Document:

EX-4.3

 EXHIBIT 4.3 
 AMENDED AND RESTATED DECLARATION OF TRUST 
 among 

CEI FUNDING LLC, 
 OE FUNDING LLC 
 and 

TE FUNDING LLC, 
 acting jointly as Settlors 
 and 

U.S. BANK TRUST NATIONAL ASSOCIATION, 
 as Delaware Trustee 
 and 

THE CLEVELAND ELECTRIC ILLUMINATING COMPANY, 
 OHIO EDISON COMPANY 
 and 

THE TOLEDO EDISON COMPANY, 
 as Administrative Trustee 
 Dated as of [    ], 2013

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
			
	ARTICLE I.	 	DEFINITIONS AND INCORPORATION BY REFERENCE	  	 	2	  
	 SECTION 1.1
	 	 Definitions
	  	 	2	  
			
	ARTICLE II.	 	ORGANIZATION	  	 	2	  
	 SECTION 2.1
	 	 Creation of Trust
	  	 	2	  
	 SECTION 2.2
	 	 Situs of the Trust
	  	 	3	  
	 SECTION 2.3
	 	 Purposes and Powers
	  	 	3	  
	 SECTION 2.4
	 	 Trust Property
	  	 	3	  
	 SECTION 2.5
	 	 Issuance of Certificates
	  	 	4	  
	 SECTION 2.6
	 	 Organizational Expenses
	  	 	4	  
	 SECTION 2.7
	 	 Independent Status
	  	 	4	  
	 SECTION 2.8
	 	 Tax Treatment; Construction
	  	 	4	  
			
	ARTICLE III.	 	DELIVERY OF CERTAIN DOCUMENTS	  	 	4	  
	 SECTION 3.1
	 	 Documents Relating to Issuance of Certificates
	  	 	4	  
	 SECTION 3.2
	 	 Residual Matters
	  	 	5	  
			
	ARTICLE IV.	 	THE TRUSTEES	  	 	5	  
	 SECTION 4.1
	 	 Appointment
	  	 	5	  
	 SECTION 4.2
	 	 Duties and Responsibilities
	  	 	5	  
	 SECTION 4.3
	 	 Prohibited Actions
	  	 	5	  
	 SECTION 4.4
	 	 Acceptance of the Trusts
	  	 	5	  
	 SECTION 4.5
	 	 Limitation of Liability
	  	 	5	  
	 SECTION 4.6
	 	 Compensation and Reimbursement; Indemnification
	  	 	8	  
	 SECTION 4.7
	 	 Resignation
	  	 	9	  
	 SECTION 4.8
	 	 Merger or Consolidation of Delaware Trustee.
	  	 	9	  
	 SECTION 4.9
	 	 Appointment of Co-Trustee or Separate Trustee.
	  	 	9	  
	 SECTION 4.10
	 	 Representations and Warranties of Delaware Trustee
	  	 	9	  
	 SECTION 4.11
	 	 Reliance; Advice of Counsel
	  	 	11	  
	 SECTION 4.12
	 	 Delaware Trustee May Own Certificates
	  	 	11	  
			
	ARTICLE V.	 	REPRESENTATION AND WARRANTIES OF THE BOND ISSUERS	  	 	12	  
	 SECTION 5.1
	 	 Representations and Warranties of Bond Issuers
	  	 	12	  
			
	 ARTICLE VI.
	 	TERMINATION OF DECLARATION	  	 	12	  
	 SECTION 6.1
	 	 Termination of the Trust
	  	 	12	  
			
	ARTICLE VII.	 	MISCELLANEOUS	  	 	13	  
	 SECTION 7.1
	 	 No Legal Title to Trust Property
	  	 	13	  
	 SECTION 7.2
	 	 Limitations on Rights of Others
	  	 	13	  
	 SECTION 7.3
	 	 Notices
	  	 	13	  
	 SECTION 7.4
	 	 Severability
	  	 	15	  
	 SECTION 7.5
	 	 Amendments Without Consent of Holders
	  	 	15	  
	 SECTION 7.6
	 	 Amendments With Consent of Holders
	  	 	15	  
	 SECTION 7.7
	 	 Form of Amendments
	  	 	16	  
	 SECTION 7.8
	 	 Counterparts
	  	 	16	  
	 SECTION 7.9
	 	 Successors
	  	 	16	  
	 SECTION 7.10
	 	 No Petition Covenant
	  	 	16	  
	 SECTION 7.11
	 	 Headings
	  	 	16	  
	 SECTION 7.12
	 	 Governing Law
	  	 	17	  

  
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 THIS AMENDED AND RESTATED DECLARATION OF TRUST dated and effective as of
[    ], 2013 (as further amended or restated from time to time, the “Declaration”), by the Bond Issuers (as defined below), acting jointly hereunder as settlors, U.S. Bank Trust National Association, a national
banking association, acting hereunder not in its individual or corporate capacity but solely as trustee under the laws of the State of Delaware (the “Delaware Trustee”), and The Cleveland Electric Illuminating Company, an Ohio
corporation (“CEI”), Ohio Edison Company, an Ohio corporation (“OE”), and The Toledo Edison Company, an Ohio corporation (“TE”), as administrative trustees of the Trust (each an
“Administrative Trustee” and collectively with the Delaware Trustee, the “Trustees”). 

RECITALS: 

WHEREAS, pursuant to the Ohio Revised Code, Section 4928.23 though 4928.2318 (the “Statute”) an electric
distribution utility in the state of Ohio may obtain from the Public Utilities Commission of Ohio (the “PUCO”) a financing order (as defined in the Statute) permitting such utility to recover uncollected phase-in costs (as
contemplated by the Statute) through the issuance of phase-in-recovery bonds (as defined in the Statute). 
 WHEREAS, CEI, OE
and TE have applied for and received a financing order (as defined in the Statute) from the PUCO, have formed the Bond Issuers to issue phase-in-recovery bonds and have requested the Bond Issuers to form a special purpose trust to hold the bonds
issued by the Bond Issuers and to issue pass-through trust certificates. 
 WHEREAS, the trust was created on
[        ], 2013 as a Delaware statutory trust pursuant to a Declaration of Trust and a Certificate of Trust filed with the Delaware Secretary of State. The trust continued hereby (the
“Trust”) shall constitute a special purpose trust empowered to issue one or more Tranches (as defined in the Certificate Indenture (as defined below)) of certificates constituting FirstEnergy Ohio PIRB Special Purpose Trust 2013
pass-through trust certificates (the “Certificates”). All such Certificates shall be issued pursuant to a certificate indenture (the “Certificate Indenture”), by and among the Trust and a trustee (the
“Certificate Trustee”), initially designated as U.S. Bank National Association and each Tranche of Certificates shall represent fractional undivided beneficial interests in the following bonds: (i) CEI Funding LLC
phase-in-recovery bonds (the “CEI Bonds”) issued by CEI Funding LLC, a special purpose limited liability company (the “CEI Bond Issuer”), (ii) OE Funding LLC phase-in-recovery bonds (the “OE
Bonds”) issued by OE Funding LLC, a special purpose limited liability company the (“OE Bond Issuer”), and (iii) TE Funding LLC phase-in-recovery bonds (the “TE Bonds”) issued by TE Funding LLC, a
special purpose limited liability company (the “TE Bond Issuer” and collectively with the CEI Bond Issuer and OE Bond Issuer, the “Bond Issuers”). The CEI Bonds, OE Bonds and TE Bonds are collectively referred to as
the “Bonds.” The Certificate Indenture and this Declaration shall together constitute the governing instrument of the Trust. The Trust shall purchase the Bonds from each Bond Issuer pursuant to a bond purchase agreement (each, a
“Bond Purchase Agreement”) relating to the respective Bonds. The Bonds of each Bond Issuer will be issued pursuant to an indenture (each, a “Bond Indenture”), by and between such Bond Issuer and a trustee (the
“Bond Trustee”) initially designated for each Bond Indenture as U.S. Bank National Association and secured by a pledge of and lien upon phase-in-recovery property (as defined in the Statute) in the case of (i) the Bond
Indenture for the CEI Bond Issuer, purchased by the CEI Bond Issuer from CEI together with substantially all other assets of the CEI Bond Issuer, (ii) the Bond Indenture for the OE Bond Issuer, purchased by the OE Bond Issuer from OE together
with substantially all other assets of the OE Bond Issuer, and (iii) the Bond Indenture for the TE Bond Issuer, purchased by the TE Bond Issuer from TE together with substantially all other assets of the TE Bond Issuer. CEI will service the
phase-in-recovery property purchased by the CEI Bond Issuer for the benefit of the CEI Bond Issuer pursuant to a phase-in-recovery property servicing agreement (the “CEI Servicing Agreement”), between CEI as servicer (in such
capacity, together with any successor servicer, the “CEI Servicer”) and the CEI Bond 

  
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Issuer. OE will service phase-in-recovery property purchased by the OE Bond Issuer for the benefit of the OE Bond Issuer pursuant to a phase-in-recovery property servicing agreement (the
“OE Servicing Agreement”) between OE as servicer (in such capacity, together with any successor servicer, the “OE Servicer”) and the OE Bond Issuer. TE will service the phase-in-recovery property purchased by the TE
Bond Issuer for the benefit of the TE Bond Issuer pursuant to a phase-in-recovery property servicing agreement (the “TE Servicing Agreement”) between TE as servicer (in such capacity, together with any successor servicer, the
“TE Servicer”) and the TE Bond Issuer. The CEI Servicing Agreement, OE Servicing Agreement and TE Servicing Agreement are collectively referred to as the “Servicing Agreements” and the CEI Servicer, OE Servicer and
TE Servicer are collectively referred to as the “Servicers.” 
 WHEREAS, this Declaration, the Certificate
Indenture, the Bond Purchase Agreements, the Bond Indentures, the Servicing Agreements, the Fee and Indemnity Agreement (defined below), the Phase-In-Recovery Property Purchase and Sale Agreements between (i) CEI, as seller, and the CEI Bond
Issuer, (ii) OE, as seller, and the OE Bond Issuer, and (iii) TE, as seller, and the TE Bond Issuer relating to the purchase and sale of phase-in-recovery property, the Administration Agreements between (x) CEI, as administrator, and
the CEI Bond Issuer, (y) OE, as administrator, and the OE Bond Issuer, and (z) TE, as administrator, and the TE Bond Issuer (each of CEI, OE and TE, in their respective capacity as administrator, collectively, the
“Administrators”), the Underwriting Agreement among the Bond Issuers, CEI, OE, TE, the Trust and the underwriters named therein, relating to the underwriting of the Certificates and the DTC Agreement (as defined in the Certificate
Indenture), are herein collectively referred to as the “Basic Documents.” 
 NOW, THEREFORE, in consideration
of the premises and the mutual covenants herein contained, the parties hereto agree as follows: 
 ARTICLE I. DEFINITIONS AND
INCORPORATION BY REFERENCE 
 SECTION 1.1 Definitions. All references herein to the “Declaration” or
this “Declaration” are to this Amended and Restated Declaration of Trust, all references herein to the “Trust” are to the trust continued hereunder, and all references herein to Articles, Sections, subsections, Schedules and
Exhibits are to Articles, Sections, subsections, Schedules and Exhibits of this Declaration, unless otherwise specified. All capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Recitals hereto.

 ARTICLE II. ORGANIZATION 
 SECTION 2.1 Creation of Trust. The Trust continued hereby shall be known as “FirstEnergy Ohio PIRB Special Purpose Trust 2013,” in which name the Delaware Trustee (only to the extent
the Delaware Trustee is expressly required herein) and each Administrative Trustee may conduct the business of the Trust, make and execute contracts and other instruments on behalf of the Trust and sue and be sued on behalf of the Trust. In
addition, each Administrative Trustee may conduct the business of the Trust in its own name, as trustee hereunder, to the extent deemed necessary or appropriate by such Administrative Trustee, in its sole discretion; provided, that such
Administrative Trustee may rely conclusively upon an opinion of counsel as to whether any proposed action is necessary or appropriate. It is the intention that the Trust shall constitute a statutory trust under the Delaware Statutory Trust Act
(being Chapter 38 of Title 12 of the Delaware Code, 12 Del. C., § 3801 et seq., as the same may be amended from time to time and any successor statute) (the “Statutory Trust Act”), that the Certificate Indenture
shall be deemed a part of this Declaration and that this Declaration (together with the Certificate Indenture) shall constitute the governing instrument of the Trust. To the extent that the provisions of this Declaration and the Certificate
Indenture conflict with respect to the issuance of the Certificates and the rights of the holders thereof, the Certificate Indenture shall control. The Delaware Trustee filed the Certificate of Trust, 

  
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substantially in the form attached hereto as Exhibit A, pursuant to § 3810 et seq. of the Statutory Trust Act in connection with the creation of the Trust as a statutory trust
under the Statutory Trust Act. The fiscal year of the Trust shall be the calendar year. 
 SECTION 2.2 Situs of the
Trust. The Trust shall be located in Delaware and administered in Delaware, Illinois, New York or such other location as is acceptable to the Bond Issuers. The office of the Trust shall be in care of the Delaware Trustee at the corporate trust
office (the “Office”) at 300 Delaware Avenue, 9th Floor, Wilmington, DE 19801 (although any notice, direction, consent or waiver given to the Delaware Trustee hereunder shall also be given in care of the address set forth in
Section 7.3(a) hereof), which Office shall be located in Delaware, or at such other address in Delaware as the Delaware Trustee may designate by written notice to the Certificate Trustee, the Bond Issuers, the Bond Trustees, the Servicers, and
the holders of the Certificates. The Trust shall not have any employees in any state [other than Delaware]; provided, however, that nothing herein shall restrict or prohibit the Delaware Trustee or the Certificate Trustee (each in its
individual capacity but not as Delaware Trustee or Certificate Trustee, as applicable) from having employees within or outside of the State of Delaware. 
 SECTION 2.3 Purposes and Powers. 
 (a) The Trust is constituted solely
for the purpose of acquiring and holding the Bonds and issuing the Certificates, applying the proceeds of the Certificates to purchase the Bonds from each Bond Issuer and entering into and performing its obligations under each of the Basic Documents
to which it may be a party (which functions the Administrative Trustees or the Delaware Trustee (only to the extent the Delaware Trustee is expressly required herein) shall perform or cause to be performed on behalf of the Trust), and, except as set
forth herein, the Trust (and any Person acting on behalf of the Trust) is not authorized or empowered to acquire any other investments or engage in any other activities on behalf of the Trust and, in particular, neither Trustee is authorized or
empowered to do anything that would cause the Trust to fail to qualify as a “grantor trust” for federal income tax purposes. 
 (b) The Trustees shall have all rights and powers set forth herein and, to the extent not inconsistent herewith, in the Statutory Trust Act with respect to accomplishing the purposes of the Trust.

 SECTION 2.4 Trust Property. 
 (a) The Bond Issuers assigned, transferred, conveyed and set over to the Delaware Trustee on behalf of the Trust the sum of $1.00. The Delaware Trustee previously acknowledged receipt of such amount in
trust from the Bond Issuers, which amount constituted the initial trust property. 
 (b) Upon issuance of the Certificates and
purchase of the Bonds from each Bond Issuer, the holders of the Certificates shall become the sole and exclusive beneficial owners of the Trust estate established hereby. In accordance with Section 3805(e) of the Statutory Trust Act and subject
to the terms and conditions of the Certificate Indenture, at the time that a holder of a Certificate becomes entitled to receive a distribution from the Trust, it has the status of, and is entitled to all remedies available to, a creditor of a
statutory trust with respect to the distribution. The Delaware Trustee hereby declares that it shall hold the Bonds of each Bond Issuer, the security interest in the phase-in-recovery property (as defined in the Statute) securing the Bonds of each
Bond Issuer, and all other property constituting Trust Property (as defined in the Certificate Indenture) in trust as herein provided for the benefit of the holders of the Certificates, subject to the rights of such holders under the Certificate
Indenture, from and after such date until termination of the Trust as herein provided, or under the Basic Documents. 
 (c)
Legal title to the Trust Property shall be vested at all times in the Trust as a separate legal entity except where applicable law in any jurisdiction requires title to any part of the Trust Property to be

  
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vested in a trustee or trustees, in which case title shall be deemed to be vested in the Delaware Trustee, a co-trustee and/or a separate trustee, as the case may be. 

SECTION 2.5 Issuance of Certificates. The Trust shall execute and deliver the Certificates in accordance with, and only upon
satisfaction of the terms of, the Certificate Indenture. Each Certificate shall represent a fractional undivided beneficial interest in the bonds of each Bond Issuer and the other Trust Property, and shall be issued in accordance with the terms of
the Certificate Indenture. 
 SECTION 2.6 Organizational Expenses. The Delaware Trustee shall be reimbursed, but
solely from amounts payable by the Bond Issuers under a fee and indemnity agreement dated as of [ ], 2013 among the Bond Issuers, the Certificate Trustee, the Delaware Trustee, and the Trust (the “Fee and Indemnity Agreement”), for
organizational expenses of the Trust as they may arise. No Trustee shall have recourse against the Bonds or the payments thereon and proceeds thereof, for the reimbursement of such expenses. 

SECTION 2.7 Independent Status. The Trust and each of the Bond Issuers each covenant and agree to hold itself out to the
public under its own name as a separate and distinct entity and will each conduct its business so as not to mislead others as to its identity. The Trust (and the Administrative Trustees on behalf of the Trust) shall cause those financial statements
and other records required by law, or otherwise required, to be prepared and maintained separate and apart from those of the Bond Issuers. 
 SECTION 2.8 Tax Treatment; Construction. 
 (a) It is the intention
that the Trust shall be treated as a “grantor trust” for federal income tax purposes and all transactions contemplated by this Declaration will be reported consistently with such treatment. 

(b) The provisions of this Declaration shall be construed, and the affairs of the Trust shall be conducted, so as to achieve treatment of
the Trust as a “grantor trust” for federal income tax purposes. Accordingly, notwithstanding any other provision hereof to the contrary, this Declaration, along with the Certificate Indenture, shall be construed to establish one or more
Tranches of beneficial interests of Certificates, with each such Tranche of the Trust representing undivided beneficial interests in the assets of the Trust and facilitating the direct investment in such assets by the holders of such Tranche of
Certificates. The assets of the Trust shall consist of the Bonds of each Bond Issuer and other property described in this Declaration (including by reference to the Certificate Indenture), and the Trustees shall have no power hereunder to vary the
investment of the holders of any such Tranche of Certificates. 
 ARTICLE III. DELIVERY OF CERTAIN DOCUMENTS 

SECTION 3.1 Documents Relating to Issuance of Certificates. The Delaware Trustee is hereby directed to execute and deliver on
behalf of the Trust from time to time and as instructed in writing by the Bond Issuers, all Basic Documents to which the Trust may be a party, including the Certificate Indenture, the Certificates (including any Certificates issued upon transfer or
exchange or as replacement Certificates in accordance with the Certificate Indenture), the Bond Purchase Agreements, the Fee and Indemnity Agreement and the Underwriting Agreement, and any amendment or supplement to any of the foregoing, and each
Administrative Trustee is hereby directed to execute and deliver on behalf of the Trust from time to time and as instructed in writing by the Bond Issuers all other documents and instruments as may be necessary or desirable to issue the Certificates
pursuant to the provisions of the Certificate Indenture and to purchase the Bonds pursuant to the Bond Purchase Agreements, and any 

  
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amendment or supplement to any of the foregoing; provided that in the case of the execution and delivery of any amendment or supplement to a document or instrument by the Delaware Trustee
and each Administrative Trustee, such Trustee shall be obligated only to execute and deliver any such amendment or supplement in such form as the Bond Issuers shall approve, as evidenced conclusively by the presentation of such amendment or
supplement by the Bond Issuers to the applicable Trustee or Trustees for execution and delivery thereof on behalf of the Trust. 

SECTION 3.2 Residual Matters. To the extent the Trust is required to take any actions that are incidental to, contemplated by
or in furtherance of its purpose set forth in Section 2.3 hereof, which actions are not otherwise contemplated or addressed by this Declaration, or the Bond Issuers otherwise deem such actions to be necessary or advisable and in the best
interests of the Certificate holders, each Administrative Trustee is hereby authorized to cause the Trust to take such actions. 

ARTICLE IV. THE TRUSTEES 
 SECTION 4.1 Appointment. For valuable consideration received, it is mutually covenanted and agreed that (a) the Delaware Trustee has been, and by this document is, appointed to serve as
the trustee of the Trust in the State of Delaware pursuant to Section 3807 of the Statutory Trust Act and (b) each Administrative Trustee is hereby appointed to serve as a trustee of the Trust. 

SECTION 4.2 Duties and Responsibilities. It is understood and agreed that, the duties and responsibilities of: (a) the
Delaware Trustee shall be limited to (i) executing and delivering on behalf of the Trust all Basic Documents to which the Trust or the Delaware Trustee may be a party, and any amendments or supplements to the foregoing, (ii) accepting
legal process served on the Trust in the State of Delaware, (iii) the execution and delivery of all certifications required to be filed with the Secretary of State of the State of Delaware in order to form, maintain and terminate the existence
of the Trust under the Statutory Trust Act as instructed by the Bond Issuers, and (iv) the taking of only such other actions as are specifically assigned to it by this Declaration; and (b) each Administrative Trustee shall be limited to
(i) executing and delivering on behalf of the Trust all other documents and instruments not specifically required to be executed and delivered by the Delaware Trustee as may be necessary or desirable to issue the Certificates pursuant to the
provisions of the Certificate Indenture and to purchase the Bonds pursuant to the Bond Purchase Agreements, and any amendments or supplements to the foregoing and (ii) the taking of only such other actions as are specifically assigned to it by
this Declaration, including the matters contemplated by Section 3.2 hereof. No implied covenants or obligations shall be read into this Declaration against any Trustee. No Trustee nor any of its respective officers, directors, employees, agents
or affiliates shall have any implied duties (including law fiduciary duties) or liabilities otherwise existing at law or in equity with respect to the Trust, which implied duties and liabilities are hereby eliminated. The permissive right of the
Trustees to take any action hereunder or under any other Basic Document shall not be construed as a duty. 
 SECTION 4.3
Prohibited Actions. Except as otherwise expressed herein and as permitted under the Basic Documents, the Trustees shall not (i) take any action with respect to any election by the Trust to file an amendment to this Declaration,
(ii) amend, change, modify or terminate any Basic Document, or (iii) sell the Bonds of any Bond Issuer, any other Trust Property or any interest therein. 
 SECTION 4.4 Acceptance of the Trusts. By the execution hereof, the Trustees accept the trusts created hereinabove. 
 SECTION 4.5 Limitation of Liability. Except as otherwise expressly required by this Declaration and except for its own willful misconduct or negligence in the performance of its specified
duties under this Declaration, no Trustee shall have any duty or liability with respect to the administration 

  
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of the Trust, the investment of the Trust’s property or the payment of dividends or other distributions of income or principal to the holders of the Certificates. No Trustee shall be liable
for the acts or omissions of the Certificate Trustee nor shall any Trustee be liable for supervising or monitoring the performance of the duties and obligations of the Trust, the Certificate Trustee, any other Trustee, the Servicers, any document
custodian or any other Person hereunder or under any Basic Document or otherwise. No Trustee shall be personally liable under any circumstances, except for its own willful misconduct or negligence. In particular, but not by way of limitation:

 (a) the Delaware Trustee shall not be personally liable for any error of judgment made in good faith by any officer within
the corporate trust department of the Delaware Trustee who has been assigned to perform or provide trustee functions or services on behalf of the Trust nor shall any Administrative Trustee be personally liable for any error of judgment made in good
faith by any of its officers, employees or agents who have been assigned to perform or provide trustee functions or services on behalf of the Trust; 
 (b) no provision of this Declaration shall require any Trustee to expend or risk its personal funds or otherwise incur any financial liability in the performance of its rights or powers hereunder, if such
Trustee shall have reasonable grounds for believing that repayment of such funds or indemnity satisfactory to it against such risk or liability is not reasonably assured or provided to it; 

(c) it is expressly understood and agreed by the parties hereto that (i) each of the representations, undertakings and agreements
herein made on the part of the Trust is made and intended not as personal representations, undertakings and agreements by U.S. Bank Trust National Association, CEI, OE or TE, but is made and intended for the purpose of binding only the Trust,
(ii) nothing herein contained shall be construed as creating any liability of U.S. Bank Trust National Association, CEI, OE or TE, individually or personally, to perform any covenant of the Trust either expressed or implied contained herein,
all such liability, if any, deemed waived by the parties who are signatories to this Declaration and by any person or entity (each, a “Person”) claiming by, through or under such parties and (iii) under no circumstances shall U.S.
Bank Trust National Association, CEI, OE or TE be personally liable for the payment of any indebtedness or expenses of the Trust (other than expenses subject to reimbursement as contemplated by Section 2.6 above), or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by or on behalf of the Trust under this Declaration; 
 (d) the Trustees shall not be personally responsible for the validity or sufficiency of this Declaration or the Certificates or for the due execution hereof by the Bond Issuers or for the form, character,
genuineness, sufficiency, value or validity of any of the Trust Property; 
 (e) in the exercise or administration of the trusts
hereunder, each Trustee (i) may act directly or through agents (including affiliates), attorneys, custodians or nominees pursuant to agreements entered into with any of them, and such Trustee shall not be liable for the default or misconduct or
supervision of such agents, attorneys, custodians or nominees if such agents, attorneys, custodians or nominees shall have been selected by such Trustee in good faith and (ii) may, at the expense of the Bond Issuers, consult with attorneys,
accountants and other skilled Persons to be selected in good faith and employed by it, and it shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such attorneys, accountants
or other skilled Persons; 
 (f) except as expressly provided in this Section 4.5, in accepting and performing the trusts
hereby created, each Trustee acts solely as trustee for the Trust and not in its individual capacity, and all Persons having any claim against any Trustee by reason of the transactions contemplated by this Declaration shall look only to the
Trust’s property for payment or satisfaction thereof; 

  
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 (g) the Delaware Trustee’s sole duty with respect to the custody, safekeeping and
physical preservation of the Trust Property shall be to deal with such property in a manner similar to the manner in which the Delaware Trustee deals with similar property for its own account, subject to the protections and limitations on liability
afforded to the Delaware Trustee under this Declaration; 
 (h) the Delaware Trustee has not prepared or verified, and shall not
be responsible or liable for, any information, disclosure or other statement in any disclosure or offering document or in any other document issued or delivered in connection with the sale or transfer of the Certificates or the Bonds; 

(i) the Trustees shall have no duty or liability for or with respect to the value, genuineness, existence or sufficiency of the Trust
Property or the payment of any taxes or assessments levied thereon or in connection therewith; 
 (j) the Delaware Trustee shall
not be liable for any interest on any moneys received by it on behalf of the Trust, except as the Delaware Trustee may otherwise agree with the Bond Issuers in writing; 
 (k) moneys held by the Delaware Trustee on behalf of the Trust need not be segregated from other moneys except as the Delaware Trustee may otherwise agree with the Bond Issuers or as otherwise required by
law; 
 (l) no Trustee shall be under any obligation to exercise any of the rights or powers vested in it by this Declaration,
or to institute, conduct or defend any litigation under this Declaration or otherwise in relation to the Trust, this Declaration or any Basic Document, at the request or direction of any of the Bond Issuers, the Certificateholders, the Settlors, any
other Trustee or any other Person, unless such Persons have offered to such Trustee and, in the case of the Delaware Trustee, U.S. Bank Trust National Association, security or indemnity satisfactory to it against the costs, expenses (including
reasonable legal fees and expenses) and liabilities that might be incurred by such Trustee or U.S. Bank Trust National Association, as the case may be, in compliance with such request or direction. The right of any Trustee to perform any
discretionary act enumerated in this Declaration or in any Basic Document shall not be construed as a duty, and such Trustee shall not be answerable or personally liable to any Person for any such act other than liability to the Trust and the
beneficial owners for its own negligence or willful misconduct in the performance in any such act; 
 (m) no Trustee shall be
bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, entitlement order, approval or other paper or document; 

(n)(i) the Delaware Trustee shall not be deemed to have knowledge of any fact or event unless an officer in the corporate trust office of
the Delaware Trustee having direct responsibility for administration of the Declaration (a “Responsible Officer”) has actual knowledge thereof or unless written notice of such fact or event is received by a Responsible Officer and such
notice references the fact or event and (ii) no Administrative Trustee shall be deemed to have knowledge of any fact or event unless an officer having direct responsibility for administration of the Declaration has actual knowledge thereof or
unless written notice of such fact or event is received by such an officer and such notice references the fact or event; 
 (o)
each of the parties hereto hereby agrees and, as evidenced by its acceptance of any benefits hereunder, any Certificateholder agrees that neither Trustee, in any capacity (x) has provided or will provide in the future, any advice, counsel or
opinion regarding the tax, financial, investment, securities 

  
 7 

 
law or insurance implications and consequences of the formation, funding and ongoing administration of the Trust, and (y) has made any investigation as to the accuracy of any
representations, warranties or other obligations of the Trust under the Basic Documents; and 
 (p) each Trustee shall have the
right at any time to seek instructions concerning the administration of the Trust, or from any court of competent jurisdiction. Each Trustee shall take such action or refrain from taking such action under this Declaration as it may be directed in
writing by the Bond Issuers or, in the case of the Delaware Trustee, any Administrative Trustee ( in each case, an “Instructing Party”) from time to time; provided, however, that such Trustee shall not be required to
take or refrain from taking any such action if it shall have determined, or shall have been advised by counsel, that such performance is likely to involve such Trustee in personal liability or is contrary to the terms of this Declaration or of any
document contemplated hereby to which the Trust is a party or is otherwise contrary to law. If at any time such Trustee determines that it requires or desires guidance regarding the application of any provision of this Declaration or any other
document, then such Trustee may deliver a notice to an Instructing Party requesting written instructions as to the course of action desired by such Instructing Party and such instructions shall constitute full and complete authorization and
protection for actions taken by such Trustee in reliance thereon. If such Trustee does not receive such instructions within five (5) Business Days after it has delivered to such Instructing Party such notice requesting instructions, or such
shorter period of time as may be set forth in such notice, it shall refrain from taking any action with respect to the matters described in such notice. Each instruction delivered by an Instructing Party to such Trustee shall certify to such Trustee
that any actions to be taken pursuant to such instruction comply with the terms of this Declaration and such Trustee may rely on such certification and instruction without inquiry except to the extent it has actual knowledge to the contrary.

 SECTION 4.6 Compensation and Reimbursement; Indemnification. 

(a) Pursuant to the Fee and Indemnity Agreement, each Bond Issuer has agreed to pay, or cause to be paid, to the Delaware Trustee from
time to time compensation for its services and to reimburse it for its reasonable expenses hereunder. The Delaware Trustee shall have no recourse against the Bonds of any Bond Issuer, the payments received thereon or the proceeds therefrom, for the
payment of such compensation or for the reimbursement of such expenses. 
 (b) Pursuant to the Fee and Indemnity Agreement, each
Bond Issuer has agreed to indemnify, defend and hold harmless the Delaware Trustee and any of the affiliates, officers, directors, employees and agents of the Delaware Trustee (the “Delaware Trustee Indemnified Persons”) from and
against any and all losses, claims, actions, suits, taxes, damages, costs, expenses (including the reasonable fees and expenses of its counsel) and liabilities (including liabilities under state or federal securities laws) of any kind and nature
whatsoever (collectively, “Delaware Trustee Expenses”), to the extent that such Delaware Trustee Expenses arise out of or are imposed upon or asserted against such Delaware Trustee Indemnified Persons with respect to the creation,
operation or termination of the Trust, the execution, delivery or performance of this Declaration or the transactions contemplated hereby; provided, however, that no Bond Issuer is, nor shall it be, required to indemnify any Delaware
Trustee Indemnified Person for any Delaware Trustee Expenses that result from the willful misconduct or negligence of such Delaware Trustee Indemnified Person. Pursuant to the Fee and Indemnity Agreement, the obligations of the Bond Issuers to
indemnify the Delaware Trustee Indemnified Persons shall survive the termination of this Declaration and the resignation or removal of the Delaware Trustee. The Delaware Trustee is hereby authorized to execute the Fee and Indemnity Agreement on
behalf of the Trust and to enforce the terms thereof on its own behalf and on behalf of the Trust. 
 (c) Notwithstanding
anything to the contrary in this Declaration, the Delaware Trustee shall have no recourse against the Bonds of any Bond Issuer or the payments thereon and proceeds thereof, for payment of any amounts required to be paid to the Delaware Trustee under
the Fee and Indemnity Agreement. Each Bond Issuer’s 

  
 8 

 
obligations to make payments of such amounts to any Trustee shall be subject to the priorities and Cap (as defined in the Bond Indenture) set forth in Section 8.02(e) of its Bond Indenture.

 SECTION 4.7 Resignation. Any Trustee may resign upon 30 days’ prior written notice to the Certificate
Trustee, the Bond Issuers, the other Trustees and the Trust; provided, however, that a successor Delaware Trustee or Administrative Trustee, as the case may be, satisfactory to the Bond Issuers shall have been appointed and agreed to
serve. If a successor Delaware Trustee or Administrative Trustee, as the case may be, shall not have been appointed by the Bond Issuers within such 30-day period, the Delaware Trustee or Administrative Trustees may apply to the Court of Chancery of
the State of Delaware for the appointment of a successor Delaware Trustee or Administrative Trustee, as the case may be. Any successor Delaware Trustee must satisfy the requirement of Section 3807(a) of the Statutory Trust Act. 

SECTION 4.8 Merger or Consolidation of Delaware Trustee. Any Person into which the Delaware Trustee may be merged or with
which it may be consolidated, or any Person resulting from any merger or consolidation to which the Delaware Trustee shall be a party, or any Person which succeeds to all or substantially all of the corporate trust business of the Delaware Trustee,
shall be the successor Delaware Trustee under this Agreement without the execution, delivery or filing of any paper or instrument or further act to be done on the part of the parties hereto (except for the filing at the expense of the Trust of an
amendment to the Trust’s certificate of trust if required by law), notwithstanding anything to the contrary herein; provided, however, that such successor Delaware Trustee shall satisfy the requirement of Section 3807(a) of
the Statutory Trust Act. 
 SECTION 4.9 Appointment of Co-Trustee or Separate Trustee. 

(a) Whenever (i) it shall be deemed necessary or prudent in order either to conform to any law of any jurisdiction in which all or
any part of the Trust Property shall be situated or to make any claim or bring any suit with respect to the Trust Estate or (ii) the Delaware Trustee shall be advised by counsel that it is necessary or prudent, the Delaware Trustee shall
execute and deliver an agreement supplemental hereto and any other required supplemental instruments and agreements, and shall take all other actions necessary or proper to appoint one or more Persons either as co-trustee or co-trustees jointly with
the Delaware Trustee of all or any part of the Trust Property, or as separate trustee or separate trustees of all or any part of the Trust Estate, and to vest in such Person or Persons, in such capacity, such title to the Trust Estate or any part
thereof and such rights or duties as may be necessary or desirable, all for such period and under such terms and conditions as are satisfactory to the Delaware Trustee. No co-trustee or separate trustee shall be required to meet the terms of
eligibility as a successor Delaware Trustee pursuant to Section 4.7. If any co-trustee or separate trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Delaware Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. All rights, powers, duties and obligations conferred or imposed upon the Delaware Trustee shall be conferred or
imposed upon and exercised or performed by the Delaware Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Delaware Trustee joining in
such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the Delaware Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers,
duties and obligations (including the holding of title to the Trust Property or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Delaware
Trustee; 
 SECTION 4.10 Representations and Warranties of the Trustees. (a) The Delaware Trustee hereby
represents and warrants to each other party hereto as follows: 

  
 9 

 (i) It is a national association duly organized, validly existing and in
good standing under the laws of the United States; 
 (ii) It has full power, authority and legal right to
execute, deliver and perform this Declaration, and has taken all necessary action to authorize the execution, delivery and performance by it of this Declaration; 

(iii) The execution, delivery and performance of this Declaration by the Delaware Trustee (A) do not violate any
requirement of federal law or the law of the State of Delaware governing its banking and trust powers or any order, writ, judgment or decree of any court, arbitrator or governmental authority applicable to it or any of its assets, (B) do not
violate any provision of its charter or bylaws, and (C) do not violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in the creation or imposition of any Lien on any properties included in
the Trust pursuant to the provisions of any mortgage, indenture, contract, agreement or other undertaking to which it is a party, which violation, default or lien could reasonably be expected to have a materially adverse effect on its performance or
its ability to perform its duties as Delaware Trustee under this Declaration or on the transactions contemplated by this Declaration; 
 (iv) The execution, delivery and performance of this Declaration by the Delaware Trustee shall not require the authorization, consent or approval of, the giving of notice to, the filing or registration
with, or the taking of any other action in respect of, any governmental authority or agency regulating the banking and corporate trust activities of banks or trust companies in the jurisdiction in which the Trust was formed (except for the filing of
the Certificate of Trust with the Secretary of State of the State of Delaware); and 
 (v) This Declaration has
been duly executed and delivered by the Delaware Trustee and, assuming due authorization, execution and delivery hereof by the other parties hereto, constitutes the legal, valid and binding agreement of it, enforceable against it in accordance with
the terms of this Declaration, except as enforceability may be limited by bankruptcy, insolvency, reorganization, and other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless
of whether such enforceability is considered in a proceeding in equity or at law. 
 (b) Each Administrative Trustee hereby
represents and warrants to each other party hereto as follows: 
 (i) It is a corporation duly organized, validly
existing and in good standing under the laws of the State of Ohio; 
 (ii) It has full power, authority and legal
right to execute, deliver and perform this Declaration, and has taken all necessary action to authorize the execution, delivery and performance by it of this Declaration; 

(iii) The execution, delivery and performance of this Declaration by such Administrative Trustee (A) do not violate
any requirement of federal law or the law of the State of Ohio governing it or any order, writ, judgment or decree of any court, arbitrator or governmental authority applicable to it or any of its assets, (B) do not violate any provision of its
charter or bylaws, and (C) do not violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in the creation or imposition of any Lien on any properties pursuant to the provisions of any
mortgage, indenture, contract, agreement or other undertaking to 

  
 10 

 
which it is a party, which violation, default or lien could reasonably be expected to have a materially adverse effect on its performance or its ability to perform its duties as Administrative
Trustee under this Declaration or on the transactions contemplated by this Declaration; 
 (iv) The execution,
delivery and performance of this Declaration by such Administrative Trustee shall not require the authorization, consent or approval of, the giving of notice to, the filing or registration with, or the taking of any other action in respect of, any
governmental authority or agency having jurisdiction over it or its properties, except such as have been given or obtained; and 
 (v) This Declaration has been duly executed and delivered by such Administrative Trustee and, assuming due authorization, execution and delivery hereof by the other parties hereto, constitutes the legal,
valid and binding agreement of it, enforceable against it in accordance with the terms of this Declaration, except as enforceability may be limited by bankruptcy, insolvency, reorganization, and other similar laws affecting the enforcement of
creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 
 SECTION 4.11 Reliance; Advice of Counsel. 
 (a) No Trustee shall incur
liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be
signed by the proper party or parties or need investigate any fact or matter pertaining to or in any such document. Each Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any corporate or
limited liability company party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect unless and until such Trustee receives a certified copy of a resolution of such board of
directors or other governing body revoking the same. As to any fact or matter the method of the determination of which is not specifically prescribed herein, each Trustee may for all purposes hereof rely on a certificate, signed by the president or
any vice president or by the treasurer or other authorized persons of the relevant party, as to such fact or matter, and such certificate shall constitute full protection to it for any action taken or omitted to be taken by it in good faith in
reliance thereon. 
 (b) In the exercise or administration of the Trust and in the performance of its duties and obligations
under this Declaration and the Basic Documents, each Trustee: (i) may, at the expense of the Bond Issuers (to the extent provided in the Fee and Indemnity Agreement or the Servicing Agreements, as applicable) or any other party, act directly or
through its agents, attorneys, custodians or nominees (including, if necessary, the granting of a power of attorney to any of its officers not otherwise authorized to execute and deliver any Basic Document, Certificate or other document related
thereto and to take any action in connection therewith on behalf such Trustee) pursuant to agreements entered into with any of them, and such Trustee shall not be liable for the conduct or misconduct of such agents, attorneys, custodians or nominees
if such agents, attorneys, custodians or nominees shall have been selected by such Trustee with reasonable care; and (ii) may, at the expense of the Bond Issuers (to the extent provided in the Fee and Indemnity Agreement or the Servicing
Agreements, as applicable) or any other party, consult with counsel, accountants and other professionals to be selected with reasonable care by it. No Trustee shall be liable for anything done, suffered or omitted in good faith by it in accordance
with the opinion or advice of any such counsel, accountant or other such Persons reasonably relied on and which, according to such opinion or advice, is not contrary to this Declaration or any other Basic Document. 

SECTION 4.12 Delaware Trustee May Own Certificates. The Delaware Trustee in its individual or any other capacity may become
the owner or pledgee of Certificates and may deal with CEI, OE or TE, 

  
 11 

 
the Bond Issuers, the Bond Trustee, the Certificate Trustee, the Servicers, the Administrative Trustees and their respective affiliates and with the holders of the Certificates in transactions in
the same manner as the Delaware Trustee would have if it were not a trustee under this Declaration. 
 ARTICLE V.
REPRESENTATION AND WARRANTIES OF THE BOND ISSUERS 
 SECTION 5.1 Representations and Warranties of Bond
Issuers. Each Bond Issuer as a settlor of the Trust severally represents and warrants, as of the date hereof and as of the issuance date of the Certificates, as follows: 
 (a) Such Bond Issuer has full power, authority and legal right, and has taken all action necessary, to execute and deliver and perform this Declaration; 

(b) The execution, delivery and performance by such Bond Issuer of this Declaration do not and will not violate any law or regulation
applicable to it or violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in the creation or imposition of any lien on any properties included in the Trust Property pursuant to, any mortgage,
indenture, contract, agreement or other undertaking to which such Bond Issuer is a party; 
 (c) This Declaration has been duly
executed and delivered by such Bond Issuer and constitutes its legal, valid and binding obligation, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, and other similar laws
affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law; 

(d) The Trust is not required to be registered as an investment company under the Investment Company Act of 1940, as amended; and

 (e) The execution, delivery or performance of this Declaration shall not require consent, approval or authorization of any
governmental authority or any agency other than those already obtained. 
 ARTICLE VI. TERMINATION OF DECLARATION

 SECTION 6.1 Termination of the Trust. The respective obligations and responsibilities of the Bond Issuers, the
Trustees and the Trust shall terminate, and the Trust shall be dissolved and its affairs wound up, only upon the expiration of, one year and one day following the distribution to all holders of the Certificates of all amounts required to be
distributed to them pursuant to the Certificate Indenture and the disposition of all other property, if any, held as part of the Trust Property with respect to such Certificates. Upon dissolution of the Trust, the Bond Issuers shall make reasonable
provision for payment of all claims and obligations of the Trust in accordance with Section 3808 of the Statutory Trust Act and, in connection therewith, shall pay or provide for the payment of all remaining liabilities of the Trust, and the
Trustees (with respect to the Trust), but, in the case of the Delaware Trustee, solely from amounts payable by the Bond Issuers under the Fee and Indemnity Agreement, and upon completion of the winding up of the Trust, at the written instruction of
the Bond Issuers, the Delaware Trustee shall file a certificate of cancellation under the Statutory Trust Act and the Trust, shall terminate. Any fees or expenses associated with such filing payable to the Delaware Trustee shall be paid from amounts
payable by the Bond Issuers under the Fee and Indemnity Agreement. 

  
 12 

 ARTICLE VII. MISCELLANEOUS 

SECTION 7.1 No Legal Title to Trust Property. As provided in Section 2.4(c) hereof, the Bond Issuers shall not
have legal title to any part of the Trust Property. 
 SECTION 7.2 Limitations on Rights of Others. Except as
otherwise provided herein, the provisions of this Declaration are solely for the benefit of the Bond Issuers, the Delaware Trustee, the Administrative Trustees, the Certificate Trustee and the holders of the Certificates, and nothing in this
Declaration, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Trust Property or under or in respect of this Declaration or any covenants, conditions or provisions
contained herein. 
 SECTION 7.3 Notices. 
 (a) Unless otherwise specifically provided herein, all notices, directions, consents and waivers required under the terms and provisions of this Declaration shall be in English and in writing, and any
such notice, direction, consent or waiver may be given by United States mail, courier service, facsimile transmission or electronic mail (confirmed by telephone, United States mail or courier service in the case of notice by facsimile transmission
or electronic mail) or any other customary means of communication, and any such notice, direction, consent or waiver shall be effective when delivered, or if mailed, three days after deposit in the United States mail with proper postage for ordinary
mail prepaid, 
 if to the Trust, to: 
 U.S. Bank Trust National Association, 
 as Delaware Trustee for the FirstEnergy
Ohio PIRB Special Purpose Trust 2013 
 190 S. LaSalle Street, 7th Floor 

Mail Code: MK-IL-SL7R 
 Chicago, IL 60603 
 Attention: FirstEnergy Ohio PIRB Special Purpose Trust 2013

 Facsimile: 312-332-7996 
 Telephone: 312-332-7496 
 E-Mail: Melissa.Rosal@usbank.com 

with copies to the Bond Issuers at the addresses listed below. 
 if to the CEI Bond Issuer, to: 
  

					
		 	 CEI Funding LLC

		 	  

		 	  

		 	  

		 	  

		 	Attention:	 	  

		 	Facsimile:	 	  

		 	Telephone:	 	  

		 	E-Mail:	 	  

  
 13 

 if to the OE Bond Issuer, to: 

 

					
		 	OE Funding LLC
		 	  

		 	  

		 	  

		 	  

		 	Attention:	 	  

		 	Facsimile:	 	  

		 	Telephone:	 	  

		 	E-Mail:	 	  

 if to the TE Bond Issuer, to: 

 

					
		 	TE Funding LLC
		 	  

		 	  

		 	  

		 	  

		 	Attention:	 	  

		 	Facsimile:	 	  

		 	Telephone:	 	  

		 	E-Mail:	 	  

 if to the Administrative Trustees, to: 

 

									
		 	 The Cleveland Electric Illuminating Company, Ohio Edison Company and The Toledo Edison Company

		 	 76 South Main Street
	 	
		 	 Akron, OH 43038
	 	
		 	 Attention: Treasurer
	 	
		 	 Facsimile:
	 	  
	 		 	
		 	 Telephone:
	 	  
	 		 	
		 	 E-Mail:
	 	  
	 		 	

 if to the Delaware Trustee, to: 
 U.S. Bank Trust National Association, 
     as Delaware Trustee
for the FirstEnergy Ohio PIRB Special Purpose Trust 2013 
 190 S. LaSalle Street, 7th FloorMail Code: MK-IL-SL7R 

Chicago, IL 60603 

Attention: FirstEnergy Ohio PIRB Special Purpose Trust 2013 
 Facsimile: 312-332-7996 
 Telephone: 312-332-7496 

E-Mail: Melissa.Rosal@usbank.com 
 (b) The Trust, the Bond Issuers, the Administrative Trustees or the Delaware Trustee, by notice to the others, may designate additional or different addresses for subsequent notices or communications.

  
 14 

 (c) If a notice or communication is mailed in the manner provided above within the time
prescribed, it is conclusively presumed to have been duly given, whether or not the addressee receives it. 
 SECTION 7.4
Severability. If any one or more of the covenants, agreements, provisions or terms of this Declaration shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Declaration and shall in no way affect the validity or enforceability of the other provisions of this Declaration. 
 SECTION 7.5 Amendments Without Consent of Holders. Notwithstanding any provision of this Declaration other than Section 7.7(e) hereof, including Section 7.6 hereof, this Declaration may
be amended by the Delaware Trustee, the Administrative Trustees and the Bond Issuers without the consent of any of the holders of the Certificates or any other Person (and with prior notice to the rating agencies named in the Certificate Indenture)
to (i) cure any ambiguity; (ii) correct or supplement any provision in this Declaration that may be defective or inconsistent with any other provision in this Declaration; (iii) add to the covenants, restrictions or obligations of the
Delaware Trustee or the Administrative Trustees for the benefit of the holders of the Certificates; (iv) evidence and provide for the acceptance of the appointment of a successor trustee with respect to the Trust Property and add to or change
any provisions as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee; or (v) add, change or eliminate any other provision of this Declaration in any manner that shall not, as evidenced by an
opinion of counsel addressed to the Bond Issuers, the Delaware Trustee, the Administrative Trustees and the Certificate Trustee, adversely affect in any material respect the powers, preferences or special rights of the holders of the Certificates;
provided, however, that this Declaration shall not be amended in any manner which (i) would cause the Trust to be characterized as other than a “grantor trust” for federal income tax purposes or (ii) would affect
the rights of the Bond Issuers hereunder or under the Basic Documents without the prior written consent of the Bond Issuers or receipt of an opinion of counsel addressed to the Bond Issuers, the Delaware Trustee, the Administrative Trustees and the
Certificate Trustee to the effect that such amendment does not adversely affect, in any manner, the interests of the Bond Issuers under this Declaration or the Basic Documents. After the execution of any such amendment, the Delaware Trustee shall
furnish a copy thereof to the rating agencies named in the Certificate Indenture. 
 SECTION 7.6 Amendments With Consent
of Holders. Subject to Section 7.7(e) hereof, this Declaration may be amended from time to time by the Delaware Trustee, the Administrative Trustees and the Bond Issuers with the consent of the Certificate Trustee (acting at the instruction of
the holders of Certificates whose Certificates evidence not less than a majority of the outstanding principal amount of each affected Tranche of the Certificates as of the close of business on the preceding Certificate payment date) (which consent,
whether given pursuant to this Section 7.6 or pursuant to any other provision of this Declaration or the Certificate Indenture, shall be conclusive and binding on each Certificate holder and on all future holders of such Certificate and of any
Certificates issued upon the transfer therefor or in exchange thereof or in lieu thereof whether or not notation of such consent is made upon the Certificates) (and with prior notice to the rating agencies named in the Certificate Indenture) for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Declaration, or of modifying in any manner the rights of the holders of the Certificates; provided, however, that no such
amendment shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, payments that shall be required to be made on any Certificate without the consent of the holder thereof; (b) adversely affect the
rating of any Certificate without the consent of each holder of an affected Certificate; or (c) reduce the foregoing majority requirement for consent to any such amendment, without the consent of each holder of Certificates then outstanding.
Prior to the execution of any such amendment, supplement or consent, the Administrative Trustees shall furnish written notification of the substance of such amendment, supplement or consent to the rating agencies named in the Certificate Indenture.
After the execution of 

  
 15 

 
any such amendment, supplement or consent, the Delaware Trustee shall furnish a copy thereof to the rating agencies named in the Certificate Indenture. 

SECTION 7.7 Form of Amendments. 
 (a) Promptly after the execution of any amendment, supplement or consent pursuant to Sections 7.5 and 7.6, the Delaware Trustee shall furnish written notification of the substance of such amendment or
consent to the Certificate Trustee and the Bond Issuers. 
 (b) The manner of obtaining such consents (and any other consents of
holders of the Certificates provided for in this Declaration or in any other Basic Document) and of evidencing the authorization of the execution thereof by holders of the Certificates shall be subject to such reasonable requirements as the
Administrative Trustees may prescribe to the extent not inconsistent with the provisions of the Basic Documents. 
 (c) Promptly
after the execution of any amendment to the Certificate of Trust, the Delaware Trustee shall cause the filing of such amendment with the Secretary of State of the State of Delaware. 

(d) Prior to the execution of any amendment to this Declaration, the Delaware Trustee, the Administrative Trustees and the Certificate
Trustee shall receive an opinion of counsel to the effect that (i) the execution of such amendment is authorized or permitted by this Declaration, (ii) all conditions precedent to the execution of such amendments have been met and
(iii) such execution will not adversely affect the treatment of the Trust as a “grantor trust” for federal income tax purposes. 
 (e) The Delaware Trustee may, but shall not be obligated to, enter into any such amendment that affects and only affects the Delaware Trustee’s own rights, duties or immunities under this Declaration
or otherwise. No amendment of this Declaration that affects the rights, duties or immunities of the Certificate Trustee or any Administrative Trustee under this Declaration or otherwise shall be effective without the prior written consent of such
Certificate Trustee or Administrative Trustee, as applicable. 
 SECTION 7.8 Counterparts. This Declaration may be
executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. 

SECTION 7.9 Successors. All covenants and agreements contained herein shall be binding upon, and inure to the benefit of the
Bond Issuers, the Trust, the Delaware Trustee and the Administrative Trustees and their respective successors and permitted assigns, all as herein provided. 
 SECTION 7.10 No Petition Covenant. Notwithstanding any other provision of this Declaration or any Basic Document and notwithstanding any prior termination of this Declaration, the Trust (or
the Delaware Trustee on behalf of the Trust) and the Bond Issuers shall not, prior to the date which is one year and one day after the termination of this Declaration, acquiesce, petition or otherwise invoke or cause the Trust to invoke the process
of any governmental authority for the purpose of commencing or sustaining a case against the Trust under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Trust or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Trust. 
 SECTION 7.11 Headings. The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof.

  
 16 

 SECTION 7.12 Governing Law. THIS DECLARATION SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

[Signature page follows.] 
 

IN WITNESS WHEREOF, the Delaware Trustee, the Administrative Trustee and the Bond Issuers have caused this Declaration to be duly
executed by duly authorized officers, all as of the day and year first above written. 
  

			
	CEI FUNDING LLC, as a Settlor
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	OE FUNDING LLC, as a Settlor
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	TE FUNDING LLC, as a Settlor
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 U.S. BANK TRUST NATIONAL ASSOCIATION,
 as Delaware Trustee

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 THE CLEVELAND ELECTRIC ILLUMINATING COMPANY,
 as Administrative Trustee

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 OHIO EDISON COMPANY,

as Administrative Trustee

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	 THE TOLEDO EDISON COMPANY,
 as Administrative Trustee

	By:	 	  

	Name:	 	  

	Title:	 	  

 EXHIBIT A 
 FORM OF CERTIFICATE OF TRUST 
 OF 

FIRSTENERGY OHIO PIRB SPECIAL PURPOSE TRUST 2013 
 THIS Certificate of Trust of FirstEnergy Ohio PIRB Special Purpose Trust 2013 (the “Trust”) is being duly executed and filed by the undersigned, not in its individual capacity but solely as
trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. C. § 3801 et seq.) (the “Act”). 
 1. Name.
The name of the statutory trust is FirstEnergy Ohio PIRB Special Purpose Trust 2013. 
 2. Delaware Trustee. The name and address of a trustee
of the Trust having its principal place of business in the State of Delaware are U.S. Bank Trust National Association, 300 Delaware Avenue, 9th Floor, Wilmington, Delaware 19801. 
 3. Effective Date. This Certificate of Trust shall be effective upon its filing with the Secretary of State of the State of Delaware. 

[Signature Page Follows] 

 IN WITNESS WHEREOF, the undersigned, being the sole trustee of the Trust, has duly executed
this Certificate of Trust in accordance with Section 3811 of the Act. 
  

			
	U.S. BANK TRUST NATIONAL ASSOCIATION,
	not in its individual capacity, but solely as Delaware Trustee of the Trust
		
	By:	 	  

	Name:	 	  

	Title:EX-10.1

 EXHIBIT 10.1 
 [FORM OF] 
 PHASE-IN-RECOVERY PROPERTY PURCHASE AND SALE AGREEMENT

 between 
 [CEI FUNDING LLC] [OE FUNDING LLC] 
 [TE FUNDING LLC], 

as Bond Issuer 
 and 
 [THE CLEVELAND ELECTRIC ILLUMINATING COMPANY] 

[OHIO EDISON COMPANY] [THE TOLEDO EDISON COMPANY], 
 as Seller 
 Dated as of
                         , 2013 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	 ARTICLE I. DEFINITIONS
	  	 	1	  
	 Section 1.01.
	  	Definitions	  	 	1	  
	 Section 1.02.
	  	Other Definitional Provisions	  	 	4	  
		
	 ARTICLE II. CONVEYANCE OF PHASE-IN-RECOVERY PROPERTY
	  	 	4	  
	 Section 2.01.
	  	Conveyance of Phase-In-Recovery Property	  	 	4	  
		
	 ARTICLE III. REPRESENTATIONS AND WARRANTIES OF SELLER
	  	 	4	  
	 Section 3.01.
	  	Organization and Good Standing	  	 	4	  
	 Section 3.02.
	  	Due Qualification	  	 	4	  
	 Section 3.03.
	  	Power and Authority	  	 	5	  
	 Section 3.04.
	  	Binding Obligation	  	 	5	  
	 Section 3.05.
	  	No Violation	  	 	5	  
	 Section 3.06.
	  	No Proceedings	  	 	5	  
	 Section 3.07.
	  	Approvals	  	 	5	  
	 Section 3.08.
	  	The Phase-In-Recovery Property	  	 	5	  
	 Section 3.09.
	  	Limitations on Representations and Warranties	  	 	7	  
		
	 ARTICLE IV. COVENANTS OF THE SELLER
	  	 	7	  
	 Section 4.01.
	  	Corporate Existence	  	 	7	  
	 Section 4.02.
	  	No Liens	  	 	7	  
	 Section 4.03.
	  	Delivery of Collections	  	 	7	  
	 Section 4.04.
	  	Notice of Liens	  	 	7	  
	 Section 4.05.
	  	Compliance with Law	  	 	7	  
	 Section 4.06.
	  	Covenants Related to Bonds and Phase-In-Recovery Property	  	 	7	  
	 Section 4.07.
	  	Protection of Title	  	 	8	  
	 Section 4.08.
	  	Nonpetition Covenant	  	 	8	  
	 Section 4.09.
	  	Taxes	  	 	9	  
	 Section 4.10.
	  	Additional Sales of Phase-In-Recovery Property	  	 	9	  
	 Section 4.11.
	  	Issuance Advice Letter	  	 	9	  
		
	 ARTICLE V. THE SELLER
	  	 	9	  
	 Section 5.01.
	  	Liability of Seller; Indemnities	  	 	9	  
	 Section 5.02.
	  	Merger or Consolidation of, or Assumption of the Obligations of, Seller	  	 	11	  
	 Section 5.03.
	  	Limitation on Liability of Seller and Others	  	 	11	  
		
	 ARTICLE VI. MISCELLANEOUS PROVISIONS
	  	 	11	  
	 Section 6.01.
	  	Amendment	  	 	11	  
	 Section 6.02.
	  	Notices	  	 	11	  
	 Section 6.03.
	  	Assignment	  	 	13	  
	 Section 6.04.
	  	Limitations on Rights of Third Parties	  	 	13	  
	 Section 6.05.
	  	Severability	  	 	13	  
	 Section 6.06.
	  	Separate Counterparts	  	 	13	  
	 Section 6.07.
	  	Headings	  	 	14	  
	 Section 6.08.
	  	Governing Law	  	 	14	  
	 Section 6.09.
	  	Collateral Assignment to Bond Trustee	  	 	14	  
	 Section 6.10.
	  	Rule 17g-5 Compliance	  	 	14	  

  
 i 

 This PHASE-IN-RECOVERY PROPERTY PURCHASE AND SALE AGREEMENT, dated as of
                         , 2013 is between [CEI Funding LLC] [OE Funding LLC] [TE Funding LLC], a Delaware limited
liability company (the “Bond Issuer”), and [The Cleveland Electric Illuminating Company] [Ohio Edison Company] [The Toledo Edison Company], an Ohio corporation (together with its successors in interest to the extent permitted
hereunder, the “Seller”). 
 RECITALS 
 WHEREAS, the Bond Issuer desires to purchase the Phase-In-Recovery Property (as defined herein) created pursuant to the Statute and the Financing Order (each as defined herein); and 

WHEREAS, the Seller is willing to sell the Phase-In-Recovery Property to the Bond Issuer. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto agree as follows:

 ARTICLE I. DEFINITIONS 
 Section 1.01. Definitions. Whenever used in this Agreement, the following words and phrases shall have the following meanings: 

“Administration Agreement” means the Administration Agreement dated as of
                         , 2013 between [The Cleveland Electric Illuminating Company] [Ohio Edison Company] [The
Toledo Edison Company], as Administrator, and the Bond Issuer, as amended and supplemented from time to time. 

“Agreement” means this Phase-In-Recovery Property Purchase and Sale Agreement, as amended and supplemented from time to
time. 
 “Back-Up Security Interest” has the meaning specified in Section 2.01. 

“Basic Documents” means, collectively, this Agreement, the Bond Indenture, the Declaration of Trust, the Certificate
Indenture, the Servicing Agreement, the Administration Agreement, the Bond Purchase Agreement, the Underwriting Agreement, the Fee and Indemnity Agreement and the Cross-Indemnity Agreement. 

“Bonds” means the [CEI Funding LLC] [OE Funding LLC] [TE Funding LLC] Bonds issued under the Bond Indenture. 

“Bondholder” or “Holder” means the Person in whose name a Bond is registered on the Bond Register.

 “Bond Indenture” means the Bond Indenture dated as of
                         , 2013, between the Bond Issuer and the Bond Trustee, as amended and supplemented from
time to time. 
 “Bond Issuer” has the meaning set forth in the preamble of this Agreement. 

“Bond Purchase Agreement” means the Bond Purchase Agreement dated as of
                         , 2013 between the Bond Issuer and the Trust, as amended and supplemented from time to
time. 
 “Bond Register” has the meaning specified in Section 2.05 of the Bond Indenture. 

“Bond Trustee” means the Person acting as trustee under the Bond Indenture. 

“Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions or trust companies
in New York, New York, Akron, Ohio or Wilmington, Delaware are authorized or obligated by law, regulation or executive order to remain closed. 
 “Certificates” means the FirstEnergy Ohio PIRB Special Purpose Trust 2013 Pass-Through Certificates issued under the Certificate Indenture. 

  
 1 

 “Certificateholders” has the meaning specified in Section 1.01(a) of
the Certificate Indenture. 
 “Certificate Indenture” means the Certificate Indenture dated as of
                         , 2013, between the Certificate Issuer and the Certificate Trustee, as amended and
supplemented from time to time. 
 “Certificate Trustee” means the Person acting as trustee under the
Certificate Indenture. 
 “Closing Date” means
                         , 2013. 
 “Collateral” has the meaning specified in the Granting Clause of the Bond Indenture. 
 “Collection Account” has the meaning specified in Section 8.02(a) of the Bond Indenture. 
 “Corporate Trust Office” has the meaning specified in Section 1.01(a) of the Bond Indenture. 
 “Cross-Indemnity Agreement” means the Cross Indemnity Agreement dated as of
                         , 2013 between the Bond Issuer and [other two bond issuers], as amended and supplemented
from time to time. 
 “Customers” means all classes of retail users of the Seller’s distribution system
within its geographic service territory as in effect on [                         ,
        ]. 
 “Declaration of Trust” means the Amended and
Restated Declaration of Trust dated as of                          , 2013, among CEI Funding LLC, OE Funding LLC,
TE Funding LLC and the Delaware Trustee, as may be further amended and supplemented from time to time. 
 “Delaware
Trustee” means the Person acting as trustee under the Declaration of Trust. 
 “Fee and Indemnity
Agreement” means the fee and indemnity agreement dated as of                          , 2013 between the
Bond Issuer, the Delaware Trustee, the Certificate Trustee, the Trust and the [other two bond issuers]. 
 “Financing
Costs” has the meaning specified in Section 1.01(a) of the Bond Indenture. 
 “Financing Order”
means the order of PUCO in Case No. 12-1465-EL-ATS issued on October 10, 2012, as amended by the Entry on Rehearing issued on December 19, 2012, and the Entry Nunc Pro Tunc issued on January 9, 2013. 

“Fitch” means Fitch Ratings or its successor. 
 “Grant” means mortgage, pledge, collaterally assign and grant a lien upon and a security interest in. A Grant of any agreement or instrument shall include all rights, powers and options
(but none of the obligations) of the Granting Person thereunder, the immediate and continuing right to claim for, collect, receive and give receipts for payments in respect of and all other monies payable thereunder, to give and receive notices and
other communications, to make waivers or other agreements, to exercise all rights and options, to bring proceedings in the name of the Granting Person or otherwise, and generally to do and receive anything that the Granting Person is or may be
entitled to do or receive thereunder with respect thereto. 
 “Indemnified Person” has the meaning specified in
Section 5.01(h). 
 “Issuance Advice Letter” means the initial Issuance Advice Letter, dated
                         , 2013, filed with PUCO by the Seller pursuant to the Financing Order. 

“Lien” means a security interest, lien, mortgage, charge, pledge, claim or encumbrance of any kind. 

“Losses” has the meaning specified in Section 5.01(e). 

“Moody’s” means Moody’s Investors Service, Inc. or its successor. 

  
 2 

 “Officer’s Certificate” means a certificate signed by the chairman of
the board, the chief executive officer, the president, the chief financial officer, any vice president, the treasurer, any assistant treasurer, the clerk, any assistant clerk, the controller or the director of corporate finance and cash management
of the Seller. 
 “Operating Expense” has the meaning specified in Section 1.01(a) of the Bond Indenture.

 “Opinion of Counsel” means one or more written opinions of counsel who may be an employee of or counsel to
the party providing such opinion of counsel, which counsel shall be reasonably acceptable to the party receiving such opinion of counsel. 
 “Outstanding Amount” has the meaning specified in Section 1.01(a) of the Bond Indenture. 
 “Person” means any individual, corporation, limited liability company, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision thereof. 
 “Phase-In-Costs”
has the meaning specified in Section 4928.23(J) of the Statute and the final Financing Order. 
 “Phase-In-Recovery
Charge” means the Seller’s Phase-In-Recovery Charge designated pursuant to the Financing Order, as the same may be adjusted from time to time as provided in the Financing Order. 

“Phase-In-Recovery Charge Collections” has the meaning specified in Section 1.01 of the Servicing Agreement.

 “Phase-In-Recovery Property” means the phase-in-recovery property that is created simultaneous with the sale
of such property by the Seller to the Bond Issuer and continues to exist pursuant to and in accordance with paragraph VI.A(6) of the Financing Order and Sections 4928.232, 4928.234 and 4928.2312 of the Statute. 

“PUCO” means the Public Utilities Commission of Ohio and any successor thereto. 

“PUCO Regulations” has the meaning specified in Section 1.01 of the Servicing Agreement. 

“Rating Agencies” means, collectively, S&P, Moody’s and Fitch. 

“Seller” has the meaning set forth in the preamble of this Agreement. 

“Servicer Default” means an event specified in Section 7.01 of the Servicing Agreement. 

“Servicing Agreement” means the Phase-In-Recovery Property Servicing Agreement dated as of
                         , 2013 between [The Cleveland Electric Illuminating Company] [Ohio Edison Company] [The
Toledo Edison Company], as Servicer, and the Bond Issuer, as amended and supplemented from time to time. 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw Hill Companies, Inc. or its
successor. 
 “Statute” means O.R.C. Sections 4928.23 through 4928.2318. 

“Statutory Lien” means the lien on the Phase-In-Recovery Property created by Section 4928.2312 of the Statute and
the final Financing Order. 
 “Trust” or “Certificate Issuer” means FirstEnergy Ohio PIRB
Special Purpose Trust 2013, a Delaware statutory trust. 
 “UCC” means, unless the context otherwise requires,
the Uniform Commercial Code, as in effect in the relevant jurisdiction, as amended from time to time. 

  
 3 

 “Underwriting Agreement” means the Underwriting Agreement dated as of
                         , 2013 among the Trust, the Bond Issuer, The Cleveland Electric Illuminating Company, Ohio
Edison Company, The Toledo Edison Company, [other two bond issuers] and the underwriters named therein. 
 Section 1.02.
Other Definitional Provisions. 
 (a) All terms defined in this Agreement shall have the defined meanings when used in
any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. 
 (b) The words
“hereof,” “herein,” “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section,
Schedule and Exhibit references contained in this Agreement are references to Sections, Schedules and Exhibits in or to this Agreement unless otherwise specified; and the term “including” shall mean “including without
limitation”. 
 (c) The definitions contained in this Agreement are applicable to the singular as well as the plural
forms of such terms. 
 ARTICLE II. CONVEYANCE OF PHASE-IN-RECOVERY PROPERTY 

Section 2.01. Conveyance of Phase-In-Recovery Property. In consideration of the Bond Issuer’s delivery to or upon the
order of the Seller of [$                     ] net of underwriting discounts and other fees and expenses, the Seller does hereby irrevocably sell,
transfer, assign, set over and otherwise convey to the Bond Issuer, WITHOUT RECOURSE OR WARRANTY, except as specifically set forth herein, all right, title and interest of the Seller in and to the Phase-In-Recovery Property (such sale, transfer,
assignment, setting over and conveyance of the Phase-In-Recovery Property includes, to the fullest extent permitted by the Statute, the assignment of all revenues, collections, claims, payments, money or proceeds of or arising from the
Phase-In-Recovery Charge pursuant to the Financing Order) and copies of all books and records related thereto. Such sale, transfer, assignment, setting over and conveyance is hereby expressly stated to be a sale and, pursuant to
Section 4928.2313 of the Statute, shall be treated as an absolute transfer and true sale of all of the Seller’s right, title and interest in (as in a true sale), and not as a pledge or secured transaction relating to, or other financing
of, the Phase-In-Recovery Property. If such sale, transfer, assignment, setting over and conveyance is held by any court of competent jurisdiction not to be a true sale as provided in Section 4928.2313 of the Statute, then such sale, transfer,
assignment, setting over and conveyance shall be treated as the creation of a security interest in the Phase-In-Recovery Property and, without prejudice to its position that it has absolutely transferred all of its right, title and interest in and
to the Phase-In-Recovery Property to the Bond Issuer, the Seller hereby Grants to the Bond Issuer a security interest in the Phase-In-Recovery Property (including, to the fullest extent permitted by the Statute, the assignment of all revenues,
collections, claims, payments, money or proceeds of or arising from the Phase-In-Recovery Charge pursuant to the Financing Order) to secure a payment obligation incurred by the Seller in respect of the amount paid by the Bond Issuer to the Seller
pursuant to this Agreement (the “Back-Up Security Interest”). A UCC-1 financing statement will be filed in order to perfect the Back-Up Security Interest. Such sale, transfer, assignment, setting over and conveyance of the
Phase-In-Recovery Property includes the right to use the Seller’s computer software system to access and create copies of all books and records related to the Phase-In-Recovery Property. 

ARTICLE III. REPRESENTATIONS AND WARRANTIES OF SELLER 
 Subject to Section 3.09 hereof, the Seller makes the following representations and warranties, as of the Closing Date, on which the Bond Issuer has relied in acquiring the Phase-In-Recovery
Property. 
 Section 3.01. Organization and Good Standing. The Seller is duly organized and validly existing as a
corporation in good standing under the laws of the State of Ohio, with the requisite corporate power and authority to own its properties as such properties are currently owned and to conduct its business as such business is now conducted by it, and
has the requisite corporate power and authority to own the Phase-In-Recovery Property. 
 Section 3.02. Due
Qualification. The Seller is duly qualified to do business as a foreign corporation in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its
business shall require such qualifications, licenses or approvals (except where the failure to so qualify or obtain such licenses and approvals would not be reasonably likely to have a material adverse effect on the Seller’s business,
operations, assets, revenues or properties). 

  
 4 

 Section 3.03. Power and Authority. The Seller has the requisite corporate power
and authority to execute and deliver this Agreement and to carry out its terms; and the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action on the part of the Seller. 

Section 3.04. Binding Obligation. This Agreement constitutes a legal, valid and binding obligation of the Seller enforceable
against it in accordance with its terms, subject to applicable insolvency, reorganization, moratorium, fraudulent transfer and other laws relating to or affecting creditors’ or secured parties’ rights generally from time to time in effect
and to general principles of equity (including concepts of materiality, reasonableness, good faith and fair dealing), regardless of whether considered in a proceeding in equity or at law. 

Section 3.05. No Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the
terms hereof do not: (i) conflict with or result in any breach of any of the terms and provisions of, nor constitute (with or without notice or lapse of time) a default under, the articles of incorporation or code of regulations of the Seller,
or any material indenture, agreement or other instrument to which the Seller is a party or by which it is bound; (ii) result in the creation or imposition of any Lien upon any of the Seller’s properties pursuant to the terms of any such
indenture, agreement or other instrument (other than any Lien that may be Granted under the Basic Documents or the Statutory Lien); or (iii) violate any existing law or any existing order, rule or regulation applicable to the Seller of any
federal or state court or regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Seller or its properties. 
 Section 3.06. No Proceedings. There are no proceedings or investigations pending and, to the Seller’s knowledge, there are no proceedings or investigations threatened, before any federal
or state court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Seller or its properties involving or relating to the Seller or the Bond Issuer or, to the Seller’s knowledge, any other
Person: (i) asserting the invalidity of this Agreement, the Statute or the Financing Order, (ii) seeking to prevent the consummation of the transactions contemplated by this Agreement or the other Basic Documents, (iii) seeking any
determination or ruling that might materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, this Agreement, any of the other Basic Documents, the Bonds or the Certificates, or the
validity of the Statute or the Financing Order or (iv) seeking to adversely affect the federal or state income tax classification of the Bonds [or the Certificates] as debt. 

Section 3.07. Approvals. No approval, authorization, consent, order or other action of, or filing with, any federal or state
court, regulatory body, administrative agency or other governmental instrumentality is required in connection with the execution and delivery by the Seller of this Agreement, the performance by the Seller of the transactions contemplated hereby or
the fulfillment by the Seller of the terms hereof, except those that have been obtained or made and those that the Seller, in its capacity as Servicer under the Servicing Agreement, is required to make in the future pursuant to the Servicing
Agreement. 
 Section 3.08. The Phase-In-Recovery Property. 

(a) Title. It is the intention of the parties hereto that the transfer and assignment herein contemplated constitute a sale of the
Phase-In-Recovery Property from the Seller to the Bond Issuer and that no interest in, or title to, the Phase-In-Recovery Property shall be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller
under any bankruptcy law. No portion of the Phase-In-Recovery Property has been sold, transferred, assigned or pledged by the Seller to any Person other than the Bond Issuer. On the Closing Date, immediately upon the sale hereunder, the Seller has
transferred, sold and conveyed the Phase-In-Recovery Property to the Bond Issuer, free and clear of all Liens, except for the Statutory Lien and any Lien that may be Granted under the Basic Documents, and pursuant to Section 4928.2313 of the
Statute such transfer shall be treated as an absolute transfer of all of the Seller’s right, title and interest (as in a true sale), and not as a pledge or other financing of, the Phase-In-Recovery Property. 

(b) Transfer Filings. On the Closing Date, immediately upon the sale hereunder, the Phase-In-Recovery Property has been validly
transferred and sold to the Bond Issuer, the Bond Issuer shall own all such Phase-In-Recovery Property free and clear of all Liens (except for the Statutory Lien and any Lien that may be Granted under

  
 5 

 
the Basic Documents) and all filings to be made by the Seller (including filings with the PUCO under the Statute) necessary in any jurisdiction to give the Bond Issuer a valid, perfected
ownership interest (subject to the Statutory Lien and any Lien that may be Granted under the Basic Documents) in, and for the Grant by the Bond Issuer to the Bond Trustee of a valid, first priority perfected security interest (except for the
Statutory Lien and any Lien that may be Granted under the Basic Documents) in, the Phase-In-Recovery Property have been made. No further action is required to maintain such ownership interest or the Bond Trustee’s perfected security interest
(in each case, subject to the Statutory Lien and any Lien that may be Granted under the Basic Documents). Filings have also been made to the extent required in any jurisdiction to perfect the Back-Up Security Interest Granted by the Seller to the
Bond Issuer (subject to the Statutory Lien and any Lien that may be Granted under the Basic Documents). 
 (c) Financing
Order and Issuance Advice Letter; Other Approvals. On the Closing Date, under the laws of the State of Ohio and the United States in effect on the Closing Date, (i) the Financing Order pursuant to which the Phase-In-Recovery Property has
been created is in full force and effect; (ii) the Bondholders are entitled to the protections of the Statute, and the Financing Order is not revocable by the PUCO; (iii) the State of Ohio may not take or permit any action that impairs the
value of the Phase-In-Recovery Property or revise the Phase-In-Costs for which recovery is authorized under the Financing Order or, except for periodic adjustments allowed in accordance with the adjustment mechanism in Section 4928.238 of the
Statute, reduce, alter or impair Phase-In-Recovery Charges that are imposed, charged, collected or remitted for the benefit of the Bondholders in a manner that would substantially impair the rights of the Bondholders, absent a demonstration by the
State of Ohio that an impairment is a reasonable exercise of its sovereign power and of a character reasonable and appropriate to the public purpose justifying such action, until the Bonds, together with interest thereon, and all other approved
Financing Costs are paid and performed in full; (iv) the PUCO may not, either by rescinding, altering or amending the Financing Order, in any way reduce, impair, postpone or terminate the Phase-In-Recovery Charge or impair the Phase-In-Recovery
Property or the collection or recovery of the Phase-In-Costs, absent a demonstration by the State of Ohio that an impairment is a reasonable exercise of its sovereign power and of a character reasonable and appropriate to the public purpose
justifying such action, until the Bonds, together with interest thereon, and all other approved Financing Costs are paid and performed in full; (v) the process by which the Financing Order was adopted and approved, and the Financing Order and
Issuance Advice Letter themselves, comply with all applicable laws, rules and regulations; (vi) the Issuance Advice Letter has been filed in accordance with the Financing Order; and (vii) no other approval, authorization, consent, order or
other action of, or filing with, any court, Federal or state regulatory body, administrative agency or other governmental instrumentality is required in connection with the creation or sale of the Phase-In-Recovery Property, except those that have
been obtained or made and are in full force and effect. 
 (d) Assumptions. On the Closing Date, based upon the
information available to the Seller on the Closing Date, the assumptions used in calculating the initial Phase-In-Recovery Charge are reasonable and are made in good faith. Notwithstanding the foregoing, the Seller makes no representation or
warranty that the assumptions used in calculating such Phase-In-Recovery Charge will in fact be realized. 
 (e) Creation of
Phase-In-Recovery Property. Upon the sale by the Seller to the Bond Issuer of all of its right, title and interest in the Phase-In-Recovery Property (i) there will arise and constitute an existing present property right and interest in such
Phase-In-Recovery Property which shall continue to exist until such time as the Bonds, together with interest thereon, and all other approved Financing Costs are paid in full; (ii) the creation of the Seller’s Phase-In-Recovery Property is
confirmed and is simultaneous with the sale by the Seller to the Bond Issuer of such Phase-In-Recovery Property; (iii) the Phase-In-Recovery Property includes the right, title and interest in and to all revenues, collections, claims, payments,
money, or proceeds of or arising from the Phase-In-Recovery Charge, as adjusted from time to time pursuant to the Financing Order, and all rights to obtain adjustments to the Phase-In-Recovery Charge pursuant to the Financing Order; and
(iv) the owner of the Phase-In-Recovery Property is legally entitled to collect payments in respect of the Phase-In-Recovery Charge in the aggregate sufficient, subject to the Cap to the extent applicable, to pay the interest on and principal
of the Bonds, to pay the fees and expenses incurred by or allocable to the Bond Issuer in connection with servicing the Bonds and an allocable portion of the Certificates, and to replenish the Capital Subaccount to the Required Capital Level until
the Bonds, together with interest thereon, and all other approved Financing Costs are paid in full. Notwithstanding the foregoing, the Seller makes no representation or warranty that any amounts actually collected in respect of the Phase-In-Recovery
Charge will in fact be sufficient to meet payment obligations with respect to the Bonds and, hence, the Bond Issuer’s allocable portion of the Certificates. 

  
 6 

 (f) Prospectus. As of the date hereof, the information describing the Seller in
“The Sponsors, Sellers and Initial Servicers” section of the prospectus dated                          ,
2013 offering the Bonds, the bonds issued by [other two bond issuers] and the Certificates is correct in all material respects. 

Section 3.09. Limitations on Representations and Warranties. Without prejudice to any of the other rights of the parties, the
Seller will not be in breach of any representation or warranty as a result of a change in law by means of a legislative enactment, constitutional amendment or voter initiative or referendum. Notwithstanding anything to the contrary in this
Agreement, the Seller makes no representation or warranty that any amounts actually collected in respect of the Phase-In-Recovery Charge will in fact be sufficient to meet payment obligations with respect to the Bonds and, hence, the Bond
Issuer’s allocable portion of the Certificates or that the assumptions used in calculating the Phase-In-Recovery Charge will in fact be realized nor shall the Seller be obligated to reduce, or accept a reduction of, any rates or charges to
which it would otherwise be entitled in respect of services rendered or to be rendered to Customers in order to permit the payment of the Phase-In-Recovery Charge. 
 ARTICLE IV. COVENANTS OF THE SELLER 
 Section 4.01. Corporate
Existence. So long as any of the Bonds are outstanding, except as provided under Section 5.02, the Seller (a) will keep in full force and effect its existence, rights and franchises as a corporation under the laws of the
jurisdiction of its organization and (b) will obtain and preserve its qualification to do business, in each case to the extent that in each such jurisdiction such existence or qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the other Basic Documents to which the Seller is a party and each other instrument or agreement to which the Seller is a party necessary or appropriate to the proper administration of this Agreement and the
transactions contemplated hereby. 
 Section 4.02. No Liens. Except for the conveyances hereunder or the Statutory
Lien or the Back-Up Security Interest, the Seller will not sell, pledge, assign or transfer, or Grant, create, or incur any Lien on, any of the Phase-In-Recovery Property, or any interest therein, and the Seller shall defend the right, title and
interest of the Bond Issuer and the Bond Trustee in, to and under the Phase-In-Recovery Property against all claims of third parties claiming through or under the Seller. [The Cleveland Electric Illuminating] [Ohio Edison Company] [The Toledo Edison
Company], in its capacity as Seller, will not at any time assert any Lien against, or with respect to, any of the Phase-In-Recovery Property. 
 Section 4.03. Delivery of Collections. If the Seller receives any payments in respect of the Phase-In-Recovery Charge or the proceeds thereof when it is not acting as the Servicer, the Seller
agrees to pay to the Servicer all payments received by it in respect thereof as soon as practicable after receipt thereof by it. 
 Section 4.04. Notice of Liens. The Seller shall notify the Bond Issuer and the Bond Trustee promptly after becoming aware of any Lien Granted on any of the Phase-In-Recovery Property, other
than the conveyances hereunder, any Lien under the Basic Documents or the Statutory Lien or for the benefit of the Bond Issuer. 

Section 4.05. Compliance with Law. The Seller hereby agrees to comply with its organizational and governing documents and all
laws, treaties, rules, regulations and determinations of any governmental instrumentality applicable to it, except to the extent that failure to so comply would not adversely affect the Bond Issuer’s or the Bond Trustee’s interests in the
Phase-In-Recovery Property or under any of the other Basic Documents to which the Seller is party or the Seller’s performance of its obligations hereunder or under any of the other Basic Documents to which it is party. 

Section 4.06. Covenants Related to Bonds and Phase-In-Recovery Property. 

(a) So long as any of the Bonds are outstanding, the Seller shall treat the Bonds as debt of the Bond Issuer and not of the Seller,
except for financial accounting or tax reporting purposes. 
 (b) So long as any of the Bonds are outstanding, the Seller shall
indicate in its financial statements that it is not the owner of the Phase-In-Recovery Property and shall disclose the effects of all transactions between the Seller and the Bond Issuer in accordance with generally accepted accounting principles.

  
 7 

 (c) So long as any of the Bonds or Certificates are outstanding, the Seller shall not own or
purchase any Bonds or Certificates. 
 (d) The Seller agrees that, upon the transfer and sale by the Seller of the
Phase-In-Recovery Property to the Bond Issuer pursuant to this Agreement, (i) to the fullest extent permitted by law, including applicable PUCO Regulations, the Bond Issuer shall have all of the rights originally held by the Seller with respect
to the Phase-In-Recovery Property, including the right (subject to the terms of the Servicing Agreement) to exercise any and all rights and remedies to collect any amounts payable by any Customer in respect of the Phase-In-Recovery Property,
notwithstanding any objection or direction to the contrary by the Seller and (ii) any payment by any Customer to the Bond Issuer shall discharge such Customer’s obligations in respect of the Phase-In-Recovery Property to the extent of such
payment, notwithstanding any objection or direction to the contrary by the Seller. 
 (e) So long as any of the Bonds are
outstanding, (i) the Seller shall not make any statement or reference in respect of the Phase-In-Recovery Property that is inconsistent with the ownership thereof by the Bond Issuer (other than for financial accounting or tax reporting
purposes), and (ii) the Seller shall not take any action in respect of the Phase-In-Recovery Property except solely in its capacity as the Servicer thereof pursuant to the Servicing Agreement or as otherwise contemplated by the Basic Documents.

 Section 4.07. Protection of Title. The Seller shall execute and file such filings, including filings with the
PUCO pursuant to the Statute and UCC filings, and cause to be executed and filed such filings, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the ownership interest of the Bond Issuer, and the
security interest of the Bond Trustee, in the Phase-In-Recovery Property and the Back-Up Security Interest, including all filings required under the Statute and the applicable UCC relating to the transfer of the ownership interest in the
Phase-In-Recovery Property by the Seller to the Bond Issuer, the Granting of a security interest in the Phase-In-Recovery Property by the Bond Issuer to the Bond Trustee, and the Back-Up Security Interest, and the continued perfection of such
ownership interest, security interest and the Back-Up Security Interest. The Seller shall deliver (or cause to be delivered) to the Bond Trustee (with copies to the Bond Issuer) file-stamped copies of, or filing receipts for, any document filed as
provided above, as soon as available following such filing. The Seller shall institute any action or proceeding necessary to compel performance by the PUCO or the State of Ohio of any of their obligations or duties under the Statute or the Financing
Order, and the Seller agrees to take such legal or administrative actions, including defending against or instituting and pursuing legal actions and appearing or testifying at hearings or similar proceedings, as may be reasonably necessary
(i) to protect the Bond Issuer, the Bond Trustee, the Bondholders, and any of their respective affiliates, officials, directors, employees, and agents from claims, state actions or other actions or proceedings of third parties which, if
successfully pursued, would result in a breach of any representation set forth in Article III or (ii) to block or overturn any attempts to cause a repeal of, modification of or supplement to the Statute, the Financing Order, the Issuance
Advice Letter, any other Adjustment Request (as defined in the Servicing Agreement), or the rights of Bondholders by executive action, legislative enactment or constitutional amendment that would be adverse to the Bond Issuer, the Bond Trustee or
the Bondholders. If the Servicer performs its obligations under Section 5.02(d) of the Servicing Agreement in all respects, such performance shall be deemed to constitute performance of the Seller’s obligations pursuant to clause
(ii) of the immediately preceding sentence. In such event, the Seller agrees to assist the Servicer as reasonably necessary to perform its obligations under Section 5.02(d) of the Servicing Agreement in all respects. The costs of any such
actions or proceedings shall be payable from Phase-In-Recovery Charge Collections as an Operating Expense in accordance with the priorities and subject to the Cap set forth in Section 8.02(e) of the Bond Indenture. The Seller’s obligations
pursuant to this Section 4.07 shall survive and continue notwithstanding the fact that the payment of Operating Expenses pursuant to Section 8.02(e) of the Bond Indenture may be delayed (it being understood that the Seller may be
required to advance its own funds to satisfy its obligations hereunder). 
 Section 4.08. Nonpetition Covenant.
Notwithstanding any prior termination of this Agreement or the Bond Indenture, but subject to the right of a court of competent jurisdiction to order the sequestration and payment of revenues arising with respect to the Phase-In-Recovery Property
notwithstanding any bankruptcy, reorganization or other insolvency proceedings with respect to the Seller pursuant to Section 4928.2310 of the Statute, the Seller solely in its capacity as a creditor of the Bond Issuer shall not, prior to the
date which is one year and one day after the termination of the Bond Indenture, petition or otherwise invoke or cause the Bond Issuer to invoke the process of any court or government authority for the purpose of commencing or sustaining an
involuntary case against the Bond Issuer under any Federal or state bankruptcy, insolvency or similar law, appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Bond Issuer or any substantial
part of the property of the Bond Issuer, or, to the fullest extent permitted by law, ordering the winding up or liquidation of the affairs of the Bond Issuer. 

  
 8 

 Section 4.09. Taxes. So long as any of the Bonds are outstanding, the Seller
shall, and shall cause each of its subsidiaries to, pay all material taxes, assessments and governmental charges imposed upon it or any of its properties or assets or with respect to any of its franchises, business, income or property before any
penalty accrues thereon if the failure to pay any such taxes, assessments and governmental charges would, after any applicable grace periods, notices or other similar requirements, result in a Lien on the Phase-In-Recovery Property; provided that no
such tax need be paid if the Seller or one of its subsidiaries is contesting the same in good faith by appropriate proceedings promptly instituted and diligently conducted and if the Seller or such subsidiary has established appropriate reserves as
shall be required in conformity with generally accepted accounting principles. 
 Section 4.10. Additional Sales of
Phase-In-Recovery Property. So long as any of the Bonds are outstanding, the Seller shall not sell any “phase-in-recovery property” (as defined in the Statute) to secure another issuance of phase-in-recovery bonds (as defined in the
Statute) if it would cause the then existing ratings on the Certificates from the Rating Agencies to be downgraded. 

Section 4.11. Issuance Advice Letter. The Seller hereby agrees not to withdraw the filing of the Issuance Advice Letter with
the PUCO. 
 ARTICLE V. THE SELLER 
 Section 5.01. Liability of Seller; Indemnities. 
 (a) The Seller shall
be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Seller under this Agreement. 
 (b) Intentionally Omitted. 
 (c) The Seller shall indemnify the Bond
Issuer, the Bond Trustee, the Certificate Trustee, the Delaware Trustee, the Certificate Issuer and, the Bondholders for, and defend and hold harmless each such Person from and against, any and all taxes (other than taxes imposed on Bondholders
solely as a result of their ownership of Bonds) that may at any time be imposed on or asserted against any such Person under existing law as of the Closing Date as a result of the sale of the Phase-In-Recovery Property to the Bond Issuer, including
any sales, gross receipts, general corporation, tangible personal property, privilege or license taxes; provided, however, that the Bondholders shall be entitled to enforce their rights against the Seller under this
Section 5.01(c) solely through a cause of action brought for their benefit by the Bond Trustee. 
 (d) The Seller
shall indemnify the Bond Issuer, the Bond Trustee, the Certificate Trustee, the Delaware Trustee, the Certificate Issuer, and the Bondholders for, and defend and hold harmless each such Person from and against, any and all taxes that may be imposed
on or asserted against any such Person under existing law as of the Closing Date as a result of the issuance and sale by the Bond Issuer of the Bonds, the issuance and sale by the Trust of the Bond Issuer’s allocable portion of the Certificates
or the other transactions contemplated herein, including any sales, gross receipts, general corporation, tangible personal property, privilege or license taxes; provided, however, that the Bondholders shall be entitled to enforce their
rights against the Seller under this Section 5.01(d) solely through a cause of action brought for their benefit by the Bond Trustee. The Seller shall be reimbursed for any payments under this Section 5.01(d) from
Phase-In-Recovery Charge Collections as an Operating Expense in accordance with the priorities and subject to the Cap set forth in Section 8.02(e) of the Bond Indenture. 
 (e) The Seller shall indemnify the Bond Issuer and the Bondholders for, and defend and hold harmless each such Person from and against, any and all liabilities, obligations, losses, actions, suits,
claims, damages, payments, costs or expenses of any kind whatsoever (collectively, “Losses”) that may be imposed on, incurred by or asserted against each such Person as a result of (i) the Seller’s willful misconduct or
gross negligence in the performance of its duties or observance of its covenants under this Agreement, or (ii) the Seller’s breach in any material respect of any of its representations and warranties contained in this Agreement, except in
the case of both clauses (i) and (ii) to the extent of Losses either resulting from the willful misconduct or gross negligence of such indemnified person or resulting from a breach of a representation and warranty made by such indemnified
person in any of the Basic Documents that gives rise to the Seller’s breach; provided, however, that the Bondholders shall be entitled to enforce their rights against the Seller under this indemnification solely through a cause of
action brought for their benefit by the Bond Trustee; 

  
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 (f) Indemnification under Sections 5.01(c), 5.01(d), 5.01(e) and
5.01(h) shall include reasonable fees and out-of-pocket expenses of investigation and litigation (including reasonable attorneys’ fees and expenses), except as otherwise provided in this Agreement. 

(g) Without prejudice to any of the other rights of the parties, the Seller will not be in breach of any representation or warranty as a
result of a change in law by means of a legislative enactment, constitutional amendment or voter initiative. Notwithstanding anything to the contrary in this Agreement, the Seller makes no representation or warranty that any amounts actually
collected in respect of the Phase-In-Recovery Charge will in fact be sufficient to meet payment obligations with respect to the Bonds and, hence, the Bond Issuer’s allocable portion of the Certificates or that the assumptions used in
calculating the Phase-In-Recovery Charge will in fact be realized nor shall the Seller be obligated to reduce, or accept a reduction of, any rates or charges to which it would otherwise be entitled in respect of services rendered or to be rendered
to customers in order to permit the payment of the Phase-In-Recovery Charge. 
 (h) The Seller shall indemnify and hold harmless
the Bond Trustee, the Delaware Trustee, the Certificate Trustee, the Certificate Issuer and any of their respective affiliates, officials, officers, directors, employees and agents (each an “Indemnified Person”) against any and all
Losses incurred by any of such Indemnified Persons as a result of (i) the Seller’s willful misconduct or gross negligence in the performance of its duties or observance of its covenants under this Agreement or (ii) the Seller’s
breach in any material respect of any of its representations and warranties contained in this Agreement, except in the case of both clauses (i) and (ii) to the extent of Losses either resulting from the willful misconduct or negligence of
such Indemnified Person or resulting from a breach of a representation or warranty made by such Indemnified Person in any of the Basic Documents that gives rise to the Seller’s breach. The Seller shall not be required to indemnify an
Indemnified Person for any amount paid or payable by such Indemnified Person in the settlement of any action, proceeding or investigation without the written consent of the Seller, which consent shall not be unreasonably withheld. The obligations of
the Seller under this Section 5.01(h) shall survive the resignation or removal of the foregoing trustees and the termination of the Basic Documents. Promptly after receipt by an Indemnified Person of notice of its involvement in any
action, proceeding or investigation, such Indemnified Person shall, if a claim for indemnification in respect thereof is to be made against the Seller under this Section 5.01(h), notify the Seller in writing of such involvement. Failure
by an Indemnified Person to so notify the Seller shall relieve the Seller from the obligation to indemnify and hold harmless such Indemnified Person under this Section 5.01(h) only to the extent that the Seller suffers actual prejudice
as a result of such failure. With respect to any action, proceeding or investigation brought by a third party for which indemnification may be sought under this Section 5.01(h), the Seller shall be entitled to assume the defense of any
such action, proceeding or investigation. Upon assumption by the Seller of the defense of any such action, proceeding or investigation, the Indemnified Person shall have the right to participate in such action or proceeding and to retain its own
counsel. The Seller shall be entitled to appoint counsel of the Seller’s choice at the Seller’s expense to represent the Indemnified Person in any action, proceeding or investigation for which a claim of indemnification is made against the
Seller under this Section 5.01(h) (in which case the Seller shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the Indemnified Person except as set forth below); provided,
however, that such counsel shall be reasonably satisfactory to the Indemnified Person. Notwithstanding the Seller’s election to appoint counsel to represent the Indemnified Person in an action, proceeding or investigation, the
Indemnified Person shall have the right to employ separate counsel (including local counsel), and the Seller shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the Seller to represent
the Indemnified Person would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the Indemnified Person and the Seller and the Indemnified Person shall have
reasonably concluded that there may be legal defenses available to it that are different from or additional to those available to the Seller, (iii) the Seller shall not have employed counsel reasonably satisfactory to the Indemnified Person to
represent the Indemnified Person within a reasonable time after notice of the institution of such action or (iv) the Seller shall authorize the Indemnified Person to employ separate counsel at the expense of the Seller. Notwithstanding the
foregoing, the Seller shall not be obligated to pay for the fees, costs and expenses of more than one separate counsel for the Indemnified Persons other than local counsel. The Seller will not, without the prior written consent of the Indemnified
Person, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or 

  
 10 

 
proceeding in respect of which indemnification may be sought under this Section 5.01(h) (whether or not the Indemnified Person is an actual or potential party to such claim or action)
unless such settlement, compromise or consent includes an unconditional release of the Indemnified Person from all liability arising out of such claim, action, suit or proceeding. 

(i) The remedies of the Bond Issuer and the Bondholders provided in this Agreement are each such Person’s sole and exclusive
remedies against the Seller for breach of its representations and warranties in this Agreement. 
 Section 5.02. Merger
or Consolidation of, or Assumption of the Obligations of, Seller. Any Person (a) into which the Seller may be merged or consolidated, (b) that may result from any merger or consolidation to which the Seller shall be a party or
(c) that may succeed to the properties and assets of the Seller substantially as a whole, which Person in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Seller hereunder, shall be the successor
to the Seller under this Agreement without further act on the part of any of the parties to this Agreement; provided, however, that (i) if the Seller is the Servicer, no Servicer Default, and no event which, after notice or lapse of
time, or both, would become a Servicer Default shall have occurred and be continuing, (ii) the Seller shall have delivered to the Bond Issuer and the Bond Trustee an Officers’ Certificate stating that such consolidation, merger or
succession and such agreement of assumption comply with this Section and that all conditions precedent, if any, provided for in this Agreement relating to such transaction have been complied with, (iii) the Seller shall have delivered to the
Bond Issuer and the Bond Trustee an Opinion of Counsel either (A) stating that, in the opinion of such counsel, such consolidation, merger or succession and such agreement of assumption comply with this Section and that all conditions precedent
provided for in this Agreement relating to such transaction have been complied with and (B) either (1) all filings to be made by the Seller, including filings with the PUCO pursuant to the Statute and under the applicable UCC, have been
executed and filed that are necessary to fully preserve and protect the interests of the Bond Issuer and the Bond Trustee in the Phase-In-Recovery Property and reciting the details of such filings, or (2) no such action shall be necessary to
preserve and protect such interests and (iv) the Rating Agencies shall have received prior written notice of such transaction from the Seller. When any Person acquires the properties and assets of the Seller substantially as a whole and becomes
the successor to the Seller in accordance with the terms of this Section 5.02, then upon satisfaction of all of the other conditions of this Section 5.02, the Seller shall automatically and without further notice be released
from all of its obligations hereunder. 
 Section 5.03. Limitation on Liability of Seller and Others. The Seller and
any director, officer, employee or agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind, prima facie properly executed and submitted by any Person, respecting any matters arising hereunder. 

ARTICLE VI. MISCELLANEOUS PROVISIONS 
 Section 6.01. Amendment. This Agreement may be amended by the Seller and the Bond Issuer, with (a) ten Business Days’ prior written notice given to the Rating Agencies, (b) the
prior written consent of the Bond Trustee, and (c) if any amendment would adversely affect in any material respect the interests of any Bondholder, the prior written consent of a majority of the Outstanding Amount of the Bonds affected thereby.

 It shall not be necessary for the consent of Bondholders pursuant to this Section to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. 
 Prior to the
execution of any amendment to this Agreement, the Bond Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and all conditions precedent
have been satisfied. The Bond Trustee may, but shall not be obligated to, enter into any such amendment which affects the Bond Trustee’s own rights, duties or immunities under this Agreement or otherwise. 

The Bond Issuer shall provide a copy of any amendment to this Agreement to the Bond Trustee and the Rating Agencies promptly after the
execution thereof. 
 Section 6.02. Notices. Unless otherwise specifically provided herein, all notices, directions,
consents and waivers required under the terms and provisions of this Agreement shall be in English and in writing, and any 

  
 11 

 
such notice, direction, consent or waiver may be given by United States mail, courier service, facsimile transmission or electronic mail (confirmed by telephone, United States mail or courier
service in the case of notice by facsimile transmission or electronic mail) or any other customary means of communication, and any such notice, direction, consent or waiver shall be effective when delivered, or if mailed, three days after deposit in
the United States mail with proper postage for ordinary mail prepaid: 
  

	 	(a)	if to the Seller, to: 

 [The
Cleveland Electric Illuminating Company] [Ohio Edison Company] 
 [The Toledo Edison Company] 

76 South Main Street 
 Akron, Ohio 44308 

	 	Attention:	James W. Burk, 

 Counsel of
Record 

	 	Facsimile:	(330) 384-3875 

	 	Telephone:	(330) 384-5861 

  

	 	(b)	if to the Bond Issuer, to: 

[CEI Funding LLC] [OE Funding LLC][TE Funding LLC] 
 Attention: ______________________ 
 Facsimile: ______________________ 

Telephone: ______________________ 
  

	 	(c)	if to the Bond Trustee, to: 

U.S. Bank National Association 
 190 S. LaSalle Street, 7th Floor 
 Mail Code: MK-IL-SL7R 

Chicago, IL 60603 
 Attention: First Energy Ohio PIRB Special Purpose Trust 2013 
 Facsimile:
312-332-7996 
 Telephone: 312-332-7496 
 E-Mail: melissa.rosal@usbank.com 
  

	 	(d)	if to Moody’s, to: 

Moody’s Investors Service, Inc. 
 25th Floor, 7
World Trade Center, 250 Greenwich 
 New York, NY 10007 

	 	Attention:	ABS/RMBS Monitoring Department 

	 	Email:	ServicerReports@moodys.com 

	 	Facsimile:	(212) 553-0573 

	 	Telephone:	(212) 553-3686 

  
 12 

	 	(e)	if to S&P, to: 

Standard & Poor’s Rating Services 
 55 Water Street 
 New York, NY 10041 

	 	Attention:	Structured Credit Surveillance 

	 	Telephone:	(212) 438-8991 

	 	E-mail:	servicer-reports@standardandpoors.com 

  

	 	(f)	if to Fitch, to: 

 Fitch
Ratings 
 One State Street Plaza 
 New York, New York 10004 

	 	Attention:	ABS Surveillance 

	 	Telephone:	(212) 908-0500 

	 	Facsimile:	(212) 908-0355 

  

	 	(g)	if to the Certificate Issuer, to: 

 U.S. Bank Trust National Association, as Delaware Trustee 
 for the FirstEnergy
Ohio PIRB Special Purpose Trust 2013 
 190 S. LaSalle Street, 7th Floor 

Mail Code: MK-IL-SL7R 
 Chicago, IL 60603 

	 	Attention:	First Energy Ohio PIRB Special Purpose Trust 2013 

	 	Facsimile:	312-332-7996 

	 	Telephone:	312-332-7496 

 E-Mail:
melissa.rosal@usbank.com 
 (h) as to each of the foregoing, at such other address as shall be designated by written notice to
the other parties. 
 Section 6.03. Assignment. Notwithstanding anything to the contrary contained herein, except as
provided in Section 5.02 and Section 6.09, this Agreement may not be assigned by the Seller. 

Section 6.04. Limitations on Rights of Third Parties. The provisions of this Agreement are solely for the benefit of the
Seller, the Bond Issuer, the Bondholders, the Bond Trustee, the Certificate Trustee, the Delaware Trustee, the Certificate Issuer and the other Persons expressly referred to herein, and such Persons shall have the right to enforce the relevant
provisions of this Agreement, except that the Bondholders shall be entitled to enforce their rights against the Seller under this Agreement solely through a cause of action brought for their benefit by the Bond Trustee. Nothing in this Agreement,
whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Phase-In-Recovery Property or under or in respect of this Agreement or any covenants, conditions or provisions contained
herein. 
 Section 6.05. Severability. Any provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 6.06. Separate Counterparts.
This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 

  
 13 

 Section 6.07. Headings. The headings of the various Articles and Sections herein
are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 
 Section 6.08.
Governing Law. This Agreement shall be construed in accordance with the laws of the State of Ohio, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in
accordance with such laws. 
 Section 6.09. Collateral Assignment to Bond Trustee. The Seller hereby acknowledges
and consents to the Grant of a security interest and collateral assignment by the Bond Issuer to the Bond Trustee pursuant to the Bond Indenture for the benefit of the Bondholders and the Bond Trustee of all right, title and interest of the Bond
Issuer in, to and under the Phase-In-Recovery Property and the proceeds thereof and all other Collateral (including, without limitation all of the Bond Issuer’s rights hereunder) and to the subsequent Grant of a security interest and collateral
assignment by the Bondholder to the Certificate Trustee pursuant to the Certificate Indenture for the benefit of the Certificateholders and the Certificate Trustee in all of the Bondholder’s right, title and interest in the Bonds, and all
rights of the Certificate Trustee or the Certificate Issuer, as sole holder of the Bonds in and to the Collateral of the Bond Issuer and any proceeds thereof, including, without limitation, all of the Bond Issuer’s rights hereunder. 

Section 6.10. Rule 17g-5 Compliance. The Seller and Bond Issuer agree that any notice, report, document or other information
provided by the Seller or Bond Issuer to any Rating Agency under this Agreement or any other Basic Document to which it is a party, for the purpose of determining the initial credit rating of the Bonds and Certificates or undertaking credit rating
surveillance of the Bonds and Certificates with any Rating Agency, shall be provided, substantially concurrently, to the Servicer for posting on the 17g-5 Website. 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have caused this Phase-In-Recovery Property Purchase
and Sale Agreement to be duly executed by their respective officers as of the day and year first above written. 
  

			
	 [CEI FUNDING LLC] [OE FUNDING LLC] [TE FUNDING LLC]
 Bond Issuer

		
	By:	 	 
	Name:	 	
	Title:	 	
	
	 [[THE CLEVELAND ELECTRIC ILLUMINATING COMPANY] [OHIO EDISON COMPANY] [THE TOLEDO EDISON COMPANY],

Seller

		
	By:	 	 
	Name:	 	
	Title:

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