GAS PURCHASE AGREEMENT DATED MARCH 31, 1999 BETWEEN NORTHEAST OHIO GAS MARKETING, INC., AND ATLAS ENERGY GROUP, INC., ATLAS RESOURCES, INC., AND RESOURCE ENERGY, INC.
EXHIBIT 10.2
GAS PURCHASE AGREEMENT DATED MARCH 31, 0000
XXXXXXX XXXXXXXXX XXXX GAS MARKETING, INC., AND ATLAS
ENERGY GROUP, INC., ATLAS RESOURCES, INC., AND RESOURCE ENERGY, INC.
XXXXXXX XXXXXXXXX XXXX GAS MARKETING, INC., AND ATLAS
ENERGY GROUP, INC., ATLAS RESOURCES, INC., AND RESOURCE ENERGY, INC.
This Agreement made and entered into as of this 31st day of March, 1999, by and between Northeast
Ohio Gas Marketing, Inc., an Ohio corporation (“Buyer”) of P. O. Xxx 000, Xxxxxxxxx, Xxxx
00000-0000 and Atlas Energy Group, Inc., an Ohio corporation, Atlas Resources, Inc., a Pennsylvania
corporation and Resource Energy, Inc., a Delaware corporation (collectively “Seller” of 000 Xxxxxx
Xxxx, X.X. Xxx 000, Xxxxxxxxxx, Xxxxxxxxxxxx 00000.
RECITALS
WHEREAS, Buyer utilizes volumes of natural gas, hereinafter referred to as “gas”, for its customers
situated in Ohio and Pennsylvania; and
WHEREAS, Seller is in the business of developing and producing a supply of gas from gas and/or on
xxxxx situated in Ohio and Pennsylvania; and
WHEREAS, Seller is the owner of such gas or is the authorized agent for the owner or owners of such
gas and therefore has the authority to contract for the sale of such gas; and
WHEREAS, Seller desires to sell and to agree to sell for itself and those owners for which it is
the authorized agent, all of the gas produced from the xxxxx, and Buyer desires to purchase such
gas; and
WHEREAS, as of the date hereof, FirstEnergy Trading and Power Marketing, Inc., an affiliate of
Buyer, and AIC, Inc., an affiliate of Seller, are entering into an agreement (the “Stock Purchase
Agreement’) relating to the purchase of all of the common stock of Atlas Gas Marketing, Inc.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the
parties do hereby agree as follows:
1. AGREEMENT: Subject to the terms of this Agreement, Seller does hereby agree to sell to Buyer on
a firm basis and Buyer does hereby agree to purchase on a firm basis, during the continuing term of
this Agreement, those quantities of natural gas described in. this Agreement.
2. TERM OF AGREEMENT: The term of this Agreement shall be effective for a primary term of ten (10)
years commencing March 31, 1999 and terminating March 31, 2009. This Agreement shall automatically
renew for successive annual terms unless either party, within one hundred twenty (120) days prior
to the end of the primary term or any successive annual term, notifies the other party, in writing,
of its intent to terminate this Agreement at the end of such term. The primary term and successive
annual terms shall be considered the “term” of this Agreement. The price for gas for the first one
(1) or two (2) years of the term
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of this Agreement shall be set forth on Schedule I attached hereto. The price for gas for
subsequent annual periods shall be agreed to between Buyer and Seller by November 30th of each
subsequent year for the next succeeding annual period, which period shall commence on April 1st.
Should the Buyer and Seller be unable to reach agreement as to the purchase price at any Point of
Delivery, after the initial one or two year term, as applicable, or for any subsequent annual
period, the Seller may solicit offers to purchase such gas from other third parties. In the event
Seller should receive a bona fide offer to purchase all of Seller’s gas, which is subject to this
Agreement, at a specific Point of Delivery, it shall give notice (the “Notice”) of the Point of
Delivery, the name of prospective purchaser, the term of the proposed agreement and the purchase
price to Buyer. If Buyer refuses to match such offer within five (5) business days of receipt of
the Notice from Seller, then Seller shall be free to sell such gas to a party other than Buyer on
the terms set forth in the Notice. Buyer’s future rights to purchase such gas shall be restored at
the completion of the term set forth in the Notice, subject to the provisions of this Paragraph.
3. DELIVERY POINT AND TRANSPORTATION: Subject to further provisions of this Agreement, and during
the term hereof, any gas purchased hereunder shall be sold and delivered by Seller to Buyer at the
interstate pipeline or local distribution company facilities of Tennessee Gas Pipeline Company,
East Ohio Gas Company, National Fuel Gas Distribution, National Fuel Gas Supply, Peoples Natural
Gas Company and Columbia Gas Transmission Corp., hereinafter be referred to as the “Points of
Delivery”. Additional Points of Delivery may be added by mutual agreement of Buyer and Seller.
Title to the gas delivered hereunder shall vest to Buyer upon delivery by Seller to the Points of
Delivery. Seller shall be responsible and pay for all gas transportation costs and retainage
imposed by upstream pipelines to the Points of Delivery. As between the parties hereto, Seller
shall be responsible for any damage or injury caused by the gas until the same shall have been
delivered to the Points of Delivery after which delivery Buyer shall be in exclusive control and
possession thereof and responsible for any damage or injury caused thereby.
4. QUANTITY: Seller shall exclusively make available to Buyer and Buyer agrees to purchase from
Seller, during the term of this Agreement a quantity equal to 100% of the current and future
production into the Points of Delivery. Except as otherwise provided in this Section, Seller shall
deliver all gas it develops and produces into the Points of Delivery. Unless agreed to by Buyer
Seller shall not sell any gas to any other party. It is currently estimated that Atlas Energy
Group, Inc. and Atlas Resources, Inc. will collectively deliver approximately 27,000 Mcf per day
and Resource Energy. Inc. will deliver approximately 7,000 Mcf per day at the Points of Delivery.
Buyer and Seller agree to mutually cooperate and regularly meet to establish production schedules
of gas into the Points of Delivery.
Seller shall nominate, by the 25th calendar day of the preceding month, the daily volumes to be
delivered during the following month to the Points of Delivery. Seller’s daily deliveries shall be
no greater than one hundred and ten percent (110%) or no less than ninety percent (90%) of Seller’s
daily nominated volume as long as Seller’s deliveries at each Point of Delivery are at least 500
Mcf per day, with the exception of the Wheatland Dehydration Meter, for which the minimum volume is
300 Mcf per day. If Seller’s daily volume delivery is less than ninety percent (90%) of Seller’s
daily nominated volume, then Seller’s shall pay Buyer one hundred and two percent (102%) of the
Buyer’s replacement
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cost, less the price set forth on Schedule I, for the volume of gas which is the difference between
Seller’s daily volume delivery and ninety percent (90%) of Seller’s daily nominated volume. If
Seller’s daily volume delivery is more than one hundred and ten percent (110%) of Seller’s daily
nominated volume, then, regardless of other pricing provisions contained in this Agreement, Buyer
shall pay Seller ninety eight percent (98%) of the daily market price of each Point of Delivery, as
set forth on Schedule I, for the volume of gas which is the difference between Seller’s daily
volume delivery and one hundred and ten percent (110%) of Seller’s daily nominated volume.
Notwithstanding the first paragraph of this Section 4, it is understood and agreed to by the
parties that Seller shall continue to supply gas to its three (3) direct delivery customers,
Wheatland Tube Company, CSC Industries and Xxxxxx Consolidated for the life of those agreements,
including any extensions or renewals. Buyer and Seller agree that Buyer will provide all billing
services for the above three (3) customers. Buyer agrees that it will not utilize Seller’s local
production, or any other source of supply, as source of sales to the above three (3) customers of
Seller to the extent Buyer’s offer would supplant or in any manner displace the existing amount of
Seller’s direct delivery agreements throughout the term of Seller’s agreements with the above three
(3) customers, including any extensions or renewals. Seller currently delivers 2,600 Mcf per day to
the Wheatland Tube Company, 3,400 Mcf per day to CSC Industries and 325 Mcf per day to Xxxxxx
Consolidated. Seller agrees that Buyer may sell any amount, in excess of Seller’s current volumes
(so long as Seller continues to have a contact with the above three (3) customers) to such
customers. Buyer shall not be restricted in selling to any of the above three
(3) customers if Seller no longer has a contract with such customer.
Seller’s commitment to deliver all of the gas it produces to Buyer is subject to the right of
investors, including limited partnerships where Seller is acting as the General Partner, in xxxxx
operated by Seller, to take their gas in kind. In the event a party wishes to take its gas in kind,
Seller shall promptly notify Buyer. Seller further agrees to indemnify Buyer for full losses
attributable to gas which has been taken in kind by investors in xxxxx operated by Seller, to the
extent Buyer has incurred a loss on such gas because of a prior commitment by Buyer.
5. PURCHASE PRICE: The price to be paid by Buyer to Seller for gas delivered to Buyer at the
Point(s) of Delivery shall be as set forth on Schedule I attached hereto.
6. BILLING AND PAYMENT: Invoices shall be rendered to Buyer by the 14th calendar day of the month
for gas delivered the preceding monthly period and payment shall be made monthly to Seller not
later than the 28th calendar day of the month. Payment shall be made at the following address, or
other address that may be designated by Seller from time to time: 000 Xxxxxx Xxxx, X.X. Xxx 000,
Xxxxxxxxxx, Xxxxxxxxxxxx 00000. Invoices shall be delivered to Buyer at: X.X. Xxx 000, Xxxxxxxxx,
Xxxx 00000-0000. The quantities invoiced by Seller will be based on the quantities delivered by
Seller at the Point(s) of Delivery. In the event the actual quantity delivered to the Point(s) of
Delivery is unavailable, the estimated volumes of gas tendered for delivery by Seller to the
Point(s) of Delivery shall be invoiced to Buyer. Any appropriate adjustment shall be made in the
following billing period. Payment not received by the twenty-eighth (28th) calendar day of the
month shall bear interest at PNC Bank, NA’s then current prime lending rate minus two percent (2%).
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7. QUALITY AND MEASUREMENT: Seller warrants that gas delivered under this Agreement shall meet the
quality and measurement standards established by interstate pipeline and/or local distribution
companies receiving gas from Seller for Buyer’s account at the Point(s) of Delivery.
8. WARRANTY OF TITLE AND TAXES. Seller warrants title to all gas delivered by it and warrants that
such gas is free from all liens and adverse claims. Seller shall indemnify and save Buyer harmless
against all suits, debts, damages, costs and expenses arising from adverse claims to the gas
delivered by it or taxes, payments or other charges thereon applicable before such gas is delivered
to the Point(s) of Delivery. All present and future production, severance, gross proceeds or
assessments of a similar nature imposed or levied by any state or other governmental agency or duly
constituted authority upon the gas sold and delivered hereunder and the components thereof and the
royalty, overriding royalty, production payment and other lease burden owners, as the case may be,
shall be borne and paid by Seller. In the event Buyer is required to pay any of such taxes and
assessments, Buyer may deduct same from the payments to be made by it hereunder and may make a
reasonable charge for such service. Buyer shall be responsible for all taxes, liens and adverse
claims which may be imposed on such gas after the Point(s) of Delivery.
9. REGULATORY BODIES. This Agreement and Buyer’s and Seller’s obligation hereunder shall be subject
to all valid applicable State and Federal laws, and orders, directives, rules and regulations of
any government body or official having jurisdiction hereunder.
10. NOTICES: Whenever under the terms of this Agreement, any notice is required or permitted to be
given by one party to the other, it shall be given in writing and shall be deemed to have been
sufficiently given for all purposes hereof if sent by telegram or mailed, postage prepaid, to the
parties at the address set forth below:
Seller: | Atlas Energy Group. Inc. | |||
Atlas Resources, Inc. | ||||
Resource Energy, Inc. | ||||
Attn: Contract Administrator | ||||
000 Xxxxxx Xxxx X.X. Xxx 000 | ||||
Xxxxxxxxxx. Xxxxxxxxxxxx 00000 | ||||
Buyer: | Northeast Ohio Gas Marketing. Inc. | |||
Attn: Contract Administrator | ||||
P. O. Xxx 000 | ||||
Xxxxxxxxx, Xxxx 00000-0000 |
11. GOVERNING LAW: The interpretation and performance of this Agreement shall be in accordance
with the laws of the State of Ohio.
12. FORCE MAJEURE: If either Buyer or Seller is rendered unable, wholly or in part, by force
majeure to perform its obligations under this Agreement, other than the obligation to make payments
then or thereafter due, it is agreed that performance of the respective obligations of the parties
hereto to deliver
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and receive gas, so far as they are affected by such force majeure, shall be suspended from the
inception of any such inability until it is corrected, but for no longer period. The party claiming
such inability shall give notice thereof to the other party as soon as practicable after the
occurrence of the force majeure. If such notice is first given by telephone communications, it
shall be confirmed promptly in writing giving full particulars. The party claiming such inability
shall promptly correct such inability to the extent it may be corrected through the exercise of
reasonable diligence. Force majeure as used herein shall mean acts of God, vandalism, war, civil
disturbance, rebellion, blockade, strike or other labor dispute, lightning, fire, flood, explosion,
hurricane, freezing of xxxxx or pipelines which result in the failure of third party pipelines to
transport gas hereunder, permanent plant closing of either the Carbide Graphite plant or the
Duferco Xxxxxxx Corporation plant (during the term of the existing agreement with such party,
excluding any extensions or renewals) and other causes not within the control of the party claiming
a force majeure situation.
13. ASSIGNMENT: Neither party may assign any of its rights under this Agreement without the prior
written consent of the other party, which will not be unnecessarily withheld, except that Buyer may
assign any of its rights under this Agreement to any affiliate of Buyer, provided that Buyer
remains responsible for all financial obligations hereunder. Subject to the preceding sentence,
this Agreement will apply to, be binding in all respects upon, and inure to the benefit of the
successors and permitted assigns of the parties.
14. SURVIVAL OBLIGATIONS: The obligation of Buyer to make payment hereunder shall survive the
termination or cancellation of this Agreement. The obligations of Seller to indemnify Buyer
pursuant to the provisions set forth under Section 8 shall survive the termination or cancellation
of this Agreement. If any provision in this Agreement is determined to be invalid, void, or made
unenforceable by any court having jurisdiction, then such determination shall not invalidate, void
or make unenforceable any other provision, agreement or covenant in this Agreement. No waiver of
any breach of this Agreement shall be held to be a waiver of any other or subsequent breach. All
remedies afforded in this Agreement shall be taken and construed as cumulative, that is, in
addition to every other remedy provided therein or by law.
15. COMPLETE AGREEMENT: This Agreement, and the Stock Purchase Agreement, represent the complete
and entire understanding between the parties and their affiliates respecting the subject matter of
this transaction. The parties hereto declare that there are no promises, representations,
conditions, warranties or other agreements, express or implied, oral or written, made or relied
upon by either party, except those contained herein or in the Stock Purchase Agreement.
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IN WITNESS WHEREOF, the parties. or their authorized agent, hereto have caused this Agreement to be
executed on this the 31st day of March, 1999.
Witnesses: | Seller: Atlas Energy Group, Inc. | |||||||
By: | ||||||||
Title: | ||||||||
Witnesses: | Seller: Atlas Resources, Inc. | |||||||
By: | ||||||||
Title: | ||||||||
Witnesses: | Seller: Resource Energy, Inc. | |||||||
By: | ||||||||
Title: | ||||||||
Witnesses: | Buyer: Northeast Ohio Gas Marketing, Inc. | |||||||
By: | ||||||||
Title: | ||||||||
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AMENDMENT TO GAS PURCHASE AGREEMENT
THIS AMENDMENT, dated as of February 1, 2001, by and between Atlas Resources, Inc., a Pennsylvania
corporation, Atlas Energy Group, Inc., an Ohio corporation, and Resource Energy, Inc., a Delaware
corporation (hereinafter collectively referred to as “Seller”), and FirstEnergy Services Corp., an
assign of Northeast Ohio Gas Marketing, Inc. (“Buyer”).
WHEREAS, Buyer and Seller are parties to an Agreement dated March 31, 1999 (the “Agreement”),
concerning the sale and purchase of natural gas; and
WHEREAS, Viking Resources Corporation (“Viking”), is in the business of developing and producing
natural gas from xxxxx in Ohio and Pennsylvania, and recently became an affiliate of Seller; and
WHEREAS, Viking is the owner of such natural gas or is the authorized agent for the owner of such
natural gas and therefore has the authority to contract for the sale of such natural gas; and
WHEREAS, as an inducement for Buyer to establish a Guaranty to Seller from Buyer’s parent,
FirstEnergy Corp., Viking has offered to sell for itself and those owners for which it is the
authorized agent all of the gas produced at the meters identified on Exhibit A attached hereto, and
Buyer offered to purchase such natural gas from Viking;
NOW, THEREFORE, in consideration of the mutual covenants herein, and other good and valuable
consideration, the Seller and Buyer do hereby agree to amend the Agreement to include the purchase
and sale of Viking’s natural gas production at the meters identified on Exhibit A.
This Amendment shall become effective upon execution by the parties.
All other terms and conditions of the Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF, the parties have hereunto set their corporate signatures by their duly
authorized officers as of the day and year first above written.
WITNESS: | SELLERS: | ATLAS RESOURCES, INC. | ||||||
ATLAS ENERGY GROUP, INC. | ||||||||
RESOURCE ENERGY, INC. | ||||||||
VIKING RESOURCES CORPORATION |
||||||||
By: | ||||||||
WITNESS: | BUYER: | FIRSTENERGY SERVICES CORP. | ||||||
By:
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SECOND AMENDMENT TO BASE GAS PURCHASE AGREEMENT
Dated July 16, 2003
Dated July 16, 2003
Between FirstEnergy Solutions Corp. and Atlas Energy Group, Inc., Atlas Resources, Inc. and
Resource Energy, Inc.
The criteria for the Amendment are as follows:
WHEREAS, Atlas Energy Group, Inc., Atlas Resources, Inc. and Resource Energy, Inc. (Seller) and
FirstEnergy Solutions Corp. (Buyer) have entered into a Gas Purchase Agreement dated March 31, 1999
(Agreement), and whereas the parties desire to implement certain amendments to the Base Agreement
as set forth herein;
WHEREAS, Seller represents that it is the owner of the Gas or is the authorized agent for the owner
or owners of the Gas and therefore has the authority to contract for the delivery and sale of the
Gas, and
WHEREAS, Buyer and Seller are parties to an Amendment to the Agreement dated February 1, 2001,
concerning the purchase and sale of Viking Resource Corporation’s natural gas production;
Now, therefore, in consideration of the mutual covenants and promises set forth below, the parties
hereto, intending to be legally bound, hereby covenant, promise and agree as follows:
1. In exchange for a corporate guaranty or other credit assurance reasonably acceptable in form and
substance to the Buyer, Seller may, at any time prior to Noon on the day of the applicable NYMEX
Contract closing day, notify an authorized representative of Buyer by telephone to execute
financial hedging instruments at a mutually agreed price (“Hedge Price”) then-currently traded for
that month (“Hedge Month”) on a specified volume (“Hedge Volume”). If Buyer agrees to exercises the
Hedge described in the previous sentence, Buyer will send a written notice to the Seller to confirm
the Hedge Price and Hedge Volume for the respective Hedge Month. Thereafter, the Hedge Price shall
serve in lieu of any Floating Contract Price specified in the Transaction Confirmation for Gas
delivered in the Hedge Month up to the Contract Hedge Volume. Contract Hedge Volume shall be
defined as any portion (in 10,000 Dth increments) of the volume that the Seller is obligated to
deliver pursuant to a specified Transaction Confirmation. If Seller delivers less than One Hundred
(100) Percent of the Contract Hedge Volume for a given Hedge Month and the Contract Hedge Price is
lower than the NYMEX Contract Settlement Price (as determined on the last day of trading allowed by
NYMEX for the respective contract month), Seller shall be assessed a Market Differential Cost equal
to (the NYMEX Contract Settlement Price minus Contract Hedge Price), multiplied by the undelivered
Contract Hedge Volume. The Market Differential Cost shall apply to the underproduction of Seller’s
Contract Hedge Volume, but shall not apply to the underproduction of Seller’s daily nominated gas
volumes. In the event of Seller’s underproduction of daily nominated gas volumes, Seller shall be
assessed the replacement costs set forth in paragraph 4 of the Agreement
2. Seller shall deposit with Buyer a commercial letter of credit in the aggregate amount of
$1,000,000, which letter of credit shall be in the form attached hereto as Exhibit A and issued by
a commercial bank acceptable to
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Buyer, payable on presentation by Buyer to such bank of one or more sight drafts in form acceptable
to Buyer. The letter of credit to be deposited and maintained with Buyer shall be held by Buyer as
security for the full faith and performance and observance by Seller of each and every term,
covenant, and condition of the Agreement as amended.
Concurrent with the delivery of the above referenced letter of credit by the Seller to the Buyer,
Buyer shall deliver to Seller a parental corporate guaranty reasonably acceptable in form and
substance to the Seller, guaranteeing the payment in the amount fifteen million dollars
($15,000,000) in the event of non-payment by Buyer of any amounts due and owing Seller under the
Agreement and/or the Second Amendment to the Agreement. The term of Buyer’s parental guaranty shall
be for the identical term of the letter of credit Seller deposits with Buyer. This guaranty shall
supercede any existing parental guaranty that Buyer has delivered to Seller.
3. This Letter of Credit may be drawn upon if an Event of Default occurs. Event of Default shall
mean the Applicant (the “Defaulting Party”) or its guarantor fails to perform any obligation under
the Gas Purchase Agreement dated March 31, 1999, including Seller’s failure to pay Buyer, within
forty five
(45) days upon receipt of an invoice, for any assessed Market Differential Costs for Seller’s
underproduction of natural gas resulting in a net negative impact to Buyer.
IN WITNESS WHEREOF, the parties have hereunto set their signatures by their officers hereunto duly
authorized the day and year first above written.
FirstEnergy Solutions Corp. | Atlas Energy Group, Inc. | |||||||
Atlas Resources, Inc. | ||||||||
Resource Energy, Inc. | ||||||||
By: | ||||||||
Dated: | Dated: July 16, 2003 |
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Exhibit A
(Proposed form of Letter of Credit)
(Proposed form of Letter of Credit)
Beneficiary Applicant FirstEnergy Solutions Corp.
000 Xxxxx Xxxx
Xxxxx, XX 00000
Attn:
Xxxxx, XX 00000
Attn:
1. We hereby issue our irrevocable Letter of Credit (this “Letter of Credit”) No. in
your favor for $ U.S. Dollars available for payment at sight in immediately
available funds.
This Letter of Credit is issued at the request of the Applicant, and we hereby irrevocably
authorize you to draw on us, in accordance with the terms and conditions hereof, up to the maximum
amount of this Letter of Credit. This Letter of Credit may be drawn upon an Event of Default under
the Second Amendment to Base Gas Purchase Agreement dated July ___, 2003 between FirstEnergy
Solutions Corp. and Atlas Energy Group, Inc., Atlas Resources, Inc. and Resource Energy, Inc.
2. A partial or full drawing hereunder may be made by you on any Business Day prior to the
expiration of this Letter of Credit by delivering, by no later than 11:00 A.M. (New York, NY) on
such Business Day to Bank , (address), (i) a notice
executed by you in the form of Annex 1 hereto, appropriately completed and duly signed by your
Authorized Officer and (ii) your draft in the form of Annex 2 hereto, appropriately completed and
duly signed by your Authorized Officer. Authorized Officer shall mean President, Treasurer, any
Vice President or any Assistant Treasurer.
3. This Letter of Credit expires at the counters of on (which date as
may be extended in the manner provided herein is referred to as the “termination date”). The
termination date shall be deemed automatically extended without amendments for one year from the
initial termination date and thereafter for one year from each anniversary of the initial
termination date unless at least ninety (90) days prior to the then applicable termination date we
notify you in writing by certified mail return receipt requested that we are not going to extend
the termination date. During said ninety (90) day period, this Letter of Credit shall remain in
full force and effect.
4. We hereby agree with the beneficiary drawers, endorsers, and bona fide holders of drafts and
documents drawn under and in compliance with the terms and conditions of this Letter of Credit that
same will be duly honored by us upon presentation to ourselves as specified, by payment in
accordance with the beneficiary’s payment instructions. If requested by the beneficiary, payment
under this Letter of Credit will be made by wire transfer of immediately available funds to the
beneficiary’s account at any financial institution located in the Continental United States. All
payments under this Letter of Credit will be made in our own funds.
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5. This Letter of Credit is subject to the ICC Uniform Customs and Practice for Documentary Credits
(1993 Revision) International Chamber of Commerce Publication Number 500, or any revisions thereto.
6. We will send via facsimile a copy of this Letter of Credit to the beneficiary at the following
facsimile number: , attention:
, and we will send via overnight courier the original of this Letter of Credit to
the beneficiary at the above address, attention of:
.
7. All bank charges are for the account of .
8. This letter of credit is transferable and assignable in whole or in part by beneficiary.
(Signed)
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Annex 1 to Letter of Credit
DRAWING UNDER LETTER OF CREDIT NO.
, 200__
To: (Bank)
(Address)
Attention: Standby Letter of Credit Unit
Ladies and Gentlemen:
The undersigned is making a drawing under the above-referenced Letter of Credit in the amount
specified below and herby certifies to you as follows:
1. Capitalized terms used herein are defined herein shall have the meanings ascribed thereto in the
Letter of Credit.
2. Pursuant to Paragraph 2 of the Letter of Credit No. , dated , 200___,
the undersigned is entitled to make a drawing under the Letter of Credit in the amount of
$ , inasmuch as there is an Event of Default under the Second Amendment to Base Gas
Purchase Agreement dated July ___, 2003 between the Applicant and us.
3. We acknowledge that, upon your honoring the drawing herein requested, the amount of the Letter
of Credit available for drawing shall be automatically decreased by an amount equal to this
drawing.
Very truly yours,
FirstEnergy Solutions Corp. | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
Date: |
Cc: - (Applicant)
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Annex 2 to Letter of Credit
DRAWING UNDER LETTER OF CREDIT NO.
, 200__
ON [Business Day immediately succeeding date of presentation]
PAY TO: FirstEnergy Solutions Corp.
Attn:
$
For credit in the amount of $ .
FOR VALUE RECEIVED AND CHARGE TO ACCOUNT OF LETTER OF CREDIT NO. OF
(Bank)
(Address)
FirstEnergy Solutions Corp. | ||||||
By: | ||||||
Name: | ||||||
Title: |
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