FIRST SUPPLEMENTAL
INDENTURE
FIRSTENERGY SOLUTIONS CORP.
THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A.
Dated as of August 1,
2009
Dated as of August 1,
2009
4.80% Senior Notes due 2015
6.05% Senior Notes due 2021
6.80% Senior Notes due 2039
The FIRST
SUPPLEMENTAL INDENTURE , dated as of August 1, 2009 (the
“ First Supplemental Indenture ”) between
FIRSTENERGY SOLUTIONS CORP. , a corporation duly organized
and existing under the laws of the State of Ohio (herein called the
“ Company ”), having its principal office at 341
White Pond Drive, Akron, Ohio 44320, and THE BANK OF NEW YORK
MELLON TRUST COMPANY, N.A. , a banking association duly
organized and existing under the laws of the United States of
America, as Trustee (herein called the “ Trustee
”) under the Indenture dated as of August 1, 2009
between the Company and the Trustee (hereinafter called the “
Original Indenture ” and as hereby supplemented, the
“ Indenture ”).
WHEREAS, the
Company entered into the Original Indenture to provide for the
issuance from time to time of its unsecured debentures, notes or
other evidences of indebtedness (therein called the “
Securities ”), in an unlimited aggregate principal
amount to be issued in one or more series as contemplated
therein;
WHEREAS, pursuant
to the terms of the Indenture, the Company desires to provide for
the establishment of three new series of its Securities to be known
as its 4.80% Senior Notes due 2015 (the “ 2015 Notes
”), 6.05% Senior Notes due 2021 (the “ 2021
Notes ”) and 6.80% Senior Notes due 2039 (the “
2039 Notes ,” and together with the 2015 Notes and the
2021 Notes, the “ Senior Notes ”), respectively,
the form and substance of such Senior Notes and the terms,
provisions and conditions thereof to be set forth as provided in
the Original Indenture and this First Supplemental
Indenture;
WHEREAS, pursuant
to the terms of the Guaranties (as defined below), the payment of
each of the Senior Notes is unconditionally and jointly and
severally guaranteed by the Company’s wholly owned
subsidiaries, FirstEnergy Generation Corp. (“ FGCO
”) and FirstEnergy Nuclear Generation Corp. (“
NGC ”);
WHEREAS, the
Company desires and has requested the Trustee to join with it in
the execution and delivery of this First Supplemental Indenture,
and all requirements necessary to make this First Supplemental
Indenture a valid instrument, in accordance with its terms, and to
make the Senior Notes, when executed by the Company and
authenticated and delivered by the Trustee, the valid obligations
of the Company have been satisfied;
NOW THEREFORE, in
consideration of the premises and in further consideration of the
sum of One Dollar in lawful money of the United States of America
paid to the Company by the Trustee at or before the execution and
delivery of this First Supplemental Indenture, the receipt whereof
is hereby acknowledged, and of other good and valuable
consideration, it is agreed by and between the Company and the
Trustee, for the equal and proportionate benefit of all holders of
the Senior Notes, as follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION
Section 101.
Definitions . Each capitalized term used but not defined in
this First Supplemental Indenture shall have the meaning assigned
to such term in the Original Indenture.
For all
purposes of this First Supplemental Indenture, except as otherwise
expressly provided or unless the context otherwise
requires:
(a) the terms
defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;
(b) all terms
used herein without definition which are defined in the Trust
Indenture Act, either directly or by reference therein, have the
meanings assigned to them therein;
(c) all
accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with GAAP (as defined below);
provided, however, that in determining GAAP applicable to the
Company, the Company shall, to the extent required, conform to any
order, rule or regulation of any administrative agency, regulatory
authority or other governmental body having jurisdiction over the
Company;
(d) any
reference herein to an “Article” or
“Section” refers to an “Article” or
“Section”, as the case may be, of this First
Supplemental Indenture; and
(e) the words
“herein”, “hereof’ and
“hereunder” and other words of similar import refer to
this First Supplemental Indenture as a whole and not to any
particular Article, Section or other subdivision.
Section 102.
Certain Definitions . The following definitions are hereby
added to the definitions contained in Section 101 of the
Original Indenture, but only with respect to the Senior Notes
issued in accordance with the provisions hereof:
“
Additional Interest ” has the meaning ascribed to such
term in the Registration Rights Agreement.
“
Additional 2015 Notes ” means any Senior Notes issued
under this First Supplemental Indenture in addition to the Initial
2015 Notes or Exchange 2015 Notes having the same terms in all
respects as the Initial 2015 Notes or Exchange 2015 Notes, as the
case may be.
“
Additional 2021 Notes ” means any Senior Notes issued
under this First Supplemental Indenture in addition to the Initial
2021 Notes or Exchange 2021 Notes having the same terms in all
respects as the Initial 2021 Notes or Exchange 2021 Notes, as the
case may be.
“
Additional 2039 Notes ” means any Senior Notes issued
under this First Supplemental Indenture in addition to the Initial
2039 Notes or Exchange 2039 Notes having the same terms in all
respects as the Initial 2039 Notes or Exchange 2039 Notes, as the
case may be.
“
Additional Notes ” means collectively, the Additional
2015 Notes, the Additional 2021 Notes and the Additional 2039
Notes.
“
Applicable Procedures ” means, with respect to any
transfer or exchange of or for beneficial interests in any Global
Security, the rules and procedures of the Depositary that apply to
such transfer or exchange.
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“ Change
of Control ” means the occurrence of any one of the
following:
(a) the
direct or indirect sale, lease, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one
or a series of related transactions, of all or substantially all of
the assets of the Company taken as a whole, or the assets of either
of the Guarantor Subsidiaries, in each case, taken as a whole, to
any Person (including any “person” (as that term is
used in Section 13(d)(3) of the Exchange Act)) other than to
FirstEnergy or one of its Majority-Owned Subsidiaries;
(b) the
consummation of any transaction (including, without limitation, any
merger or consolidation) the result of which is that any Person
(including any “person” (as that term is used in
Section 13(d)(3) of the Exchange Act)) becomes the
“beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Exchange Act), directly or indirectly, of more than
50% of the outstanding Voting Stock of FirstEnergy, measured by
voting power rather than number of shares or any Person (other than
FirstEnergy or any Majority-Owned Subsidiary of FirstEnergy)
becomes the “beneficial owner” (as so defined) directly
or indirectly, of more than 50% of the outstanding Voting Stock of
the Company, measured by voting power rather than number of
shares;
(c) the
Company, FirstEnergy or the Guarantor Subsidiaries consolidate
with, or merge with or into, any Person, or any Person consolidates
with, or merges with or into, the Company, FirstEnergy or the
Guarantor Subsidiaries, in any such event pursuant to a transaction
in which any of the outstanding Voting Stock of the Company,
FirstEnergy or the Guarantor Subsidiaries, or such other Person is
converted into or exchanged for cash, securities or other property,
other than any such transaction where the shares of the Voting
Stock of the Company, FirstEnergy or the Guarantor Subsidiaries
outstanding immediately prior to such transaction constitute, or
are converted into or exchanged for, a majority of the Voting Stock
of the surviving Person immediately after giving effect to such
transaction; or
(d) the first
day on which the majority of the members of the board of directors
of FirstEnergy ceases to be Continuing Directors.
“ Change
of Control Offer ” has the meaning set forth in
Section 301 hereto.
“ Change
of Control Offer Period ” has the meaning set forth in
Section 302 hereto.
“ Change
of Control Payment Date ” has the meaning set forth in
Section 302 hereto.
“ Change
of Control Purchase Price ” has the meaning set forth in
Section 301 hereto.
“ Change
of Control Triggering Event ” means the Senior Notes
cease to be rated Investment Grade by at least two of the three
Rating Agencies on any date during the Trigger Period. Unless at
least two of the three Rating Agencies are providing a rating for
the Senior Notes at the commencement of any Trigger Period, the
Senior Notes will be deemed to have ceased to be rated Investment
Grade by at least two of the three Rating Agencies during that
Trigger Period. Notwithstanding the foregoing, no Change of Control
Triggering Event will be deemed to have occurred in connection with
any particular Change of Control unless and until such Change of
Control has actually been consummated.
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“
Continuing Director ” means, as of any date of
determination, any member of the board of directors of FirstEnergy,
who:
(a) was a
member of such board of directors on the date of the issuance of
the Senior Notes; or
(b) was
nominated for election or elected to such board of directors with
the approval of a majority of the Continuing Directors who were
members of the board of directors at the time of such nomination or
election.
“
Debt ” means any indebtedness of any Person for
borrowed money evidenced by bonds, debentures, notes or similar
instruments. “Debt” does not include, among other
things:
(a) indebtedness
of a Person under any installment sale or conditional sale
agreement or any other agreement relating to indebtedness for the
deferred purchase price of property or services;
(b) trade
accounts payable incurred in the ordinary course of business
(including obligations under agreements relating to the purchase
and sale of any commodity, including power purchase or sale
agreements and any commodity hedges or derivatives regardless of
whether any such transaction is a “financial” or
physical transaction) or other obligations of a Person in the
ordinary course of business;
(c) obligations
under leases that shall have been or should be, in accordance with
GAAP, recorded as capital leases in respect of which a Person is
liable as lessee; or
(d) liabilities
secured by any Lien on any property owned by a Person if and to the
extent the Person has not assumed or otherwise become liable for
the payment thereof.
“
Exchange 2015 Notes ” means the 2015 Notes (the terms
of which are identical to the Initial 2015 Notes except that the
Exchange 2015 Notes shall be registered under the Securities Act,
and shall not contain the restrictive legend on the face of the
Initial 2015 Notes), to be issued in exchange for the Initial 2015
Notes pursuant to the registered Exchange Offer.
“
Exchange 2021 Notes ” means the 2021 Notes (the terms
of which are identical to the Initial 2021 Notes except that the
Exchange 2021 Notes shall be registered under the Securities Act,
and shall not contain the restrictive legend on the face of the
Initial 2021 Notes), to be issued in exchange for the Initial 2021
Notes pursuant to the registered Exchange Offer.
“
Exchange 2039 Notes ” means the 2039 Notes (the terms
of which are identical to the Initial 2039 Notes except that the
Exchange 2039 Notes shall be registered under the Securities Act,
and shall not contain the restrictive legend on the face of the
Initial 2039 Notes), to be issued in exchange for the Initial 2039
Notes pursuant to the registered Exchange Offer.
“
Exchange Notes ” means collectively, the Exchange 2015
Notes, the Exchange 2021 Notes and the Exchange 2039
Notes.
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“
Exchange Offer ” means the offer by the Company to
each holder of the Initial Notes to exchange the aggregate
principal amount of Initial Notes held by such holder for an equal
aggregate principal amount of Exchange Notes of the same series,
all in accordance with the terms and conditions of the Registration
Rights Agreement.
“
FirstEnergy ” means FirstEnergy Corp., an Ohio
corporation and the parent of the Company.
“
FGCO ” means FirstEnergy Generation Corp., an Ohio
corporation and a subsidiary of the Company.
“ FGCO
Guaranty ” means that certain Guaranty, dated as of
March 26, 2007, executed and delivered by FGCO in favor of the
Guaranteed Parties as defined therein and acknowledged by the
Company and as evidenced by the affirmation of guaranty to be
executed substantially in the form of Exhibit D.
“ FGCO
Mortgage ” means the Open-End Mortgage, General Mortgage
Indenture and Deed of Trust, dated as of June 19, 2008, by and
between FGCO and The Bank of New York Mellon Trust Company, N.A.,
as trustee (formerly known as The Bank of New York Trust Company,
N.A.), as amended and supplemented.
“
Fitch ” means Fitch Inc., a subsidiary of Fimalac,
S.A., and its successors.
“
GAAP ” means generally accepted accounting principles
applicable to the type of business in which the Company and the
Guarantor Subsidiaries are engaged in effect as of the Issue
Date.
“
Guaranties ” means the FGCO Guaranty and the NGC
Guaranty.
“
Guarantor Subsidiaries ” means FGCO and
NGC.
“ Initial
2015 Notes ” means the $400,000,000 aggregate principal
amount of 2015 Notes issued on the Issue Date and delivered under
this First Supplemental Indenture.
“ Initial
2021 Notes ” means the $600,000,000 aggregate principal
amount of 2021 Notes issued on the Issue Date and delivered under
this First Supplemental Indenture.
“ Initial
2039 Notes ” means the $500,000,000 aggregate principal
amount of 2039 Notes issued on the Issue Date and delivered under
this First Supplemental Indenture.
“ Initial
Notes ” means collectively, the Initial 2015 Notes, the
Initial 2021 Notes and the Initial 2039 Notes.
“
Investment Grade ” means a rating of Baa3 or better by
Moody’s (or its equivalent under any successor rating
category of Moody’s); a rating of BBB- or better by S&P
(or its equivalent under any successor rating category of S&P);
and a rating of BBB- or better by Fitch (or its equivalent under
any successor rating category of Fitch).
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“ Issue
Date ” means August 7, 2009, the date of the
original issuance of the Initial Notes.
“
Lien ” has the meaning ascribed to it in
Section 401.
“
Majority-Owned Subsidiary ” means, with respect to any
Person, any corporation or other entity of which securities or
other ownership interests having ordinary voting power to elect a
majority of the Board of Directors or other persons performing
similar functions are at the time directly or indirectly owned by
such Person, or one or more Majority-Owned Subsidiaries, or by such
Person and one or more of its Majority-Owned
Subsidiaries.
“
Moody’s ” means Moody’s Investors Service,
Inc., a subsidiary of Moody’s Corporation, and its
successors.
“ NGC
” means FirstEnergy Nuclear Generation Corp., an Ohio
corporation and a subsidiary of the Company.
“ NGC
Guaranty ” means that certain Guaranty, dated as of
March 26, 2007, executed and delivered by NGC in favor of the
Guaranteed Parties as defined therein and acknowledged by the
Company, and as evidenced by the affirmation of guaranty to be
executed substantially in the form of Exhibit D.
“ NGC
Mortgage ” means the Open-End Mortgage, General Mortgage
Indenture and Deed of Trust, dated as of June 1, 2009, by and
between NGC and The Bank of New York Mellon Trust Company, N.A., as
trustee, as amended and supplemented.
“
Property ” means (i) any interest in real
property owned by the Company or the Guarantor Subsidiaries,
(ii) any asset owned by the Company or the Guarantor
Subsidiaries that is depreciable in accordance with GAAP and
(iii) in the case of the Company, the capital stock of the
Guarantor Subsidiaries. “Property” does not include,
among other things: contracts, leases, and other agreements;
contract rights, bills, notes and other instruments; revenues,
income and earnings, accounts, accounts receivable and unbilled
revenues, claims, credits, demands and judgments; governmental and
other licenses, permits, franchises, consents and allowances; or
intellectual property rights and other general
intangibles.
“ Senior
Notes ” means the Initial Notes, the Exchange Notes and
any Additional Notes issued on or after the Issue Date in
accordance with Section 201 treated as a single class of
Securities, as amended or supplemented from time to time in
accordance with the terms hereof, that are issued pursuant to this
First Supplemental Indenture.
“
S&P ” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., and its
successors.
“ Rating
Agency ” means each of Moody’s, S&P and Fitch;
provided , that if any of Moody’s, S&P and Fitch
ceases to provide rating services to issuers or investors, the
Company may appoint a replacement for such Rating Agency that is
reasonably acceptable to the Trustee under this First Supplemental
Indenture.
6
“
Registration Rights Agreement ” means the Registration
Rights Agreement, dated the Issue Date between the Company and
Morgan Stanley & Co. Incorporated, Barclays Capital Inc.,
Credit Suisse Securities (USA) LLC and RBS Securities Inc., as
representatives of the initial purchasers named in Schedule I
to the Registration Rights Agreement.
“
Tangible Assets ” means the amount shown as total
assets on the Company’s consolidated balance sheet, less the
following: (i) intangible assets including, but without
limitation, such items as goodwill, trademarks, trade names,
patents, and unamortized debt discount and expense on the
Company’s consolidated balance sheet and
(ii) appropriate adjustments, if any, related to minority
interests. Such amounts shall be determined in accordance with
GAAP.
“ Trigger
Period ” means the period commencing 60 days prior
to the first public announcement by the Company or FirstEnergy of
any Change of Control (or pending Change of Control) and ending
60 days following consummation of such Change of Control
(which Trigger Period will be extended following consummation of a
Change of Control for so long as any of the Rating Agencies has
publicly announced that it is considering a possible ratings
change).
“ Voting
Stock ” of any specified Person as of any date means the
capital stock of such Person that is at the time entitled to vote
generally in the election of the board of directors of such
Person.
ARTICLE TWO
THE SENIOR NOTES
Section 201.
Designation and Issuance of Senior Notes .
(a) There is
hereby created a series of Securities designated, as hereinbefore
recited, as the Company’s “4.80% Senior Notes due
2015.” In accordance with the provisions of the Indenture,
the Trustee, will upon receipt of a Company Order, authenticate
(i) the Initial 2015 Notes, (ii) the Exchange 2015 Notes
and (iii) Additional 2015 Notes from time to time as permitted
under the Indenture.
(b) There is
hereby created a series of Securities designated, as hereinbefore
recited, as the Company’s “6.05% Senior Notes due
2021.” In accordance with the provisions of the Indenture,
the Trustee, will upon receipt of a Company Order, authenticate
(i) the Initial 2021 Notes, (ii) the Exchange 2021 Notes
and (iii) Additional 2021 Notes from time to time as permitted
under the Indenture.
(c) There is
hereby created a series of Securities designated, as hereinbefore
recited, as the Company’s “6.80% Senior Notes due
2039.” In accordance with the provisions of the Indenture,
the Trustee, will upon receipt of a Company Order, authenticate
(i) the Initial 2039 Notes, (ii) the Exchange 2039 Notes
and (iii) Additional 2039 Notes from time to time as permitted
under the Indenture.
(d) The
Senior Notes shall be issuable initially in the form of one or more
Global Securities and shall bear the legends set forth in Exhibits
A, B and C, respectively, and the Affirmation of Guaranty set forth
in Exhibit D shall be affixed to the Senior Notes. The
7
aggregate
principal amount of Senior Notes which may be authenticated and
delivered under this First Supplemental Indenture is
unlimited.
(e) The
Company initially appoints The Depository Trust Company (the
“DTC”) to act as Depository with respect to the Global
Securities.
(f) The
Company initially appoints the Trustee to act as Security Registrar
and Paying Agent with respect to The Global Securities, and the
Trustee hereby agrees so to initially act.
Section 202.
Form, Date, Maturity, Interest Rate and Interest Payment Dates
of Senior Notes .
(a) The 2015
Notes shall be payable in the amount, on the dates and in the
manner provided for in the form of the 2015 Notes attached hereto
as Exhibit A, and such provisions are incorporated at this
place as though set forth in their entirety. The interest rate and
the Stated Maturity of the 2015 Notes shall be as set forth in the
form of the 2015 Note. The Initial 2015 Notes shall be entitled to
Additional Interest accruing during the periods described in the
Registration Rights Agreement. All references in the Indenture and
the Initial 2015 Notes to “interest” shall be deemed to
include any Additional Interest.
(b) The 2021
Notes shall be payable in the amount, on the dates and in the
manner provided for in the form of the 2021 Notes attached hereto
as Exhibit B, and such provisions are incorporated at this
place as though set forth in their entirety. The interest rate and
the Stated Maturity of the 2021 Notes shall be as set forth in the
form of the 2021 Note. The Initial 2021 Notes shall be entitled to
Additional Interest accruing during the periods described in the
Registration Rights Agreement. All references in the Indenture and
the Initial 2021 Notes to “interest” shall be deemed to
include any Additional Interest.
(c) The 2039
Notes shall be payable in the amount, on the dates and in the
manner provided for in the form of the 2039 Notes attached hereto
as Exhibit C, and such provisions are incorporated at this
place as though set forth in their entirety. The interest rate and
the Stated Maturity of the 2039 Notes shall be as set forth in the
form of the Initial 2039 Note. The Initial 2039 Notes shall be
entitled to Additional Interest accruing during the periods
described in the Registration Rights Agreement. All references in
the Indenture and the Initial 2039 Notes to “interest”
shall be deemed to include any Additional Interest.
Section 203.
Optional Redemption of Senior Notes .
(a) The 2015
Notes shall be redeemable at the option of the Company, at the
times and in the manner provided for in the form of the 2015 Notes
attached hereto as Exhibit A, and such provisions are
incorporated at this place as though set forth in their
entirety.
(b) The 2021
Notes shall be redeemable at the option of the Company, at the
times and in the manner provided for in the form of the 2021 Notes
attached hereto as Exhibit B, and such provisions are
incorporated at this place as though set forth in their
entirety.
(c) The 2039
Notes shall be redeemable at the option of the Company, at the
times and in the manner provided for in the form of the 2039 Notes
attached hereto as Exhibit C, and such provisions are
incorporated at this place as though set forth in their
entirety.
Section 204.
Issuances of Additional Notes .
The Company shall
be entitled, upon delivery of an Officer’s Certificate,
Opinion of Counsel and Company Order, to issue Additional Notes
under this First Supplemental Indenture
8
which shall
have identical terms as the Initial Notes issued on the Issue Date,
other than with respect to the date of issuance and issue price.
The Initial Notes issued on the Issue Date, the Exchange Notes and
any Additional Notes issued shall be treated as a single class for
all purposes under this First Supplemental Indenture. The period of
the resale and transfer restrictions applicable to the Senior Notes
in reliance on Rule 144A under the Securities Act will be
automatically extended to the last day of the period of any resale
or transfer restrictions on any such Additional Notes.
With respect to
any Additional Notes, the Company shall set forth in a Board
Resolution and an Officer’s Certificate, a copy of each of
which shall be delivered to the Trustee, the following
information:
(a) the
aggregate principal amount of such Additional Notes to be
authenticated and delivered pursuant to this First Supplemental
Indenture; and
(b) the issue
price, the issue date and the CUSIP number of such Additional
Notes.
Section 205.
Guaranties . Pursuant to the terms of the FGCO Guaranty and
the NGC Guaranty, the payment of each of the Senior Notes is
unconditionally and jointly and severally guaranteed by the
Company’s wholly owned subsidiaries, FGCO and NGC, as
evidenced by the affirmation of guaranty to be executed
substantially in the form of Exhibit D and affixed to each of the
Senior Notes.
ARTICLE THREE
REPURCHASE OF SENIOR NOTES UPON CHANGE OF CONTROL
Section 301.
Offer to Redeem Upon Change of Control Triggering Event .
Upon the occurrence of a Change of Control Triggering Event, unless
the Company has exercised its right to redeem the Senior Notes
pursuant to Section 203 of the First Supplemental Indenture,
each holder of Senior Notes will have the right to require the
Company to purchase all or a portion of such holder’s Senior
Notes pursuant to the offer described below (the “ Change
of Control Offer ”), at a purchase price equal to 101% of
the principal amount thereof plus accrued and unpaid interest, if
any, to the date of purchase, subject to the rights of holders of
Senior Notes on the relevant record date to receive interest due on
the relevant interest payment date (the “ Change of
Control Purchase Price ”).
Section 302.
Redemption Procedures .
(a) Within
30 days following the Change of Control Triggering Event, or
at the option of the Company, prior to the Change of Control
Triggering Event but after the public announcement of the of the
pending Change of Control, if the Company has not sent a redemption
notice for all the Senior Notes in connection with an optional
redemption permitted by this First Supplemental Indenture, the
Company shall mail a notice to each registered Holder, with a copy
to the Trustee, briefly describing the transaction or transactions
that constitute the Change of Control Triggering Event and offering
to repurchase Senior Notes on the date specified in such notice,
which date shall be no earlier than 30 days nor later than
60 days from the date such notice is mailed (the “
Change of Control Payment Date ”). The notice, if
mailed prior to the date of consummation of the Change of Control,
will state that the Change of Control Offer is conditioned on the
Change of Control being consummated on or prior to the Change of
Control Payment Date. The Change of Control Offer shall remain open
for at least 30 days following its commencement (the “
Change of Control Offer Period ”). Upon expiration of
the Change of Control Offer Period, the Company shall promptly
purchase all Senior Notes properly tendered in response to the
Change of Control Offer.
(b) On or
before the Change of Control Payment Date, the Company will
(i) accept for payment Senior Notes or portions thereof
properly tendered pursuant to the Change of Control Offer, (ii)
deposit with the Paying Agent cash sufficient to pay the Change of
Control
9
Purchase Price
of all Senior Notes so tendered and (iii) deliver to the
Trustee Senior Notes so accepted together with an Officer’s
Certificate listing the Senior Notes or portions thereof being
purchased by the Company. The Paying Agent promptly will pay the
Holders of Senior Notes so accepted an amount equal to the Change
of Control Purchase Price, for such Senior Notes, and the Trustee
promptly will authenticate and mail, or cause to be transferred by
book-entry, to each Holder new Senior Notes equal in principal
amount to any unpurchased portion of the Senior Notes surrendered,
if any; provided that each such new Senior Note shall be in a
principal amount of $2,000 and integral multiples of $1,000 in
excess of $2,000. Any Senior Notes so accepted for payment shall
cease to accrue interest on and after the Change of Control Payment
Date. Any Senior Notes not so accepted will be delivered promptly
by the Company to the Holder thereof. The Company publicly will
announce the results of the Change of Control Offer on or as soon
as practicable after the Change of Control Payment Date.
(c) Any
Change of Control Offer will be made in compliance with any and all
applicable laws, rules and regulations, including, if applicable,
Regulation 14E under the Exchange Act and the rules thereunder
and any and all other applicable United States Federal and state
securities laws. To the extent that the provisions of any
securities laws or regulations conflict with the provisions of this
Section 302, the Company’s compliance or compliance by
FirstEnergy, as the case may be, with such laws and regulations
shall not in and of itself cause a breach of their obligations
under this Section 302.
(d) This
Section 302 shall be applicable, except as described in this
Section 302, following a Change of Control Triggering Event
notwithstanding any optional redemption rights of the Company that
may be set forth in this First Supplemental Indenture.
(e) Notwithstanding
the foregoing, the Company shall not be required to make a Change
of Control Offer upon a Change of Control Triggering Event if a
third party makes the Change of Control Offer in the manner, at the
times and otherwise in compliance with the requirements set forth
herein applicable to a Change of Control Offer made by the Company
and purchases all Senior Notes properly tendered and not withdrawn
under the Change of Control Offer.
ARTICLE FOUR
ADDITIONAL COVENANTS APPLICABLE TO THE SENIOR NOTES
Section 401.
Limitation on Liens . So long as any Senior Notes of any
series are Outstanding, the Company may not, nor permit any of the
Guarantor Subsidiaries to, issue, assume, guarantee or permit to
exist any Debt that is secured by any mortgage, security, interest,
pledge or lien (“ Lien ”) of or upon the
Property of the Company or upon the Property of the Guarantor
Subsidiaries, in each case, whether owned at the Issue Date or
subsequently acquired, without in any such case effectively
securing the Senior Notes (together with, if the Company shall so
determine, any of the Company’s other indebtedness ranking
equally with the Senior Notes) equally and ratably with such Debt
(but only so long as such Debt is so secured); provided,
however , that the foregoing restriction shall not apply
to:
10
(a) Liens on
any property existing at the time of its acquisition (which Liens
may also extend to subsequent repairs, alterations and improvements
to that Property);
(b) Liens on
property of a corporation existing at the time such corporation is
merged into or consolidated with, or at the time the corporation
sells, leases or otherwise disposes of its properties (or of a
division thereof) as or substantially as an entirety to, the
Company;
(c) Liens on
Property to secure the costs of acquisition, construction,
development or substantial repair, alteration or improvement of
such Property or to secure Debt incurred to provide funds for any
of such purposes or for reimbursement of funds previously expended
for any of such purposes, provided such Liens are created or
assumed contemporaneously with, or within eighteen (18) months
after, the acquisition or the completion of such substantial repair
or alteration, construction, development or substantial
improvement;
(d) Liens in
favor of any State of the United States or any department, agency
or instrumentality or political subdivision of any State, or for
the benefit of holders of securities issued by any such entity (or
providers of credit enhancement with respect to such securities),
to secure any Debt (including, without limitation, obligations of
the Company or the Guarantor Subsidiaries with respect to
industrial development, pollution control or similar revenue bonds)
incurred for the purpose of financing or refinancing all or any
part of the purchase price or the cost of substantially repairing
or altering, constructing, developing or substantially improving
property which at the time of such purchase, repair, alteration,
construction, development or improvement was owned or operated by
the Company or any of the Guarantor Subsidiaries;
(e) Liens
securing Debt outstanding as of the Issue Date;
(f) Liens
securing Debt issued and outstanding from time to time under the
FGCO Mortgage or under the NGC Mortgage;
(g) Liens to
secure pledges or deposits made in the ordinary course of business
in connection with bids, tenders or contracts (other than payment
of Debt) or to secure guarantees, statutory or regulatory
obligations or surety or performance bonds each made in the
ordinary course of business;
(h) Liens on
Property which is the subject of a lease agreement designating the
Company or either of the Guarantor Subsidiaries as lessee and all
of its right, title and interest in such Property and such lease
agreement, whether or not such lease agreement is intended as
security;
(i) Liens for
taxes, assessments, governmental charges and levies to the extent
not past due; pledges or deposits to secure performance or
obligations under workmen’s compensation laws or similar
legislation, and statutory obligations of the Company or Guarantor
Subsidiaries; Liens imposed by law, such as materialmen’s,
mechanics’, carriers’, workmen’s and
repairmen’s Liens, Liens created by or resulting from legal
proceedings being contested in good faith, and other similar Liens
arising in the ordinary course of business securing obligations
which are not overdue or which have been fully bonded and are being
contested in good faith;
(j) Liens in
favor of the Company or any Guarantor Subsidiaries;
11
(k) Liens in
favor of the Trustee related to Section 907 of the Original
Indenture; or
(l) any
extension, renewal or replacement (or successive extensions,
renewals or replacements), in whole or in part, of any Lien
referred to in clauses (a) through (k), provided,
however , that the principal amount of Debt secured thereby and
not otherwise authorized by clauses (a) through (k), shall not
exceed the principal amount of Debt, plus any premium or fee
payable in connection with any such extension, renewal or
replacement, so secured at the time of the extension, renewal or
replacement.
Notwithstanding
the provisions above, the Company may, and may permit each of the
Guarantor Subsidiaries to, issue, assume or guarantee Debt secured
by Liens which would otherwise be subject to the restrictions of
this Section 401 up to an aggregate principal amount which,
together with the principal amount of all other Debt of the Company
secured by Liens (other than Liens permitted by clauses
(a) through (l) above), does not exceed the greater of
$1,500,000,000 or fifteen percent (15%) of Tangible
Assets.
If the Company
shall issue, assume or guarantee any Debt secured by any Lien and
if this Section 401 requires that the Outstanding Senior Notes
be secured equally and ratably with such Debt, the Company will
promptly execute, at its expense, any instruments necessary to so
equally and ratably secure the Outstanding Senior Notes and deliver
the same to the Trustee along with:
(i)
An Officer’s Certificate stating that the covenant of the
Company contained in this Section 401 has been complied with;
and
(ii)
An Opinion of Counsel to the effect that the Company has complied
with the covenant contained in this Section 401, and that any
instruments executed by the Company in the performance of such
covenant comply with the requirements of such covenant.
In the event that
the Company shall hereafter secure Outstanding Senior Notes equally
and ratably with any other obligation or indebtedness pursuant to
the provisions of this Section 401, the Company will, upon the
request of the Trustee, enter into an indenture or agreement
supplemental hereto and take such other action, if any, as the
Trustee may reasonably request to enable it to enforce effectively
the rights of the holders of Outstanding Senior Notes so secured,
equally and ratably with such other obligation or
indebtedness.
For the avoidance
of doubt, it is understood and agreed that, notwithstanding the
inclusion in any of clauses (a) through (k) in the first
paragraph of this Section 401 above of a reference to any type
of obligation of any Person that in the ordinary course or under
customary usage would not be considered Debt as such term is herein
defined, the inclusion of such reference in any of such clauses
shall not create any implication that such type of obligation is
intended to be considered Debt for any purpose
hereunder.
Section 402.
Maintenance of Ownership . So long as any Senior Notes are
outstanding, the Company may not sell, transfer, convey or
otherwise dispose of any of the capital stock of either of the
Guarantor Subsidiaries to any Person other than the Company, its
subsidiaries or FirstEnergy.
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ARTICLE FIVE
EXTENSION OF CERTAIN EVENTS OF DEFAULT
TO THE GUARANTOR SUBSIDIARIES
Section 501.
Guarantor Subsidiaries . Any reference to “the
Company” in Section 801(d) and (e) of the Original
Indenture shall, for the purposes of the Senior Notes, be a
reference to “the Company or one or both of the Guarantor
Subsidiaries” and the reference to the “Board of
Directors” in said Section 801(e) shall be a reference to the
“Board of Directors of the Company or one or both of the
Guarantor Subsidiaries.”
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 601.
Ratification . The Original Indenture, as supplemented by
this First Supplemental Indenture, is in all respects ratified and
confirmed. This First Supplemental Indenture shall be deemed part
of the Original Indenture in the manner and to the extent provided
herein and therein.
Section 602.
Governing Law . This First Supplemental Indenture and the
Senior Notes shall be governed by and construed in accordance with
the laws of the State of New York (including without limitation
Section 5-1401 of the New York General Obligations Law or any
successor to such statute) except to the extent that the Trust
Indenture Act shall be applicable.
Section 603.
Severability Clause . In case any provision in this First
Supplemental Indenture or the Senior Notes shall be invalid,
illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or
impaired thereby.
Section 604.
Conflict with Trust Indenture Act . If any provision of this
First Supplemental Indenture limits, qualifies or conflicts with
another provision hereof which is required or deemed to be included
in this First Supplemental Indenture by, or is otherwise governed
by, any of the provisions of the Trust Indenture Act, such other
provision shall control; and if any provision hereof otherwise
conflicts with the Trust Indenture Act, the Trust Indenture Act
shall control unless otherwise provided as contemplated by
Section 301 of the Original Indenture with respect to any
series of Senior Notes.
Section 605.
No Additional Rights . Nothing in this First Supplemental
Indenture is intended to or shall provide any rights to any parties
other than those expressly contemplated by this First Supplemental
Indenture.
Section 606.
Successors and Assigns . All covenants and agreements in
this First Supplemental Indenture by the Company and Trustee shall
bind their respective successors and assigns, whether so expressed
or not.
Section 607.
Effective Date . This First Supplemental Indenture shall
become effective upon the execution and delivery by the parties
hereto.
13
This instrument
may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same
instrument.
14
IN WITNESS
WHEREOF, the parties hereto have caused this First Supplemental
Indenture to be duly executed and attested, on the date or dates
indicated in the acknowledgments and as of the day and year first
above written.
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FIRSTENERGY
SOLUTIONS CORP.
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By:
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/s/ Kelley E.
Mendenhall
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Name:
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Kelley E.
Mendenhall
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Title:
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Assistant
Treasurer
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THE BANK OF NEW
YORK MELLON TRUST
COMPANY, N.A., as Trustee
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By:
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/s/ Biagio S.
Impala
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Name:
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Biagio S.
Impala
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Title:
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Vice
President
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15
EXHIBIT A
[FORM OF 2015 SENIOR NOTE]
CUSIP NUMBER
[ ]
ISIN NUMBER
[ ]
FIRSTENERGY SOLUTIONS
CORP.
4.80% SENIOR NOTES DUE
2015
FIRSTENERGY
SOLUTIONS CORP., an Ohio corporation (the “Company”),
for value received, hereby promises to pay to CEDE & CO. or
registered assigns, the principal sum of [ ] Dollars, or such
greater or lesser amount as may from time to time be endorsed on
the Schedule of Increases and Decreases of Interests in the Global
Securities attached hereto (but in no event may such amount exceed
the aggregate principal amount of Senior Notes authenticated
pursuant to Section 303 of the Indenture referred to below and
then outstanding pursuant to Section 201 of the First
Supplemental Indenture) on the Stated Maturity specified
below.
Original Issue
Date: August 7, 2009
Stated
Maturity: February 15, 2015
Interest
Payment Dates: February 15 and August 15, commencing
February 15, 2010
Record Dates:
The Business Day immediately preceding each Interest Payment Date
so long as this Senior Note is issued in book-entry only form,
otherwise the fifteenth calendar day next preceding each Interest
Payment Date.
[Remainder of Page Intentionally
Left Blank]
IN WITNESS
WHEREOF, the Company has caused this instrument to be executed in
its name by the manual or facsimile signature of an Authorized
Executive Officer and attested by the manual or facsimile signature
of another Authorized Executive Officer.
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FIRSTENERGY
SOLUTIONS CORP.
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By:
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Name:
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Title:
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ATTEST:
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By:
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[FORM OF TRUSTEE’S
AUTHENTICATION CERTIFICATE]
This
is one of the Senior Notes of the series herein designated therein
referred to in the within-mentioned Indenture.
THE BANK OF NEW
YORK MELLON
TRUST COMPANY, N.A.,
as Trustee
FIRSTENERGY SOLUTIONS
CORP.
4.80% SENIOR NOTES DUE
2015
UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), NEW YORK, NEW YORK, TO AN ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN
PART, TO NOMINEES OF DTC OR SUCCESSOR THEREOF OR SUCH
SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF.
[TRANSFER
RESTRICTION LEGEND]
THIS SECURITY AND
ANY RELATED DOCUMENTATION MAY BE AMENDED OR SUPPLEMENTED FROM TIME
TO TIME TO MODIFY THE RESTRICTIONS ON AND PROCEDURES FOR RESALES
AND OTHER TRANSFERS OF THIS SECURITY TO REFLECT ANY CHANGE IN
APPLICABLE LAW OR REGULATION (OR THE INTERPRETATION THEREOF) OR IN
PRACTICES RELATING TO THE RESALE OR TRANSFER OF RESTRICTED
SECURITIES GENERALLY. THE HOLDER OF THIS SECURITY SHALL BE DEEMED
BY THE ACCEPTANCE OF THIS SECURITY TO HAVE AGREED TO ANY SUCH
AMENDMENT OR SUPPLEMENT.
[144A
LEGEND][REG S LEGEND (REPLACING TEMPORARY REG S LEGEND)]
NEITHER THIS
SECURITY NOR ANY BENEFICIAL INTEREST HEREIN HAS BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). EACH HOLDER HEREOF, AND EACH OWNER OF A BENEFICIAL
INTEREST HEREIN BY PURCHASING THIS SECURITY, AGREES FOR THE BENEFIT
OF FIRSTENERGY SOLUTIONS CORP. (THE “COMPANY”) THAT
THIS SECURITY MAY NOT BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED OTHER THAN (A)(1) TO THE COMPANY, (2) IN A
TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY
RULE 144 UNDER THE SECURITIES ACT (“RULE 144”),
(3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT
TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO
A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A PURCHASING FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER
TO WHOM NOTICE
IS GIVEN THAT THE RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY), (4) IN AN OFFSHORE TRANSACTION TO A NON-U.S. PERSON
IN ACCORDANCE WITH RULE 903 OR 904 OR REGULATION S UNDER THE
SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE TRANSFEROR
ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY),
(5) IN ACCORDANCE WITH ANOTHER APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN
OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY), OR (6) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
(B) IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES
LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY
PURCHASING THIS SECURITY, REPRESENTS AND AGREES FOR THE BENEFIT OF
THE COMPANY THAT IT WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED HEREBY OF THE
RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO
REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION
PROVIDED BY RULE 144 FOR RESALE OF THE SECURITY EVIDENCED
HEREBY.
THIS SECURITY MAY
NOT BE OFFERED OR SOLD TO A U.S. PERSON OR FOR THE ACCOUNT OR
BENEFIT OF A U.S. PERSON WITHIN THE MEANING OF RULE 902(k) UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) (OTHER THAN A DISTRIBUTOR, AS SUCH TERM IS DEFINED
UNDER RULE 902(d) UNDER THE SECURITIES ACT).
NEITHER THIS
SECURITY NOR ANY BENEFICIAL INTEREST HEREIN HAS BEEN REGISTERED
UNDER THE SECURITIES ACT. EACH HOLDER HEREOF, AND EACH OWNER OF A
BENEFICIAL INTEREST HEREIN BY PURCHASING THIS SECURITY, AGREES FOR
THE BENEFIT OF FIRSTENERGY SOLUTIONS CORP. (THE
“COMPANY”) THAT THIS SECURITY MAY NOT BE REOFFERED,
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (A)(1) TO THE
COMPANY, (2) IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
(“RULE 144”), (3) IN AN OFFSHORE TRANSACTION TO A
NON-U.S. PERSON IN ACCORDANCE WITH RULE 903 OR 904 OR REGULATION S
UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY), (4) IN ACCORDANCE WITH ANOTHER APPLICABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED
UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY), OR
(5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND (B) IN EACH CASE IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THE
HOLDER HEREOF, BY PURCHASING THIS SECURITY, REPRESENTS AND AGREES
FOR THE BENEFIT OF THE COMPANY THAT IT WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY
EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE
(A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE
AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF
THE SECURITY EVIDENCED HEREBY.
1
Capitalized
terms used herein shall have the meanings assigned to them in the
Indenture referred to below unless otherwise indicated. The
Securities are general obligations of the Company as described in
the Indenture. This Senior Note is entitled to the benefits of the
FGCO Guaranty and the NGC Guaranty on the terms set forth in the
Indenture.
1.
Interest . FIRSTENERGY SOLUTIONS CORP., an Ohio corporation
(the “ Company ”) promises to pay
interest from the Original Issue Date specified above or from the
most recent Interest Payment Date to which Interest has been paid
or duly provided for, semi-annually in arrears on the Interest
Payment Dates specified above in each year, commencing on
February 15, 2010, and at Maturity, at the Interest Rate per
annum specified above, until the principal hereof is paid or made
available for payment. No interest shall accrue at Maturity, so
long as the principal amount of this Senior Note is paid at
Maturity. The interest so payable and punctually paid or duly
provided for on any such Interest Payment Date (except for interest
payable on the Stated Maturity specified above, or, if applicable,
upon redemption or acceleration) will, as provided in the Indenture
(as defined below), be paid to the Person in whose name this Senior
Note is registered at the close of business on the Regular Record
Date specified above (whether or not a Business Day) next preceding
such Interest Payment Date; and provided, that interest payable on
the Stated Maturity specified above or, if applicable, upon
redemption or acceleration, shall be payable to the Person to whom
principal shall be payable on such Maturity. Except as otherwise
provided in the Indenture, any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and shall be paid to the Person
in whose name this Senior Note is registered at the close of
business on a Special Record Date for the payment of such defaulted
interest to be fixed by the Trustee, notice whereof shall be given
to Holders not more than fifteen days or fewer than ten days prior
to such Special Record Date. Payment of principal of, interest and
premium, if any, on this Senior Note shall be payable pursuant to
Section 601 of the Indenture.
No
reference herein to the Indenture and no provision of this Senior
Note or of the Indenture shall alter or impair the obligation of
the Company, which is absolute and unconditional, to pay the
principal of and premium, if any, and interest, if any, on this
Senior Note at the times, place, and rate, in the coin or currency,
and in the manner, herein prescribed.
As
used herein, “Business Day” shall mean each day that is
not a day on which banking institutions or trust companies in the
Borough of Manhattan, the City and State of New York, or in the
city where the Global Corporate Trust Office of the Trustee is
located, are obligated or authorized by law or executive order to
close.
2.
Method of Payment . Payment of the principal of and premium,
if any, on this Senior Note and interest hereon at the Stated
Maturity shall be made upon presentation of this Senior Note at the
Global Corporate Trust Office of our designated agent, The Bank of
New York Mellon Trust Company, N.A., located at 1660 West 2nd
Street, Cleveland, Ohio, 44113, or at such other office or agency
as may be designated for such purpose by the Company from time to
time. Payment of interest, if any, on this Senior Note (other than
interest at the Stated Maturity) shall be made by check mailed to
the address of the Person entitled thereto as such address shall
appear in the Security Register, except that (a) if such
Person shall be a securities depositary, such payment may be made
by such other means in lieu of check as shall be agreed upon by the
Company, the Trustee or other Paying Agent and such Person and
(b) if such Person is a Holder of $10,000,000 or more in
aggregate principal amount of Senior Notes of this series such
payment may be in immediately available funds by wire transfer to
such account as may have been designated in writing by the Person
entitled thereto as set forth herein in time for the Paying Agent
to make such payments in accordance with its normal procedures. Any
such designation for wire transfer purposes shall be made by filing
the appropriate information with our designated agent, The Bank of
New York Mellon Trust Company, N.A., at its Global Corporate Trust
Office, located at 1660 West 2nd Street,
1
Cleveland,
Ohio, 44113, not less than fifteen calendar days prior to the
applicable payment date and, unless revoked by written notice to
the Trustee received on or prior to the Regular Record Date
immediately preceding the applicable Interest Payment Date, shall
remain in effect with respect to any further interest payments
(other than interest payments at Maturity) with respect to this
Senior Note payable to such Holder. Payment of the principal of and
premium, if any, and interest, if any, on this Senior Note, as
aforesaid, shall be made in such coin or currency of the United
States of America as at the time of payment shall be legal tender
for the payment of public and private debts.
If
any Interest Payment Date, any Redemption Date, or the Stated
Maturity shall not be a Business Day (as hereinafter defined),
payment of the amounts due on this Senior Note on such date may be
made on the next succeeding Business Day; and, if such payment is
made or duly provided for on such next succeeding Business Day, no
interest shall accrue on such amounts for the period from and after
such Interest Payment Date, Redemption Date, or Stated Maturity, as
the case may be, to such Business Day.
3.
Paying Agent and Security Registrar . Initially, The Bank of
New York Mellon Trust Company, N.A., the Trustee under the
Indenture, will act as Paying Agent and Security Registrar. The
Company may change any Paying Agent or Security Registrar without
notice to any Holder. The Company or any of its subsidiaries may
act in any such capacity; provided that if the Company or
such subsidiary is acting as Paying Agent, the Company or such
subsidiary shall segregate all funds held by it as Paying Agent and
hold them in a separate trust fund for the benefit of the
Holders.
4.
Registration of Transfer and Exchange . As provided in the
Indenture and subject to certain limitations therein set forth, the
transfer of this Senior Note is registrable in the Security
Register, upon surrender of this Senior Note for registration of
transfer at the office of our designated agent, The Bank of New
York Mellon Trust Company, N.A., located at 1660 West 2nd Street,
Cleveland, Ohio, 44113, or such other office or agency as may be
designated by the Company from time to time, duly endorsed by, or
accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Senior Notes of this series
of authorized denominations and of like tenor and aggregate
principal amount, will be issued to the designated transferee or
transferees.
The
Company shall not be required to execute and the Security Registrar
shall not be required to register the transfer of or exchange of
(a) Senior Notes of this series during a period of 15 days
immediately preceding the date notice is given identifying the
serial numbers of the Senior Notes of this series called for
redemption or (b) any Senior Note so selected for redemption
in whole or in part, except the unredeemed portion of any Senior
Note being redeemed in part.
No
service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in
connection therewith.
Prior
to due presentment of this Senior Note for registration of
transfer, the Company, the Trustee and any agent of the Company or
the Trustee may treat the Person in whose name this Senior Note is
registered as the absolute owner hereof for all purposes, whether
or not this Senior Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the
contrary.
5.
Indenture . This Senior Note is a global security in respect
of a duly authorized issue of 4.80% Senior Notes due 2015 (the
“2015 Notes,” which term includes any global note
representing such Senior Notes) of the Company, issued and issuable
in one or more series under the Indenture and First Supplemental
Indenture, both dated as of August 1, 2009 (such Indentures as
originally executed and
2
delivered and
as supplemented or amended from time to time thereafter, together
with any constituent instruments establishing the terms of
particular securities, being herein called the
“Indenture”), between the Company and The Bank of New
York Mellon Trust Company, N.A., under which The Bank of New York
Mellon Trust Company, N.A. is trustee (herein called the
“Trustee,” which term includes any successor trustee
under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of
the respective rights, limitations of rights, duties, and
immunities of the Company, the Trustee, and the Holders of the
Senior Notes thereunder and of the terms and conditions upon which
the Senior Notes are, and are to be, authenticated and delivered.
The acceptance of this Senior Note shall be deemed to constitute
the consent and agreement by the Holder hereof to all of the terms
and provisions of the Indenture. This Senior Note is one of the
series designated above.
This
Senior Note is redeemable, at any time in whole or from time to
time in part, at the Company’s option, on at least
30 days’, but not more than 60 days’, prior
notice mailed to the registered address of each holder of the
Senior Notes. The Redemption Price will be equal to the greater of:
(1) 100% of the principal amount of the Senior Notes to be
redeemed, and (2) as determined by the Independent Investment
Banker (as defined below), the sum of the present values of the
Remaining Scheduled Payments (as defined below) discounted to the
Redemption Date, on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months), at a rate equal to the sum of
the Adjusted Treasury Rate (as defined below) plus 35 basis points.
In each case, accrued and unpaid interest will be payable to the
Redemption Date.
“Adjusted
Treasury Rate” means, with respect to any Redemption
Date:
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the
yield, under the heading which represents the average for the
immediately preceding week, appearing in the most recently
published statistical release designated “H.15(519)” or
any successor publication which is published weekly by the Board of
Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities
adjusted to constant maturity under the caption “Treasury
Constant Maturities,” for the maturity corresponding to the
Comparable Treasury Issue (if no maturity is within three months
before or after the Remaining Life, yields for the two published
maturities most closely corresponding to the Comparable Treasury
Issue shall be determined and the Adjusted Treasury Rate shall be
interpolated or extrapolated from these yields on a straight line
basis, rounding to the nearest month); or
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if
the release (or any successor release) is not published during the
week preceding the calculation date or does not contain these
yields, the rate per annum equal to the semi-annual equivalent
yield to maturity of the Comparable Treasury Issue, calculated
using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable
Treasury Price for the Redemption Date. The Adjusted Treasury Rate
will be calculated on the third Business Day preceding the
Redemption Date.
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“Comparable
Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Senior Notes to be redeemed
that would be utilized, at the time of selection and in accordance
with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining
term of such securities (“Remaining Life”).
3
“Comparable
Treasury Price” means (1) the average of three Reference
Treasury Dealer Quotations for the Redemption Date, after excluding
the highest and lowest Reference Treasury Dealer Quotations, or
(2) if the Independent Investment Banker obtains fewer than
three Reference Treasury Dealer Quotations, the average of all such
quotations.
“Independent
Investment Banker” means one of the Reference Treasury
Dealers appointed by the Company.
“Reference
Treasury Dealer” means (i) each of Morgan Stanley &
Co. Incorporated, Barclays Capital Inc., Credit Suisse Securities
(USA) LLC and RBS Securities Inc. and their respective
successors; provided, however, that if any of the foregoing cease
to be a primary U.S. Government securities dealer in the United
States (a “Primary Treasury Dealer”), the Company shall
substitute therefor another Primary Treasury Dealer, and
(ii) any other Primary Treasury Dealer selected by the
Independent Investment Banker after consultation with the
Company.
“Reference
Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Independent Investment Banker, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each
case as a percentage of its principal amount) quoted in writing to
the Independent Investment Banker at 5:00 p.m., New York City time,
on the third Business Day preceding the Redemption Date.
“Remaining
Scheduled Payments” means the remaining scheduled payments of
principal of and interest on this Senior Note that would be due
after the related Redemption Date but for such redemption. If such
Redemption Date is not an Interest Payment Date with respect to
this Senior Note, the amount of the next succeeding scheduled
interest payment on this Senior Note will be reduced by the amount
of interest accrued on this Senior Note to such Redemption
Date.
On
and after the Redemption Date, interest will cease to accrue on
this Senior Note or any portion of the Senior Note called for
redemption (unless the Company defaults in the payment of the
Redemption Price and accrued interest. On or before the Redemption
Date, the Company will deposit with the Paying Agent money
sufficient to pay the Redemption Price of and accrued interest on
the Senior Note to be redeemed on such date. If less than all the
Senior Notes of any series are to be redeemed, the Senior Notes to
be redeemed shall be selected by the Trustee by such method as the
Trustee shall deem fair and appropriate.
7.
Mandatory Redemption .
The
Company shall not be required to make mandatory redemption or
sinking fund payments with respect to the Senior Notes.
8.
Notice of Redemption . Notice of redemption shall be given
by mail to Holders of Senior Notes, not less than 30 days nor
more than 60 days prior to the date fixed for redemption, all
as provided in the Indenture. As provided in the Indenture, notice
of redemption at the election of the Company as aforesaid may state
that such redemption shall be conditional upon the receipt by the
Paying Agent or Agents of money sufficient to pay the principal of
and premium, if any, and interest, if any, on this Senior Note on
or prior to the date fixed for such redemption; a notice of
redemption so conditioned shall be of no force or effect if such
money is not so received and, in such event, the Company shall not
be required to redeem this Senior Note.
4
In
the event of redemption of this Senior Note in part only, a new
Senior Note or Senior Notes of this series, of like tenor,
representing the unredeemed portion hereof shall be issued in the
name of the Holder hereof upon the cancellation hereof.
9.
Repurchase at Option of Holder . If a Change of Control
Triggering Event occurs, each Holder of Senior Notes will have the
right to require the Company to repurchase all or any part (equal
to $2,000 or an integral multiple of $1,000 in excess thereof) of
that Holder’s Notes pursuant to an offer (a “Change of
Control Offer”) on the terms set forth in the Indenture. In
the Change of Control Offer, the Company shall offer payment (a
“Change of Control Purchase Price”) in cash equal to
101% of the aggregate principal amount of Senior Notes repurchased
plus accrued and unpaid interest and Additional Interest, if any,
thereon, to the date of repurchase (the “Change of Control
Payment Date,” which date will be no earlier than the date of
such Change of Control). No later than 30 days following any
Change of Control Triggering Event, the Company shall mail a notice
to each Holder stating that a Change of Control Triggering Event
has occurred and offering to repurchase Senior Notes on the Change
of Control Payment Date specified in such notice, which date will
be no earlier than 30 days and no later than 60 days from
the date such notice is mailed, pursuant to the procedures required
by the Indenture and described in such notice. Holders of Senior
Notes electing to have Senior Notes purchased pursuant to a Change
of Control Offer will be required to surrender their Senior Notes,
with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Senior Note completed, to the
Paying Agent at the address specified in the notice, or transfer
their Senior Notes to the Paying Agent by book-entry transfer
pursuant to the applicable procedures of the Paying Agent, prior to
the close of business on the third Business Day prior to the Change
of Control Payment Date.
10.
Restrictions on Transfer . Each Holder shall be deemed to
understand that the offer and sale of this Senior Note has not been
registered under the Securities Act and that this Senior Note may
not be offered or sold except as permitted in the following
sentence. Each Holder shall be deemed to agree, on its own behalf
and on behalf of any accounts for which it is acting as hereinafter
stated, that if such Holder sells any Senior Notes, such Holder
will do so only (A) to the Company, (B) pursuant to the
exemption from registration provided by Rule 144 under the
Securities Act (if available), (C) so long as such Senior Note
is eligible for resale pursuant to Rule 144A under the
Securities Act (“Rule 144A”) to a person whom it
reasonably believes is a “qualified institutional
buyer” within the meaning of Rule 144A that purchases
for its own account or for the account of a qualified institutional
buyer to whom notice is given that the resale, pledge or transfer
is being made in reliance on Rule 14
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