Document:

tcon-ex41_8.htm

 

Exhibit 4.1

REGISTRATION RIGHTS AGREEMENT

REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of March 14, 2017, by and between TRACON PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), and ASPIRE CAPITAL FUND, LLC, an Illinois limited liability company (together with its permitted assigns, the “Buyer”).  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Common Stock Purchase Agreement by and between the parties hereto, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”).

WHEREAS:

A.Upon the terms and subject to the conditions of the Purchase Agreement, (i) the Company has agreed to issue to the Buyer, and the Buyer has agreed to purchase,  up to Twenty-One Million Dollars ($21,000,000) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), pursuant to Section 1 of the Purchase Agreement (such shares, the “Purchase Shares”), and (ii) the Company has agreed to issue to the Buyer such number of shares of Common Stock as is required pursuant to Section 4(e) of the Purchase Agreement (the “Commitment Shares”); and

B.To induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “1933 Act”), and applicable state securities laws.

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

 

1.DEFINITIONS.

 

As used in this Agreement, the following terms shall have the following meanings:

 

a.“Person” means any person or entity including any corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

b.“Register,” “registered,” and “registration” refer to a registration effected by preparing and filing one or more registration statements of the Company in compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous basis (“Rule 415”), and the declaration or ordering of effectiveness of such registration statement(s) by the U.S. Securities and Exchange Commission (the “SEC”).

 

c.“Registrable Securities” means (i) all of the Commitment Shares and Initial Purchase Shares and (ii) such number of additional Purchase Shares as reasonably determined by the Company, which may from time to time be, issued or issuable to the Buyer upon purchases of the 

 

 

Available Amount under the Purchase Agreement, and any shares of Common Stock issued or issuable with respect to the Purchase Shares, the Commitment Shares or the Purchase Agreement as a result of any stock split, stock dividend, recapitalization, exchange or similar event, without regard to any limitation on purchases under the Purchase Agreement; provided, however, that following the sale or other disposition of shares of Common Stock constituting Registrable Securities pursuant to the Registration Statement or Rule 144 promulgated under the 1933 Act (or successor thereto) or the transfer of shares of Common Stock constituting Registrable Securities without a concurrent assignment of Buyer’s registration rights under this Agreement in accordance with Section 9, such shares shall cease to be Registrable Securities.

 

d.“Registration Statement” means a registration statement of the Company covering only the sale of the Registrable Securities.

 

2.REGISTRATION.

 

a.Mandatory Registration.  The Company shall within Fifteen (15) Business Days from the date hereof file with the SEC the Registration Statement. Except as provided herein, the Buyer and its counsel shall have a reasonable opportunity to review and comment upon such Registration Statement or any amendment to such Registration Statement and any related prospectus prior to its filing with the SEC.  The Buyer shall furnish all information reasonably requested by the Company for inclusion therein.  The Company shall use its reasonable best efforts to have the Registration Statement or any amendment declared effective by the SEC as soon as reasonably practicable.  Subject to Permitted Delays (as defined below) and Section 3(e), the Company shall use reasonable best efforts to keep the Registration Statement effective pursuant to Rule 415 promulgated under the 1933 Act and available for sales of all of the Registrable Securities at all times until the earlier of (i) the date as of which the Buyer may sell all of the Registrable Securities without restriction pursuant to Rule 144 promulgated under the 1933 Act (or successor thereto) or (ii) the date on which the Buyer shall have sold all the Registrable Securities and no Available Amount remains under the Purchase Agreement (the “Registration Period”).  The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.  

 

b.Rule 424 Prospectus.  The Company shall, as required by applicable securities regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated under the 1933 Act, a prospectus and prospectus supplements, if any, to be used in connection with sales of the Registrable Securities under the Registration Statement.  The Buyer and its counsel shall have two (2) Business Days to review and comment upon such prospectus prior to its filing with the SEC.  The Buyer shall use its reasonable best efforts to comment upon such prospectus within two (2) Business Days from the date the Buyer receives the final version of such prospectus. 

 

c.Sufficient Number of Shares Registered.  In the event the number of shares available under the Registration Statement is insufficient to cover the Registrable Securities, the Company shall, to the extent necessary and permissible, amend the Registration Statement or file a new registration statement (a “New Registration Statement”), so as to cover all such Registrable Securities as soon as practicable, but in any event not later than ten (10) Business Days after the necessity therefor arises.  The Company shall use its reasonable best efforts to have such amendment 

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and/or New Registration Statement become effective as soon as reasonably practicable following the filing thereof.    

 

3.RELATED OBLIGATIONS.

 

With respect to the Registration Statement and whenever any Registrable Securities are to be registered pursuant to Sections 2(a) and (c), including on any New Registration Statement, the Company shall use its reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

a.The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to any Registration Statement and the prospectus used in connection with such Registration Statement, as may be necessary to keep the Registration Statement or any New Registration Statement effective at all times during the Registration Period, subject to Permitted Delays and Section 3(e) hereof and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration Statement or any New Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement.  Should the Company file a post-effective amendment to the Registration Statement or a New Registration Statement, the Company will use its reasonable best efforts to have such filing declared effective by the SEC within thirty (30) consecutive Business Days following the date of filing, which such period shall be extended for an additional thirty (30) Business Days if the Company receives a comment letter from the SEC in connection therewith.  If (i) there is material non-public information regarding the Company which the Company’s Board of Directors reasonably determines not to be in the Company’s best interest to disclose and which the Company is not otherwise required to disclose or (ii) there is a significant business opportunity (including, but not limited to, the acquisition or disposition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer or other similar transaction) available to the Company which the Company’s Board of Directors reasonably determines not to be in the Company’s best interest to disclose and which the Company would be required to disclose under a Registration Statement or a New Registration Statement, then the Company may postpone or suspend filing or effectiveness of such Registration Statement or New Registration Statement or use of the prospectus under the Registration Statement or New Registration Statement for a period not to exceed thirty (30) consecutive days, provided that the Company may not postpone or suspend its obligation under this Section 3(a) for more than sixty (60) days in the aggregate during any twelve (12) month period (each, a “Permitted Delay”).

 

b.The Company shall submit to the Buyer for review and comment any disclosure in the Registration Statement, any New Registration Statement and all amendments and supplements thereto (other than prospectus supplements that consist only of a copy of a filed Form 10-K, Form 10‐Q or a Current Report on Form 8-K or any amendment as a result of the Company’s filing of a document that is incorporated by reference into the Registration Statement or New Registration Statement) containing information provided by the Buyer for inclusion in such document and any descriptions or disclosure regarding the Buyer, the Purchase Agreement, including the transaction contemplated thereby, or this Agreement at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form to which Buyer reasonably and timely objects.  Upon request of the Buyer, the 

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Company shall provide to the Buyer all disclosure in the Registration Statement or any New Registration Statement and all amendments and supplements thereto (other than prospectus supplements that consist only of a copy of a filed Form 10-K, Form 10‐Q or Current Report on Form 8-K or any amendment as a result of the Company’s filing of a document that is incorporated by reference into the Registration Statement or New Registration Statement) at least two (2) Business Days prior to their filing with the SEC, and not file any document in a form to which Buyer reasonably and timely objects.  The Buyer shall use its reasonable best efforts to comment upon the Registration Statement or any New Registration Statement and any amendments or supplements thereto within two (2) Business Days from the date the Buyer receives the final version thereof.  The Company shall furnish to the Buyer, without charge, any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to the Registration Statement or any New Registration Statement.

 

c.Upon request of the Buyer, the Company shall furnish to the Buyer, (i) promptly after the same is prepared and filed with the SEC, at least one copy of the Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits, (ii) upon the effectiveness of a Registration Statement, a copy of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as the Buyer may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as the Buyer may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Buyer.

 

d.The Company shall use reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification is available, the Registrable Securities covered by a Registration Statement under such other securities or “blue sky” laws of such jurisdictions in the United States as the Buyer reasonably requests, (ii) subject to Permitted Delays, prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction.  The Company shall promptly notify the Buyer who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

e.Subject to Permitted Delays, as promptly as reasonably practicable after becoming aware of such event or facts, the Company shall notify the Buyer in writing if the Company has determined that the prospectus included in any Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, and as promptly as reasonably practical (taking into account the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of premature disclosure of such event or facts) prepare a prospectus supplement or amendment to such Registration Statement 

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to correct such untrue statement or omission, and, upon the Buyer’s request, deliver a copy of such prospectus supplement or amendment to the Buyer.  In providing this notice to the Buyer, the Company shall not include any other information about the facts underlying the Company’s determination and shall not in any way communicate any material nonpublic information about the Company or the Common Stock to the Buyer, and the Company shall be permitted to remove any such information from a draft prospectus supplement or amendment notwithstanding the Company’s obligation to provide such documents to the Buyer in advance of filing with the Commission.  The Company shall also promptly notify the Buyer in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to the Buyer by facsimile or e-mail on the same day of such effectiveness), (ii) of any request by the SEC for amendments or supplements to any Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.  In no event shall the delivery of a notice under this Section 3(e), or the resulting unavailability of a Registration Statement, without regard to its duration, for disposition of securities by Buyer be considered a breach by the Company of its obligations under this Agreement.  The preceding sentence in this Section 3(e) does not limit whether an event of default has occurred as set forth in Section 9(a) of the Purchase Agreement.

 

f.The Company shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of any Registration Statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest practical time and to notify the Buyer of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

 

g.The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities if the Principal Market (as such term is defined in the Purchase Agreement) is an automated quotation system.  The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

h.The Company shall cooperate with the Buyer to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to any Registration Statement and enable such certificates to be in such denominations or amounts as the Buyer may reasonably request and registered in such names as the Buyer may request.

 

i.The Company shall at all times provide a transfer agent and registrar with respect to its Common Stock.

 

j.If reasonably requested by the Buyer, the Company shall (i) promptly incorporate in a prospectus supplement or post-effective amendment to the Registration Statement such information as the Buyer believes should be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase price being paid therefor and any other terms of the 

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offering of the Registrable Securities; (ii) make all required filings of such prospectus supplement or post-effective amendment promptly after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement (including by means of any document incorporated therein by reference).

 

k.The Company shall use its reasonable best efforts to cause the Registrable Securities covered by any Registration Statement to be registered with or approved by such other governmental agencies or authorities in the United States as may be necessary to consummate the disposition of such Registrable Securities.

 

l.Within one (1) Business Day after any Registration Statement is ordered effective by the SEC, the Company shall deliver to the Transfer Agent for such Registrable Securities (with copies to the Buyer) confirmation that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit A.  Thereafter, if reasonably requested by the Buyer at any time, the Company shall deliver to the Buyer a written confirmation of whether or not the effectiveness of such Registration Statement has lapsed at any time for any reason (including, without limitation, the issuance of a stop order) and whether or not the Registration Statement is currently effective and available to the Buyer for sale of all of the Registrable Securities.  

 

m.The Company agrees to take all other reasonable actions as necessary and reasonably requested by the Buyer to expedite and facilitate disposition by the Buyer of Registrable Securities pursuant to any Registration Statement.

 

4.OBLIGATIONS OF THE BUYER.

 

a.The Buyer has furnished to the Company in Exhibit B hereto such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request. The Company shall notify the Buyer in writing of any other information the Company reasonably requires from the Buyer in connection with any Registration Statement hereunder. The Buyer will as promptly as practicable notify the Company of any material change in the information set forth in Exhibit B, other than changes in its ownership of the Common Stock.

 

b.The Buyer agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any amendments and supplements to any Registration Statement hereunder.

 

c.The Buyer agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the kind described in Section 3(f) or any notice of the kind described in the first sentence of Section 3(e), the Buyer will immediately discontinue disposition of Registrable Securities pursuant to any registration statement(s) covering such Registrable Securities until the Buyer’s receipt (which may be accomplished through electronic delivery) of the copies of the filed supplemented or amended registration statement and/or prospectus contemplated by Section 3(f) or the first sentence of Section 3(e).  In addition, upon receipt of any notice from the Company of the kind described in the first sentence of Section 3(e), the Buyer will immediately discontinue purchases or sales of any securities of the Company unless such purchases or sales are in compliance with applicable 

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U.S. securities laws.  Notwithstanding anything to the contrary, the Company shall cause its Transfer Agent to deliver as promptly as practicable shares of Common Stock without any restrictive legend in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which the Buyer has received a Purchase Notice or VWAP Purchase Notice (both as defined in the Purchase Agreement) prior to the Buyer’s receipt of a notice from the Company of the happening of any event of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Buyer has not yet settled.

 

5.EXPENSES OF REGISTRATION.

 

All reasonable expenses of the Company, other than sales or brokerage commissions and fees and disbursements of counsel for the Buyer, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

6.INDEMNIFICATION.

 

a.To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Buyer, each Person, if any, who controls the Buyer, the members, the directors, officers, partners, employees, agents, representatives of the Buyer and each Person, if any, who controls the Buyer within the meaning of the 1933 Act or the Securities Exchange Act of 1934, as amended (the “1934 Act”) (each, an “Indemnified Person”), against any third party losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys’ fees, amounts paid in settlement (with the prior consent of the Company, such consent not to be unreasonably withheld) or reasonable expenses, (collectively, “Claims”) reasonably incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency or body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in the Registration Statement, any New Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading, or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement or any New Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”).  The Company shall reimburse each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or 

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defending any such Claim.  Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (A) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by the Buyer or such Indemnified Person expressly for use in connection with the preparation of the Registration Statement, any New Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company; (B) with respect to any superseded prospectus, shall not inure to the benefit of any such person from whom the person asserting any such Claim purchased the Registrable Securities that are the subject thereof (or to the benefit of any other Indemnified Person) if the untrue statement or omission of material fact contained in the superseded prospectus was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e), and the Buyer was promptly advised in writing not to use the incorrect prospectus prior to the use giving rise to a violation; (C) shall not be available to the extent such Claim is based on a failure of the Buyer to deliver, or to cause to be delivered, the prospectus made available by the Company, if such prospectus was theretofore made available by the Company pursuant to Section 3(c) or Section 3(e); and (D) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 9.

 

b.In connection with the Registration Statement or any New Registration Statement, the Buyer agrees to indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers who signs the Registration Statement or any New Registration Statement, each Person, if any, who controls the Company within the meaning of the 1933 Act or the 1934 Act (collectively and together with an Indemnified Person, an “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information about the Buyer set forth on Exhibit B attached hereto or updated from time to time in writing by the Buyer and furnished to the Company by the Buyer expressly for  use in the Registration Statement or any New Registration Statement or from the failure of the Buyer to deliver or to cause to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant to Section 3(c) or Section 3(e); and, subject to Section 6(d), the Buyer will reimburse any legal or other expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Buyer, which consent shall not be unreasonably withheld; provided, further, however, that the Buyer shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Buyer as a result of the sale of Registrable Securities pursuant to such registration statement.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Buyer pursuant to Section 9. 

 

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c.Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be, and upon such notice, the indemnifying party shall not be liable to the Indemnified Person or Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Person or Indemnified Party in connection with the defense thereof; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding. The Indemnified Party or Indemnified Person shall cooperate with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised as to the status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent.  No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such claim or litigation.  Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

d.The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.  Any person receiving a payment pursuant to this Section 6 which person is later determined to not be entitled to such payment shall return such payment to the person making it.

 

e.The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

 

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7.CONTRIBUTION.

 

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any party who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

8.REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to making available to the Buyer the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Buyer to sell securities of the Company to the public without registration (“Rule 144”), the Company agrees, at the Company’s sole expense, to:

 

a.use its reasonable best efforts to make and keep public information available, as those terms are understood and defined in Rule 144;

 

b.use its reasonable best efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required to satisfy the current public information requirements of Rule 144; 

 

c.furnish to the Buyer so long as the Buyer owns Registrable Securities, as promptly as practicable at Buyer’s request, (i) if true, a written statement by the Company that it has complied in all material respects with the requirements of Rule 144(c)(1)(i) and (ii), and (ii) such other information, if any, as may be reasonably requested to permit the Buyer to sell such securities pursuant to Rule 144 without registration; and

 

d.take such additional action as is reasonably requested by the Buyer to enable the Buyer to sell the Registrable Securities pursuant to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company’s Transfer Agent as may be reasonably requested from time to time by the Buyer and otherwise provide reasonable cooperation to the Buyer and the Buyer’s broker to effect such sale of securities pursuant to Rule 144.

 

The Company agrees that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Buyer shall, whether or not it is pursuing any remedies at law, be entitled to seek equitable relief in the form of a preliminary or permanent injunctions, without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

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9.
	
ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyer; provided, however, that any transaction, whether by merger, reorganization, restructuring, consolidation, financing or otherwise, whereby the Company remains the surviving entity immediately after such transaction shall not be deemed an assignment.  The Buyer may not assign its rights under this Agreement without the prior written consent of the Company. 

 

10.AMENDMENT OF REGISTRATION RIGHTS.

 

Provisions of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Buyer.

 

11.MISCELLANEOUS.

 

a.Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); (iii) upon receipt, when sent by electronic message (provided the recipient responds to the message and confirmation of both electronic messages are kept on file by the sending party); or (iv) one (1) Business Day after timely deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

TRACON Pharmaceuticals, Inc.

8910 University Center Lane, Suite 700

San Diego, CA 92122

Telephone:          

Facsimile:           

Attention:            Patricia Bitar 

Email:                   

 

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With a copy (which shall not constitute notice) to:

 

Cooley LLP

4401 Eastgate Mall

San Diego, CA 92121

Telephone:        

Facsimile:          

Attention:         Sean M. Clayton, Esq. 

Email:                

 

If to the Buyer:

 

Aspire Capital Fund, LLC

155 North Wacker Drive, Suite 1600

Chicago, IL 60606 

Telephone:     

Facsimile:       

Attention:      Steven G. Martin

Email:             

 

With a copy (which shall not constitute notice) to:

 

Morrison & Foerster LLP

2000 Pennsylvania Avenue, NW, Suite 6000

Washington, DC 20006

Telephone:     

Facsimile:       

Attention:      Martin P. Dunn, Esq.

Email:             

 

or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party at least one (1) Business Day prior to the effectiveness of such change.  Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, and recipient facsimile number, (C) electronically generated by the sender’s electronic mail containing the time, date and recipient email address or (D) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of receipt in accordance with clause (i), (ii), (iii) or (iv) above, respectively.  Any party to this Agreement may give any notice or other communication hereunder using any other means (including messenger service, ordinary mail or electronic mail), but no such notice or other communication shall be deemed to have been duly given unless it actually is received by the party for whom it is intended.

 

b.No failure or delay in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege.

 

12

 

 

c.The corporate laws of the State of Delaware shall govern all issues concerning the relative rights of the Company and its stockholders.  All other questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Chicago for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

d.This Agreement, the Purchase Agreement and the other Transaction Documents constitute the entire understanding among the parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.  This Agreement, the Purchase Agreement and the other Transaction Documents supersede all other prior oral or written agreements between the Buyer, the Company, their affiliates and persons acting on their behalf with respect to the subject matter hereof and thereof.

 

e.Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

 

f.The headings in this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

g.This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile or pdf (or other electronic reproduction of a) signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or pdf (or other electronic reproduction of a) signature.

 

h.Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents as the other party may reasonably request in order to carry out the intent 

13

 

 

and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

i.The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.

 

j.This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

* * * * *

 

 

 

14

 

 

IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be duly executed as of day and year first above written.

 

THE COMPANY:

 

TRACON PHARMACEUTICALS, INC.

 

By: _/s/ Charles P. Theuer_________

Name:  Charles P. Theuer, M.D., Ph.D.

Title:     President and Chief Executive Officer

 

BUYER:

 

ASPIRE CAPITAL FUND, LLC

BY: ASPIRE CAPITAL PARTNERS, LLC

BY:  SGM HOLDINGS CORP.

 

By:_/s/ Steven G. Martin__________

Name: Steven G. Martin

Title: President

 

 

 

 

 

EXHIBIT A

 

FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

 

[Date]

 

American Stock Transfer & Trust Company, LLC

One Embarcadero Center, Suite 515

San Francisco, CA  94111

Attention:  Tiffany Thompson

 

RE:  TRACON PHARMACEUTICALS, INC.

 

Ladies and Gentlemen:

 

We refer to that certain Common Stock Purchase Agreement, dated as of March 14, 2017 (the “Purchase Agreement”), entered into by and between TRACON PHARMACEUTICALS, INC., a Delaware corporation (the “Company”) and ASPIRE CAPITAL FUND, LLC (the “Buyer”) pursuant to which the Company has agreed to issue to the Buyer shares of the Company’s Common Stock, par value $0.001 per share (the “Common Stock”), in an amount up to Twenty-One Million Dollars ($21,000,000), in accordance with the terms of the Purchase Agreement. In connection with the transactions contemplated by the Purchase Agreement, the Company has registered with the U.S. Securities and Exchange Commission (the “SEC”) the sale by the Buyer of the following shares of Common Stock:

 

	
 
	
(1)
	
up to 3,035,789 shares of Common Stock to be issued upon purchase from the Company by the Buyer from time to time (the “Purchase Shares”); and

 

(2)  195,726 shares of Common Stock which have been issued to the Buyer as a commitment fee (the “Commitment Shares”). 

 

In connection with the transactions contemplated by the Purchase Agreement, the Company has filed a registration statement on Form S-1 (File No. 333_________) (the “Registration Statement”) with the SEC relating to the sale by the Buyer of the Purchase Shares and the Commitment Shares.  Accordingly, we advise you that (i) the SEC has entered an order declaring the Registration Statement effective under the Securities Act of 1933 Act (the “1933 Act”) on __________, 201_, (ii) we have no knowledge, after review of the stop order notification website maintained by the SEC, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and (iii) the Purchase Shares and the Commitment Shares are available for sale under the 1933 Act pursuant to the Registration Statement.  Accordingly, and in reliance on certain covenants made by the Buyer regarding the manner of sale of the Shares, certificates representing the Shares may be issued without any restrictive legend. 

 

Very truly yours,

 

	
By: ____________________

	
    [Company Counsel or Officer]

	
    CC:   Aspire Capital Fund, LLC

 

 

EXHIBIT B

 

Information About The Buyer Furnished To The Company By The Buyer

Expressly For Use In Connection With The Registration Statement and Prospectus

 

Aspire Capital Partners LLC (“Aspire Partners”) is the Managing Member of Aspire Capital Fund LLC (“Aspire Fund”).  SGM Holdings Corp (“SGM”) is the Managing Member of Aspire Partners.  Mr. Steven G. Martin (“Mr. Martin”) is the president and sole shareholder of SGM, as well as a principal of Aspire Partners.  Mr. Erik J. Brown (“Mr. Brown”) is the president and sole shareholder of Red Cedar Capital Corp (“Red Cedar”), which is a principal of Aspire Partners.  Mr. Christos Komissopoulos (“Mr. Komissopoulos”) is president and sole shareholder of Chrisko Investors Inc (“Chrisko”), which is a principal of Aspire Partners.  Each of Aspire Partners, SGM, Red Cedar, Chrisko, Mr. Martin, Mr. Brown, and Mr. Komissopoulos may be deemed to be a beneficial owner of common stock held by Aspire Fund. Each of Aspire Partners, SGM, Red Cedar, Chrisko, Mr. Martin, Mr. Brown, and Mr. Komissopoulos disclaims beneficial ownership of the common stock held by Aspire Fund.

 

Plan of Distribution

 

The common stock may be sold or distributed from time to time by the selling stockholder directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of the common stock offered by this prospectus may be effected in one or more of the following methods:

	
 
	
•
	
ordinary brokers’ transactions;

	
 
	
•
	
transactions involving cross or block trades;

	
 
	
•
	
through brokers, dealers, or underwriters who may act solely as agents;

	
 
	
•
	
“at the market” into an existing market for the common stock;

	
 
	
•
	
in other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected through agents;

	
 
	
•
	
in privately negotiated transactions; or

	
 
	
•
	
any combination of the foregoing.

 

In order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers.  In addition, in certain states, the shares may not be sold unless they have been registered or qualified for sale in the state or an exemption from the registration or qualification requirement is available and complied with.

 

The selling stockholder may also sell shares of common stock under Rule 144 promulgated under the Securities Act, if available, rather than under this prospectus. In addition, the selling stockholder may transfer the shares of common stock by other means not described in this prospectus.

 

Brokers, dealers, underwriters, or agents participating in the distribution of the shares as agents may receive compensation in the form of commissions, discounts, or concessions from the selling stockholder and/or purchasers of the common stock for whom the broker-dealers may act as agent.  

 

 

Aspire Capital has informed us that each such broker-dealer will receive commissions from Aspire Capital which will not exceed customary brokerage commissions. 

 

The selling stockholder and its affiliates have agreed not to engage in any direct or indirect short selling or hedging of our common stock during the term of the Purchase Agreement.

 

The selling stockholder is an “underwriter” within the meaning of the Securities Act. 

 

We have advised the selling stockholder that while it is engaged in a distribution of the shares included in this prospectus, it is required to comply with Regulation M promulgated under the Securities Exchange Act of 1934, as amended. With certain exceptions, Regulation M precludes the selling stockholder, any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with the distribution of that security. All of the foregoing may affect the marketability of the shares offered hereby this prospectus. 

 

We may suspend the sale of shares by the selling stockholder pursuant to this prospectus for certain periods of time for certain reasons, including if the prospectus is required to be supplemented or amended to include additional material information. 

 

This offering as it relates to Aspire Capital will terminate on the date that all shares offered by this prospectus have been sold by Aspire Capital.Exhibit

BEFORE
THE PUBLIC UTILITIES COMMISSION OF OHIO

	
			
	In the Matter of the Application of  
The Dayton Power and Light Company for Approval of Its Electric Security Plan

In the Matter of the Application of  
The Dayton Power and Light Company for Approval of Revised Tariffs

In the Matter of the Application of  
The Dayton Power and Light Company for Approval of Certain Accounting Authority Pursuant to Ohio Rev. Code § 4905.13
	:

:

:

:

:

:

	Case No. 16-0395-EL-SSO

Case No. 16-0396-EL-ATA

Case No. 16-0397-EL-AAM

	________________________________________________________________ 
 
AMENDED STIPULATION AND RECOMMENDATION
________________________________________________________________

Ohio Administrative Code Rule 4901-1-30 provides that any two or more parties to a proceeding may enter into a written stipulation covering the issues presented in that proceeding.  This Amended Stipulation and Recommendation ("Stipulation") sets forth the understanding of the parties that have signed below (the "Signatory Parties").  The Signatory Parties recommend that the Public Utilities Commission of Ohio ("Commission") approve and adopt, as part of its Opinion and Order, this Stipulation which will resolve all of the issues in the above-captioned proceeding.
This Stipulation is a product of lengthy, serious, arm's-length bargaining among the Signatory Parties (who are capable, knowledgeable, and represented by counsel) with the participation of the Commission's Staff, which negotiations were undertaken by the Signatory Parties to settle this proceeding.  This Stipulation was negotiated among all parties to the proceedings and no party was excluded from negotiations.  This Stipulation is supported by 

1

adequate data and information; as a package, the Stipulation benefits customers and the public interest; promotes effective competition and the development of a competitive marketplace; represents a just and reasonable resolution of all issues in this proceeding; violates no regulatory principle or practice; and complies with and promotes the policies and requirements of Chapter 4928, Revised Code.  Although this Stipulation is not binding on the Commission, it is entitled to careful consideration by the Commission, where, as here, it is sponsored by Signatory Parties representing a wide range of interests.
WHEREAS, in order to comply with Ohio Rev. Code § 4928.143, DP&L filed an Application and Supporting Testimony, Schedules and Workpapers in this proceeding;
WHEREAS, the Signatory Parties engaged in extensive discovery in this proceeding, with The Dayton Power and Light Company ("DP&L" or "the Company") responding to over 1,200 discovery requests; three DP&L witnesses were deposed; DP&L deposed 22 intervenor witnesses; 
WHEREAS, the terms of this Stipulation are reasonable to ensure that DP&L can maintain its financial integrity and modernize its distribution infrastructure so that customers receive stable and reliable service; and 
WHEREAS, the terms and conditions of this Stipulation satisfy the policies of the State of Ohio as set forth in Section 4928.02, Revised Code.
Now, therefore, for the purposes of resolving all issues raised in this proceeding, the Signatory Parties stipulate, agree and recommend as follows:

2

		
	I.
	Term

1.    To assist in maintaining rate certainty, improving the financial health of the DP&L so as to allow it the opportunity to achieve and maintain an investment grade credit rating, and continue to provide safe and stable service in Ohio, the Signatory Parties agree that the ESP term shall begin upon Commission approval of this Stipulation, and shall run for a period of six (6) years.
		
	II.
	Distribution Service and Grid Modernization

To allow DP&L to provide stable and certain distribution service and to modernize its distribution grid, the Signatory Parties agree to the following terms.
1.    AES/DPL Contributions:  DP&L, on behalf of itself and DPL Inc., agrees to the following:
		
	a.
	During the ESP term, DPL Inc. will not make any dividend payments to AES Corporation or to AES Ohio Generation, LLC.

		
	b.
	During the DMR term, DPL Inc. agrees that it will not make any contractually-required tax sharing payments to AES Corporation ("Tax Sharing Liabilities").  Pursuant to the preceding sentence, AES Corporation agrees to forgo collection of the Tax Sharing Liabilities payable throughout the DMR term, and DPL Inc. will not continue to accrue the Tax Sharing Liabilities in its financial statements. AES and DPL Inc. will convert the entirety of the current and non-current DPL Inc. 

3

Tax Sharing Liabilities to an additional equity investment in DPL Inc. on or before the effective date of the ESP. Thereafter, during the term of the DMR, AES and DPL Inc. will, each month, convert the additional DPL Inc. Tax Sharing Liabilities for that month to an additional equity investment in DPL Inc.  AES, DP&L and DPL Inc. agree that the conversions will not be reversed at any future date. 
		
	c.
	Assuming FERC approval, DP&L agrees to transfer its generation assets and non-debt liabilities to AES Ohio Generation, LLC, an affiliated subsidiary of DPL Inc., within 180 days following final Commission approval of this Stipulation, provided that the Commission approves this Stipulation without material modifications.

		
	d.
	DP&L (or the affiliate to whom the generation assets are transferred) will commit to commence a sale process to sell to a third party its ownership in Conesville, Miami Fort, and Zimmer Stations. 

		
	e.
	AES Corporation will use all proceeds from any sale of the coal generation assets to make discretionary debt repayments at DP&L and DPL Inc.  

2.    Distribution Modernization Rider/Distribution Investment Rider
		
	a.
	DP&L will implement a non-bypassable Distribution Modernization Rider ("DMR") for years 1 through 3 of the term of the ESP.  The DMR shall be designed to collect $105 million in revenue per year.1  With Commission 

4

approval, DP&L may have the option of extending the duration of Rider DMR for an additional two years.  DP&L may apply for such extension by filing an application in a separate docket by June 1, 2019.  The Commission will determine the amount of the Rider DMR for the two-year extension period based upon the evidence presented in the separate docket, including, but not limited to evidence of DPL Inc.'s and DP&L's financial needs and evidence of the measures undertaken by DPL Inc. and DP&L, to address their financial issues.  Any Signatory Parties or Non‐Opposing Parties2 to this Stipulation may advocate for or oppose the request for a DMR extension in the separate docket.
		
	b.
	Cash flow from the DMR will be used to (a) pay interest obligations on existing debt at DPL Inc. and DP&L; (b) make discretionary debt prepayments at DPL Inc. and DP&L; and (c) position DP&L to make capital expenditures to modernize and/or maintain DP&L's transmission and distribution infrastructure.

		
	c.
	The cost allocation of the DMR to tariff classes will balance the bill impact to customers, fairness, and cost-causation principles.  This allocation shall be as follows: 34% allocated based on 5 Coincident Peaks, 33% allocated based on distribution revenue, and 33% based on historic allocation of the currently charged non-bypassable rider.  DMR cost allocation and rate design are shown in Exhibit A. DMR will include an 

5

annual true-up mechanism, without carrying charges. Rate design within the classes is summarized as:
		
	i.
	Residential, secondary and lighting classes will be $/kWh rates by year three.  DP&L will phase in the proposed rate design for the Residential Heating class and Secondary class over a two year period.  DMR rates are provided in Exhibit A.

		
	ii.
	All other classes will include both energy and demand rates. 

		
	d.
	A DP&L Distribution Investment Rider ("DIR") will be established, set initially at zero, to recover incremental distribution capital investments recorded in Account 101 Plant In Service related to FERC Plant Accounts 360-374.  Recovery of revenue requirements will be based upon and commence with the resolution of DP&L's distribution rate case (Case No. 15-1830-EL-AIR) or a future distribution rate case.  All other matters related to the DIR, including, but not limited to cost allocation, term, rate design, and annual revenue caps, shall be addressed in the pending (Case No. 15-1830-EL-AIR) or a future distribution rate case. 

		
	e.
	Rider DMR revenues shall be excluded from Significantly Excessive Earnings Test ("SEET") calculations.  DP&L's SEET threshold will remain at 12%.

6

3.    Smart Grid Rider
		
	a.
	Distribution Infrastructure Modernization Plan:  DP&L will file a comprehensive Distribution Infrastructure Modernization Plan ("Modernization Plan") within three months of completion of the Commission's Power Forward initiative or February 1, 2018, whichever is earlier unless an extension is recommended by Staff or granted by the Commission.  

		
	b.
	The Modernization Plan should assess and analyze the cost-effectiveness and provide a cost/benefit analysis of all of its components and provide anticipated timelines for deployment.  The Modernization Plan will identify operational cost savings from the program.  The Modernization Plan will include a proposal for specific technology components, including but not limited to: advanced metering infrastructure (AMI), including smart meters; meter data management systems capable of providing bill-quality data, i.e., data that has gone through the validation, estimation, and editing "VEE" process, to CRES providers and authorized third parties; system-wide distribution automation; and volt-VAR optimization.  

		
	c.
	The costs of DP&L's grid modernization efforts as outlined in the to-be-filed Modernization Plan, once approved by the Commission, will be recovered through a new Smart Grid Rider ("SGR").  The costs of the grid modernization program will be subject to an annual prudence review.  The 

7

SGR shall be set initially at zero.  All other matters relating to the SGR shall be addressed in a future proceeding seeking approval of the Modernization Plan.  Any Signatory Parties or Non-Opposing Parties to this Stipulation may advocate for or oppose all or some components of the Modernization Plan.
		
	III.
	Standard Offer Rate

1.    As originally proposed in DP&L's ESP, DP&L will implement a bypassable, Standard Offer Rate that will be based on competitive bid auctions, as accepted by the Commission in Case No. 08-1094-EL-SSO and charged on a $/kWh basis for all tariff classes.  However, the Standard Offer Rate will be modified from DP&L's original proposal as follows:
		
	a.
	Consistent with the current process, DP&L will procure RECs to meet the requirements in ORC 4928.64 and recover those reasonable and prudent costs on a bypassable basis.  Although these amounts will be separately identified in supporting schedules, these amounts will be included as a component of the Standard Offer Rate instead of a separate Alternative Energy Rider ("AER") Tariff. This maintains the simplicity of one Tariff for bypassable charges that allows for an easy price-to-compare.  Additionally, DP&L agrees to not implement the cash working component of the Standard Offer Rate as originally proposed in the Application.  

		
	b.
	For the proposed Standard Offer Rate, DP&L will phase in the proposed rate design for the Residential Heating Class and Secondary Class over a 

8

two year period such that DP&L's proposed rate design will be in place beginning year 3 of the ESP.  
		
	c.
	The Unbilled Fuel as proposed in the Application will be recovered and tracked separately on a bypassable basis over a three-year period with no carrying charges.

		
	d.
	In DP&L’s filed distribution rate case (Case No. 15-1830-EL-AIR), there will be an evaluation of costs contained in distribution rates that may be necessary to provide standard service offer service.  Any reallocation of costs to the standard service offer as a result of this evaluation will be revenue neutral to DP&L.

		
	IV.
	Economic Development Rider

1.    To further State policy and enhance the State's effectiveness in the global economy, DP&L will offer several different economic development incentives to large customers that are Signatory or Non-Opposing Parties.  Customers may receive only one of the incentives below, and incentives may not be combined.  The provisions in this Section shall expire when the DMR expires, or when an equivalent economic stability charge intended to provide financial stability to DP&L or DPL Inc., whether proposed in this case or another proceeding, expires.3  DP&L will implement the following economic development incentives:
		
	a.
	The following economic development incentives will be equal to $(0.0040) per kWh for all kWh:

9

		
	i.
	Economic Improvement Incentive available to single site customers with MW demand of 10 MW or greater with an average load factor of at least 80%.  The Signatory or Non-Opposing Parties that qualify for the incentive are:  one member of Ohio Energy Group ("OEG") (both accounts), one member of Industrial Energy Users-Ohio ("IEU") and Miami Valley Hospital (the Ohio Hospital Association).

		
	ii.
	Automaker Incentive available to single site customers with MW demand of 4 MW or greater.  The Signatory or Non-Opposing Parties that qualify for the incentive are:  One member of OEG, Honda of America Mfg., Inc. ("Honda"), and one other member of OMAEG.

		
	iii.
	Ohio Business Incentive available to businesses headquartered in the State of Ohio; this incentive will aggregate accounts within the DP&L service area and must achieve a total average demand of 2 MW or greater.  The Signatory or Non-Opposing Parties that qualify for the incentive are:  Honda, two other members of OMAEG, The Kroger Co. ("Kroger"), and one member of IEU.

2.    The costs of these programs will be recovered through DP&L's non-bypassable Economic Development Rider ("EDR"), consistent with how those costs are allocated and recovered through that rider currently.  

10

		
	V.
	Economic Development Grant Fund

1.    DP&L agrees to make the following economic development payments, which payments shall not be recoverable from customers.  The provisions in this Section shall expire when the DMR expires, or when an equivalent economic stability charge intended to provide financial stability to DP&L or DPL Inc., whether proposed in this case or another proceeding, expires4.  
		
	a.
	Economic Development grant fund of $1,000,000 annually for use by customers within DP&L's service territory for energy programs and infrastructure.

		
	b.
	Within 60 days of Commission approval of the Stipulation, DP&L shall provide the first of no more than five economic development grants that will total $2 million dollars over the term of the ESP.  DP&L will consult with the Adams County officials to identify the most appropriate third-party to administer the funds. The funds will be used specifically for (a) economic development activities, (b) workforce development, and (c) direct financial education assistance for job training at state or federally licensed educational institutions for individual DP&L employees who work at generation facilities in Adams and Brown Counties, Ohio and surrounding communities. At least half of the funds provided by DP&L shall be used for job training.  DP&L further agrees to collaborate with 

11

local and statewide economic development organizations to identify and promote potential economic development in Adams and Brown Counties.  
		
	c.
	To partially offset the costs of this Stipulation and rate design modifications, within ten days of an Order by the Commission authorizing DP&L to file tariff sheets to collect the Distribution Modernization Rider,  DP&L will pay $145,000 to IEU-Ohio for the benefit of its members, $18,000 to OMAEG for the benefit of its members and $160,000 to Kroger, according to instructions for payment provided by the parties.  Thereafter, DP&L will pay the same amounts to IEU-Ohio, OMAEG and Kroger, according to instructions for payment provided by the parties, on the annual anniversary of the date on which the first payment described in the prior sentence was made.  If the Commission, another administrative agency, or a court modifies the proposed amount to be collected or credited under the Distribution Modernization Rider or the EDR credits, the parties agree that such modification is a material modification and agree to negotiate in good faith to amend this paragraph so that the parties receive the expected value of the agreement.  In no event shall IEU-Ohio, OMAEG, Kroger or any of their benefiting members be obligated to return all or any portion of any payment made by DP&L5. 

		
	VI.
	Other Riders and Tariffs

1.    DP&L has proposed riders in both its pending Distribution Rate case and this ESP case.  Those requests will be treated as follows:

12

		
	a.
	Reconciliation Rider:  

		
	i.
	DP&L shall withdraw its request to recover in this case OVEC costs that it has deferred pursuant to the Commission's Order in Case No. 13-2420-EL-UNC.  DP&L shall file an application in a separate proceeding to seek recovery of those costs.  Signatory and Non-Opposing Parties shall not contest DP&L's request to recover the OVEC deferral in that separate proceeding provided DP&L uses good faith efforts to divest from the OVEC units.6 

		
	ii.
	After an Order in this ESP case, DP&L shall defer/recover or credit, the net of proceeds from selling OVEC energy and capacity into the PJM marketplace and OVEC costs.  This Rider will be charged on a bypassable basis, allocated to tariff classes based on an allocation method of 50% demand and 50% energy with demand being allocated on non-shopping customers 5 coincidental peak (5 CP) basis and charged on kWh basis.  The Reconciliation Rider will be trued up and the rate allocation will be updated annually.

		
	iii.
	DP&L agrees to continue pursuing options to discharge its OVEC obligations.  DP&L shall file an annual report no later than February 28 of each year during the Term of the ESP, outlining its 

13

efforts made in the prior 12 months to relieve itself of its OVEC obligations.
		
	b.
	Decoupling Rider:  DP&L will implement the Decoupling Rider to include the lost revenues currently recovered through the Energy Efficiency Rider as agreed to in the Stipulation filed in Case No. 16-649-EL-POR on December 13, 2016.  All other matters relating to the Decoupling Rider, including but not limited to cost allocation, term and rate design, shall be addressed in the pending distribution case, Case No. 15-1830-EL-RDR or in DP&L's next Energy Efficiency Portfolio case.  This Rider will be charged on a non-bypassable basis.  

		
	c.
	Transmission Cost Recovery Rider – Non-Bypassable (TCRR-N):  DP&L's TCRR-N will be implemented as it is currently.  In addition, DP&L agrees to deploy a small-scale pilot program providing an alternative means for customers to obtain and pay for services otherwise provided by or through the TCRR-N.  More specifically, the purpose of this pilot program is to explore whether certain customers could benefit from opting out of DP&L's TCRR-N and obtaining, directly or indirectly through a certified CRES provider registered in DP&L's territory, all transmission and ancillary services through the Open Access Transmission Tariff and other PJM governing documents ("OATT") approved by the Federal Energy Regulatory Commission ("FERC"), in effect from time to time, as modified by FERC, and applicable to the zone in which the end 

14

user is located or whether the administrative burden to DP&L, and the cost and risk to the customer, would render this option impractical. This pilot program will be for the term of the ESP and be limited to the first 50 accounts that do not take DP&L Standard Service Offer generation, are served at the primary voltage level and above, and notify DP&L in writing within 30 days of the approval of this Stipulation ("Pilot Participant").7  Subject to and taking into consideration any existing contract with a CRES provider, the Pilot Participant shall work with its CRES provider to complete any necessary steps for the Pilot Participant to participate in the pilot program, including establishing a separate PJM subaccount, registering a DUNS+4 with DP&L and completing related EDI testing.  Contingent on these necessary steps, the effective date for the Pilot Participant’s opt-out of the TCRR-N, or any successor to the TCRR-N, shall be the next available meter read date following acceptance of the CRES provider’s enrollment request via EDI after the date which the CRES provider verifies all of the necessary steps have been taken to provide the Pilot Participant with all services otherwise provided by or through the TCRR-N, including Network Integration Transmission Service ("NITS").  The effective date shall be no earlier than the effective date of an order approving this Stipulation.  Nothing in this provision prevents the Pilot Participant from delaying the effective date of the opt-out of the TCRR-N.  Any increase or decrease in the load and usage characteristics of any Pilot Participant, opening of a replacement account or account 

15

transfer shall not affect the right to continue to be eligible in the pilot program.  Any account or successor account voluntarily returning to TCRR-N or any TCRR-N successor, after 60 days advance notice, shall not, thereafter, make such OATT election and eligibility for such election with regard to such account or successor account shall be deemed terminated.  Subject to the maximum of 50 accounts and notwithstanding the requirement to provide notice to DP&L within 30 days of the approval of this Stipulation regarding a customer's desire to participate in the pilot program, new accounts of new customers and/or new and expanded accounts of an existing Pilot Participant shall also have the right to make such election regardless of whether the accounts are known or in existence by the election deadline specified herein.  Any such election would be effective subject to the necessary timing steps outlined above.  Such a Pilot Participant that has opted out shall not receive the benefits or be subject to the costs of TCRR-N or any successor to TCRR-N provided that they shall not be deprived of any costs or refunds arising from decisions issued by FERC or the Commission where such costs or refunds would flow through TCRR-N and are associated with the period during which they obtained service by or through TCRR-N and such costs or refunds are not otherwise available through the OATT.  Such refunds (if any) shall be deducted from refund amounts included in TCRR-N.  Such a Pilot Participant shall be eligible, at their election, as long as they continuously remain a Pilot Participant and continue to obtain such services through the 

16

applicable OATT until such time as they may elect to discontinue such election and revert to TCRR-N or a TCRR-N successor.
		
	d.
	Regulatory Compliance Rider ("RCR"):  DP&L will implement a nonbypassable RCR to recover the following five separate deferral balances:  (1) Consumer Education Campaign costs; (2) Retail Settlement System costs; (3) Green Pricing Program costs; (4) Generation Separation costs; and (5) Bill Format Redesign costs.  DP&L will recover carrying costs at DP&L's cost of debt on the Bill Format Redesign starting at the time those costs were incurred.  Additionally, carrying costs at DP&L's cost of debt will be included at the onset of recovery of the RCR for the remaining RCR items except for Generation Separation costs.  The Rider will be trued up annually.  The cost allocation of the RCR to tariff classes will be based on base distribution revenues.  The RCR rate design will be a monthly charge per customer account.  The total dollars recovered through the RCR shall not exceed a total of $20 million over the ESP term including the remaining costs associated with the separation of the generation assets which is capped at $10 million as set forth in Case No. 13-2420-EL-UNC.  DP&L may also recover costs associated with supplier consolidated billing provisions set forth in Section IX.1, through the RCR, provided that the amount recovered through the RCR does not exceed the aforementioned cap.

		
	e.
	Storm Cost Recovery Rider:  

17

		
	i.
	The Storm Cost Recovery Rider ("SCRR") will remain in place as a placeholder tariff.  DP&L will file a future application if it seeks any recovery of costs from major storms.  This non‐bypassable rider will include Operating and Maintenance ("O&M") expenses incurred for all storms that are determined to be "Major Events," which is defined in O.A.C. 4901:1-10-01 as incidents that cause an electric utility’s "System Average Interruption Duration Index" ("SAIDI") to exceed the threshold outlined in section 4.5 of standard 1366-2003 as adopted in the "IEEE Guide for Electric Power Distribution Reliability Indices."  No level of expenses for major storms will be in base rates, meaning that there will be no baseline for which an amount over would be considered.  Therefore, all prudently-incurred expenses that are incremental to base rates would be considered for recovery.  This would include, among other things, the amounts over the first forty hours of labor in a given week as well as overtime paid for union and management employees.  If any mutual assistance revenue is received for storm repairs done in other markets, the straight-time labor portion of this would be deducted from the Company’s storm rider recovery request to avoid potential double-recovery.  Any capital assets would be addressed through the Company’s Distribution Investment Rider once populated as proposed in the pending distribution rate case or the next base rate case.

18

		
	ii.
	Carrying charges at the last approved cost of debt would be accrued from the point of deferral until recovery begins.  Recovery would generally be over one year; however, if the deferred amount is large, the Company may request a longer recovery period to lessen the impact on rates.  The Company will file yearly its SCRR by April 1 of each year and Staff will complete its audit with the Commission’s approval for rates to be effective around August 1 of each year.  The cost allocation of the SCRR to tariff classes will be based on base distribution revenues and will be a monthly charge per customer account.

		
	iii.
	If the pending distribution rate case (Case No. 15-1830-EL-AIR) is not approved, then any future recovery will be offset by the three-year average of major storm repair expenses (less any outlier storms) until a future case decides an amount, if any, to be considered in base rates. 

		
	f.
	Uncollectible Rider:  As originally proposed in DP&L's distribution rate case (Case No. 15-1830-EL-AIR), DP&L will implement an Uncollectible Rider to recover the uncollectible expense through a non-bypassable, annually filed true-up rider with the exception that DP&L will recover uncollectible expense associated with bypassable standard service offer rates through a bypassable component of the Uncollectible Rider.  This Rider will recover uncollectible expense that has historically been 

19

included in individual rate components and will track and recover actual costs.  Implementation of this Rider also represents the removal of uncollectible expense from other individual rate components except for the historical uncollected uncollectible PIPP amounts up to the effective date of the rider.  DP&L will address any uncollectible expense included in base distribution rates in the annual true-up filing of this rider, which will include an adjustment to revenue until new base distribution rates are in place.  In addition, any amounts written off as uncollectible that are ultimately recovered will be credited back to the rider.  Carrying charges (at the last approved cost of debt) will be included within the calculation of the over- or under-collection in the annual true-up mechanism. 
		
	VII.
	Cogeneration

1.    Within 30 days of a Commission ruling on this Stipulation, DP&L will file an application for tariff approval to amend its cogeneration tariff in accordance with the most recent revisions to 4901:1-10-34 (Compliance with PURPA) of the Ohio Administrative Code.
		
	VIII.
	Miscellaneous

1.     Within ten days of a final appealable Order by the Commission approving this Stipulation without material modification, all Signatory and Non‐Opposing Parties will take all steps necessary to withdraw any notice or notices of appeal they have filed in Supreme Court of Ohio Case Nos. 2017-204, 2017-205, 2017-241.
2.    DP&L withdraws its request for a Clean Energy Rider.

20

		
	IX.
	Competitive Retail Market Enhancements

1.    No later than sixty (60) days after a Commission order approving this Stipulation with or without modifications, Staff will request that the Commission conduct a rule review to establish parameters to all for non-commodity billing in all electric distribution utility service territories.  DP&L agrees to provide for a non-commodity billing on a customer’s utility bills after the Commission has evaluated and approved billing requirements for non-commodity billing in a rule review process or another proceeding.  DP&L will be permitted to seek cost recovery associated with providing non-commodity billing in part from CRES providers utilizing non-commodity billing and other third parties and ratepayers equally in another proceeding, with any application for cost recovery to be submitted on an expedited basis to ensure timely implementation of non-commodity billing.  Notwithstanding any provision to the contrary in this Section IX.1, DP&L shall submit an application to the Commission to establish non-commodity billing and parameters and to establish any terms for cost recovery by DP&L no later than eighteen (18) months after the date a Commission order issues approving this Stipulation with or without modification.  Any Signatory Parties or Non‐Opposing Parties to this Stipulation may challenge the prudency of those costs..
2.    DP&L agrees to work with Staff, RESA, and IGS to determine the parameters of a two-year pilot supplier consolidated billing program for any CRES provider that is qualified and interested. The purpose of the pilot will be to provide the industry with data and information on the practicality of a supplier consolidated billing implementation in the Ohio electric choice market. 

21

		
	a.
	The participating CRES providers will agree to comply with all bill requirement administrative code rules and work with Staff and DP&L on consumer safeguards, including Ohio Administrative Code Chapter 4901:1-21 (without waiver unless recommended by Staff).

		
	b.
	Participating CRES providers agree to provide Staff and DP&L any and all information related to the pilot.

		
	c.
	DP&L and participating CRES providers will meet to determine a methodology to govern implementation, including, but not limited to, the method of transfer and payment to the DP&L of customer charges, as well as credit and collection procedures and purchase of receivables at 100%, without recourse.  Staff will be invited to participate in the meetings.

		
	d.
	The methodology to govern the pilot shall be established no later than twelve months from a final Commission order approving a Stipulation in these proceedings.  

		
	e.
	Due to the nature of a pilot program, the supplier consolidated billing pilot will be limited to 2,500 customers per CRES provider for the first six months of active implementation: 

		
	i.
	Based upon biannual review and approval by Staff, DP&L, and participating CRES providers, the customer participation cap shall be incrementally increased by 2,500 customers each six months not to exceed 10,000 customers for any individual CRES provider then 

22

participating in the program over the two-year term of the pilot program. Unless otherwise approved by Staff and DP&L, the total number of customers participating in the pilot program shall not exceed 60,000 customers.  At any time, if it is determined that a CRES provider is adequately performing under the pilot program, Staff and DP&L may increase the amount of customers that the CRES provider may serve under the pilot program, if the 60,000 cap has not been met.
		
	ii.
	Existing customers may remain on the supplier consolidated billing program upon completion of the two-year term of the pilot until otherwise ordered by the Commission. 

		
	iii.
	RESA and/or participating CRES providers retain the right to petition the Commission to expand the pilot caps or terms pending Commission consideration of future consolidated billing orders. 

		
	f.
	Costs related to DP&L's implementation of the pilot supplier consolidated billing program will be shared 50 percent by participating CRES providers, and DP&L will develop and provide all interested CRES providers with an estimate of the total implementation costs, with the exception that DP&L will provide a credit of $150,000.00 toward the CRES provider portion of these costs.  That credit shall be funded by DP&L through shareholder dollars and be implemented through a one-

23

time payment to RESA which will then allocate that payment at its discretion.  DP&L shall submit such payment to RESA within thirty (30) days after DP&L provides an estimate of the total implementation costs to interested CRES providers.  CRES providers that enter the program after its implementation must agree to reimburse other participating CRES providers on a pro-rata basis to ensure a fair allocation of the implementation costs to be shared by participating CRES providers.  DP&L's 50 percent share will be recovered in  the Regulatory Compliance Rider (RCR).  Any requests for cost reimbursement by DP&L to participating CRES providers shall include documentation supporting the request for cost reimbursement.  Staff may study the costs needed to implement the pilot and include an analysis of the type of costs needed to expand the program and how that should be allocated among the participating CRES providers.  Notwithstanding DP&L’s ability to recover its 50 percent share of the implementation costs, DP&L shall file in a separate proceeding an application for Commission approval of recovery for any portion of DP&L’s 50% share of the implementation costs that exceed $1,500,000.00.  Any Signatory Parties or Non‐Opposing Parties to this Stipulation may challenge the prudency of those costs.
		
	g.
	During the pilot development and methodology implementation phase, DP&L will work with participating CRES providers and Staff to determine the appropriate implementation timeline in which participating CRES 

24

providers may begin billing under the pilot.  In addition, metrics will be determined in order to study the results of the pilot program.  
		
	h.
	Participating CRES providers shall not prohibit a customer from returning to DP&L for consolidated billing. 

		
	i.
	Participating CRES providers shall not charge a late payment fee greater than DP&L's tariffed late payment fee. 

		
	j.
	By the conclusion of the two-year pilot program, Staff may file a report on the program that may include recommendations on the program, which may include expansion or retirement. 

		
	k.
	Any participating CRES provider's competitively sensitive information acquired by DP&L and Staff under the pilot supplier consolidated billing program shall be afforded the appropriate confidential treatment.

3.    DP&L agrees to the following Tariff changes:
		
	i.
	Sheet G8, page 6 ¶2.1 first paragraph, retain the existing 30-calendar day time for approving a supplier's registration:  "The Company shall approve or disapprove the supplier's registration within thirty (30) calendar days of receipt of complete registration information from the supplier.  The thirty (30) day time period may be extended for up to thirty (30) days for good cause shown, or 

25

until such other time as is mutually agreed to by the supplier and the Company."
		
	ii.
	Sheet G8, page 21 ¶9.2, existing language should be modified to recognize that CRES Providers may be required to disclose customer-specific information by the Public Utilities Commission of Ohio or a court:  "* * * The AGS shall keep all Customer-specific information supplied by the Company confidential unless the AGS has the Customer's authorization to do otherwise or unless permitted to be disclosed per Ohio Administrative Code Rule 4901:1-21-10."

		
	iii.
	Sheet G8, page 25 ¶12.1(c), modify existing language to not require CRES Providers to pay amounts in bona fide dispute:  "In the event of a dispute as to the amount of any bill, the AGS will notify the Company of the amount in dispute and the AGS will pay to the Company the total bill including the disputed amount not in bona fide dispute."

		
	iv.
	Sheet G8, page 26 ¶12.2, modify existing language to recognize that not paying amounts in bona fide dispute will cause the AGS to be deemed delinquent:  "In the event the AGS fails to make payment to the Company of all amounts not in bona fide dispute on or before the due date as described above, and such failure of 

26

payment is not corrected within two (2) calendar days after the Company notifies the AGS to cure such failure, * * *."
		
	X.
	Individual Signatory Parties

1.    The provisions in this Section shall expire when the DMR expires, or when an equivalent economic stability charge intended to provide financial stability to DP&L or DPL Inc., whether proposed in this case or another future proceeding, expires.8  
2.    City of Dayton
		
	a.
	On or before January 1, 2018, DP&L will explore a joint partnership with the City of Dayton and the University of Dayton's Hanley Sustainability Institute for a program supporting mutual goals for all three of the organizations.

		
	b.
	DP&L will provide $50,000 annually (no more than five payments total) for residential energy education and reduction programs in the City of Dayton.  During the first year, this $50,000 annual spending shall be funded by shareholders. This $50,000 in annual spending thereafter will be proposed for recovery through subsequent Energy Efficiency Portfolio filings.  In the event that the Commission determines that these program costs do not qualify for recovery in the Energy Efficiency Rider, or if the Energy Efficiency Rider no longer exists, the $50,000 in annual funding will be funded by shareholders.

27

		
	c.
	DP&L will participate in the Property Assessed Clean Energy ("PACE") program in partnership with the Montgomery County Port Authority, for qualifying projects in the City of Dayton.  DP&L will contribute $100,000 annually (no more than five payments total) to a fund to be used to pay up to 50% of a property owner's escrowed reserve requirement.  DP&L will also contribute $50,000 annually (no more than five payments total) to a revolving loan fund to support energy upgrades for small and micro businesses within the City that are not eligible for PACE funding.  During the first year, this $150,000 in annual spending shall be funded by shareholders.  This $150,000 in annual spending will thereafter be proposed for recovery through subsequent Energy Efficiency Portfolio filings.  In the event the Commission determines that these program costs do not qualify for recovery in the Energy Efficiency Rider, or if the Energy Efficiency Rider no longer exists, the $150,000 in annual funding will be funded by shareholders.  DP&L will provide funding for those programs for 2017 within 30 days of the Commission's approval or modification of the ESP.  DP&L will provide the funding for each subsequent year of the ESP by no later than January 15th of each calendar year.

		
	d.
	DP&L will provide and install all necessary equipment on the DP&L side of the meter to support system safety and reliable service at the Dayton International Airport.  Among other things, DP&L will install three-phase 

28

reclosers and load break centers, which will allow the customer to transfer between its circuits and supply and execute all agreements to allow for the instantaneous transfer of power, including any and all interconnect agreements to support system safety and reliable service at the Dayton International Airport.  In addition to making the aforementioned improvements on the DP&L side of the meter, DP&L further agrees to provide all necessary improvements to customer equipment ("customer-side improvements") to allow the customer to transfer between its circuits.  The cost to DP&L of making those improvements shall not exceed $50,000.  All costs in excess of $50,000 to make customer-side improvements shall be the responsibility of the Dayton International Airport.
		
	e.
	All City of Dayton accounts existing at the time of execution of this Stipulation will be exempt from paying any redundant service charges, including the Redundant Service Rider or equivalent rider, which seek to recover the costs of providing standby or backup service.  

		
	f.
	AES agrees to maintain DP&L's operating headquarters in the City of Dayton, Ohio.  DP&L agrees to discuss with the City of Dayton any plans to move DP&L’s operating headquarters from MacGregor Park to an alternate location within the City of Dayton, at least ninety (90) days before any move is to occur.  If DP&L's operating headquarters are moved out of the MacGregor Park facility to an alternate location within the City 

29

of Dayton, then the City of Dayton shall have an option to purchase the approximately one hundred twenty five (125) acres and improvements comprising DPL's MacGregor Park facility, under the following terms and conditions:
		
	i.
	If DP&L receives a bona fide offer to purchase the MacGregor Park property, and such offer contains a written commitment that the use for the MacGregor Park property by the bona fide offeror falls within the definition of a Business Park as codified in the City of Dayton Zoning Code, or should the City of Dayton otherwise acknowledge in writing that DP&L has a planned use for the MacGregor Park property that satisfies the City of Dayton's reasonable expectations and requirements regarding land use, planning and development, at the City of Dayton's sole discretion, then the City of Dayton's option for the MacGregor Park property shall immediately expire and the requirements of paragraph ii. below shall no longer apply and shall be deemed void.  Under such circumstances, DP&L shall provide the City of Dayton written notice of the bona fide offer and a complete description of the details of such planned use in order to allow the City of Dayton to certify that such use satisfies the Zoning Code requirements and/or the City of Dayton's reasonable expectations and requirements at the City of Dayton's sole discretion.  The City of Dayton shall 

30

have up to fifteen (15) days after DP&L's written notice to provide to DP&L a written response accepting or rejecting DP&L's request for certification, which response shall not be unreasonably withheld or delayed. Failure to provide such written response shall cause Dayton's option for the MacGregor Park property to expire without further notice.
		
	ii.
	If DP&L receives a bona fide offer to purchase the MacGregor Park property that DP&L chooses to accept and such bona fide offer does not satisfy the requirements of paragraph (i), then DP&L shall within fifteen (15) days after it receives the offer give to the City Manager of Dayton written notice that shall identify for the City Manager the amount of the bona fide offer and set an option price for the City of Dayton in an amount not to exceed one hundred five percent (105%) of such bona fide offer ("City Option Price").  The City of Dayton must notify DP&L in writing within thirty (30) calendar days of the date DP&L gives written notice to the City of Dayton of its decision to acquire the MacGregor Park property for the City Option Price, or else the option expires without further notice.  If within thirty (30) calendar days of the date DP&L gives written notice to the City of Dayton and the City of Dayton provides written notice that it will exercise its option to purchase the MacGregor Park property at the City Option Price, 

31

then the City of Dayton must acquire the MacGregor Park property at a closing within ninety (90) days of its written notice to DP&L or else the option expires without further notice.
		
	g.
	DP&L agrees to work with the City of Dayton to develop a job training program targeted at Dayton residents.  The parties agree to work cooperatively to establish the terms of that program.

		
	h.
	DP&L agrees to provide special hiring outreach for City of Dayton residents.  The outreach will include DP&L hosting an annual job fair for City of Dayton residents detailing both current job opportunities and recommended educational pathways.  DP&L will take reasonable measures to provide advance notice to the City of Dayton of upcoming DP&L job postings.  DP&L will also make reasonable efforts to identify and recruit City of Dayton residents who graduate from Sinclair Community College to fill open job positions for which they are qualified.

		
	i.
	DP&L will contribute $200,000 annually (no more than five payments total) to assist the City of Dayton in providing economic development programs and providing essential city services to residents, including low-income residents.  These funds shall not be recoverable from customers.  DP&L will provide the funding for those programs for 2017 within 30 days of the Commission's approval or modification of the ESP, subject to the provisions set forth in Section XI.5.  DP&L will provide the funding 

32

for each subsequent year of the ESP by no later than January 15th of each calendar year.
3.    Edgemont/Ohio Partners for Affordable Energy 
		
	a.
	DP&L shall contribute $565,000 of shareholder dollars annually to benefit electric consumers at or below 200% of the federal poverty line or customers at risk of losing electric service.  This amount includes $115,000 for DP&L's Gift of Power program and $450,000 for the Community Action Partnership.

4.    Honda
		
	a.
	DP&L agrees that Honda may avail itself of either the Automaker Incentive under Section IV.1.a.ii. or the Ohio Business Incentive under Section IV.1.a.iii.

		
	b.
	DP&L agrees to Honda's current energy efficiency opt-out status for the term of the ESP.  If Honda elects to opt-out under the provisions in ORC 4928.6611, no costs associated with any energy efficiency assistance that DP&L may provide to Honda  shall be recovered through DP&L’s energy efficiency rider. 

		
	c.
	DP&L will conduct meetings with Honda suppliers no less frequently than annually to discuss bill components, to sign up for an energy audit, and a discussion on energy star, conservation and demand response. 

33

		
	d.
	DP&L and Honda will work together to develop and automate Energy Star bench marking for Honda suppliers in DP&L’s service territory.

		
	e.
	DP&L will conduct a meeting of customers and other interested parties no less frequently than annually to discuss investment in advanced/smart grid infrastructure and renewable infrastructure.  The customer group may provide recommendations to DP&L to set priorities, investment amounts and timing of any construction.  If DP&L follows the recommendations developed in cooperation with this working group then members of the group will support DP&L with a Stipulation if any filing required by this investment is opposed.  

5.    Ohio Hospital Association
		
	a.
	In a manner that is consistent with DP&L's existing EE/PDR plan, DP&L will work with the Ohio Hospital Association ("OHA") on an annual energy efficiency program targeted at OHA members in the DP&L territory.  OHA agrees to hold the funds as may be necessary from year to year in order to accomplish the listed purposes.  The intent will be to partner with OHA to encourage and increase OHA members' participation in cost effective energy efficiency measures at the facilities.

		
	i.
	DP&L will provide OHA $200,000 per year to promote and obtain significant energy/demand savings among OHA members through efforts including Energy Star benchmarking, hospital energy 

34

audits, education related to energy efficiency and demand reduction, meetings with hospital facility directors and members of hospital c-suites, and presentations that champion energy efficiency, hospital resilience and energy-related actions to mitigate climate change and related issues.  During the first year, the $200,000 in funding for OHA shall be funded by shareholders.  During the remaining years, the $200,000 in funding shall be proposed for recovery through  subsequent Energy Efficiency Portfolio filings.  In the event that the Commission determines that this $200,000 in funding does not qualify for recovery in the Energy Efficiency Rider, or if the Energy Efficiency Rider no longer exists, the $200,000 will be funded by shareholders.  The funding described in this paragraph of the Stipulation is separate from the commitments set forth in the Case No. 16-649-EL-POR.  In addition, DP&L and OHA will collaborate to determine the level of funding from this pool of dollars to contribute to projects throughout the year to appropriately incentivize OHA members to implement EE/PDR projects, which should include a preference for OHA members that have below average Energy Star scores.
		
	ii.
	DP&L and OHA will work together to develop and automate Energy Star benchmarking for OHA members in DP&L’s service territory.

35

		
	iii.
	DP&L will eliminate any charges associated with the Alternate Feed Charge that currently are being charged to certain OHA members, and it will exempt OHA members from paying that charge as requested in DP&L's pending Distribution Rate Case.

6.    PWC
		
	a.
	The Company will provide People Working Cooperatively, Inc. ("PWC") $200,000 annually to fund PWC’s programs which assist DP&L’s low-income, elderly, and disabled customers. During the first year, the $200,000 in funding for PWC shall be funded by shareholders.  During the remaining years, the $200,000 in funding shall be proposed for recovery through subsequent Energy Efficiency Portfolio filings.  In the event the Commission determines that the $200,000 for PWC does not qualify for recovery in the Energy Efficiency Rider, or if the Energy Efficiency Rider no longer exists, the $200,000 will be funded by shareholders.  The Parties agree that the funding described in this paragraph of the Stipulation is separate from the $200,000 the Company agreed to provide PWC to fund its pilot program in Case No. 16-649-EL-POR, and also agree that this paragraph shall not be cited as precedent regarding any future funding for PWC’s pilot program or any other potential funding for PWC.

		
	XI.
	Other Provisions  

36

1.    In arm's-length bargaining, the Signatory Parties have negotiated terms and conditions that are embodied in this Stipulation.  This Agreement involves a variety of difficult, complicated issues that would otherwise be resolved only through expensive, complex, protracted litigation.  This Stipulation contains the entire Agreement among the Signatory Parties, and embodies a complete settlement of all claims, defenses, issues and objections in these proceedings.  The Signatory Parties agree that this Stipulation is in the best interests of the public and urge the Commission to adopt it.  
2.    All Signatory and Non-Opposing Parties, other than DP&L, will not support their filed testimony.  DP&L may offer its testimony and exhibits as further evidentiary support for this Stipulation, and will file supplemental testimony in support of this Stipulation.  Except as modified by this Stipulation, DP&L's Application in these matters is approved.  Nothing in this subsection prohibits any Signatory Party or Non-Opposing Party from filing testimony or submitting evidence in support of the Stipulation.
3.    This Stipulation is a consensus among the Signatory Parties of an overall approach to rates in this proceeding.  It is submitted for the purposes of this case alone and should not be understood to reflect the positions that an individual Signatory Party may take as to any individual provision of the Stipulation standing alone, nor the position a Signatory Party may have taken if all of the issues in this proceeding had been litigated.  Nothing in this Stipulation shall be used or construed for any purpose to imply, suggest or otherwise indicate that the results produced through the compromise reflected herein represent fully the objectives of any Signatory Party.  This Stipulation is submitted for purposes of this proceeding only, and is not deemed binding in any other proceeding, except as expressly provided herein, nor is it to be offered or 

37

relied upon in any other proceedings, except as necessary to enforce the terms of this Stipulation.  The willingness of Signatory Parties to sponsor this document currently is predicated on the reasonableness of the Stipulation taken as a whole.  
4.    The Signatory Parties will support the Stipulation if the Stipulation is contested.9 In order to provide certainty to customers, parties, and Applicant, the Signatory Parties and Non‐Opposing Parties agree that in DP&L's pending Electric Rate Case, Nos. 15-1830-EL-AIR, 15-1831-EL-AAM, 15-1832-EL-ATA, no party will seek to support any attempt to withdraw, curtail, or revise any provision of this settlement or to revise the provisions or benefits of this Stipulation.  However, nothing in this Stipulation prohibits the Signatory Parties and Non-Opposing Parties from contesting issues in the distribution rate case (Case No. 15-1830-EL-AIR) that are not otherwise addressed in this Stipulation.10 
5.    This Stipulation is conditioned upon adoption of the Stipulation by the Commission in its entirety and without material modification.  If the Commission rejects or modifies all or any part of this Stipulation, any Signatory Party shall have the right to apply for rehearing.  If the Commission does not adopt the Stipulation without material modification upon rehearing, or if the Commission makes a material modification to any Order adopting the Stipulation pursuant to any reversal, vacation and/or remand by the Supreme Court of Ohio, then within thirty (30) days of the Commission's Entry on Rehearing or Order on Remand:  (a) any Signatory Party may withdraw from the Stipulation by filing a notice with the Commission ("Notice of Withdrawal"); or (b) DP&L may terminate and withdraw from the Stipulation by filing a notice ("Utility Notice").11  Upon the filing of such Utility Notice by DP&L, the Stipulation shall immediately become null and void.  No Signatory Party shall file a Notice of 

38

Withdrawal or Utility Notice without first negotiating in good faith with the other Signatory Parties to achieve an outcome that substantially satisfies the intent of the Stipulation.  If a new agreement achieves such an outcome, the Signatory Parties will file the new agreement for Commission review and approval.  If the discussions to achieve an outcome that substantially satisfies the intent of the Stipulation are unsuccessful, and a Signatory Party files a Notice of Withdrawal, then the Commission will convene an evidentiary hearing to afford that Signatory Party the opportunity to contest the Stipulation by presenting evidence through witnesses, to cross-examine witnesses, to present rebuttal testimony, and to brief all issues that the Commission shall decide based upon the record and briefs.  If the discussions to achieve an outcome that substantially satisfies the intent of the Stipulation are successful, then some or all of the Signatory Parties shall submit the amended Stipulation to the Commission for approval after a hearing if necessary.

IN WITNESS THEREOF, the undersigned Signatory Parties agree to this Stipulation and Recommendation as of this 13th day of March, 2017.  The undersigned Signatory Parties request the Commission to issue its Opinion and Order approving and adopting this Stipulation.

39

	
			
	THE DAYTON POWER AND LIGHT COMPANY

By: ___________________________
          Jeffrey S. Sharkey

	 
	DPL INC.

By: ___________________________
          Jeffrey S. Sharkey

	STAFF OF THE PUBLIC UTILITIES COMMISSION OF OHIO

By:___________________________ 
          Thomas McNamee

	 
	CITY OF DAYTON, OHIO

By:___________________________ 
          N. Trevor Alexander

40

	
			
	RETAIL ENERGY SUPPLY ASSOCIATION

By:___________________________ 
         Michael J. Settineri(12)

	 
	EDGEMONT NEIGHBORHOOD COALITION

By:____________________________ 
          Ellis Jacobs

	INTERSTATE GAS SUPPLY, INC./IGS ENERGY

By:__________________________ 
          Joseph Oliker

	 
	PEOPLE WORKING COOPERATIVELY, INC.

By:__________________________ 
          Devin D. Parram

	OHIO HOSPITAL ASSOCIATION

By:___________________________ 
          Richard L. Sites
	 
	OHIO ENERGY GROUP

By:___________________________
          Michael L. Kurtz

	 
OHIO PARTNERS FOR AFFORDABLE ENERGY

By:___________________________
          Colleen Mooney

	 
	

THE KROGER COMPANY

By:___________________________
          Angela Paul Whitfield

41

IN WITNESS THEREOF, the undersigned Non-Opposing Parties agree not to challenge this Stipulation and Recommendation as of this 13th day of March, 2017. 

	
			
	ENERNOC, INC.

By:___________________________ 
          Joel E. Sechler
	 
	HONDA OF AMERICA, MFG., INC.

By:___________________________
          N. Trevor Alexander

	 
INDUSTRIAL ENERGY USERS-OHIO

By:___________________________ 
          Frank P. Darr 

	 
	 
OHIO MANUFACTURERS' ASSOCIATION ENERGY GROUP

By:___________________________
          Kimberly W. Bojko

42

____________________________

 1IGS, RESA, and Ohio Manufacturers' Association Energy Group ("OMAEG") do not support but agree not to oppose Section II.2. of the Stipulation taking into consideration the Stipulation as a package.  IGS', RESA's, and OMAEG's non-opposition shall not be relied upon in any other forum or proceeding.

 2"Non-Opposing Parties" shall be those parties that sign this Stipulation as Non-Opposing Parties.

 3The expiration of the current RSC shall have no effect upon, or invoke, this provision.

 4See footnote 3.

 5RESA and IGS do not oppose Section V.c. of this Stipulation.

 6Staff is not barred from opposing recovery of the OVEC deferral.  RESA and IGS do not support but agree not to oppose Section VI.1.a.i. and ii. of the Stipulation.

 7Each Signatory Party or Non-Opposing Party (or the members of a Signatory Party or Non-Opposing Party) shall each be eligible to designate up to three accounts to participate in the pilot program even if such participation causes the total number of participating accounts to exceed 50.  This provision does not limit any Signatory Party or Non-Opposing Party (or members of a Signatory Party or Non-Opposing Party) from utilizing more than three of the eligible 50 accounts to the extent the account otherwise qualifies for participation in the pilot program pursuant to this Stipulation.

 8See supra n.3.

 9RESA, IGS, OMAEG, and Kroger are not obligated to file testimony or briefs supporting the Stipulation.

10For avoidance of doubt, resolution of DP&L's current distribution rate case in Case No. 15-1830-EL-AIR may result in allocation of costs to the SSO rate and therefore, IGS and RESA are not prohibited from advocating for unbundling or changes to SSO rate or supplier tariffs in that proceeding or any other distribution rate case.
 
11IGS and RESA agree not to oppose part (b) of Section XI.5.

12RESA's signature to this Amended Stipulation is not effective unless all Signatory Parties to the January 30, 2017 Stipulation and Recommendation filed in this docket either sign this Amended Stipulation or agree in writing not to oppose this Amended Stipulation.

43

CERTIFICATE OF SERVICE
I certify that a copy of the foregoing Amended Stipulation and Recommendation has been served via electronic mail upon the following counsel of record, this 13th day of March, 2017.
	
		
	Thomas McNamee 
Natalia Messenger 
Public Utilities Commission of Ohio 
30 East Broad Street, 16th Floor
Columbus, OH  43215-3793
Email:  
thomas.mcnamee@ohioattorneygeneral.gov
natalia.messenger@ohioattorneygeneral.gov
 
Attorneys for PUCO Staff
	Frank P. Darr (Counsel of Record) 
Matthew R. Pritchard 
McNees Wallace & Nurick  
21 East State Street, 17th Floor 
Columbus, OH  43215 
Email:  fdarr@mwncmh.com 
    mpritchard@mwncmh.com
Attorneys for Industrial Energy Users – Ohio

	William J. Michael (Counsel of Record) 
Andrew S. Garver 
Kevin F. Moore  
Ajay Kumar 
Office of the Ohio Consumers' Counsel 
10 West Broad Street, Suite 1800 
Columbus, OH  43215-3485 
Email:   william.michael@occ.ohio.gov 
   andrew.garver@occ.ohio.gov 
   kevin.moore@occ.ohio.gov 
   ajay.kumar@occ.ohio.gov 
 
Attorneys for the Ohio Consumers' Counsel

	David F. Boehm 
Michael L. Kurtz 
Kurt J. Boehm 
Jody Kyler Cohn 
Boehm, Kurtz & Lowry  
36 East Seventh Street, Suite 1510 
Cincinnati, OH  45202 
Email:  dboehm@BKLlawfirm.com 
    mkurtz@BKLlawfirm.com 
    kboehm@BKLlawfirm.com 
    jkylercohn@BKLlawfirm.com
Attorneys for The Ohio Energy Group

	Kimberly W. Bojko 
James D. Perko, Jr. 
Carpenter Lipps & Leland LLP 
280 North High Street, Suite 1300 
Columbus, OH  43215 
Email:   bojko@carpenterlipps.com 
   perko@carpenterlipps.com
Attorneys for The Ohio Manufacturers' Association Energy Group
	Joseph Oliker (Counsel of Record) 
Matthew White 
Evan Betterton 
IGS Energy 
6100 Emerald Parkway 
Dublin, OH  43016 
Email:  joliker@igsenergy.com 
   mswhite@igsenergy.com 
   Ebetterton@igsenergy.com
Attorney for IGS Energy

1

	
				
	 
	Kevin R. Schmidt 
88 East Broad Street, Suite 1770 
Columbus, OH  43215 
Email:  schmidt@sppgrp.com
Attorney for The Energy Professionals of Ohio
	Evelyn R. Robinson 
2750 Monroe Boulevard 
Audubon, PA  19403 
Email:  evelyn.robinson@pjm.com 
 
Attorney for PJM Interconnection, L.L.C.

	 
	Jeffrey W. Mayes 
Monitoring Analytics, LLC 
2621 Van Buren Avenue, Suite 160 
Valley Forge Corporate Center 
Eagleville, PA  19403 
Email: jeffrey.mayes@monitoringanalytics.com
Attorneys for Monitoring Analytics, LLC as  
The Independent Market Monitor for PJM
	Joel E. Sechler (Counsel of Record) 
Carpenter Lipps & Leland 
280 N. High St., Suite 1300 
Columbus, OH  43215 
Email:  sechler@carpenterlipps.com
Gregory J. Poulos 
EnerNOC, Inc. 
P.O. Box 29492 
Columbus, OH  43229 
Email:  gpoulos@enernoc.com
Attorneys for EnerNOC, Inc.

	 
	Trent Dougherty 
1145 Chesapeake Ave., Suite 1 
Columbus, OH  43212-3449 
Email:  tdougherty@the OEC.org 
 
Attorney for Ohio Environmental 
Council
	Angela Paul Whitfield 
Carpenter Lipps & Leland LLP 
280 Plaza, Suite 1300 
280 North High Street 
Columbus, OH  43215 
Email:   paul@carpenterlipps.com
Attorney for The Kroger Co.

	 
	Miranda Leppla 
Ohio Environmental Council  
1145 Chesapeake Ave., Suite 1 
Columbus, OH  43212-3449 
Email:   mleppla@the OEC.org
Attorney for the Environmental Defense Fund
	Colleen Mooney 
Ohio Partners for Affordable Energy 
231 West Lima Street 
P.O. Box 1793 
Findlay, OH  45839-1793 
Email:  cmooney@ohiopartners.org
Attorney for Ohio Partners for Affordable Energy

	 
	Michael D. Dortch 
Richard R. Parsons 
Kravitz, Brown & Dortch, LLC 
65 East State Street, Suite 200 
Columbus, OH  43215 
Email:   mdortch@kravitzllc.com 
   rparsons@kravitzllc.com
Attorneys for Calpine Energy Solutions LLC
	Madeline Fleisher 
Kristin Field 
Environmental Law & Policy Center 
21 West Broad Street, Suite 500 
Columbus, OH  43215 
Email:  mfleisher@elpc.org 
   kfield@elpc.org
Attorneys for The Environmental Law & Policy Center

2

	
				
	Richard C. Sahli 
Richard C. Sahli Law Office, LLC 
981 Pinewood Lane 
Columbus, OH  43230-3662 
Email:  rsahli@columbus.rr.com
Christopher M. Bzdok (pro hac vice) 
Olson Bzdok & Howard, P.C. 
420 East Front Street 
Traverse City, MI  49686 
chris@envlaw.com
Tony G. Mendoza, Staff Attorney (pro hac vice) 
Kristin Henry, Senior Staff Attorney (pro hac vice) 
Sierra Club Environmental Law Program 
2101 Webster Street, 13th Floor 
Oakland, CA  94612 
Email:  tony.mendoza@sierraclub.org 
   kristin.henry@sierraclub.org
Attorneys for Sierra Club
 
Michelle Grant  
Dynegy Inc. 
601 Travis Street, Suite 1400 
Houston, TX  77002 
Email:  michelle.d.grant@dynegy.com
Attorneys for Dynegy Inc. 

	Lisa M. Hawrot 
Spilman Thomas & Battle, PLLC 
Century Centre Building 
1233 Main Street, Suite 4000 
Wheeling, WV  26003 
Email:  lhawrot@spilmanlaw.com 
Derrick Price Williamson 
Spilman Thomas & Battle, PLLC 
1100 Bent Creek Blvd., Suite 101 
Mechanicsburg, PA  17050 
Email:  dwilliamson@spilmanlaw.com 
Carrie M. Harris 
Spilman Thomas & Battle, PLLC 
310 First Street, Suite 1100 
P.O. Box 90 
Roanoke, VA  24002-0090 
Email:  charris@spilmanlaw.com
Steve W. Chriss  
Senior Manager, Energy Regulatory Analysis 
Greg Tillman 
Senior Manager, Energy Regulatory Analysis 
Wal-Mart Stores, Inc. 
2001 SE 10th Street 
Bentonville, AR  72716-0550 
Email:  Stephen.Chriss@walmart.com 
    Greg.Tillman@walmart.com
Attorneys for Wal-Mart Stores East, LP  
  and Sam's East, Inc.

3

	
		
	Michael J. Settineri 
Stephen M. Howard 
Gretchen L. Petrucci 
Ilya Batikov 
William A. Sieck 
Vorys, Sater, Seymour and Pease LLP 
52 E. Gay Street 
Columbus, OH 43215 
Email:   mjsettineri@vorys.com 
   smhoward@vorys.com 
   glpetrucci@vorys.com 
   ibatikov@vorys.com 
   wasieck@vorys.com 
Attorneys for Dynegy Inc.,  
PJM Power Providers Group, and 
Retail Energy Supply Association
Glen Thomas 
1060 First Avenue, Suite 400 
King of Prussia, PA  19406 
Email:  gthomas@gtpowergroup.com 
Sharon Theodore 
Electric Power Supply Association 
1401 New York Ave. NW 11th Floor 
Washington, DC 
Email:  stheodore@epsa.org
	Steven D. Lesser 
James F. Lang 
N. Trevor Alexander 
Mark T. Keaney 
Calfee, Halter & Griswold LLP 
41 South High Street 
1200 Huntington Center 
Columbus, OH  43215 
Email:    slesser@calfee.com 
   jlang@calfee.com 
   talexander@calfee.com 
   mkeaney@calfee.com
Attorneys for The City of Dayton and  
Honda of America Mfg., Inc.
John R. Doll 
Matthew T. Crawford  
Doll, Jansen & Ford 
111 West First Street, Suite 1100 
Dayton, OH  45402-1156 
Email:   jdoll@djflawfirm.com 
   mcrawford@djflawfirm.com
Attorneys for Utility Workers of  
America Local 175

	Laura Chappelle 
201 North Washington Square, Suite 910 
Lansing, MI  48933 
Email:  laurac@chappelleconsulting.net
Attorneys for PJM Power Providers Group 
Ellis Jacobs 
Advocates for Basic Legal Equality, Inc. 
130 West Second Street, Suite 700 East 
Dayton, OH  45402 
Email:  ejacobs@ablelaw.org
Attorney for Edgemont Neighborhood Coalition
	Richard L. Sites 
Ohio Hospital Association 
155 East Broad Street, 3rd Floor 
Columbus, OH  43215-3620 
Email:  rick.sites@ohiohospitals.org
Matthew W. Warnock 
Dylan F. Borchers 
Bricker & Eckler LLP 
100 South Third Street 
Columbus, OH  43215-4291 
Email:  mwarnock@bricker.com 
   dborchers@bricker.com
Attorneys for The Ohio Hospital Association

4

	
		
	Amy B. Spiller 
Jeanne W. Kingery 
Elizabeth H. Watts 
Duke-Energy Ohio, Inc. 
139 East Fourth Street 
1303-Main 
Cincinnati, OH  45202 
Email:  amy.spiller@duke-energy.com 
   jeanne.kingery@duke-energy.com 
   elizabeth.watts@duke-energy.com
Attorneys for Duke-Energy Ohio, Inc.
Carl Tamm, President 
Classic Connectors, Inc.382 Park Avenue East 
Mansfield, OH  44905 
Email:   crtamm@classicconnectors.com

	Terrence N. O'Donnell  
Raymond D. Seiler 
Christine M.T. Pirik 
William V. Vorys 
Dickinson Wright PLLC 
150 East Gay Street, Suite 2400 
Columbus, OH  43215 
Email:  todonnell@dickinsonwright.com 
   rseiler@dickinsonwright.com 
   cpirik@dickinsonwright.com 
   wvorys@dickinsonwright.com
Attorneys for Mid-Atlantic Renewable 
Energy Coalition

	John F. Stock 
Orla E. Collier 
Benesch, Friedlander, Coplan & Aronoff LLP 
41 South High Street, 26th Floor 
Columbus, OH  43215 
Email:  jstock@beneschlaw.com 
   ocollier@beneschlaw.com
Attorneys for Murray Energy Corporation  
and Citizens to Protect DP&L Jobs
	C. David Kelley, Prosecutor 
Dana N. Whalen 
110 West Main Street 
West Union, OH  45693 
Email:  prosecutorkelley@usa.com 
   dana.whalen@adamscountyoh.gov 
 
Attorneys for Adams County, Ohio, 
Monroe Township, Ohio, Sprigg Township,  
Manchester Local School District, and Adams County Ohio Valley School District

	 
	Devin D. Parram 
Bricker & Eckler LLP 
100 South Third Street 
Columbus, OH  43215-4291 
Email:   dparram@bricker.com
Attorney for People Working  
Cooperatively, Inc.

/s/ Jeffrey S. Sharkey                 
Jeffrey S. Sharkey
1157529.1

5

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