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Exhibit 10.30    
  

Execution Copy  

 DEBT SERVICE RESERVE LETTER OF CREDIT

AND REIMBURSEMENT AGREEMENT  

 among  

 HOMER CITY OL1 LLC,

as Borrower  

 and  

 WESTDEUTSCHE LANDESBANK GIROZENTRALE,

NEW YORK BRANCH

as Issuing Bank and as Agent  

 and  

 THE BANKS NAMED HEREIN  

 Dated as of December 7, 2001  

 
  
 

    Table of Contents    
  

	 
	 	 
	 	Page

	ARTICLE I DEFINITIONS; CONSTRUCTION	 	1
	 	SECTION 1.1	 	Definitions	 	1
	 	SECTION 1.2	 	Construction	 	5
	

ARTICLE II DEBT SERVICE RESERVE LETTER OF CREDIT	
 	

5
	 	SECTION 2.1	 	Commitments	 	5
	 	SECTION 2.2	 	Amount and Term of Debt Service Reserve Letter of Credit	 	5
	 	SECTION 2.3	 	Participations in Debt Service Reserve Letter of Credit	 	5
	 	SECTION 2.4	 	Drawing and Reimbursement	 	5
	 	SECTION 2.5	 	Fees	 	7
	 	SECTION 2.6	 	Interest	 	7
	 	SECTION 2.7	 	Repayment	 	7
	 	SECTION 2.8	 	Prepayments	 	8
	 	SECTION 2.9	 	Security	 	8
	 	SECTION 2.10	 	Payments	 	8
	 	SECTION 2.11	 	Computation of Interest and Fees	 	8
	 	SECTION 2.12	 	Payments on Non-Business Days	 	9
	 	SECTION 2.13	 	Sharing of Payments, Etc.	 	9
	 	SECTION 2.14	 	Evidence of Debt	 	9
	 	SECTION 2.15	 	Increased Debt Service Reserve Letter of Credit Costs	 	9
	 	SECTION 2.16	 	Capital Adequacy	 	10
	 	SECTION 2.17	 	Taxes	 	10
	 	SECTION 2.18	 	Change of Law	 	11
	 	SECTION 2.19	 	Non-Availability	 	12
	 	SECTION 2.20	 	Assignments by Banks	 	12
	 	SECTION 2.21	 	Reduction in Commitments/DSR Loans	 	13
	 	SECTION 2.22	 	Right of Set-off	 	13
	 	SECTION 2.23	 	Minimum Amounts	 	13
	

ARTICLE III CONDITIONS PRECEDENT	
 	

13
	 	SECTION 3.1	 	Conditions Precedent to Issuance of Debt Service Reserve Letter of Credit	 	13
	

ARTICLE IV REPRESENTATIONS AND WARRANTIES	
 	

15
	

ARTICLE V COVENANTS	
 	

15
	

ARTICLE VI DEFAULTS AND REMEDIES	
 	

16
	 	SECTION 6.1	 	Events of Default	 	16
	 	SECTION 6.2	 	Remedies	 	17
	

ARTICLE VII CHARACTER OF OBLIGATIONS	
 	

17
	 	SECTION 7.1	 	Obligations Absolute	 	17
	 	SECTION 7.2	 	No Personal Liability; Termination	 	18
	 	SECTION 7.3	 	Limited Liability of Agent and Banks	 	18
	

ARTICLE VIII THE AGENT	
 	

19
	 	SECTION 8.1	 	Authorization and Action	 	19
	 	SECTION 8.2	 	Agent's Reliance, Etc.	 	19
	 	SECTION 8.3	 	Issuing Bank and Affiliates	 	20
	 	SECTION 8.4	 	Bank Credit Decision	 	20
	 	SECTION 8.5	 	Indemnification	 	20

i

 

	 	SECTION 8.6	 	Successor Agent	 	20
	 	SECTION 8.7	 	Collateral	 	21
	

ARTICLE IX MISCELLANEOUS	
 	

21
	 	SECTION 9.1	 	Amendments, Etc.	 	21
	 	SECTION 9.2	 	Notices, Etc.	 	21
	 	SECTION 9.3	 	No Waiver; Remedies	 	21
	 	SECTION 9.4	 	Costs and Expenses	 	22
	 	SECTION 9.5	 	Application of Moneys	 	22
	 	SECTION 9.6	 	Severability	 	22
	 	SECTION 9.7	 	Limitation of Liability	 	22
	 	SECTION 9.8	 	Binding Effect	 	23
	 	SECTION 9.9	 	Assignments and Participations	 	23
	 	SECTION 9.10	 	Indemnification	 	24
	 	SECTION 9.11	 	Further Assurances	 	25
	 	SECTION 9.12	 	Governing Law	 	25
	 	SECTION 9.13	 	Consent to Jurisdiction and Venue	 	25
	 	SECTION 9.14	 	Headings	 	25
	 	SECTION 9.15	 	Execution in Counterparts	 	25
	 	SECTION 9.16	 	Waiver of Jury Trial	 	25

	Exhibit A	 	Form of Debt Service Reserve Letter of Credit
	

Exhibit B	
 	

Debt Service Reserve Letter of Credit Promissory Note
	

Exhibit C	
 	

Form of Commitment Transfer Supplement
	

Schedule I	
 	

Filings with the Securities and Exchange Commission

ii

 
 

DEBT SERVICE RESERVE LETTER OF CREDIT
  AND REIMBURSEMENT AGREEMENT    
  

        This Debt Service Reserve Letter of Credit and Reimbursement Agreement (this "Agreement"), dated as of
December 7, 2001, is entered into by and among (1) HOMER CITY OL1 LLC, a Delaware limited liability company (the "Borrower"),
(2) WESTDEUTSCHE LANDESBANK GIROZENTRALE, NEW YORK BRANCH, as the issuer of the Debt Service Reserve Letter of Credit referred to herein (in such capacity, the "Issuing
Bank") and as a Bank (as defined below), (3) CREDIT SUISSE FIRST BOSTON, NEW YORK BRANCH, as a Bank (as defined below), (4) each bank or other entity that is, or
becomes pursuant to Section 9.9, a party hereto (individually, a "Bank" and collectively, the
"Banks") and (5) WESTDEUTSCHE LANDESBANK GIROZENTRALE, NEW YORK BRANCH, as agent (in such capacity, together with its successors in such capacity, the
"Agent") for the Banks. 

 
 

RECITALS    
  

        A.    Pursuant
to the Lease Indenture of Trust and Security Agreement, dated as of December 7, 2001 (the "Lease
Indenture"), among the Borrower, The Bank of New York, as successor to the United States Trust Company of New York, as Security Agent (the "Security
Agent") and The Bank of New York, as successor to the United States Trust Company of New York, as trustee (in such capacity, together with its successors in such capacity, the
"Lease Indenture Trustee"), the Borrower issued two series of lessor notes in respect thereof (collectively, the "Lessor
Notes"). 

        B.    The
Borrower has requested that the Issuing Bank issue and the Banks participate in, and the Issuing Bank is willing to issue and the Banks are willing to participate in,
the Debt Service Reserve Letter of Credit (as defined below) upon the terms and conditions hereinafter set forth. 

 
 

AGREEMENT    
  

        NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto, hereby agree as follows: 

ARTICLE I  

 DEFINITIONS; CONSTRUCTION  

        SECTION
1.1    Definitions.    (a) Terms defined in the Participation Agreement (in the form of such terms as
they exist on the date of this Agreement and as they may hereafter be amended from time to time, but only to the extent that the incorporation of any such amendments into this Agreement has been
consented to by the Required Banks in writing) have, unless the same are defined herein or the context otherwise requires, the same meaning when used herein (with appropriate substitutions). 

        (b)  The
following terms are used in this Agreement with the following respective meanings: 

        "Adjusted Base Rate" means the higher of (i) the Federal Funds Rate plus .50% and (ii) the Prime Rate. 

        "Adjusted Base Rate Loan" means a DSR Loan bearing interest at the Adjusted Base Rate. 

        "Amended and Restated Security Deposit Agreement" means the Amended and Restated Security Deposit Agreement, dated as of
December 7, 2001, among EME Homer City Generation, L.P. and The Bank of New York, as Collateral Agent. 

        "Applicable Law" shall mean, with respect to any Person, property or matter, any of the following applicable thereto: any statute, law,
regulation, ordinance, rule, judgment, rule of common law, order, decree, arbitral decision, governmental approval, approval, concession, grant, franchise, license, agreement or other governmental
restriction, or any voluntary restraint, policy or 

 

guideline with which such Person has formally agreed to comply, whether in effect as of the date of this Agreement or thereafter and in each case as amended. 

        "Bank" has the meaning set forth in the Preamble hereto. 

        "Borrower" has the meaning set forth in the Preamble hereto. 

        "Business Day" means a day (other than a Saturday or Sunday) on which banks are open for business in New York, New York, and, in matters
relating to the determination of a LIBOR Rate or Interest Period, a day on which the London interbank market deals in U.S. Dollar deposits. 

        "Closing Date" means the date on which the conditions precedent set forth in  Section 3.1 have been fulfilled and the Debt Service Reserve Letter of Credit is
issued. 

        "Collateral" has the meaning set forth in the Lease Indenture. 

        "Collateral Agent" means The Bank of New York, as successor to the United States Trust Company of New York, as collateral agent under the
Amended and Restated Security Deposit Agreement, or any successor thereto pursuant to the terms thereof. 

        "Commitment" has the meaning set forth in Section 2.1. 

        "Commitment Transfer Supplement" means a Commitment Transfer Supplement entered into by a Bank and another Person substantially in the
form of Exhibit C. 

        "Damages" shall have the meaning set forth in Section 9.10. 

        "Debt Service Reserve Account" has the meaning set forth in Section 5.4 of the
Lease Indenture. 

        "Debt Service Reserve Amount" means the amount required to be on deposit from time to time in the Debt Service Reserve Account. 

        "Debt Service Reserve Letter of Credit" means a letter of credit substantially in the form of  Exhibit A, issued or to be issued by the Issuing Bank, or any letter
of credit issued by the Issuing Bank in replacement thereof. 

        "Debt Service Reserve Letter of Credit Promissory Note" shall mean a promissory note substantially in the form of  Exhibit B attached hereto. 

        "Default" means an event that with the giving of any required notice and/or the lapse of any required time would constitute an Event of
Default. 

        "Drawing" means a drawing under the Debt Service Reserve Letter of Credit. 

        "DSR Loan" has the meaning set forth in Section 2.4. 

        "DSR Note" has the meaning set forth in Section 2.14(a). 

        "DSR Noteholder" means Westdeutsche Landesbank Girozentrale, New York Branch. 

        "Event of Default" has the meaning set forth in Section 6.1. 

        "Expiration Date" means the earlier of April 1, 2002 and the date on which the Debt Service Reserve Letter of Credit is earlier
terminated in accordance with the provisions hereof. 

        "Federal Funds Rate" means, for any period, a fluctuating interest rate per annum equal
for each day during such period to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published
for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York or, if such rate is not so published for any day that is a 

2

 

Business Day, the average of the quotations for such day on such transactions received by the Agent from three federal funds brokers of recognized standing selected by it. 

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

        "Indemnified Party" has the meaning set forth in Section 9.10. 

        "Interest Payment Date" means, with respect to (i) any Adjusted Base Rate Loan, the first Business Day of each April and October,
and (ii) any LIBOR Rate Loan, the last day of each Interest Payment with respect thereto, in each case, commencing on the first such date after the applicable Drawing giving rise to such DSR
Loan, and any date on which interest on such DSR Loan becomes due and payable upon the prepayment thereof, the final maturity date thereof, the declaration of acceleration with respect thereto, or
otherwise. 

        "Interest Period" means, with respect to any LIBOR Rate Loan, an interest period of one (1), two (2), three (3) or six
(6) months (or, such other period as may be mutually agreed to among the Borrower and the Banks); provided, however, that such Interest Period
shall, in all events, end no later than the next Principal Payment Date to occur. 

        "Issuer of the Debt Service Reserve Letter of Credit" means Westdeutsche Landesbank Girozentrale, New York Branch. 

        "Issuing Bank" has the meaning set forth in the Preamble hereto. 

        "Lease Indenture" has the meaning set forth in Recital A. 

        "Lease Indenture Trustee" has the meaning set forth in Recital A. 

        "Lessor Notes" has the meaning set forth in Recital A.

        "Letter of Credit Documents" means this Agreement, the DSR Notes and the Debt Service Reserve Letter of Credit. 

        "LIBOR Rate" means, for any DSR Loan bearing interest at the LIBOR Rate, a rate per annum
equal to the offered rate for deposits in United States dollars (in the approximate amount and having
approximately the same maturity as the LIBOR Rate Loan to be made) which appears on the Telerate LIBOR screen as of 11:00 a.m. (London time), two (2) Business Days prior to the first day
of the Interest Period for such LIBOR Rate Loan, and in case of variations in rates, the arithmetic average thereof rounded upwards, if necessary, to the nearest 1/100 of 1%, calculated by the Agent. 

        "LIBOR Rate Loan" means a DSR Loan bearing interest at the LIBOR Rate. 

        "Material Adverse Effect" shall mean any event, development or circumstance that has had or could reasonably be expected to have a
material adverse effect on (a) the business, assets, results of operations or financial condition of the Borrower, (b) the ability of the Borrower to perform or comply with its
obligations under any of the Operative Documents, (c) the validity or enforceability of any of the Operative Documents, the Liens granted thereunder or the material rights and remedies of the
parties thereto, or (d) with respect to the Owner Participant's interest in the Facility, the residual value or remaining useful life of the Facility. 

        "Monthly Transfer Date" has the meaning given such term in the Amended and Restated Security Deposit Agreement. 

        "Non-U.S. Bank" shall have the meaning set forth in Section 2.17(c). 

3

 

        "Obligations" means all of the obligations of the Borrower to the Banks and the Agent under this Agreement and the DSR Notes, whether for
principal (including reimbursement of amounts drawn under the Debt Service Reserve Letter of Credit), interest, fees, expenses, indemnification or otherwise. 

        "Outstanding Amount" means an amount not in excess of $10,605,180 at any time as the same may be reduced, increased or reinstated from
time to time in accordance with the terms and provisions hereof and of the Debt Service Reserve Letter of Credit. 

        "Participant" has the meaning set forth in Section 9.9(b). 

        "Participation Agreement" means the Participation Agreement by and among Homer City, the Owner Lessor, Wells Fargo Bank Northwest,
National Association, not in its individual capacity but solely as Owner Manager, General Electric Capital Corporation, as the Owner Participant, Homer City Funding LLC, as Lender, the Lease Indenture
Trustee and United States Trust Company of New York, not in its
individual capacity but solely as Bondholder Trustee (as amended, modified and supplemented and in effect from time to time). 

        "Prime Rate" means the variable rate of interest per annum officially announced or
published by the Agent from time to time as its "prime rate," such rate being set by the Agent as a general reference rate of interest, taking into account such factors as the Agent may deem
appropriate, it being understood that many of the Agent's commercial or other loans are priced in relation to such rate, that it is not necessarily the lowest or best rate actually charged to any
customer and that the Agent may make various commercial or other loans at rates of interest having no relationship to such rate. For purposes of this Agreement, each change in the Prime Rate shall be
effective as of the opening of business on the date announced as the effective date of the change in such "prime rate." 

        "Principal Payment Date" means, with respect to any DSR Loan, the first Business Day of each April and October, commencing on the first
such date after the applicable Drawing giving rise to such DSR Loan, and any date on which all or a portion of the principal of any DSR Loan becomes due and payable upon the prepayment thereof, the
final maturity date thereof, the declaration of acceleration with respect thereto, or otherwise. 

        "Purchasing Bank" has the meaning set forth in Section 9.9(a). 

        "Ratable Share" shall have the meaning set forth in Section 2.3. 

        "Regulations T, U and X" shall mean Regulations T, U and X of the Federal Reserve System of the United States (or any successors thereto). 

        "Regulatory Change" means, subsequent to the date of this Agreement, any adoption or change in United States Federal, state or municipal
or foreign law or regulations (including without limitation Regulation D) or the adoption or change or making of any application, interpretation, directive, request or guideline of or under any
United States federal, state or municipal or foreign law or regulations by any court, central bank or Governmental Authority. 

        "Required Banks" means, at any time, Banks (one of which shall be the Agent) owed at least 662/3% of the sum of the
Obligations then outstanding and/or the Commitments; provided, however, that, if and so long as there are only two Banks, then "Required Banks" shall
mean both of such Banks. 

        "Required Lease Indenture Secured Parties" has the meaning set forth in the Lease Indenture. 

        "Reserve Requirement" means, for DSR Loans bearing interest at the LIBOR Rate, the rate (expressed as a percentage) at which reserves
(including any marginal, supplemental or emergency reserves) are required to be maintained during the Interest Period therefor under Regulation D by 

4

 

member banks of the Federal Reserve System in New York City with deposits exceeding one billion U.S. dollars against "Eurocurrency liabilities" (as such term is used in Regulation D). 

        "Security Agent" has the meaning set forth in Recital A. 

        "Taxes" has the meaning set forth in Section 2.17(a). 

        "Termination Notice" has the meaning set forth in Section 2.2(d). 

        "Trustee" has the meaning set forth in Recital A. 

        SECTION
1.2    Construction.    In this Agreement, unless expressly specified to the contrary: the singular includes
the plural and the plural the singular; words importing any gender include the other gender; references to statutes are to be construed as including all statutory provisions consolidating, amending or
replacing the statute referred to; references to "writing" include printing, typing, lithography and other means of reproducing words in a tangible, visible form; the words "including," "includes" and
"include" shall be deemed to be followed by the words "without limitation"; references to articles, sections (or subdivisions of sections), recitals, appendices, exhibits, annexes or schedules are to
those of this Agreement; references to agreements and other instruments shall be deemed to include all amendments and other modifications to such agreements and instruments, but only to the extent
such amendments and other modifications are not prohibited by the terms of this Agreement; references to Persons include their respective permitted successors and assigns and, in the case of
Governmental Authorities, Persons succeeding to their respective functions and capacities; and all accounting terms used in this Agreement shall be interpreted, all accounting determinations under
this Agreement shall be made and all financial statements required to be delivered under this Agreement shall be prepared in accordance with generally accepted accounting principles as in effect from
time to time. 

ARTICLE II  

 DEBT SERVICE RESERVE LETTER OF CREDIT  

        SECTION
2.1    Commitments.    Each Bank irrevocably agrees severally, on the terms and conditions contained in this
Agreement, to participate in the Debt Service Reserve Letter of Credit in an aggregate amount not to exceed at any time outstanding the amount set forth opposite such Bank's name on the signature
pages hereof or, if such Bank has entered into one or more Commitment Transfer Supplements, set forth for such Bank in the register maintained by the Agent (such agreement by such Bank, as the same
may be reduced from time to time pursuant to the terms of this Agreement, herein called such Bank's "Commitment"). 

        SECTION
2.2    Amount and Term of Debt Service Reserve Letter of Credit.    (a) Subject to the terms and
conditions contained in this Agreement, the Issuing Bank irrevocably agrees to issue the Debt Service Reserve Letter of Credit on the Closing Date for the account of the Borrower in favor of the Lease
Indenture Trustee, for the benefit of the holders of the Lessor Notes, in the face amount of $10,605,180, subject to reduction, increase and reinstatement as provided hereinafter and in the Debt
Service Reserve Letter of Credit. The Debt Service Reserve Letter of Credit shall expire and all obligations of the Issuing Bank and any Bank in respect thereof shall terminate on the Expiration Date. 

        (b)  If
the Debt Service Reserve Amount shall reduce or increase in accordance with the Lease Indenture, the Outstanding Amount of the Debt Service Reserve Letter of Credit
shall be reduced or increased, as the case may be, by an amount equal to the amount of such reduction or increase in the Debt Service Reserve Amount; provided,
however, that in no event shall the Outstanding Amount exceed $10,605,180 at any time. Subject to Section 2.2(d) and  Article VI, the Outstanding Amount of the Debt Service Reserve Letter of Credit, as so reduced or increased, shall be reduced to the extent that
Drawings are made and shall be reinstated to the extent that DSR Loans are repaid, provided that any 

5

 

such reinstatement shall not cause the Outstanding Amount (when added to the balance in the Debt Service Reserve Account) to exceed the Debt Service Reserve Amount. 

        (c)  The
Borrower shall deliver, or cause to be delivered, (i) to each of the Agent and the Lease Indenture Trustee prompt notice of the occurrence of any event
resulting in an adjustment to the Debt Service Reserve Amount and (ii) to each of the Agent and the Lease Indenture Trustee the calculation of the Outstanding Amount resulting from the
adjustment referred to in clause (i), together with all information reasonably necessary to make such calculation. The Issuing Bank shall deliver to the Lease Indenture Trustee a notice in the
form of Annex 5 to the Debt Service Reserve Letter of Credit to effect a change in the Outstanding Amount of the Debt Service Reserve Letter of Credit. 

        (d)  The
Issuing Bank shall have the right, upon the occurrence and during the continuation of an Event of Default, to deliver a notice in the form of  Annex 2 to the Debt Service Reserve Letter of Credit (a
"Termination Notice"), whereupon the Expiration
Date shall occur on the date specified in such notice. The Outstanding Amount shall not be reinstated upon repayment of any DSR Loans after the delivery by the Issuing Bank of a Termination Notice. 

        (e)  The
Agent shall, solely for informational purposes, deliver to the Borrower a copy of any termination notice given to the beneficiary under the Debt Service Reserve
Letter of Credit, provided, however, that the Banks' ability to terminate the Debt Service Reserve Letter of Credit shall not be contingent upon the
Agent's delivery to the Borrower of such notice and that neither the Agent nor the Banks shall incur any liability whatsoever as a result of the Agent's failure to deliver such notice to the Borrower. 

        SECTION
2.3    Participations in Debt Service Reserve Letter of Credit.    Immediately upon the issuance of the Debt
Service Reserve Letter of Credit, the Issuing Bank shall be deemed to have sold and transferred to each Bank, and each Bank shall be deemed to have purchased and received from the Issuing Bank, in
each case irrevocably and without any further action by any party, an undivided interest and participation in the Debt Service Reserve Letter of Credit, each Drawing and the other Obligations in
respect thereof in an amount equal to the product of (a) a fraction the numerator of which is the amount of the Commitment of such Bank and the denominator of which is the aggregate amount of
all of the Commitments (the "Ratable Share") and (b) the maximum amount available to be drawn under the Debt Service Reserve Letter of Credit
plus the amount of all outstanding DSR Loans. The Agent shall promptly advise each Bank of any change in the Outstanding Amount or the Expiration Date in respect of the Debt Service Reserve Letter of
Credit, the cancellation or other termination of the Debt Service Reserve Letter of Credit and any Drawing, provided, however, that failure to provide
such notice shall not limit or impair the rights of the Agent hereunder or under the Financing Documents. 

        SECTION
2.4    Drawing and Reimbursement.    The payment by the Issuing Bank of a Drawing shall constitute the making
by the Issuing Bank of a loan in the amount of such payment. In the event that a Drawing is not repaid by the Borrower by 12:00 noon, New York City time, on the day of such Drawing, the Agent shall
promptly notify each other Bank. Each such Bank shall deliver to the Agent for the Issuing Bank's account, on the day of such notification and in immediately available funds, an amount equal to such
Bank's Ratable Share of the payment made by the Issuing Bank and not reimbursed or paid by the Borrower pursuant to this Section 2.4. In the
event that any Bank fails to make available to the Agent for the account of the Issuing Bank the amount of such loan, the Issuing Bank shall be entitled to recover such amount on demand from such Bank
together with interest thereon at (i) for the first three (3) days of nonpayment, the Federal Funds Rate and (ii) thereafter, the Federal Funds Rate plus 2.50%. Each payment by a
Bank pursuant to this Section 2.4 shall constitute a "DSR Loan" under this Agreement. 

6

 

        SECTION
2.5    Fees.    The Borrower shall pay the following fees to the Agent for the respective accounts of the
Persons specified below: 

        (a)  for
the account of the Agent, an administration fee of the Owner Lessor's percentage of $25,000, payable on the Closing Date; and 

        (b)  for
the account of the Issuing Bank, such additional administrative fees and charges (including cable charges) as are generally associated with letters of credit, in
accordance with the Issuing Bank's standard internal charge guidelines, payable on the next Monthly Transfer Date. 

        SECTION
2.6    Interest.    (a) The Borrower shall pay interest on the unpaid principal amount of each DSR Loan
resulting from a Drawing on each applicable Interest Payment Date, from the date of such DSR Loan until such principal amount has been repaid in full. Such interest shall be paid at a rate  per annum
equal to (i) so long as no Event of Default has occurred and is continuing, either (x) with respect to Adjusted Base Rate Loans,
the sum of the Adjusted Base Rate in effect from time to time plus 1.50% per annum or (y) with respect to LIBOR Rate Loans, the sum of the LIBOR
Rate in effect from time to time plus 2.50% per annum, and (ii) so long as an Event of Default has occurred and is continuing, the Adjusted Base
Rate plus 4.00% per annum.

        (b)  Each
Drawing and each DSR Loan made pursuant to Section 2.4 shall initially bear interest based on the Adjusted
Base Rate as in effect from time to time plus 1.50% per annum; provided, however, that prior to the making of any DSR Loan, the Borrower may give the
Agent written notice of the Borrower's election that such DSR Loan shall bear interest based on the LIBOR Rate. Such notice shall be irrevocable and shall be effective only if received by the Agent
not later than 12:00 noon, New York City time, three (3) Business Days prior to the occurrence of the Drawing giving rise to such DSR Loan. The Agent shall promptly notify the Banks of the
contents of each such notice. Subject to Sections 2.6(d), 2.19 and 2.23, such DSR Loan shall then bear
interest based on the LIBOR Rate from the date of such DSR Loan. 

        (c)  Subject
to Sections 2.6(d), 2.19 and  2.23, unless an Event of Default shall have occurred, the Borrower may at any
time, upon three Business Days' irrevocable written notice to the Agent,
(x) convert (i) any Adjusted Base Rate Loan to a LIBOR Rate Loan or (ii) any LIBOR Rate Loan to an Adjusted Base Rate Loan,  provided that a LIBOR Rate Loan may be converted only on the
last day of the applicable Interest Period or (y) continue any LIBOR Rate Loan as a
LIBOR Rate Loan with the same or a different Interest Period on the last day of the applicable Interest Period. The Agent shall promptly notify the Banks of the contents of each such notice. In the
event the Borrower fails to select the applicable interest rate, within the time period and otherwise as provided in this Section 2.6(c), such
DSR Loan (if outstanding as a LIBOR Rate Loan) will be automatically converted into an Adjusted Base Rate Loan on the last day of the then current Interest Period for such DSR Loan or (if outstanding
as an Adjusted Base Rate Loan) will remain as, or (if not then outstanding) will be made as, an Adjusted Base Rate Loan. 

        (d)  The
Borrower shall pay to the Agent for the account of each Bank, upon the request of such Bank through the Agent, such amount or amounts as shall be sufficient (in the
reasonable opinion of such Bank) to compensate it for any loss, cost or expense which such Bank determines is attributable to any failure for any reason (i) of any LIBOR Rate Loan, pursuant to
a notice given under Section 2.6(b), to occur or (ii) of the Borrower to convert an Adjusted Base Rate Loan from such Bank to a LIBOR Rate
Loan, or to continue a LIBOR Rate Loan, as and when specified in the relevant notice given pursuant to Section 2.6(b) or  2.6(c). 

        SECTION
2.7    Repayment.    (a) The Borrower shall repay the principal amount of the DSR Loans in full on the
Expiration Date. 

        (b)  Subject
to Section 2.7(c), the Issuing Bank shall reduce the Outstanding Amount by the outstanding principal
amount of each DSR Loan. 

7

 

        (c)  Subject
to Sections 2.2 and 6.1, the Issuing Bank shall, upon receipt of
written notice from the Borrower, reinstate the Outstanding Amount to the extent of any repayment or prepayment of the principal amount of any DSR Loan. 

        SECTION
2.8    Prepayments.    (a) The Borrower may, at any time and from time to time on any Business Day,
irrevocably notify the Agent in writing that the Borrower intends to prepay all or any portion (and so stating the aggregate principal amount to be prepaid) of the DSR Loans then outstanding on a day
which is at least three (3) Business Days after the date of such notice. If the Borrower delivers any such notice, the Borrower shall, not later than 12:00 noon, New York City time, on the
prepayment date set forth in such notice, prepay without premium or penalty the outstanding principal amount of the DSR Loans so indicated in such notice, together with accrued interest to the date of
such prepayment on the principal amount so prepaid. 

        (b)  The
Borrower agrees to indemnify each Bank and hold each Bank harmless from any direct loss (but excluding any indirect, consequential or incidental loss or damage),
cost or reasonable out-of-pocket expense which such Bank incurs as a result of a prepayment of any DSR Loan bearing interest at the LIBOR Rate on a date which is not the last
day of an Interest Period applicable thereto. 

        (c)  All
prepayments made hereunder shall be applied by the Agent and the Banks against the principal amount of outstanding DSR Loans (i) as long as no Event of
Default has occurred and is continuing, in the order as specified by Borrower or, in the absence of such specification, in the order such DSR Loans were made, and (ii) if an Event of Default
has occurred and is continuing, in the order as specified by the Agent or, in the absence of such specification, in the order such DSR Loans were made. 

        SECTION
2.9    Security.    The Obligations shall be secured by the Security Documents, the rights and remedies in
respect of which shall be exercised pursuant to the Lease Indenture. 

        SECTION
2.10    Payments.    (a) The Borrower shall make each payment hereunder and under the DSR Notes not
later than 12:00 noon, New York City time, on the day when due in United States dollars to the Agent at its address set forth in Section 9.2, in
immediately available funds. The Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal (including reimbursement of Drawings), interest or fees ratably
(other than amounts payable for the account of the Agent or the Issuing Bank pursuant to Section 2.5(a), (c) or  (d) or payable pursuant to
Section 9.4) to the Banks and like funds relating to the payment of
any other amount payable to any Bank to such Bank, in each case to be applied in accordance with the terms of this Agreement. 

        (b)  Unless
the Agent receives notice from the Borrower before the date on which any payment is due to the Banks hereunder that the Borrower will not make such payment in
full, the Agent may assume that the Borrower has made such payment in full to the Agent on such date, and the Agent may, in reliance upon such assumption, cause to be distributed to each Bank on such
due date an amount equal to the amount then due to such Bank. If and to the extent that the Borrower has not so made such payment in full to the Agent, each Bank shall repay to the Agent forthwith on
demand such amount distributed to such Bank together with interest thereon, for each day from the date such amount is distributed to such Bank until the date on which such Bank repays such amount to
the Agent (i) for the first three (3) days of non-repayment, at the Federal Funds Rate and (ii) thereafter, at the Federal Funds Rate plus 2.50%. 

        SECTION
2.11    Computation of Interest and Fees.    All computations of interest and fees hereunder shall be made on
the basis of a year of three hundred sixty (360) days for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or fees
are payable. Each calculation and each determination by the Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 

8

 

        SECTION
2.12    Payments on Non-Business Days.    Whenever any payment hereunder or under any DSR Note is
stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of
payment of interest or fees, as the case may be. If no due date is specified for the payment of any amount payable by the Borrower hereunder, such amount shall be due and payable not later than ten
(10) Business Days after receipt by the Borrower of written demand from the Agent for the payment thereof. In connection with a LIBOR Rate Loan, if an Interest Period would otherwise expire on
a day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided that, if any Interest Period would otherwise expire on a day that is not a Business
Day but is a day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the next preceding Business Day. 

        SECTION
2.13    Sharing of Payments, Etc.    If any Bank obtains any payment (whether voluntary, involuntary, through
the exercise of any right of setoff, or otherwise) on account of its Commitment or the DSR Loans made by it (other than pursuant to Section 9.4)
in excess of its ratable share of such payments obtained by all of the Banks, then such Bank shall be deemed to have received such payment as agent for and on behalf of all the Banks and shall
immediately advise the Agent of the receipt of such funds and promptly transmit the entire amount thereof to the Agent for prompt distribution among the Banks as provided for in this Agreement and
such funds transmitted to the Agent shall be credited as a payment by the Borrower under this Agreement; provided that such Bank so transmitting funds
to the Agent shall not be deemed to have received, and the Borrower shall be deemed not to have made to such Bank (to the extent funds are transmitted to the Agent) any payment transmitted to the
Agent by such Bank pursuant to this Section 2.13. 

        SECTION
2.14    Evidence of Debt.    (a) The indebtedness of the Borrower resulting from all DSR Loans made by
each Bank from time to time shall be evidenced by an appropriate notation on the schedule, or a continuation thereof, to the Debt Service Reserve Letter of Credit Promissory Note substantially in the
form of Exhibit B (each a "DSR Note"), delivered by the Borrower to such Bank. 

        (b)  The
books and accounts of the Agent shall be conclusive evidence, absent manifest error, of the amounts of all Drawings, DSR Loans, fees, interest and other amounts
advanced, due, outstanding, payable or paid pursuant to this Agreement or any DSR Note. 

        SECTION
2.15    Increased Debt Service Reserve Letter of Credit Costs.    If, after the date hereof, any introduction
of or change in any Applicable Law (including for purposes hereof, any directive, guideline or requirement of any Governmental Authority (whether or not having the force of law)) or in the
interpretation thereof by any Governmental Authority charged with the administration thereof either (a) imposes, modifies or makes applicable any reserve, special deposit or similar requirement
against letters of credit issued by, or assets held by, or deposits or other liabilities in or for the account of, the Agent or any Bank or (b) imposes on the Agent or any Bank any other
condition regarding this Agreement, the Agent, such Bank, the Debt Service Reserve Letter of Credit or the DSR Loans, and the result of any event referred to in the preceding clause (a) or
(b) is to increase the cost to the Agent or such Bank of issuing or maintaining the Debt Service Reserve Letter of Credit or the DSR Loans, reduce the amount of any payment receivable by the
Agent or such Bank hereunder or reduce the rate of return on any Bank's capital as a consequence of its obligations hereunder below that which such Bank would have achieved but for such circumstance,
then, in each such case, upon demand by the Agent or such Bank, the Borrower shall pay to the Agent or such Bank, from time to time as specified thereby on the Monthly Transfer Date, additional
amounts sufficient to compensate the Agent or such Bank for such increased costs, reduction in payments receivable or reduction in rate of return. A certificate as to any such additional amount or
amounts submitted by a Bank, through the Agent, to the Borrower and the other Banks shall certify that similar demands have been made to other customers of such Bank which are subject to similar
provisions and shall, in the absence of manifest error, be final and conclusive. In determining such amount, a Bank may use any reasonable averaging 

9

 

and attribution methods. Notwithstanding the foregoing, the Borrower shall only be obligated to compensate any Bank or Agent for any amount described in this  Section 2.15 arising or occurring
during
(i) any time period commencing not more than 90 days prior to the date on which such Bank notifies the Agent and the Borrower that such Bank or the Agent proposes to demand such
compensation and (ii) any time period during which, because of the unannounced retroactive application of such statute, regulation or other basis, such Bank could not have known that such
amount might arise or accrue. 

        SECTION
2.16    Capital Adequacy.    If the Agent or any Bank reasonably determines that compliance with any
Applicable Law (including for purposes hereof, any directive, guideline or requirement of any Governmental Authority (whether or not having the force of law)) affects or would affect the amount of
capital required or expected to be maintained by the Agent or such Bank or any Person controlling the Agent or such Bank and that the amount of such capital is increased by or based upon the existence
of such Bank's Commitment or the issuance of the Debt Service Reserve Letter of Credit or outstanding DSR Loans, then, upon demand by the Agent or such Bank, the Borrower shall pay to the Agent or
such Bank, from time to time as specified thereby, additional amounts sufficient to compensate the Agent or such Bank in light of such circumstances, to the extent that the Agent or such Bank
reasonably determines such increase in capital to be allocable to the existence of such Bank's Commitment or the issuance of the Debt Service Reserve Letter of Credit or such DSR Loans. A certificate
as to any such additional amount or amounts submitted by a Bank, through the Agent, to the Borrower and the other Banks shall certify that similar demands have been made to other customers of such
Bank which are subject to similar provisions and shall, in the absence of manifest error, be final and conclusive. In determining such amount, a Bank may use any reasonable averaging and attribution
methods. Notwithstanding the foregoing, the Borrower shall only be obligated to compensate any Bank or the Agent for any amount described in this  Section 2.16 arising or occurring during
(i) any time period commencing not more than 90 days prior to the date on which such Bank
notifies the Agent and the Borrower that such Bank or the Agent proposes to demand such compensation and (ii) any time period during which, because of the unannounced retroactive application of
such statute, regulation or other basis, such Bank could not have known that such amount might arise or accrue. 

        SECTION
2.17    Taxes.    (a) All payments, except as otherwise provided in  Section 2.17(c), by the Borrower of
principal of, and interest on, the DSR Notes and all other amounts payable hereunder shall be made free and
clear of and without deduction for any present or future income, excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or other charges of any nature whatsoever imposed by any
taxing authority, but excluding franchise taxes and taxes imposed on or measured by any Bank's net income, in each case, imposed as a result of a connection between the Bank and the jurisdiction
imposing the tax (other than a connection arising solely from the Bank having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement) (such
non-excluded items being called "Taxes"). In the event that any withholding or deduction from any payment to be made by the Borrower
hereunder is required in respect of any Taxes pursuant to any Applicable Law, then the Borrower will: 

          (i)  pay
directly to the relevant authority the full amount required to be so withheld or deducted; 

        (ii)  within
30 days after such payment forward to the Agent an official receipt or other documentation satisfactory to the Agent evidencing such payment to such
authority; and 

        (iii)  pay
to the Agent for the account of the Banks such additional amount or amounts as is necessary to ensure that the net amount actually received by each Bank will equal
the full amount such Bank would have received had no such withholding or deduction been required. 

10

 

Moreover,
if any Taxes are directly asserted against the Agent or any Bank with respect to any payment received by the Agent or such Bank hereunder, the Agent or such Bank may pay such Taxes and, upon
receipt of notice from such Bank within 30 days after such payment, the Borrower will promptly pay such additional amounts (including any penalties, interest or expenses) as is necessary in
order that the net amount received by such person after the payment of such Taxes (including any Taxes on such additional amount) shall equal the amount such person would have received had no such
Taxes been asserted. 

        (b)  If
the Borrower fails to pay any Taxes when due to the appropriate taxing authority or fails to remit to the Agent, for the account of the respective Banks, the required
receipts or other required documentary evidence, the Borrower shall indemnify the Banks for any incremental Taxes, interest or penalties that may become payable by any Bank as a result of any such
failure. 

        (c)  Each
Bank that is not a United States person as defined in Section 7701(a)(3) of the Code (a "Non-U.S.
Bank") shall deliver to the Borrower and the Agent two copies of either U.S. Internal Revenue Service Form W-8 BEN or Form W-8 ECI, or any
subsequent versions thereof or successors thereto properly completed and duly executed by such Non-U.S. Bank claiming complete exemption from, or a reduced rate of, U.S. federal
withholding tax on all payments by the Borrower under this Agreement and the DSR Notes. Such forms shall be delivered by each Non-U.S. Bank on or before the date it becomes a party to this
Agreement. In addition, each Non-U.S. Bank shall deliver such forms promptly upon the obsolescence or invalidity of any form previously delivered by such Non-U.S. Bank. Each
Non-U.S. Bank shall promptly notify the Borrower at any time it determines that it is no longer in a position to provide any previously delivered certificate to the Borrower (or any other
form of certification adopted by the U.S. taxing authorities for such purpose). The Borrower shall not be required to increase any such amounts payable to any Non-U.S. Bank with respect to
any Taxes (i) that are attributable to such Non-U.S. Bank's failure to comply with the requirements of this Section 2.17(c) or (ii) that are United States withholding
taxes imposed on amounts payable to such Bank at the time the Bank becomes a party to this Agreement, except to the extent that such Bank's assignor (if any) was entitled, at the time of assignment,
to receive additional amounts from the Borrower with respect to such Taxes pursuant to Section 2.17(a). Notwithstanding any other provision of this Section 2.17(c), a
Non-U.S. Bank shall not be required to deliver any form pursuant to this Section 2.17(c) that such Non-U.S. Bank is not legally able to deliver. 

        SECTION
2.18    Change of Law.    (a) Notwithstanding any other provision of this Agreement, if any Regulatory
Change, or compliance by any Bank with any Regulatory Change, makes it unlawful or impossible for any Bank to make, maintain or continue its proportionate interest in any Debt Service Reserve Letter
of Credit or DSR Loan (or commitments therefor), then such Bank shall promptly give
notice together with evidence thereof to the Borrower and the Agent, and the Borrower shall pay forthwith all amounts outstanding, accrued or payable under this Agreement to such Bank and cause such
Bank to be released from all obligations of such Bank under this Agreement. 

        (b)  A
Bank shall (consistent with legal and regulatory restrictions) designate a different lending office for the DSR Loans (or commitments therefor) or its participation in
the Debt Service Reserve Letter of Credit affected pursuant to this Section 2.18 before giving any notice to the Borrower and the Agent pursuant
to this Section 2.18 if such designation will avoid the need for giving such notice and will not, in the sole opinion of such Bank, be
disadvantageous to such Bank, except that such Bank shall have no obligation to designate a lending office located in the United States of America. If Borrower so requests within ten (10) days
of receipt of the notice referred to above (which notice is based on circumstances not generally applicable to United States or foreign lenders making loans of the types contemplated hereunder), such
Bank shall (consistent with legal and regulatory restrictions) comply with Section 2.20 hereof. 

11

 

        SECTION
2.19    Non-Availability.    (a) If at any time dollar deposits in the principal amount of
any Bank's proportionate interest in, or obligation under, any DSR Loan bearing interest at the LIBOR Rate are not available to such Bank in the London interbank market for the next Interest Period,
such Bank shall so notify the Agent, who shall so notify the Borrower, and the obligation of such affected Bank to make or continue or to convert DSR Loans into DSR Loans bearing interest based on the
LIBOR Rate shall be immediately suspended and during such suspension be converted into an obligation to do the same with respect to DSR Loans bearing interest at the Adjusted Base Rate;  provided, however, that outstanding DSR Loans bearing interest at the LIBOR Rate shall be converted into DSR Loans bearing interest at the Adjusted Base
Rate on the last day of the then current Interest Period applicable to such DSR Loans. 

        (b)  If
at any time the Interest Rate then in effect based on the LIBOR Rate does not adequately and fairly reflect, in the reasonable judgment of any Bank, the cost for such
Bank of advancing or maintaining its respective proportionate interest in any DSR Loan bearing interest at the LIBOR Rate during any Interest Period, then such Bank shall notify the Agent, who shall
so notify the Borrower, and interest on such Bank's proportionate share of the DSR Loans shall for any subsequent Interest Period accrue at the Adjusted Base Rate. 

        (c)  If
the Borrower so requests after the suspension of a Bank's obligation to make DSR Loans bearing interest at the LIBOR Rate under this  Section 2.19 for at least ten (10) consecutive Business
Days based on circumstances not generally applicable to United States or foreign
lenders making loans of the types contemplated hereunder, such Bank shall (consistent with legal and regulatory restrictions) comply with  Section 2.20 hereof. 

        SECTION
2.20    Assignments by Banks.    (a) If (i) a Bank is required to comply with this  Section 2.20
after a request from the Borrower pursuant to Section 2.17, 2.18 or  2.19 or (ii) the Borrower requests that the provisions of this Section 2.20 apply to a
Bank within ten (10) days after it receives a notice from the Agent that (A) such Bank has failed to make available to the Agent its portion of any DSR Loan on the date required to be
made available to the Agent pursuant to this Agreement after the Agent has made written demand upon such Bank for such payment or (B) such Bank has provided the Agent with notice that such Bank
shall not make available to the Agent such portion of any DSR Loan required to be made available to the Agent pursuant to this Agreement or (C) such Bank has failed to reimburse the Agent
pursuant to the terms of this Agreement, such Bank shall assign all or a part of its proportionate share of the DSR Loans and its commitment to make DSR Loans to a replacement Bank (which may be, but
is not required to be, one of the other Banks) designated by the Borrower; provided that any assignment or transfer made by a Bank to a replacement Bank
shall satisfy the following conditions: (i) the Borrower shall promptly pay when due all reasonable fees and expenses which such Bank incurs in connection with such transfer or assignment and
(ii) any assignment of all or part of the DSR Loans or obligations shall be made without recourse, representation or warranty, and the Borrower shall cause the replacement Bank to pay to the
Agent for the account of the assigning Bank in immediately available funds all amounts outstanding or payable under this Agreement to each Bank assigning its interest in the DSR Loans. 

        (b)  Each
Bank agrees that as promptly as practicable after it has made a determination to make a claim for amounts under Section 2.8(b), 2.15,
2.16 or 2.17 with respect to events or conditions arising after the date hereof, it shall notify the Borrower of the same and
use commercially reasonable efforts (consistent with legal and regulatory restrictions and such Bank's internal policies) to mitigate the effect of such provisions on the Borrower, including
(i) in the case of Section 2.15, 2.16 or 2.17, efforts to make, fund, issue or maintain
its DSR Loans or the Debt Service Reserve Letter of Credit, as relevant, through another office of such Bank and (ii) in the case of  Section 2.8(b), efforts to reemploy amounts held by such
Bank, (x) if as a result thereof the additional moneys which would otherwise be
required to be paid to such Bank pursuant to any of such provisions of this Agreement would be reduced, or the illegality or other adverse circumstances which would otherwise require a prepayment of
such DSR 

12

 

Loans or the suspension of the issuance of, or of drawings under, the Debt Service Reserve Letter of Credit pursuant to any of such provisions would cease to exist, and (y) if, as determined
by such Bank in good faith, the making, funding, issuing or maintaining of such DSR Loan or the Debt Service Reserve Letter of Credit, or the making of drawings under the Debt Service Reserve Letter
of Credit through such other office would not otherwise adversely affect such Bank. 

        SECTION
2.21    Reduction in Commitments/DSR Loans.    The Borrower shall have the right to refinance all Commitments
and all of the outstanding DSR Loans, if any, in whole but not in part, without premium or penalty upon at least ten (10) days' prior written notice to the Agent;  provided, however,that the
Borrower agrees to indemnify each Bank and hold each Bank harmless from any direct loss (but excluding any indirect,
consequential or incidental loss or damage), cost or reasonable out-of-pocket expense which such Bank incurs as a result of a refinancing pursuant to this  Section 2.21 of any DSR Loan bearing
interest at the LIBOR Rate on a date which is not the last day of an Interest Period applicable thereto. In
any refinancing of such Commitments, the Borrower shall cause the Debt Service Reserve Letter of Credit to be released and returned to the Issuing Bank. 

        SECTION
2.22    Right of Set-off.    The Borrower hereby authorizes each Bank, upon the occurrence and
during the continuance of any Event of Default, at any time and from time to time, without notice to the Borrower or any Person other than the Lease Indenture Trustee (any such notice being hereby
expressly waived by the Borrower to the extent it may legally do so) to set off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final) at any time
held, and other indebtedness at any time owing, by such Bank in any of its offices, wherever located (whether such deposits or indebtedness be in dollars or in any other currency), to or for the
credit or the account of the Borrower against any and all of the Obligations and liabilities of the Borrower now or hereafter existing under this Agreement, irrespective of whether or not the Agent
shall have made any demand hereunder or thereunder and although such Obligations may be contingent or unmatured. The Banks agree to promptly notify the Borrower of such set-off and
application. 

        SECTION
2.23    Minimum Amounts.    (a) Anything in this Agreement to the contrary notwithstanding, the
aggregate principal amount of DSR Loans bearing interest based on the LIBOR Rate shall be in an amount at least equal to $1,000,000 or in multiples of $1,000,000 in excess thereof and, if any DSR
Loans bearing interest based on the LIBOR Rate would otherwise be in a lesser principal amount for any period, such DSR Loans shall bear interest based on the Adjusted Base Rate during such period. 

        (b)  Not
more than six (6) DSR Loans bearing interest at the LIBOR Rate may be outstanding at one time. 

ARTICLE III  

 CONDITIONS PRECEDENT  

        SECTION
3.1    Conditions Precedent to Issuance of Debt Service Reserve Letter of Credit.    The obligation of the
Issuing Bank to issue the Debt Service Reserve Letter of Credit is subject to the follow conditions precedent: 

        (a)  the
Agent shall have received the following, each dated on or before the Closing Date unless otherwise specified below, in form and substance satisfactory to the Agent
and in the number of originals or photostatic copies reasonably required by the Agent: 

          (i)  this
Agreement and the DSR Notes duly executed by the Borrower; and 

        (ii)  a
certificate of the Lease Indenture Trustee as to the incumbency and specimen signatures of the officers of the Lease Indenture Trustee authorized to make drawings, to 

13

 

execute and present certificates under the Debt Service Reserve Letter of Credit, and otherwise to communicate with the Agent with respect thereto; 

        (b)  concurrently
with the issuance of the Debt Service Reserve Letter of Credit, the Lease Indenture and the Security Documents shall be in full force and effect; 

        (c)  the
Borrower shall have paid all accrued fees and expenses (as provided in Sections 2.5 and  9.4) of the Agent and the Banks (including the reasonable accrued
fees and disbursements of counsel to the Agent and the Banks), to the extent that one
or more statements for such fees and expenses have been presented for payment; 

14

  

        (d)  the
Agent shall have received such other approvals, opinions, evidence and documents (including financial statements of the Borrower) as it may reasonably request and
which are customary for transactions of the type contemplated by this Agreement. 

ARTICLE IV  

 REPRESENTATIONS AND WARRANTIES  

        (a)  The
Borrower hereby makes for the benefit of the Agent and the Banks all of the representations and warranties of the Borrower made in Section 3.2 of the
Participation Agreement (unless stated to be given as of an earlier date, in which case such representation and warranty shall be true and correct only as of such earlier date), in the form of such
representations and warranties as they exist on the date of this Agreement and as they may hereafter be amended from time to time, but only to the extent that the incorporation of any such amendments
into this Agreement has been consented to in accordance with Section 9.1. Such representations and warranties are incorporated herein by
reference as if set forth at length in this Agreement; provided that each reference to the term "Agreement" therein shall be deemed to be a reference to
this Agreement; and with any other appropriate substitutions designed to bestow upon the Agent and the Banks the benefit of such representations and warranties in the same manner and to the same
extent bestowed upon the other parties under the Credit Agreement. 

        (b)  Financial Information.

          (i)  The
balance sheet of the Borrower as at Closing Date, and the related statements of income and cash flows of the Borrower, copies of which have been furnished to the
Agent and the Banks, present fairly the consolidated financial condition of the Borrower as at the dates thereof and the results of their operations for the periods then ended. 

        (c)  Regulations T, U and X. No Borrower is engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock, and no proceeds of any Debt Service Reserve Letter of Credit will be used for a purpose which violates, or would be inconsistent with, F.R.S. Board Regulation T, U or X.
Terms for which meanings are provided in F.R.S. Board Regulation T, U or X or any regulations substituted therefor, as from time to time in effect, are used in this Section with such meanings. 

        (d)  Investment Company Act. The Borrower is not subject to any regulation as an "investment company" subject to the
Investment Company Act of 1940, as amended. 

        (d)  The Obligations. The Obligations are senior secured Indebtedness of the Borrower ranking at least  pari passu with all other secured Indebtedness of the Borrower.

        (e)  Pension and Welfare Plans. The Borrower has no Pension Plans. 

        (f)    Subsidiaries. The Borrower has no Subsidiaries or investments in other Persons (other than the Lessor Estate). 

ARTICLE V  

 COVENANTS  

        So long as any Commitment is in effect, the Debt Service Reserve Letter of Credit is outstanding or the Obligations remain unpaid, unless compliance has been
waived in accordance with Section 9.1: 

        (a)  all
of the covenants of the Borrower contained in Article VII of the Participation Agreement and  Article V and Article VI of the Lease Indenture, in the form of such covenants as they
exist as of the date of this Agreement and as they may hereafter be amended from time to time, but only to the extent that the incorporation of any such amendments into this Agreement 

15

 

has been consented to in accordance with Section 9.1, are hereby incorporated and made applicable by reference as if set forth at length in this
Agreement; provided that each reference to the term "Participation Agreement" or "Lease Indenture" therein shall be deemed to be a reference to this
Agreement; each reference to the Lease Indenture Trustee or Security Agent therein shall be deemed to be a reference to the Agent and the Banks; and with any other appropriate substitutions designed
to bestow upon the Agent and the Banks the benefit of such covenants in the same manner and to the
same extent as in the Participation Agreement and the Lease Indenture, and the Borrower shall observe and perform all of such incorporated covenants; and 

        (b)  the
Borrower will not, without the prior written approval of the Required Banks, terminate, amend or otherwise modify any provision of any Operative Document if such
termination, amendment or other modification would affect the priority of payments from the Revenue Account under the Amended and Restated Security Deposit Agreement in a manner adverse to the Agent
or any Bank, amend the Rent Payment Dates in a manner adverse to the Agent or any Bank, or change the voting requirements under the Lease Indenture in a manner adverse to the Agent or any Bank. 

ARTICLE VI  

 DEFAULTS AND REMEDIES  

        SECTION
6.1    Events of Default.    Each of the following shall constitute an "Event of Default" hereunder: 

        (a)  any
amount in respect of costs and expenses due by the Borrower under this Agreement shall not be paid in full within thirty (30) Business Days following delivery
of notice thereof to the Borrower 

        (b)  any
amount in respect of fees due by the Borrower under this Agreement shall not be paid in full within five (5) Business Days following delivery of notice
thereof to the Borrower; or 

        (c)  any
amount due by the Borrower in respect of interest on any DSR Loan shall not be paid in full within five (5) Business Days after its due date; or 

        (d)  any
amount due by the Borrower in respect of principal of any DSR Loan shall not be paid to the Agent in full within five (5) Business Days after its due date; or 

        (e)  any
representation or warranty made by or on behalf of the Borrower in this Agreement (including by incorporation by reference) or in any certificate furnished to the
Agent or the Banks shall prove to have been false or misleading in any respect as of the time made, confirmed or furnished and the inaccuracy has had or is reasonably expected to have a Material
Adverse Effect and such
misrepresentation shall continue uncured for thirty (30) or more days from the date an Authorized Officer of the Borrower obtains actual knowledge thereof; 

        (f)    the
Borrower shall fail to perform or observe any covenant or agreement contained in (i) Section 7.2, 7.4,
7.6 or 7.11 of the Participation Agreement and Section 6.1 of the Lease Indenture (as incorporated into
paragraph (a) of Article V of this Agreement) or (ii) paragraph (b) of  Article V of this Agreement, and such failure shall
continue uncured for thirty (30) or more days after an Authorized Officer of the
Borrower has actual knowledge of such failure; or 

        (g)  the
Borrower shall fail to perform or observe any of its covenants contained (including by incorporation by reference) in any other provision of this Agreement (other
than those referred to in paragraphs (a), (b), (c) and (e), above) and such failure shall continue uncured for sixty (60) or more days after an Authorized Officer of the Borrower has
actual knowledge of such failure; 

16

 

 provided that if the Borrower commences and diligently pursues efforts to cure such default within such sixty (60) day period, the Borrower may continue to effect such
cure of the default (and such default shall not be deemed as "Event of Default" hereunder) for an additional thirty (30) days so long as the Borrower is diligently pursuing such cure; or 

        (h)  an
"Event of Default" under any of paragraphs (a), (b), (c), (d) or (g) of Section 7.1 of the Lease
Indenture shall occur and be continuing; or 

        (i)    an
"Event of Default" under any of paragraphs (e) or (f) of Section 7.1 of the Lease Indenture shall
occur and be continuing. 

        SECTION
6.2    Remedies.    If any Event of Default (other than an Event of Default specified in  Section 6.1(h))
hereof shall have occurred and be continuing, then the Agent shall at the request of the Required Banks take one or more of the
following actions: (i) by notice to the Borrower and the Lease Indenture Trustee, declare the Commitments to be terminated, whereupon the same shall forthwith terminate, and, after giving
thirty (30) days' written notice to the beneficiary of the outstanding Debt Service Reserve Letter of Credit, terminate the Debt Service Reserve Letter of Credit; or (ii) declare the
Obligations and all other amounts payable under this Agreement and the DSR Notes to be immediately due and payable, whereupon the Obligations, all such interest and all such amounts shall become and
be immediately due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; or (iii) terminate the ability of
the Borrower to cause reinstatement of the Outstanding Amount through the reimbursement of Drawings, as contemplated by the terms hereof. If any Event of Default specified in  Section 6.1(h) hereof
shall have occurred and be continuing, the Commitments shall terminate automatically, the full unpaid amount of any
outstanding Obligations and any other amounts payable under this Agreement and the DSR Notes shall be immediately due and payable, and the ability of the Borrower to cause reinstatement of the
Outstanding Amount through reimbursement of Drawings shall terminate automatically, in each case without any further action, notice, demand or presentment. 

ARTICLE VII  

 CHARACTER OF OBLIGATIONS  

        SECTION
7.1    Obligations Absolute.    The Obligations shall be absolute, unconditional and irrevocable and shall not
be affected or impaired under any circumstances whatsoever, including the following circumstances: 

        (a)  any
lack of validity or enforceability of any provision of any Operative Document; 

        (b)  any
amendment or waiver of, or any consent to departure from, any provision of any Operative Document; 

        (c)  the
existence of any claim, setoff, defense or other right that the Borrower may have at any time against the Lease Indenture Trustee, any other beneficiary of the Debt
Service Reserve Letter of Credit (or any Person for whom the Lease Indenture Trustee or any such beneficiary may be acting), any Bank, the Agent or any other Person, whether in connection with any
Financing Document, the transactions contemplated thereby or any unrelated transaction; 

        (d)  any
statement or signature in any certificate or other document presented under the Debt Service Reserve Letter of Credit proving to be forged, fraudulent, invalid or
insufficient in any respect, or any such statement being untrue or inaccurate in any respect whatsoever; 

        (e)  any
exchange, release or nonperfection of any Collateral or other collateral, or any release, amendment or waiver of or consent to departure from any Financing Document
or any guaranty for any of the Obligations; 

17

 

        (f)    payment
by a Bank under the Debt Service Reserve Letter of Credit against presentation of a draft or certificate that does not comply with the terms of the Debt Service
Reserve Letter of Credit; 

        (g)  any
issuance of additional Permitted Indebtedness; and 

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

        SECTION
7.2    No Personal Liability; Termination.    Except as may otherwise specifically be provided in the Lease
Indenture or in the Participation Agreement, all payments to be made in respect of the Debt Service Reserve Letter of Credit, the DSR Notes or under this Agreement shall be made only from the
Indenture Estate, and the Owner Lessor shall have no obligation for the payment thereof except to the extent that there shall be sufficient income or proceeds from the Indenture Estate to make such
payments in accordance with the terms of Section 3 of the Lease Indenture, and the Owner Participant shall not have any obligation for payments in respect of the Debt Service Letter of Credit,
the DSR Notes or under this Agreement. The Issuing Bank, the Agent, and each Bank hereby each agree that it will look solely to the income and proceeds from the Indenture Estate to the extent
available for distribution to the Issuing Bank, the Agent or such Bank, as the case may be, as herein provided and that, except as expressly provided in the Lease Indenture or the Participation
Agreement, (x) none of the Owner Participant, the Trust Company, the Security Agent, or the Lease Indenture Trustee, or any Affiliate of any thereof, shall be personally liable to the Issuing
Bank, the Agent or such Bank for any amounts payable hereunder, under such DSR Note or for any performance to be rendered under this Agreement, any DSR Note or any Indenture Estate Document or for any
liability under this Agreement, any DSR Note or any Indenture Estate Document, and (y) such amounts shall be non-recourse to the assets of each of the Owner Participant, the
Security Agent, the Trust Company or the Lease Indenture Trustee, or any Affiliate of any thereof. Nothing contained in this Section 7.2 limiting
the liability of the Owner Lessor shall derogate from the right of the Issuing Bank, the Agent or the Banks to proceed against the Indenture Estate in accordance with the Lease Indenture to secure and
enforce all payments and obligations due hereunder and under DSR Notes. 

        In
furtherance of the foregoing, to the fullest extent permitted by law, the Issuing Bank, the Agent and each Bank (and each assignee of such Person), by their acceptance thereof agrees,
as a condition to its being secured under the Lease Indenture, that neither they nor the Lease Indenture Trustee will exercise any statutory right to negate the agreements set forth in this  Section 7.2. 

        Nothing
herein contained shall be interpreted as affecting the representations, warranties or agreements of the Owner Lessor expressly made set forth in the Participation Agreement or
the Lessor LLC Agreement. 

        The
Issuing Bank, the Agent and each Bank acknowledge and agree that this Agreement (and the DSR Notes) shall terminate and shall be of no further force or effect upon the termination of
the Lease Indenture in accordance with the proviso to Section 12.1 thereof (including, without limitation, upon any sale or other final disposition by the Security Agent of all property
constituting part of the Indenture
Estate and the final distribution by the Security Agent of all moneys or other property or proceeds constituting part of the Indenture Estate in accordance with the terms thereof). 

        SECTION
7.3    Limited Liability of Agent and Banks.    As among the Borrower, the Agent and the Banks, the Borrower
assumes all risks of the acts or omissions of the beneficiaries of the Debt Service Reserve Letter of Credit with respect to the use of the Debt Service Reserve Letter of Credit. Neither the Agent nor
any Bank nor any of their respective officers, directors, employees or agents shall be liable or responsible for: (a) the use that may be made of the Debt Service Reserve Letter of Credit or
any acts or omissions of any beneficiaries of the Debt Service Reserve Letter of Credit in connection with the Debt Service Reserve Letter of Credit; (b) the form, validity, sufficiency,
accuracy, genuineness 

18

 

or legal effect of any document submitted in connection with the Debt Service Reserve Letter of Credit or of any endorsement thereon, even if such document or endorsement should prove to be in any or
all respects invalid, insufficient, inaccurate, fraudulent or forged; (c) payment by the Issuing Bank against presentation of any document that does not comply with the terms of the Debt
Service Reserve Letter of Credit, including failure of any document to bear any reference or adequate reference to the Debt Service Reserve Letter of Credit; or (d) any other circumstance
whatsoever in making, delaying to make or failing to make payment under the Debt Service Reserve Letter of Credit; provided, however, that the Borrower
shall have a claim against the Issuing Bank, and the Issuing Bank shall be liable to the Borrower, to the extent of any direct, as opposed to consequential, damages suffered by the Borrower that the
Borrower proves were the result of the Issuing Bank's willful misconduct or gross negligence in paying under the Debt Service Reserve Letter of Credit or the Issuing Bank's willful or grossly
negligent failure to pay under the Debt Service Reserve Letter of Credit after the presentation to it by the beneficiary of a draft and certificate strictly complying with the terms and conditions of
the Debt Service Reserve Letter of Credit (unless the Issuing Bank in good faith believed itself (based upon an opinion of counsel) to be prohibited by law or legal authority from making such
payment). In furtherance and not in limitation of the foregoing, the Issuing Bank may accept any document that appears on its face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary. 

ARTICLE VIII  

 THE AGENT  

        SECTION
8.1    Authorization and Action.    Each Bank hereby appoints and authorizes the Agent to take such action as
agent on its behalf and to exercise such powers under this Agreement as are delegated to the Agent by the terms hereof, together with such powers as are reasonably incidental thereto. As to any
matters not expressly provided for by the Letter of Credit Documents (including enforcement of and collection under any Letter of Credit Document), the Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Banks,
and such
instructions shall be binding upon all Banks and all holders of DSR Notes; provided, however, that the Agent shall not be required to take any action
that exposes the Agent to personal liability or that is contrary to any Letter of Credit Document or Applicable Law. In performing its function and duties hereunder, Agent shall act solely as the
agent of the Banks and does not assume and shall not be deemed to have assumed any obligation towards or relationship of agency or trust with or for the Borrower or any other party to any Financing
Document. 

        SECTION
8.2    Agent's Reliance, Etc.    Neither the Agent nor any of its directors, officers, agents or employees
shall be liable for any action taken or omitted to be taken by it or them under or in connection with any Letter of Credit Document, except for its or their own gross negligence or willful misconduct.
Without limitation of the generality of the foregoing, the Agent (a) may treat any Bank that has signed a Commitment Transfer Supplement as the holder of the applicable portion of the
Obligations; (b) may consult with legal counsel (including counsel for the Borrower or any Affiliate thereof), independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any Bank
and shall not be responsible to any Bank for any statements, warranties or representations made in or in connection with any Financing Document; (d) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or conditions of any Financing Document on the part of the Borrower or any Affiliate or to inspect the property (including
the books and records) of the Borrower or any Affiliate thereof; (e) shall not be responsible to any Bank for the due execution, legality, validity, enforceability, genuineness, sufficiency or
value of any Financing Document 

19

 

or any other instrument or document furnished pursuant hereto or thereto; and (f) shall incur no liability under or in respect of any Financing Document by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopier or otherwise) believed by it to be genuine and signed or sent by the proper party or parties. 

        SECTION
8.3    Issuing Bank and Affiliates.    With respect to its Commitment and participation in the Debt Service
Reserve Letter of Credit, the Issuing Bank shall have the same rights and powers under this Agreement as any other Bank and may exercise the same as though it were not the Issuing Bank or the Agent;
and the term "Bank" or "Banks" shall, unless otherwise expressly indicated, include the Issuing Bank in its individual capacity. The Issuing Bank and the Agent and their Affiliates may accept deposits
from, lend money to, act as trustee under indentures of, and generally engage in any kind of business with, the Borrower, any Affiliate thereof and any Person that may do business with or own
securities of the Borrower or any Affiliate thereof, all as if the Issuing Bank and the Agent were not the Issuing Bank and the Agent and without any duty to account therefor to the Banks. 

        SECTION
8.4    Bank Credit Decision.    Each Bank acknowledges that it has, independently and without reliance on the
Agent or any other Bank or the Issuing Bank 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 Bank
also acknowledges that it will, independently and without reliance on the Agent or any other Bank or the Issuing Bank and based on such documents and information as it deems appropriate at the time,
continue to make its own credit decisions in taking or not taking action under this Agreement. 

        SECTION
8.5    Indemnification.    The Banks agree to indemnify the Agent (to the extent not promptly reimbursed by
the Borrower and without limiting the obligation of the Borrower to do so), ratably according to the respective principal amounts of the Obligations then held by each of them and/or the respective
amounts of their Commitments, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or nature
whatsoever that may at any time (including without limitation at any time following the payment of any Obligations or termination of this Agreement) be imposed on, incurred by or asserted against the
Agent in any way relating to or arising out of any Financing Document or any action taken or omitted by the Agent under any Financing Document; provided,
however, that no Bank shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting solely from the Agent's gross negligence or willful misconduct. Without limitation of the foregoing, each Bank agrees to reimburse the Agent promptly upon demand for its ratable share of any
costs and expenses payable by the Borrower under Section 9.4, to the extent that the Agent is not reimbursed for such costs and expenses by the
Borrower. 

        SECTION
8.6    Successor Agent.    The Agent may resign at any time by giving written notice thereof to the Banks and
the Borrower and may be removed at any time with or without cause with the written approval of the Required Banks. Upon any such resignation or removal, the Required Banks shall have the right to
appoint a successor Agent with the consent of the Borrower, which shall not be unreasonably withheld. If no successor Agent has been so appointed by the Required Banks, and has accepted such
appointment, within thirty (30) days after the retiring Agent's giving of notice of resignation or the Required Banks' removal of the retiring Agent, then the retiring Agent may, on behalf of
the Banks, appoint a successor Agent with the consent of the Borrower (which shall not be unreasonably withheld), which successor Agent shall be a commercial bank organized under the laws of the
United States of America or of any state thereof and having a combined capital and surplus of at least five hundred million dollars ($500,000,000). Upon the acceptance of any appointment as Agent
hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent
shall be discharged from its duties and obligations under the Financing Documents. After any retiring Agent's 

20

 

resignation or removal hereunder as Agent, the provisions of this Article VIII shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Agent under this Agreement. 

        SECTION
8.7    Collateral.    (a) Except as expressly provided herein, the Agent shall have no duty to take any
affirmative steps with respect to the collection of amounts payable in respect of the Collateral. The Agent shall incur no liability as a result of any private sale of the Collateral. 

        (b)  The
Banks hereby consent, and agree upon written request by the Agent to execute and deliver such instruments and other documents as the Agent may deem desirable to
confirm such consent, to the release of the Lien of the Lease Indenture, including any release in connection with any sale, transfer or other disposition of the Collateral or any part thereof, in
accordance with the Financing Documents. 

ARTICLE IX  

 MISCELLANEOUS  

        SECTION
9.1    Amendments, Etc.    No amendment or waiver of any provision of this Agreement or any DSR Note, or
consent to any departure by the Borrower therefrom, shall be effective unless in writing and signed or consented to (in writing) by the Required Banks (and, in the case of amendments, the Borrower),
and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that
no amendment, waiver or consent shall, unless in writing and signed or consented to (in writing) by all of the Banks, do any of the following: (a) waive any of the conditions specified in  Article III; (b) increase the Commitments of the Banks or subject the Banks to any additional obligations; (c) reduce the principal
of, or interest on, the DSR Loans or any fees or other amounts payable hereunder; (d) postpone any date fixed for (i) payment of principal of, or interest on, the DSR Loans,
(ii) reimbursement of Drawings under the Debt Service Reserve Letter of Credit or (iii) payment of fees or other amounts payable hereunder; (e) change the percentage of the
Commitments or of the DSR Loans outstanding, or the number of Banks, required for the Banks or any of them to take any action hereunder or (f) amend this  Section 9.1; and provided further, however, that no amendment, waiver or consent shall, unless in
writing and signed by the Agent in addition to the Persons required above to take such action, affect the rights or duties of the Agent under this Agreement or any other Letter of Credit Document. 

        SECTION
9.2    Notices, Etc.    All notices and other communications provided for hereunder shall be in writing
(including by telecopier) and shall be mailed, telecopied or delivered, if to the Borrower, to it c/o Wells Fargo Bank Northwest, National Association, 213 Court Street, Middletown, CT 06457,
Attention: Corporate Trust Services, telephone (860) 704-6216, telecopy (860) 704-6219 with a copy to: 79 South Main Street, Third Floor, Salt Lake City, UT
84111, Attention: Corporate Trust Services, telephone (801) 246-5630, telecopy (801) 246-5053; if to Westdeutsche Landesbank Girozentrale, New York Branch, in its
capacity as the Agent, the Issuing Bank or a Bank, to it at 1211 Avenue of the Americas, New York, New York 10036, telephone (212) 852-6331, telecopy
(212) 597-8388, Attention: Structural Finance/Energy; if to Credit Suisse First Boston, New York Branch, in its capacity as a Bank, to it at Eleven Madison Avenue, New York, New
York 10010, telephone (212) 325-9126, telecopy (212) 325-8321, Attention: Peter Ryan; if to any other Bank, to it at the address or telecopy number set forth
below its name in the Commitment Transfer Supplement by which it became a party hereto; or, as to each party, to it at such other address or telecopy number as designated by such party in a written
notice to the other parties. All such notices and communications shall be deemed received, (a) if personally delivered, upon delivery, (b) if sent by first-class mail, on the third
Business Day following deposit into the mails and (c) if sent by telecopier, upon acknowledgment of receipt thereof by the recipient, except that notices and communications to the Agent
pursuant to Article II or VIII shall not be effective until received by the Agent. 

        SECTION
9.3    No Waiver; Remedies.    No failure on the part of any Bank or the Agent to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof, and no 

21

 

single or partial exercise of any such right shall preclude any other or further exercise thereof or the exercise of any other right. The remedies provided herein are cumulative and not exclusive of
any remedies provided by law. 

        SECTION
9.4    Costs and Expenses.    The Borrower agrees to pay on demand on the Monthly Transfer Date immediately
following such demand (provided such demand is made at least five (5) Business Days thereto, if not, on the next Monthly Transfer Date) (a) all reasonable costs and expenses of the Agent
and the Banks in connection with the preparation, execution, delivery, syndication, administration, modification and amendment of this Agreement, the DSR Notes and the other documents to be delivered
hereunder, including (i) the reasonable fees and out-of-pocket expenses of one counsel for the Banks with respect thereto and with respect to advising the Agent and the
Banks as to their rights and responsibilities, or the perfection, protection or reservation of rights or interests, under this Agreement, the other Financing Documents and the other documents to be
delivered hereunder and (ii) the reasonable fees and expenses of any consultants, auditors or accountants engaged by the Agent with the written consent (which shall not be unreasonably
withheld) of the Borrower pursuant hereto and (b) all reasonable costs and expenses of the Agent and the Banks (including reasonable counsel fees and expenses of the Agent and the Banks) in
connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement, the other Financing Documents and the other documents to be delivered hereunder,
whether in any action, suit or litigation, any bankruptcy, insolvency or similar proceeding or otherwise. In addition, the Borrower shall pay any and all stamp and other taxes and fees payable or
determined to be payable in connection with the execution, delivery, filing and recording of the aforementioned documents, and the Borrower agrees to indemnify and hold the Agent and the Banks
harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay any of the foregoing to the extent the Borrower had notice thereof. 

        SECTION
9.5    Application of Moneys.    If any sum paid or recovered in respect of the Obligations is less than the
amount then due, the Agent may apply that sum to principal, interest, fees or any other amount due under this Agreement in such proportions and order and generally in such manner as the Agent shall
reasonably determine. 

        SECTION
9.6    Severability.    Any provision of this Agreement that is prohibited, unenforceable or not authorized in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability or nonauthorization without invalidating the remaining provisions of this Agreement
or affecting the validity, enforceability or authorization of such provision in any other jurisdiction. 

        SECTION
9.7    Limitation of Liability.    (a) Notwithstanding anything to the contrary contained in this
Agreement and the Financing Documents, the liability and obligation of the Borrower to perform and observe and make good the obligations contained in this Agreement and the Security Documents shall
not be enforced by any action or proceeding wherein damages or any money judgment or any deficiency judgment or any judgment establishing any personal obligation or liability shall be so sought,
collected or otherwise obtained, in each such case, against any officer, director, member, or shareholder or related Person of the Borrower or any Secured Party, and the Agent, for itself and its
successors and
assigns, and on behalf of the Banks, irrevocably waives any and all right to sue for, seek or demand any such damages, money judgment, deficiency judgment or personal judgment against any officer,
director, member, or shareholder or related Person of the Borrower under or by reason of or in connection with this Agreement and agrees to look solely to the Indenture Estate (as provided in  Section 7.2) for the enforcement of such liability and obligation of the Borrower. 

        (b)  Further,
no director, officer, employee, incorporator, member, shareholder or Affiliate of the Owner Lessor, as such, shall have any liability for any obligations of the
Owner Lessor under the Debt Service Letter of Credit, the DSR Notes, this Agreement or for any claim based on, in respect of, or by reason of, such obligations or their creation. The Issuing Bank, the
Agent and each Bank hereby waives 

22

 

and releases all such liability. The waiver and release are part of the consideration for the Owner Lessor entering into this Agreement. Such waiver may not be effective to waive liabilities under
the federal securities laws and it is the view of the Commission that such a waiver is against public policy. 

        (c)  The
Owner Manager is executing this Agreement and each DSR Note on behalf of the Owner Lessor solely in its capacity as Owner Manager under the Lessor LLC Agreement and
not in its individual capacity and in no case shall the Trust Company (or any successor entity acting as Owner Manager under the Lessor LLC Agreement) be personally liable for or on account of any of
the statements, representations, warranties, covenants or obligations stated to be those of the Owner Lessor or the Owner Manager hereunder, all such liability, if any, being expressly waived by the
parties hereto and any Person claiming by, through, or under such party; provided, however, that the Trust Company (or any such successor Owner Manager)
shall be personally liable hereunder for its own gross negligence or willful misconduct or for its breach of its covenants, representations and warranties contained herein, to the extent covenanted or
made in its individual capacity. 

        SECTION
9.8    Binding Effect.    This Agreement shall be binding upon and inure to the benefit of the Borrower, the
Agent and the Banks and their respective successors and assigns, except that the Borrower shall not have the right to assign any of its rights and obligations hereunder without the prior written
consent of the Required Banks, and, except as provided in Section 9.9, no Bank other than the Issuing Bank shall have the right to assign any of
its rights and obligations hereunder. 

        SECTION
9.9    Assignments and Participations.    (a) Any Bank may at any time (with the consent of the Agent,
such consent not to be unreasonably withheld or delayed, and the consent of the Issuing Bank, such consent not to be unreasonably withheld or delayed) sell to one or more banks or other entities (a
"Purchasing Bank") all or any part of its rights and obligations under this Agreement and the DSR Notes (which, except in the case of an assignment to a
Person that, immediately before such assignment, was a Bank, shall be equal to at least $1,000,000) pursuant to a Commitment Transfer Supplement executed by such Purchasing Bank, such transferor Bank,
the Agent and the Issuing Bank. Upon (x) such execution of such Commitment Transfer Supplement, and (y) delivery of a copy thereof to the Borrower and payment of the amount of its
participation to the Agent or such transferor Bank, such Purchasing Bank shall for all purposes be a Bank party to this Agreement and shall have all the rights and obligations of a Bank under this
Agreement, to the same extent as if it were an original party hereto with the commitment percentage as set forth in such Commitment Transfer Supplement, which shall be deemed to amend this Agreement
to the extent, and only to the extent, necessary to
reflect the addition of such Purchasing Bank and the resulting adjustment of commitment percentages arising from the purchase by such Purchasing Bank of all or a portion of the rights and obligations
of such transferor Bank under this Agreement and the DSR Notes. Upon the consummation of any transfer pursuant to this Section 9.9, the
transferor Bank, the Agent and the Borrower shall make appropriate arrangements so that, if required, replacement DSR Notes are issued to such transferor Bank and new DSR Notes or, as appropriate,
replacement DSR Notes, are issued to such Purchasing Bank, in each case, in principal amounts reflecting their Commitments. 

        (b)  Any
Bank may, from time to time, sell or offer to sell participating interests in any DSR Loans owing to such Bank, any DSR Notes held by such Bank, any Commitment of
such Bank or any other interests and obligations of such Bank hereunder, to one or more banks or other entities (each, a "Participant"), on such terms
and conditions as may be determined by the selling Bank, without the consent of or notice to the Borrower, and the grant of such participation shall not relieve any Bank of its obligations, or impair
the rights of any Bank, hereunder. In the event of any such sale by a Bank of a participating interest to a Participant, such Bank shall remain solely responsible for the performance of such Bank's
obligations under this Agreement, such Bank shall remain the holder of any such DSR Notes for all purposes under this Agreement, the Borrower, the Agent and the Issuing Bank will continue to deal
solely and directly with such Bank in connection with such Bank's rights and obligations under this Agreement and such Bank shall retain the sole right and responsibility to exercise the rights of
such Bank, and enforce the obligations of the Borrower, including, without 

23

 

limitation, the right to approve any amendment, modification, supplement or waiver of any provision of any Letter of Credit Document and the right to take action under  Article VI hereof, and such
Bank shall not grant any such Participant any voting rights or veto power over any such action by such Bank under
this Agreement (provided that such Bank may agree not to consent to any modification, amendment or waiver of this Agreement, without the consent of the
Participant, that would alter the principal of or interest on the DSR Loans, postpone the date fixed for any payment of principal of or interest thereon or extend the term of any Commitment;  provided further that if any Participant refuses to consent to any such modification, amendment or waiver of this Agreement, such Bank may purchase the
participating interests from such non-consenting Participant). No Participant shall have any rights under this Agreement to receive payment of principal of or interest on any DSR Loan
except through a Bank and as provided in this Section 9.9. The Borrower agrees that, upon the occurrence and during the continuance of any Event
of Default, each Participant shall have the right of set-off in respect of its participating interest in amounts owing under this Agreement and any DSR Notes as set forth in  Section 2.22 hereof to
the same extent as if the amount of its participating interest was owing directly to it as a Bank under this Agreement or
any DSR Notes. The Borrower also agrees that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and  2.17 hereof with respect to its
participation granted hereunder; provided that no Participant shall be
entitled to receive any greater amount pursuant to such Sections than the Bank transferring such participation would have been entitled to receive in respect of the amount of the participation
transferred to such Participant had no such transfer occurred. 

        (c)  Any
Bank may, in connection with any assignment or participation or proposed assignment or participation pursuant to this  Section 9.9, disclose to the Purchasing Bank or Participant or proposed
Purchasing Bank or Participant any information relating to the Borrower
furnished to such Bank by or on behalf of the Borrower; provided, however, that prior to any such disclosure, the Person receiving such disclosure shall
sign such confidentiality agreements as is customary for financings of this kind. 

        SECTION
9.10    Indemnification.    The Borrower agrees to indemnify and hold harmless the Agent and each Bank and, in
their capacity as such, each of their respective officers, directors, shareholders, controlling persons, employees, agents and servants (each an "Indemnified
Party") from and against any and all claims, damages, losses, liabilities, obligations, penalties, actions, causes of action, judgments, suits, costs, expenses or disbursements
(including, without limitation, reasonable attorneys' and consultants' fees and expenses) (collectively, "Damages") whatsoever that such Indemnified
Party may incur (or that may be claimed against such Indemnified Party by any Person) by reason of (a) any untrue statement or alleged untrue statement of any material fact concerning the
Borrower or the Collateral, or the omission or alleged omission to state any fact concerning the Borrower or the Collateral necessary to make any such statement, in light of the circumstances under
which it was made, not misleading; (b) the issuance and delivery of the DSR Notes; (c) the use of the proceeds of any Drawing; (d) any reasonable action taken by such Indemnified
Party in protecting and enforcing the rights and remedies of the Agent and the Banks under the Financing Documents; (e) subject to  Section 7.3, the execution, delivery or transfer of, or
payment or failure to pay under, the Debt Service Reserve Letter of Credit;
(f) any claim of any Person with respect to any finder's fee, brokerage commission or other similar sum due in connection with any Financing Document; or (g) any failure by the Borrower
to comply with any environmental laws; provided, however, that the Borrower shall not be required to indemnify an Indemnified Party for any Damages to
the extent caused by such Indemnified Party's willful misconduct or gross negligence or breach of such Indemnified Party's obligations under any of the Letter of Credit Documents. If any action, suit
or proceeding arising from any of the foregoing is brought against any Indemnified Party, such Indemnified Party shall promptly notify the Borrower in writing, enclosing a copy of all papers served,
but the omission so to notify the Borrower of any such action shall not relieve the Borrower of any liability that it may have to any Indemnified Party otherwise than under this  Section 9.10 provided, however,
 that the Borrower shall not be liable for any settlement of any such action effected without the Borrower's prior
written consent. In case any such action shall be brought against any Indemnified 

24

 

Party and it shall notify the Borrower of the commencement thereof, the Borrower shall be entitled to participate in and, to the extent that it shall wish, to assume the defense thereof with counsel
reasonably satisfactory to such Indemnified Party, and after notice from the Borrower to such Indemnified Party of the Borrower's election so to assume the defense thereof. The Borrower shall not be
liable to such Indemnified Party for any subsequent legal or other expenses attributable to such defense, except as provided below, other than reasonable costs of investigation subsequently incurred
by such Indemnified Party in connection with the defense thereof. The Indemnified Party shall have the right to employ its own counsel in any such action, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party unless (i) the employment of counsel by such Indemnified Party has been authorized by the Borrower, (ii) the Indemnified Party shall
have reasonably concluded that there may be a conflict of interest between the Borrower and the Indemnified Party in the conduct of the defense of such action (in which case the Borrower shall not
have the right to direct the defense of such action on behalf of the Indemnified Party) or (iii) the Borrower shall not in fact have employed counsel reasonably satisfactory to the Indemnified
Party to assume the defense of such action. 

        SECTION
9.11    Further Assurances.    The Borrower agrees to take all actions as the Agent shall reasonably request
in order to enable the Issuing Bank, the Banks and the Agent to be entitled to all of the benefits as Lease Indenture Secured Parties under the Lease Indenture and the Mortgage. 

        SECTION
9.12    Governing Law.    THIS AGREEMENT AND THE DSR NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THEREOF. 

        SECTION
9.13    Consent to Jurisdiction and Venue.    Each of the parties hereto irrevocably (i) agrees that
any suit, action or other legal proceeding arising out of or relating to this Agreement may be brought in any court of the State of New York or any court of the United States of America located in the
State of New York, (ii) consents, for itself and in respect of its property, to the jurisdiction of each such court in any such suit, action or proceeding and (iii) waives any objection
which it may have to the laying of venue of any such suit, action or proceeding in any of such courts and any claim that any such suit, action or proceeding has been brought in an inconvenient forum.
Each of the parties 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 Section 9.13 shall affect the right of any party hereto to serve legal process in any other manner permitted by law. 

        SECTION
9.14    Headings.    The section and subsection headings used herein have been inserted for convenience of
reference only and do not constitute matters to be considered in interpreting this Agreement. 

        SECTION
9.15    Execution in Counterparts.    This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 

        SECTION
9.16    Waiver of Jury Trial.    THE BORROWER, THE AGENT THE ISSUING BANK AND THE BANKS HEREBY IRREVOCABLY
WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO ANY OF THE CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY. 

25

 

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

	 	 	HOMER CITY OL1 LLC
	

 	
 	

By:	
 	

WELLS FARGO BANK NORTHWEST,

NATIONAL ASSOCIATION, not in its

individual capacity, except as expressly

provided herein, but solely as Owner Manager
	

 	
 	

By:	
 	

/s/  FRANK MCDONALD      

	 	 	 	 	Name:	 	Frank McDonald
	 	 	 	 	Title:	 	Vice President
	
Commitment	
 	

 	
 	

 	
 	

 
	

 	
 	
WESTDEUTSCHE LANDESBANK

GIROZENTRALE, NEW YORK BRANCH
	$5,302,590	 	as Agent, Issuing Bank and as a Bank
	

 	
 	

By:	
 	

/s/  JONATHAN BERMAN      

	 	 	 	 	Name:	 	Jonathan Berman
	 	 	 	 	Title:	 	Managing Director
	

 	
 	

By:	
 	

/s/  JARED BRENNER      

	 	 	 	 	Name:	 	Jared Brenner
	 	 	 	 	Title:	 	Director
	

$5,302,590	
 	
CREDIT SUISSE FIRST BOSTON, NEW

YORK BRANCH, as a Bank
	

 	
 	

By:	
 	

/s/  PETER A. RYAN      

	 	 	 	 	Name:	 	Peter A. Ryan
	 	 	 	 	Title:	 	Vice President
	

 	
 	

By:	
 	

/s/  STEPHEN HUGHES      

	 	 	 	 	Name:	 	Stephen Hughes
	 	 	 	 	Title:	 	Associate

26

  

 
 

EXHIBIT A    
  

 
 

Form of Debt Service Reserve Letter of Credit    
  

	Westdeutsche Landesbank

Girozentrale, New York Branch

1211 Avenue of the Americas

New York, New York 10036	 	Letter of Credit No.22703100101WLB

Irrevocable Standby Credit
	

Date and Place of Issue:

New York, New York

December 7, 2001	
 	

Date and Place of Expiry:

Westdeutsche Landesbank

Girozentrale, New York Branch

New York, New York

April 1, 2002
	

 	
 	

Applicant:

Homer City OL1 LLC

Wells Fargo Bank Minnesota, N.A.

Corporate Trustee Services

MAC; N2691-090

213 Court Street

Middletown, CT 06457
	

Beneficiary:

The Bank of New York, as successor to

The United States Trust Company of

New York, as Lease Indenture Trustee

114 West 47th Street

25th Floor

New York, New York 10036

Attn: Christopher J. Grell	
 	

Amount: Up to an aggregate of Ten Million

Six Hundred Five Thousand One

Hundred Eighty United States Dollars

(US$ 10,605,180)
	

 	
 	

Credit Available With:

        Westdeutsche Landesbank Girozentrale,

        New York Branch
	

 	
 	

By: Against Presentation of the

        Documents Detailed Herein Drawn

        on Westdeutsche Landesbank

        Girozentrale, New York Branch

A-1

 

Ladies
and Gentlemen: 

        We
irrevocably authorize you to draw on us for the account of the Applicant in any amount up to an aggregate amount not to exceed TEN MILLION SIX HUNDRED FIVE THOUSAND ONE HUNDRED EIGHTY
UNITED STATES DOLLARS (US$10,605,180) (as reduced or reinstated from time to time as set forth in this Letter of Credit, the "Outstanding Amount")
available against presentation of a dated drawing request drawn on Westdeutsche Landesbank Girozentrale, New York Branch, manually signed by an authorized officer of the Beneficiary (who is identified
or purported to be as such) appropriately completed in the form of Annex I hereto and sent by such authorized officer. 

        The
above drawing request and all communications with respect to this Letter of Credit shall be in writing, addressed to us at 1211 Avenue of Americas, New York, New York 10036,
telephone (212) 852-6331, telecopy (212) 597-8388, Attention: Structured Finance/Energy, referencing this Letter of Credit No. 22703100101WLB and presented
to us by tested telex, delivery in person or facsimile transmission at such address, provided that the original of the above drawing request or such
communications, as the case may be, shall be sent to us at such address by overnight courier for receipt by us within three (3) Business Days of the date of any such facsimile transmission. 

        If
the drawing request is presented in compliance with the terms of this Letter of Credit to us at such address by 12:00 noon, New York City time, on any Business Day, payment will be
made not later than 3:00 p.m., New York City time, on such day, and if such drawing request is so presented to us after 12:00 noon, New York City time, on any Business Day, payment will be made
on the following Business Day not later than 1:00 p.m., New York City time. Payment under this Letter of Credit shall be made in immediately available funds by wire transfer to such account as
may be designated by the Beneficiary in the applicable drawing request. 

        As
used in this Letter of Credit, "Business Day" means any day on which commercial banks located in New York, New York are not required or authorized to remain closed. 

        This
Letter of Credit shall expire on the date of expiry set forth above (the "Stated Expiration Date"). 

        Notwithstanding
the foregoing, we may at any time, subject to the provisions of the Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7,
2001, among the Applicant, the Banks party thereto and Westdeutsche Landesbank Girozentrale, New York Branch, as the Agent and the Issuing Bank (the "Reimbursement
Agreement"), terminate this Letter of Credit by giving The Bank of New York, as successor to the United States Trust Company of New York, as Lease Indenture Trustee (in such
capacity, the "Lease Indenture Trustee") under the Lease Indenture referred to in the Reimbursement Agreement, written notice thereof in the form of  Annex 2 hereto by delivery in person or facsimile transmission (with written confirmation by overnight courier for receipt by the Beneficiary within two
(2) Business Days) addressed to The Bank of New York, as successor to the United States Trust Company of New York, at 114 West 47th Street, New York, New York 10036, Attn: Corporate Trust
Department, 25th Floor, telephone (212) 852-1034, telecopy (212) 852-1625, at least thirty (30) days prior to termination, whereupon the
Beneficiary is authorized to draw on us prior to such termination the Outstanding Amount of this Letter of Credit by presentation to us, in the manner and at the address specified in the fourth
preceding paragraph, of a drawing request appropriately completed in the form of Annex I hereto and sent and signed by the Beneficiary's authorized
officer. 

        This
Letter of Credit is effective immediately. 

        In
the event that a drawing request fails to comply with the terms of this Letter of Credit we shall provide the Beneficiary prompt notice of same stating the reasons therefor and shall
upon your instructions hold any non-conforming drawing request and other documents at your disposal or return any non-conforming drawing request and other documents to the
Beneficiary at the address set forth above. Upon being notified that the drawing was not effected in compliance with this Letter of Credit, 

A-2

 

the Beneficiary may attempt to correct such noncomplying drawing request in accordance with the terms of this Letter of Credit. 

        This
Letter of Credit sets forth in full the terms of our undertaking and this undertaking shall not in any way be modified, amended, limited or amplified by reference to any document,
instrument or agreement referred to herein, except for the drawing requests and certificates referred to herein. 

        This
Letter of Credit may be transferred upon presentation to us of a signed transfer certificate in the form of Annex 3 accompanied by
this Letter of Credit, in which the Beneficiary irrevocably transfers to such transferee all of its rights hereunder, whereupon we agree to either issue a substitute letter of credit to such successor
or endorse the reverse of this Letter of Credit. 

        Partial
drawings under this Letter of Credit are allowed and each such partial drawing shall reduce the amount thereafter available hereunder for drawings under this Letter of Credit.
This Letter of Credit shall be reinstated as provided in Sections 2.2(b) and 2.7(b) of the Reimbursement
Agreement and we shall so advise the Beneficiary in a certificate in the form of Annex 4 hereto. The Outstanding Amount shall be reduced or increased as
provided in Sections 2.7(b) and 2.7(c) of the Reimbursement
Agreement, subject to reinstatement as provided in the Reimbursement Agreement. In addition, the Outstanding Amount shall be reduced increased as provided in Sections
2.2(b) and 2.2(c) of the Reimbursement Agreement to the extent that we so advise the Beneficiary pursuant to a certificate in
the form of Annex 5 hereto. 

        All
banking charges, including any advising and negotiating bank charges, are for the account of the Applicant. 

        All
drawing requests under this Letter of Credit must bear the clause: 

"Drawn
under Westdeutsche Landesbank Girozentrale, New York Branch, Letter of Credit Number 22703100101WLB dated December 7, 2001." 

        This
Letter of Credit shall not be amended except with the written concurrence of Westdeutsche Landesbank Girozentrale, New York Branch, the Applicant and the Beneficiary. 

        We
hereby engage with you that a drawing request drawn strictly in compliance with the terms of this Letter of Credit and amendments thereto shall meet with due honor upon presentation. 

        This
Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce Publication Number 500 (the
"Uniform Customs"). This Letter of Credit shall be deemed to be a contract made under the laws of the State of New York and shall, as to matters not
governed by the Uniform Customs, be governed by and construed in accordance with the laws of such State. 

        We
irrevocably agree with you that any legal action or proceeding with respect to this Letter of Credit shall be brought in the courts of the State of New York in the County of New York
or of the United States of America in the Southern District of New York. By signing this Letter of Credit, we irrevocably submit to the jurisdiction of such courts solely for the purposes of this
Letter of Credit. We hereby waive, to the fullest extent permitted by law, any objection we may now or hereafter have to the laying of venue in any such action or proceeding in any such court. 

A-3

 
[Signature Page to Letter of Credit] 

	WESTDEUTSCHE LANDESBANK GIROZENTRALE,

        NEW YORK BRANCH	 	 
	

 	
 	

 
	
 Authorized signature	 	 
	

 	
 	

 
	
 Authorized signature	 	 

A-4

 
 
 

ANNEX 1    
  

 
 

Drawn under Westdeutsche Landesbank Girozentrale, New York Branch
  Letter of Credit Number 22703100101WLB    
    
    dated December 7, 2001    
    
    DRAWING REQUEST    
  

[Date]

Westdeutsche
Landesbank Girozentrale,

New York Branch

1211 Avenue of the Americas

New York, New York 10036 

Attention: 

Ladies
and Gentlemen: 

        The
undersigned hereby draws on Westdeutsche Landesbank Girozentrale, New York Branch, Letter of Credit No. 22703100101WLB Irrevocable Standby Letter of Credit (the
"Letter of Credit") dated December 7, 2001, issued by you in favor of us in connection with that certain Lease Indenture, dated as of
December 7, 2001 (as amended, supplemented or modified from time to time, the "Lease Indenture"), among Homer City OL1 LLC and The Bank of New
York, as successor to the United States Trust Company of New York, as the Lease Indenture Trustee. Any capitalized term used herein and not defined herein shall have its respective meaning as set
forth in the Letter of Credit or the Lease Indenture, as applicable. 

        In
connection with this drawing, we hereby certify that: 

	A)
	This
drawing in the amount of US$                        is being made pursuant to Westdeutsche Landesbank Girozentrale, New York
Branch, Letter of Credit No.                        Irrevocable
Standby Letter of Credit issued to the Lease Indenture Trustee pursuant to the Reimbursement Agreement; 

[Use
at least one or more of the following forms of paragraph B, as applicable] 

	B)
	After
the transfer of monies on deposit in the Debt Service Reserve Account in respect of the Lessor Notes and the application of funds pursuant to Section 3.1 of the Lease
Indenture, there are insufficient monies to pay the [interest] [and] [principal] due on the Lessor Notes pursuant to the Lease
Indenture on such date (whether due at stated maturity, at acceleration or otherwise); 

or 

	B)
	The
long-term debt rating of Westdeutsche Landesbank Girozentrale, New York Branch, has fallen below "A" as determined by Standard & Poor's Ratings Group or "A2' as
determined by Moody's Investor Services, Inc. and Homer City OL1 LLC has failed to provide us with a substitute letter of credit from another Acceptable Credit Provider or other Acceptable
Credit Support within thirty (30) days of such downgrade. 

or

	B)
	We
have received a Notice of Action and an Event of Default exists and is continuing (as each such term is defined in the Lease Indenture), and such notice remains in effect on the
date of this drawing and we have been directed by the Required Lease Indenture Secured Parties to draw on this Letter of Credit; 

A-5

 

or 

	B)
	The
Stated Expiration Date will occur within thirty (30) days of the date hereof and Homer City OL1 LLC has failed to deliver a replacement or renewal letter of credit letter of
from another Acceptable Credit Provider or other Acceptable Credit Support and security is still required under the terms of the Lease Indenture. 

or

	B)
	You
have delivered to us a Notice of Termination of Letter of Credit in the form of Annex 2 to the Letter of Credit stating that the Letter of Credit will terminate prior to the Stated
Expiration Date and Homer City OL1 LLC has failed to deliver a replacement or renewal letter of credit from another Acceptable Credit Provider or other Acceptable Credit Support prior to such
termination date and security is still required under the terms of the Lease Indenture.

	C)
	The
amount requested to be drawn does not exceed the Outstanding Amount; and

	D)
	You
are directed to make payment of the requested drawing to account
no.            at                        [insert bank name, address
and account number]. 

A-6

 

        IN
WITNESS WHEREOF, the undersigned has executed and delivered this request on this    day
of                        ,            . 

	 	THE BANK OF NEW YORK, as successor to the

UNITED STATES TRUST COMPANY OF NEW YORK,

as Lease Indenture Trustee
	

 	

By:	

 
	 	 	
 Name:

Title:
	

 	

By:	

 
	 	 	
 Name:

Title:

A-7

 
 
 

ANNEX 2    
  

 
 

NOTICE OF TERMINATION OF LETTER OF CREDIT    
  

[Date]

The
Bank of New York, as successor to

    The United States Trust Company

    of New York, as Lease Indenture Trustee

114 West 47th Street

25th Floor

New York, New York 10036 

Attn:
Corporate Trust Department 

Ladies
and Gentlemen: 

        Reference
is made to Westdeutsche Landesbank Girozentrale, New York Branch, Letter of Credit No. 22703100101WLB Irrevocable Standby Letter of Credit (the
"Letter of Credit") dated December 7, 2001, issued by us in your favor. 

        This
constitutes our notice to you pursuant to the Letter of Credit that the Letter of Credit shall terminate
on                        ,            [insert a date which is 30
or more days after the date of this notice of termination] (the "Termination Date"). 

        Pursuant
to the terms of the Letter of Credit, you are authorized to draw (pursuant to one or more drawings), prior to the Termination Date, on the Letter of Credit in an aggregate
amount that does not exceed the Outstanding Amount (as defined in the Letter of Credit). 

	 	Very truly yours,
	

 	

WESTDEUTSCHE LANDESBANK

GIROZENTRALE, NEW YORK BRANCH
	

 	

By:	

 
	 	 	

	

 	

By:	

 
	 	 	

A-8

 
 
 

ANNEX 3    
  

 
 

TRANSFER OF LETTER OF CREDIT    
  

[Date]

Westdeutsche
Landesbank Girozentrale.

    New York Branch

1211 Avenue of the Americas

New York, New York 10036 

Attention:

Ladies
and Gentlemen: 

        Reference
is made to Westdeutsche Landesbank Girozentrale, New York Branch, Letter of Credit No. 22703100101WLB Irrevocable Standby Letter of Credit dated December 7, 2001
originally issued by you in favor of The Bank of New York, as successor to the United States Trust Company of New York, as Lease Indenture Trustee (the "Letter of
Credit") in connection with that certain Lease Indenture, dated as of December 7, 2001 (as amended, supplemented or modified from time to time, the
"Lease Indenture"), among Homer City OL1 LLC, The Bank of New York, as successor to the United States Trust Company of New York, as Security Agent and
The Bank of New York, as successor to the United States Trust Company of New York, as Lease Indenture Trustee. Any capitalized term used herein and not defined shall have its respective meaning as set
forth in the Letter of Credit or in the Lease Indenture, as applicable. 

        For
value received, the undersigned, as beneficiary under the Letter of Credit, hereby irrevocably transfers
to                        (the
"Transferee") all rights of the undersigned to draw under the Letter of Credit in their entirety. 

        By
this transfer, all rights of the undersigned, as beneficiary under the Letter of Credit, are transferred to the Transferee, and the Transferee shall have the sole rights with respect
to the Letter of Credit relating to any amendments thereof and any notices thereunder. All amendments to the Letter of Credit are to be consented to by the Transferee without necessity of any consent
of or notice to the undersigned. 

        Simultaneously
with the delivery of this notice to you, copies of this notice are being transmitted to the Transferee. 

A-9

 

        The
Letter of Credit is returned herewith, and we ask you to either issue a substitute letter of credit for the benefit of the Transferee or endorse the transfer on the reverse thereof,
and forward it directly to the Transferee with your customary notice of transfer. 

	 	 	 	Very truly yours,
	

 	

 	
 	

THE BANK OF NEW YORK, as successor to the UNITED STATES TRUST COMPANY OF NEW YORK, as Lease Indenture Trustee
	

 	

 	
 	

By:	

 
	 	 	 	 	
 Name:

Title:
	

 	

 	
 	

By:	

 
	 	 	 	 	
 Name:

Title:
	

CONSENTED AND ACKNOWLEDGED BY:	
 	

 	

 
	

[TRANSFEREE]	
 	

 	

 
	

By:	

 	
 	

 	

 
	 	
 Name:

Title:	 	 	 

A-10

 
 
 

ANNEX 4    
  

 
 

CERTIFICATE OF REINSTATEMENT OF OUTSTANDING AMOUNT    
  

[Date]

The
Bank of New York, as successor to

    the United States Trust Company

    of New York, as Lease Indenture Trustee

114 West 47th Street

25th Floor

New York, New York 10036 

Attn:
Corporate Trust Department 

Ladies
and Gentlemen: 

        Reference
is made to Westdeutsche Landesbank Girozentrale, New York Branch, Letter of Credit No. 22703100101WLB Irrevocable Standby Letter of Credit (the
"Letter of Credit") dated December 7, 2001, issued by us in your favor. Any capitalized term used herein and not defined shall have its
respective meaning as set forth in the Letter of Credit. 

        This
constitutes our notice to you pursuant to the Letter of Credit that: 

We
have received repayment of a DSR Loan in accordance with the provisions of the Reimbursement Agreement in the amount of
$                        , and, pursuant to  Section 2.7(c) of the
Reimbursement Agreement, the Outstanding Amount is therefore increased by such amount to $                        . 

	 	 	Very truly yours,
	

 	
 	

WESTDEUTSCHE LANDESBANK

GIROZENTRALE, NEW YORK BRANCH
	

 	
 	

By:	

 
	 	 	 	

	

 	
 	

By:	

 
	 	 	 	

A-11

 
 
 

ANNEX 5    
  

 
 

CERTIFICATE OF CHANGE OF OUTSTANDING AMOUNT    
  

[Date]

The
Bank of New York, as successor to

    the United States Trust Company

    of New York, as Lease Indenture Trustee

114 West 47th Street

25th Floor

New York, New York 10036 

Attn:
Corporate Trust Department 

Ladies
and Gentlemen: 

        Reference
is made to Westdeutsche Landesbank Girozentrale, New York Branch, Letter of Credit No. 22703100101WLB Irrevocable Standby Letter of Credit (the
"Letter of Credit") dated December 7, 2001 issued by us in your favor in connection with that certain Lease Indenture, dated as of
December 7, 2001 (as amended, supplemented or modified from time to time, the "Lease Indenture"), among Homer City OL1 LLC and The Bank of New
York, as successor to the United States Trust Company of New York, as the Lease Indenture Trustee. Any capitalized term used herein and not defined shall have its respective meaning as set forth in
the Letter of Credit or the Lease Indenture, as applicable. 

        This
constitutes our notice to you pursuant to the Letter of Credit that we have been advised by the Applicant that: 

The
Debt Service Reserve Requirement has been [reduced/increased] by the amount of $            . Accordingly, pursuant to Section 2.2(b)  of
the Reimbursement Agreement, the Outstanding Amount is [reduced/increased] by $            to $            . 

	 	 	Very truly yours,
	

 	
 	

WESTDEUTSCHE LANDESBANK

GIROZENTRALE, NEW YORK BRANCH
	

 	
 	

By:	

 
	 	 	 	

	

 	
 	

By:	

 
	 	 	 	

A-12

  

 
 

EXHIBIT B    
  

 
 

DEBT SERVICE RESERVE LETTER OF CREDIT PROMISSORY NOTE    
  

	$5,302,590	 	New York, New York

December 7, 2001

        FOR
VALUE RECEIVED, the undersigned, HOMER CITY OL1, a Delaware corporation (the "Borrower"), hereby unconditionally promises to pay to
the order of [            ] (the "Bank") the lesser of (i) the principal sum
of                        
($                        ) and
(ii) the aggregate unpaid principal amount of the DSR Loans made by the Bank to the Borrower under the Reimbursement Agreement referred to below, on the dates and in the amounts specified
therein. 

        The
Borrower further promises to pay interest on the unpaid principal amount hereof from time to time outstanding on the dates and at the rates specified in the Reimbursement Agreement
(as herein defined). This DSR Note is hereby expressly limited so that in no contingency or event, whether by reason of acceleration of the maturity of any indebtedness evidenced hereby or otherwise,
shall the interest contracted for or charged or received by the Bank exceed the maximum amount permissible under Applicable Law. If, due to any circumstance whatsoever, interest would otherwise be
payable to the Bank in excess of the maximum lawful amount, the interest payable to the Bank shall be reduced to the maximum amount permitted under Applicable Llaw, and the amount of interest for any
subsequent period, to the extent less than that permitted by Applicable Law, shall to that extent be increased by the amount of such reduction. 

        Each
holder hereof is irrevocably authorized to endorse on the schedule attached hereto, or on a continuation thereof, the date each such interest payment is due and the amount of each
such interest payment determined in accordance with the Reimbursement Agreement. All such notations shall constitute prima facie evidence of the
accuracy of the information so recorded and be enforceable against the Borrower with the same force and effect as if such amounts were each set forth in a separate note executed by the Borrower. 

        All
payments due hereunder shall be made without setoff, counterclaim or deduction of any nature to Westdeutsche Landesbank Girozentrale, New York Branch, as the Agent, at 1211 Avenue of
the Americas, New York, New York 10036, in lawful money of the United States of America and in immediately available funds, or at such other place and in such other manner as may be specified by the
Agent pursuant to the Reimbursement Agreement. 

        Each
holder hereof is irrevocably authorized to endorse on the schedule attached hereto, or on a continuation thereof, the date and amount of each DSR Loan made to the Borrower and each
payment or prepayment of principal thereof, provided that the failure of such holder to make, or any error in making, any such recordation or
endorsement shall not affect the obligations of the Borrower hereunder or under the Reimbursement Agreement. All such notations shall constitute prima facie  evidence of the accuracy of the information
so recorded and be enforceable against the Borrower with the same force and effect as if such amounts were each set forth in a
separate note executed by the Borrower. 

        This
DSR Note is one of the "DSR Notes" of the Borrower to the Bank referred to in, evidences each DSR. Loan made by the Bank to the Borrower under, is subject to the provisions of, and
entities its holder to the benefits of, the Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 (the "Reimbursement
Agreement"), among the Borrower, the Bank and the other banks party thereto, and Westdeutsche Landesbank Girozentrale, New York Branch, as the Issuing Bank and as the Agent for
the Bank and such other banks, as the same may be amended, supplemented or otherwise modified from time to time and to which reference is hereby made for a 

B-1

 

more complete statement of the terms and conditions under which each DSR Loan evidenced hereby is to be made and repaid. Capitalized terms in this DSR Note that are not specifically defined herein
shall have the meanings ascribed to them in the Reimbursement Agreement. 

        The
Reimbursement Agreement provides for, among other things, the acceleration of the maturity of the unpaid principal amount hereof upon the occurrence of certain stated events and for
voluntary prepayments in certain circumstances and upon certain terms and conditions. The obligations of the Borrower under the Reimbursement Agreement and this DSR Note are secured by, and the holder
hereof is entitled to the benefit of, the Collateral as provided in the Security Documents. 

        In
addition to any and all costs, fees and expenses for which the Borrower is liable under the Reimbursement Agreement, the Borrower promises to pay all reasonable costs and expenses,
including reasonable attorneys' fees and disbursements, incurred in the collection and enforcement hereof or any appeal of any judgment rendered hereon. 

        The
Borrower hereby expressly waives presentment, protest, demand and dishonor to the fullest extent permitted by applicable law. No failure or delay by any holder of this DSR Note to
exercise any right or remedy under this DSR Note or any other document or instrument entered into pursuant to the Reimbursement Agreement shall operate or be construed as a waiver or modification
hereof or thereof. 

        This
DSR Note shall be binding upon the successors and assigns of the Borrower and shall inure to the Bank and its successors, endorsees and assigns. If any term or provision of this DSR
Note shall be held invalid, illegal or unenforceable, the validity of all other terms and provisions hereof shall in no way be affected thereby. 

        Except
as may otherwise specifically be provided in the Lease Indenture of the Participation Agreement, the Borrower's obligation to make payments in respect of the DSR Notes shall be
limited as set forth in Section 7.2 and Section 9.7 (b) and  (c) of the Reimbursement Agreement.

        All
payments of principal and interest and all other amounts to be made by the Owner Lessor hereunder or under the Reimbursement Agreement (or the Lease Indenture) shall be made only
from the income and proceeds from the Indenture Estate and the Owner Lessor and Lease Indenture Trustee shall have no obligation for the payment thereof except to the extent that the Lease Indenture
Trustee shall have sufficient income or proceeds from the Indenture Estate to enable such payments to be made in accordance with the terms of the Lease Indenture. Each holder hereof, by its acceptance
of this DSR Note, agrees that (a) it will look solely to the income and proceeds from the Indenture Estate to the extent available for distribution to the holder hereof as above provided,
(b) none of the Lease Indenture Trustee, Owner Participant any OP Guarantor, the Owner Manager or the Trust Company, or any Affiliate of any thereof, is, or shall be, personally liable to the
holder hereof for any amounts payable under this DSR Note or under the Reimbursement Agreement (or the Lease Indenture), except as expressly provided in the Lease Indenture and (c) any such
amounts shall be non-recourse to the assets of each of the Lease Indenture Trustee, the Owner Participant, any OP Guarantor, the Owner Manager or the Trust Company, or any Affiliate of any
thereof. 

        By
its acceptance hereof, the holder of this DSR Note agrees that the Owner Manager is executing this DSR Note on behalf of the Owner Lessor solely in its capacity as Owner Manager under
the Lessor LLC Agreement and not in its individual capacity and in no case shall the Trust Company (or any entity acting as Owner Manager under the Lessor LLC Agreement) be personally liable in
respect of the obligations stated to be those of the Owner Lessor or the Owner Participant hereunder. 

        THIS
NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THEREOF. 

B-2

 

        The
Borrower hereby expressly and irrevocably agrees and consents that any suit, action or proceeding arising out of or related to this DSR Note may be instituted in any state or federal
court (at the Bank's option) sitting in the County of New York, State of New York, and, by the execution and delivery of this DSR Note, the Borrower expressly waives any objection which it may have
now or hereafter to the venue or to the jurisdiction of any such suit, action or proceeding, and irrevocably submits generally and unconditionally to the jurisdiction of any such court in any such
suit, action or proceeding. 

	

 	

HOMER CITY OL1 LLC
	

 	

By:	

 
	 	 	
 Name:

Title:

B-3

 
 
 

SCHEDULE    
  

	Date
	 	Principal

Amount of

DSR Loan
	 	Amount and

Date of

Principal

Paid

or Prepaid
	 	Unpaid

Principal

Balance
	 	Date Interest

Payment is

Due
	 	Amount of

Interest Due
	 	Total

Principal

Amount of

DSR Loans

Outstanding
	 	Notation Made

By

	    	 	 	 	 	 	 	 	 	 	 	 	 	 	 

B-4

  

 
 

EXHIBIT C    
  

 
 

Form of Commitment Transfer Supplement    
  

        COMMITMENT TRANSFER SUPPLEMENT, dated as of the date set forth in Item I of  Schedule I
hereto, among each Transferor Bank set forth in Item 2 of
Schedule I hereto (each, a "Transferor Bank"), each Purchasing Bank set forth in  Item 3 of Schedule I hereto (each a "Purchasing
Bank"), and Westdeutsche Landesbank Girozentrale, New York Branch, as the Issuing Bank and as the Agent under the Reimbursement Agreement described below. 

 
 

WITNESSETH    
  

        WHEREAS, this Commitment Transfer Supplement is being executed and delivered in accordance with Section 9.9
of the Reimbursement Agreement, dated as of December 7, 2001, by and among (i) Homer City OL1 LLC, a Delaware limited liability corporation (the
"Borrower"), (ii) Westdeutsche Landesbank Girozentrale, New York Branch, in its capacity as Issuing Bank (the "Issuing
Bank") and as a Bank (as defined below), (iii) Credit Suisse First Boston, New York Branch, as a Bank (as defined below), (iv) each bank or other entity that is,
or becomes pursuant to Section 9.9 of the Reimbursement Agreement, a party thereto (collectively, the
"Banks") and (v) Westdeutsche Landesbank Girozentrale, New York Branch, as agent (in such capacity, together with its successors in such
capacity, the "Agent") (as amended, supplemented or otherwise modified in accordance with the terms thereof from time to time, the
"Reimbursement Agreement"; terms defined therein being used herein as therein defined); and 

        WHEREAS,
each Purchasing Bank (if it is not already a Bank party to the Reimbursement Agreement) desires to become a Bank party to the Reimbursement Agreement; and 

        WHEREAS,
each Transferor Bank is selling and assigning to its respective Purchasing Bank, certain rights, obligations and commitments under the Reimbursement Agreement; 

        NOW,
THEREFORE, the parties hereto hereby agree as follows: 

        1.    Upon
receipt by the Agent of [    ] ([    ]) fully executed originals of this Commitment Transfer
Supplement, to each of which is attached a fully completed Schedule I, Schedule II and  Schedule III, and each of which has been executed by
each Transferor Bank, each Purchasing Bank and any other Person required by the
Reimbursement Agreement to execute this Commitment Transfer Supplement, the Agent will transmit to the Borrower, each Transferor Bank and each Purchasing Bank a Transfer Effective Notice,
substantially in the form of Schedule IV hereto (a "Transfer Effective Notice"). Such Transfer
Effective Notice shall set forth, inter alia, the date on which the transfer effected by this Commitment Transfer Supplement shall become effective (the
"Transfer Effective Date"), which date shall be the date hereof. From and after the Transfer Effective Date, each Purchasing Bank shall be a Bank party
to the Reimbursement Agreement for all purposes thereof. 

        2.    Each
Purchasing Bank shall pay to each of its respective Transferor Banks an amount equal to the purchase price, as agreed between such Transferor Bank and each such
Purchasing Bank and as set forth on Schedule II hereto (the "Purchase Price"), of the portion
being purchased (such Purchasing Bank's "Purchased Percentage") by such Purchasing Bank of the outstanding DSR Loans and other amounts owing to the
respective Transferor Bank under the Reimbursement Agreement and the DSR Notes (the "Outstanding Obligations"). Each Purchasing Bank shall pay the
appropriate Purchase Price to each of its respective Transferor Banks, in immediately available funds, at or before 12:00 noon, local time of the appropriate Transferor Bank, on the first Business Day
of the month in which the Transfer Effective Date occurs. Effective upon the Transfer Effective Date, each Transferor Bank hereby irrevocably sells, assigns and transfers to each of its respective
Purchasing Banks, without recourse, representation or warranty other than as set forth 

C-1

 

in Section 8 hereof, and each such Purchasing Bank hereby irrevocably purchases, takes and assumes from each of its respective Transferor Banks,
such Purchasing Bank's Purchased Percentage of the Commitment, presently outstanding DSR Loans and other amounts owing to each such Transferor Bank under the Reimbursement Agreement and the DSR Notes,
together with all instruments, documents and collateral security pertaining thereto. 

        3.    Each
Transferor Bank has made arrangements with each of its respective Purchasing Banks with respect to (a) the portion, if any, to be paid, and the date or dates
for payment, by such Transferor Bank to each of its respective Purchasing Banks of any fees heretofore received by such Transferor Bank pursuant to the Reimbursement Agreement prior to the Transfer
Effective Date and (b) the portion, if any, to be paid, and the date or dates for payment, by each such Purchasing Bank to each Transferor Bank, or by each such Transferor Bank to each
Purchasing Bank, of fees or interest received by each such Purchasing Bank or each such Transferor Bank, as the case may be, pursuant to the Reimbursement Agreement from and after the Transfer
Effective Date. Any interest, accrued from and after the Transfer Effective Date, with respect to principal of the DSR Loans for which the Purchase Price has yet to be paid under  Section 2 above,
shall accrue for the benefit of the appropriate Transferor Bank to the extent of the Adjusted Base Rate and shall accrue for the
benefit of the appropriate Purchasing Bank to the extent of the applicable interest rate less the Adjusted Base Rate. 

        4.    (a)    All
principal payments that would otherwise be payable from and after the Transfer Effective Date to or for the account of any Transferor Bank pursuant
to the Reimbursement Agreement and the DSR Notes shall, instead, be payable to or for the account of the appropriate Transferor Banks and the appropriate Purchasing Banks, as the case may be, in
accordance with their respective interests as reflected in this Commitment Transfer Supplement. 

        (b)  Except
as otherwise agreed as set forth in Section 3 hereof, all interest, fees and other amounts that would
otherwise accrue for the account of any Transferor Bank from and after the Transfer Effective Date pursuant to the Reimbursement Agreement and the DSR Notes shall, instead, accrue for the account of,
and be payable to, the appropriate Transferor Banks and the appropriate Purchasing Banks, as the case may be, in accordance with their respective interests as reflected in this Commitment Transfer
Supplement. In the event that any amount of interest, fees, or other amounts accruing prior to the Transfer Effective Date was included in the Purchase Price paid by any Purchasing Bank, the
appropriate Transferor Bank and such Purchasing Bank will make appropriate arrangements for payment by such Transferor Bank to such Purchasing Bank of such amount upon receipt thereof from the
Borrower. 

        5.    On
or prior to the Transfer Effective Date, each Transferor Bank will deliver to the Agent its DSR Note[s]. On or prior to the Transfer Effective
Date, the Borrower will deliver to the Agent new DSR Notes for each Purchasing Bank and each Transferor Bank, in each case in principal amounts reflecting, in accordance with the Reimbursement
Agreement, their respective "Revised Commitment Percentage" or "New Commitment Percentage," as the case may be and as set forth in Schedule III
hereto, of the Commitment or, as appropriate, their then outstanding shares of the Outstanding Obligations (as adjusted pursuant to this Commitment Transfer Supplement). Promptly after the Transfer
Effective Date, the Agent will send to each Transferor Bank and Purchasing Bank its new DSR Notes[s]with the superseded DSR Note[s] of each Transferor
Bank attached to the new DSR Note[s] (or if more than one new DSR Note, the superseded DSR Note[s] attached to one of such new DSR
Note[s] and copies thereof attached to all other new DSR Note). 

        6.    Concurrently
with the execution and delivery hereof, the Transferor Banks will provide to each Purchasing Bank (if it is not already a Bank party to the Reimbursement
Agreement) copies 

C-2

 

of all documents delivered to the Transferor Banks evidencing satisfaction of the conditions precedent set forth in the Reimbursement Agreement. 

        7.    Each
of the parties to this Commitment Transfer Supplement agrees that at any time and from time to time upon the written request of any other party, it will execute and
deliver such further documents and do such further acts and things as such other party may reasonably request in order to effect the purposes of this Commitment Transfer Supplement. 

        8.    By
executing and delivering this Commitment Transfer Supplement, each Transferor Bank and each of its respective Purchasing Banks confirm to and agree with each other,
the Agent, the Issuing Bank and the Banks as follows: (a) other than the representation and warranty that it is the legal and beneficial owner of the interest being assigned hereby free and
clear of any adverse claim, each such Transferor Bank makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in
connection with the Reimbursement Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Reimbursement Agreement, the DSR Notes or any other
instrument or document furnished pursuant thereto, (b) each such Transferor Bank makes no representation or warranty and assumes no responsibility with respect to the financial condition of the
Borrower or the performance or observance by the Borrower of any of its obligations under the Reimbursement Agreement, the DSR Notes or any other instrument or document furnished pursuant hereto,
(c) each such Purchasing Bank confirms that it has received a copy of the Reimbursement Agreement, together with copies of such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Commitment Transfer Supplement, (d) each such Purchasing Bank will, independently and without reliance upon the Agent, its
respective Transferor Banks or any other Bank or the Issuing Bank, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Reimbursement Agreement, (e) each such Purchasing Bank appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such
powers under the Reimbursement Agreement as are delegated to the Agent by the terms thereof together with such powers as are reasonably incidental thereto and (f) each such Purchasing Bank
agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Reimbursement Agreement are required to be performed by it as a Bank and that it will be
bound by the terms and provisions thereof as a Bank. 

        9.    Schedule III hereto sets forth for each Transferor Bank and each Purchasing Bank the revised Commitment, and/or Commitment
Percentage, as the case may be, of each Transferor Bank and each Purchasing Bank, as well as certain administrative information with respect to each Purchasing Bank. 

        10.  Notwithstanding
anything to the contrary in this Commitment Transfer Supplement, if the long-term debt rating of any Purchasing Bank shall, at any time, be
less than a rating of A or the equivalent thereof by S&P or A2 or the equivalent thereof by Moody's, then the Issuing Bank may, in its sole and absolute discretion, purchase all or any part (as
designated by the Issuing Bank) of such Purchasing Bank's participating interest hereunder (the "Purchased Interests") (which, if in part, may be
limited to the Purchasing Bank's participating interest in the rights and obligations of the Issuing Bank under, and in connection with, one or more Debt Service Reserve Letters of Credit, including,
without limitation, the obligations to pay the Issuing Bank if it is not reimbursed by the Borrower in immediately available funds for any drawings under such Debt Service Reserve Letter of Credit and
to make certain loans, if any, provided to be made under the Reimbursement Agreement in the event of certain drawings under such Debt Service Reserve Letter of Credit, all in accordance with the
Reimbursement Agreement) by providing such Purchasing Bank with at least two Banking Days' prior notice of such purchase and making a payment to such Purchasing 

C-3

 

Bank for all outstanding amounts owing to it hereunder or pursuant to the Reimbursement Agreement in respect of the Purchased Interests on the date of such purchase as set forth in such notice. Upon
any such purchase of all of a Purchasing Bank's participating interest hereunder, such Purchasing Bank shall no longer have any rights or obligations as a Purchasing Bank hereunder or as a Bank under
the Reimbursement Agreement or under any other instruments or documents furnished pursuant thereto.
The Issuing Bank may, in its sole and absolute discretion, retain for its own account and/or sell its interest in all or any portion of the Purchased Interests. 

        11.  THIS
COMMITMENT TRANSFER SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CONFLICTS OF LAW
PRINCIPLES THEREOF. 

        12.  This
Commitment Transfer Supplement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one
and the same document. 

        13.  Execution
of this Commitment Transfer Supplement by the Agent as set forth below shall constitute the consent of such Person required pursuant to  Section 9.9 of the Reimbursement Agreement. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Commitment Transfer Supplement to be executed by their respective duly authorized officers on  Schedule I hereto as of the date set forth in
Item I of  Schedule I hereto. 

C-4

 
 
 

SCHEDULE I TO COMMITMENT
  TRANSFER SUPPLEMENT    
  

 
 

COMPLETION OF INFORMATION AND
  SIGNATURES FOR COMMITMENT
  TRANSFER SUPPLEMENT    
  

	Re:	 	Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001, with HOMER CITY OL1 LLC, as the Borrower.
	

Item 1	
 	

Date of Commitment Transfer Supplement:	
 	

[Insert date of Commitment Transfer Supplement]
	

Item 2	
 	

Transferor:	
 	

[Insert names of Transferor Banks]
	

Item 3	
 	

Purchasing Banks:	
 	

[Insert names of Purchasing Banks]
	

Item 4	
 	

Signatures of Parties to Commitment Transfer Supplement:	
 	

 

	 	 	____________________________________ ,

as a Transferor Bank
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	

____________________________________ ,

as a Purchasing Bank
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	

Westdeutsche Landesbank Girozentrale, New York Branch, as the Issuing Bank and the Agent
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

C-5

 
 
 

SCHEDULE II TO COMMITMENT
  TRANSFER SUPPLEMENT    
  

 
 

PURCHASE PRICES    
    
    Names of
  Transfer Banks    
  

	Names of

Purchaser Banks
	 	[Insert name of

Transferor Bank]
	 	[Insert name of

Transferor Bank]
	 	[Insert name of

Transferor Banks]

	[Insert name of Purchasing Bank]	 	$[Insert Purchase Price]	 	$[Insert Purchase Price]	 	$[Insert Purchase Price]

C-6

 
 
 

SCHEDULE III TO COMMITMENT
  TRANSFER SUPPLEMENT    
  

 
 

LIST OF LENDING OFFICES, ADDRESSES FOR NOTICES,
  COMMITMENT AMOUNTS, AND PROPORTIONATE SHARES    
  

	Names of Transferor Banks
	 	Revised Maximum Commitment

	[                        ]	 	$
	[                        ]	 	$

	Names of Transferor Banks
	 	Revised Commitment Percentage

	[                        ]	 	                        %
	[                        ]	 	                        %

	Names of Purchasing Banks
	 	New Maximum Commitment

	[                        ]	 	                        %

	Names of Purchasing Banks
	 	Commitment Percentage

	[                        ]	 	                        %

C-7

 

[NAME
OF PURCHASING BANK(S)]

Address for Notices:

Attention:

Telex:

Answerback:

Telephone:

Telecopier: 

Clearing Account:  

[Insert
Acct. #1] 

Eurodollar Lending Office:  

[Insert
Address] 

Domestic Lending Office:  

[Insert
Address] 

C-8

 
 
 

SCHEDULE IV TO COMMITMENT
  TRANSFER SUPPLEMENT    
  

 
 

TRANSFER EFFECTIVE NOTICE    
  

            ,            

Transferor
Banks: [                        ] 

Purchasing
Banks: [                        ] 

Borrower:
HOMER CITY OL1 LLC 

        The
undersigned, as the Agent under the Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among (i) Homer City OL1 LLC,
a Delaware limited liability corporation (the "Borrower"), (ii) Westdeutsche Landesbank Girozentrale, New York Branch, as Issuing Bank (the
"Issuing Bank"), and the other Banks named therein (collectively, the "Banks"), and
(iii) Westdeutsche Landesbank Girozentrale, New York Branch, as agent for the Banks (the "Agent") (as amended, supplemented or otherwise modified
in accordance with the terms thereof from time to time, the "Reimbursement Agreement") acknowledge receipt of [    ]
([    ]) copies of the Commitment Transfer Supplement as described in Annex I hereto, each fully executed. Terms
defined in such Commitment Transfer Supplement are used herein as therein defined. 

        1.    Pursuant
to such Commitment Transfer Supplement, you are advised that the Transfer Effective Date will be the date hereof. 

        2.    Pursuant
to such Commitment Transfer Supplement, each Transferor Bank is required to deliver to the Agent on or before the Transfer Effective Date its DSR
Note[s]. 

        3.    Pursuant
to such Commitment Transfer Supplement, the Borrower is required to deliver to the Agent on or before the Transfer Effective Date the following DSR Notes: 

        [Describe
each new DSR Note for Transferor Bank and Purchasing Bank as to principal amount and payee.] 

        4.    Pursuant
to such Commitment Transfer Supplement, each Purchasing Bank is required to pay its Purchase Price, in immediately available funds, to the appropriate Transferor
Bank at or before 12:00 noon, local time of the appropriate Transferor Bank, on [the first Business Day of the month in which the Transfer Effective Date occurs]). 

	 	 	Very truly yours,
	

 	
 	

Westdeutsche Landesbank Girozentrale, New York Branch, as the Agent:
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

C-9

 
 
 

ANNEX I    
  

 
 

INFORMATION FOR COMMITMENT TRANSFER SUPPLEMENT    
  

	Re:	 	Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001, with Homer City OL1 LLC, as the Borrower
	

Item 1	
 	

Date of Commitment Transfer Supplement:	
 	

            ,            
	

Item 2	
 	

Transferor:	
 	

[                        ]
	

Item 3	
 	

Purchasing Banks:	
 	

[                        ]

C-10

QuickLinks

Exhibit 10.30

Table of Contents

DEBT SERVICE RESERVE LETTER OF CREDIT AND REIMBURSEMENT AGREEMENT

RECITALS

AGREEMENT

EXHIBIT A

Form of Debt Service Reserve Letter of Credit

ANNEX 1

Drawn under Westdeutsche Landesbank Girozentrale, New York Branch Letter of Credit Number 22703100101WLB dated December 7, 2001 DRAWING REQUEST

ANNEX 2

NOTICE OF TERMINATION OF LETTER OF CREDIT

ANNEX 3

TRANSFER OF LETTER OF CREDIT

ANNEX 4

CERTIFICATE OF REINSTATEMENT OF OUTSTANDING AMOUNT

ANNEX 5

CERTIFICATE OF CHANGE OF OUTSTANDING AMOUNT

EXHIBIT B

DEBT SERVICE RESERVE LETTER OF CREDIT PROMISSORY NOTE

SCHEDULE

EXHIBIT C

Form of Commitment Transfer Supplement

WITNESSETH

SCHEDULE I TO COMMITMENT TRANSFER SUPPLEMENT

COMPLETION OF INFORMATION AND SIGNATURES FOR COMMITMENT TRANSFER SUPPLEMENT

SCHEDULE II TO COMMITMENT TRANSFER SUPPLEMENT

PURCHASE PRICES Names of Transfer Banks

SCHEDULE III TO COMMITMENT TRANSFER SUPPLEMENT

LIST OF LENDING OFFICES, ADDRESSES FOR NOTICES, COMMITMENT AMOUNTS, AND PROPORTIONATE SHARES

SCHEDULE IV TO COMMITMENT TRANSFER SUPPLEMENT

TRANSFER EFFECTIVE NOTICE

ANNEX I

INFORMATION FOR COMMITMENT TRANSFER SUPPLEMENTQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.30.1    
  

Schedule
identifying substantially identical agreements to Debt Service Reserve Letter of Credit and Reimbursement Agreement. 

	1.
	The
Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among Homer City OL1 LLC, Westdeutsche Landesbank Girozentrale, New
York Branch, Credit Suisse First Boston, New York Branch, and Westdeutsche Landesbank Girozentrale, New York Branch, as agent, in an amount of up to $10,605,180.

	2.
	The
Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among Homer City OL2 LLC, Westdeutsche Landesbank Girozentrale, New
York Branch, Credit Suisse First Boston, New York Branch, and Westdeutsche Landesbank Girozentrale, New York Branch, as agent, in an amount of up to $7,070,120.

	3.
	The
Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among Homer City OL3 LLC, Westdeutsche Landesbank Girozentrale, New
York Branch, Credit Suisse First Boston, New York Branch, and Westdeutsche Landesbank Girozentrale, New York Branch, as agent, in an amount of up to $3,535,060.

	4.
	The
Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among Homer City OL4 LLC, Westdeutsche Landesbank Girozentrale, New
York Branch, Credit Suisse First Boston, New York Branch, and Westdeutsche Landesbank Girozentrale, New York Branch, as agent, in an amount of up to $3,535,060.

	5.
	The
Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among Homer City OL5 LLC, Westdeutsche Landesbank Girozentrale, New
York Branch, Credit Suisse First Boston, New York Branch, and Westdeutsche Landesbank Girozentrale, New York Branch, as agent, in an amount of up to $3,535,060.

	6.
	The
Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among Homer City OL6 LLC, Westdeutsche Landesbank Girozentrale, New
York Branch,
Credit Suisse First Boston, New York Branch, and Westdeutsche Landesbank Girozentrale, New York Branch, as agent, in an amount of up to $3,535,060.

	7.
	The
Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among Homer City OL7 LLC, Westdeutsche Landesbank Girozentrale, New
York Branch, Credit Suisse First Boston, New York Branch, and Westdeutsche Landesbank Girozentrale, New York Branch, as agent, in an amount of up to $1,767,530.

	8.
	The
Debt Service Reserve Letter of Credit and Reimbursement Agreement, dated as of December 7, 2001 by and among Homer City OL8 LLC, Westdeutsche Landesbank Girozentrale, New
York Branch, Credit Suisse First Boston, New York Branch, and Westdeutsche Landesbank Girozentrale, New York Branch, as agent, in an amount of up to $1,767,530. 

QuickLinks

Exhibit 10.30.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]