Document:

exhibit10-5.htm

    
      

      

    

    
 

     

     Exhibit
      10.5  

    
 

    SECOND
      AMENDMENT

    

    THIS
      SECOND AMENDMENT (this
“Amendment”) dated as of November 2, 2007 to the Credit Agreement
      referenced below is among TENNESSEE VALLEY AUTHORITY, a wholly owned corporate
      agency and instrumentality of the United States of America (the
“Borrower”), the Lenders identified on the signature pages hereto and
      BANK OF AMERICA, N.A., as a Lender and as Administrative Agent.

    

    W
      I T N E
      S S E T H

    

    WHEREAS,
      pursuant to the Fall Maturity
      Credit Agreement dated as of May 17, 2006 (as amended as of November 2, 2006,
      and as further amended, modified and supplemented from time to time, the
“Credit Agreement”) among the Borrower, the Lenders identified therein
      and the Administrative Agent, the Lenders agreed to make extensions of credit
      to
      the Borrower; and

    

    WHEREAS,
      the Borrower has requested
      certain modifications to the Credit Agreement and the Lenders have agreed to
      the
      requested modifications on the terms and conditions set forth
      herein.

    

    NOW,
      THEREFORE, IN CONSIDERATION of the
      premises and other good and valuable consideration, the receipt and sufficiency
      of which are hereby acknowledged, the parties hereto agree as
      follows:

    

    1.           Defined
      Terms.  Capitalized terms used herein but not otherwise defined
      herein shall have the meanings provided to such terms in the Credit
      Agreement.

    

    2.           Amendments.  The
      definition of “Maturity Date” in Section 1.01 of the Credit Agreement is amended
      to read as follows:

    

    “Maturity
      Date” means November 10, 2008.

    

    3.           Conditions
      Precedent.  This Amendment shall become effective as of November
      11, 2007 upon satisfaction of each of the following conditions
      precedent:

    

    (a)           receipt
      by the Administrative Agent of counterparts of this Amendment executed by the
      Borrower and the Lenders; and

    

    (b)           receipt
      by the Administrative Agent of resolutions of the Borrower evidencing the
      authority of the Borrower to enter into this Amendment certified by the
      Secretary or by an Assistant Secretary of the Borrower to be true and correct
      as
      of the date hereof.

    

    4.           No
      Other Changes.  Except as expressly modified hereby, all of the
      terms and provisions of the Loan Documents shall remain in full force and
      effect.

    

    5.           Reaffirmation
      of Representations and Warranties.  The Borrower represents and
      warrants that each representation and warranty set forth in the Loan Documents
      is true and correct in all material respects as of the date hereof (except
      those
      that expressly relate to an earlier period).

    
      
        
        

      

      
         

        
          

        

      

      
        
        

      

    

    

    6.           Counterparts.  This
      Amendment may be executed in any number of counterparts, each of which when
      so
      executed and delivered shall be deemed an original and it shall not be necessary
      in making proof of this Amendment to produce or account for more than one such
      counterpart.

    

    7.           Governing
      Law.  Except for those sections that specifically reference a
      federal statute or regulation, this Amendment shall be deemed to be a contract
      made under, and for all purposes shall be construed in accordance with, the
      laws
      of the State of Tennessee.
      The foregoing notwithstanding, to the extent the following defenses would
      be available to the Borrower under federal law, then such defenses shall be
      available to the Borrower in connection with this Amendment: (i) non-liability
      for punitive damages, (ii) exemption from anti-trust laws, (iii) the Borrower
      cannot be contractually bound by representation of an employee made without
      actual authority, (iv) presumption that government officials have acted in
      good
      faith and (v) limitation on the application of the doctrine of equitable
      estoppel to the government.  For the avoidance of doubt, the Credit
      Agreement, as amended by this Amendment, shall continue to be governed by
      Section 10.14 Governing Law: Jurisdiction: Etc. and not by Section 7,
Governing Law, of this Amendment.

    

    

    [Signature
      Page Follows]

    

     

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, each of the parties
      hereto has caused a counterpart of this Second Amendment to Fall Maturity Credit
      Agreement to be duly executed and delivered as of the date first above
      written.

    

    BORROWER:                                           TENNESSEE
      VALLEY AUTHORITY

    

    By:         /s/  John
      M.
      Hoskins                                                        

    Name:     John
      M. Hoskins

    Title:       Senior
      Vice President and Treasurer

    

    ADMINISTRATIVE

    AGENT:                                BANK
      OF AMERICA, N.A., as Administrative Agent

    

    By:         /s/  John
      M.
      Hall                                                        

    Name:     John
      M. Hall

    Title:       Senior
      Vice President

    

    LENDER:                                BANK
      OF AMERICA, N.A., as a Lender

    

    By:         /s/  John
      M.
      Hall                                                        

    Name:     John
      M. Hall

    Title:       Senior
      Vice Presidentexhibit10-18.htm

    
      

      

    

     

    Exhibit
      10.18

    VEHICLE
      ALLOWANCE GUIDELINES

    

    

    PURPOSE

    

    TVA’s
      Vehicle Allowance Guidelines were developed to provide an adequate and cost
      effective way to reimburse Officers and key managers whose job responsibilities
      require extensive business related travel.

    

    

    EFFECTIVE
      DATE

    

    The
      Vehicle Allowance Guidelines will be effective April 1, 2006.

    

    

    ELIGIBILITY

    

    Officers
      and key managers who meet one or more of the following requirements are eligible
      to receive a vehicle allowance:

    
      
        	
                •  

              	
                Engage
                  in extensive business-related travel during the year (13,000 miles
                  or
                  more).

              

      

      
        	
                •  

              	
                Serve
                  in a position that is subject to frequent call-out at any day or
                  hour.

              

      

      
        	
                •  

              	
                As
                  otherwise approved by the President & COO and CAO & EVP,
                  Administrative Services.

              

      

    Vehicle
      allowances are granted on a “business need” basis and must be approved jointly
      by the President and COO and CAO & EVP, Administrative
      Services.

    

    

    GUIDELINES

    

    TVA
      provides a flat-dollar bi-weekly allowance to be used toward the purchase or
      lease of a vehicle, operating fees, excess mileage, maintenance, repairs,
      accidents and insurance.  This bi-weekly allowance is considered a
      taxable benefit and will be subject to withholding and any other applicable
      taxes.  Employees who receive a vehicle allowance are eligible to
      receive mileage reimbursement for business travel at the same rate established
      for those who use their own vehicle in lieu of an “assigned vehicle” (currently
      12.5 cents per mile).  Employees who receive a vehicle allowance shall
      not use a TVA Wright Express (WEX) card or Visa Gold card for fuel
      purchases.

    

    Officers
      and key managers who receive a vehicle allowance are not eligible to have a
      TVA
      vehicle assigned to them for business related travel.

    

    The
      following rate schedule serves as a guide to be used when determining vehicle
      allowance amounts.

    

    

    Vehicle
      Allowance Rate Schedule

    

    
      	
               

              Positions

               

            	 	
              Bi-Weekly

              Vehicle

              Allowance

            	 	
              Annual

              Vehicle

              Allowance

            
	 	 	 	 	 	 
	
              Chief
                Officers/Executive VPs

            	 	
              $450

            	 	
              $11,700

            	 
	
              Nuclear
                Site VPs/Nuclear Plant Managers

            	 	
              $450

            	 	
              $11,700

            	 
	
              Other
                Officers

            	 	
              $350

            	 	
              $9,100

            	 
	
              Key
                Managers

            	 	
              $250

            	 	
              $6,500

            	 
	 	 	 	 	 	 

    

    
      
              

                  March
            22,
            2006      
    

        
        

      

      
         

        
          

        

      

      
        
        

      

    

    APPROVAL
      AUTHORITIES

    

    All
      vehicle allowances for Officers and key managers, other than for the President
      and COO and CAO & EVP, Administrative Services, will be approved jointly by
      the President and COO and CAO & EVP, Administrative Services.

    

    Exceptions
      that fall outside the guidelines will be approved jointly by the President
      and
      COO and CAO & EVP, Administrative Services.

    

    

    ROLES
      AND RESPONSIBILITIES

    

    
      Vice
        President, Human Resources

      
        	
                •  

              	
                Recommends
                  all vehicle allowances to the President and COO and CAO & EVP,
                  Administrative Services.

              

      

      
        	
                •  

              	
                Resolves
                  disputes as it affects employees who receive a vehicle
                  allowance.

              

      

      
        	
                •  

              	
                Implements
                  amendments to the Guidelines to reflect changes in organizational
                  and
                  reporting authorities.

              

      

      

      Compensation
        and HR Planning

      
        	
                •  

              	
                Develops
                  and interprets the Guidelines.

              

      

      
        	
                •  

              	
                Develops
                  amendments and corresponding changes to processes and procedures
                  related
                  to the Guidelines.

              

      

      
        	
                •  

              	
                Conducts
                  periodic reviews of the Guidelines and recommends appropriate
                  changes.

              

      

      

      Disbursement
        Services

      
        	
                •  

              	
                Makes
                  appropriate vehicle allowance
                  payments.

              

      

      
        	
                •  

              	
                Maintains
                  records and supporting documentation applicable to all employees
                  who
                  receive a vehicle
                  allowance.

              

      

    
      
              

                  March
            22,
            2006

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