Document:

Unassociated Document

     

    Exhibit
      10.3

     

    
      EXECUTION
        COPY

       

      ADMINISTRATION
        AGREEMENT

       

      This
        ADMINISTRATION AGREEMENT, dated as of June 29, 2007 (this “Administration
        Agreement”), is entered into by and between BALTIMORE GAS AND ELECTRIC
        COMPANY (“BGE”), as administrator (in such capacity, the
“Administrator”), and RSB BONDCO LLC, a Delaware limited liability
        company (the “Issuer”). Capitalized terms used herein and not otherwise
        defined herein shall have the meanings assigned to such terms in Appendix
        A to the Indenture (as defined below).

       

      W
        I T N E
        S S E T H:

       

      WHEREAS,
        the Issuer is issuing Rate Stabilization Bonds pursuant to that certain
        Indenture (including Appendix A thereto) dated as of the date hereof (the
“Indenture”), by and between the Issuer and Deutsche Bank Trust Company
        Americas, a New York banking corporation, in its capacity as indenture trustee
        (the “Indenture Trustee”) and in its separate capacity as a securities
        intermediary (the “Securities Intermediary”), as the same may be amended,
        restated, supplemented or otherwise modified from time to time, and each
        Series
        Supplement;

       

      WHEREAS,
        the Issuer has entered into certain agreements in connection with the issuance
        of the Rate Stabilization Bonds, including (i) the Indenture, (ii) the Rate
        Stabilization Property Servicing Agreement, dated as of June 29, 2007 (the
        “Servicing Agreement”), by and between the Issuer and BGE, as Servicer,
        (iii) the Rate Stabilization Property Purchase and Sale Agreement, dated
        as of
        June 29, 2007 (the “Sale Agreement”), by and between the Issuer and BGE,
        as Seller, and (iv) the other Basic Documents to which the Issuer is a party,
        relating to the Rate Stabilization Bonds (the Indenture, the Servicing
        Agreement, the Sale Agreement and the other Basic Documents to which the
        Issuer
        is a party, as such agreements may be amended, restated, supplemented or
        otherwise modified from time to time, being referred to hereinafter collectively
        as the “Initial Related Agreements”);

       

      WHEREAS,
        pursuant to the Initial Related Agreements, the Issuer is required to perform
        certain duties in connection with the Initial Related Agreements, the Rate
        Stabilization Bonds and the Rate Stabilization Bond Collateral pledged to
        the
        Indenture Trustee pursuant to the Indenture;

       

      WHEREAS,
        the Issuer may from time to time enter into and be required to perform certain
        duties under additional agreements similar to the Initial Related Agreements
        in
        connection with the issuance of one or more additional series of Rate
        Stabilization Bonds (together with the Initial Related Agreements, the
“Related Agreements”);

       

      WHEREAS,
        the Issuer has no employees, other than its officers, and does
        not  intend to hire any employees, and consequently desires to have
        the Administrator perform certain of the duties of the Issuer referred to
        in the
        preceding clauses and to provide such additional services consistent with
        the
        terms of this Administration Agreement and the Related Agreements as the
        Issuer
        may from time to time request; and

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      WHEREAS,
        the Administrator has the capacity to provide the services and the facilities
        required thereby and is willing to perform such services and provide such
        facilities for the Issuer on the terms set forth herein;

       

      NOW,
        THEREFORE, in consideration of the mutual covenants contained herein, and
        other
        good and valuable consideration, the receipt and sufficiency of which are
        hereby
        acknowledged, the parties agree as follows:

       

      1.           Duties
        of the Administrator – Management Services.  The Administrator
        hereby agrees to provide the following corporate management services to the
        Issuer and to cause third parties to provide professional services required
        for
        or contemplated by such services in accordance with the provisions of this
        Administration Agreement:

       

      (a)           furnish
        the Issuer with ordinary clerical, bookkeeping and other corporate
        administrative services necessary and appropriate for the Issuer, including,
        without limitation, the following services:

       

      (i)           maintain
        at the Premises (as defined below) general accounting records of the Issuer
        (the
“Account Records”), subject to year-end audit, in accordance with
        generally accepted accounting principles, separate and apart from its own
        accounting records, prepare or cause to be prepared such quarterly and annual
        financial statements as may be necessary or appropriate and arrange for year-end
        audits of the Issuer's financial statements by the Issuer's independent
        accountants;

       

      (ii)           prepare
        and, after execution by the Issuer, file with the Securities and Exchange
        Commission (the “Commission”) and any applicable state agencies documents
        required to be filed by the Issuer with the Commission and any applicable
        state
        agencies, including, without limitation, periodic reports required to be
        filed
        under the Securities Exchange Act of 1934, as amended;

       

      (iii)           prepare
        for execution by the Issuer and cause to be filed such income, franchise
        or
        other tax returns of the Issuer as shall be required to be filed by applicable
        law (the “Tax Returns”) and cause to be paid on behalf of the Issuer from
        the Issuer's funds any taxes required to be paid by the Issuer under applicable
        law;

       

      (iv)           prepare
        or cause to be prepared for execution by the Issuer’s Managers minutes of the
        meetings of the Issuer’s Managers and such other documents deemed appropriate by
        the Issuer to maintain the separate limited liability company existence and
        good
        standing of the Issuer (the “Company Minutes”) or otherwise required
        under the Related Agreements (together with the Account Records, the Tax
        Returns, the Company Minutes, the LLC Agreement, and the Certificate of
        Formation, the “Issuer Documents”); and any other documents deliverable
        by the Issuer thereunder or in connection therewith; and

       

      (v)           hold,
        maintain and preserve at the Premises (or such other place as shall be required
        by any of the Related Agreements) executed copies (to the extent applicable)
        of
        the Issuer Documents and other documents executed by the Issuer thereunder
        or in
        connection therewith;

       

      
        
          
          

        

        
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      (b)           take
        such actions on behalf of the Issuer, as are necessary or desirable for the
        Issuer to keep in full force and effect its existence, rights and franchises
        as
        a limited liability company under the laws of the state of Delaware and obtain
        and preserve its qualification to do business in each jurisdiction in which
        it
        becomes necessary to be so qualified;

       

      (c)           take
        such actions on the behalf of the Issuer as are necessary for the issuance
        and
        delivery of one or more series of Rate Stabilization Bonds;

       

      (d)           provide
        for the performance by the Issuer of its obligations under each of the Related
        Agreements, and prepare, or cause to be prepared, all documents, reports,
        filings, instruments, notices, certificates and opinions that it shall be
        the
        duty of the Issuer to prepare, file or deliver pursuant to the Related
        Agreements;

       

      (e)           enforce
        each of the rights of the Issuer under the Related Agreements, at the direction
        of the Indenture Trustee;

       

      (f)           provide
        for the defense, at the direction of the Issuer's Managers, of any action,
        suit
        or proceeding brought against the Issuer or affecting the Issuer or any of
        its
        assets;

       

      (g)           provide
        office space (the “Premises”) for the Issuer and such reasonable
        ancillary services as are necessary to carry out the obligations of the
        Administrator hereunder, including telecopying, duplicating and word processing
        services;

       

      (h)           undertake
        such other administrative services as may be appropriate, necessary or requested
        by the Issuer; and

       

      (i)           provide
        such other services as are incidental to the foregoing or as the Issuer and
        the
        Administrator may agree.

       

      In
        providing the services under this Section 1 and as otherwise provided
        under this Administration Agreement, the Administrator will not knowingly
        take
        any actions on behalf of the Issuer which (i) the Issuer is prohibited from
        taking under the Related Agreements, or (ii) would cause the Issuer to be
        in
        violation of any federal, state or local law or the LLC Agreement.

       

      2.           Compensation.  As
        compensation for the performance of the Administrator’s obligations under this
        Administration Agreement (including the compensation of Persons serving as
        Managers, other than the independent managers, and officers of the Issuer,
        but,
        for the avoidance of doubt, excluding the performance by BGE of its obligations
        in its capacity as Servicer), the Administrator shall be entitled to an annual
        fee of $100,000 (the “Administration Fee”), payable by the Issuer in
        arrears proportionately on each Payment Date.  The Administration Fee
        shall not exceed $100,000 in the aggregate annually, provided,
however, that BGE may seek approval from the PSC to recover from
        Customers, through the Financing Credit Order in accordance with the Qualified
        Rate Order, any  incremental costs it incurs to provide administrative
        support services to the Issuer to the extent such incremental costs exceed
        $100,000, and furtherprovided that such excess amounts shall
        neither be considered an Operating Expense nor be paid out of the Collection
        Account or included in the calculation of True-Up Adjustments.  In
        addition, the Administrator shall be entitled to be reimbursed by the Issuer
        for
        all costs and expenses of services performed by unaffiliated third parties
        and
        actually

       

      
        
          
          

        

        
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      incurred
        by the Administrator in connection with the performance of its obligations
        under
        this Administration Agreement in accordance with Section 3 (but, for the
        avoidance of doubt, excluding any such costs and expenses incurred by BGE
        in its
        capacity as Servicer), to the extent that such costs and expenses are supported
        by invoices or other customary documentation and are reasonably allocated
        to the
        Issuer (“Reimbursable Expenses”).  The Administration Fee shall
        be modified, and this Section 2 shall be deemed to have been amended,
        without further act or deed by any Person to reflect any such modification
        or
        amendment, to the extent provided in any Qualified Rate Order issued by the
        PSC
        providing for the issuance of an additional series of Rate Stabilization
        Bonds.

       

      3.           Third
        Party Services.  Any services required for or contemplated by the
        performance of the above-referenced services by the Administrator to be provided
        by unaffiliated third parties (including independent auditors' fees and counsel
        fees) may, if provided for or otherwise contemplated by any related Qualified
        Rate Order issued by the PSC and if the Issuer deems it necessary or desirable,
        be arranged by the Issuer or by the Administrator at the direction (which
        may be
        general or specific) of the Issuer.  Costs and expenses associated
        with the contracting for such third-party services may be paid directly by
        the
        Issuer or paid by the Administrator and reimbursed by the Issuer in accordance
        with Section 2, or otherwise as the Administrator and the Issuer may
        mutually arrange.

       

      4.           Additional
        Information to be Furnished to the Issuer.  The Administrator
        shall furnish to the Issuer from time to time such additional information
        regarding the Rate Stabilization Bond Collateral as the Issuer shall reasonably
        request.

       

      5.           Independence
        of the Administrator.  For all purposes of this Administration
        Agreement, the Administrator shall be an independent contractor and shall
        not be
        subject to the supervision of the Issuer with respect to the manner in which
        it
        accomplishes the performance of its obligations hereunder.  Unless
        expressly authorized by the Issuer, the Administrator shall have no authority,
        and shall not hold itself out as having the authority, to act for or represent
        the Issuer in any way and shall not otherwise be deemed an agent of the
        Issuer.

       

      6.           No
        Joint Venture.  Nothing contained in this Administration Agreement
        (a) shall constitute the Administrator and the Issuer as partners or co-members
        of any partnership, joint venture, association, syndicate, unincorporated
        business or other separate entity, (b) shall be construed to impose any
        liability as such on either of them or (c) shall be deemed to confer on either
        of them any express, implied or apparent authority to incur any obligation
        or
        liability on behalf of the other.

       

      7.           Other
        Activities of Administrator.  Nothing herein shall prevent the
        Administrator or any of its shareholders, directors, officers, employees,
        subsidiaries or affiliates from engaging in other businesses or, in its sole
        discretion, from acting in a similar capacity as an Administrator for any
        other
        person or entity even though such person or entity may engage in business
        activities similar to those of the Issuer.

       

      
        
          
          

        

        
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      8.           Term
        of Agreement; Resignation and Removal of Administrator.

       

      (a)           This
        Administration Agreement shall continue in force until the payment in full
        of
        the Rate Stabilization Bonds and any other amount which may become due and
        payable under the Indenture, upon which event this Administration Agreement
        shall automatically terminate.

       

      (b)           Subject
        to Sections 8(e) and 8(f), the Administrator may resign its duties
        hereunder by providing the Issuer with at least sixty (60) days’ prior written
        notice.

       

      (c)           Subject
        to Sections 8(e) and 8(f), the Issuer may remove the Administrator
        without cause by providing the Administrator with at least sixty (60) days’
prior written notice.

       

      (d)           Subject
        to Sections 8(e) and 8(f), at the sole option of the Issuer, the
        Administrator may be removed immediately upon written notice of termination
        from
        the Issuer to the Administrator if any of the following events shall
        occur:

       

      (i)           the
        Administrator shall default in the performance of any of its duties under
        this
        Administration Agreement and, after notice of such default, shall fail to
        cure
        such default within ten (10) days (or, if such default cannot be cured in
        such
        time, shall (A) fail to give within ten (10) days such assurance of cure
        as
        shall be reasonably satisfactory to the Issuer and (B) fail to cure such
        default
        within thirty (30) days thereafter);

       

      (ii)           a
        court of competent jurisdiction shall enter a decree or order for relief,
        and
        such decree or order shall not have been vacated within sixty (60) days,
        in
        respect of the Administrator in any involuntary case under any applicable
        bankruptcy, insolvency or other similar law now or hereafter in effect, or
        such
        court shall appoint a receiver, liquidator, assignee, custodian, trustee,
        sequestrator or similar official for the Administrator or any substantial
        part
        of its property or order the winding-up or liquidation of its affairs;
        or

       

      (iii)           the
        Administrator shall commence a voluntary case under any applicable bankruptcy,
        insolvency or other similar law now or hereafter in effect, shall consent
        to the
        entry of an order for relief in an involuntary case under any such law, shall
        consent to the appointment of a receiver, liquidator, assignee, trustee,
        custodian, sequestrator or similar official for the Administrator or any
        substantial part of its property, shall consent to the taking of possession
        by
        any such official of any substantial part of its property, shall make any
        general assignment for the benefit of creditors or shall fail generally to
        pay
        its debts as they become due.

       

      The
        Administrator agrees that if any of the events specified in clauses (ii)
        or (iii) of this Section 8(d) shall occur, it shall give written
        notice thereof to the Issuer and the Indenture Trustee as soon as practicable
        but in any event within seven (7) days after the happening of such
        event.

      

      (e)           No
        resignation or removal of the Administrator pursuant to this Section 8
        shall be effective until a successor Administrator has been appointed by
        the
        Issuer, and such successor Administrator has agreed in writing to be bound
        by
        the terms of this Administration Agreement in the same manner as the
        Administrator is bound hereunder.

       

      
        
          
          

        

        
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      (f)           The
        appointment of any successor Administrator shall be effective only after
        satisfaction of the Rating Agency Condition with respect to the proposed
        appointment.

       

      9.           Action
        upon Termination, Resignation or Removal.  Promptly upon the
        effective date of termination of this Administration Agreement pursuant to
        Section 8(a), the resignation of the Administrator pursuant to Section
        8(b) or the removal of the Administrator pursuant to Section 8(c) or
8(d), the Administrator shall be entitled to be paid a pro-rated
        portion
        of the annual fee described in Section 2 hereof through the date of
        termination and all Reimbursable Expenses incurred by it through the date
        of
        such termination, resignation or removal.  The Administrator shall
        forthwith upon such termination pursuant to Section 8(a) deliver to the
        Issuer all property and documents of or relating to the Rate Stabilization
        Bond
        Collateral then in the custody of the Administrator.  In the event of
        the resignation of the Administrator pursuant to Section 8(b) or the
        removal of the Administrator pursuant to Section 8(c) or 8(d), the
        Administrator shall cooperate with the Issuer and take all reasonable steps
        requested to assist the Issuer in making an orderly transfer of the duties
        of
        the Administrator.

       

      10.           Administrator’s
        Liability.  Except as otherwise provided herein, the Administrator
        assumes no liability other than to render or stand ready to render the services
        called for herein, and neither the Administrator nor any of its members,
        managers, officers, employees, subsidiaries or affiliates shall be responsible
        for any action of the Issuer or any of the shareholders, directors, officers,
        employees, subsidiaries or affiliates of the Issuer (other than the
        Administrator itself).  The Administrator shall not be liable for nor
        shall it have any obligation with regard to any of the liabilities, whether
        direct or indirect, absolute or contingent of the Issuer or any of the members,
        managers, officers, employees, subsidiaries or affiliates of the Issuer (other
        than the Administrator itself).

       

      11.           INDEMNITY.

       

      (a)           SUBJECT
        TO THE PRIORITY OF PAYMENTS SET FORTH IN THE INDENTURE, THE ISSUER SHALL
        INDEMNIFY THE ADMINISTRATOR, ITS SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES
        AND AFFILIATES AGAINST ALL LOSSES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS,
        LIABILITIES AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF
        LITIGATION OR PREPARATION THEREFOR WHETHER OR NOT THE ADMINISTRATOR IS A
        PARTY
        THERETO) WHICH ANY OF THEM MAY PAY OR INCUR ARISING OUT OF OR RELATING TO
        THIS
        ADMINISTRATION AGREEMENT AND THE SERVICES CALLED FOR HEREIN; PROVIDED,
        HOWEVER, THAT SUCH INDEMNITY SHALL NOT APPLY TO ANY SUCH LOSS, CLAIM,
        DAMAGE, PENALTY, JUDGMENT, LIABILITY OR EXPENSE RESULTING FROM THE
        ADMINISTRATOR’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT IN THE PERFORMANCE OF ITS
        OBLIGATIONS HEREUNDER.

       

      (b)           THE
        ADMINISTRATOR SHALL INDEMNIFY THE ISSUER, ITS MEMBERS, MANAGERS, OFFICERS
        AND
        EMPLOYEES AGAINST ALL LOSSES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS, LIABILITIES
        AND EXPENSES (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF LITIGATION OR
        PREPARATION THEREFOR WHETHER OR NOT THE ISSUER IS A PARTY THERETO)

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      WHICH
        ANY
        OF THEM MAY INCUR AS A RESULT OF THE ADMINISTRATOR’S GROSS NEGLIGENCE OR WILLFUL
        MISCONDUCT IN THE PERFORMANCE OF ITS OBLIGATIONS HEREUNDER.

       

      12.           Notices.  Any
        notice, report or other communication given hereunder shall be in writing
        and
        addressed as follows:

       

      (a)           if
        to the Issuer, to:

       

      RSB
        BondCo LLC

      Suite
        202

      103
        Foulk
        Road

      Wilmington,
        Delaware 19803

      Attention:
        Manager

      Telephone:
        (302) 691-0123

      Facsimile:  (302)
        652-8667

      

      (b)           if
        to the Administrator, to:

       

      740
        E.
        Pratt Street

      16th
        Floor

      Baltimore,
        Maryland
        21202                                                                

      Attention:
        Treasurer

      Telephone:
        (410) 783-3620

      Facsimile:  (410)
        783-3619

      

      
        	
                 

              	
                (c)

              	
                if
                  to the Indenture Trustee, to the Corporate Trust
                  Office;

              

      

      

      or
        to
        such other address as any party shall have provided to the other parties
        in
        writing. Any notice required to be in writing hereunder shall be deemed given
        if
        such notice is mailed by certified mail, postage prepaid, or hand-delivered
        to
        the address of such party as provided above.

      

      13.           Amendments.  This
        Administration Agreement may be amended from time to time by a written amendment
        duly executed and delivered by each of the Issuer and the Administrator,
        with
        the prior written consent of the Indenture Trustee and the satisfaction of
        the
        Rating Agency Condition.  Promptly after the execution of any such
        amendment or consent, the Issuer shall furnish written notification of the
        substance of such amendment or consent to each of the Rating
        Agencies.

       

      14.           Successors
        and Assigns.  This Administration Agreement may not be assigned by
        the Administrator unless such assignment is previously consented to in writing
        by the Issuer and the Indenture Trustee and subject to the satisfaction of
        the
        Rating Agency Condition in connection therewith.  Any assignment with
        such consent and satisfaction, if accepted by the assignee, shall bind the
        assignee hereunder in the same manner as the Administrator is bound hereunder.
        Notwithstanding the foregoing, this Administration Agreement may be assigned
        by
        the Administrator without the consent of the Issuer or the Indenture Trustee
        to
        a corporation or other organization that is a successor (by merger,
        consolidation or purchase of assets) to the

       

      
        
          
          

        

        
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      Administrator;
        provided that such successor organization executes and delivers to the
        Issuer an Agreement in which such corporation or other organization agrees
        to be
        bound hereunder by the terms of said assignment in the same manner as the
        Administrator is bound hereunder.  Subject to the foregoing, this
        Administration Agreement shall bind any successors or assigns of the parties
        hereto.

       

      15.           Governing
        Law.  This Administration Agreement shall be construed in
        accordance with the laws of the State of Maryland, 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.

       

      16.           Headings.  The
        Section headings hereof have been inserted for convenience of reference only
        and
        shall not be construed to affect the meaning, construction or effect of this
        Administration Agreement.

       

      17.           Counterparts.  This
        Administration Agreement may be executed in counterparts, each of which when
        so
        executed shall be an original, but all of which together shall constitute
        but
        one and the same Administration Agreement.

       

      18.           Severability.  Any
        provision of this Administration Agreement that is prohibited or unenforceable
        in any jurisdiction shall 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.

       

      19.           Nonpetition
        Covenant.  Notwithstanding any prior termination of this
        Administration Agreement, the Administrator, solely in its capacity as a
        creditor of the Issuer, covenants that it shall not, prior to the date which
        is
        one year and one day after payment in full of the Rate Stabilization Bonds,
        acquiesce, petition or otherwise invoke or cause the Issuer to invoke or
        join
        with any Person in invoking the process of any court or Governmental Authority
        for the purpose of commencing or sustaining an involuntary case against the
        Issuer 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 Issuer or any substantial part of the property
        of
        the Issuer, or ordering the dissolution, winding up or liquidation of the
        affairs of the Issuer.

       

      20.           Assignment
        to Indenture Trustee.  BGE hereby acknowledges and consents to any
        mortgage, pledge, assignment and grant of a security interest by the Issuer
        to
        the Indenture Trustee pursuant to the Indenture for the benefit of the Secured
        Parties of all right, title and interest of the Issuer in, to and under this
        Administration Agreement, and the assignment of any or all of the Issuer’s
        rights hereunder to the Indenture Trustee for the benefit of the Secured
        Parties.

       

       

      [REMAINDER
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      IN
        WITNESS WHEREOF, the parties have caused this Administration Agreement to
        be
        duly executed and delivered as of the day and year first above
        written.

       

       

      
        
          	 	
                  RSB
                    BONDCO LLC, as Issuer

                   

                   

                
	 	
                  By:

                	/s/
                  Charles A. Berardesco 
	 	 	
                  Name: 
                    Charles A. Berardesco

                  Title:   
                    Secretary

                
	 	 	
                   

                   

                
	 	
                  BALTIMORE
                    GAS AND ELECTRIC COMPANY, as Administrator

                   

                   

                
	 	
                  By:

                	/s/
                  Charles A. Berardesco
	 	 	
                  Name: 
                    Charles A. Berardesco

                  Title:   
                    Secretary

                

        

         

         

        
          
            Signature
              Page to Administration AgreementUnassociated Document

     

    Exhibit
      10.4

     

    
      EXECUTION
        COPY

      

      

       

      AMENDED
        AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT

       

       

      OF

       

       

      RSB
        BONDCO LLC

       

       

      Dated
        and Effective as of

       

       

      June
        29, 2007

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      TABLE
        OF CONTENTS

       

       Page

       

      
        	
                ARTICLE
                  I

                GENERAL
                  PROVISIONS

              	 
	 	 
	
                SECTION
                  1.01   Definitions

              	
                1

              
	
                SECTION
                  1.02   Sole Member; Registered Office and Agent

              	
                2

              
	
                SECTION
                  1.03   Other Offices

              	
                3

              
	
                SECTION
                  1.04   Name

              	
                3

              
	
                SECTION
                  1.05   Purpose; Nature of Business Permitted;
                  Powers

              	
                3

              
	
                SECTION
                  1.06   Limited Liability Company Agreement; Certificate of
                  Formation

              	
                5

              
	
                SECTION
                  1.07   Separate Existence

              	
                5

              
	
                SECTION
                  1.08   Limitation on Certain Activities

              	
                9

              
	
                SECTION
                  1.09   No State Law Partnership

              	
                10

              
	 	 
	
                ARTICLE
                  II

                CAPITAL

              	 
	 	 
	
                SECTION
                  2.01   Initial Capital

              	
                10

              
	
                SECTION
                  2.02   Additional Capital Contributions

              	
                10

              
	
                SECTION
                  2.03   Capital Account

              	
                11

              
	
                SECTION
                  2.04   Interest

              	
                11

              
	 	 
	
                ARTICLE
                  III

                ALLOCATIONS;
                  BOOKS

              	 
	 	 
	
                SECTION
                  3.01   Allocations of Income and Loss.

              	
                11

              
	
                SECTION
                  3.02   Company to be Disregarded for Tax
                  Purposes

              	
                12

              
	
                SECTION
                  3.03   Books of Account

              	
                12

              
	
                SECTION
                  3.04   Access to Accounting Records

              	
                12

              
	
                SECTION
                  3.05   Annual Tax Information

              	
                12

              
	
                SECTION
                  3.06   Internal Revenue Service Communications

              	
                12

              
	 	 
	
                ARTICLE
                  IV

                MEMBER

              	 
	 	 
	
                SECTION
                  4.01   Powers

              	
                13

              
	
                SECTION
                  4.02   Reimbursement of Member Expenses

              	
                14

              
	
                SECTION
                  4.03   Other Ventures

              	
                14

              
	
                SECTION
                  4.04   Actions by the Member

              	
                14

              
	 	 

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
                  V

                OFFICERS

              	 
	 	 
	
                SECTION
                  5.01   Designation; Term; Qualifications

              	
                14

              
	
                SECTION
                  5.02   Removal and Resignation

              	
                16

              
	
                SECTION
                  5.03   Vacancies

              	
                16

              
	
                SECTION
                  5.04   Compensation

              	
                16

              
	 	 
	
                ARTICLE
                  VI

                MEMBERSHIP
                  INTEREST

              	 
	 	 
	
                SECTION
                  6.01   General

              	
                16

              
	
                SECTION
                  6.02   Distributions

              	
                16

              
	
                SECTION
                  6.03   Rights on Liquidation, Dissolution or Winding
                  Up

              	
                16

              
	
                SECTION
                  6.04   Redemption

              	
                16

              
	
                SECTION
                  6.05   Voting Rights

              	
                17

              
	
                SECTION
                  6.06   Transfer of Membership Interests

              	
                17

              
	
                SECTION
                  6.07   Admission of Transferee as Member

              	
                17

              
	 	 
	
                ARTICLE
                  VII

                MANAGERS

              	 
	 	 
	
                SECTION
                  7.01   Managers

              	
                18

              
	
                SECTION
                  7.02   Powers of the Managers

              	
                19

              
	
                SECTION
                  7.03   Reimbursement of Expenses

              	
                19

              
	
                SECTION
                  7.04   Removal of Managers

              	
                19

              
	
                SECTION
                  7.05   Resignation of Manager

              	
                19

              
	
                SECTION
                  7.06   Vacancies

              	
                20

              
	
                SECTION
                  7.07   Meetings of the Managers

              	
                20

              
	
                SECTION
                  7.08   Electronic Communications

              	
                20

              
	
                SECTION
                  7.09   Committees of Managers.

              	
                20

              
	
                SECTION
                  7.10   Limitations on Independent Managers

              	
                21

              
	 	 
	
                ARTICLE
                  VIII

                EXPENSES

              	 
	 	 
	
                SECTION
                  8.01   Expenses

              	
                21

              
	 	 
	
                ARTICLE
                  IX

                PERPETUAL
                  EXISTENCE; DISSOLUTION, LIQUIDATION AND WINDING-UP

              	 
	 	 
	
                SECTION
                  9.01   Existence

              	
                22

              
	
                SECTION
                  9.02   Dissolution

              	
                22

              
	
                SECTION
                  9.03   Accounting

              	
                22

              
	
                SECTION
                  9.04   Certificate of Cancellation

              	
                23

              
	
                SECTION
                  9.05   Winding Up

              	
                23

              
	
                SECTION
                  9.06   Order of Payment of Liabilities Upon
                  Dissolution

              	
                23

              
	
                SECTION
                  9.07   Limitations on Payments Made in
                  Dissolution

              	
                23

              
	
                SECTION
                  9.08   Limitation on Liability

              	
                23

              
	 	 

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        	
                ARTICLE
                  X

                INDEMNIFICATION

              	 
	 	 
	
                SECTION
                  10.01   Indemnity

              	
                23

              
	
                SECTION
                  10.02   Indemnity for Actions By or In the Right of the
                  Company

              	
                24

              
	
                SECTION
                  10.03   Indemnity If Successful

              	
                24

              
	
                SECTION
                  10.04   Expenses

              	
                24

              
	
                SECTION
                  10.05   Advance Payment of Expenses

              	
                25

              
	
                SECTION
                  10.06   Other Arrangements Not Excluded

              	
                25

              
	 	 
	
                ARTICLE
                  XI

                MISCELLANEOUS
                  PROVISIONS

              	 
	 	 
	
                SECTION
                  11.01   No Bankruptcy Petition; Dissolution

              	
                26

              
	
                SECTION
                  11.02   Amendments

              	
                26

              
	
                SECTION
                  11.04   Governing Law

              	
                27

              
	
                SECTION
                  11.05   Headings

              	
                27

              
	
                SECTION
                  11.06   Severability

              	
                27

              
	
                SECTION
                  11.07   Assigns

              	
                27

              
	
                SECTION
                  11.08   Enforcement by Independent Managers

              	
                27

              
	
                SECTION
                  11.09   Waiver of Partition; Nature of Interest

              	
                27

              

      

      

      

      

      EXHIBITS
        AND SCHEDULES

      

      
        	
                Schedule
                  A

              	
                Schedule
                  of Capital Contribution of Member

              
	
                Schedule
                  B

              	
                Managers

              
	
                Schedule
                  C

              	
                Officers

              
	
                Exhibit
                  A

              	
                Management
                  Agreement

              

      

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      

      AMENDED
        AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT OF

      RSB
        BONDCO LLC

       

      This
        AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT, together with the
        schedules attached hereto, (this “Agreement”) of RSB BONDCO LLC, a
        Delaware limited liability company (the “Company”), is made and entered
        into as of June 29, 2007 by BALTIMORE GAS AND ELECTRIC COMPANY, a Maryland
        corporation (including any additional or successor members of the Company
        admitted to the Company as a member of the Company pursuant to the provisions
        of
        this Agreement other than Special Members, the “Member”) and acknowledged
        and agreed to by Michelle A. Dreyer and Suzanne M. Hay, as the Independent
        Managers (as defined herein).

       

      WHEREAS,
        the Company was formed as a Delaware limited liability company under and
        pursuant to the LLC Act (i) by the filing of the Certificate of Formation
        of the
        Company with the Secretary of State of the State of Delaware on March 8,
        2007
        (such execution and filing being hereby ratified and approved in all respects)
        and (ii) by the entering into of a Limited Liability Company Agreement, dated
        as
        of May 2, 2007 (the “Original LLC Agreement”); and

       

      WHEREAS,
        the Member filed an Amended and Restated Certificate of Formation of the
        Company
        with the Secretary of State of the State of Delaware on April 10, 2007 under
        and
        pursuant to the LLC Act (such execution and filing being hereby ratified
        and
        approved in all respects); and

       

      WHEREAS,
        this Agreement amends and restates the Original LLC Agreement in all respects,
        and from and after the date hereof constitutes the governing instrument of
        the
        Company;

       

      NOW
        THEREFORE, the Member (as defined below) hereby amends and restates the Original
        LLC Agreement in its entirety as follows:

       

      ARTICLE
        I

       

      GENERAL
        PROVISIONS

       

      SECTION
        1.01  Definitions.

       

      (a)           Unless
        otherwise defined herein, capitalized terms used herein shall have the meanings
        assigned to them in that certain Indenture (including Appendix A) dated
        on or around June 29, 2007 between the Company, as Issuer, and Deutsche Bank
        Trust Company Americas, a New York banking corporation, as indenture trustee
        (the “Indenture Trustee”), as the same may be amended, restated,
        supplemented or otherwise modified from time to time.

       

      (b)           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.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)           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, Exhibit, Annex
        and
        Attachment references contained in this Agreement are references to Sections,
        Schedules, Exhibits, Annexes and Attachments in or to this Agreement unless
        otherwise specified; and the term “including” shall mean “including
        without limitation.”

       

      (d)           The
        definitions contained in this Agreement are applicable to the singular as
        well
        as the plural forms of such terms.

       

      (e)           Non-capitalized
        terms used herein which are defined in the Requirements of Law shall, as
        the
        context requires, have the meanings assigned to such terms in the Requirements
        of Law, but without giving effect to amendments to the Requirements of
        Law.

       

      SECTION
        1.02  Sole Member; Registered Office and Agent.

       

      (a)           The
        initial sole member of  the Company shall be Baltimore Gas and
        Electric Company, a Maryland corporation, or any additional or successor
        member
        of the Company admitted to the Company pursuant to Sections 1.02(c),
6.06 and 6.07.  The registered office and registered
        agent of the Company in the State of Delaware shall be The Corporation Trust
        Company, 1209 Orange Street, Wilmington, New Castle County, Delaware
        19801.  The Member continues as a member of the Company upon its
        execution of a counterpart to this Agreement.  The Member, without the
        consent of any other Person, may change said registered office and agent
        from
        one location to another in the State of Delaware and reflect such change
        as
        necessary by amending this Agreement and the Certificate of Formation of
        the
        Company.  The Member shall provide notice of any such change to the
        Indenture Trustee.

       

      (b)           Upon
        the occurrence of any event that causes the Member to cease to be a member
        of
        the Company (other than upon continuation of the Company without dissolution
        upon the transfer or assignment by the Member of all of its limited liability
        company interest in the Company and the prior or simultaneous admission of
        the
        transferee or an additional member of the Company pursuant to Sections
        6.06 and 6.07), each Person acting as an Independent Manager pursuant
        to the terms of this Agreement shall, without any action of any Person and
        simultaneously with the Member ceasing to be a member of the Company,
        automatically be admitted to the Company as a Special Member and shall continue
        the Company without dissolution.  No Special Member may resign from
        the Company or transfer its rights as Special Member unless (i) a successor
        Special Member has been admitted to the Company as Special Member by executing
        a
        counterpart to this Agreement, and (ii) such successor has also accepted
        its
        appointment as Independent Manager pursuant to this Agreement; provided,
however, the Special Members shall automatically cease to be members
        of
        the Company upon the admission to the Company of a substitute Member, appointed
        by the personal representative of the Person that had been the last remaining
        Member.  Pending such admission of the personal representative or its
        nominee or designee, as the case may be, as a substitute Member, such former
        Member (or if such former Member no longer exists, its personal representative),
        shall retain the limited liability company interest in the Company of such
        former Member, including without limitation, all economic rights associated
        with
        such interest (which economic rights shall continue to represent the sole
        economic rights associated with any ownership interest in the
        Company). 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Upon
        the
        admission to the Company of a substitute Member, such substitute Member shall
        acquire, upon terms agreed to by the former Member (or its personal
        representative) and the substitute Member, all right, title and interest
        in and
        to such former Member’s limited liability company interest in the
        Company.  Each Special Member shall be a member of the Company that
        has no interest in the profits, losses and capital of the Company and has
        no
        right to receive any distributions of Company assets (and no Special Member
        shall be treated as a member of the Company for federal income tax
        purposes).  Pursuant to Section 18-301 of the LLC Act, a Special
        Member shall not be required to make any capital contributions to the Company
        and shall not receive a limited liability company interest in the
        Company.  A Special Member, in its capacity as Special Member, may not
        bind the Company.  Except as required by any mandatory provision of
        the LLC Act, each Special Member, in its capacity as Special Member, shall
        have
        no right to vote on, approve or otherwise consent to any action by, or matter
        relating to, the Company, including the merger, consolidation or conversion
        of
        the Company.  In order to implement the admission to the Company of
        each Special Member, each  Person acting as an Independent Manager
        pursuant to this Agreement shall execute a counterpart to this
        Agreement.  Prior to its admission to the Company as Special Member,
        each Person acting as an Independent Manager pursuant to this Agreement shall
        not be a member of the Company.  A “Special Member” means, upon such
        Person’s admission to the Company as a member of the Company pursuant to this
Section 1.02(b), a Person acting as Independent Manager, in such Person’s
        capacity as a member of the Company.  A Special Member shall only have
        the rights and duties expressly set forth in this Agreement.  For
        purposes of this Agreement, a Special Member is not included within the defined
        term “Member.”

       

      (c)           The
        Company may admit additional Members with the affirmative vote of a majority
        of
        the Managers, which vote must include the affirmative vote of all of the
        Independent Managers.  Notwithstanding the preceding sentence, it
        shall be a condition to the admission of any additional Member that the sole
        Member shall have received an opinion of outside tax counsel (as selected
        by the
        Member in form and substance reasonably satisfactory to the Member and the
        Indenture Trustee) that the admission of such additional Member shall not
        cause
        the Company to be treated, for federal income tax purposes, as having more
        than
        a “sole owner” and that the Company shall not be treated, for federal income tax
        purposes, as an entity separate from such “sole owner”.

       

      SECTION
        1.03  Other Offices.  The Company may have an office
        at any place or places within or outside the State of Delaware that may at
        any
        time be established by the Member.  The Member shall provide notice to
        the Indenture Trustee of the location of the Company’s office or of any change
        in the location of the Company’s office.

       

      SECTION
        1.04  Name.  The name of the Company shall be “RSB
        BONDCO LLC”.  The name of the Company may be changed from time to time
        by the Member with ten (10) days’ prior written notice to the Managers and the
        Indenture Trustee, and the filing of an appropriate amendment to the Certificate
        of Formation with the Secretary of State as required by the LLC
        Act.

       

      SECTION
        1.05  Purpose; Nature of Business Permitted;
        Powers.  The purposes for which the Company is formed are limited
        to:

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (a)           acquire,
        own, hold, administer, service or enter into agreements regarding the receipt
        and servicing of Rate Stabilization Property and the other Rate Stabilization
        Bond Collateral, along with certain other related assets;

       

      (b)           manage,
        sell, assign, pledge, collect amounts due on or otherwise deal with the Rate
        Stabilization Property and the other Rate Stabilization Bond Collateral and
        related assets to be so acquired in accordance with the terms of the Basic
        Documents;

       

      (c)           negotiate,
        authorize, execute, deliver, assume the obligations under, and perform its
        duties under, the Basic Documents and any other agreement or instrument or
        document relating to the activities set forth in clauses (a) and
(b) above; provided, that each party to any such agreement under
        which material obligations are imposed upon the Company, solely in its capacity
        as a creditor of the Company, shall covenant that it shall not, prior to
        the
        date which is one year and one day after the termination of the Indenture
        and
        the payment in full of each Series of the Rate Stabilization Bonds and any
        other
        amounts owed under the Indenture, acquiesce, petition or otherwise invoke
        or
        cause the Company to invoke the process of any court or Governmental Authority
        for the purpose of commencing or sustaining an involuntary case against the
        Company 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 Company or any substantial part of the property
        of
        the Company; or, to the fullest extent permitted by law, ordering the winding
        up
        or liquidation of the affairs of the Company; and provided,
further, that the Company shall be permitted to incur additional
        indebtedness or other liabilities payable to service providers and trade
        creditors in the ordinary course of business in connection with the foregoing
        activities;

       

      (d)           file
        with the SEC one or more registration statements, including any pre-effective
        or
        post-effective amendments thereto and any registration statement filed pursuant
        to Rule 462(b) under the Securities Act (including any prospectus supplement,
        prospectus and exhibits contained therein) and file such applications, reports,
        surety bonds, irrevocable consents, appointments of attorney for service
        of
        process and other papers and documents necessary or desirable to register
        the
        Rate Stabilization Bonds under the securities or “Blue Sky” laws of various
        jurisdictions;

       

      (e)           authorize,
        execute, deliver and issue Rate Stabilization Bonds from time to
        time;

       

      (f)           pledge
        its interest in Rate Stabilization Property and other Rate Stabilization
        Bond
        Collateral to the Indenture Trustee under the Indenture in order to secure
        the
        Rate Stabilization Bonds; and

       

      (g)           engage
        in any lawful act or activity and exercise any powers permitted to limited
        liability companies formed under the laws of the State of Delaware that,
        in
        either case, are incidental to, or necessary, suitable or convenient for
        the
        accomplishment of the above-mentioned purposes.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      The
        Company shall engage only in any activities related to the foregoing purposes
        or
        required or authorized by the terms of the Basic Documents or other agreements
        referenced above.  The Company shall have all powers reasonably
        incidental, necessary, suitable or convenient to effect the foregoing purposes,
        including all powers granted under the LLC Act.  The Company, the
        Member, any Manager, including the Independent Managers (as defined herein),
        or
        any officer of the Company, acting singly or collectively, on behalf of the
        Company, may enter into and perform the Basic Documents to which it is a
        party
        and all registration statements, prospectuses, prospectus supplements,
        documents, agreements, certificates or financing statements contemplated
        thereby
        or related thereto and any amendments thereto, all without any further act,
        vote
        or approval of any Member, Manager or other Person, notwithstanding any other
        provision of this Agreement, the LLC Act, or other applicable Requirements
        of
        Law.  The authorization set forth in the preceding sentence shall not
        be deemed a restriction on the power and authority of the Member or any Manager,
        including the Independent Managers, to enter into other agreements or documents
        on behalf of the Company as authorized pursuant to this Agreement and the
        LLC
        Act. The Company shall possess and may exercise all the powers and privileges
        granted by the LLC Act or by any other law or by this Agreement, together
        with
        any powers incidental thereto, insofar as such powers and privileges are
        incidental, necessary, suitable or convenient to the conduct, promotion or
        attainment of the business purposes or activities of the Company.

       

      SECTION
        1.06  Limited Liability Company Agreement.  This
        Agreement shall constitute a “limited liability company agreement” within the
        meaning of the LLC Act. 

       

      SECTION
        1.07  Separate Existence.  Except for financial
        reporting purposes (to the extent required by generally accepted accounting
        principles) and for federal income tax purposes and, to the extent consistent
        with applicable state tax law, state income and franchise tax purposes, the
        Member and the Managers shall take all steps necessary to continue the identity
        of the Company as a separate legal entity and to make it apparent to third
        Persons that the Company is an entity with assets, liabilities and financial
        accounts distinct from those of the Member, Affiliates of the Member, the
        Managers or any other Person, and that, the Company is not a division of
        any of
        the Member, Affiliates of the Member, the Company’s Affiliates or any other
        Person.  In that regard, and without limiting the foregoing in any
        manner, the Company shall:

       

      (a)           maintain
        office space separate and clearly delineated from the office space of any
        Affiliate, owned by the Company or evidenced by a written lease or sublease
        (even if located in an office owned or leased by, or shared with, an
        Affiliate);

       

      (b)           maintain
        the assets of the Company in such a manner that it is not costly or difficult
        to
        segregate, identify or ascertain its individual assets from those of any
        other
        Person, including any Affiliate;

       

      (c)           maintain
        a separate telephone number which will be answered only in its own
        name;

       

      (d)           conduct
        all transactions with Affiliates on an arm’s-length basis;

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (e)           not
        guarantee, become obligated for or pay the debts of any Affiliate or hold
        the
        credit of the Company out as being available to satisfy the obligations of
        any
        Affiliate or other Person (nor, except as contemplated in the Basic Documents,
        indemnify any Person for losses resulting therefrom), nor, except as
        contemplated in the Basic Documents, have any of its obligations guaranteed
        by
        any Affiliate or hold the Company out as responsible for the debts of any
        Affiliate or other Person or for the decisions or actions with respect to
        the
        business and affairs of any Affiliate, nor seek or obtain credit or incur
        any
        obligation to any third Party based upon the creditworthiness or assets of
        any
        Affiliate or any other Person (i.e. other than based on the assets of the
        Company) nor allow any Affiliate to do such things based on the credit of
        the
        Company;

       

      (f)           except
        as expressly otherwise permitted hereunder or under any of the Basic Documents,
        not permit the commingling or pooling of the Company’s funds or other assets
        with the funds or other assets of any Affiliate;

       

      (g)           maintain
        separate deposit and other bank accounts and funds (separately identifiable
        from
        those of the Member or any other Person) to which no Affiliate has any access,
        which accounts shall be maintained in the name and, to the extent not
        inconsistent with applicable federal tax law, tax identification number of
        the
        Company;

       

      (h)           maintain
        full books of accounts and records (financial or other) and financial statements
        separate from those of its Affiliates or any other Person, prepared and
        maintained in accordance with generally accepted accounting principles
        (including, all resolutions, records, agreements or instruments underlying
        or
        regarding the transactions contemplated by the Basic Documents or otherwise)
        and
        audited annually by an independent accounting firm which shall provide such
        audit to the Indenture Trustee;

       

      (i)           pay
        its own liabilities out of its own funds, including fees and expenses of
        the
        Administrator (as defined in the Administration Agreement) pursuant to the
        Administration Agreement and the Servicer pursuant to any Servicing Agreement,
        provided, however, the foregoing shall not require the Member to make any
        additional capital contributions to the Company;

       

      (j)           compensate
        (either directly or through reimbursement of the Company’s allocable share of
        any shared expenses) all employees, consultants and agents and Affiliates,
        to
        the extent applicable, for services provided to the Company by such employees,
        consultants and agents or Affiliates, in each case, from the Company’s own funds
        and maintain a sufficient number of employees in light of its contemplated
        operations;

       

      (k)           allocate
        fairly and reasonably the salaries of and the expenses related to providing
        the
        benefits of officers or other employees shared with the Member, any Special
        Member or any Manager;

       

      (l)           allocate
        fairly and reasonably any overhead for office space shared with the Member,
        any
        Special Member or any Manager;

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (m)           pay
        from its own bank accounts for accounting and payroll services, rent, lease
        and
        other expenses (or the Company’s allocable share of any such amounts provided by
        one or more other Affiliate) and not have such operating expenses (or the
        Company’s allocable share thereof) paid by any Affiliates, provided, that the
        Member shall be permitted to pay the initial organization expenses of the
        Company and certain of the expenses related to the transactions contemplated
        by
        the Basic Documents as provided therein;

       

      (n)           maintain
        adequate capitalization to conduct its business and affairs considering the
        Company’s size and the nature of its business and intended purposes and, after
        giving effect to the transactions contemplated by the Basic Documents, refrain
        from engaging in a business for which its remaining property represents an
        unreasonably small capital, provided, however, the foregoing shall not require
        the Member to make any additional capital contributions to the
        Company;

       

      (o)           conduct
        all of the Company’s business (whether in writing or orally) solely in the name
        of the Company through the Member and the Company’s Managers, employees,
        officers and agents and hold the Company out as an entity separate from any
        Affiliate;

       

      (p)           not
        make or declare any distributions of cash or property to the Member except
        in
        accordance with appropriate limited liability company formalities and only
        consistent with sound business judgment to the extent that it is permitted
        pursuant to the Basic Documents and not violative of any applicable
        law;

       

      (q)           otherwise
        practice and adhere to all limited liability company procedures and formalities
        to the extent required by this Agreement or all other appropriate constituent
        documents;

       

      (r)           not
        appoint an Affiliate or any employee of an Affiliate as an agent of the Company,
        except as otherwise permitted in the Basic Documents (although such Persons
        can
        qualify as a Manager or as an officer of the Company);

       

      (s)           not
        acquire obligations or securities of or make loans or advances to or pledge
        its
        assets for the benefit of any Affiliate, the Member or any Affiliate of the
        Member;

       

      (t)           not
        permit the Member or any Affiliate to acquire obligations of or make loans
        or
        advances to the Company;

       

      (u)           except
        as expressly provided in the Basic Documents, not permit the Member or any
        Affiliate to guarantee, pay or become liable for the debts of the Company
        nor
        permit any such Person to hold out its creditworthiness as being available
        to
        pay the liabilities and expenses of the Company nor, except for the indemnities
        in this Agreement and the Basic Documents, indemnify any Person for losses
        resulting therefrom;

       

      (v)           maintain
        separate minutes of the actions of the Member and the Managers, including
        the
        transactions contemplated by the Basic Documents;

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (w)           cause
        (i) all written and oral communications, including letters, invoices, purchase
        orders, and contracts, of the Company to be made solely in the name of the
        Company, (ii) the Company to have its own tax identification number (to the
        extent not inconsistent with applicable federal tax law), stationery, checks
        and
        business forms, separate from those of any Affiliate, (iii) all Affiliates
        not
        to use the stationery or business forms of the Company, and cause the Company
        not to use the stationery or business forms of any Affiliate, and (iv) all
        Affiliates not to conduct business in the name of the Company, and cause
        the
        Company not to conduct business in the name of any Affiliate;

       

      (x)           direct
        creditors of the Company to send invoices and other statements of account
        of the
        Company directly to the Company and not to any Affiliate and cause the
        Affiliates to direct their creditors not to send invoices and other statements
        of accounts of such Affiliates to the Company;

       

      (y)           cause
        the Member to maintain as official records all resolutions, agreements, and
        other instruments underlying or regarding the transactions contemplated by
        the
        Basic Documents;

       

      (z)           disclose,
        and cause the Member to disclose, in its financial statements the effects
        of all
        transactions between the Member and the Company in accordance with generally
        accepted accounting principles, and in a manner which makes it clear that
        (i)
        the Company is a separate legal entity, (ii) the assets of the Company
        (including the Rate Stabilization Property transferred to the Company pursuant
        to the Sale Agreement) are not assets of any Affiliate and are not available
        to
        pay creditors of any Affiliate and (iii) neither the Member nor any other
        Affiliate is liable or responsible for the debts of the Company;

       

      (aa)           treat
        and cause the Member to treat the transfer of Rate Stabilization Property
        from
        the Member to the Company as a sale under the Rate Stabilization
        Law;

       

      (bb)           except
        as described herein with respect to tax purposes and financial reporting,
        describe and cause each Affiliate to describe the Company, and hold the Company
        out as a separate legal entity and not as a division or department of any
        Affiliate, and promptly correct any known misunderstanding regarding the
        Company’s identity separate from any Affiliate or any Person;

       

      (cc)           so
        long as any of the Rate Stabilization Bonds are outstanding, treat the Rate
        Stabilization Bonds as debt for all purposes and specifically as debt of
        the
        Company, other than for financial reporting or tax purposes or as required
        under
        the Public Utility Holding Company Act of 2005 and the Federal Power
        Act;

       

      (dd)           solely
        for purposes of federal taxes and, to the extent consistent with applicable
        state, local and other tax law, solely for purposes of state, local and other
        taxes, so long as any of the Rate Stabilization Bonds are outstanding, treat
        the
        Rate Stabilization Bonds as indebtedness of the Member secured by the Rate
        Stabilization Bond Collateral unless otherwise required by appropriate taxing
        authorities;

       

      
        
          
          

        

        
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      (ee)           file
        its own tax returns, if any, as may be required under applicable law, to
        the
        extent (i) not part of a consolidated group filing a consolidated return
        or
        returns or (ii) not treated as a division for tax purposes of another taxpayer,
        and pay any taxes so required to be paid under applicable law;

       

      (ff)           maintain
        its valid existence in good standing under the laws of the State of Delaware
        and
        maintain its qualification to do business under the laws of such other
        jurisdictions as its operations require;

       

      (gg)           not
        form, or cause to be formed, any subsidiaries;

       

      (hh)           comply
        with all laws applicable to the transactions contemplated by this Agreement
        and
        the Basic Documents; and

       

      (ii)           cause
        the Member to observe in all material respects all limited liability company
        procedures and formalities, if any, required by its constituent documents
        and
        the laws of its state of formation and all other appropriate
        jurisdictions.

       

      SECTION
        1.08  Limitation on Certain
        Activities.  Notwithstanding any other provisions of this
        Agreement and any applicable Requirements of Law that otherwise so empower
        the
        Company, the Member, the Managers, any officer of the Company or any other
        Person, the Company, and the Member or the Managers, or any officer of the
        Company or any other Person  on behalf of the Company, shall
        not:

       

      (a)           engage
        in any business or activity other than as set forth in Article I
        hereof;

       

      (b)           without
        the affirmative vote of its Member and the affirmative vote of all of the
        Managers, including all of the Independent Managers, file a voluntary petition
        for relief under the Bankruptcy Code or similar law, consent to the institution
        of insolvency or bankruptcy proceedings against the Company or otherwise
        institute insolvency or bankruptcy proceedings with respect to the Company
        or
        take any company action in furtherance of any such filing or institution
        of a
        proceeding;

       

      (c)           without
        the affirmative vote of its Member and the affirmative vote of all Managers,
        including all of the Independent Managers, and then only to the extent permitted
        by the Basic Documents, convert, merge or consolidate with any other Person
        or
        sell all or substantially all of its assets or acquire all or substantially
        all
        of the assets or capital stock or other ownership interest of any other
        Person;

       

      (d)           take
        any action, file any tax return, or make any election inconsistent with the
        treatment of the Company, for purposes of federal income taxes and, to the
        extent consistent with applicable state tax law, state income and franchise
        tax
        purposes, as a disregarded entity that is not separate from the
        Member;

       

      (e)           incur
        any indebtedness or assume or guarantee any indebtedness of any Person (other
        than the indebtedness incurred under the Basic Documents); or

       

      
        
          
          

        

        
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      (f)           to
        the fullest extent permitted by law, without the affirmative vote of its
        Member
        and the affirmative vote of all Managers, including all of the Independent
        Managers, execute any dissolution, liquidation, or winding up of the
        Company.

       

      To
        the
        fullest extent permitted by applicable law, including Section 18-1101(c)
        of the
        LLC Act, the fiduciary duty of each Manager, including the two Independent
        Managers, in respect of any decision on any matter referred to in this
Section 1.08 shall be owed solely to the Company (including its
        creditors) and not to the Member or any other holders of equity interest
        in the
        Company as may exist at such time.

       

      SECTION
        1.09  No State Law Partnership.  No provisions of
        this Agreement shall be deemed or construed to constitute a partnership
        (including a limited partnership) or joint venture, or the Member a partner
        or
        joint venturer of or with any Manager or the Company, for any
        purposes.

       

      SECTION
        1.10  Authorized Person/Certificates.  Charles A.
        Berardesco is hereby designated as an “authorized person” within the meaning of
        the LLC Act, and has executed, delivered and filed the Certificate of Formation
        of the Company and the Amended and Restated Certificate of Formation of the
        Company with the Secretary of State of the State of Delaware, which filings
        are
        hereby ratified and approved.  Upon the filing of the Amended and
        Restated Certificate of Formation with the Secretary of State of the State
        of
        Delaware, his powers as an “authorized person” ceased, and the Member and each
        Manager thereupon became a designated “authorized person” and shall continue as
        a designated “authorized person” within the meaning of the LLC
        Act.  The Member or Manager or officer shall execute, deliver and file
        any other certificates (and any amendments and/or restatements thereof)
        necessary for the Company to qualify to do business in any jurisdiction in
        which
        the Company may wish to conduct business.

       

      The
        existence of the Company as a
        separate legal entity shall continue until cancellation of the Certificate
        of
        Formation as provided in the LLC Act.

       

      ARTICLE
        II

       

      CAPITAL

       

      SECTION
        2.01  Initial Capital.  The initial capital of the
        Company shall be the sum of cash contributed to the Company by the Member
        (the
“Initial Capital Contribution”) in the amount set out opposite the name
        of the Member on Schedule A hereto, as amended from time to time and
        incorporated herein by this reference.

       

      SECTION
        2.02  Additional Capital Contributions.  The assets
        of the Company are expected to generate a return sufficient to satisfy all
        obligations of the Company under this Agreement and the Basic Documents and
        any
        other obligations of the Company.  It is expected that no capital
        contributions to the Company will be necessary after the purchase of the
        initial
        Rate Stabilization Property, except for capital contributions in connection
        with
        the issuance of one or more Series of Rate Stabilization Bonds.  On or
        prior to the date of issuance of each Series of Rate Stabilization Bonds,
        the
        Member shall make an additional contribution to the Company in an amount
        equal
        to at least 0.50% of the initial principal amount of such Series
        (or

       

      
        
          
          

        

        
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      such
        other amount permitted by any Subsequent Qualified Rate Order) or such greater
        amount as agreed to by the Member in connection with the issuance by the
        Company
        of any Series of Rate Stabilization Bonds which amount the Company shall
        deposit
        into the Capital Subaccount established by the Indenture Trustee as provided
        under Section 8.02 of the Indenture (the “Capital Subaccount
        Contribution”).  No capital contribution by the Member to the
        Company will be made for the purpose of mitigating losses on Rate Stabilization
        Property that has previously been transferred to the Company, and all capital
        contributions shall be made in accordance with all applicable limited liability
        company procedures and requirements, including proper record keeping by the
        Member and the Company. Each capital contribution will be acknowledged by
        a
        written receipt signed by any one of the Managers.  The Managers
        acknowledge and agree that, notwithstanding anything in this Agreement to
        the
        contrary, such additional contribution will be managed by an investment manager
        selected by the Managers who shall direct the Indenture Trustee in writing
        to
        invest such amounts only in Eligible Investments, and all income earned thereon
        shall be allocated or paid by the Indenture Trustee in accordance with the
        provisions of the Indenture.

       

      SECTION
        2.03  Capital Account.  A Capital Account shall be
        established and maintained for the Member on the Company’s books (the
“Capital Account”).

       

      SECTION
        2.04  Interest.  The Member's Initial Capital
        Contribution will be managed by an investment manager selected by the Managers
        who shall invest such amounts only in Eligible Investments, and all income
        earned thereon shall be distributed by the Managers to the Member in accordance
        with Section 6.02 hereof.  The Member will earn a return on its
        Capital Subaccount Contribution only as provided in the Financing Credit
        Order.

       

      ARTICLE
        III

       

      ALLOCATIONS;
        BOOKS

       

      SECTION
        3.01  Allocations of Income and Loss.

       

      (a)           Book
        Allocations.  The net income and net loss of the Company shall be
        allocated entirely to the Member.

       

      (b)           Tax
        Allocations. Because the Company is not making (and
        will not make) an election to be treated as an association taxable as a
        corporation under Section 301.7701-3(a) of the Treasury Regulations, and
        because
        the Company is a business entity that has a single owner and is not a
        corporation, it is expected to be disregarded as an entity separate from
        its
        owner for federal income tax purposes under Section 301.7701-3(b)(1) of the
        Treasury Regulations.  Accordingly, all items of income, gain, loss,
        deduction and credit of the Company for all taxable periods will be treated
        for
        federal income tax purposes, and for state and local income and other tax
        purposes to the extent permitted by applicable law, as realized or incurred
        directly by the Member.  To the extent not so permitted, all items of
        income, gain, loss, deduction and credit of the Company shall be allocated
        entirely to the Member as permitted by applicable tax law, and the Member
        shall
        pay (or indemnify the Company, the Indenture Trustee and each of their officers,
        managers, employees or agents for, and defend and hold harmless each such
        person
        from and against its payment of) any taxes levied or assessed upon all or
        any
        part of

       

      
        
          
          

        

        
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      the
        Company’s property or assets based on existing law as of the date hereof,
        including any sales, gross receipts, general corporation, personal property,
        privilege, franchise or license taxes (but excluding any
        taxes  imposed as a result of a failure of such person to properly
        withhold or remit taxes imposed with respect to payments on any Rate
        Stabilization Bond).  The Indenture Trustee (on behalf of the Secured
        Parties) shall be third party beneficiaries of the Member’s obligations set
        forth in this Section 3.01, it being understood that Bondholders shall be
        entitled to enforce their rights against the Member under this Section
        3.01 solely through a cause of action brought for their benefit by the
        Indenture Trustee.

      

      SECTION
        3.02  Company to be Disregarded for Tax
        Purposes.  The Company shall comply with the applicable provisions
        of the Code and the applicable Treasury Regulations thereunder in the manner
        necessary to effect the intention of the parties that the Company be treated,
        for federal income tax purposes, as a disregarded entity that is not separate
        from the Member pursuant to Treasury Regulations Section 301.7701-1 et seq.
        and
        that the Company be accorded such treatment until its dissolution pursuant
        to
Article IX hereof and shall take all actions, and shall refrain from
        taking any action, required by the Code or Treasury Regulations thereunder
        in
        order to maintain such status of the Company.  In addition, for
        federal income tax purposes, the Company may not claim any credit on, or
        make
        any deduction from the principal or premium, if any, or interest payable
        in
        respect of, the Rate Stabilization Bonds (other than amounts properly withheld
        from such payments under the Code or other tax laws) or assert any claim
        against
        any present or former Bondholder by reason of the payment of the taxes levied
        or
        assessed upon any part of the Rate Stabilization Bond Collateral.

       

      SECTION
        3.03  Books of Account.  At all times during the
        continuance of the Company, the Company shall maintain or cause to be maintained
        full, true, complete and correct books of account in accordance with generally
        accepted accounting principles, using the fiscal year and taxable year of
        the
        Member.  In addition, the Company shall keep all records required to
        be kept pursuant to the LLC Act.

       

      SECTION
        3.04  Access to Accounting Records.  All books and
        records of the Company shall be maintained at any office of the Company or
        at
        the Company’s principal place of business, and the Member, and its duly
        authorized representative, shall have access to them at such office of the
        Company and the right to inspect and copy them at reasonable times.

       

      SECTION
        3.05  Annual Tax Information.  The Managers shall
        cause the Company to deliver to the Member all information necessary for
        the
        preparation of the Member’s federal income tax return.

       

      SECTION
        3.06  Internal Revenue Service Communications.  The
        Member shall communicate and  negotiate with the Internal Revenue
        Service on any federal tax matter on behalf of  the Member and the
        Company.

       

      
        
          
          

        

        
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      ARTICLE
        IV

       

      MEMBER

       

      SECTION
        4.01  Powers.  Subject to the provisions of this
        Agreement and the LLC Act, all powers shall be exercised by or under the
        authority of, and the business and affairs of the Company shall be controlled
        by, the Member pursuant to Section 4.04.  The Member may
        delegate any or all such powers to the Managers.  Without prejudice to
        such general powers, but subject to the same limitations, it is hereby expressly
        declared that the Member shall have the following powers:

       

      (a)           To
        select and remove the Managers and all officers, agents and employees of
        the
        Company, prescribe such powers and duties for them as may be consistent with
        the
        LLC Act and other applicable law and this Agreement, fix their compensation,
        and
        require from them security for faithful service; provided, that, at all
        times the Company shall have at least two Independent Managers.  The
        Member shall appoint two Independent Managers pursuant to Article
        VII.  An “Independent Manager” is a Manager that is a natural
        person and is not and has not been for at least five years from the date
        of his
        or her or its appointment (i) a direct or indirect legal or beneficial owner
        of
        the Company or the Member or any of their respective Affiliates, (ii) a
        relative, supplier (other than an Independent Manager provided by a corporate
        services company that provides independent managers in the ordinary course
        of
        its business), employee, officer, director (other than as an independent
        director), manager (other than as an independent manager), contractor or
        material creditor of the Company or the Member or any of their respective
        Affiliates or (iii) a Person who controls (whether directly, indirectly or
        otherwise) the Member or its Affiliates or any creditor, employee, officer,
        director, manager or material supplier or contractor of the Member or its
        Affiliates; provided, that the indirect or beneficial ownership of stock
        of the Member or its Affiliates through a mutual fund or similar diversified
        investment vehicle with respect to which the owner does not have discretion
        or
        control over the investments held by such diversified investment vehicle
        shall
        not preclude such owner from being an Independent Manager.  All right,
        power and authority of the Independent Managers shall be limited to the extent
        necessary to exercise those rights and perform those duties specifically
        set
        forth in this Agreement.  Except as provided in this Agreement,
        including Section 1.08, in exercising their rights and performing their
        duties under this Agreement, any Independent Manager shall have a fiduciary
        duty
        of loyalty and care similar to that of a director of a business corporation
        organized under the General Corporation Law of the State of
        Delaware.  No Independent Manager shall at any time serve as trustee
        in bankruptcy for any Affiliate of the Company.  The Company shall pay
        the Independent Managers annual fees totaling not more than $5,000 per year
        (the
“Independent Manager Fee”).  Such fees shall be determined
        without regard to the income of the Company, shall not be deemed to constitute
        distributions to the recipient of any profit, loss or capital of the Company
        and
        shall be considered a fixed Operating Expense of the Company subject to the
        limitations on such expenses set forth in the Qualified Rate
        Order.  Each Manager, including each Independent Manager, is hereby
        deemed to be a “manager” within the meaning 18-101(10) of the LLC
        Act.

       

      (b)           Subject
        to Article VII hereof, to conduct, manage and control the affairs and
        business of the Company, and to make such rules and regulations therefor
        consistent with the LLC Act and other applicable law and this
        Agreement.

       

      
        
          
          

        

        
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      (c)           To
        change the registered agent and office of the Company in Delaware from one
        location to another; to fix and locate from time to time one or more other
        offices of the Company; and to designate any place within or without the
        State
        of Delaware for the conduct of the business of the Company.

       

      SECTION
        4.02  Reimbursement of Member Expenses.  To the
        extent permitted by applicable Requirements of Law, the Company shall have
        authority to reimburse the Member for out-of-pocket expenses incurred by
        the
        Member in connection with its service to the Company.  It is
        understood that the compensation paid to the Member under the provisions
        of this
Section 4.02 shall be determined without regard to the income of the
        Company, shall not be deemed to constitute distributions to the recipient
        of any
        profit, loss or capital of the Company and shall be considered as an Operating
        Expense of the Company.

       

      SECTION
        4.03  Other Ventures.  Not withstanding any duty
        otherwise existing at law or in equity, it is expressly agreed that the Member,
        the Managers and any Affiliates, officers, directors, managers, stockholders,
        partners or employees of the Member, may engage in other business ventures
        of
        any nature and description, whether or not in competition with the Company,
        independently or with others, and the Company shall not have any rights in
        and
        to any independent venture or activity or the income or profits derived
        therefrom.

       

      SECTION
        4.04  Actions by the Member.  All actions of the
        Member may be taken by written resolution of the Member which shall be signed
        on
        behalf of the Member by an authorized officer of the Member and filed with
        the
        records of the Company.

       

      ARTICLE
        V

       

      OFFICERS

       

      SECTION
        5.01  Designation; Term; Qualifications.

       

      (a)           Officers.  The
        officers of the Company as of the date hereof shall be designated by the
        Member.  The Managers may, from time to time, designate one or more
        additional persons to be officers of the Company.  Any officer so
        designated shall have such title and authority and perform such duties as
        the
        Managers may, from time to time, delegate to them.  Each officer shall
        hold office for the term for which such officer is designated and until its
        successor shall be duly designated and shall qualify or until its death,
        resignation or removal as provided in this Agreement. Any Person may hold
        any
        number of offices.  No officer need be a Manager, the Member, a
        Delaware resident, or a United States citizen. The Member hereby appoints
        the
        Persons identified on Schedule C to be the officers of the Company as of
        the date hereof.

       

      (b)           President.  The
        President shall be the chief executive officer of the Company, shall preside
        at
        all meetings of the Managers, shall be responsible for the general and active
        management of the business of the Company and shall see that all orders and
        resolutions of the Managers are carried into effect.  The President or
        any other officer authorized by the President or the Managers may execute
        all
        contracts, except:  (i) where required or permitted by law or this
        Agreement to be otherwise signed and executed, including Sections 1.05
        and 1.08;

       

      
        
          
          

        

        
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      and
        (ii)
        where signing and execution thereof shall be expressly delegated by the Managers
        to some other officer or agent of the Company.

       

      (c)           Vice
        President.  In the absence of the President or in the event of the
        President’s inability to act, the Vice President, if any (or in the event there
        be more than one Vice President, the Vice Presidents in the order designated
        by
        the Managers, or in the absence of any designation, then in the order of
        their
        election), shall perform the duties of the President, and when so acting,
        shall
        have all the powers of and be subject to all the restrictions upon the
        President.  The Vice Presidents, if any, shall perform such other
        duties and have such other powers as the Managers may from time to time
        prescribe.

       

      (d)           Secretary
        and Assistant Secretary.  The Secretary shall be responsible for
        filing legal documents and maintaining records for the Company.  The
        Secretary shall attend all meetings of the Managers and record all the
        proceedings of the meetings of the Company and of the Managers in a book
        to be
        kept for that purpose and shall perform like duties for the standing committees
        when required.  The Secretary shall give, or shall cause to be given,
        notice of all meetings of the Member, if any, and special meetings of the
        Managers, and shall perform such other duties as may be prescribed by the
        Managers or the President, under whose supervision the Secretary shall
        serve.  The Assistant Secretary, or if there be more than one, the
        Assistant Secretaries in the order determined by the Managers (or if there
        be no
        such determination, then in order of their designation), shall, in the absence
        of the Secretary or in the event of the Secretary’s inability to act, perform
        the duties and exercise the powers of the Secretary and shall perform such
        other
        duties and have such other powers as the Managers may from time to time
        prescribe.

       

      (e)           Treasurer
        and Assistant Treasurer.  The Treasurer shall have the custody of
        the Company funds and securities and shall keep full and accurate accounts
        of
        receipts and disbursements in books belonging to the Company and shall deposit
        all moneys and other valuable effects in the name and to the credit of the
        Company in such depositories as may be designated by the Manager.  The
        Treasurer shall disburse the funds of the Company as may be ordered by the
        Manager, taking proper vouchers for such disbursements, and shall render
        to the
        President and to the Managers, at its regular meetings or when the Managers
        so
        require, an account of all of the Treasurer’s transactions and of the financial
        condition of the Company.  The Assistant Treasurer, or if there shall
        be more than one, the Assistant Treasurers in the order determined by the
        Managers (or if there be no such determination, then in the order of their
        designation), shall, in the absence of the Treasurer or in the event of the
        Treasurer’s inability to act, perform the duties and exercise the powers of the
        Treasurer and shall perform such other duties and have such other powers
        as the
        Managers may from time to time prescribe.

       

      (f)           Officers
        as Agents.  The officers of the Company, to the extent their
        powers as set forth in this Agreement or otherwise vested in them by action
        of
        the Managers are not inconsistent with this Agreement, are agents of the
        Company
        for the purpose of the Company’s business and, subject to Section 1.08,
        the actions of the officers taken in accordance with such powers shall bind
        the
        Company.

       

      (g)           Duties
        of Managers and Officers.  Except to the extent otherwise modified
        herein, each Manager and officer of the Company shall have a fiduciary duty
        of
        loyalty and care

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      similar
        to that of directors and officers of business corporations organized under
        the
        General Corporation Law of the State of Delaware.

       

      SECTION
        5.02  Removal and Resignation.  Any officer of the
        Company may be removed as such, with or without cause, by the Managers at
        any
        time.  Any officer of the Company may resign as such at any time upon
        written notice to the Company.  Such resignation shall be made in
        writing and shall take effect at the time specified therein or, if no time
        is
        specified therein, at the time of its receipt by the Managers.

       

      SECTION
        5.03  Vacancies.  Any vacancy occurring in any office
        of the Company may be filled by the Managers.

       

      SECTION
        5.04  Compensation.  The compensation, if any, of the
        officers of the Company shall be fixed from time to time by the
        Managers.  Such compensation shall be determined without regard to the
        income of the Company, shall not be deemed to constitute distributions to
        the
        recipient of any profit, loss or capital of the Company and shall be considered
        an Operating Expense of the Company.

       

      ARTICLE
        VI

       

      MEMBERSHIP
        INTEREST

       

      SECTION
        6.01  General.  “Membership Interest” means
        the limited liability company interest of the Member in the Company. The
        Membership Interest constitutes personal property and, subject to Section
        6.06, shall be freely transferable and assignable in whole but not in part
        upon registration of such transfer and assignment on the books of the Company
        in
        accordance with the procedures established for such purpose by the Managers
        of
        the Company.

       

      SECTION
        6.02  Distributions.  The Member shall be entitled to
        receive, out of the assets of the Company legally available therefor,
        distributions payable in cash in such amounts, if any, as the Managers shall
        declare.  Notwithstanding any provision to the contrary contained in
        this Agreement, the Company shall not be required to make a distribution
        to the
        Member on account of its interest in the Company if such distribution would
        violate the LLC Act or any other applicable law or any Basic
        Document.

       

      SECTION
        6.03  Rights on Liquidation, Dissolution or Winding
        Up.

       

      (a)           In
        the event of any liquidation, dissolution or winding up of the Company, the
        Member shall be entitled to all remaining assets of the Company available
        for
        distribution to the Member after satisfaction (whether by payment or reasonable
        provision for payment) of all liabilities, debts and obligations of the
        Company.

       

      (b)           Neither
        the sale of all or substantially all of the property or business of the Company,
        nor the merger or consolidation of the Company into or with another Person
        or
        other entity, shall be deemed to be a dissolution, liquidation or winding
        up,
        voluntary or involuntary, for the purpose of this Section
        6.03.

       

      SECTION
        6.04  Redemption.  The Membership Interest shall not
        be redeemable.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      SECTION
        6.05  Voting Rights.  Subject to the terms of this
        Agreement, the Member shall have the sole right to vote on all matters as
        to
        which members of a limited liability company shall be entitled to vote pursuant
        to the LLC Act and other applicable law.

       

      SECTION
        6.06  Transfer of Membership Interests.

       

      (a)           The
        Member may transfer its Membership Interest, in whole but not in part, but
        the
        transferee shall not be admitted as a Member except in accordance with
Section 1.02 or 6.07.  Until the transferee is admitted
        as a Member, the Member shall continue to be the sole member of the Company
        (subject to Section 1.02) and to be entitled to exercise any rights or
        powers of a Member of the Company with respect to the Membership Interest
        transferred.

       

      (b)           To
        the fullest extent permitted by law, any purported transfer of any Membership
        Interest in violation of the provisions of this Agreement shall be wholly
        void
        and shall not effectuate the transfer contemplated
        thereby.  Notwithstanding anything contained herein to the contrary
        and to the fullest extent permitted by law, the Member may not transfer any
        Membership Interest in violation of any provision of this Agreement or in
        violation of any applicable federal or state securities laws.

       

      SECTION
        6.07  Admission of Transferee as Member.

       

      (a)           A
        transferee of a Membership Interest desiring to be admitted as a Member must
        execute a counterpart of, or an agreement adopting, this Agreement and, except
        as permitted by paragraph (b) below, shall not be admitted without unanimous
        affirmative vote of the Managers, which vote must include the affirmative
        vote
        of two Independent Managers.  Upon admission of the transferee as a
        Member, the transferee shall have the rights, powers and duties and shall
        be
        subject to the restrictions and liabilities of the Member under this Agreement
        and the LLC Act.  The transferee shall also be liable, to the extent
        of the Membership Interest transferred, for the unfulfilled obligations,
        if any,
        of the transferor Member to make capital contributions to the Company, but
        shall
        not be obligated for liabilities unknown to the transferee at the time such
        transferee was admitted as a Member and that could not be ascertained from
        this
        Agreement.  Except as set forth in paragraph (b) below, whether or not
        the transferee of a Membership Interest becomes a Member, the Member
        transferring the Membership Interest is not released from any liability to
        the
        Company under this Agreement or the LLC Act.

       

      (b)           The
        approval of the Managers, including the Independent Managers, shall not be
        required for a transfer under Section 1.02 or for the transfer of the
        Membership Interest from the Member to any successor pursuant to Section
        5.02 of the Sale Agreement or the admission of such Person as a
        Member.  Once the transferee of a Membership Interest pursuant to this
        paragraph (b) becomes a Member, the prior Member shall be released from any
        liability to the Company under this Agreement and the LLC Act.  The
        transferee of the Membership Interest pursuant to Section 5.02 of the
        Sale Agreement shall be admitted to the Company as a Member of the Company
        upon
        its execution of a counterpart to this Agreement.

       

      (c)  If
        the Member transfers all of its Membership Interest in accordance with this
        Agreement, the admission of the transferee shall be deemed effective immediately
        prior to the

       

      
        
          
          

        

        
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      transfer
        and, immediately following such admission, the transferor Member shall cease
        to
        be a member of the Company.

       

      ARTICLE
        VII

       

      MANAGERS

       

      SECTION
        7.01  Managers.

       

      (a)           Subject
        to Section 1.08 and Article VII, the business and affairs of the Company
        shall be managed by or under the direction of two or more Managers designated
        by
        the Member.  Subject to the terms of this Agreement, the Member may
        determine at any time in its sole and absolute discretion the number of
        Managers.  Subject in all cases to the terms of this Agreement, the
        authorized number of Managers may be increased or decreased by the Member
        at any
        time in its sole and absolute discretion, upon notice to all Managers;
provided, that, at all times the Company shall have at least two
        Independent Managers.  The number of Managers as of the date hereof
        shall be five, two of which shall be Independent
        Managers.  

       

      (b)           Each
        Manager shall be designated by the Member and shall hold office for the term
        for
        which designated and until a successor has been designated or until such
        Manager’s earlier death, resignation, expulsion or removal.  Each
        Manager shall execute and deliver the management agreement in the form attached
        hereto as Exhibit A (such management agreement to be deemed incorporated
        into, and part of, this Agreement).  Managers need not be a
        Member.  The Managers designated by the Member are listed on
Schedule B hereto.

       

      (c)           The
        Managers shall be obliged to devote only as much of their time to the Company’s
        business as shall be reasonably required in light of the Company’s business and
        objectives.  A Manager shall perform his or her duties as a Manager in
        good faith, in a manner he or she reasonably believes to be in the best
        interests of the Company, and with such care as an ordinarily prudent Person
        in
        a like position would use under similar circumstances.

       

      (d)           Except
        as otherwise provided in this Agreement, the Managers shall act by the
        affirmative vote of a majority of the Managers.  Each Manager shall
        have the authority to sign duly authorized agreements and other instruments
        on
        behalf of the Company without the joinder of any other Manager.

       

      (e)           Subject
        to the terms of this Agreement, any action may be taken by the Managers without
        a meeting and without prior notice if authorized by the written consent of
        a
        majority of the Managers (or such greater number as is required by this
        Agreement), which written consent shall be filed with the records of the
        Company.

       

      (f)           Every
        Manager is an agent of the Company for the purpose of its business, and the
        act
        of every Manager, including the execution in the Company name of any instrument
        for carrying on the business of the Company, binds the Company, unless such
        act
        is in contravention of this Agreement or unless the Manager so acting otherwise
        lacks the authority to act for the Company and the Person with whom he or
        she is
        dealing has knowledge of the fact that he or she has no such
        authority.

       

      
        
          
          

        

        
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      SECTION
        7.02  Powers of the Managers.  Subject to the terms
        of this Agreement, the Managers shall have the right and authority to take
        all
        actions which the Managers deem incidental, necessary, suitable or convenient
        for the day-to-day management and conduct of the Company’s
        business.

       

      The
        Independent Managers may not delegate their duties, authorities or
        responsibilities hereunder.  If any Independent Manager resigns, dies
        or becomes incapacitated, or such position is otherwise vacant, no action
        requiring the unanimous affirmative vote of the Managers shall be taken until
        a
        successor Independent Manager is appointed by the Member and qualifies and
        approves such action.

       

      Each
        Independent Manager will, to the fullest extent permitted by law, including
        Section 18-1101(c) of the LLC Act, owe its primary fiduciary duty to the
        Company
        (including the creditors of the Company).

       

      No
        Independent Manager shall at any time serve as trustee in bankruptcy for
        any
        Affiliate of the Company.

       

      Subject
        to the terms of this Agreement, the Managers may exercise all powers of the
        Company and do all such lawful acts and things as are not prohibited by the
        LLC
        Act, other applicable law or this Agreement directed or required to be exercised
        or done by the Member.  All duly authorized instruments, contracts,
        agreements and documents providing for the acquisition or disposition of
        property of the Company shall be valid and binding on the Company if executed
        by
        one or more of the Managers.

       

      SECTION
        7.03  Reimbursement of Expenses.  To the extent
        permitted by applicable Requirements of Law, the Company may reimburse any
        Manager, directly or indirectly, for out-of-pocket expenses incurred by such
        Manager in connection with its services rendered to the Company.  Such
        reimbursement shall be determined by the Managers without regard to the income
        of the Company, shall not be deemed to constitute distributions to the recipient
        of any profit, loss or capital of the Company and shall be considered an
        Operating Expense of the Company.

       

      SECTION
        7.04  Removal of Managers.

       

      (a)           Subject
        to Sections 4.01 and 7.01, the Member may remove any Manager with
        or without cause at any time.

       

      (b)           Subject
        to Sections 4.01 and 7.05, any removal of a Manager shall become
        effective on such date as may be specified by the Member and in a notice
        delivered to any remaining Managers or the Manager designated to replace
        the
        removed Manager (except that it shall not be effective on a date earlier
        than
        the date such notice is delivered to the remaining or newly-elected
        Manager).  Should a  Manager be removed who is also the
        Member, the Member shall continue to participate in the Company as the Member
        and receive its share of the Company’s income, gains, losses, deductions and
        credits pursuant to this Agreement.

       

      SECTION
        7.05  Resignation of Manager.  A Manager other than
        an Independent Manager may resign as a Manager at any time by thirty (30)
        days’
prior notice to the Member.

       

      
        
          
          

        

        
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      An
        Independent Manager may not withdraw or resign as a Manager of the Company
        without the consent of the Member.  No resignation or removal of an
        Independent Manager, and no appointment of a successor Independent Manager,
        shall be effective until such successor (i) shall have accepted his or her
        appointment as an Independent Manager by a written instrument, which may
        be a
        counterpart signature page to the Management Agreement, and (ii) shall have
        executed a counterpart to this Agreement as required by Section
        1.02(b).

       

      SECTION
        7.06  Vacancies.  Subject to Section 4.01, any
        vacancies among the Managers may be filled by the Member.  In the
        event of a vacancy in the position of Independent Manager, the Member shall,
        as
        soon as practicable, appoint a successor Independent Manager.

       

      SECTION
        7.07  Meetings of the Managers.  The Managers may
        hold meetings, both regular and special, within or outside the State of
        Delaware.  Regular meetings of the Managers may be held without notice
        at such time and at such place as shall from time to time be determined by
        the
        Managers.  Special meetings of the Managers may be called by the
        President on not less than one day’s notice to each Manager by telephone,
        facsimile, mail, telegram or any other means of communication, and special
        meetings shall be called by the President or Secretary in like manner and
        with
        like notice upon the written request of any one or more of the
        Managers.

       

      SECTION
        7.08  Electronic Communications.  Managers, or any
        committee designated by the Managers, may participate in meetings of the
        Managers, or any committee, by means of telephone conference or similar
        communications equipment that allows all Persons participating in the meeting
        to
        hear each other, and such participation in a meeting shall constitute presence
        in Person at the meeting.  If all the participants are participating
        by telephone conference or similar communications equipment, the meeting
        shall
        be deemed to be held at the principal place of business of the
        Company.

       

      SECTION
        7.09  Committees of Managers.

       

      (a)           The
        Managers may, by resolution passed by a majority of the Managers, designate
        one
        or more committees, each committee to consist of one or more of the
        Managers.  The Managers may designate one or more Managers as
        alternate members of any committee, who may replace any absent or disqualified
        member at any meeting of the committee.

       

      (b)           In
        the absence or disqualification of a member of a committee, the member or
        members thereof present at any meeting and not disqualified from voting,
        whether
        or not such members constitute a quorum, may unanimously appoint another
        Manager
        to act at the meeting in the place of any such absent or disqualified
        member.

       

      
        	
                 

              	
                (i)

              	
                Any
                  such committee, to the extent provided in the resolution of the
                  Managers,
                  shall have and may exercise all the powers and authority of the
                  Managers
                  in the management of the business and affairs of the
                  Company.  Such committee or committees shall have such name or
                  names as may be determined from time to time by resolution adopted
                  by the
                  Managers.  Each committee shall keep regular minutes of its
                  meetings and report the same to the Managers when
                  required.

              

      

       

      
        
          
          

        

        
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      SECTION
        7.10  Limitations on Independent Managers.  All
        right, power and authority of the Independent Managers shall be limited to
        the
        extent necessary to exercise those rights and perform those duties specifically
        set forth in this Agreement.

       

      ARTICLE
        VIII

       

      EXPENSES

       

      SECTION
        8.01  Expenses.  Except as otherwise provided in this
        Agreement or the Basic Documents, the Company shall be responsible for all
        expenses and the allocation thereof including without limitation:

       

      (a)           all
        expenses incurred by the Member or its Affiliates in organizing the
        Company;

       

      (b)           all
        expenses related to the business of the Company and all routine administrative
        expenses of the Company, including the maintenance of books and records of
        the
        Company, the preparation and dispatch to the Member of checks, financial
        reports, tax returns and notices required pursuant to this
        Agreement;

       

      (c)           all
        expenses incurred in connection with any litigation or arbitration involving
        the
        Company (including the cost of any investigation and preparation) and the
        amount
        of any judgment or  settlement paid in connection
        therewith;

       

      (d)           all
        expenses for indemnity or contribution payable by the Company to any
        Person;

       

      (e)           all
        expenses incurred in connection with the collection of amounts due to the
        Company from any Person;

       

      (f)           all
        expenses incurred in connection with the preparation of amendments to this
        Agreement;

       

      (g)           all
        expenses incurred in connection with the liquidation, dissolution and winding
        up
        of the Company; and

       

      (h)           all
        expenses otherwise allocated in good faith to the Company by the
        Managers.

       

      
        
          
          

        

        
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      ARTICLE
        IX

       

      PERPETUAL
        EXISTENCE; DISSOLUTION, LIQUIDATION AND WINDING-UP

       

      SECTION
        9.01  Existence.

       

      (a)           The
        Company shall have a perpetual existence.  So long as any of the
        Company’s Rate Stabilization Bonds shall remain Outstanding, to the fullest
        extent permitted by law, the Member shall not be entitled to consent to the
        dissolution of the Company.

       

      (b)           Notwithstanding
        any provision of this Agreement, the bankruptcy (as defined in the LLC Act)
        of
        the Member or a Special Member will not cause such Member or Special Member
        to
        cease to be a member of the Company, and upon the occurrence of such an event,
        the business of the Company shall continue without dissolution.  Upon
        the occurrence of any event that causes the last remaining member of the
        Company
        to cease to be a member of the Company or that causes the Member of the Company
        to cease to be a member of the Company (other than upon continuation of the
        Company without dissolution upon the transfer or assignment by the Member
        of all
        of its limited liability company interest in the Company and the prior or
        simultaneous admission of the transferee as a member of the Company pursuant
        to
Section 6.06 and 6.07), to the fullest extent permitted by law,
        the personal representative of such member is hereby authorized to, and shall,
        within ninety (90) days after the occurrence of the event that terminated
        the
        continued membership of such member in the Company, agree in writing (i)
        to
        continue the Company and (ii) to the admission of the personal
        representative or its nominee or designee, as the case may be, as a substitute
        member of the Company, effective as of the occurrence of the event that
        terminated the continued membership of the last remaining member of the Company
        in the Company.

       

      SECTION
        9.02  Dissolution.  The Company shall be dissolved
        and its affairs shall be wound up upon the occurrence of the earliest of
        the
        following events:

       

      (a)           subject
        to Sections 1.07, 1.08 and 9.01(a), the election to
        dissolve the Company made in writing by the Member and each Manager, including
        the Independent Managers, as permitted under the Basic Documents and after
        the
        discharge in full of the Rate Stabilization Bonds;

       

      (b)           the
        occurrence of any event that causes the last remaining member of the Company
        to
        cease to be a member of the Company unless the business of the Company is
        continued without dissolution in a manner permitted by the LLC Act or this
        Agreement; or

       

      (c)           the
        entry of a decree of judicial dissolution of the Company pursuant to Section
        18-802 of the LLC Act.

       

      SECTION
        9.03  Accounting.  In the event of the dissolution,
        liquidation and winding-up of the Company, a proper accounting shall be made
        of
        the Capital Account of the Member and of the net income or net loss of the
        Company from the date of the last previous accounting to the date of
        dissolution.

       

      
        
          
          

        

        
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      SECTION
        9.04  Certificate of Cancellation.  As soon as
        possible following the occurrence of any of the events specified in Section
        9.02 and the completion of the winding up of the Company, the Person winding
        up the business and affairs of the Company, as an authorized person within
        the
        meaning of the LLC Act, shall cause to be executed a Certificate of Cancellation
        of the Certificate of Formation and file the Certificate of Cancellation
        of the
        Certificate of Formation as required by the LLC Act.

       

      SECTION
        9.05  Winding Up.  Upon the occurrence of any event
        specified in Section 9.02, the Company shall continue solely for the
        purpose of winding up its affairs in an orderly manner, liquidating its assets,
        and satisfying the claims of its creditors.  The Member, or if there
        is no Member, the Managers, shall be responsible for overseeing the winding
        up
        and liquidation of the Company, shall take full account of the liabilities
        of
        the Company and its assets, shall either cause its assets to be sold or
        distributed, and if sold as promptly as is consistent with obtaining the
        fair
        market value thereof, shall cause the proceeds therefrom, to the extent
        sufficient therefor, to be applied and distributed as provided in Section
        9.06.

       

      SECTION
        9.06  Order of Payment of Liabilities Upon
        Dissolution.  After determining that all debts and liabilities of
        the Company, including all contingent, conditional or unmatured liabilities
        of
        the Company, in the process of winding-up, including, without limitation,
        debts
        and liabilities to the Member in the event it is a creditor of the Company
        to
        the extent otherwise permitted by law, have been satisfied or adequately
        provided for, the remaining assets shall be distributed in cash or in kind
        to
        the Member.

       

      SECTION
        9.07  Limitations on Payments Made in
        Dissolution.  Except as otherwise specifically provided in this
        Agreement, the Member shall only be entitled to look solely to the assets
        of
        Company for the return of its positive Capital Account balance and shall
        have no
        recourse for its Capital Contribution and/or share of net income (upon
        dissolution or otherwise) against any Manager.

       

      SECTION
        9.08  Limitation on Liability.  Except as otherwise
        provided by the LLC Act and except as otherwise characterized for tax and
        financial reporting purposes, the debts, obligations and liabilities of the
        Company, whether arising in contract, tort or otherwise, shall be solely
        the
        debts, obligations and liabilities of the Company, and no Member or Manager
        shall be obligated personally for any such debt, obligation or liability
        of the
        Company solely by reason of being a Member or a  Manager.

       

      ARTICLE
        X

       

      INDEMNIFICATION

       

      SECTION
        10.01  Indemnity.  Subject to the provisions of
Section 10.04  hereof, to the fullest extent permitted by law,
        the Company shall indemnify any Person who was or is a party or is threatened
        to
        be made a party to any threatened, pending or completed action, suit or
        proceeding, whether civil, criminal, administrative or investigative, except
        an
        action by or in the right of the Company, by reason of the fact that such
        Person
        is or was a Manager, Member, Special Member, officer, controlling Person,
        employee, legal representative or agent of the Company, or is or was serving
        at
        the request of the Company as a member, manager, director,

       

      
        
          
          

        

        
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      officer,
        partner, shareholder, controlling Person, employee, legal representative
        or
        agent of another limited liability company, partnership, corporation, joint
        venture, trust or other enterprise, against expenses, including attorneys’ fees,
        judgments, fines and amounts paid in settlement actually and reasonably incurred
        by such Person in connection with the action, suit or proceeding if such
        Person
        acted in good faith and in a manner which such Person reasonably believed
        to be
        in or not opposed to the best interests of the Company, and, with respect
        to a
        criminal action or proceeding, had no reasonable cause to believe such Person’s
        conduct was unlawful; providedthat such Person shall not be entitled to
        indemnification if such judgment, penalty, fine or other expense was directly
        caused by such Person’s fraud, gross negligence or willful
        misconduct.

       

      SECTION
        10.02  Indemnity for Actions By or In the Right of the
        Company.  Subject to the provisions of Section 10.04
        hereof, to the fullest extent permitted by law, the Company shall indemnify
        any
        Person who was or is a party or is threatened to be made a party to any
        threatened, pending or completed action or suit by or in the rights of the
        Company to procure a judgment in its favor by reason of the fact that such
        Person is or was a Member, Manager, Special Member, officer, controlling
        Person,
        employee, legal representative or agent of the Company, or is or was serving
        at
        the request of the Company as a member, manager, director, officer, partner,
        shareholder, controlling Person, employee, legal representative or agent
        of
        another limited liability company, corporation, partnership, joint venture,
        trust or other enterprise, against expenses, including amounts paid in
        settlement and attorneys’ fees actually and reasonably incurred by such Person
        in connection with the defense or settlement of the actions or suit if such
        Person acted in good faith and in a manner which such Person reasonably believed
        to be in or not opposed to the best interests of the Company; provided
        that such Person shall not be entitled to indemnification if such judgment,
        penalty, fine or other expense was directly caused by such Person’s fraud, gross
        negligence or willful misconduct.  Indemnification may not be made for
        any claim, issue or matter as to which such Person has been adjudged by a
        court
        of competent jurisdiction, after exhaustion of all appeals therefrom, to
        be
        liable to the Company or for amounts paid in settlement to the Company, unless
        and only to the extent that the court in which the action or suit was brought
        or
        other court of competent jurisdiction determines upon application that in
        view
        of all the circumstances of the case, the Person is fairly and reasonably
        entitled to indemnity for such expenses as the court deems proper.

       

      SECTION
        10.03  Indemnity If Successful.  To the fullest
        extent permitted by law, the Company shall indemnify any Person who is or
        was a
        Manager, Member, Special Member, officer, controlling Person, employee, legal
        representative or agent of the Company, or is or was serving at the request
        of
        the Company as a member, manager, director, officer, partner, shareholder,
        controlling Person, employee, legal representative or agent of another limited
        liability company, corporation, partnership, joint venture, trust or other
        enterprise against expenses, including attorneys’ fees, actually and reasonably
        incurred by him or her in connection with the defense of any action, suit
        or
        proceeding referred to in Sections 10.01 and 10.02 or in defense
        of any claim, issue or matter therein, to the extent that such Person has
        been
        successful on the merits.

       

      SECTION
        10.04  Expenses.  Any indemnification under
Sections 10.01 and 10.02, as well as the advance payment of
        expenses permitted under Section 10.05 unless ordered by a court or
        advanced pursuant to Section 10.05 below, must be made by the Company
        only as

       

      
        
          
          

        

        
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      authorized
        in the specific case upon a determination that indemnification of the Manager,
        Member, Special Member, officer, controlling Person, employee, legal
        representative or agent is proper in the circumstances.  The
        determination must be made:

       

      (a)           by
        the Member if the Member was not a party to the act, suit or proceeding;
        or

       

      (b)           if
        the Member was a party to the act, suit or proceeding by independent legal
        counsel in a written opinion.

       

      SECTION
        10.05  Advance Payment of Expenses.  The expenses of
        each Person who is or was a Manager, Member, Special Member, officer,
        controlling Person, employee, legal representative or agent, or is or was
        serving at the request of the Company as a member, manager, director, officer,
        partner, shareholder, controlling Person, employee, legal representative
        or
        agent of another limited liability company, corporation, partnership, joint
        venture, trust or other enterprise, incurred in defending a civil or criminal
        action, suit or proceeding may be paid by the Company as they are incurred
        and
        in advance of the final disposition of the action, suit or proceeding, upon
        receipt of an undertaking by or on behalf of such Person to repay the amount
        if
        it is ultimately determined by a court of competent jurisdiction that such
        Person is not entitled to be indemnified by the Company.  The
        provisions of this Section 10.05 shall not affect any rights to
        advancement of expenses to which personnel other than the Member or the Managers
        (other than the Independent Managers) may be entitled under any contract
        or
        otherwise by law.

       

      SECTION
        10.06  Other Arrangements Not Excluded.  The
        indemnification and advancement of expenses authorized in or ordered by a
        court
        pursuant to this Article X:

       

      (a)           does
        not exclude any other rights to which a Person seeking indemnification or
        advancement of expenses may be entitled under any agreement, decision of
        the
        Member or otherwise, for either an action of any Person who is or was a Manager,
        Member, Special Member, officer, controlling Person, employee, legal
        representative or agent, or is or was serving at the request of the Company
        as a
        member, manager, director, officer, partner, shareholder, controlling Person,
        employee, legal representative or agent of another limited liability company,
        corporation, partnership, joint venture, trust or other enterprise, in the
        official capacity of such Person or an action in another capacity while holding
        such position, except that indemnification and advancement, unless ordered
        by a
        court pursuant to Section 10.05 above, may not be made to or on behalf of
        such Person if a final adjudication established that its acts or omissions
        involved intentional misconduct, fraud or a knowing violation of the law
        and
        were material to the cause of action; and

       

      (b)           continues
        for a Person who has ceased to be a Member, Manager, Special Member, officer,
        employee, legal representative or agent and inures to the benefit of the
        successors, heirs, executors and administrators of such a Person.

       

      
        
          
          

        

        
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      ARTICLE
        XI

       

      MISCELLANEOUS
        PROVISIONS

       

      SECTION
        11.01  No Bankruptcy Petition; Dissolution.

       

      (a)           To
        the fullest extent permitted by law, the Member, each Special Member and
        each
        Manager, solely in its capacity as a creditor of the Company, hereby covenant
        and agree (or shall be deemed to have hereby covenanted and agreed) that,
        prior
        to the date which is one year and one day after the termination of the Indenture
        and the payment in full of every Series of Rate Stabilization Bonds and any
        other amounts owed under the Indenture, it will not acquiesce, petition or
        otherwise invoke or cause the Company to invoke the process of any court
        or
        Governmental Authority for the purpose of commencing or sustaining an
        involuntary case against the Company 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 Company
        or any
        substantial part of the property of the Company, or ordering the winding
        up or
        liquidation of the affairs of the Company; provided, however, that nothing
        in
        this Section 11.01 shall constitute a waiver of any right to
        indemnification, reimbursement or other payment from the Company pursuant
        to
        this Agreement.  This Section 11.01 is not intended to apply to
        the filing of a voluntary bankruptcy petition on behalf of the Company which
        is
        governed by Sections 1.08 and 7.02 of this Agreement.

       

      (b)           To
        the fullest extent permitted by law, the Member, each Special Member and
        each
        Manager hereby covenants and agrees (or shall be deemed to have hereby
        covenanted and agreed) that, until the termination of the Indenture and the
        payment in full of any Series of the Rate Stabilization Bonds and any other
        amounts owed under the Indenture, the Member, such Special Member and such
        Manager will not consent to, or make application for, or institute or maintain
        any action for, the dissolution of the Company under Section 18-801 or 18-802
        of
        the LLC Act or otherwise.

       

      (c)           In
        the event that the Member, any Special Member or any Manager takes action
        in
        violation of this Section 11.01, the Company agrees that it shall file an
        answer with the court or otherwise properly contest the taking of such action
        and raise the defense that the Member, the Special Member or Manager, as
        the
        case may be, has agreed in writing not to take such action and should be
        estopped and precluded therefrom and such other defenses, if any, as its
        counsel
        advises that it may assert.

       

      (d)           The
        provisions of this Section 11.01 shall survive the termination of this
        Agreement and the resignation, withdrawal or removal of the Member, any Special
        Member or any Manager.  Nothing herein contained shall preclude
        participation by the Member, any Special Member or a Manager in assertion
        or
        defense of its claims in any such proceeding involving the Company.

       

      SECTION
        11.02  Amendments.

       

      (a)           The
        power to alter, amend or repeal this Agreement shall be only on the consent
        of
        the Member, provided, that the Company shall not alter, amend or repeal
        any

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      provision
        of  Sections 1.02(b), 1.05, 1.07, 1.08,
3.01(b), 3.02, 6.06, 6.07, 7.02,
7.05,
        9.01, 9.02, 11.01, 11.02 and 11.07 of this
        Agreement or the definition of an Independent Manager contained herein or
        the
        requirement that at all times the Company have at least two Independent Managers
        without, in each case, the affirmative vote of a majority of the Managers,
        which
        vote must include the affirmative vote of all of the Independent Managers;
        and

       

      (b)           The
        Company’s power to alter or amend the Certificate of Formation shall be vested
        in the Member.  Upon obtaining the approval by the Member of any
        amendment, supplement or restatement as to the Certificate of Formation,
        the
        Member on behalf of the Company shall cause a Certificate of Amendment or
        Amended and Restated Certificate of Formation to be prepared, executed and
        filed
        in accordance with the LLC Act.

       

      SECTION
        11.03  Governing Law.  THIS AGREEMENT SHALL BE
        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.

       

      SECTION
        11.04  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
        11.05  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 remainder of such provision (if
        any)
        or the remaining provisions hereof (unless such construction shall be
        unreasonable), and any such prohibition or unenforceability in any jurisdiction
        shall not invalidate or render unenforceable such provision in any other
        jurisdiction.

       

      SECTION
        11.06  Assigns.  Each and all of the covenants,
        terms, provisions and agreements contained in this Agreement shall be binding
        upon and inure to the benefit of the Member, and its permitted successors
        and
        assigns.

       

      SECTION
        11.07  Enforcement by Independent
        Managers.  Notwithstanding any other provision of this Agreement,
        the Member agrees that this Agreement constitutes a legal, valid and binding
        agreement of the Member, and is enforceable against the Member by the
        Independent Managers in accordance with its terms.  The Independent
        Managers are intended beneficiaries of this Agreement.

       

      SECTION
        11.08  Waiver of Partition; Nature of
        Interest.  Except as otherwise expressly provided in this
        Agreement, to the fullest extent permitted by law, each of the Member and
        the
        Special Members hereby irrevocably waives any right or power that such Person
        might have to cause the Company or any of its assets to be partitioned, to
        cause
        the appointment of a receiver for all or any portion of the assets of the
        Company, to compel any sale of all or any portion of the assets of the Company
        pursuant to any applicable law or to file a complaint or to institute any
        proceeding at law or in equity to cause the dissolution, liquidation, winding
        up
        or termination of the Company.  The Member shall not have any interest
        in any specific assets of

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      the
        Company, and the Member shall not have the status of a creditor with respect
        to
        any distribution pursuant to this Agreement.

       

      SECTION
        11.09  Counterparts.  This Agreement may be executed
        in any number of counterparts, each of which shall be deemed an original
        of this
        Agreement and all of which together shall constitute one and the same
        instrument.

       

      [SIGNATURE
        PAGE
        FOLLOWS]

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF, this Agreement is hereby executed by the undersigned and
        is
        effective as of the date first written above.

       

      
        	 	
                BALTIMORE
                  GAS AND ELECTRIC COMPANY

                 

                 

              
	 	
                By:

              	/s/
                Charles A. Berardesco 
	 	 	
                Name:  Charles
                  A. Berardesco

                Title:    Corporate
                  Secretary

              

      

      

      

       

      
        	
                ACKNOWLEDGED
                  AND AGREED:

              	 
	 	 
	
                Michelle
                  A. Dreyer,

                as
                  Independent Manager

                 

              	 
	/s/
                Michelle A. Dreyer 	 
	
                 

                 

              	 
	
                Suzanne
                  M. Hay,

                as
                  Independent Manager

                 

              	 
	/s/
                Suzanne M. Hay 	 

      

       

       

      
        
          Signature
            Page to Limited Liability Company Agreement

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        A

       

      SCHEDULE
        OF INITIAL CAPITAL CONTRIBUTION OF MEMBER

       

      
        
          	
                   

                  MEMBER’S

                  NAME

                	
                  INITIAL

                  CAPITAL

                  CONTRIBUTION

                	
                  MEMBERSHIP

                  INTEREST

                  PERCENTAGE

                
	
                  Baltimore
                    Gas and Electric Company

                	
                  Expenses
                    Paid by Member

                  on
                    behalf of the Company

                  as
                    of June 22, 2007

                	
                  $2,143,109.18

                	
                  100%

                
	
                  Cash
                    Contribution by Member

                  to
                    Capital Account

                	
                  $1,770,100.00

                
	
                  Total
                    Initial Capital

                  Contribution
                    by Member

                	
                  $3,913,209.18

                

        

      

       

      
        
          
          

        

        
          
            SCHEDULE
              A

            1

          

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
        B

       

      MANAGERS

       

      Kenneth
        W. DeFontes, Jr.

       

      Jeanne
        M.
        Blondia

       

      Mark
        D.
        Case

       

      Michelle
        A. Dreyer

       

      Suzanne
        M. Hay

       

      
        
          
          

        

        
          
            SCHEDULE
              B

            1

          

          
            

          

        

        
          
          

        

         

      

      SCHEDULE
        C

       

      OFFICERS

       

      
        	
                Name

              	
                Office

              
	
                Kenneth
                  W. Defontes, Jr.

              	
                 

                President

              
	
                John
                  R. Collins

              	
                Vice
                  President and Chief Financial Officer

              
	
                Charles
                  A. Berardesco

              	
                Secretary

              
	
                Jeanne
                  M. Blondia

              	
                Treasurer

              

      

      

      
        
          
          

        

        
          
            SCHEDULE
              C

            1

          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
        A

       

      MANAGEMENT
        AGREEMENT

       

      June
        29,
        2007

       

      RSB
        BONDCO LLC

      Suite
        102

      103
        Foulk
        Road

      Wilmington,
        Delaware  19803

       

      Re:    Management
        Agreement — RSB BONDCO LLC

       

      Ladies
        and Gentlemen:

       

      For
        good
        and valuable consideration, each of the undersigned Persons, who have been
        designated as managers of RSB BONDCO LLC, a Delaware limited liability company
        (the “Company”), in accordance with the Amended and Restated Limited
        Liability Company Agreement of the Company, dated as of June 29, 2007 (as
        it may
        be amended, restated, supplemented or otherwise modified from time to time,
        the
“LLC Agreement”), hereby agree as follows:

       

      1.           Each
        of the undersigned accepts such Person’s rights and authority as a Manager under
        the LLC Agreement and agrees to perform and discharge such Person’s duties and
        obligations as a Manager under the LLC Agreement, and further agrees that
        such
        rights, authorities, duties and obligations under the LLC Agreement shall
        continue until such Person’s successor as a Manager is designated or until such
        Person’s resignation or removal as a Manager in accordance with the LLC
        Agreement.  Each of the undersigned agrees and acknowledges that it
        has been designated as a “manager” of the Company within the meaning of the
        Delaware Limited Liability Company Act.

       

      2.           Until
        a year and one day has passed since the date that the last obligation under
        the
        Basic Documents was paid, to the fullest extent permitted by law, each of
        the
        undersigned agrees, solely in its capacity as a creditor of the Company on
        account of any indemnification or other payment owing to the undersigned
        by the
        Company, not to acquiesce, petition or otherwise invoke or cause the Company
        to
        invoke the process of any court or governmental authority for the purpose
        of
        commencing or sustaining an involuntary case against the Company 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 Company or any substantial part of the property of the Company, or
        ordering the winding up or liquidation of the affairs of the
        Company.

       

      3.           THIS
        MANAGEMENT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
        THE
        LAWS OF THE STATE OF DELAWARE, AND ALL RIGHTS AND REMEDIES SHALL BE GOVERNED
        BY
        SUCH LAWS WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

       

      
        
          
          

        

        
          
            EXHIBIT
              A

            1

          

          
            

          

        

        
          
          

        

      

       

      Capitalized
        terms used and not otherwise defined herein have the meanings set forth in
        the
        LLC Agreement.

       

      This
        Management Agreement may be executed in any number of counterparts, each
        of
        which shall be deemed an original of this Management Agreement and all of
        which
        together shall constitute one and the same instrument.

       

      IN
        WITNESS WHEREOF, the undersigned have executed this Management Agreement
        as of
        the day and year first above written.

       

       

      
        	 	 
	 	
                Kenneth
                  W. DeFontes, Jr.

                 

              
	 	 
	 	
                Jeanne
                  M. Blondia

                 

              
	 	 
	 	
                Mark
                  D. Case

                 

              
	 	 
	 	
                Michelle
                  A. Dreyer

                 

              
	 	 
	 	
                Suzanne
                  M. Hay

              

      

    

     

    
      
        
        

      

      
        
          EXHIBIT
            A

          2

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