Document:

EX-4.1.86

 

EXHIBIT 4.1.86

THE CLEVELAND ELECTRIC ILLUMINATING COMPANY

TO

JPMORGAN CHASE BANK

(formerly known as THE CHASE MANHATTAN BANK),

(successor to Morgan Guaranty Trust Company of New York,

formerly Guaranty Trust Company of New York)

as Trustee under

The Cleveland Electric Illuminating Company’s Mortgage

and Deed of Trust, Dated July 1, 1940

Eighty-sixth Supplemental Indenture

Dated as of October 1, 2004

First Mortgage Bonds, Pledge Series B of 2004 due 2030

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     Eighty-sixth Supplemental Indenture, dated as of October 1, 2004, made by
and between THE CLEVELAND ELECTRIC ILLUMINATING COMPANY, a corporation
organized and existing under the laws of the State of Ohio (the “Company”), and
JPMORGAN CHASE BANK (formerly known as THE CHASE MANHATTAN BANK), successor by
merger to The Chase Manhattan Bank (National Association), which in turn was
successor to Morgan Guaranty Trust Company of New York, formerly Guaranty Trust
Company of New York), a corporation organized and existing under the laws of
the State of New York (the “Trustee”), as Trustee under the Mortgage and Deed
of Trust dated July 1, 1940, hereinafter mentioned:

RECITALS

     In order to secure First Mortgage Bonds of the Company (“Bonds”), the
Company has heretofore executed and delivered to the Trustee the Mortgage and
Deed of Trust dated July 1, 1940 (the “1940 Mortgage”) and eighty-five
Supplemental Indentures thereto; and

     The 1940 Mortgage, as supplemented and modified by said Supplemental
Indentures and by this Eighty-sixth Supplemental Indenture, will be
hereinafter collectively referred to as the “Indenture” and this Eighty-sixth
Supplemental Indenture will be hereinafter referred to as “this Supplemental
Indenture”; and

     The Indenture provides among other things that the Company, from time to
time, in addition to the Bonds authorized to be executed, authenticated and
delivered pursuant to other provisions therein, may execute and deliver
additional Bonds to the Trustee and the Trustee shall thereupon authenticate
and deliver such Bonds to or upon the order of the Company; and

     The Company has determined to create pursuant to the provisions of the
Indenture a new series of first mortgage bonds (the “Pledge Bonds”) to be
pledged as security for the payment of certain obligations undertaken by the
Company in connection with the issuance by the Ohio Water Development Authority
(the “Authority”) of $23,255,000 aggregate principal amount of State of Ohio
Pollution Control Revenue Refunding Bonds, Series 2004-B (The Cleveland
Electric Illuminating Company Project) (the “Revenue Bonds”), with such first
mortgage bonds to have the denominations, rates of interest, date of maturity,
redemption provisions and other provisions and agreements in respect thereof as
in this Supplemental Indenture set forth; and

     The Pledge Bonds are to be limited in aggregate principal amount to
$23,255,000 and are to be delivered to J.P. Morgan Trust Company, National
Association, as trustee (hereinafter called the “Revenue Bond Trustee”) under
the Trust Indenture (the “Revenue Bond Indenture”) dated as of October 1, 2004
between the Authority and the Revenue Bond Trustee; and

     The Company, in the exercise of the powers and authority conferred upon
and reserved to it under the provisions of the Indenture, and pursuant to
appropriate resolutions of its Board of Directors, has duly resolved and
determined to make, execute and deliver to the Trustee this Supplemental
Indenture in the form hereof for the purposes herein provided; and

     All conditions and requirements necessary to make this Supplemental
Indenture a valid, binding and legal instrument have been done, performed and
fulfilled and the execution and delivery hereof have been in all respects duly
authorized.

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

     That The Cleveland Electric Illuminating Company, in consideration of the
premises and of the mutual covenants herein contained and of the sum of One
Dollar ($1.00) to it duly paid by the Trustee at or before the ensealing and
delivery of these presents and for other valuable considerations, the receipt
whereof is hereby acknowledged, hereby covenants and agrees to and with the
Trustee and its successors in the Trust under the Indenture, for the benefit of
those who shall hold the Bonds and coupons, if any, issued and to be issued
thereunder and under this Supplemental Indenture as hereinafter provided, as
follows:

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ARTICLE I

CONFIRMATION OF 1940

MORTGAGE AND SUPPLEMENTAL INDENTURES

     The 1940 Mortgage (as modified in Article V of the Supplemental Indenture
dated December 1, 1947, Article V of the Supplemental Indenture dated May 1,
1954, Article V of the Supplemental Indenture dated March 1, 1958, Article V of
the Supplemental Indenture dated January 15, 1969, Article III of the
Supplemental Indenture dated November 23, 1976 and Article III of the
Supplemental Indenture dated April 15, 1985) and the Supplemental Indentures
dated July 1, 1940, August 18, 1944, December 1, 1947, September 1, 1950, June
1, 1951, May 1, 1954, March 1, 1958, April 1, 1959, December 20, 1967, January
15, 1969, November 1, 1969, June 1, 1970, November 15, 1970, May 1, 1974, April
15, 1975, April 16, 1975, May 28, 1975, February 1, 1976, November 23, 1976,
July 26, 1977, September 27, 1977, May 1, 1978, September 1, 1979, April 1,
1980, April 15, 1980, May 28, 1980, June 9, 1980, December 1, 1980, July 28,
1981, August 1, 1981, March 1, 1982, July 15, 1982, September 1, 1982, November
1, 1982, November 15, 1982, May 24, 1983, May 1, 1984, May 23, 1984, June 27,
1984, September 4, 1984, November 14, 1984, November 15, 1984, April 15, 1985,
May 28, 1985, August 1, 1985, September 1, 1985, November 1, 1985, April 15,
1986, May 14, 1986, May 15, 1986, February 25, 1987, October 15, 1987, February
24, 1988, September 15, 1988, May 15, 1989, June 13, 1989, October 15, 1989,
January 1, 1990, June 1, 1990, August 1, 1990, May 1, 1991, May 1, 1992, July
31, 1992, January 1, 1993, February 1, 1993, May 20, 1993, June 1, 1993,
September 15, 1994, May 1, 1995, May 2, 1995, June 1, 1995, July 15, 1995,
August 1, 1995, June 15, 1997, August 1, 1997, October 15, 1997, June 1, 1998
and October 1, 1998, October 1, 1998, April 1, 1999, June 30, 1999, January 15,
2000, May 15, 2002, October 1, 2002 and September 1, 2004, respectively, are
hereby in all respects confirmed.

ARTICLE II

CREATION, PROVISIONS, REDEMPTION,

PRINCIPAL AMOUNT AND FORM OF PLEDGE BONDS

     Section 2.01 The Company hereby creates a new series of Bonds to be issued
under and secured by the Indenture and to be designated as “First Mortgage
Bonds, Pledge Series B of 2004 due 2030” of the Company and hereinabove and
hereinafter called the “Pledge Bonds.” The Pledge Bonds shall be executed,
authenticated and delivered in accordance with the provisions of, and shall in
all respects be subject to, all of the terms, conditions and covenants of the
Indenture.

     Section 2.02 The Pledge Bonds shall be issued as fully registered Bonds
only, without coupons, in the denominations of $1,000 and any integral multiple
thereof.

     Section 2.03 The Pledge Bonds shall be dated the date of authentication,
shall mature on October 1, 2030, and shall bear interest from the time
hereinafter provided at such rate per annum on each interest payment date
hereinafter defined as shall cause the amount of interest payable on such
Pledge Bonds to equal the amount of interest payable on the Revenue Bonds, such
interest to be payable on October 1 and April 1 in each year commencing on the
October 1 or April 1 next succeeding the Initial Interest Accrual Date (as
defined in the form of Pledge Bond hereinafter set forth) (each such date
hereinafter called an “interest payment date”) on and until maturity, or, in
the case of any such Pledge Bonds duly called for redemption, on and until the
redemption date, or in the case of any default by the Company in the payment of
the principal due on any such Pledge Bonds, until the Company’s obligation with
respect to the payment of the principal shall be discharged as provided in the
Indenture.

     The Pledge Bonds shall be payable as to principal and interest at the
agency of the Company in the Borough of Manhattan, The City of New York or the
City of Akron, State of Ohio, in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of public
and private debts.

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     Except as hereinafter provided, each Pledge Bond shall bear interest from
the Initial Interest Accrual Date (as defined in the form of Pledge Bond
hereinafter set forth) until the principal of such Pledge Bond is paid or duly
provided for.

     The interest payable on any interest payment date shall be paid to the
respective persons in whose names the Pledge Bonds shall be registered at the
close of business on the record date therefore, which shall be the 15th day
next preceding such interest payment date, notwithstanding the cancellation of
any such Bond upon any transfer or exchange thereof subsequent to such record
date and prior to such interest payment date; provided, however, that, if and
to the extent the Company shall default in the payment of the interest due on
such interest payment date (other than an interest payment date that is a
redemption date or maturity date), such defaulted interest shall be paid to the
respective persons in whose names such outstanding Pledge Bonds are registered
at the close of business on a date (the “Subsequent Record Date”) not less than
10 days nor more than 15 days next preceding the date of payment of such
defaulted interest, such Subsequent Record Date to be established by the
Company by notice given by mail by or on behalf of the Company to the
registered owners of Pledge Bonds not less than 10 days next preceding such
Subsequent Record Date. If any interest payment date should fall on a day that
is not a business day, then such interest payment date shall be the next
succeeding business day.

     The interest rate on the Pledge Bonds shall be the same rate of interest
per annum as is borne by the Revenue Bonds; provided, however, that if there
are different rates of interest borne by the Revenue Bonds, or if interest is
required to be paid on the Revenue Bonds more frequently than on each October 1
or April 1, the interest rate on the Pledge Bonds shall be the rate that
results in the total amount of interest payable on an interest payment date, a
redemption date or at maturity, as the case may be, or at any other time
interest on the Pledge Bonds is due and payable, to be equal to the total
amount of unpaid interest that has accrued on all then outstanding Revenue
Bonds.

     Section 2.04 In the manner and subject to the limitations provided in the
Indenture, Pledge Bonds may be exchanged for a like aggregate principal amount
of Pledge Bonds of other authorized denominations, in either case without
charge, except for any tax or taxes or other governmental charges incident to
such transfer or exchange, at the office or agency of the Company in the
Borough of Manhattan, The City of New York or the City of Akron, State of Ohio.

     Except as otherwise provided in Section 2.03 of this Article II with
respect to the payment of interest, the Company, the agencies of the Company
and the Trustee may deem and treat the person in whose name a Pledge Bond is
registered as the absolute owner thereof for the purpose of receiving any
payment and for all other purposes.

     Section 2.05 The Pledge Bonds shall be redeemable only to the extent
provided in this Article II, subject to the provisions contained in Article V
of the Indenture and the form of Pledge Bond hereinafter set forth.

     Section 2.06 Subject to the applicable provisions of the Indenture and the
form of Pledge Bond hereinafter set forth, written notice of redemption of
Pledge Bonds pursuant to this Supplemental Indenture shall be given by the
Trustee by mailing to each registered owner of such Pledge Bonds to be redeemed
a notice of such redemption, first class postage prepaid, at its last address
as it shall appear upon the books of the Company for the registration and
transfer of such Pledge Bonds. Any notice of redemption shall be mailed at
least thirty (30) days, but no more than sixty (60) days, prior to the
redemption date.

     Section 2.07 If and when the principal of any Revenue Bonds shall be paid
(other than by the application of the proceeds of any payment by the Bond
Insurer (as defined in the Revenue Bond Indenture) under the Policy (as defined
in the Revenue Bond Indenture)), then there shall be deemed to have been paid a
principal amount of the Pledge Bonds then outstanding which bears the same
ratio to the aggregate principal amount of Pledge Bonds then outstanding as the
principal amount of the Revenue Bonds so paid bears to the aggregate principal
amount of the Revenue Bonds outstanding immediately before such payment;
provided, however, that such payment of Pledge Bonds shall be deemed to have
been made only when and to the extent that notice of such payment of the
principal amount of such Revenue Bonds shall have been given by the Company to
the Trustee. The Trustee may rely upon any such notification by the Company
that such payment of Revenue Bonds has been so made.

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     Section 2.08 The Pledge Bonds shall be redeemed by the Company in whole at
any time prior to maturity at a redemption price of 100% of the principal
amount to be redeemed, plus accrued and unpaid interest to the redemption date,
as stated in the form of the Pledge Bond hereinafter set forth. The Pledge
Bonds shall not otherwise be subject to redemption by the Company prior to
maturity.

     Section 2.09 From and after the Release Date (as defined in the Revenue
Bond Indenture), all Pledge Bonds shall be deemed fully paid, satisfied and
discharged and all obligations of the Company thereunder shall be terminated.
Upon notification of the occurrence of the Release Date from the Company or the
Trustee, each holder of Pledge Bonds shall surrender such Pledge Bonds to the
Trustee for cancellation, whereupon the Trustee shall cancel the same.

     Section 2.10 Pledge Bonds shall not be transferable except (i) to a
successor to the Revenue Bond Trustee under the Revenue Bond Indenture, (ii) in
connection with the exercise of the rights and remedies of the holder thereof
consequent upon an event of default as defined in the Indenture, or (iii) as
may be necessary to comply with a final order of a court of competent
jurisdiction in connection with any bankruptcy or reorganization proceeding of
the Company.

     Section 2.11 The aggregate principal amount of Pledge Bonds which may be
authenticated and delivered hereunder shall not exceed $23,255,000, except as
otherwise provided in the Indenture.

     Section 2.12 The form of the fully registered Pledge Bonds, and of the
Trustee’s certificate of authentication thereon, shall be substantially as
follows:

[FORM OF FULLY REGISTERED PLEDGE BOND]

This Bond is not transferable except (i) to a successor trustee under the Trust
Indenture, dated as of october 1, 2004, between the Ohio Water Development
Authority and J.P. Morgan Trust Company, National Association, as trustee,
referred to herein (ii) in connection with the exercise of the rights and
remedies of the holder hereof consequent upon a “default” as defined in the
Indenture referred to herein or (iii) as may be necessary to comply with a
final order of a court of competent jurisdiction in connection with any
bankruptcy or reorganization proceeding of the Company.

THE CLEVELAND ELECTRIC ILLUMINATING COMPANY

Incorporated under the laws of the State of Ohio

First Mortgage Bond, Pledge Series B of 2004 due 2030

			
	No.                   
	 	$                   

     THE CLEVELAND ELECTRIC ILLUMINATING COMPANY, a corporation organized and
existing under the laws of the State of Ohio (hereinafter called the “Company,”
which term shall include any successor corporation as defined in the Indenture
hereinafter referred to), for value received, hereby promises to pay to                   , or registered assigns, the sum of
                       Dollars ($                   ) or
the aggregate unpaid principal amount hereof, whichever is less, on October 1,
2030, in any coin or currency of the United States of America which at the time
of payment is legal tender for the payment of public and private debts, and to
pay interest on the unpaid principal amount hereof in like coin or currency
from the time hereinafter provided, at the rate specified in Article II of the
Supplemental Indenture (hereinafter referred to), such interest to be payable
on October 1 and April 1 in each year commencing on the October 1 or April 1
next succeeding the Initial Interest Accrual Date (hereinafter defined) (each
such date herein called an “interest payment date”), and on and until the date
of maturity of this Bond, or, if this Bond shall be duly called for redemption,
on and until the redemption date,

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or, if the Company shall default in the payment of the principal amount of
this Bond, until the Company’s obligation with respect to the payment of such
principal shall be discharged as provided in said Indenture. Except as
hereinafter provided, this Bond shall bear interest from the Initial Interest
Accrual Date (hereinafter defined) until the principal of this Bond has been
paid or duly provided for.

     Subject to certain exceptions provided in said Indenture, the interest
payable on any interest payment date shall be paid to the person in whose name
this Bond shall be registered at the close of business on the record date or,
in the case of defaulted interest, on a day preceding the date of payment
thereof established by notice to the registered owner of this Bond in the
manner provided in the Supplemental Indenture (hereinafter referred to).
Principal of and interest on this Bond are payable at the agency of the Company
in the Borough of Manhattan, The City of New York or the City of Akron, State
of Ohio.

     This Bond is one of the duly authorized Bonds of the Company (herein
called the “Bonds”), all issued and to be issued under and equally secured by a
Mortgage and Deed of Trust dated July 1, 1940, executed by the Company to
Guaranty Trust Company of New York (subsequently Morgan Guaranty Trust Company
of New York and then The Chase Manhattan Bank (National Association)), now
succeeded by JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank),
as Trustee (herein called the “Trustee”), and all indentures supplemental
thereto (said Mortgage as so supplemented herein called the “Indenture”) to
which reference is hereby made for a description of the properties mortgaged
and pledged, the nature and extent of the security, the rights of the
registered owner or owners of the Bonds and of the Trustee in respect thereof,
and the terms and conditions upon which the Bonds are, and are to be, secured.
The Bonds may be issued in series, for various principal sums, may mature at
different times, may bear interest at different rates and may otherwise vary as
in the Indenture provided. This Bond is one of a series designated as the First
Mortgage Bonds, Pledge Series B of 2004 due 2030 (herein called the “Pledge
Bonds”) limited, except as otherwise provided in the Indenture, in aggregate
principal amount to $23,255,000, issued under and secured by the Indenture and
described in the Eighty-sixth Supplemental Indenture dated as of October 1,
2004, between the Company and the Trustee (herein called the “Supplemental
Indenture”).

     The Pledge Bonds have been delivered by the Company to J.P. Morgan Trust
Company, National Association, as trustee (hereinafter called the “Revenue Bond
Trustee”) under the Trust Indenture (the “Revenue Bond Indenture”) dated as of
October 1, 2004 between the Ohio Water Development Authority (the “Authority”)
and the Revenue Bond Trustee securing $23,255,000 of the Authority’s State of
Ohio Pollution Control Revenue Refunding Bonds, Series 2004-B (The Cleveland
Electric Illuminating Company Project), which have been issued on behalf of the
Company (the “Revenue Bonds”).

     If and when the principal of any Revenue Bonds is paid (other than by the
application of the proceeds of any payment by the Bond Insurer (as defined in
the Revenue Bond Indenture) under the Policy (as defined in the Revenue Bond
Indenture)), then there is deemed to be paid a principal amount of the Pledge
Bonds then outstanding which bears the same ratio to the aggregate principal
amount of Pledge Bonds then outstanding as the aggregate principal amount of
the Revenue Bonds so paid bears to the aggregate principal amount of the
Revenue Bonds outstanding immediately before such payment; provided, however,
that such payment of Pledge Bonds is deemed to be made only when and to the
extent that notice of such payment of such Revenue Bonds is given by the
Company to the Trustee.

     The Pledge Bonds shall be redeemed by the Company in whole at any time
prior to maturity at a redemption price of 100% of the principal amount to be
redeemed, plus accrued and unpaid interest to the redemption date, but only if
the Trustee shall receive written advice from the Revenue Bond Trustee stating
that the principal amount of all the Revenue Bonds then outstanding under the
Revenue Bond Indenture has been declared due and payable pursuant to the
provisions of Section 11.02 of the Revenue Bond Indenture, specifying the date
of the accelerated maturity of such Revenue Bonds and the date or dates from
which interest on the Revenue Bonds issued under the Revenue Bond Indenture has
then accrued and is unpaid (specifying the rate or rates of such accrual and
the principal amount of the particular Revenue Bonds to which such rates
apply), stating such declaration of maturity has not been annulled and
demanding payment of the principal amount of the Pledge Bonds plus accrued
interest thereon to the date fixed for such redemption. The date fixed for such
redemption shall be set forth in the aforesaid written advice and shall not be
(i) earlier than the later of (a) the date specified in such written advice as
the date of accelerated maturity of the Revenue Bonds then outstanding under
the Revenue Bond Indenture, and (b), unless the Revenue Bond Trustee, as sole
holder of the Pledge Bonds, waives the requirement of notice of such

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redemption, forty five days after the Trustee’s receipt of such written
advice and (ii) later than fifty days after such date of accelerated maturity.
Upon mailing of notice of redemption (or if the requirement for such notice is
waived, upon receipt of the aforesaid written advice), the earliest date from
which unpaid interest on the Revenue Bonds has then accrued (as specified by
the Revenue Bond Trustee) shall become the initial interest accrual date (the
“Initial Interest Accrual Date”) with respect to the Pledge Bonds; provided,
however, on any demand for payment of the principal amount thereof at maturity
as a result of the principal of the Revenue Bonds becoming due and payable on
the maturity date of the Pledge Bonds, the earliest date from which unpaid
interest on the Revenue Bonds has then accrued shall become the Initial
Interest Accrual Date with respect to the Pledge Bonds, such date, together
with each other different date from which unpaid interest on the Revenue Bonds
has then accrued, to be as stated in a written notice from the Revenue Bond
Trustee to the Trustee, which notice shall also specify the rate or rates of
such accrual and the principal amount of the particular Revenue Bonds to which
such rate or rates apply. The aforementioned notice of redemption (or if the
requirement for such notice is waived, such redemption) shall become null and
void for all purposes under the Indenture (including the fixing of the Initial
Interest Accrual Date with respect to the bonds of this series) upon receipt by
the Trustee of written notice from the Revenue Bond Trustee of the annulment of
the acceleration of the maturity of the Revenue Bonds then outstanding under
the Revenue Bond Indenture and of the rescission of the aforesaid written
advice prior to the redemption date specified in such notice of redemption (or
if the requirement for such notice is waived, specified in the aforesaid
written advice), and thereupon no redemption of the Pledge Bonds and no payment
in respect thereof as specified in such notice of redemption (or if the
requirement for such notice is waived, as specified in the aforesaid written
advice) shall be effected or required. But no such rescission shall extend to
any subsequent written advice from the Revenue Bond Trustee or impair any right
consequent on such subsequent written advice.

     Unless the requirement for such notice is waived in accordance with the
preceding paragraph, any redemption of the Pledge Bonds shall be made after
written notice to the registered owner or owners of such Bonds, sent by the
Trustee by first class mail postage prepaid, at least 30 days and not more than
60 days before the redemption date, unless a shorter notice period is consented
to in writing by the registered owner or owners of all Pledge Bonds and such
consent is filed with the Trustee, and such redemption and notice shall be made
in the manner provided in Article II of the Supplemental Indenture, subject to
the provisions of the Indenture.

     In the Forty-Third Supplemental Indenture dated April 15, 1985 between the
Company and the Trustee, the Company has modified, in certain respects, the
redemption provisions in the Indenture effective only with respect to the Bonds
of all series established or created in said Forty-Third Supplemental Indenture
and all supplemental indentures dated after May 28, 1985.

     To the extent permitted by and as provided in the Indenture, modifications
or alterations of the Indenture, or of any indenture supplemental thereto, and
of the rights and obligations of the Company and of the holders of the Bonds
and coupons may be made with the consent of the Company by an affirmative vote
of not less than 60% in principal amount of the Bonds entitled to vote then
outstanding, at a meeting of Bondholders called and held as provided in the
Indenture, and, in case one or more but less than all of the series of Bonds
then outstanding under the Indenture are so affected, by an affirmative vote of
not less than 60% in principal amount of the Bonds of any series entitled to
vote then outstanding and affected by such modification or alteration;
provided, however, that no such modification or alteration shall be made which
will affect the terms of payment of the principal of or interest on this Bond.
Pursuant to the Nineteenth Supplemental Indenture dated November 23, 1976
between the Company and the Trustee, the Company has reserved the right to
modify the Indenture to except and exclude nuclear fuel (to the extent, if any,
not otherwise excepted and excluded) from the lien and operation thereof
without any vote, consent or other action by the holders of Bonds.

     If an event of default, as defined in the Indenture, shall occur, the
principal of all the Bonds at any such time outstanding under the Indenture may
be declared or may become due and payable, upon the conditions and in the
manner and with the effect provided in the Indenture. The Indenture provides
that such declaration may in certain events be waived by the holders of a
majority in principal amount of the Bonds outstanding.

     Subject to the limitations provided in the Indenture and Section 2.10 of
the Supplemental Indenture, this Bond is transferable by the registered owner
hereof, in person or by duly authorized attorney, on the books of the Company
to be kept for that purpose at the office or agency of the Company in the
Borough of Manhattan, The City of New York or the City of Akron, State of Ohio
upon surrender and cancellation of this Bond, and upon

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presentation of a duly executed written instrument of transfer, and
thereupon new fully registered Pledge Bonds of the same series, of the same
aggregate principal amount and in authorized denominations will be issued to
the transferee or transferees in exchange herefor, and this Bond, with or
without others of the same series, may in like manner be exchanged for one or
more new fully registered Pledge Bonds of the same series of other authorized
denominations but of the same aggregate principal amount; all without charge
except for any tax or taxes or other governmental charges incidental to such
transfer or exchange and all subject to the terms and conditions set forth in
the Indenture. The Company, the agencies of the Company and the Trustee may
deem and treat the person in whose name this Bond is registered as the absolute
owner hereof for the purpose of receiving any payment and for all other
purposes.

     From and after the Release Date (as defined in the Revenue Bond
Indenture), all Pledge Bonds shall be deemed fully paid, satisfied and
discharged and all obligations of the Company hereunder shall be terminated.
Upon notification of the occurrence of the Release Date from the Company or the
Trustee, each holder of Pledge Bonds shall surrender such Pledge Bonds to the
Trustee for cancellation, whereupon the Trustee shall cancel the same.

     No recourse shall be had for the payment of the principal of or the
interest on this Bond, or for any claim based hereon or on the Indenture or any
indenture supplemental thereto, against any incorporator, or against any
stockholder, director or officer, past, present or future, of the Company, or
of any predecessor or successor corporation, as such, either directly or
through the Company or any such predecessor or successor corporation, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise, all such liability, whether at common
law, in equity, by any constitution or statute or otherwise, of incorporators,
stockholders, directors or officers being released by every owner hereof by the
acceptance of this Bond and as part of the consideration for the issue hereof,
and being likewise released by the terms of the Indenture.

     This Bond shall not be entitled to any benefit under the Indenture or any
indenture supplemental thereto, or become valid or obligatory for any purpose,
until the Trustee under the Indenture, or a successor trustee thereto under the
Indenture, shall have signed the form of certificate of authentication endorsed
hereon.

     IN WITNESS WHEREOF, The Cleveland Electric Illuminating Company has caused
this Bond to be signed in its name by its President or a Vice President (whose
signature may be manual or a facsimile thereof) and its corporate seal (or a
facsimile thereof) to be hereto affixed and attested by its Corporate Secretary
or an Assistant Corporate Secretary (whose signature may be manual or a
facsimile thereof).

	 	 	 	 	 
	Dated:	 	THE CLEVELAND ELECTRIC ILLUMINATING COMPANY
	 
	 	 	 	 
	Attest:

	 	By:	 	 
	

	 	 	 	
                Vice
President
	 
	 	 	 	 
	

Corporate Secretary	 	 

[FORM OF TRUSTEE’S CERTIFICATE OF AUTHENTICATION]

     This Bond is one of the Bonds of the series designated and described in
the within-mentioned Indenture and Supplemental Indenture.

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, TRUSTEE

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 

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[END OF FORM OF FULLY REGISTERED PLEDGE BOND]

ARTICLE III

THE TRUSTEE

     Section 3.01 The Trustee hereby accepts the trusts hereby declared and
provided upon the terms and conditions in the Indenture set forth and upon the
terms and conditions set forth in this Article III.

     Section 3.02 The Trustee shall not be responsible in any manner whatsoever
for or in respect of the validity or sufficiency of this Supplemental Indenture
or the due execution hereof by the Company or for or in respect of the recitals
contained herein, all of which recitals are made by the Company solely. In
general, each and every term and condition contained in Article XIII of the
Indenture shall apply to this Supplemental Indenture with the same force and
effect as if the same were herein set forth in full, with such omissions,
variations and modifications thereof as may be appropriate.

     Section 3.03 For purposes of this Supplemental Indenture (a) the Trustee
may conclusively rely and shall be protected in acting upon the written demand
from, or certificate of, any agency duly appointed by resolution of the Board
of Directors of the Company or any officer’s certificate or opinion of counsel,
as to the truth of the statements and the correctness of the opinions expressed
therein, without independent investigation or verification thereof, subject to
Article XIII of the Indenture and (b) a written demand from, or certificate of,
an agency of the Company shall mean a written demand or certificate executed by
the president, any vice president or any trust officer of, or any other person
authorized to act for, such agency, as such.

     Section 3.04 The Company shall cause any agency of the Company, other than
the Trustee, which it may appoint from time to time to act as such agency in
respect of the Pledge Bonds, to execute and deliver to the Trustee an
instrument in which such agency shall:

          (a) Agree to keep and maintain, and furnish to the Trustee from time to
time as reasonably requested by the Trustee, appropriate records of all
transactions carried out by it as such agency and to furnish the Trustee such
other information and reports as the Trustee may reasonably require;

          (b) Certify that it is eligible for appointment as such agency and agree
to notify the Trustee promptly if it shall cease to be so eligible; and

          (c) Agree to indemnify the Trustee, in a manner satisfactory to the
Trustee, against any loss, liability or expense incurred by, and defend any
claim asserted against, the Trustee by reason of any acts or failures to act as
such agency, except for any liability resulting from any action taken by it at
the specific direction of the Trustee;

provided, however, that the Company, in lieu of causing any such agency to
furnish such an instrument, may make such other arrangements with the Trustee
in respect of any such agency as shall be satisfactory to the Trustee.

     Section 3.05 The Trustee shall advise the Company in writing of the
receipt of any notification provided for pursuant to the redemption provisions
contained in the form of the Pledge Bonds hereinabove set forth and Section
2.08 of Article II of this Supplemental Indenture.

9

 

ARTICLE IV

MISCELLANEOUS PROVISIONS

     This Supplemental Indenture may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original, but such
counterparts shall together constitute but one and the same instrument.

10

 

EXECUTION

     IN WITNESS WHEREOF, said The Cleveland Electric Illuminating Company has
caused this Supplemental Indenture to be executed on its behalf by its
President or one of its Vice Presidents and its corporate seal to be hereto
affixed and said seal and this Supplemental Indenture to be attested by its
Corporate Secretary or an Assistant Corporate Secretary, and said JPMorgan
Chase Bank, in evidence of its acceptance of the trust hereby created, has
caused this Supplemental Indenture to be executed on its behalf by one of its
Vice Presidents or one of its Trust Officers, and its corporate seal to be
hereto affixed and said seal and this Supplemental Indenture to be attested by
one of its Secretaries or authorized officers, all as of the day and year first
above written.

	 	 	 	 	 
	 	THE CLEVELAND ELECTRIC ILLUMINATING COMPANY

 	 
	 	By:  	 	 
	 	 	Richard H. Marsh, Senior Vice President 	 
	 	 	and Chief Financial Officer 	 
	 

[SEAL]

Attest:

David W. Whitehead,
Corporate Secretary

Signed, sealed and acknowledged by

The Cleveland Electric Illuminating Company
in the presence of

James G. Smith

Edward J. Morgan

As Witnesses

11

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, AS TRUSTEE

 	 
	 	By:  	 	 
	 	 	                   , Vice President 	 
	 	 	 	 
	 

Attest:

     
             , Trust
Officer

Signed, sealed and acknowledged by

JPMorgan Chase Bank
in the presence of

Print Name:

Print Name:

As witnesses

12

 

	 	 	 	 	 	 	 
	STATE OF OHIO

	 	 	)	 	 	 
	

	 	 	:	 	 	ss.:
	COUNTY OF SUMMIT

	 	 	)	 	 	 

     On this                     day of September 2004, before me personally appeared Richard
H. Marsh and David W. Whitehead, to me personally known, who being by me
severally duly sworn, did say that they are a Senior Vice President and Chief
Financial Officer and the Corporate Secretary, respectively, of The Cleveland
Electric Illuminating Company, that the seal affixed to the foregoing
instrument is the corporate seal of said corporation and that said instrument
was signed and sealed in behalf of said corporation by authority of its Board
of Directors; and said officers severally acknowledged said instrument to the
free act and deed of said corporation.

	 	 	 	 	 
	 	

Notary Public

Susie M. Hoisten

Residence – Summit County

State Wide Jurisdiction, Ohio

My Commission expires December 9, 2006

 	 

13

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	

	 	 	:	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     On this                     day of September 2004, before me personally appeared
                    and                    , to me personally known, who being by
me severally duly sworn, did say that they are a Vice President and a Trust
Officer, respectively, of JPMorgan Chase Bank, that the seal affixed to the
foregoing instrument is the corporate seal of said corporation and that said
instrument was signed and sealed in behalf of said corporation by authority of
its Board of Directors; and said officers severally acknowledged said
instrument to the free act and deed of said corporation.

	 	 	 	 	 
	 	

Notary Public, State of New York

No.                    

Qualified in                     County

Certificate Filed in                     County

Commission Expires                    

 	 

This instrument prepared by: FirstEnergy Corp., 76 South Main Street,
Akron, Ohio 44308.

14EX-4.2.56

 

EXHIBIT 4.2.56

THE TOLEDO EDISON COMPANY

TO

JPMORGAN CHASE BANK

(formerly known as THE CHASE MANHATTAN BANK)

Trustee.

Fifty-fourth Supplemental Indenture

Dated as of September 1, 2004

(Supplemental to Indenture of Mortgage

and Deed of Trust dated as of April 1, 1947)

First Mortgage Bonds, Pledge Series A of 2004 due 2033

 

 

     Fifty-fourth Supplemental Indenture, dated as of September 1, 2004,
between The Toledo Edison Company, a corporation organized and existing under
the laws of the State of Ohio (hereinafter called the “Company”), and JPMorgan
Chase Bank (formerly known as The Chase Manhattan Bank), a corporation existing
under the laws of the State of New York (hereinafter called the “Trustee”), as
Trustee.

RECITALS

     The Company has heretofore executed and delivered an Indenture of Mortgage
and Deed of Trust dated as of April 1, 1947 (hereinafter referred to as the
“Original Indenture”) to The Chase National Bank of the City of New York,
predecessor Trustee, to secure an issue of First Mortgage Bonds of the Company,
issuable in series, and created thereunder an initial series of bonds
designated as First Mortgage Bonds, 27⁄8% Series due 1977; and

     The Company has heretofore executed and delivered to The Chase National
Bank of the City of New York, predecessor Trustee, four Supplemental Indentures
supplementing the Original Indenture dated, respectively, September 1, 1948,
April 1, 1949, December 1, 1950 and March 1, 1954 and has heretofore executed
and delivered to The Chase Manhattan Bank, which on March 31, 1955, became the
Trustee under the Original Indenture by virtue of the merger of The Chase
National Bank of the City of New York into President and Directors of The
Manhattan Company under the name of The Chase Manhattan Bank, the Fifth and the
Sixth Supplemental Indentures dated, respectively, February 1, 1956, and May 1,
1958, supplementing the Original Indenture; and

     The Chase Manhattan Bank was converted into a national banking association
under the name The Chase Manhattan Bank (National Association), effective
September 23, 1965; and by virtue of said conversion the continuity of the
business of The Chase Manhattan Bank, including its business of acting as
corporate trustee, and its corporate existence, was not affected, so that The
Chase Manhattan Bank (National Association) was vested with all the trusts,
powers, discretion, immunities, privileges and all other matters as were vested
in said The Chase Manhattan Bank under the Indenture (hereinafter defined),
with like effect as if originally named as Trustee therein; and

     The Company has heretofore executed and delivered to The Chase Manhattan
Bank (National Association) forty-one Supplemental Indentures dated,
respectively, as follows: Seventh, August 1, 1967, Eighth, November 1, 1970,
Ninth, August 1, 1972, Tenth, November 1, 1973, Eleventh, July 1, 1974,
Twelfth, October 1, 1975, Thirteenth, June 1, 1976, Fourteenth, October 1,
1978, Fifteenth, September 1, 1979, Sixteenth, September 1, 1980, Seventeenth,
October 1, 1980, Eighteenth, April 1, 1981, Nineteenth, November 1, 1981,
Twentieth, June 1, 1982, Twenty-first, September 1, 1982, Twenty-second, April
1, 1983, Twenty-third, December 1, 1983, Twenty-fourth, April 1, 1984,
Twenty-fifth, October 15, 1984, Twenty-sixth, October 15, 1984, Twenty-seventh,
August 1, 1985, Twenty-eighth, August 1, 1985, Twenty-ninth, December 1, 1985,
Thirtieth, March 1, 1986, Thirty-first, October 15, 1987, Thirty-second,
September 15, 1988, Thirty-third, June 15, 1989, Thirty-fourth, October 15,
1989, Thirty-fifth, May 15, 1990, Thirty-sixth, March 1, 1991, Thirty-seventh,
May 1, 1992, Thirty-eighth, August 1, 1992, Thirty-ninth, October 1, 1992,
Fortieth, January 1, 1993, Forty-first, September 15, 1994, Forty-second, May
1, 1995, Forty-third, June 1, 1995, Forty-fourth, July 14, 1995, Forty-fifth,
July 15, 1995, Forty-sixth, June 15, 1997 and Forty-seventh, August 1, 1997
supplementing the Original Indenture; and

     The Chase Manhattan Bank (National Association), Successor Trustee, was
merged on July 1, 1996, with and into Chemical Bank, a New York banking
corporation, which changed its name to The Chase Manhattan Bank, and which
became the Trustee under the Original Indenture by virtue of such merger; and

     The Company has heretofore executed and delivered to The Chase Manhattan
Bank four Supplemental Indentures dated as follows: Forty-eighth, June 1, 1998,
Forty-ninth, January 15, 2000, Fiftieth, May 1, 2000 and Fifty-first, September
1, 2000 supplementary to the Original Indenture; and

     The Chase Manhattan Bank changed its name to JPMorgan Chase Bank on
November 10, 2001; and

2

 

     The Company has heretofore executed and delivered to JPMorgan Chase Bank
the Fifty-second Supplemental Indenture dated as of October 1, 2002 and
Fifty-third Supplemental Indenture dated as of April 1, 2003 supplementary to
the Original Indenture (the Original Indenture, all the aforementioned
Supplemental Indentures, this Fifty-fourth Supplemental Indenture and any other
indentures supplemental to the Original Indenture are herein collectively
called the “Indenture” and this Fifty-fourth Supplemental Indenture is
hereinafter called this “Supplemental Indenture”); and

     The Company covenanted in and by the Original Indenture to execute and
deliver such further instruments and do such further acts as may be necessary
or proper to carry out more effectually the purposes of the Original Indenture
and to make subject to the lien thereof property acquired after the execution
and delivery of the Original Indenture; and

     Under Article 3 of the Original Indenture, the Company is authorized to
issue additional bonds upon the terms and conditions expressed in the Original
Indenture; and

     The Company has determined to create pursuant to the provisions of the
Indenture a new series of first mortgage bonds (the “Bonds of this Series”), to
be pledged as security for the payment of certain obligations undertaken by the
Company in connection with the issuance by the Ohio Water Development Authority
(the “Authority”) of $30,500,000 aggregate principal amount of the Authority’s
State of Ohio Pollution Control Revenue Refunding Bonds, Series 2004-A (The
Toledo Edison Company Project) on behalf of the Company (the “Revenue Bonds”),
with such Bonds of this Series to have the denominations, rate of interest,
date of maturity, redemption provisions and other provisions and agreements in
respect thereof as in this Supplemental Indenture set forth; and

     The Bonds of this Series are to be limited in aggregate principal amount
to $30,500,000, are to be delivered to The Bank of New York Trust Company, N.A,
as trustee (hereinafter called the “Revenue Bond Trustee”), under the Trust
Indenture (the “Revenue Bond Indenture”) dated as of September 1, 2004 between
the Authority and the Revenue Bond Trustee; and

     The Company, by appropriate corporate action, has duly resolved and
determined to execute this Supplemental Indenture for the purpose of providing
for the creation of the Bonds of this Series and of specifying the form,
provisions and particulars thereof as in said Original Indenture, as amended,
provided or permitted, including the issuance only of fully registered Bonds of
this Series, and of giving to the Bonds of this Series the protection and
security of the Indenture; and

     The text of the Bonds of this Series is to be substantially in the
following form:

[Form of Fully Registered Bond of this Series]

This Bond is not transferable except (i) to a successor trustee under the Trust
Indenture, dated as of September 1, 2004, between The Ohio Water Development
Authority and The Bank of New York Trust Company, N.A, as trustee, referred to
herein (ii) in connection with the exercise of the rights and remedies of the
holder hereof consequent upon a “default” as defined in the Indenture referred
to herein or (iii) as may be necessary to comply with a final order of a court
of competent jurisdiction in connection with any bankruptcy or reorganization
proceeding of the Company.

3

 

The Toledo Edison Company

First Mortgage Bond, Pledge Series A of 2004 due 2033

			
	No.
	 	$                   

     The Toledo Edison Company, an Ohio corporation (hereinafter called the
Company), for value received, hereby promises to pay to                   , or registered assigns, the principal sum of
                    dollars ($                   ) or the aggregate unpaid principal
amount hereof, whichever is less, on September 1, 2033, in any coin or currency
of the United States of America which at the time of such payment shall be
legal tender for the payment of public and private debts, and to pay interest
on the unpaid principal amount hereof in like coin or currency to the
registered owner hereof from the Initial Interest Accrual Date (hereinafter
defined) at the rate specified in Article I of the Supplemental Indenture
(hereinafter referred to), such interest to be payable on September 1 and March
1 in each year commencing on the September 1 or March 1 next succeeding the
Initial Interest Accrual Date (hereinafter defined) (each such date herein
called an “interest payment date”), and on and until the date of maturity of
this Bond, or, if this Bond shall be duly called for redemption, on and until
the redemption date, or, if the Company shall default in the payment of the
principal amount of this Bond, until the Company’s obligation with respect to
the payment of such principal shall be discharged as provided in said
Indenture. Except as hereinafter provided, this Bond shall bear interest from
the Initial Interest Accrual Date (hereinafter defined) until the principal of
this Bond has been paid or duly provided for. Principal of and interest on this
Bond are payable at the office or agency of the Company in the City of Akron,
State of Ohio.

     This Bond is one of an issue of Bonds of the Company, known as its First
Mortgage Bonds, issued and to be issued in one or more series under and equally
and ratably secured (except as any sinking, amortization, improvement or other
fund, established in accordance with the provisions of the Indenture
hereinafter mentioned, may afford additional security for the Bonds of any
particular series) by a certain Indenture of Mortgage and Deed of Trust, dated
as of April 1, 1947 (hereinafter called the “Original Indenture”), made by the
Company to The Chase National Bank of the City of New York (JPMorgan Chase Bank
(formerly known as The Chase Manhattan Bank), successor), as Trustee
(hereinafter called the “Trustee”), and by certain indentures supplemental
thereto, including the Fifty-fourth Supplemental Indenture dated as of
September 1, 2004 (the Original Indenture and said indentures supplemental
thereto herein collectively called the “Indenture” and said Fifty-fourth
Supplemental Indenture hereinafter called the “Supplemental Indenture”), to
which Indenture reference is hereby made for a description of the property
mortgaged, the nature and extent of the security, the rights and limitations of
rights of the Company, the Trustee, and the holders of said Bonds and of the
coupons appurtenant to coupon Bonds, under the Indenture, and the terms and
conditions upon which said Bonds are and are to be issued and secured, to all
of the provisions of which Indenture and of all such supplemental indentures in
respect of such security, including the provisions of the Indenture permitting
the issue of Bonds of any series for property which, under the restrictions and
limitations therein specified, may be subject to liens prior to the lien of the
Indenture, the holder, by accepting this Bond, assents. To the extent
permitted by and as provided in the Indenture, the rights and obligations of
the Company and of the holders of said Bonds and coupons (including those
pertaining to any sinking or other fund) may be changed and modified, with the
consent of the Company, by the holders of at least 75% in aggregate principal
amount of the Bonds then outstanding, such percentage being determined as
provided in the Indenture; provided, however, that in case such changes and
modifications affect one or more but less than all series of Bonds then
outstanding, they shall be required to be adopted only by the affirmative vote
of the holders of at least 75% in aggregate principal amount of outstanding
Bonds of such one or more series so affected; and further provided, that
without the consent of the holder hereof no such change or modification shall
be made which will extend the time of payment of the principal of, or of the
interest or premium, if any, on this Bond or reduce the principal amount hereof
or the rate of interest or the premium, if any, hereon, or effect any other
modification of the terms of payment of such principal or interest, or premium,
if any, or will permit the creation of any lien ranking prior to or on a parity
with the lien of the Indenture on any of the mortgaged property, or will
deprive the holder hereof of the benefit of a lien upon the mortgaged property
for the security of this Bond, or will reduce the percentage of Bonds required
for the adoption of changes or modifications as aforesaid.

     This Bond is one of a series of Bonds designated as the First Mortgage
Bonds, Pledge Series A of 2004 due 2033, of the Company (herein called the
“Bonds of this Series”) limited, except as otherwise provided in the

4

 

Indenture, in aggregate principal amount to $30,500,000, and is issued
under and secured by the Supplemental Indenture.

     The Bonds of this Series have been issued by the Company to The Bank of
New York Trust Company, N.A, as trustee (such trustee and any successor trustee
being hereinafter referred to as the “Revenue Bond Trustee”) for $30,500,000
aggregate principal amount of the State of Ohio Pollution Control Revenue
Refunding Bonds, Series 2004-A (The Toledo Edison Company Project) (the
“Revenue Bonds”) issued on behalf of the Company by the Ohio Water Development
Authority (the “Authority”) and under the Trust Indenture, dated as of
September 1, 2004 (the “Revenue Bond Indenture”), between the Authority and the
Revenue Bond Trustee to secure the payment of the principal of and interest on
the Revenue Bonds.

     If and when the principal of any Revenue Bonds is paid (other than by the
application of the proceeds of any payment by the Bond Insurer (as defined in
the Revenue Bond Indenture) under the Policy (as defined in the Revenue Bond
Indenture)), then there is deemed to be paid a principal amount of the Bonds of
this Series then outstanding which bears the same ratio to the aggregate
principal amount of Bonds of this Series then outstanding as the aggregate
principal amount of the Revenue Bonds so paid bears to the aggregate principal
amount of the Revenue Bonds outstanding immediately before such payment;
provided, however, that such payment of Bonds of this Series is deemed to be
made only when and to the extent that notice of such payment of such Revenue
Bonds is given by the Company to the Trustee.

     The Bonds of this Series shall be redeemed by the Company in whole at any
time prior to maturity at a redemption price of 100% of the principal amount to
be redeemed, plus accrued and unpaid interest to the redemption date, but only
if the Trustee shall receive written advice from the Revenue Bond Trustee
stating that the principal amount of all the Revenue Bonds then outstanding
under the Revenue Bond Indenture has been declared due and payable pursuant to
the provisions of Section 11.02 of the Revenue Bond Indenture, specifying the
date of the accelerated maturity of such Revenue Bonds and the date or dates
from which interest on the Revenue Bonds issued under the Revenue Bond
Indenture has then accrued and is unpaid (specifying the rate or rates of such
accrual and the principal amount of the particular Revenue Bonds to which such
rates apply), stating such declaration of maturity has not been annulled and
demanding payment of the principal amount of the Bonds of this Series plus
accrued interest thereon to the date fixed for such redemption. The date fixed
for such redemption shall be not earlier than the date specified in the
aforesaid written advice as the date of accelerated maturity of the Revenue
Bonds then outstanding under the Revenue Bond Indenture, and not later than
forty-five days after such date of accelerated maturity. Upon mailing of notice
of redemption, the earliest date from which unpaid interest on the Revenue
Bonds has then accrued (as specified by the Revenue Bond Trustee) shall become
the initial interest accrual date (the “Initial Interest Accrual Date”) with
respect to the Bonds of this Series; provided, however, on any demand for
payment of the principal amount thereof at maturity as a result of the
principal of the Revenue Bonds becoming due and payable on the maturity date of
the Bonds of this Series, the earliest date from which unpaid interest on the
Revenue Bonds has then accrued shall become the Initial Interest Accrual Date
with respect to the Bonds of this Series, such date, together with each other
different date from which unpaid interest on the Revenue Bonds has then
accrued, to be as stated in a written notice from the Revenue Bond Trustee to
the Trustee, which notice shall also specify the rate or rates of such accrual
and the principal amount of the particular Revenue Bonds to which such rate or
rates apply. The aforementioned notice of redemption shall become null and void
for all purposes under the Indenture (including the fixing of the Initial
Interest Accrual Date with respect to the bonds of this series) upon receipt by
the Trustee of written notice from the Revenue Bond Trustee of the annulment of
the acceleration of the maturity of the Revenue Bonds then outstanding under
the Revenue Bond Indenture and of the rescission of the aforesaid written
advice prior to the redemption date specified in such notice of redemption, and
thereupon no redemption of the Bonds of this Series and no payment in respect
thereof as specified in such notice of redemption shall be effected or
required. But no such rescission shall extend to any subsequent written advice
from the Revenue Bond Trustee or impair any right consequent on such subsequent
written advice.

     Any redemption of the Bonds of this Series shall be made in accordance
with the applicable provisions of Sections 5.02, 5.03, 5.04 and 5.06 of the
Original Indenture, unless and to the extent waived in writing by the
registered owner or owners of all Bonds of this Series and such waiver is filed
with the Trustee.

     To the extent permitted by and as provided in the Indenture, the rights
and obligations of the Company and of the holders of said Bonds and coupons
(including those pertaining to any sinking or other fund) may be changed

5

 

and modified, with the consent of the Company by the holders of at least
75% in aggregate principal amount of the Bonds then outstanding, such
percentage being determined as provided in the Indenture; provided, however,
that in case such changes and modifications affect one or more but less than
all series of Bonds then outstanding, they shall be required to be adopted only
by the affirmative vote of the holders of at least 75% in aggregate principal
amount of outstanding Bonds of such one or more series so affected; and further
provided, that without the consent of the holder hereof no such change or
modification shall be made which will extend the time of payment of the
principal of or interest on this Bond or reduce the principal amount hereof or
the rate of interest hereon, or affect any other modification of the terms of
payment of such principal or interest or will permit the creation of any lien
ranking prior to or on a party with the lien of the Indenture on any of the
mortgaged property, or will deprive the holder hereof of the benefit of a lien
upon the mortgaged property for the security of this Bond, or will reduce the
percentage of Bonds required for the adoption of changes or modifications as
aforesaid.

     The principal of this Bond may be declared or may become due before the
maturity hereof, on the conditions, in the manner and at the times set forth in
the Indenture, upon the happening of a default as therein defined.

     The Bonds of this Series are not transferable except (i) to a successor
trustee under the Authority Bond Indenture, (ii) in connection with the
exercise of the rights and remedies of the holder hereof consequent upon a
default, as defined in the Indenture or (iii) as may be necessary to comply
with a final order of a court of competent jurisdiction in connection with any
bankruptcy or reorganization proceeding of the Company.

     Subject to the limitations provided in the Indenture and in Section 10 of
Article I of the Supplemental Indenture, this Bond is transferable by the
registered owner hereof, in person or by duly authorized attorney, on the books
of the Company to be kept for that purpose at the office or agency of the
Company in the Borough of Manhattan, The City of New York or the City of Akron,
State of Ohio, upon surrender and cancellation of this Bond, and upon
presentation of a duly executed written instrument of transfer, and thereupon a
new fully registered bond or bonds of the same series, of the same aggregate
principal amount and in authorized denominations will be issued to the
transferee or transferees in exchange herefor; and this Bond, with or without
others of the same series, may in like manner be exchanged for one or more new
fully registered Bonds of this Series of other authorized denominations but of
the same aggregate principal amount; all without charge except for any tax or
taxes or other governmental charges incidental to such transfer or exchange and
all subject to the terms and conditions set forth in the Indenture.

     From and after the Release Date (as defined in the Revenue Bond
Indenture), all Bonds of this Series shall be deemed fully paid, satisfied and
discharged and all obligations of the Company hereunder shall be terminated.
Upon notification of the occurrence of the Release Date from the Company or the
Trustee, each holder of the Bonds of this Series shall surrender such Bonds of
this Series to the Trustee for cancellation, whereupon the Trustee shall cancel
the same.

     No recourse under or upon any covenant or obligation of the Indenture, or
of any indenture supplemental thereto, or of this Bond, for the payment of the
principal of or the interest on this Bond, or for any claim based thereon, or
otherwise in any manner in respect thereof, shall be had against any
incorporator, subscriber to the capital stock, stockholder, officer or
director, as such, of the Company, whether former, present or future, either
directly or indirectly through the Company or any predecessor or successor
corporation or the Trustee, by the enforcement of any subscription to capital
stock, assessment or otherwise, or by any legal or equitable proceeding by
virtue of any constitution, statute, or otherwise (including, without limiting
the generality of the foregoing, any proceeding to enforce any claimed
liability of stockholders of the Company based upon any theory of disregarding
the corporate entity of the Company or upon any theory that the Company was
acting as the agent or instrumentality of the stockholders), any and all such
liability of incorporators, stockholders, subscribers, officers and directors,
as such, being released by the holder hereof, by the acceptance of this Bond,
and being likewise waived and released by the terms of the Indenture.

     This Bond shall not be valid or become obligatory for any purpose until
the certificate of authentication endorsed hereon shall have been signed by
JPMorgan Chase Bank or its successor, as Trustee under the Indenture.

6

 

     In Witness Whereof, The Toledo Edison Company has caused this Bond to be
signed in its name by its President or a Vice-President and its corporate seal
to be impressed or imprinted hereon and attested by its Corporate Secretary or
an Assistant Corporate Secretary.

	 	 	 	 	 
	Dated	 	THE TOLEDO EDISON COMPANY
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	
                Vice
President
	 
	 	 	 	 
	Attest:
	 	 	 	 
	 
	 	 	 	 
	

Corporate Secretary	 	 

     This Bond is one of the Bonds of the series designated herein, described
in the within-mentioned Indenture.

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, AS TRUSTEE
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	

Authorized Officer

7

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