlement Period to the extent such Purchaser
      will not be funding such Portion of Capital during such Settlement Period
      through the issuance of Notes or, if the LC Bank and/or any LC Participant
      has
      made or has been deemed to have made a Funded Purchase, in connection with
      any
      drawing under a Letter of Credit that has not been reimbursed, which accrues
      Discount pursuant to Section 1.2(e) of the Agreement:

     

    AR
      x C x
      ED/Year + TF

     

    where:

     

    
      	
               

            	
              AR  =

            	
              the
                Alternate Rate for the Portion of Capital for such Settlement Period
                with
                respect to such Purchaser,

            

    

     

    
      	
               

            	
              C  =

            	
              the
                Portion of Capital during such Settlement Period with respect to
                such
                Purchaser,

            

    

     

    
      	
               

            	
              CPR
                =

            	
              the
                CP Rate for the Portion of Capital for such Settlement Period with
                respect
                to such Purchaser,

            

    

     

    
      	
               

            	
              ED  =

            	
              the
                actual number of days during such Settlement
                Period,

            

    

     

    
      	
               

            	
              Year
                =

            	
              if
                such Portion of Capital is funded based upon:  (i) the
                Euro-Rate, 360 days, and (ii) the Base Rate, 365 or 366 days, as
                applicable, and

            

    

     

    
      	
               

            	
              TF  =

            	
              the
                Termination Fee, if any, for the Portion of Capital for such Settlement
                Period with respect to such
                Purchaser;

            

    

     

    provided,
      that no provision of the Agreement shall require the payment or permit the
      collection of Discount in excess of the maximum permitted by applicable law;
      and
provided further, that Discount for the Portion of Capital shall
      not be considered paid by any distribution to the extent that at any time all
      or
      a portion of such distribution is rescinded or must otherwise be returned for
      any reason.

     

    “Drawing
      Date” has the meaning set forth in Section 1.14 of the
      Agreement.

     

    

    I-6        STRATEGIC
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    “Eligible
      Assignee” means any bank or financial institution whose lending office is in the
      United States or is doing business in the United States and that is acceptable
      to the LC Bank and the Administrator.

     

    “Eligible
      Receivable” means, at any time, a Pool Receivable:

     

    (a)           the
      Obligor of which is (i) a United States resident, (ii) not a government or
      a
      governmental subdivision or department, affiliate or agency other than the
      United States or a governmental subdivision or department, affiliate or agency
      of the United States, (iii) not subject to any action of the type described
      in
paragraph (f) of Exhibit V to the Agreement and (iv) not an
      Affiliate of Strategic Energy or any other Originator;

     

    (b)           that
      is denominated and payable only in U. S. dollars in the United States to a
      Lockbox Account;

     

    (c)           that
      does not have a stated maturity which is more than 45 days after the original
      invoice date of such Receivable;

     

    (d)           that
      arises under a duly authorized Contract for the sale and delivery of goods
      or
      services in the ordinary course of the related Originator’s
      business;

     

    (e)           that
      arises under a duly authorized Contract that is in full force and effect and
      that is a legal, valid and binding obligation of the related Obligor,
      enforceable against such Obligor in accordance with its terms;

     

    (f)           that
      conforms in all material respects with all applicable laws, rulings and
      regulations in effect, and the transfer of which does not violate any applicable
      law, rule or regulation in effect;

     

    (g)           that
      is not the subject of any default, dispute, offset, hold back defense, Adverse
      Claim, litigation or other claim;

     

    (h)           that
      satisfies all applicable requirements of the applicable Credit and Collection
      Policy, (including, without limitation, the origination thereof);

     

    (i)           that
      has not been modified, waived or restructured since its creation, except as
      permitted pursuant to Section 4.2 of the Agreement;

     

    (j)           in
      which the Seller owns good and marketable title, free and clear of any Adverse
      Claims (other than Permitted Liens), and that is freely assignable by the Seller
      (including without any consent of the related Obligor) and the representations
      and warranties with respect to such Receivable set forth in Section 2.1
      and clause (1)(g) of Exhibit III are true;

     

    (k)           for
      which the Administrator, for the benefit of the Purchasers, shall have a valid
      and enforceable undivided variable percentage ownership or security interest,
      to
      the extent of the Purchased Interest, and a valid and enforceable first priority
      perfected

     

    

     I-7        STRATEGIC
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    security
      interest therein and in the Related Security and Collections with respect
      thereto, in each case free and clear of any Adverse Claim;

     

    (l)           that
      constitutes an “account” as defined in the UCC, and that is not evidenced by
      instruments or chattel paper;

     

    (m)           that
      is neither a Defaulted Receivable nor a Delinquent Receivable;

     

    (n)           for
      which neither any Originator thereof, the Seller nor the Servicer has
      established any offset arrangements with the related Obligor;

     

    (o)           that
      represents amounts earned and payable by the Obligor that are not subject to
      the
      performance of any additional services (other than, solely with respect to
      a
      Receivable described in clause (p) below, billing for such Receivable)
      the Originator thereof;

     

    (p)           (i)
      the goods with respect to which have been shipped, (ii) the services with
      respect to which have been rendered or (iii) the electricity with respect to
      which has been used by the end-user, but in any case such Receivable has not
      yet
      been billed to the related Obligor within 60 days from the date of the such
      goods shipment or service rendering, as applicable; and

     

    (q)           for
      which the sum of the Outstanding Balances of all Receivables of the related
      Obligor with respect to which any payment, or part thereof, remains unpaid
      for
      more than 60 days from the original due date for such payment do not exceed
      50%
      of the Outstanding Balance of all such Obligor’s Receivables,

     

    “ERISA”
      means the Employee Retirement Income Security Act of 1974, as amended from
      time
      to time, and any successor statute of similar import, together with the rulings
      and regulations thereunder, in each case as in effect from time to
      time.  References to sections of ERISA also refer to any successor
      statutes.

     

    “ERISA
      Affiliate” means:  (a) any corporation that is a member of the same
      controlled group of corporations (within the meaning of Section 414(b) of the
      Internal Revenue Code) as the Seller, any Originator or Strategic Energy, (b)
      a
      trade or business (whether or not incorporated) under common control (within
      the
      meaning of Section 414(c) of the Internal Revenue Code) with the Seller, any
      Originator or Strategic Energy, or (c) a member of the same affiliated service
      group (within the meaning of Section 414(m) of the Internal Revenue Code) as
      the
      Seller, any Originator, any corporation described in clause (a) or any
      trade or business described in clause (b).

     

    “Euro-Rate”
      means with respect to any Settlement Period the interest rate per annum
      determined by the Administrator by dividing (the resulting quotient rounded
      upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the rate
      of
      interest determined by the Administrator in accordance with its usual procedures
      (which determination shall be conclusive absent manifest error) to be the
      average of the London interbank market offered rates for U.S. dollars quoted
      by
      the BBA as set forth on Dow Jones Markets Service (formerly known as Telerate)
      (or appropriate successor or, if the BBA or its successor ceases to provide
      display page

     

    

     I-8        STRATEGIC
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    3750
      (or
      such other display page on the Dow Jones Markets Service system as may replace
      display page 3750) at or about 11:00 a.m.  (London time) on the
      Business Day which is two (2) Business Days prior to the first day of such
      Settlement Period for an amount comparable to the Portion of Capital to be
      funded at the Alternate Rate and based upon the Euro-Rate during such Settlement
      Period by (ii) a number equal to 1.00 minus the Euro-Rate Reserve
      Percentage.  The Euro-Rate may also be expressed by the following
      formula:

     

    
      	
                  Euro-Rate
                =

            	
              Average
                of London interbank offered rates
                quoted

            

    

    
      	
               

            	
              by
                BBA as shown on Dow Jones Markets
                Service

            

    

    
      	
                           
                display page 3750 or appropriate successor

            	 

    

     

    
      	
               

            	
              1.00
                - Euro-Rate Reserve Percentage

            

    

     

    where
      “Euro-Rate Reserve Percentage” means, the maximum effective percentage in effect
      on such day as prescribed by the Board of Governors of the Federal Reserve
      System (or any successor) for determining the reserve requirements (including
      without limitation, supplemental, marginal, and emergency reserve requirements)
      with respect to eurocurrency funding (currently referred to as “Eurocurrency
      Liabilities”).  The Euro-Rate shall be adjusted with respect to any
      Portion of Capital funded at the Alternate Rate and based upon the Euro-Rate
      that is outstanding on the effective date of any change in the Euro-Rate Reserve
      Percentage as of such effective date.  The Administrator shall give
      prompt notice to the Seller of the Euro-Rate as determined or adjusted in
      accordance herewith (which determination shall be conclusive absent manifest
      error).

     

    “Excess
      Concentration” means the sum of the following amounts:

     

    (i)
      the
      sum of the following with respect to each such obligation: the amount by which
      the Outstanding Balance of Eligible Receivables of each Obligor then in the
      Receivables Pool exceeds an amount equal to:  (a) the Concentration
      Percentage for such Obligor multiplied by (b) the Outstanding Balance of all
      Eligible Receivables then in the Receivables Pool that have been allocated
      by
      the Administrator, in its sole discretion, to a specific Obligor;

     

    (ii)
      the
      amount by which the aggregate Outstanding Balance of all Eligible Receivables
      then in the Receivables Pool, the Obligor of which is a United States
      governmental entity, exceeds 2.0% of the aggregate Outstanding Balance of all
      Eligible Receivables then in the Receivables Pool; and

     

    (iii)
      the
      amount by which the sum of all Eligible Receivables classified as “unbilled” for
      more than 30 days but less than or equal to 60 days
      exceeds 25.0% of all Eligible Receivables.

     

    “Excluded
      Receivable” means any indebtedness and other obligations owed to the
      Seller (as the assignee of the related Originator) or any Originator by, or
      any
      right of any Originator to payment from or on behalf of, an Obligor which is
      a
      wholesale provider of electricity or an independent system operator, in either
      case which is listed on Schedule VI hereto, arising from a wholesale
      Contract between the related Originator and such Obligor, whether
      constituting an account, chattel paper, instrument or general intangible,
      arising in connection with the sale of goods, the rendering of services or
      the
      sale of electricity by any Originator, and includes the obligation to pay any
      finance charges, fees and other charges with respect thereto.

     

    

     I-9        STRATEGIC
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    “Exiting
      Notice” has the meaning set forth in Section 1.4(b)(ii) of the
      Agreement.

     

    “Exiting
      Purchaser” has the meaning set forth in Section 1.4(b)(ii) of the
      Agreement.

     

    “Facility
      Termination Date” means the earliest to occur of:  (a) October 1,
      2010, (b) the date determined pursuant to Section 2.2 of the Agreement,
      (c) the date the Purchase Limit reduces to zero pursuant to Section
      1.1(c) of the Agreement, (d) the date that the commitments of the Liquidity
      Providers terminate under the Liquidity Agreements (it being understood that
      the
      date set forth in Liquidity Agreement related to Market Street, as Conduit
      Purchaser, as the scheduled “purchase termination date” shall initially be
      October 1, 2008), (e) any Conduit Purchaser or any Purchaser Agent shall fail
      to
      cause the amendment or modification of any Transaction Document or related
      opinion as required by Moody’s or Standard and Poor’s, and such failure shall
      continue for 30 days after such amendment is initially requested and (f) with
      respect to the LC Bank, the Scheduled Commitment Termination Date.

     

    “Federal
      Funds Rate” means, for any day, the per annum rate set forth in the weekly
      statistical release designated as H.15(519), or any successor publication,
      published by the Federal Reserve Board (including any such successor,
“H.15(519)”) for such day opposite the caption “Federal Funds (Effective).” If
      on any relevant day such rate is not yet published in H.  15(519), the
      rate for such day will be the rate set forth in the daily statistical release
      designated as the Composite 3:30 p.m.  Quotations for
      U.S.  Government Securities, or any successor publication, published
      by the Federal Reserve Bank of New York (including any such successor, the
      “Composite 3:30 p.m.  Quotations”) for such day under the caption
“Federal Funds Effective Rate.” If on any relevant day the appropriate rate is
      not yet published in either H.15(519) or the Composite 3:30
      p.m.  Quotations, the rate for such day will be the arithmetic mean as
      determined by the Administrator of the rates for the last transaction in
      overnight Federal funds arranged before 9:00 a.m.  (New York time) on
      that day by each of three leading brokers of Federal funds transactions in
      New
      York City selected by the Administrator.

     

    “Federal
      Reserve Board” means the Board of Governors of the Federal Reserve System, or
      any entity succeeding to any of its principal functions.

     

    “Fee
      Letters” has the meaning set forth in Section 1.5 of the
      Agreement.

     

    “Funded
      Purchase” shall mean a purchase or deemed purchase of undivided interests in the
      Purchased Interest  under the Agreement which (i) is paid for in
      cash (other than through reinvestment of Collections pursuant to Section
      1.4(b) of the Agreement) or (ii) treated as a Funded Purchase pursuant
      to Section 1.2(e) of the Agreement.

     

    “Governmental
      Acts” has the meaning set forth in Section 1.19 of the
      Agreement.

     

    “Governmental
      Authority” means any nation or government, any state or other political
      subdivision thereof, any central bank (or similar monetary or regulatory
      authority) thereof, any body or entity exercising executive, legislative,
      judicial, regulatory or administrative functions of or pertaining to government,
      including any court, and any Person owned or controlled, through stock or
      capital ownership or otherwise, by any of the foregoing.

     

    

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    “Group
      A
      Obligor” means any Obligor with a short-term rating of at least:  (a)
“A-l” by Standard & Poor’s, or if such Obligor does not have a short-term
      rating from Standard & Poor’s, a rating of “A+” or better by Standard &
Poor’s on its long-term senior unsecured and uncredit-enhanced debt securities,
      and (b) “P-1” by Moody’s, or if such Obligor does not have a short-term
      rating from Moody’s, “Al” or better by Moody’s on its long-term senior unsecured
      and uncredit-enhanced debt securities.

     

    “Group
      B
      Obligor” means an Obligor, not a Group A Obligor, with a
      short-term rating of at least:  (a) “A-2” by Standard & Poor’s, or
      if such Obligor does not have a short-term rating from Standard & Poor’s, a
      rating of “BBB+” to “A” by Standard & Poor’s on its long-term senior
      unsecured and uncredit-enhanced debt securities, and (b) “P-2” by
      Moody’s, or if such Obligor does not have a short-term rating from Moody’s,
“Baal” to “A2” by Moody’s on its long-term senior unsecured and
      uncredit-enhanced debt securities.

     

    “Group
      C
      Obligor” means an Obligor, not a Group A Obligor or a Group B Obligor, with a
      short-term rating of at least:  (a) “A-3” by Standard & Poor’s, or
      if such Obligor does not have a short-term rating from Standard & Poor’s, a
      rating of “BBB-” to “BBB” by Standard & Poor’s on its long-term senior
      unsecured and uncredit-enhanced debt securities, and (b) “P-3” by
      Moody’s, or if such Obligor does not have a short-term rating from Moody’s,
“Baa3” to “Baa2” by Moody’s on its long-term senior unsecured and
      uncreditenhanced debt securities.

     

    “Group
      Commitment” means with respect to any Purchaser Group the aggregate of the
      Commitments of each Purchaser within such Purchaser Group.

     

    “Group
      D
      Obligor” means any Obligor that is not a Group A Obligor, a Group B Obligor or a
      Group C Obligor.

     

    “Indemnified
      Amounts” has the meaning set forth in Section 3.1 of the
      Agreement.

     

    “Indemnified
      Party” has the meaning set forth in Section 3.1 of the
      Agreement.

     

    “Independent
      Director” has the meaning set forth in paragraph 3(c) of Exhibit
      IV to the Agreement.

     

    “Information
      Package” means a report, in substantially the form of Annex A to the
      Agreement, furnished to the Administrator pursuant to the
      Agreement.

     

    “Insolvency
      Proceeding” means:  (a) any case, action or proceeding before any
      court or other Governmental Authority relating to bankruptcy, reorganization,
      insolvency, liquidation, receivership, dissolution, winding-up or relief of
      debtors, or (b) any general assignment for the benefit of creditors of a Person,
      or any composition, marshalling of assets for creditors of a Person, or other,
      similar arrangement in respect of its creditors generally or any substantial
      portion of its creditors, in each of cases (a) and (b) undertaken under
      U.  S.  Federal, state or foreign law, including the
      Bankruptcy Code.

     

    “Intercreditor
      Agreement” means that certain Intercreditor Agreement, dated on or about October
      3, 2007, among Strategic Energy, the Administrator and
      PNC, as administrative agent

     

    

    I-11        STRATEGIC
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    under
      the
      Credit Agreement, as amended, restated, supplemented or
      otherwise modified from time to time.

     

    “Internal
      Revenue Code” means the Internal Revenue Code of 1986, as amended from time to
      time, and any successor statute of similar import, together with the regulations
      thereunder, in each case as in effect from time to time.  References
      to sections of the Internal Revenue Code also refer to any successor
      sections.

     

    “LC
      Bank”
has the meaning set forth in the preamble to the Agreement.

     

    “LC
      Collateral Account” means the account designated as the LC Collateral Account
      established and maintained by the Administrator (for the benefit of the LC
      Bank
      and the LC Participants), or such other account as may be so designated as
      such
      by the Administrator.

     

    “LC
      Commitment” means, the “Commitment” of each LC Participant party hereto as set
      forth under its name on the signature pages to the Agreement or as set forth
      in
      any assignment agreement pursuant to which it became a party
      hereto.

     

    “LC
      Participant” has the meaning set forth in the preamble to the
      Agreement.

     

    “LC
      Participation Amount” shall mean, at any time, the then aggregate undrawn face
      amount of all outstanding Letters of Credit.

     

    “Letter
      of Credit” shall mean any stand-by letter of credit issued by the LC Bank for
      the account of the Seller pursuant to the Agreement.

     

    “Letter
      of Credit Application” has the meaning set forth in Section 1.12 of the
      Agreement.

     

    “Liquidity
      Agent” means each of the banks acting as agent for the various Liquidity Banks
      under each Liquidity Agreement.

     

    “Liquidity
      Agreement” means any agreement entered into in connection with this Agreement
      pursuant to which a Liquidity Provider agrees to make purchases or advances
      to,
      or purchase assets from, any Conduit Purchaser in order to provide liquidity
      for
      such Conduit Purchaser’s Purchases.

     

    “Liquidity
      Provider” means each bank or other financial institution that provides liquidity
      support to any Conduit Purchaser pursuant to the terms of a Liquidity
      Agreement.

     

    “Lock-Box
      Account” means an account listed on Schedule II to the Agreement, in each case
      in the name of the Seller and maintained by the Seller at a bank or other
      financial institution for the purpose of receiving Collections, either by check
      deposit or wire or ACH transfer.

     

    “Lock-Box
      Agreement” means an agreement, in form and substance satisfactory to the
      Administrator, among the Seller, the Servicer, the Administrator, and a Lock-Box
      Bank, as such agreement may be amended, restated, amended and restated,
      supplemented or otherwise modified from time to time.

     

    

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    “Lock-Box
      Bank” means any of the banks or other financial institutions holding one or more
      Lock-Box Accounts.

     

    “Loss
      Reserve” means, on any date, an amount equal to:  (a) the sum of
      Capital plus the LC Participation Amount at the close of business of the Seller
      on such date multiplied by (b)(i) the Loss Reserve Percentage on such date
      divided by (ii) 100% minus the Loss Reserve Percentage on such
      date.

     

    “Loss
      Reserve Percentage” means, on any date, the following expressed as a percentage
      (as opposed to a fraction):

     

    (2.0)
      *(ADR) * (ACS)

    Net
      Receivables Pool Balance

     

    As
      used
      herein:

     

    “ADR”
      means the highest average of the Default Ratios for any three consecutive
      calendar months during the twelve most recent calendar months.

     

    “ACS”
      means the aggregate credit sales made by the Originators (or Receivables of
      such
      Originators otherwise created) during the five most recent calendar months
      and
      25% of the aggregate credit sales made by the Originators (or Receivables of
      such Originators otherwise created) during the calendar month that is five
      months prior to the most recent calendar month.

     

    “Majority
      LC Participants” shall mean LC Participants whose Pro Rata Shares aggregate 51%
      or more.

     

    “Majority
      Purchaser Agents” means, at any time, the Purchaser Agents whose Group
      Commitments aggregate 2/3rds or more of the aggregate of the Group Commitments
      of all Purchaser Groups; provided, however, that so long as any Purchaser
      Group’s Group Commitment is greater than 50% of the aggregate Group Commitments,
      then “Majority Purchaser Agents” shall mean a minimum of two Purchaser Agents
      whose Group Commitments aggregate more than 50% of the aggregate Group
      Commitments.

     

    “Market
      Street” means Market Street Funding LLC, a Delaware limited liability
      company.

     

    “Market
      Street Base Rate” means, for any day, a fluctuating interest rate per annum as
      shall be in effect from time to time, which rate shall be at all times equal
      to
      the higher of:

     

    (a)           the
      rate of interest in effect for such day as publicly announced from time to
      time
      by PNC in Pittsburgh, Pennsylvania as its “prime rate.” Such “prime rate” is set
      by PNC based upon various factors, including PNC’s costs and desired return,
      general economic conditions and other factors, and is used as a reference point
      for pricing some loans, which may be priced at, above or below such announced
      rate, and

     

    (b)           0.50%
      per annum above the latest Federal Funds Rate.

     

    

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    “Material
      Adverse Effect” means, relative to any Person, with respect to any event or
      circumstance, a material adverse effect on:

     

    (a)           the
      assets, operations, business or financial condition of (i) the Seller or (ii)
      Strategic Energy or its Subsidiaries,

     

    (b)           the
      ability of any of the Originators, the Servicer or the Seller to perform its
      obligations under the Agreement or any other Transaction Document to which
      it is
      a party,

     

    (c)           the
      validity or enforceability of the Agreement or any other Transaction Document,
      or the validity, enforceability or collectibility of a material portion of
      the
      Pool Receivables, or

     

    (d)           the
      status, perfection, enforceability or priority of the Administrator’s or any
      Purchaser’s or the Seller’s interest in the Pool Assets.

     

    “Member”
      shall have the meaning set forth in Schedule A to the Seller’s limited liability
      company agreement.

     

    “Minimum
      Dilution Reserve” means, on any date, an amount equal to the product of (a) the
      sum of the Capital plus the LC Participation Amount at the close of business
      of
      the Seller on such date multiplied by (b) (i) the Minimum Dilution Reserve
      Percentage on such date, divided by (ii) 100% minus the Minimum Dilution
      Reserve Percentage on such date.

     

    “Minimum
      Dilution Reserve Percentage” means on any date, the following expressed as a
      percentage (as opposed to a fraction): the product of (x) the Dilution Horizon
      multiplied by (y) the average of the Dilution Ratios for the twelve most
      recent calendar months.

     

    “Monthly
      Settlement Date” means the 23rd day of
      each
      calendar month (or the next succeeding Business Day if such day is not a
      Business Day), beginning October 23, 2007.

     

    “Moody’s”
      means Moody’s Investors Service, Inc.

     

    “Net
      Receivables Pool Balance” means, at any time:  (a) the Outstanding
      Balance of Eligible Receivables then in the Receivables Pool minus (b) Excess
      Concentration.

     

    “Notes”
      means short-term promissory notes issued, or to be issued, by each Conduit
      Purchaser (or by its related commercial paper issuer if such Conduit Purchaser
      does not itself issue commercial paper notes) to fund its investments in
      accounts receivable or other financial assets.

     

    “Obligor”
      means, with respect to any Receivable, the Person obligated to make payments
      pursuant to the Contract relating to such Receivable.

     

    “Order”
      has the meaning set forth in Section 1.20 of the Agreement.

     

    

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    “Originator”
      and “Originators” have the meaning set forth in the Sale Agreement, as the same
      may be modified from time to time by adding new Originators or removing
      Originators, in each case with the prior written consent of the
      Administrator.

     

    “Originator
      Assignment Certificate” means the assignment by each Originator to the Seller,
      in substantially the form of Exhibit C to the Sale Agreement, evidencing
      Seller’s ownership of the Receivables generated by the Originators, as the same
      may be amended, restated, supplemented, amended and restated, or otherwise
      modified from time to time in accordance with the Sale Agreement.

     

    “Outstanding
      Balance” of any Receivable at any time means the then outstanding principal
      balance thereof.

     

    “Paydown
      Notice” has the meaning set forth in Section 1.4(f)(i) of the
      Agreement.

     

    “Payment
      Date” has the meaning set forth in Section 2.1 of the Sale
      Agreement.

     

    “Permitted
      Liens” shall mean the following encumbrances: (a) liens for taxes or
      assessments or other governmental charges or levies not yet due and payable,
      (b)  inchoate and unperfected workers’, mechanics’ or suppliers’ liens
      arising in the ordinary course of business; and (c) any judgment lien
      against any Originator or the Servicer in the aggregate for all such liens
      not
      to exceed $1,000,000 to the extent not unstayed, unbonded, unvacated or
      undischarged for more than 30 days.

     

    “Person”
      means an individual, partnership, corporation (including a business trust),
      joint stock company, trust, unincorporated association, joint venture, limited
      liability company or other entity, or a government or any political subdivision
      or agency thereof.

     

    “PNC”
has
      the meaning set forth in the preamble to the Agreement.

     

    “Pool
      Assets” has the meaning set forth in Section 1.2(d) of the
      Agreement.

     

    “Pool
      Receivable” means a Receivable in the Receivables Pool.

     

    “Portion
      of Capital” means with respect to any Purchaser and its related Capital, the
      portion of such Capital being funded or maintained by such Purchaser(or its
      successors or permitted assigns) by reference to a particular interest rate
      basis.  In addition, at any time when the Capital of the Purchased
      Interest is not divided into two or more such portions, “Portion of Capital”
means 100% of the Capital.

     

    “Pro
      Rata
      Share” shall mean, as to any LC Participant or the LC Bank, a fraction, the
      numerator of which equals the Commitment of such LC Participant or the LC Bank
      at such time and the denominator of which equals the aggregate of the
      Commitments of all LC Participants and the LC Bank at such time.

     

    “Program
      Support Agreement” means and includes any Liquidity Agreement and any other
      agreement entered into by any Program Support Provider providing
      for:  (a) the issuance of one or more letters of credit for the
      account of any Conduit Purchaser in connection with such

     

    

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    Conduit
      Purchaser’s Receivables securitization program, (b) the issuance of one or more
      surety bonds in connection with such Conduit Purchaser’s Receivables
      securitization program for which any Conduit Purchaser is obligated to reimburse
      the applicable Program Support Provider for any drawings thereunder, (c) the
      sale by any Conduit Purchaser to any Program Support Provider of the Purchased
      Interest (or portions thereof) and/or (d) the making of loans and/or other
      extensions of credit to any Conduit Purchaser in connection with such Conduit
      Purchaser’s receivables-securitization program contemplated in the Agreement,
      together with any letter of credit, surety bond or other instrument issued
      thereunder (but excluding any discretionary advance facility provided by the
      Administrator).

     

    “Program
      Support Provider” means and includes any Purchaser, any Liquidity Provider and
      any other Person (other than any customer of the related Conduit Purchaser)
      now
      or hereafter extending credit or having a commitment to extend credit to or
      for
      the account of, or to make purchases from, any Conduit Purchaser pursuant to
      any
      Program Support Agreement.

     

    “Purchase
      and Sale Indemnified Amounts” has the meaning set forth in Section 9.1 of
      the Sale Agreement.

     

    “Purchase
      and Sale Indemnified Party” has the meaning set forth in Section 9.1 of
      the Sale Agreement.

     

    “Purchase
      and Sale Termination Date” has the meaning set forth in Section 1.4 of
      the Sale Agreement.

     

    “Purchase
      and Sale Termination Event” has the meaning set forth in Section 8.1 of
      the Sale Agreement.

     

    “Purchase
      Facility” has the meaning set forth in Section 1.1 of the Sale
      Agreement.

     

    “Purchase
      Limit” means $175,000,000, as such amount may be reduced pursuant to Section
      1.1(c) of the Agreement.  References to the unused portion of the
      Purchase Limit shall mean, at any time, the Purchase Limit minus the sum of
      the
      then aggregate outstanding Capital plus the LC Participation
      Amount.

     

    “Purchase
      Notice” has the meaning set forth in Section 1.2(a) of the
      Agreement.

     

    “Purchase
      Price” has the meaning set forth in Section 2.1 of the Sale
      Agreement.

     

    “Purchase
      Report” has the meaning set forth in Section 2.1 of the Sale
      Agreement.

     

    “Purchased
      Interest” means, at any time, the undivided variable percentage ownership
      interest of all Purchasers, collectively, in:  (a) each and every Pool
      Receivable now existing or hereafter arising, (b) all Related Security with
      respect to such Pool Receivables and (c) all Collections with respect to, and
      other proceeds of, such Pool Receivables and Related Security.  Such
      undivided variable percentage interest shall be computed as:

     

          Capital
      + LC Participation Amount + Total
      Reserves     

    Net
      Receivables Pool Balance

     

    

    I-16        STRATEGIC
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    The
      Purchased Interest shall be determined from time to time pursuant to Section
      1.3 of the Agreement.

     

    “Purchaser
      Agent” has the meaning set forth in the preamble to the Agreement.

     

    “Purchaser
      Group” means, for each Conduit Purchaser, such Conduit Purchaser, its related
      Purchaser Agent and, in the case of Market Street as a Conduit Purchaser, the
      LC
      Bank, and in the case of each other Conduit Purchaser, the related LC
      Participant in addition to itself and Purchaser Agent.

     

    “Purchasers”
      means each Conduit Purchaser, the LC Bank and each LC Participant.

     

    “Purchasers’
      Share” of any amount means such amount multiplied by the Purchased Interest at
      the time of determination.

     

    “Ratable
      Share” means, for each Purchaser Group, such Purchaser Group’s Group Commitment
      divided by the aggregate Group Commitments of all Purchaser Groups.

     

    “Receivable”
      means any indebtedness and other obligations owed to the Seller (as the assignee
      of the related Originator) or any Originator by, or any right of the Seller
      or
      any Originator to payment from or on behalf of, an Obligor, whether constituting
      an account, chattel paper, instrument or general intangible, arising in
      connection with the sale of goods, the rendering of services or the sale of
      electricity by any Originator, and includes the obligation to pay any finance
      charges, fees and other charges with respect thereto. Excluded Receivables
      shall
      not constitute Receivables.  Indebtedness and other obligations
      arising from any one transaction, including indebtedness and other obligations
      represented by an individual invoice or agreement, shall constitute a Receivable
      separate from a Receivable consisting of the indebtedness and other obligations
      arising from any other transaction.

     

    “Receivables
      Pool” means, at any time, all of the then outstanding Receivables purchased by
      the Seller pursuant to the Sale Agreement prior to the Facility Termination
      Date.

     

    “Reimbursement
      Obligation” has the meaning set forth in Section 1.14 of the
      Agreement.

     

    “Related
      Rights” has the meaning set forth in Section 1.1 of the Sale
      Agreement.

     

    “Related
      Security” means, with respect to any Receivable:

     

    (a)           all
      of the Seller’s and each Originator’s interest in any goods (including returned
      goods), and documentation of title evidencing the shipment or storage of any
      goods (including returned goods), relating to any sale giving rise to such
      Receivable,

     

    (b)           all
      instruments and chattel paper that may evidence such Receivable,

     

    (c)           all
      other security interests or liens and property subject thereto from time to
      time
      purporting to secure payment of such Receivable, whether pursuant to the
      Contract related to such Receivable or otherwise, together with all UCC
      financing statements or similar filings relating thereto,

     

    

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    (d)           all
      of the Seller’s and each Originator’s rights, interests and claims under the
      Contracts and all guaranties, warranties, indemnities, insurance (and proceeds
      and premium refunds with respect thereto) and other agreements (including the
      related Contract) or arrangements of whatever character from time to time
      supporting or securing payment of such Receivable or otherwise relating to such
      Receivable, whether pursuant to the Contract related to such Receivable or
      otherwise, and

     

    (e)           all
      of the Seller’s rights, interests and claims under the Sale Agreement and the
      other Transaction Documents.

     

    “Required
      LC Participants” shall mean the LC Participants whose Pro Rata Shares aggregate
      662⁄3% or more.

     

    “Responsible
      Officer” means, with respect to each Originator, the Servicer and the Seller,
      any president, vice president, treasurer, assistant treasurer, secretary,
      assistant secretary, chief financial officer, controller or any other officer
      of
      any such Person charged with the responsibility for administration of any
      Transaction Document.

     

    “Restricted
      Payments” has the meaning set forth in Section 1(n) of Exhibit IV
      of the Agreement.

     

    “Sale
      Agreement” means the Purchase and Sale Agreement, dated as of even date
      herewith, between the Seller and the Originators, as such agreement may be
      amended, restated, supplemented or otherwise modified from time to
      time.

     

    “Scheduled
      Commitment Termination Date” means with respect to the LC Bank, initially
      October 1, 2010, as such date may be extended from time to time in the sole
      discretion of the LC Bank.

     

    “Seller”
      has the meaning set forth in the preamble to the Agreement.

     

    “Seller’s
      Share” of any amount means the greater of:  (a) $0 and (b) such amount
      minus the Purchasers’ Share.

     

    “Servicer”
      has the meaning set forth in the preamble to the Agreement.

     

    “Servicing
      Fee” shall mean the fee referred to in Section 4.6 of the
      Agreement.

     

    “Servicing
      Fee Rate” shall mean the rate referred to in Section 4.6 of the
      Agreement.

     

    “Servicer
      Termination Event” shall mean a Termination Event set forth in any of
paragraphs (a), (b), (c), (d), (k) or
(m) of Exhibit V to the Agreement with
      respect to the
      Servicer.

     

    “Settlement
      Date” means with respect to any Portion of Capital for any Settlement Period,
      (i) prior to the Facility Termination Date, the Monthly Settlement Date and
      (ii)
      on and after the Facility Termination Date, each day selected from time to
      time
      by the Administrator (it

     

    

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    being
      understood that the Administrator may select such Settlement Date to occur
      as frequently as daily), or, in the absence of such selection, the Monthly
      Settlement Date.

     

    “Settlement
      Period” means:  (a) before the Facility Termination
      Date:  (i) initially the period commencing on the date of the initial
      purchase pursuant to Section 1.2 of the Agreement (or in the case of any
      fees payable hereunder, commencing on the Closing Date) and ending on (but
      not
      including) the next Monthly Settlement Date, and (ii) thereafter, each period
      commencing on such Monthly Settlement Date and ending on (but not including)
      the
      next Monthly Settlement Date, and (b) on and after the Facility Termination
      Date:  such period (including a period of one day) as shall be
      selected from time to time by the Administrator or, in the absence of any such
      selection, each period of 30 days from the last day of the preceding Settlement
      Period.

     

    “Solvent”
      means, with respect to any Person at any time, a condition under
      which:

     

    (i)           the
      fair value and present fair saleable value of such Person’s total assets is, on
      the date of determination, greater than such Person’s total liabilities
      (including contingent and unliquidated liabilities) at such time;

     

    (ii)           the
      fair value and present fair saleable value of such Person’s assets is greater
      than the amount that will be required to pay such Person’s probable liability on
      its existing debts as they become absolute and matured (“debts,” for this
      purpose, includes all legal liabilities, whether matured or unmatured,
      liquidated or unliquidated, absolute, fixed, or contingent);

     

    (iii)           such
      Person is and shall continue to be able to pay all of its liabilities as such
      liabilities mature; and

     

    (iv)           such
      Person does not have unreasonably small capital with which to engage in its
      current and in its anticipated business.

     

    For
      purposes of this definition:

     

    (A)           the
      amount of a Person’s contingent or unliquidated liabilities at any time shall be
      that amount which, in light of all the facts and circumstances then existing,
      represents the amount which can reasonably be expected to become an actual
      or
      matured liability;

     

    (B)           the
      “fair value” of an asset shall be the amount which may be realized within a
      reasonable time either through collection or sale of such asset at its regular
      market value;

     

    (C)           the
      “regular market value” of an asset shall be the amount which a capable and
      diligent business person could obtain for such asset from an interested buyer
      who is willing to purchase such asset under ordinary selling conditions;
      and

     

    (D)           the
      “present fair saleable value” of an asset means the amount which can be obtained
      if such asset is sold with reasonable promptness in an arm’s-length transaction
      in an existing and not theoretical market.

     

    

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    “Special
      Member” shall have the meaning set forth in Schedule A to the Seller’s limited
      liability company agreement.

     

    “Spike
      Factor” means, for any calendar month, (a) the positive difference, if any,
      between:  (i) the highest Dilution Ratio for any one calendar month
      during the twelve most recent calendar months and (ii) the arithmetic average
      of
      the Dilution Ratios for such twelve months times (b) (i) the highest
      Dilution Ratio for any one calendar month during the twelve most recent calendar
      months divided by (ii) the arithmetic average of the Dilution Ratios for
      such twelve months.

     

    “Standard
      & Poor’s” means Standard & Poor’s Ratings Service, a division of The
      McGraw-Hill Companies, Inc.

     

    “Strategic
      Energy” has the meaning set forth in the preamble to the Agreement.

     

    “Subsidiary”
      means, as to any Person, a corporation, partnership, limited liability company
      or other entity of which shares of stock of each class or other interests having
      ordinary voting power (other than stock or other interests having such power
      only by reason of the happening of a contingency) to elect a majority of the
      Board of Directors or other managers of such entity are at the time owned,
      or
      management of which is otherwise controlled:  (a) by such Person, (b)
      by one or more Subsidiaries of such Person or (c) by such Person and one or
      more
      Subsidiaries of such Person.

     

    “Termination
      Day” means:  (a) each day on which the conditions set forth in
Section 2 of Exhibit II to the Agreement are not satisfied or (b)
      each day that occurs on or after the Facility Termination Date.

     

    “Termination
      Event” has the meaning specified in Exhibit V to the
      Agreement.

     

    “Termination
      Fee” means, for any Settlement Period during which a Termination Day occurs,
      with respect to any Purchaser, the amount, if any, by which:  (a) the
      additional Discount (calculated without taking into account any Termination
      Fee
      or any shortened duration of such Settlement Period pursuant to the definition
      thereof) that would have accrued during such Settlement Period on the reductions
      of Capital relating to such Settlement Period had such reductions not been
      made,
      exceeds (b) the income, if any, received by the Purchasers from investing the
      proceeds of such reductions of Capital, as determined by the Administrator,
      which determination shall be binding and conclusive for all purposes, absent
      manifest error.

     

    “Total
      Reserves” means, at any time the sum of:  (a) the Yield Reserve, plus
      (b) the greater of (i) the sum of the Loss Reserve plus the Dilution Reserve
      or
      (ii) the Minimum Dilution Reserve plus the Concentration Reserve.

     

    “Transaction
      Documents” means the Agreement, the Lock-Box Agreements, the Fee Letters, the
      Sale Agreement, the Intercreditor Agreement and all other certificates,
      instruments, UCC financing statements, reports, notices and agreements executed
      or delivered under or in connection with the Agreement, in each case as the
      same
      may be amended, restated, supplemented or otherwise modified from time to time
      in accordance with the Agreement.

     

    

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    “Transfer”
      has the meaning set forth in Section 1.1(a) of the
      Agreement.

     

    “UCC”
      means the Uniform Commercial Code as from time to time in effect in the
      applicable jurisdiction.

     

    “United
      States” means the United States of America.

     

    “Unmatured
      Termination Event” means an event that, with the giving of notice or lapse of
      time, or both, would constitute a Termination Event.

     

    “Yield
      Reserve” means, on any date, an amount equal to:  (a) the sum of the
      Capital plus the LC Participation Amount at the close of business of the Seller
      on such date multiplied by (b)(i) the Yield Reserve Percentage on such date
      divided by (ii) 100% minus the Yield Reserve Percentage on such
      date.

     

    “Yield
      Reserve Percentage” means at any time:

     

    
      	
               

            	
              (BR+SFR)
                x l.5 x DSO

            

    

    
      	
               

            	
                   360

            

    

     

    where:

     

    
      	
              BR  =

            	
              the
                Base Rate computed for the most recent Settlement
                Period,

            

    

     

    
      	
              DSO  =

            	
              Days’
                Sales Outstanding, and

            

    

     

    
      	
            	
              SFR  =

            	
              the
                Servicing Fee Rate

            

    

     

    Other
      Terms.  All accounting terms not specifically defined herein shall
      be construed in accordance with generally accepted accounting
      principles.  All terms used in Article 9 of the UCC in the State of
      New York, and not specifically defined herein, are used herein as defined in
      such Article 9.  Unless the context otherwise requires, “or” means
“and/or,” and “including” (and with correlative meaning “include” and
“includes”) means including without limiting the generality of any description
      preceding such term.

     

    

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    EXHIBIT
      II

    CONDITIONS
      OF PURCHASES

     

    1.           Conditions
      Precedent to Effectiveness of the Agreement.  The effectiveness of
      this Agreement is subject to the following conditions precedent that the
      Administrator shall have received on or before the Closing Date, each in form
      and substance (including the date thereof) satisfactory to the
      Administrator:

     

    (a)           Each
      of the counterparts of the Agreement and each other Transaction Document, duly
      executed by the parties thereto.

     

    (b)           Certified
      copies of:  (i) the resolutions of the Board of Directors or members
      or managers, as applicable, of each of the Seller, Strategic Energy and each
      Originator authorizing the execution, delivery and performance by the Seller,
      Strategic Energy and each Originator, as the case may be, of the Agreement
      and
      the other Transaction Documents to which it is a party; (ii) all documents
      evidencing other necessary corporate or organizational action and governmental
      approvals, if any, with respect to the Agreement and the other Transaction
      Documents and (iii) the certificate of incorporation or articles of organization
      and by-laws or limited liability company agreement, as applicable, of the
      Seller, Strategic Energy and each Originator.

     

    (c)           A
      certificate of the Secretary or Assistant Secretary of the Seller, each
      Originator and Strategic Energy certifying the names and true signatures of
      its
      officers who are authorized to sign the Agreement and the other Transaction
      Documents to which it is a party.  Until the Administrator receives a
      subsequent incumbency certificate from the Seller, any Originator, or Strategic
      Energy, as the case may be, the Administrator shall be entitled to rely on
      the
      last such certificate delivered to it by the Seller, such Originator, or
      Strategic Energy, as the case may be.

     

    (d)           Proper
      financing statements (Forms UCC 1 and UCC 3), duly authorized on or before
      the
      Closing Date of such initial purchase suitable for filing under the UCC of
      all
      jurisdictions that the Administrator may deem necessary in order to perfect
      the
      interests of the Seller and the Administrator (for the benefit of the
      Purchasers) contemplated by the Agreement and the Sale Agreement.

     

    (e)           Proper
      financing statements (Form UCC 3), duly authorized and suitable for filing
      under
      the UCC of all jurisdictions that the Administrator may deem necessary to
      release all security interests and other rights of any Person in the
      Receivables, Contracts or Related Security previously granted by the
      Originators, Strategic Energy or the Seller.

     

    (f)           Completed
      search reports from all applicable jurisdictions, dated on or shortly before
      the
      Closing Date, listing (i) the financing statements, if any, filed in all
      applicable jurisdictions that name any of the Originators or the Seller as
      debtor, and (ii) all judgment, tax, ERISA and other liens against any of the
      Originators or the Seller, as the Administrator may request, showing no Adverse
      Claims on any Pool Assets.

     

    (e)           Favorable
      opinions, in form and substance reasonably satisfactory to the Administrator,
      of
      Sidley Austin LLP and Babst, Calland, Clements, Zomnir PC, counsel for the
      Seller, Strategic Energy, the Originators, and the Servicer.

     

     

    II-1        STRATEGIC
      ENERGY
      - RPA

    

    
      

    

    

    (f)           Satisfactory
      results of a review, field examination and audit (performed by representatives
      of the Administrator or by third parties at the direction of the Administrator)
      of the Servicer’s collection, operating and reporting systems, the Credit and
      Collection Policy of the Originators, historical receivables data and accounts,
      including satisfactory results of a review of the Servicer’s operating
      location(s) and satisfactory review and approval of the Eligible Receivables
      in
      existence on the date of the initial purchase under the Agreement.

     

    (g)           Evidence
      of payment by the Seller of all accrued and unpaid fees (including those
      contemplated by the Fee Letters), costs and expenses to the extent then due
      and
      payable on the date thereof, including any such costs, fees and expenses arising
      under or referenced in Section  6.4 of the Agreement and the
      Fee Letters.

     

    (h)           A
      pro forma Information Package representing the performance of the Receivables
      Pool for the calendar month before closing..

     

    (i)           Subject
      to Section 1(s) of Exhibit IV to the Agreement, good standing
      certificates with respect to each of the Seller, Strategic Energy, each
      Originator, and the Servicer issued by the Secretary of State (or similar
      official) of the state of each such Person’s organization or formation and
      principal place of business.

     

    2.           Conditions
      Precedent to All Funded Purchases, Issuances of Letters of
      Credit.  Each Funded Purchase, including the initial Funded
      Purchase but excluding any deemed Funded Purchases made pursuant to Section
      1.2(e) of the Agreement, and the issuance of any Letters of Credit shall be
      subject to the further conditions precedent that:

     

    (a)           in
      the case of each Funded Purchase and the issuance of any Letters of Credit,
      the
      Servicer shall have delivered to the Administrator and each Purchaser Agent
      on
      or before such purchase or issuance, as the case may be, in form and substance
      satisfactory to the Administrator, a completed pro forma Information Package
      to
      reflect the level of Capital, the LC Participation Amount and related reserves
      and the calculation of the Purchased Interest after such subsequent purchase
      or
      issuance, as the case may be, and a completed Purchase Notice in the form of
      Annex B; and

     

    (b)           on
      the date of such Funded Purchase or issuance, as the case may be, the following
      statements shall be true (and acceptance of the proceeds of such Funded Purchase
      or issuance shall be deemed a representation and warranty by the Seller that
      such statements are then true):

     

    (i)           the
      representations and warranties contained in Exhibit III to the Agreement are
      true and correct in all material respects on and as of the date of such Funded
      Purchase or issuance as though made on and as of such date except for
      representations and warranties which apply as to an earlier date (in which
      case
      such representations and warranties shall be true and correct as of such earlier
      date);

     

    (ii)           no
      event has occurred and is continuing, or would result from such Funded Purchase
      or issuance, that constitutes a Termination Event or an Unmatured Termination
      Event;

     

    

     II-2        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

    (iii)           the
      sum of the Capital plus the LC Participation Amount, after giving effect to
      any
      such Funded Purchase, issuance or reinvestment, as the case may be, shall not
      exceed the Purchase Limit and the Purchased Interest shall not exceed 100%;
      and

     

    (iv)           the
      Facility Termination Date has not occurred.

     

    

     

     

    
 

    II-3        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    EXHIBIT
      III

    REPRESENTATIONS
      AND WARRANTIES

     

    1.           Representations
      and Warranties of the Seller.  The Seller represents and warrants
      as follows:

     

    (a)           The
      Seller is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of the State of Delaware, and is duly qualified
      to
      do business and is in good standing as a foreign limited liability company
      in
      every jurisdiction where the nature of its business requires it to be so
      qualified, except where the failure to be so qualified would not have a Material
      Adverse Effect.

     

    (b)           The
      execution, delivery and performance by the Seller of the Agreement and the
      other
      Transaction Documents to which it is a party, including its use of the proceeds
      of purchases and reinvestments:  (i) are within its organizational
      powers; (ii) have been duly authorized by all necessary organizational action;
      (iii) do not contravene or result in a default under or conflict
      with:  (A) its certificate of formation, limited liability company
      agreement or any other organizational document of the Seller, (B) any law,
      rule
      or regulation applicable to it, (C) any indenture, loan agreement, mortgage,
      deed of trust or other material agreement or instrument to which it is a party
      or by which it is bound, or (D) any order, writ, judgment, award, injunction
      or
      decree binding on or affecting it or any of its property; and (iv) do not result
      in or require the creation of any Adverse Claim upon or with respect to any
      of
      its properties.  The Agreement and the other Transaction Documents to
      which it is a party have been duly executed and delivered by the
      Seller.

     

    (c)           No
      authorization, approval or other action by, and no notice to or filing with,
      any
      Governmental Authority or other Person is required for its due execution,
      delivery and performance by the Seller of the Agreement or any other Transaction
      Document to which it is a party, other than the Uniform Commercial Code filings
      referred to in Exhibit II to the Agreement, all of which shall have been
      filed on or before the date of the first purchase hereunder.

     

    (d)           Each
      of the Agreement and the other Transaction Documents to which the Seller is
      a
      party constitutes its legal, valid and binding obligation enforceable against
      the Seller in accordance with its terms, except as enforceability may be limited
      by bankruptcy, insolvency, reorganization or other similar laws from time to
      time in effect affecting the enforcement of creditors’ rights generally and by
      general principles of equity, regardless of whether such enforceability is
      considered in a proceeding in equity or at law.

     

    (e)           There
      is no pending or, to Seller’s best knowledge, threatened action or proceeding
      affecting Seller or any of its properties before any Governmental Authority
      or
      arbitrator.

     

    (f)           No
      proceeds of any purchase or reinvestment will be used to acquire any equity
      security of a class that is registered pursuant to Section 12 of the Securities
      Exchange Act of 1934.

     

     

     

    III-1        STRATEGIC
      ENNERGY
      - RPA

    
      

    

    

    (g)           The
      Seller is the legal and beneficial owner of, and has good and marketable title
      to, the Pool Receivables, the Lock-Box Accounts (and related lock-boxes) and
      Related Security, free and clear of any Adverse Claim (other than Permitted
      Liens solely with respect to the Pool Receivables and Related
      Security).  Upon each purchase or reinvestment, the Administrator or
      the Purchasers shall acquire valid and enforceable perfected security interests,
      to the extent of each Purchaser’s percentage interest of the Purchased Interest,
      in each Pool Receivable then existing or thereafter arising and in the Related
      Security, Collections and other proceeds with respect thereto, free and clear
      of
      any Adverse Claim.  The Agreement creates a valid and continuing
      security interest (as defined in the applicable UCC) in favor of the
      Administrator in the Pool Assets and the Lock-Box Accounts (and related
      lock-boxes), which security interest is prior to all Adverse Claims, and is
      enforceable as such against creditors of and purchases from the
      Seller.  The Pool Assets constitute “accounts”, “general intangibles”
or “tangible chattel paper” within the meaning of the applicable
      UCC.  Each Lock-Box Account constitutes a “deposit account” within the
      meaning of the applicable UCC.  The Seller has caused or will have
      caused, within ten (10) days, the filing of all appropriate UCC financing
      statements in the proper filing offices in the appropriate jurisdictions under
      applicable laws in order to perfect the security interest in the Pool Assets
      and
      the Lock-Box Accounts (and related lock-boxes) granted to the Administrator
      hereunder.  Other than the security interest granted to the
      Administrator pursuant to this Agreement, Seller has not pledged, assigned,
      sold, granted a security interest in, or otherwise conveyed any of the Pool
      Assets or the Lock-Box Accounts (and related lock-boxes).  Seller has
      not authorized the filing of and is not aware of any UCC financing statements
      against Seller that include a description of collateral covering the Pool
      Assets, other than any UCC financing statement relating to the security interest
      granted to the Administrator hereunder or that has been
      terminated.  Seller is not aware of any judgment, ERISA or tax lien
      filings against the Seller.  With respect to any Pool Receivable that
      constitutes “tangible chattel paper”, the Servicer is in possession of the
      original copies of the tangible chattel paper that constitutes or evidences
      such
      Pool Receivables, and the Seller has filed or has caused to be filed within
      ten
      (10) days after the date hereof the financing statements described in this
      section above, each of which will contain a statement that “A purchase of or a
      grant of a security interest in any property described in this financing
      statement will violate the rights of the Purchasers.” The Pool Receivables to
      the extent they are evidenced by “tangible chattel paper” do not have any marks
      or notations indicating that they have been pledged, assigned or otherwise
      conveyed to any Person other than the Seller or the Administrator, for the
      benefit of the Purchasers.

     

    (h)           Each
      Information Package (if prepared by the Seller or one of its Affiliates, or
      to
      the extent that information contained therein is supplied by the Seller or
      an
      Affiliate), exhibit, financial statement, document, book, record, report or
      other information furnished or to be furnished at any time by or on behalf
      of
      the Seller to the Administrator in connection with the Agreement or any other
      Transaction Document to which it is a party, taken as a whole, is or will be
      complete and accurate in all material respects as of its date or (except as
      otherwise disclosed to the Administrator at such time) as of the date so
      furnished; provided, however, that if such Information Package is incomplete
      or
      inaccurate solely due to its inclusion of an untrue representation or warranty
      with respect to any Pool Receivable as set forth in Section 1(g) or
(n)  of Exhibit III, and such Pool Receivable has been
      repurchased in accordance with Section 1.4(e)(ii), such incompleteness or
      inaccuracy shall not effect the completeness and accuracy of such Information
      Package.

     

    

     III-2        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

    (i)           The
      Seller’s principal place of business, chief executive office and state of
      formation (as such terms are used in the UCC) and the office where it keeps
      its
      records concerning the Receivables are located at the address referred to in
      Sections l(b) and 2(b) of Exhibit IV to the
      Agreement.

     

    (j)           The
      names and addresses of all the Lock-Box Banks, together with the account numbers
      of the Lock-Box Accounts at such Lock-Box Banks, are specified in Schedule
      II to the Agreement (or at such other Lock-Box Banks and/or with such other
      Lock-Box Accounts as have been notified to the Administrator in accordance
      with
      the Agreement) and all Lock-Box Accounts are subject to Lock-Box
      Agreements.  With respect to all Lock-Box Accounts (and related
      lock-boxes), the Seller has delivered to the Administrator a fully executed
      Lock-Box Agreement pursuant to which the applicable Lock-Box Bank has agreed,
      following the occurrence and continuation of a Termination Event, to comply
      with
      all instructions given by the Administrator with respect to all funds on deposit
      in such Lock-Box Account (and all funds sent to the respective lock-box),
      without further consent by the Seller or the Servicer.  None of the
      Lock-Box Accounts (and the related lock-boxes) are in the name of any Person
      other than the Seller or the Administrator (on behalf of the
      Purchasers).  The Seller has not consented to any Lock-Box Bank’s
      complying with instructions of any person other than the
      Administrator.

     

    (k)           The
      Seller is not in violation of any order of any court, arbitrator or Governmental
      Authority.

     

    (l)           Neither
      the Seller nor any of its Affiliates has any direct or indirect ownership or
      other financial interest in any Conduit Purchaser.

     

    (m)           The
      Seller is not engaged in the business of extending credit for the purpose of
      purchasing or carrying margin stock (within the meaning of Regulations T, U
      and
      X, as issued by the Federal Reserve Board), and no proceeds of any purchase
      or
      reinvestment hereunder will be used to purchase or carry any margin stock or
      to
      extend credit to others for the purpose of purchasing or carrying any margin
      stock.

     

    (n)           Each
      Pool Receivable included as an Eligible Receivable in the calculation of the
      Net
      Receivables Pool Balance is an Eligible Receivable.

     

    (o)           No
      event has occurred and is continuing, or would result from a purchase in respect
      of, or reinvestment in respect of, the Purchased Interest or from the
      application of the proceeds therefrom, that constitutes a Termination Event
      or
      an Unmatured Termination Event.

     

    (p)           The
      Seller has accounted for each sale of undivided variable percentage ownership
      interests in Receivables in its books and financial statements as sales,
      consistent with generally accepted accounting principles.

     

    (q)           The
      Seller has complied in all material respects with the Credit and Collection
      Policy of the Originators with regard to each Receivable originated by the
      Originators.

     

    (r)           The
      Seller has complied in all material respects with all of the terms, covenants
      and agreements contained in the Agreement and the other Transaction Documents
      that are applicable to it.

     

    

     III-3        STRATEGY
      ENERGY -
      RPA
      
        

      

    

    

    (s)           The
      Seller’s complete organizational name is set forth in the preamble to the
      Agreement, and it does not use and has not during the last six years used any
      other organizational name, trade name, doing-business name or fictitious name,
      except as set forth on Schedule II to the Agreement and except for names
      first used after the date of the Agreement and set forth in a notice delivered
      to the Administrator pursuant to Section 1(1)(iv) of Exhibit IV to
      the Agreement.

     

    (t)           The
      Seller is not an “investment company,” or a company “controlled” by an
“investment company” within the meaning of the Investment Company Act of 1940,
      as amended.

     

    (u)           Each
      remittance of Collections by or on behalf of the Seller or pursuant to the
      Transaction Documents and any related accounts of amounts owing hereunder in
      respect of the Funded Purchases will have been (i) in payment of a debt incurred
      by Seller in the ordinary course of business or financial affairs of the Seller
      and (ii) made in the ordinary course of business or financial affairs of the
      Seller.

     

    (v)           Since
      the date of formation of the Seller as set forth in its certificate of
      formation, no event has occurred that has had a Material Adverse Effect with
      respect to the Seller.

     

    2.           Representations
      and Warranties of Strategic Energy, as the Servicer.  Strategic
      Energy, as the Servicer, represents and warrants jointly and severally as
      follows:

     

    (a)           Strategic
      Energy is a limited liability company duly formed, validly existing and in
      good
      standing under the laws of the State of Delaware, and is duly qualified to
      do
      business and is in good standing as a foreign corporation in every jurisdiction
      where the nature of its business requires it to be so qualified, except where
      the failure to be so qualified would not have a Material Adverse
      Effect.

     

    (b)           The
      execution, delivery and performance by Strategic Energy of its obligations
      under
      the Agreement and the other Transaction Documents to which it is a party,
      including the Servicer’s use for the benefit of the Seller of the proceeds of
      purchases and reinvestments:  (i) are within its organizational
      powers; (ii) have been duly authorized by all necessary organizational action;
      (iii) do not contravene or result in a default under or conflict
      with:  (A) its certificate of incorporation, formation, limited
      liability company agreement, by-laws or any other organizational document of
      Strategic Energy, (B) any law, rule or regulation applicable to it, (C) any
      indenture, loan agreement, mortgage, deed of trust or other material agreement
      or instrument to which it is a party or by which it is bound, or (D) any order,
      writ, judgment, award, injunction or decree binding on or affecting it or any
      of
      its property; and (iv) do not result in or require the creation of any Adverse
      Claim upon or with respect to any of its properties.  The Agreement
      and the other Transaction Documents to which Strategic Energy is a party have
      been duly executed and delivered by Strategic Energy.

     

    (c)           No
      authorization, approval or other action by, and no notice to or filing with
      any
      Governmental Authority or other Person, is required for the due execution,
      delivery and performance by Strategic Energy of the Agreement or any other
      Transaction Document to which it is a party.

     

    

     III-4        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

    (d)           Each
      of the Agreement and the other Transaction Documents to which Strategic Energy
      is a party constitutes the legal, valid and binding obligation of Strategic
      Energy enforceable against Strategic Energy in accordance with its terms, except
      as enforceability may be limited by bankruptcy, insolvency, reorganization
      or
      other similar laws from time to time in effect affecting the enforcement of
      creditors’ rights generally and by general principles of equity, regardless of
      whether such enforceability is considered in a proceeding in equity or at
      law.

     

    (e)           The
      balance sheets of Strategic Energy and its consolidated Subsidiaries as at
      December 31, 2006, and the related statements of income and retained earnings
      for the fiscal year then ended, copies of which have been furnished to the
      Administrator, fairly present the financial condition of Strategic Energy and
      its consolidated Subsidiaries as at such date and the results of the operations
      of Strategic Energy and its Subsidiaries for the period ended on such date,
      all
      in accordance with generally accepted accounting principles, consistently
      applied, and since June 30, 2007, there has been no event or circumstances
      which
      have had a Material Adverse Effect.

     

    (f)           There
      is no pending or, to its best knowledge, threatened action or proceeding
      affecting it or any of its Subsidiaries before any Governmental Authority or
      arbitrator that could be expected to have a Material Adverse
      Effect.

     

    (g)           No
      proceeds of any purchase or reinvestment will be used to acquire any equity
      security of a class that is registered pursuant to Section 12 of the Securities
      Exchange Act of 1934.  No proceeds of any purchase or reinvestment
      will be used for any purpose that violates any applicable law, rule or
      regulation, including Regulations T, U or X of the Federal Reserve
      Board.

     

    (h)           Each
      Information Package (if prepared by Strategic Energy or one of its Affiliates,
      or to the extent that information contained therein is supplied by Strategic
      Energy or an Affiliate), exhibit, financial statement, document, book, record,
      report or other information furnished or to be furnished at any time by or
      on
      behalf of Strategic Energy to the Administrator in connection with the
      Agreement, taken as a whole, is or will be complete and accurate in all material
      respects as of its date or (except as otherwise disclosed to the Administrator
      at such time) as of the date so furnished; provided, however, that if such
      Information Package is incomplete or inaccurate solely due to its inclusion
      of
      an untrue representation or warranty with respect to any Pool Receivable as
      set
      forth in Section 1(g) or (n)  of Exhibit III, and
      such Pool Receivable has been repurchased in accordance with Section
      1.4(e)(ii), such incompleteness or inaccuracy shall not effect the
      completeness and accuracy of such Information Package.

     

    (i)           The
      principal place of business, chief executive office and state of formation
      (as
      such terms are used in the UCC) of Strategic Energy and the office where it
      keeps its records concerning the Receivables are located at the address referred
      to in Section 2(b) of Exhibit IV to the Agreement.

     

    (j)           Strategic
      Energy is not in violation of any order of any court, arbitrator or Governmental
      Authority, which is reasonably likely to have a Material Adverse
      Effect.

     

    

     III-5        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

    (k)           Neither
      Strategic Energy nor any of its Affiliates has any direct or indirect ownership
      or other financial interest in any Conduit Purchaser.

     

    (l)           Strategic
      Energy has complied in all material respects with the Credit and Collection
      Policy of the Originators with regard to each Receivable originated by the
      Originators.

     

    (m)           Strategic
      Energy has complied in all material respects with all of the terms, covenants
      and agreements contained in the Agreement and the other Transaction Documents
      that are applicable to it.

     

    (n)           Strategic
      Energy is not an “investment company” or a company “controlled” by an
“investment company” within the meaning of the Investment Company Act of 1940,
      as amended, as amended.

     

    

     

    

     III-6        STRATEGIC
      ENERGY - RPA
      
        

      

    

    

    EXHIBIT
      IV

    COVENANTS

     

    1.           Covenants
      of the Seller.  Until the latest of (i) the Facility Termination
      Date, (ii) the date on which no Capital of or Discount in respect of the
      Purchased Interest shall be outstanding, (iii) the date on which an amount
      equal
      to 100% of the LC Participation Amount has been deposited in the LC Collateral
      Account and all Letters of Credit have expired and (iv) the date all other
      amounts owed by the Seller under the Agreement to the Purchasers, the Purchaser
      Agents, the Administrator and any other Indemnified Party or Affected Person
      shall be paid in full:

     

    (a)           Compliance
      with Laws, Etc.  The Seller shall comply with all applicable laws,
      rules, regulations and orders, and preserve and maintain its organizational
      existence in good standing, and its rights, franchises, qualifications and
      privileges, except to the extent that the failure so to comply with such laws,
      rules, regulations and orders or the failure so to preserve and maintain such
      rights, franchises, qualifications and privileges would not have a Material
      Adverse Effect.

     

    (b)           Offices,
      Records and Books of Account, Etc.  The Seller:  (i)
      shall keep its principal place of business, chief executive office and state
      of
      formation (as such terms or similar terms are used in the UCC) and the office
      where it keeps its records concerning the Receivables at the address of the
      Seller set forth on Schedule IV or, pursuant to clause (1)(iv)
      below, at any other locations in jurisdictions where all actions reasonably
      requested by the Administrator to protect and perfect the interest of the
      Administrator in the Receivables and related items (including the Pool Assets)
      have been taken and completed and (ii) shall provide the Administrator with
      at
      least 30 days’ written notice before making any change in the Seller’s name or
      making any other change in the Seller’s identity or organizational structure
      (including a Change in Control) that could render any UCC financing statement
      filed in connection with this Agreement “seriously misleading” as such term (or
      similar term) is used in the UCC; each notice to the Administrator pursuant
      to
      this sentence shall set forth the applicable change and the effective date
      thereof.  The Seller also will maintain and implement (or cause the
      Servicer to maintain and implement) administrative and operating procedures
      (including an ability to recreate records evidencing Receivables and related
      Contracts in the event of the destruction of the originals thereof), and keep
      and maintain (or cause the Servicer to keep and maintain) all documents, books,
      records, computer tapes and disks and other information reasonably necessary
      or
      advisable for the collection of all Receivables (including records adequate
      to
      permit the daily identification of each Receivable and all Collections of and
      adjustments to each existing Receivable).

     

    (c)           Performance
      and Compliance with Contracts and Credit and Collection
      Policy.  The Seller shall (and shall cause the Servicer to), at
      its expense, timely and fully perform and comply with all material provisions,
      covenants and other promises required to be observed by it under the Contracts
      related to the Receivables, and timely and fully comply in all material respects
      with the applicable Credit and Collection Policy with regard to each Receivable
      and the related Contract.

     

     

    IV-1        STRATEGIC
      ENERGY
      - RPA

    

    
      

    

    

    (d)           Ownership
      Interest, Etc.  The Seller shall (and shall cause the Servicer
      to), at its expense, take all action (i) necessary and (ii) desirable to the
      Administrator (as reasonably requested by the Administrator) to establish and
      maintain a valid and enforceable undivided variable percentage ownership or
      security interest, to the extent of the Purchased Interest, in the Pool
      Receivables, the Related Security and Collections with respect thereto, and
      a
      first priority perfected security interest in the Pool Assets, in each case
      free
      and clear of any Adverse Claim, in favor of the Administrator (on behalf of
      each
      Purchaser), including taking such action to perfect, protect or more fully
      evidence the interest of each Purchaser as a Purchaser, through the
      Administrator, may reasonably request.  The Seller shall from time to
      time and within the time limits established by law prepare and present to the
      Administrator for the Administrator’s authorization and approval all financing
      statements, amendments, continuations or initial financing statements in lieu
      of
      a continuation statement, or other filings necessary to continue, maintain
      and
      perfect the Administrator’s (on behalf of the Purchasers) security interest in
      the Pool Assets as a first-priority interest.  The Administrator’s
      approval of such filings shall authorize the Seller to file such financing
      statements under the UCC without the signature of the Seller or the
      Administrator or any Purchaser where allowed by applicable
      law.  Notwithstanding anything else in the Transaction Documents to
      the contrary, until the date following the Facility Termination Date on which
      all amounts and other obligations owed pursuant to the Transaction Documents
      shall have been paid in full, neither the Seller, the Servicer nor any other
      Person shall have any authority to file a termination, partial termination,
      release or partial release or any amendment that deletes the name of a debtor
      or
      excludes collateral of any such financing statements without the prior written
      consent of the Administrator.

     

    (e)           Sales,
      Liens, Etc.  The Seller shall not sell, assign (by operation of
      law or otherwise) or otherwise dispose of, or create or suffer to exist any
      Adverse Claim (other than Permitted Liens) upon or with respect to, any or
      all
      of its right, title or interest in, to or under any Pool Assets (including
      the
      Seller’s undivided interest in any Receivable, Related Security or Collections,
      or upon or with respect to any account to which any Collections of any
      Receivables are sent), or assign any right to receive income in respect of
      any
      items contemplated by this paragraph.

     

    (f)           Extension
      or Amendment of Receivables.  Except as provided in the Credit and
      Collection Policy, the Seller shall not, and shall not permit the Servicer
      to,
      extend the maturity or adjust the Outstanding Balance or otherwise modify the
      terms of any Pool Receivable in any material respect, or amend, modify or waive,
      in any material respect, any term or condition of any related Contract (which
      term or condition relates to payments under, or the enforcement of, such
      Contract).

     

    (g)           Change
      in Business or Credit and Collection Policy.  The Seller shall not
      without the prior written consent of the Administrator and each Purchaser Agent
      make (or permit any Originator to make) any material change in the character
      of
      its business or in any Credit and Collection Policy, or any change in any Credit
      and Collection Policy that could have a Material Adverse Effect with respect
      to
      the Receivables.  The Seller shall not make (or permit the any
      Originator to make) any other change to any Credit and Collection Policy without
      giving 30 days’ prior written notice thereof to the Administrator and the
      Purchaser Agents.

     

    

     IV-2        STRATEGIC
      ENERGY - RPA
      
        

      

    

    

    (h)           Audits.  The
      Seller shall (and shall cause the Originators to), from time to time during
      regular business hours as reasonably requested in advance at least 2 days prior
      to each such audit (unless a Termination Event or Unmatured Termination Event
      exists) by the Administrator, permit the Administrator, or its agents or
      representatives:  (i) to examine and make copies of and abstracts from
      all books, records and documents (including computer tapes and disks) in the
      possession or under the control of the Seller (or the Originators) relating
      to
      Receivables and the Related Security, including the related Contracts, (ii)
      to
      visit the offices and properties of the Seller and each Originator for the
      purpose of examining such materials described in clause (i) above, and to
      discuss matters relating to Receivables and the Related Security or the
      Seller’s, Strategic Energy’s or any Originator’s performance under the
      Transaction Documents or under the Contracts with any of the officers,
      employees, agents or contractors of the Seller, Strategic Energy or any
      Originator having knowledge of such matters and (iii) without limiting the
      clauses (i) and (ii) above, to engage certified public accountants
      or other auditors acceptable to the Seller and the Administrator to conduct,
      at
      the Seller’s expense, a review of the Seller’s books and records with respect to
      such Receivables, provided, that at any time when no Termination Event exists
      and is continuing, the Seller shall be required to reimburse the Administrator
      for only two (2) such audits per year.

     

    (i)           Change
      in Lock-Box Banks, Lock-Box Accounts and Payment Instructions
      to  Obligors.  The Seller shall not, and shall not
      permit the Servicer or any Originator to, add or terminate any bank as a
      Lock-Box Bank or any account as a Lock-Box Account from those listed in
Schedule II to the Agreement, or make any change in its instructions to
      Obligors regarding payments to be made to the Seller, any Originator, the
      Servicer or any Lock-Box Account (or related post office box), unless the
      Administrator shall have consented thereto in writing prior to such termination
      or instruction and the Administrator shall have received copies of all
      agreements and documents (including Lock-Box Agreements) that it may request
      in
      connection therewith.

     

    (j)           Deposits
      to Lock-Box Accounts.  The Seller shall (or shall cause the
      Servicer to):   (i) instruct all Obligors to make payments of all
      Receivables to one or more Lock-Box Accounts or to post office boxes to which
      only Lock-Box Banks have access (and shall instruct the Lock-Box Banks to cause
      all items and amounts relating to such Receivables received in such post office
      boxes to be removed and deposited into a Lock-Box Account on a daily basis),
      and
      (ii) deposit, or cause to be deposited, any Collections received by it, the
      Servicer or any Originator into Lock-Box Accounts not later than one (1)
      Business Day after receipt thereof.  Each Lock-Box Account shall at
      all times be subject to a Lock-Box Agreement.  The Seller will not
      (and will not permit the Servicer to) deposit or otherwise credit, or cause
      or
      permit to be so deposited or credited, to any Lock-Box Account cash or cash
      proceeds other than Collections; provided, that, in the event that any
      cash or cash proceeds related to any Excluded Receivable is deposited or
      credited to any Lock-Box Account, the Servicer shall cause all such amounts
      to
      be redirected to the Person entitled thereto within one (1) Business Day after
      the crediting or depositing of such amount into such Lock-Box
      Account.

     

    (k)           Marking
      of Records.  At its expense, the Seller shall:  (i)
      identify (or cause the Servicer to mark) its master data processing records
      relating to Pool Receivables and related Contracts, including with a legend
      evidencing that the undivided percentage ownership interests with regard to
      the
      Purchased Interest related to such Receivables and related Contracts have
      been

     

    

     IV-3        STRATEGIC
      ENERGY
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    sold
      in
      accordance with the Agreement, and (ii) cause each Originator so to mark its
      master data processing records pursuant to the Sale Agreement.

     

    (l)           Reporting
      Requirements.  The Seller will provide to the Administrator and
      each Purchaser Agent (in multiple copies, if requested by the Administrator
      or
      the Purchaser Agent, as applicable) the following:

     

    (i)           as
      soon as available and in any event within 90 days after the end of each fiscal
      year of the Seller, a copy of the annual report for such year for the Seller,
      containing unaudited financial statements for such year certified as to accuracy
      by the chief financial officer or treasurer of the Seller;

     

    (ii)           as
      soon as possible and in any event within three days after the occurrence of
      each
      Termination Event or Unmatured Termination Event, a statement of the chief
      financial officer or treasurer of the Seller setting forth details of such
      Termination Event or Unmatured Termination Event and the action that the Seller
      has taken and proposes to take with respect thereto;

     

    (iii)           promptly
      after the filing or receiving thereof, copies of all reports and notices that
      the Seller, any Affiliate or any ERISA Affiliate files under ERISA with the
      Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.
      S.  Department of Labor or that the Seller or any Affiliate receives
      from any of the foregoing or from any multiemployer plan (within the meaning
      of
      Section 400l(a)(3) of ERISA) to which the Seller or any of its Affiliates is
      or
      was, within the preceding five years, a contributing employer, in each case
      in
      respect of the assessment of withdrawal liability or an event or condition
      that
      could, in the aggregate, reasonably be expected to result in the imposition
      of
      liability on the Seller and/or any such Affiliate;

     

    (iv)           at
      least thirty days before any change in the Seller’s name or any other change
      requiring the amendment of UCC financing statements, a notice setting forth
      such
      changes and the effective date thereof;

     

    (v)           promptly
      after any Responsible Officer of the Seller obtains knowledge thereof, notice
      of
      any:  (A) material litigation, investigation or proceeding that may
      exist at any time between the Seller and any Person or (B) material litigation
      or proceeding relating to any Transaction Document;

     

    (vi)           promptly
      after the occurrence thereof, notice of a material adverse change in the
      business, operations, property or financial or other condition of the Seller,
      the Servicer or any Originator;

     

    (vii)           promptly
      after any Responsible Officer of the Seller obtains knowledge thereof, notice
      of
      the failure of any representation or warranty to be true (when made or at any
      time thereafter) with respect to the Receivables included in the Receivables
      Pool;

     

    (viii)                      notice
      that (A) any Person shall obtain an Adverse Claim upon the Pool Receivables
      or
      Collections with respect thereto, (B) any Person other than the Seller, the
      Servicer or the Administrator shall obtain any rights or direct any action
      with
      respect to

     

    

     IV-4        STRATEGIC
      ENERGY
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    any
      Lock-Box Account (or related lock-box or post office box) or (C) any Obligor
      shall receive any change in payment instructions with respect to Pool
      Receivable(s) from a Person other than the Servicer or the Administrator;
      and

     

    (ix)           such
      other information (including non-financial information) respecting the
      Receivables or the condition or operations, financial or otherwise, of the
      Seller or any of its Affiliates as the Administrator or any Purchaser Agent
      may
      from time to time reasonably request.

     

    (m)           Certain
      Agreements.  Without the prior written consent of the
      Administrator, the Seller will not (and will not permit the Originators to)
      amend, modify, waive, revoke or terminate any Transaction Document to which
      it
      is a party or any provision of Seller’s certificate of formation, limited
      liability company agreement or other organizational document of the
      Seller.

     

    (n)           Restricted
      Payments.

     

    (i)           Except
      pursuant to clause (ii) below, the Seller will not:  (A)
      purchase or redeem any shares of its capital stock, (B) declare or pay any
      dividend or set aside any funds for any such purpose, (C) prepay, purchase
      or
      redeem any Debt, (D) lend or advance any funds or (E) repay any loans or
      advances to, for or from any of its Affiliates (the amounts described in
clauses (A) through (E) being referred to as “Restricted
      Payments”).

     

    (ii)           Subject
      to the limitations set forth in clause (iii) below, the Seller may make
      Restricted Payments so long as such Restricted Payments are made only in one
      or
      more of the following ways:  (A) the Seller may make cash payments
      (including prepayments) on the Company Notes in accordance with their terms,
      and
      (B) if no amounts are then outstanding under the Company Notes, the Seller
      may
      declare and pay distributions.

     

    (iii)           The
      Seller may make Restricted Payments only out of the funds it receives pursuant
      to Sections 1.4(b)(ii) and (iv) and Section 1.4(d) of the
      Agreement.  Furthermore, the Seller shall not pay, make or
      declare:  (A) any distributions if, after giving effect thereto, the
      Seller’s tangible net worth (as determined in accordance with generally accepted
      accounting principles, consistently applied) would be less than $10,000,000,
      or
      (B) any Restricted Payment (including any dividend) if, after giving effect
      thereto, any Termination Event or Unmatured Termination Event shall have
      occurred and be continuing.

     

    (o)           Other
      Business.  The Seller will not:  (i) engage in any
      business other than the transactions contemplated by the Transaction Documents;
      (ii) create, incur or permit to exist any Debt of any kind (or cause or permit
      to be issued for its account any letters of credit or bankers’ acceptances)
      other than pursuant to this Agreement or any Company Note; or (iii) form any
      Subsidiary or make any investments in any other Person; provided, however,
      that
      the Seller shall be permitted to incur minimal obligations to the extent
      necessary for the day-to-day operations of the Seller (such as expenses for
      stationery, audits, maintenance of legal status, etc.).

     

    

     IV-5        STRATEGIC
      ENERGY
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    (p)           Use
      of Seller’s Share of Collections.  The Seller shall apply the
      Seller’s Share of Collections to make payments in the following order of
      priority:  (i) the payment of its expenses (including all obligations
      payable to the Conduit Purchasers and the Administrator under the Agreement
      and
      under the Fee Letters); (ii) the payment of accrued and unpaid interest on
      the
      Company Notes; and (iii) other legal and valid organizational
      purposes.

     

    (q)           Tangible
      Net Worth.  The Seller will not permit its tangible net worth (as
      determined in accordance with generally accepted accounting principles,
      consistently applied), at any time, to be less than $10,000,000.

     

    (r)           Fundamental
      Changes. The Seller shall not, without the prior written consent of the
      Administrator and the Majority Purchaser Agents, permit itself (i) to merge
      or
      consolidate with or into, or convey, transfer, lease or otherwise dispose of
      (whether in one transaction or in a series of transactions) all or substantially
      all of its assets (whether now owned or hereafter acquired) to, any Person
      or
      (ii) to be owned directly or indirectly by any Person other than Strategic
      Energy or an Affiliate thereof and thereby cause Strategic Energy’s percentage
      of ownership or control of the Seller to be reduced.

     

    2.           Covenants
      of Strategic Energy as the Servicer.  Until the latest of (i) the
      Facility Termination Date, (ii) the date on which no Capital of or Discount
      in
      respect of the Purchased Interest shall be outstanding, (iii) the date on which
      an amount equal to 100% of the LC Participation Amount has been deposited in
      the
      LC Collateral Account and all Letters of Credit have expired and (iv) the date
      all other amounts owed by the Seller under the Agreement to the Purchasers,
      the
      Administrator and any other Indemnified Party or Affected Person shall be paid
      in full:

     

    (a)           Compliance
      with Laws, Etc.  The Servicer shall comply (and shall cause the
      Originators to comply) in all material respects with all applicable laws, rules,
      regulations and orders, and preserve and maintain its organizational existence
      in good standing, and its rights, franchises, qualifications and privileges,
      except to the extent that the failure so to comply with such laws, rules,
      regulations or orders or the failure so to preserve and maintain such existence,
      rights, franchises, qualifications and privileges would not have a Material
      Adverse Effect.

     

    (b)           Offices,
      Records and Books of Account, Etc.  The Servicer shall keep (and
      shall cause the Originators to keep) its principal place of business, chief
      executive office and state of formation (as such terms or similar terms are
      used
      in the applicable UCC) and the office where it keeps its records concerning
      the
      Receivables at the address(es) set forth on Schedule IV or, upon at least
      30 days’ prior written notice of a proposed change to the Administrator, at any
      other locations in jurisdictions where all actions reasonably requested by
      the
      Administrator to protect and perfect the interest of the Administrator and
      the
      Purchasers in the Receivables and related items (including the Pool Assets)
      have
      been taken and completed.  The Servicer also will (and will cause the
      Originators to) maintain and implement administrative and operating procedures
      (including an ability to recreate records evidencing Receivables and related
      Contracts in the event of the destruction of the originals thereof), and keep
      and maintain all documents, books, records, computer tapes and disks and other
      information reasonably necessary or advisable for the collection of all
      Receivables (including records adequate to permit the daily identification
      of
      each Receivable and all Collections of and adjustments to each existing
      Receivable).

     

    

     IV-6        STRATEGIC
      ENERGY
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    (c)           Performance
      and Compliance with Contracts and Credit and Collection
      Policy.  The Servicer shall (and shall cause the Originators to),
      at its expense, timely and fully perform and comply with all material
      provisions, covenants and other promises required to be observed by it under
      the
      Contracts related to the Receivables, and timely and fully comply in all
      material respects with the Credit and Collection Policy with regard to each
      Receivable and the related Contract.

     

    (d)           Extension
      or Amendment of Receivables.  Except as provided in the Credit and
      Collection Policy, the Servicer and, to the extent that it ceases to be the
      Servicer, Strategic Energy, shall not extend (and shall not permit the
      Originators to extend), the maturity or adjust the Outstanding Balance or
      otherwise modify the terms of any Pool Receivable in any material respect,
      or
      amend, modify or waive, in any material respect, any term or condition of any
      related Contract (which term or condition relates to payments under, or the
      enforcement of, such Contract).

     

    (e)           Change
      in Business or Credit and Collection Policy.  The Servicer shall
      not make (and shall not permit the Originators to make) (i) without the prior
      written consent of the Administrator and each Purchaser Agent, any material
      change in the character of its business or in any Credit and Collection Policy,
      or (ii) any change in any Credit and Collection Policy that could have a
      Material Adverse Effect.  The Servicer shall not make (and shall not
      permit the Originators to make) any other change in any Credit and Collection
      Policy without giving prior written notice thereof to the Administrator and
      each
      Purchaser Agent.

     

    (f)           Audits.  The
      Servicer shall (and shall cause the Originators to), from time to time during
      regular business hours as reasonably requested in advance (unless a Termination
      Event or Unmatured Termination Event exists) by the Administrator, permit the
      Administrator, or its agents or representatives:  (i) to examine and
      make copies of and abstracts from all books, records and documents (including
      computer tapes and disks) in its possession or under its control relating to
      Receivables and the Related Security, including the related Contracts; (ii)
      to
      visit its offices and properties for the purpose of examining such materials
      described in clause (i) above, and to discuss matters relating to
      Receivables and the Related Security or its performance hereunder or under
      the
      Contracts with any of its officers, employees, agents or contractors having
      knowledge of such matters and (iii), without limiting the clauses (i) and
(ii) above, to engage certified public accountants or other auditors
      acceptable to the Servicer and the Administrator to conduct, at the Servicer’s
      expense (such review shall not be at the Servicer’s expense if the Administrator
      has previously conducted a review within the current fiscal year unless a
      Termination Event has occurred and is continuing (in which case such review
      shall be at the Seller’s expense)), a review of the Servicer’s books and records
      with respect to such Receivables.

     

    (g)           Change
      in Lock-Box Banks, Lock-Box Accounts and Payment Instructions
      to  Obligors.  The Servicer shall not (and shall not
      permit any Originators to) add or terminate any bank as a Lock-Box Bank or
      any
      account as a Lock-Box Account from those listed in Schedule II to the
      Agreement, or make any change in its instructions to Obligors regarding payments
      to be made to the Servicer or any Lock-Box Account (or related post office
      box),
      unless the Administrator shall have consented thereto in writing and the
      Administrator shall have prior to

     

    

     IV-7        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

    such
      termination and instruction received copies of all agreements and documents
      (including Lock-Box Agreements) that it may request in connection
      therewith.

     

    (h)           Deposits
      to Lock-Box Accounts.  The Servicer shall:  (i) instruct
      all Obligors to make payments of all Receivables to one or more Lock-Box
      Accounts or to post office boxes to which only Lock-Box Banks have access (and
      shall instruct the Lock-Box Banks to cause all items and amounts relating to
      such Receivables received in such post office boxes to be removed and deposited
      into a Lock-Box Account on a daily basis); and (ii) deposit, or cause to be
      deposited, any Collections received by it into Lock-Box Accounts not later
      than
      one Business Day after receipt thereof.  Each Lock-Box Account shall
      at all times be subject to a Lock-Box Agreement.

     

    (i)           Preservation
      of Security Interest.  The Servicer shall (and shall cause the
      Seller to) take any and all action as the Administrator may require to preserve
      and maintain the perfection and priority of the security interest of the
      Administrator in the Pool Assets pursuant to this Agreement.

     

    (j)           Marking
      of Records.  At its expense, the Servicer shall mark its master
      data processing records relating to Pool Receivables and related Contracts
      with
      a legend evidencing that the undivided percentage ownership interests with
      regard to the Purchased Interest related to such Receivables and related
      Contracts have been sold in accordance with the Agreement.

     

    (k)           Excluded
      Receivable Amounts.  In the event that any cash or cash proceeds
      related to any Excluded Receivable is deposited or credited to any Lock-Box
      Account, the Servicer, at its expense, shall cause all such amounts to be
      redirected to the Person entitled thereto within one (1) Business Day after
      the
      crediting or depositing of such amount into such Lock-Box Account.

     

    (l)           Reporting
      Requirements.  Strategic Energy shall provide to the Administrator
      and each Purchaser Agent (in multiple copies, if requested by the Administrator
      or the Purchaser Agents, as applicable) the following:

     

    (i)           as
      soon as available and in any event within 60 days after the end of the first
      three quarters of each fiscal year of Strategic Energy, balance sheets of
      Strategic Energy and the consolidated Subsidiaries of Strategic Energy as of
      the
      end of such quarter and statements of income, retained earnings and cash flow
      of
      Strategic Energy and consolidated Subsidiaries of Strategic Energy for the
      period commencing at the end of the previous fiscal year and ending with the
      end
      of such quarter, certified by the chief financial officer or treasurer of such
      Person;

     

    (ii)           as
      soon as available and in any event within 90 days after the end of each fiscal
      year of Strategic Energy, a copy of the annual report for such year for
      Strategic Energy and its consolidated Subsidiaries, containing financial
      statements for such year audited by independent certified public accountants
      of
      nationally recognized standing;

     

    (iii)           together
      with the financial statements required in (i) and (ii) above, a compliance
      certificate in substantially the form of Annex D signed by the senior
      financial

     

    

     IV-8        STRATEGIC
      ENERGY
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    officer
      or treasurer of the Seller or Strategic Energy, or such other Person as may
      be
      acceptable to the Administrator;

     

    (iv)           as
      to the Servicer only, as soon as available and in any event not later than
      two
      (2) Business Days prior to the Monthly Settlement Date, an Information Package
      as of the most recently completed calendar month or, if in the opinion of the
      Administrator reasonable grounds for insecurity exist with respect to the
      collectibility of the Pool Receivables or with respect to the Seller or
      Servicer’s performance or ability to perform its obligations under the
      Agreement, within six (6) Business Days of a request by the Administrator,
      supplemental interim information relating to the Receivables to the extent
      that
      such information is reasonably obtainable for such periods as is specified
      by
      the Administrator (but in no event more frequently than weekly);

     

    (v)           as
      soon as possible and in any event within three days after occurrence of each
      Termination Event or Unmatured Termination Event, a statement of the chief
      financial officer of Strategic Energy setting forth details of such Termination
      Event or Unmatured Termination Event and the action that such Person has taken
      and proposes to take with respect thereto;

     

    (vi)           promptly
      after the sending or filing thereof, copies of all reports that Strategic Energy
      sends to any of its security holders, and copies of all reports and registration
      statements that Strategic Energy or any Subsidiary files with the Securities
      and
      Exchange Commission or any national securities exchange; provided, that any
      filings with the Securities and Exchange Commission that have been granted
      “confidential” treatment shall be provided promptly after such filings have
      become publicly available;

     

    (vii)           promptly
      after the filing or receiving thereof notice of and, upon the request of the
      Administrator, copies of all reports and notices that Strategic Energy or any
      Affiliate or ERISA Affiliate of Strategic Energy files under ERISA with the
      Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.
      S.  Department of Labor or that such Person or any of its Affiliates
      receives from any of the foregoing or from any multiemployer plan (within the
      meaning of Section 4001(a)(3) of ERISA) to which such Person or any Affiliate
      of
      Strategic Energy is or was, within the preceding five years, a contributing
      employer, in each case in respect of the assessment of withdrawal liability
      or
      an event or condition that would reasonably be expected, in the aggregate,
      to
      result in the imposition of material liability on Strategic Energy and/or any
      such Affiliate;

     

    (viii)                      at
      least thirty days before any change in Strategic Energy’s or any Originator’s
      name or any other change requiring the amendment of UCC financing statements,
      a
      notice setting forth such changes and the effective date thereof;

     

    (ix)           promptly
      after a Responsible Officer of Strategic Energy obtains knowledge thereof,
      notice of any:  (A) litigation, investigation or proceeding that may
      exist at any time between Strategic Energy or any of its Subsidiaries and any
      Governmental Authority that, if not cured or if adversely determined, as the
      case may be, would have a Material Adverse Effect; (B) litigation or proceeding
      adversely affecting

     

    

     IV-9        STRATEGIC
      ENERGY
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    such
      Person or any of its Subsidiaries in which the amount involved is $5,000,000
      or
      more or in which injunctive or similar relief is sought; or (C) litigation
      or
      proceeding relating to any Transaction Document;

     

    (x)           promptly
      after the occurrence thereof, notice of a material adverse change in the
      business, operations, property or financial or other condition of Strategic
      Energy or any of its Subsidiaries or any individual Originator;

     

    (xi)           the
      occurrence of a default or any event of default under any other financing
      arrangement evidencing $7,500,000 or more of indebtedness pursuant to which
      Strategic Energy or any Originator is a debtor or an obligor;

     

    (xii)           promptly
      after any Responsible Officer of Strategic Energy obtains knowledge thereof,
      notice of the failure of any representation or warranty to be true (when made
      or
      at any time thereafter) with respect to the Receivables included in the
      Receivables Pool;

     

    (xiii)                      notice
      that (A) any Person shall obtain an Adverse Claim upon the Pool Receivables
      or
      Collections with respect thereto, (B) any Person other than the Seller, the
      Servicer or the Administrator shall obtain any rights or direct any action
      with
      respect to any Lock-Box Account (or related lock-box or post office box) or
      (C)
      any Obligor shall receive any change in payment instructions with respect to
      Pool Receivable(s) from a Person other than the Servicer or the
      Administrator;

     

    (xiv)  on
      or prior to March 31, June 30, September 30 and December 31 of each calendar
      year, beginning on December 31, 2007, an updated version of Schedule VI
      hereto; and

     

    (xv)
      such
      other information respecting the Receivables or the condition or operations,
      financial or otherwise, of Strategic Energy or any of its Affiliates as the
      Administrator may from time to time reasonably request.

     

    3.           Separate
      Existence.  Each of the Seller and Strategic Energy hereby
      acknowledges that the Purchasers, the Conduit Purchasers and the Administrator
      are entering into the transactions contemplated by this Agreement and the other
      Transaction Documents in reliance upon the Seller’s identity as a legal entity
      separate from Strategic Energy and its Affiliates.  Therefore, from
      and after the date hereof, each of the Seller and Strategic Energy shall take
      all steps specifically required by the Agreement or reasonably requested by
      the
      Administrator (with reasonable notice to the Seller) to continue the Seller’s
      identity as a separate legal entity and to make it apparent to third Persons
      that the Seller is an entity with assets and liabilities distinct from those
      of
      Strategic Energy and any other Person, and is not a division of Strategic
      Energy, its Affiliates or any other Person.  Without limiting the
      generality of the foregoing and in addition to and consistent with the other
      covenants set forth herein, each of the Seller and Strategic Energy shall take
      such actions as shall be required in order that:

     

    (a)           The
      Seller will be a limited purpose limited liability company whose activities
      are
      restricted in its limited liability company agreement to:  (i)
      purchasing or otherwise acquiring from the Originators (or their Affiliates),
      owning, holding, granting security interests or selling

     

    

     IV-10        STRATEGIC
      ENERGY
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    interests
      in Pool Assets (or other receivables originated by the Originators or their
      Affiliates, and certain related assets), (ii) entering into agreements for
      the
      selling and servicing of the Receivables Pool (or other receivables pools
      originated by the Originators or their Affiliates), and (iii) conducting such
      other activities as are necessary or appropriate to carry out such
      activities;

     

    (b)           The
      Seller shall not engage in any business or activity except as set forth in
      this
      Agreement and the other Transaction Documents nor incur any indebtedness or
      liability, other than as expressly permitted by the Transaction
      Documents;

     

    (c)           Not
      less than one member of the Seller’s Directors (the “Independent
      Director”) shall be an individual who is not and has not been, within the
      preceding five (5) years, a direct, indirect or beneficial stockholder, officer,
      director, employee, affiliate, associate, customer, creditor, consultant or
      supplier of Strategic Energy or any of its Affiliates.  The Seller’s
      limited liability agreement shall provide that:  (i) the Seller’s
      Board of Directors shall not approve, or take any other action to cause the
      filing of, or join in any filing of, a voluntary bankruptcy or insolvency
      petition, dissolution, liquidation, consolidation, merger, sale of all or
      substantially all of its assets, assignment for the benefit of creditors, admit
      in writing its inability to pay its debts generally as they become due, or
      to
      engage in any other business or activity with respect to the Seller unless
      the
      Independent Director shall approve the taking of such action in writing before
      the taking of such action, and (ii) such provision cannot be amended without
      the
      prior written consent of the Independent Director;

     

    (d)           The
      Independent Director shall not at any time serve as a trustee in bankruptcy
      for
      the Seller, Strategic Energy or any Affiliate thereof;

     

    (e)           Any
      employee, consultant or agent of the Seller will be compensated from the
      Seller’s funds for services provided to the Seller.  The Seller will
      not engage any agents other than its attorneys, auditors and other
      professionals, and a servicer and any other agent contemplated by the
      Transaction Documents for the Receivables Pool, which servicer will be fully
      compensated for its services by payment of the Servicing Fee, and a manager,
      which manager will be fully compensated from the Seller’s funds;

     

    (f)           The
      Seller will contract with the Servicer to perform for the Seller all operations
      required on a daily basis to service the Receivables Pool.  The Seller
      will pay the Servicer the Servicing Fee pursuant hereto.  The Seller
      will not incur any material indirect or overhead expenses for items shared
      with
      Strategic Energy (or any other Affiliate thereof) that are not reflected in
      the
      Servicing Fee.  To the extent, if any, that the Seller (or any
      Affiliate thereof) shares items of expenses not reflected in the Servicing
      Fee
      or the manager’s fee, such as legal, auditing and other professional services,
      such expenses will be allocated to the extent practical on the basis of actual
      use or the value of services rendered, and otherwise on a basis reasonably
      related to the actual use or the value of services rendered; it being
      understood that Strategic Energy shall pay all expenses relating to the
      preparation, negotiation, execution and delivery of the Transaction Documents,
      including legal, agency and other fees;

     

    (g)           The
      Seller’s operating expenses will not be paid by Strategic Energy or any other
      Affiliate thereof;

     

    

     IV-11        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

    (h)           All
      of the Seller’s business correspondence and other communications shall be
      conducted in the Seller’s own name and on its own separate
      stationery;

     

    (i)           The
      Seller’s books and records will be maintained separately from those of Strategic
      Energy and any other Affiliate thereof and any other Person;

     

    (j)           All
      financial statements of Strategic Energy or any Affiliate thereof that are
      consolidated to include Seller will contain detailed notes clearly stating
      that:  (i) a special purpose entity exists as a Subsidiary of
      Strategic Energy, and (ii) the Originators have sold receivables and other
      related assets to such special purpose Subsidiary that, in turn, has sold
      undivided interests therein to certain financial institutions and other
      entities;

     

    (k)           The
      Seller’s assets will be maintained in a manner that facilitates their
      identification and segregation from those of Strategic Energy or any Affiliate
      thereof and any other Person;

     

    (l)           The
      Seller will strictly observe organizational formalities in its dealings with
      Strategic Energy or any Affiliate thereof, and funds or other assets of the
      Seller will not be commingled with those of Strategic Energy or any Affiliate
      thereof except as permitted by the Agreement in connection with servicing the
      Pool Receivables.  The Seller shall not maintain joint bank accounts
      or other depository accounts to which Strategic Energy or any Affiliate thereof
      or any other Person has independent access (other than the Servicer in such
      capacity) and the Seller shall use separate invoices and checks from any other
      Person.  The Seller is not named, and has not entered into any
      agreement to be named, directly or indirectly, as a direct or contingent
      beneficiary or loss payee on any insurance policy with respect to any loss
      relating to the property of Strategic Energy or any Subsidiary or other
      Affiliate of Strategic Energy.  The Seller will pay to the appropriate
      Affiliate the marginal increase or, in the absence of such increase, the market
      amount of its portion of the premium payable with respect to any insurance
      policy that covers the Seller and such Affiliate;

     

    (m)           The
      Seller will maintain arm’s-length relationships with Strategic Energy (and any
      Affiliate thereof).  Any Person that renders or otherwise furnishes
      services to the Seller will be compensated by the Seller at market rates for
      such services it renders or otherwise furnishes to the
      Seller.  Neither the Seller nor Strategic Energy will be or will hold
      itself out to be responsible for the debts of the other or the decisions or
      actions respecting the daily business and affairs of the other.  The
      Seller and Strategic Energy will immediately correct any known misrepresentation
      with respect to the foregoing, and they will not operate or purport to operate
      as an integrated single economic unit with respect to each other or in their
      dealing with any other entity;

     

    (n)           Strategic
      Energy shall not pay the salaries of Seller’s employees, if any;

     

    (o)           The
      Seller does not and will not hold itself responsible for the obligations of
      any
      other Person, and shall not guarantee or become liable for the debts of any
      other Person;

     

    (p)           The
      Seller will conduct its business in its own name and shall hold itself out
      as a
      separate entity from any other Person;

     

    

     IV-12        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

    (q)           The
      Seller shall maintain (i) a sufficient number of employees and/or arrange for
      appropriate contracts with service providers to provide necessary services
      to
      the Seller and (ii) adequate capital in light of its contemplated business
      activities;

     

    (r)           The
      Seller shall not acquire the obligations or securities of any of its
      shareholders; and

     

    (s)           The
      Seller shall not pledge its assets for the benefit of any other Person or make
      any loans or advances to any other Person, except pursuant to the Transaction
      Documents.

     

    

     

    

     IV-13        STRATEGIC
      ENERGY
      - RPA
      
        

      

    

    

 

    EXHIBIT
      V

    TERMINATION
      EVENTS

     

    Each
      of
      the following shall be a “Termination Event”:

     

    (a)           (i)
      the Seller, any Originator or the Servicer (if Strategic Energy or any of its
      Affiliates) shall fail to perform or observe any term, covenant or agreement
      under the Agreement or any other Transaction Document and, except as otherwise
      provided herein, such failure shall continue for 10 Business Days after
      knowledge or notice thereof, (ii) the Seller or the Servicer shall fail to
      make
      when due any payment or deposit to be made by it under the Agreement or any
      other Transaction Document and such failure shall continue unremedied for 2
      days
      or (iii) Strategic Energy shall resign as Servicer, and no successor Servicer
      reasonably satisfactory, to the Administrator shall have been
      appointed;

     

    (b)           Strategic
      Energy (or any Affiliate thereof) shall fail to transfer to any successor
      Servicer when required any rights pursuant to the Agreement that Strategic
      Energy (or such Affiliate) then has as Servicer;

     

    (c)           any
      representation or warranty made or deemed made by the Seller, the Servicer
      or
      any Originator (or any of their respective officers) under or in connection
      with
      the Agreement or any other Transaction Document, or any information or report
      delivered by the Seller, Strategic Energy or Originator or the Servicer pursuant
      to the Agreement or any other Transaction Document, shall prove to have been
      incorrect or untrue in any material respect when made or deemed made or
      delivered and shall remain incorrect or untrue for ten days after knowledge
      or
      notice thereof (if the warranty is of a type that is capable of being
      cured);

     

    (d)           the
      Seller or the Servicer shall fail to deliver the Information Package pursuant
      to
      the Agreement, and such failure shall remain unremedied for two Business
      Days;

     

    (e)           the
      Agreement (and each Lock-Box Agreement, as applicable) or any purchase or
      reinvestment pursuant to the Agreement shall for any reason other than as a
      result of an willful or grossly negligent action by the Administrator or any
      member of a Purchaser Group:  (i) cease to create, or the Purchased
      Interest shall for any reason cease to be, a valid and enforceable perfected
      undivided variable percentage ownership or security interest to the extent
      of
      the Purchased Interest in each Pool Receivable, the Related Security and
      Collections with respect thereto, free and clear of any Adverse Claim (other
      than Permitted Liens), or (ii) cease to create with respect to the Pool Assets,
      or the interest of the Administrator with respect to such Pool Assets shall
      cease to be, a valid and enforceable first priority perfected security interest,
      free and clear of any Adverse Claim (other than Permitted Liens);

     

    (f)           the
      Seller or any Originator shall generally not pay its debts as such debts become
      due, or shall admit in writing its inability to pay its debts generally, or
      shall make a general assignment for the benefit of creditors; or any proceeding
      shall be instituted by or against the Seller or any Originator seeking to
      adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up,
      reorganization, arrangement, adjustment, protection, relief or composition
      of it
      or its debts under any law relating to bankruptcy, insolvency or reorganization
      or relief of debtors, or seeking the entry of an order for relief or the
      appointment of a receiver, trustee, custodian or

     

     

    V-1        STRATEGIC
      ENERGY - RPA

    

    
      

    

    

    other
      similar official for it or for any substantial part of its property and, in
      the
      case of any such proceeding instituted against it (but not instituted by it),
      either such proceeding shall remain undismissed or unstayed for a period of
      60
      days, or any of the actions sought in such proceeding (including the entry
      of an
      order for relief against, or the appointment of a receiver, trustee, custodian
      or other similar official for, it or for any substantial part of its property)
      shall occur; or the Seller or any Originator shall take any corporate or
      organizational action to authorize any of the actions set forth above in this
      paragraph;

     

    (g)           (i)
      the (A) Default Ratio shall exceed 2.5% or (B) the Delinquency Ratio shall
      exceed 6.0%, (ii) the average for three consecutive calendar months
      of:  (A) the Default Ratio shall exceed 1.75%, (B) the Delinquency
      Ratio shall exceed 5.5% or (C) the Dilution Ratio shall exceed 2.5% or (iii)
      at
      any time the Day’s Sales Outstanding shall exceed 60 days;

     

    (h)           [reserved];

     

    (i)           a
      Change in Control shall occur;

     

    (j)           at
      any time (i) the sum of (A) the Capital, plus the LC Participation Amount,
      plus
      (B) the Total Reserves, exceeds (ii) the sum of (A) the Net Receivables Pool
      Balance at such time plus (B) the Purchasers’ Share of the amount of Collections
      then on deposit in the Lock-Box Accounts (other than amounts set aside therein
      representing Discount and fees), and such circumstance shall not have been
      cured
      within two Business Days after knowledge thereof by the Seller, Strategic
      Energy, the Servicer or any Originator; provided that each month upon the due
      date for the Information Package, such parties shall be deemed to have knowledge
      thereof (regardless of whether or not such parties had such knowledge or whether
      or not the Information Package due to be delivered on such date was delivered
      to
      the Administrator);

     

    (k)           (i)
      the Servicer or any Originator shall fail to pay any principal of or premium
      or
      interest on any of its Debt that is outstanding in a principal amount of at
      least $7,500,000 in the aggregate when the same becomes
      due and payable (whether by scheduled maturity, required prepayment,
      acceleration, demand or otherwise), and such failure shall continue after the
      applicable grace period, if any, specified in the agreement, mortgage, indenture
      or instrument relating to such Debt (and shall have not been waived); or (ii)
      any other event shall occur or condition shall exist under any agreement,
      mortgage, indenture or instrument relating to any such Debt and shall continue
      after the applicable grace period, if any, specified in such agreement,
      mortgage, indenture or instrument (and shall have not been waived), if, in
      either case:  (a) the effect of such non-payment, event or condition
      is to give the applicable debtholders the right (whether acted upon or not)
      to
      accelerate the maturity of such Debt, or (b) any such Debt shall be declared
      to
      be due and payable, or required to be prepaid (other than by a regularly
      scheduled required prepayment), redeemed, purchased or defeased, or an offer
      to
      repay, redeem, purchase or defease such Debt shall be required to be made,
      in
      each case before the stated maturity thereof;

     

    (l)           either:  (i)
      a contribution failure shall occur with respect to any Benefit Plan sufficient
      to give rise to a lien on any of the assets of the Seller, any Originator,
      the
      Servicer or any ERISA Affiliate under Section 302(f) of ERISA, (ii) the Internal
      Revenue Service shall file a notice of lien asserting a claim or claims pursuant
      to the Internal Revenue Code with regard to

     

    

    V-2        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    any
      of
      the assets of (a) the Seller or (b) any Originator, the Servicer or any ERISA
      Affiliate, and such lien shall have been filed and not released within 10 days,
      or (iii) the Pension Benefit Guaranty Corporation shall, or shall indicate
      its
      intention in writing to the Seller, any Originator, Strategic Energy or any
      ERISA Affiliate to, either file a notice of lien asserting a claim pursuant
      to
      ERISA with regard to any assets of the Seller, any Originator, Strategic Energy
      or any ERISA Affiliate in an amount in excess of $1,000,000 or terminate
      any Benefit Plan that has unfunded benefit liabilities, or any steps shall
      have
      been taken to terminate any Benefit Plan subject to Title IV of ERISA so as
      to
      result in any liability and such lien shall have been filed and not released
      within 10 days;

     

    (m)           if
      any Transaction Document shall for any reason cease to be effective and valid,
      binding and enforceable in accordance with its terms or the Seller, any
      Originator, Strategic Energy, the Servicer or any other party (other than the
      Administrator or any member of a Purchaser Group) shall, directly or indirectly,
      contest in any manner such effectiveness, validity, binding nature or
      enforceability of any Transaction Document; and

     

    (n)           the
      breach or default by any party (other than the Administrator) of its obligations
      under the Intercreditor Agreement.

     

    

    V-3        STRATEGIC
      ENERGY
      - RPA 
      
        

      

    

    

    SCHEDULE
      I

     

    CREDIT
      AND COLLECTION POLICY

     

    (attached)

     

    
 

     

     

     

    Schedule
      I-1        STRATEGIC ENERGY -
      RPA

    
      

    

    

    SCHEDULE
      II

    LOCK-BOX
      BANKS AND LOCK-BOX ACCOUNTS

     

    

     

    
      	
              Lock-Box
                Bank

            	
              Lock-Boxes

            	 	
              Accounts

            
	
              PNC
                Bank, National Association

            	
              676863

              643249

            	 	
              1019809357

            
	 	 	 	 
	 	
              676863

              643249

            	 	
              1019809349

            

    

    
 

     

     

     

     

     

    Schedule
      II-1        STRATEGIC ENERGY -
      RPA

      
        

      

    

     

    SCHEDULE
      III

    TRADE
      NAMES

     

    Organizational
      Name                                                                                     Trade
      Names / Fictitious Names

     

    
      	
              Strategic
                Energy, L.L.C.

            	
              SEL

            
	 	
              Strategic
                Energy

            
	 	
              Strategic
                Energy LTD

            
	 	
              Expert
                Energy

            

    

    

     

     

     

     

     

    Schedule
      III-1        STRATEGIC
      ENERGY - RPA

     

    
      
        

      

    SCHEDULE
      IV

    OFFICE 
      LOCATIONS

     

    The
      Principal Place of Business, Chief Executive Office and State of Formation
      of
      the Seller is:

     

    Strategic
      Receivables, LLC

     

    Two
      Gateway Center

    Pittsburgh,
      PA 15222-1458

     

    Delaware
      limited liability company

     

    

     

    The
      Seller maintains its master books and records relating to Receivables
      at:

     

    Strategic
      Receivables, LLC

     

    Two
      Gateway Center

    Pittsburgh,
      PA 15222-1458

     

    

     

    The
      Principal Place of Business, Chief Executive Office and State of Formation
      of
      the Servicer:

     

    Strategic
      Energy, L.L.C.

     

    Two
      Gateway Center

    Pittsburgh,
      PA 15222-1458

     

    Delaware
      limited liability company

     

    

     

    The
      Servicer maintains its master books and records relating to the Receivables
      at:

     

    

    Two
      Gateway Center

    Pittsburgh,
      PA 15222-1458

     

     

    
 

    Schedule
      IV-1        STRATEGIC
      ENERGY - RPA

    
      
        

      

    SCHEDULE
      V

     

    EXISTING
      LETTERS OF CREDIT

     

     

     

    
 

     

     

    Schedule
      V-1        STRATEGIC
      ENERGY - RPA

    
      
        

      

    SCHEDULE
      VI

    EXCLUDED
      RECEIVABLE OBLIGORS

     

    (attached)

     

     

     

     

     

    

    Schedule
      VI-1        STRATEGIC
      ENERGY - RPA

    
      
        

      

    SCHEDULE
      VII

    NON-LOCK-BOX-ACCOUNTS

     

    
      	
              Non-Lock-Box
                Bank

            	
              Remittance
                Addresses

            	
              Accounts

            
	
              JPMorgan
                Chase Bank, N.A.

            	
              PO
                Box 910152

              Dallas,
                TX 75391-0152

            	
              77-717-5304

            
	 	
              PO
                Box 911945

              Dallas,
                TX 75391-1945

            	
              77-717-6076

            
	 	
              PO
                Box 88066

              Chicago,
                IL 60695-8066

            	
              53-095-7515

            
	 	
              PO
                Box 915039

              Dallas,
                TX 75391-5039

            	
              32-340-8885

            
	 	
              PO
                Box 915028

              Dallas,
                TX 75391-5028

            	
              32-341-2297

            
	 	
              PO
                Box 88166

              Chicago,
                IL 60695-8166

            	
              32-341-2327

            
	 	
              PO
                Box 915017

              Dallas,
                TX 75391-5017

            	
              32-341-2319

            
	 	
              PO
                Box 27511

              New
                York, NY 10087-7511

            	
              30-415-8941

            
	 	
              PO
                Box 88996

              Chicago,
                IL 60695-8996

            	
              30-415-8968

            
	 	
              PO
                Box 27643

              New
                York, NY 10087-7643

            	
              30-418-0467

            
	 	 	 
	
              LaSalle
                Bank N.A.

               

               

               
                

              

            	
              135
                S. LaSalle St.

               

               

              Schedule
                VII-1 

              
                

              

               

               

              Department
                6413

              Chicago,
                IL 60674-6413

            	
              580-033-6066

               

               

               

              
                

              

            
	 	
              135
                S. LaSalle St.

              Department
                2308

              Chicago,
                IL 60674-2038

            	
              580-033-6090

            

    

    

     

    

     

    

     Schedule
      VII-2 
      
        

      

    

    

    ANNEX
      A

    

     

    FORM
      OF INFORMATION PACKAGE

     

    
      	
               

            	
              (attached)

            

    

     

    

     

     

     

     

     

    Annex
      A-1        STRATEGIC
      ENERGY - RPA

     

     
      
        

      

    

    

    ANNEX
      B

    

     

    FORM
      OF PURCHASE NOTICE

     

    ______________,
      [200_]

     

    

     

    PNC
      Bank,
      National Association, as Administrator and a Purchaser Agent

    One
      PNC
      Plaza, 26th
      Floor

    249
      Fifth
      Avenue

    Pittsburgh,
      PA 15222-2707

    

    Fifth
      Third Bank, as a Purchaser Agent

    38
      Fountain Square Plaza, MD109047

    Cincinnati,
      Ohio 45263

    

    Ladies
      and Gentlemen:

    

    Reference
      is hereby made to the Receivables Purchase Agreement, dated as of October 3,
      2007 (as heretofore amended, restated, supplemented or otherwise modified,
      the
“Receivables Purchase Agreement”), among Strategic Receivables, LLC, as
      Seller, Strategic Energy, L.L.C., as Servicer, the Conduit Purchasers from
      time
      to time party thereto, the Purchaser Agents from time to time party thereto,
      PNC
      Bank, National Association, as Administrator and as LC Bank and the LC
      Participants from time to time party thereto. Capitalized terms used in this
      Purchase Notice and not otherwise defined herein shall have the meanings
      assigned thereto in the Receivables Purchase Agreement.

     

    [This
      letter constitutes a Purchase Notice pursuant to Section 1.2(a) of the
      Receivables Purchase Agreement. Seller desires to sell an undivided variable
      percentage interest in a pool of receivables on ____________, [200_], for a
      purchase price of $______________ ($______________ of which represents the
      Capital funded by the Purchaser Group for which Market Street is a member and
      $______________ of which represents the Capital funded by the Purchaser Group
      for which [____________] is a member). Subsequent to this purchase, the
      aggregate outstanding Capital will be $______________. Each Purchaser Group’s
      Share of such purchase and resulting aggregate Capital and LC Participation
      Amount is set forth on a schedule attached hereto.]1

     

    [This
      letter constitutes a notice pursuant to Section 1.12(a) of the
      Receivables Purchase Agreement.  The Seller desires that LC Bank issue
      a Letter of Credit with a face amount of $__________.  Subsequent to
      this purchase, the LC Amount will be $_________ and the aggregate outstanding
      Capital will be $__________.]2

     

    

      

    

     

      1
        In the case of a
        Borrowing Request.

    

     

      2
        In the case of a
        request for an issuance of a Letter of Credit.

    

    

     

     

    Annex
      B-1        STRATEGIC
      ENERGY - RPA

     

     
      
        

      

    

    
 

    Seller
      hereby represents and warrants as of the date hereof, and as of the date of
      purchase, as follows:

     

    (i)           the
      representations and warranties contained in Exhibit III of the
      Receivables Purchase Agreement are correct in all material respects on and
      as of
      such dates as though made on and as of such dates and shall be deemed to have
      been made on such dates, except for representations and warranties which apply
      as to an earlier date (in which case such representations and warranties shall
      be true and correct in all material respects as of such earlier
      date);

     

    (ii)           no
      Termination Event or Unmatured Termination Event has occurred and is continuing,
      or would result from such purchase;

     

    (iii)           after
      giving effect to the purchase proposed hereby, the Purchased Interest will
      not
      exceed 100% and the Capital plus the LC Participation Amount will not exceed
      the
      Purchase Limit; and

     

    (iv)           the
      Facility Termination Date shall not have occurred.

     

    

     

    

     

     

    Annex
      B-2        STRATEGIC
      ENERGY - RPA

     

     
      
        

      

    

    
 

    IN
      WITNESS WHEREOF, the undersigned has caused this Purchase Notice to be executed
      by its duly authorized officer as of the date first above written.

     

    

     

    
      	 	
              STRATEGIC
                RECEIVABLES, LLC

            
	 	 
	 	 
	 	 
	 	
              By:_________________________________

            
	 	
              Name:______________________________

            
	 	
              Title:_______________________________

            

    

    

     

     

    

    

    Annex
      B-3        STRATEGIC
      ENERGY - RPA

     

    
      
        

      

    ANNEX
      C

    

     

    FORM
      OF PAYDOWN NOTICE

     

    _____________,
      _____

     

    

    PNC
      Bank,
      National Association, as Administrator and a Purchaser Agent

    One
      PNC
      Plaza, 26th
      Floor

    249
      Fifth
      Avenue

    Pittsburgh,
      PA 15222-2707

    

    Fifth
      Third Bank, as a Purchaser Agent

    38
      Fountain Square Plaza, MD109047

    Cincinnati,
      Ohio 45263

    

    

    Ladies
      and Gentlemen:

    

    Reference
      is hereby made to the Receivables Purchase Agreement, dated as of October 3,
      2007 (as heretofore amended, restated, supplemented or otherwise modified,
      the
“Receivables Purchase Agreement”), among Strategic Receivables, LLC, as
      Seller, Strategic Energy, L.L.C., as Servicer, the Conduit Purchasers from
      time
      to time party thereto, the Purchaser Agents from time to time party thereto,
      PNC
      Bank, National Association, as Administrator and as LC Bank and the LC
      Participants from time to time party thereto. Capitalized terms used in this
      paydown notice and not otherwise defined herein shall have the meanings assigned
      thereto in the Receivables Purchase Agreement.

     

    This
      letter constitutes a paydown notice pursuant to Section 1.4(f)(i) of the
      Receivables Purchase Agreement. The Seller desires to reduce the Capital on
      _____________, _____3
      by the application of $_______________ ($_______________ of which shall be
      applied to the Capital funded by the Purchaser Group for which Market Street
      is
      a member and $_______________ of which shall be applied to the Capital funded
      by
      the Purchaser Group for which [_________________] is a member) in cash to pay
      Capital and Discount to accrue (until such cash can be used to pay commercial
      paper notes) with respect to such Capital, together with all costs related
      to
      such reduction of Capital. Subsequent to this paydown, the aggregate Capital
      will be $_______________. Each Purchaser Group’s Share of such reduction and
      resulting aggregate Capital is set forth on a schedule attached
      hereto.

     

    

      

    

     

      3           Notice
        must be given at least two (2) Business Days’ prior to the requested paydown
        date, subject to the proviso set forth in Section 1.4(f)(i) of the
        Receivables Purchase Agreement.

    

    

     

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      C-1        STRATEGIC
      ENERGY - RPA

     
      
        

      

    

    
 

    IN
      WITNESS WHEREOF, the undersigned has caused this paydown notice to be executed
      by its duly authorized officer as of the date first above written

     

    
      	 	
              STRATEGIC
                RECEIVABLES, LLC

            
	 	 
	 	 
	 	 
	 	
              By:_________________________________

            
	 	
              Name:______________________________

            
	 	
              Title:_______________________________

            

    

    

     

    

     

    

     

    

     

    

    

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      C-2        STRATEGIC ENERGY -
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    ANNEX
      D

    to
      Receivables Purchase Agreement

     

    FORM
      OF COMPLIANCE CERTIFICATE

     

    To:  PNC
      Bank, National Association, as Administrator

     

    This
      Compliance Certificate is furnished pursuant to that certain Receivables
      Purchase Agreement, dated as of October 3, 2007 among Strategic Receivables,
      LLC, as seller (the “Seller”), Strategic Energy, L.L.C., as servicer (the
“Servicer”), the Conduit Purchasers from time to time party thereto,
      the
      Purchaser Agents from time to time party thereto, PNC Bank, National
      Association, as administrator (in such capacity, the “Administrator”) and
      as LC Bank and the LC Participants from time to time party thereto (as amended,
      restated, supplemented or otherwise modified (the
“Agreement”).  Capitalized terms used herein and not otherwise
      defined herein shall have the meanings assigned to them in the
      Agreement.

     

    THE
      UNDERSIGNED HEREBY CERTIFIES THAT:

     

    1.           I
      am the duly elected _______________________ of the Servicer.

     

    2.           I
      have reviewed the terms of the Agreement and I have made, or have caused to
      be
      made under my supervision, a detailed review of the transactions and condition
      of Seller during the accounting period covered by the attached financial
      statements.

     

    3.           The
      examinations described in paragraph 2 did not disclose, and I have no knowledge
      of, the existence of any condition or event which constitutes a Termination
      Event or an Unmatured Termination Event, as each such term is defined under
      the
      Agreement, during or at the end of the accounting period covered by the attached
      financial statements or as of the date of this Certificate, except as set forth
      in paragraph 5 below.

     

    4.           Described
      below are the exceptions, if any, to paragraph 3 by listing, in detail, the
      nature of the condition or event, the period during which it has existed and
      the
      action which Seller has taken, is taking, or proposes to take with respect
      to
      each such condition or event:

     

     

     

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      D-1        STRATEGIC ENERGY -
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    The
      foregoing certifications, together with the computations set forth in Schedule
      I
      hereto and the financial statements delivered with this Certificate in support
      hereof, are made and delivered this ____ day of ________________________,
      20___.

     

    STRATEGIC
      RECEIVABLES, LLC

     

    By:                                                      

    Name:                                                                

    Title:                                                                

     

    

     

     

     

    Annex
      D-2        STRATEGIC ENERGY -
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    ANNEX
      E

    

    FORM
      OF LETTER OF CREDIT APPLICATION

     

    ____________,
      [200__]

     

    PNC
      Bank,
      National Association, as Administrator and a Purchaser Agent

    One
      PNC
      Plaza, 26th
      Floor

    249
      Fifth
      Avenue

    Pittsburgh,
      PA 15222-2707

    

    Fifth
      Third Bank, as a Purchaser Agent

    38
      Fountain Square Plaza, MD109047

    Cincinnati,
      Ohio 45263

    

    

    Ladies
      and Gentlemen:

    

    Reference
      is hereby made to the Receivables Purchase Agreement, dated as of October 3,
      2007 (as heretofore amended, restated, supplemented or otherwise modified,
      the
“Receivables Purchase Agreement”), among Strategic Receivables, LLC, as
      Seller, Strategic Energy, L.L.C., as Servicer, the Conduit Purchasers from
      time
      to time party thereto, the Purchaser Agents from time to time party thereto,
      PNC
      Bank, National Association, as Administrator and as LC Bank and the LC
      Participants from time to time party thereto. Capitalized terms used in this
      Purchase Notice and not otherwise defined herein shall have the meanings
      assigned thereto in the Receivables Purchase Agreement.

     

    This
      letter constitutes a notice pursuant to Section 1.12(a) of the
      Receivables Purchase Agreement. Seller desires that LC Bank issue a Letter
      of
      Credit on ________, [20__], with a face amount of $__________. Subsequent to
      this purchase, the LC Participation Amount will be $________ and the aggregate
      outstanding Capital will be $__________. Each Purchaser Group’s Share of such
      purchase and resulting aggregate Capital and LC Participation Amount is set
      forth on a schedule attached hereto.

     

    Seller
      hereby represents and warrants as of the date hereof, and as of the date of
      purchase, as follows:

    

    (i)
      the
      representations and warranties contained in Exhibit III of the Receivables
      Purchase Agreement are correct in all material respects on and as of such dates
      as though made on and as of such dates and shall be deemed to have been made
      on
      such dates, except for representations and warranties which apply as to an
      earlier date (in which case such representations and warranties shall be true
      and correct in all material respects as of such earlier date);

     

    

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      E-1        STRATEGIC ENERGY -
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    (ii)
      no
      Termination Event or Unmatured Termination Event has occurred and is continuing,
      or would result from such purchase;

     

     

    (iii)
      after giving effect to the purchase proposed hereby, the Purchased Interest
      will
      not exceed 100% and the Capital plus the LC Participation Amount will not exceed
      the Purchase Limit; and

     

    (iv)
      the
      Facility Termination Date shall not have occurred.

     

    

     

    

     

     

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      E-2        STRATEGIC
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    IN
      WITNESS WHEREOF, the undersigned has caused this Letter of Credit Application
      to
      be executed by its duly authorized officer as of the date first above
      written.

     

    
      	 	
              STRATEGIC
                RECEIVABLES, LLC

            
	 	 
	 	 
	 	 
	 	
              By:_________________________________

            
	 	
              Name:______________________________

            
	 	
              Title:_______________________________

            

    

    

     

    

     

     

     

    Annex
      E-3        STRATEGIC
      ENERGY - RPA

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