EFIH 1st Lien Indenture 2020 Notes

4/30/2014 Indenture, dated as of August 17, 2010

http://www.sec.gov/Archives/edgar/data/1023291/000119312510191917/dex41.htm 1/147

EX-4.1 2 dex41.htm INDENTURE, DATED AS OF AUGUST 17, 2010Exhibit4.1

ENERGYFUTUREINTERMEDIATEHOLDINGCOMPANYLLC

AND

EFIHFINANCEINC.

10.000%SENIORSECUREDNOTESDUE2020

INDENTURE

DATEDASOFAUGUST17,2010

THEBANKOFNEWYORKMELLONTRUST

COMPANY,N.A.

TRUSTEE



CROSSREFERENCETABLE* TrustIndentureActSection IndentureSection310(a)(1) 7.10(a)(2) 7.10(a)(3) N.A.(a)(4) N.A.(a)(5) 7.10(b) 7.10(c) N.A.311(a) 7.11(b) 7.11(c) N.A.312(a) 2.05(b) 13.03(c) 13.03313(a) 7.0613.02(b)(1) 10.06(b)(2) 7.067.0710.06(c) 7.0613.02(d) 7.06314(a)

4.034.0413.0213.05

(b) 10.05(c)(1) 7.0213.04(c)(2) 7.0213.04(c)(3) N.A.(d) 10.06(e) 13.05(f) N.A.315(a) 7.01(b) 7.0513.02(c) 7.01(d) 7.01(e) 6.14316(a)(lastsentence) 2.09(a)(1)(A) 6.05(a)(1)(B) 6.04(a)(2) N.A.(b) 6.07(c) 9.041.052.12317(a)(1) 6.08(a)(2) 6.12(b) 2.04318(a) 13.01(b) N.A.(c) 13.01

N.A.meansnotapplicable. * ThisCrossReferenceTableisnotpartoftheIndenture.



TABLEOFCONTENTS PageARTICLE1DEFINITIONSANDINCORPORATIONBYREFERENCE 1

Section1.01 Definitions 1Section1.02 OtherDefinitions 43Section1.03 IncorporationbyReferenceofTrustIndentureAct 44Section1.04 RulesofConstruction 44Section1.05 ActsofHolders 45

ARTICLE2THENOTES 46

Section2.01 FormandDatingTerms 46Section2.02 ExecutionandAuthentication 47Section2.03 RegistrarandPayingAgent 48Section2.04 PayingAgenttoHoldMoneyinTrust 48Section2.05 HolderLists 48Section2.06 TransferandExchange 48Section2.07 ReplacementNotes 51Section2.08 OutstandingNotes 51Section2.09 TreasuryNotes 51Section2.10 TemporaryNotes 52Section2.11 Cancellation 52Section2.12 DefaultedCashInterest 52Section2.13 CUSIPandISINNumbers 53Section2.14 Listing 53

ARTICLE3REDEMPTION 53

Section3.01 NoticestoTrustee 53Section3.02 SelectionofNotestoBeRedeemedorPurchased 53Section3.03 NoticeofRedemption 54Section3.04 EffectofNoticeofRedemption 54Section3.05 DepositofRedemptionorPurchasePrice 55Section3.06 NotesRedeemedorPurchasedinPart 55Section3.07 OptionalRedemption 55Section3.08 MandatoryRedemption 56Section3.09 OfferstoRepurchasebyApplicationofExcessProceeds 56

ARTICLE4COVENANTS 58

Section4.01 PaymentofNotes 58Section4.02 MaintenanceofOfficeorAgency 59Section4.03 ReportsandOtherInformation 59Section4.04 ComplianceCertificate 60Section4.05 Taxes 60Section4.06 Stay,ExtensionandUsuryLaws 60Section4.07 LimitationonRestrictedPayments 61Section4.08 DividendandOtherPaymentRestrictionsAffectingRestrictedSubsidiaries 69Section4.09 LimitationonIncurrenceofIndebtednessandIssuanceofDisqualifiedStockandPreferredStock 70Section4.10 AssetSales 75

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Section4.11 TransactionswithAffiliates 80Section4.12 LimitationonLiens 82Section4.13 CorporateExistence 83Section4.14 OffertoRepurchaseuponChangeofControl 83Section4.15 LimitationonGuaranteesofIndebtednessbyRestrictedSubsidiaries 85Section4.16 LimitationsonBusinessActivitiesofEFIHFinance 86Section4.17 [Reserved] 86Section4.18 RestrictionsonCertainInvestmentsinOncorSubsidiariesandtheCollateral 86Section4.19 AfterAcquiredProperty 86Section4.20 ImpairmentofSecurityInterest 87Section4.21 FurtherAssurances 87

ARTICLE5SUCCESSORS 87

Section5.01 Merger,Consolidation,orSaleofAllorSubstantiallyAllAssets 87Section5.02 SuccessorCorporationSubstituted 90

ARTICLE6DEFAULTSANDREMEDIES 90

Section6.01 EventsofDefault 90Section6.02 Acceleration 93Section6.03 OtherRemedies 93Section6.04 WaiverofPastDefaults 93Section6.05 ControlbyMajority 94Section6.06 LimitationonSuits 94Section6.07 RightsofHoldersofNotestoReceivePayment 94Section6.08 CollectionSuitbyTrustee 94Section6.09 RestorationofRightsandRemedies 95Section6.10 RightsandRemediesCumulative 95Section6.11 DelayorOmissionNotWaiver 95Section6.12 TrusteeMayFileProofsofClaim 95Section6.13 Priorities 96Section6.14 UndertakingforCosts 96

ARTICLE7TRUSTEE 96

Section7.01 DutiesofTrustee 96Section7.02 RightsofTrustee 97Section7.03 IndividualRightsofTrustee 98Section7.04 TrusteesDisclaimer 98Section7.05 NoticeofDefaults 98Section7.06 ReportsbyTrusteetoHoldersoftheNotes 99Section7.07 CompensationandIndemnity 99Section7.08 ReplacementofTrustee 100Section7.09 SuccessorTrusteebyMerger,etc 101Section7.10 EligibilityDisqualification 101Section7.11 PreferentialCollectionofClaimsAgainstIssuer 101

ARTICLE8LEGALDEFEASANCEANDCOVENANTDEFEASANCE 101

Section8.01 OptiontoEffectLegalDefeasanceorCovenantDefeasance 101Section8.02 LegalDefeasanceandDischarge 101Section8.03 CovenantDefeasance 102Section8.04 ConditionstoLegalorCovenantDefeasance 102

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Section8.05

DepositedMoneyandGovernmentSecuritiestoBeHeldinTrustOtherMiscellaneousProvisions 104

Section8.06 RepaymenttoIssuer 104Section8.07 Reinstatement 104

ARTICLE9AMENDMENT,SUPPLEMENTANDWAIVER 105

Section9.01 WithoutConsentofHoldersofNotes 105Section9.02 WithConsentofHoldersofNotes 106Section9.03 CompliancewithTrustIndentureAct 108Section9.04 RevocationandEffectofConsents 108Section9.05 NotationonorExchangeofNotes 108Section9.06 TrusteetoSignAmendments,etc. 108

ARTICLE10COLLATERALANDSECURITY 109

Section10.01 EqualandRatableSharingofCollateralbyHoldersofParityLienDebt 109Section10.02 RankingofParityLiens 109Section10.03 RelativeRights 110Section10.04 SecurityDocuments 110Section10.05 RecordingandOpinions 111Section10.06 ReleaseofCollateral 111Section10.07 AuthorizationofActionstoBeTakenbytheTrusteeUndertheSecurityDocuments 112Section10.08 AuthorizationofReceiptofFundsbytheTrusteeunderthePledgeAgreement 113Section10.09 LienSharingandPriorityConfirmation 113Section10.10 Voting 113Section10.11 LimitationonDutyofTrusteeinRespectofCollateralIndemnification 113Section10.12 AssetSaleCashCollateralAccount 114Section10.13 CollateralTrusteeaThirdPartyBeneficiary 114

ARTICLE11GUARANTEES 115

Section11.01 Guarantee 115Section11.02 LimitationonGuarantorLiability 116Section11.03 ExecutionandDelivery 116Section11.04 Subrogation 117Section11.05 BenefitsAcknowledged 117Section11.06 ReleaseofGuarantees 117

ARTICLE12SATISFACTIONANDDISCHARGE 118

Section12.01 SatisfactionandDischarge 118Section12.02 ApplicationofTrustMoney 119

ARTICLE13MISCELLANEOUS 119

Section13.01 TrustIndentureActControls 119Section13.02 Notices 119Section13.03 CommunicationbyHoldersofNoteswithOtherHoldersofNotes 121Section13.04 CertificateandOpinionastoConditionsPrecedent 121Section13.05 StatementsRequiredinCertificateorOpinion 121Section13.06 RulesbyTrusteeandAgents 121Section13.07 NoPersonalLiabilityofDirectors,Officers,EmployeesandStockholders 122

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Section13.08 GoverningLaw 122Section13.09 WaiverofJuryTrial 122Section13.10 ForceMajeure 122Section13.11 NoAdverseInterpretationofOtherAgreements 122Section13.12 Successors 122Section13.13 Severability 122Section13.14 CounterpartOriginals 123Section13.15 TableofContents,Headings,etc 123Section13.16 [Reserved] 123Section13.17 RingFencingofOncor 123

EXHIBITS ExhibitA FORMOFNOTEExhibitB FORMOFSUPPLEMENTALINDENTURE

iv



INDENTUREdatedasofAugust17,2010amongEnergyFutureIntermediateHoldingCompanyLLC,aDelawarelimitedliabilitycompany(EFIH),andEFIHFinanceInc.,aDelawarecorporation(EFIHFinanceand,togetherwithEFIH,theIssuer),andTheBankofNewYorkMellonTrustCompany,N.A.,asTrustee.

WITNESSETH

WHEREAS,theIssuerhasdulyauthorizedthecreationofanissueof$2,180,000,000aggregateprincipalamountof10.000%SeniorSecuredNotesdue2020(theInitialNotes)

WHEREAS,theIssuerhasdulyauthorizedtheexecutionanddeliveryofthisIndenture

NOW,THEREFORE,theIssuerandtheTrusteeagreeasfollowsforthebenefitofeachotherandfortheequalandratablebenefitoftheHoldersoftheNotes.

ARTICLE1

DEFINITIONSANDINCORPORATIONBYREFERENCE

Section1.01Definitions.

9.75%Notesmeansthe9.75%SeniorSecuredNotesdue2019issuedbytheIssuerunderthe9.75%NotesIndenture.

9.75%NotesIndenturemeanstheIndenture,datedasofNovember16,2009,betweentheIssuerandTheBankofNewYorkMellonTrustCompanyN.A.,pursuanttowhichthe9.75%Noteswereissued.

AcquiredIndebtednessmeans,withrespecttoanyspecifiedPerson,

(1)IndebtednessofanyotherPersonexistingatthetimesuchotherPersonismergedwithorintoorbecameaRestrictedSubsidiaryofsuchspecifiedPerson,includingIndebtednessincurredinconnectionwith,orincontemplationof,suchotherPersonmergingwithorintoorbecomingaRestrictedSubsidiaryofsuchspecifiedPerson,and

(2)IndebtednesssecuredbyaLienencumberinganyassetacquiredbysuchspecifiedPerson.

AdditionalNotesmeansadditionalNotes(otherthantheInitialNotes)issuedfromtimetotimeunderthisIndentureinaccordancewithSections2.02,4.09and4.12hereof,aspartofthesameseriesastheInitialNotes.

AffiliateofanyspecifiedPersonmeansanyotherPersondirectlyorindirectlycontrollingorcontrolledbyorunderdirectorindirectcommoncontrolwithsuchspecifiedPerson.Forpurposesofthisdefinition,control(including,withcorrelativemeanings,thetermscontrolling,controlledbyandundercommoncontrolwith),asusedwithrespecttoanyPerson,shallmeanthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofthemanagementorpoliciesofsuchPerson,whetherthroughtheownershipofvotingsecurities,byagreementorotherwise.

AgentmeansanyRegistrar,coregistrar,PayingAgentoradditionalpayingagent.



ApplicablePremiummeans,withrespecttoanyNoteonanyRedemptionDate,thegreaterof:

(1)1.0%oftheprincipalamountofsuchNoteand

(2)theexcess,ifany,of(a)thepresentvalueatsuchRedemptionDateof(i)theredemptionpriceofsuchNoteatDecember1,2015(suchredemptionpriceassetforthinthetableappearingunderSection3.07(d)hereof),plus(ii)allrequiredinterestpaymentsdueonsuchNotethroughDecember1,2015(excludingaccruedbutunpaidinteresttotheRedemptionDate),computedusingadiscountrateequaltotheTreasuryRateasofsuchRedemptionDateplus50basispointsover(b)theprincipalamountofsuchNote.

AssetSalemeans:

(1)thesale,conveyance,transferorotherdisposition(eachreferredtointhisdefinitionasadisposition),whetherinasingletransactionoraseriesofrelatedtransactions,ofpropertyorassets(includingbywayofaSaleandLeaseBackTransaction)ofEFIHoranyofitsRestrictedSubsidiaries(includingthedispositionofoutstandingEquityInterestsofanUnrestrictedSubsidiaryowneddirectlybyEFIHoranyofitsRestrictedSubsidiaries)and,solelytotheextentcashorCashEquivalentsarereceivedtherefrombyanyOncorSubsidiaryoranySuccessorOncorBusinessandarethereafterdividended,distributedorotherwisepaidtoEFHCorp.,EFIHoranyofitsRestrictedSubsidiaries:(i)theprimaryissuanceofnewEquityInterestsbyanyOncorSubsidiaryoranySuccessorOncorBusiness,(ii)thedispositionofoutstandingEquityInterestsofanOncorSubsidiaryoraSuccessorOncorBusinessowneddirectlybyanotherOncorSubsidiaryorbyanotherSuccessorOncorBusinessand(iii)thedispositionofassetsowneddirectlyorindirectlybyanyOncorSubsidiaryoranySuccessorOncorBusiness.Fortheavoidanceofdoubt,withrespecttoUnrestrictedSubsidiariesotherthanOncorSubsidiariesorSuccessorOncorBusinesses,thefollowingshallnotbedeemedtobeAssetSales:(i)theprimaryissuanceofnewEquityInterestsbyanUnrestrictedSubsidiaryand(ii)salesortransfersofassetsowneddirectlybyUnrestrictedSubsidiariesor

(2)theissuanceorsaleofEquityInterestsofanyRestrictedSubsidiary,whetherinasingletransactionoraseriesofrelatedtransactions(otherthanPreferredStockofRestrictedSubsidiariesissuedincompliancewithSection4.09hereof)

ineachcase,otherthan:

(a)anydispositionofCashEquivalentsorInvestmentGradeSecuritiesorobsoleteorwornoutequipment(includinganysuchequipmentthathasbeenrefurbishedincontemplationofsuchdisposition)intheordinarycourseofbusinessoranydispositionofinventoryorgoods(orotherassets)heldforsaleintheordinarycourseofbusiness

(b)thedispositionofallorsubstantiallyalloftheassetsofEFIHinamannerpermittedbySection5.01hereof(otherthanadispositionexcludedfromSection5.01bytheprovisoattheendofthefirstparagraphofSection5.01hereof)oranydispositionthatconstitutesaChangeofControlpursuanttothisIndenture

(c)themakingofanyRestrictedPaymentorPermittedInvestmentthatispermittedtobemade,andismade,underSection4.07hereof

(d)anydispositionofassetsorissuanceorsaleofEquityInterestsofanyRestrictedSubsidiaryinanytransactionorseriesofrelatedtransactionswithanaggregatefairmarketvalueoflessthan$75.0million

(e)anydispositionofpropertyorassetsorissuanceofsecuritiesbyaRestrictedSubsidiarytoEFIHorbyEFIHoraRestrictedSubsidiarytoanotherRestrictedSubsidiaryprovided,howevertotheextentsuchtransferinvolvesCollateraloranypartthereof,the

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transfereeshallexecuteajoinderagreementtotheSecurityDocumentsorenterintoasubstantiallysimilarcollateraltrustorintercreditoragreementimmediatelyuponconsummationofsuchtransactioninaccordancewiththerequirementsoftheSecurityDocumentstopledgesuchtransferredCollateralforthebenefitoftheHoldersoftheNotes

(f)exceptinthecaseofadispositionofCollateral,totheextentallowableunderSection1031oftheCodeoranycomparableorsuccessorprovision,anyexchangeoflikeproperty(excludinganybootthereon)foruseinaSimilarBusiness

(g)thelease,assignmentorsubleaseofanyrealorpersonalpropertyintheordinarycourseofbusiness

(h)(i)anydispositionofEquityInterestsinanUnrestrictedSubsidiary(otherthananOncorSubsidiaryoraSuccessorOncorBusiness)and(ii)anysale,conveyance,transferorotherdispositionofEquityInterestsin,orassetsof,anyoftheOncorSubsidiariesoraSuccessorOncorBusiness(otherthantheCollateral)totheextentnocashorCashEquivalentsarereceivedinconnectionwithsuchsale,conveyance,transferorotherdispositionortotheextentanycashorCashEquivalentsreceivedinconnectionwithsuchsale,conveyance,transferorotherdispositionarenotdividended,distributedorotherwisepaidtoEFHCorp.,EFIHoranyofitsRestrictedSubsidiaries

(i)foreclosuresonassetsnotconstitutingCollateral

(j)salesofaccountsreceivable,orparticipationstherein,inconnectionwithanyReceivablesFacilityforthebenefitofEFIHoranyofitsRestrictedSubsidiaries

(k)anyfinancingtransactionwithrespecttopropertybuiltoracquiredbyEFIHoranyRestrictedSubsidiaryaftertheIssueDate,includingSaleandLeaseBackTransactionsandassetsecuritizationspermittedbythisIndenture

(l)[IntentionallyOmitted]

(m)exceptinthecaseofadispositionofCollateral,sales,transfersandotherdispositions(i)ofInvestmentsinjointventurestotheextentrequiredby,ormadepursuantto,customarybuy/sellorput/callarrangementsbetweenthejointventurepartiessetforthinjointventurearrangementsandsimilarbindingarrangementsor(ii)tojointventuresinconnectionwiththedissolutionorterminationofajointventuretotheextentrequiredpursuanttojointventureandsimilararrangements

(n)[IntentionallyOmitted]

(o)[IntentionallyOmitted]

(p)[IntentionallyOmitted]

(q)anyCasualtyEventprovidedthenetproceedstherefromaredeemedtobeNetProceedsandareappliedinaccordancewithSection4.10hereoforEFIHorsuchRestrictedSubsidiarydeliverstotheTrusteeaRestorationCertificatewithrespecttoplanstoinvest(andreinvestswithin450daysfromthedateofreceiptoftheNetProceeds)

(r)theexecutionof(oramendmentto),settlementoforunwindingofanyHedgingObligationintheordinarycourseofbusiness

(s)anydispositionofmineralrights(otherthancoalandlignitemineralrights)providedthenetproceedstherefromaredeemedtobeNetProceedsandareappliedinaccordancewithSection4.10hereof

(t)anysale,transferorotherdisposalofanyrealpropertythatis(i)primarilyusedorintendedtobeusedforminingwhichhaseitherbeenreclaimed,orhasnotbeenusedfor

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mininginamannerwhichrequiresreclamation,andineithercasehasbeendeterminedbyEFIHnottobenecessaryforuseformining,(ii)usedasbufferland,butnolongerservessuchpurposeoritsuseisrestrictedsuchthatitwillcontinuetobebufferland,or(iii)wasacquiredinconnectionwithpowergenerationfacilities,buthasbeendeterminedbyEFIHtonolongerbecommerciallysuitableforsuchpurpose

(u)[IntentionallyOmitted]

(v)dispositionsofpower,capacity,heatrate,renewableenergycredits,wastebyproducts,energy,electricity,coalandlignite,oilandotherpetroleumbasedliquids,emissionsandotherenvironmentalcredits,ancillaryservices,fuel(includingallformsofnuclearfuelandnaturalgas)andotherrelatedassetsorproductsofservices,includingassetsrelatedtotradingactivitiesorthesaleofinventoryorcontractsrelatedtoanyoftheforegoing,ineachcaseintheordinarycourseofbusiness

(w)[IntentionallyOmitted]

(x)anydispositionofassetsinconnectionwithsalvageactivitiesprovidedthenetproceedstherefromaredeemedtobeNetProceedsandareappliedinaccordancewithSection4.10hereofand

(y)anysale,transferorotherdispositionofanyassetsrequiredbyanyGovernmentAuthorityprovidedthenetproceedstherefromaredeemedtobeNetProceedsandareappliedinaccordancewithSection4.10hereof.

AssetSaleCashCollateralAccountmeansasegregatedaccountpledgedundertheSecurityDocumentsthatis(i)subjecttoaperfectedsecurityinterestforthebenefitoftheholdersofSecuredLienDebt,(ii)underthesolecontroloftheCollateralTrustee,and(iii)freefromallotherLiens(otherthanLienspermittedtobeplacedontheCollateralpursuanttoSection4.12(b)ofthisIndenture).

AssetSaleOfferhasthemeaningsetforthinSection4.10(d)hereof.

BankruptcyCodemeansTitle11oftheUnitedStatesCode,asamended.

BankruptcyLawmeanstheBankruptcyCodeandanysimilarfederal,stateorforeignlawforthereliefofdebtors.

BoardofDirectorsmeans:

(1)withrespecttoacorporation,theboardofdirectorsofthecorporationoranycommitteethereofdulyauthorizedtoactonbehalfofsuchboard

(2)withrespecttoapartnership,theboardofdirectorsofthegeneralpartnerofthepartnership

(3)withrespecttoalimitedliabilitycompany,themanagingmemberormembersoranycontrollingcommitteeofmanagingmembersthereofand

(4)withrespecttoanyotherPerson,theboardorcommitteeofsuchPersonservingasimilarfunction.

BusinessDaymeanseachdaywhichisnotaLegalHoliday.

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CapitalStockmeans:

(1)inthecaseofacorporation,corporatestock

(2)inthecaseofanassociationorbusinessentity,anyandallshares,interests,participations,rightsorotherequivalents(howeverdesignated)ofcorporatestock

(3)inthecaseofapartnershiporlimitedliabilitycompany,partnershipormembershipinterests(whethergeneralorlimited)and

(4)anyotherinterestorparticipationthatconfersonaPersontherighttoreceiveashareoftheprofitsandlossesof,ordistributionsofassetsof,theissuingPerson.

CapitalizedLeaseObligationmeans,atthetimeanydeterminationthereofistobemade,theamountoftheliabilityinrespectofacapitalleasethatwouldatsuchtimeberequiredtobecapitalizedandreflectedasaliabilityonabalancesheet(excludingthefootnotesthereto)inaccordancewithGAAPprovidedthatanyobligationsexistingontheIssueDate(i)thatwerenotincludedonthebalancesheetofEFIHascapitalleaseobligationsand(ii)thataresubsequentlyrecharacterizedascapitalleaseobligationsduetoachangeinaccountingtreatmentshallforallpurposesnotbetreatedasCapitalizedLeaseObligations.

CapitalizedSoftwareExpendituresmeans,foranyperiod,theaggregateofallexpenditures(whetherpaidincashoraccruedasliabilities)byaPersonanditsRestrictedSubsidiariesduringsuchperiodinrespectofpurchasedsoftwareorinternallydevelopedsoftwareandsoftwareenhancementsthat,inconformitywithGAAP,areorarerequiredtobereflectedascapitalizedcostsontheconsolidatedbalancesheetofaPersonanditsRestrictedSubsidiaries.

CashEquivalentsmeans:

(1)UnitedStatesdollars

(2)eurosoranynationalcurrencyofanyparticipatingmemberstateoftheEMUorsuchlocalcurrenciesheldbyEFIHanditsRestrictedSubsidiariesfromtimetotimeintheordinarycourseofbusiness

(3)securitiesissuedordirectlyandfullyandunconditionallyguaranteedorinsuredbytheU.S.government(oranyagencyorinstrumentalitythereofthesecuritiesofwhichareunconditionallyguaranteedasafullfaithandcreditobligationoftheU.S.government)withmaturities,unlesssuchsecuritiesaredepositedtodefeaseIndebtedness,of24monthsorlessfromthedateofacquisition

(4)certificatesofdeposit,timedepositsandeurodollartimedepositswithmaturitiesofoneyearorlessfromthedateofacquisition,bankersacceptanceswithmaturitiesnotexceedingoneyearandovernightbankdeposits,ineachcasewithanycommercialbankhavingcapitalandsurplusofnotlessthan$500.0millioninthecaseofU.S.banksand$100.0million(ortheU.S.dollarequivalentasofthedateofdetermination)inthecaseofnonU.S.banks

(5)repurchaseobligationsforunderlyingsecuritiesofthetypesdescribedinclauses(3)and(4)enteredintowithanyfinancialinstitutionmeetingthequalificationsspecifiedinclause(4)above

(6)commercialpaperratedatleastP1byMoodysoratleastA1byS&Pandineachcasematuringwithin24monthsafterthedateofcreationthereof

(7)marketableshorttermmoneymarketandsimilarsecuritieshavingaratingofatleastP2orA2fromeitherMoodysorS&P,respectively(or,ifatanytimeneitherMoodysnorS&Pshallberatingsuchobligations,anequivalentratingfromanotherRatingAgency)andineachcasematuringwithin24monthsafterthedateofcreationthereof

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(8)investmentfundsinvesting95%oftheirassetsinsecuritiesofthetypesdescribedinclauses(1)through(7)above

(9)readilymarketabledirectobligationsissuedbyanystate,commonwealthorterritoryoftheUnitedStatesoranypoliticalsubdivisionortaxingauthoritythereofhavinganInvestmentGradeRatingfromeitherMoodysorS&Pwithmaturitiesof24monthsorlessfromthedateofacquisition

(10)IndebtednessorPreferredStockissuedbyPersonswitharatingofAorhigherfromS&PorA2orhigherfromMoodyswithmaturitiesof24monthsorlessfromthedateofacquisitionand

(11)Investmentswithaveragematuritiesof24monthsorlessfromthedateofacquisitioninmoneymarketfundsratedAAA(ortheequivalentthereof)orbetterbyS&PorAaa3(ortheequivalentthereof)orbetterbyMoodys.

Notwithstandingtheforegoing,CashEquivalentsshallincludeamountsdenominatedincurrenciesotherthanthosesetforthinclauses(1)and(2)aboveprovidedthatsuchamountsareconvertedintoanycurrencylistedinclauses(1)and(2)aspromptlyaspracticableandinanyeventwithintenBusinessDaysfollowingthereceiptofsuchamounts.

CasualtyEventmeansanytakingunderpowerofeminentdomainorsimilarproceedingandanyinsuredlossprovidedthatanysuchtakingorsimilarproceedingorinsuredlossthatresultsinNetProceedsoflessthan$75.0millionshallnotbedeemedaCasualtyEvent.

ChangeofControlmeanstheoccurrenceofanyofthefollowing:

(1)thesale,leaseortransfer,inoneoraseriesofrelatedtransactions,ofallorsubstantiallyalloftheassetsofEFIHanditsSubsidiaries,takenasawhole,orallorsubstantiallyalloftheCollateralorOncorrelatedAssets,toanyPersonotherthanaPermittedHolder,otherthan(A)aPermittedAssetTransfermeetingtherequirementsoftheprovisofollowingclause(3)ofthisdefinitionofChangeofControland(B)anyforeclosureontheCollateralprovided,however,thatatransactionthatwouldotherwiseconstituteaChangeofControlpursuanttothisclause(1)shallnotconstituteaChangeofControlif:

(a)theconsiderationreceivedinrespectofsuchtransaction(i)isreceivedbyEFIHoranOncorSubsidiaryorSuccessorOncorBusiness,asthecasemaybe,(ii)consistsofCapitalStockofaPersoninaSimilarOncorBusinessthat(A)wouldbecomeaSubsidiaryofEFIHorsuchOncorSubsidiaryorSuccessorOncorBusinessor(B)isajointventureinwhichEFIHorsuchOncorSubsidiaryorSuccessorOncorBusinesswouldhaveasignificantequityinterest(asdeterminedbyEFIHingoodfaith),(iii)isatleastequaltothefairmarketvalue(asdeterminedbyEFIHingoodfaith)oftheassetssold,transferred,conveyedorotherwisedisposedof,and(iv)ifreceivedbyEFIH,shallbeconcurrentlypledgedasCollateralforthebenefitoftheHoldersoftheNotesandtheholdersoftheotherSecuredDebtObligations

(b)immediatelyaftersuchtransactionnoDefaultexists

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(c)immediatelyaftergivingproformaeffecttosuchtransactionandanyrelatedfinancingtransactions(including,withoutlimitation,anytransactiontheproceedsofwhichareappliedtoreducetheIndebtednessofEFIH)asifthesamehadoccurredatthebeginningoftheapplicablefourquarterperiod,either:

(i)EFIHwouldbepermittedtoincuratleast$1.00ofadditionalIndebtednesspursuanttotheFixedChargeCoverageRatiotestsetforthinSection4.09(a)hereofor

(ii)suchFixedChargeCoverageRatioforEFIHanditsRestrictedSubsidiarieswouldbegreaterthansuchFixedChargeCoverageRatioforEFIHanditsRestrictedSubsidiariesimmediatelypriortosuchtransaction

(d)theratingontheNotesshallnothavebeendowngradedbytwoormoreoftheRatingAgencies(or,iftheNotesareratedbyonlyoneRatingAgencyatthetimeofthefirstnoticeofsuchtransaction,suchRatingAgency)duringtheperiodcommencing30dayspriortothefirstpublicnoticeoftheoccurrenceofsuchtransactionortheintentionoftheIssueroranySubsidiarythereoftoeffectsuchtransactionandendingonthedate60aftersuchpublicnoticerelativetotheratingatthestartofsuchperiodand

(e)eachGuarantor,unlessitistheotherpartytothetransaction,shallhavebyasupplementalindentureconfirmedthatitsGuaranteeandanySecurityDocumentstowhichitisapartyshallapplytosuchPersonsobligationsunderthisIndentureandtheNotes

(2)EFIHbecomesaware(bywayofareportoranyotherfilingpursuanttoSection13(d)oftheExchangeAct,proxy,vote,writtennoticeorotherwise)oftheacquisitionbyanyPersonorgroup(withinthemeaningofSection13(d)(3)orSection14(d)(2)oftheExchangeActoranysuccessorprovision),includinganygroupactingforthepurposeofacquiring,holdingordisposingofsecurities(withinthemeaningofRule13d5(b)(1)undertheExchangeActoranysuccessorprovision),otherthanthePermittedHolders,inasingletransactionorinarelatedseriesoftransactions,bywayofmerger,consolidationorotherbusinesscombinationorpurchaseofbeneficialownership(withinthemeaningofRule13d3undertheExchangeAct,oranysuccessorprovision)of50%ormoreofthetotalvotingpoweroftheVotingStockofEFIHoranyofitsdirectorindirectparentcompaniesor

(3)atanytime,EFHCorp.shallceasetoown,directlyorindirectly,beneficiallyandofrecordatleastamajorityofthetotalvotingpowerofthevotingstockofEFIH

provided,however,thataPermittedAssetTransfershallnotconstituteaChangeofControlif,

(a)inthecaseofaPermittedAssetTransferdescribedinclause(2)ofthedefinitionofPermittedAssetTransferoraPermittedAssetTransferdescribedinclause(1)ofthedefinitionofPermittedAssetTransferbywayofmerger,winduporconsolidationofEFIHwithorintoanotherPerson,suchPermittedAssetTransfercomplieswithSection5.01hereofprovidedthattheSuccessorCompanymaynotbeanOncorSubsidiary

(b)inthecaseofaPermittedAssetTransferdescribedinclause(2)ofthedefinitionofPermittedAssetTransferoraPermittedAssetTransferdescribedinclause(1)ofthedefinitionofPermittedAssetTransferbywayofmerger,winduporconsolidationofEFIHwithorintoanotherPerson,theSuccessorCompanyhasassumedalltheobligationsoftheIssuerundertheNotesandthisIndentureandtheSecurityDocumentstowhichtheIssuerisapartypursuanttoagreements,ineachcase,reasonablysatisfactorytotheTrusteeandtheCollateralTrustee,inaccordancewithSection5.01hereof

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(c)immediatelyaftersuchtransactionnoDefaultexists

(d)immediatelyaftergivingproformaeffecttosuchtransactionandanyrelatedfinancingtransactions(including,withoutlimitation,anytransactiontheproceedsofwhichareappliedtoreducetheIndebtednessoftheSuccessorCompanyorEFIH,asthecasemaybe)asifthesamehadoccurredatthebeginningoftheapplicablefourquarterperiod,either:

(i)theSuccessorCompany,orEFIH,asthecasemaybe,wouldbepermittedtoincuratleast$1.00ofadditionalIndebtednesspursuanttotheFixedChargeCoverageRatiotestdescribedinSection4.09(a)hereofor

(ii)theFixedChargeCoverageRatio(asdefinedinthisIndenture)fortheSuccessorCompanyanditsRestrictedSubsidiariesorEFIHanditsRestrictedSubsidiaries,asthecasemaybe,wouldbegreaterthansuchFixedChargeCoverageRatioforEFIHanditsRestrictedSubsidiariesimmediatelypriortosuchtransaction

(e)theratingontheNotesshallnothavebeendowngradedbytwoormoreoftheRatingAgencies(or,iftheNotesareratedbyonlyoneRatingAgencyatthetimeofthefirstnoticeofsuchPermittedAssetTransfer,suchRatingAgency)duringtheperiodcommencing30dayspriortothefirstpublicnoticeoftheoccurrenceofaPermittedAssetTransferortheintentionoftheIssueroranySubsidiarythereoftoeffectaPermittedAssetTransferandendingonthedate60daysaftersuchnoticerelativetotheratingatthestartofsuchperiodand

(f)EFIHortheSuccessorCompany,asthecasemaybe,shallhavedeliveredtotheTrusteeanOpinionofCounselconfirmingthat,subjecttocustomaryassumptions,exclusionsandqualifications,theexistingSecurityDocuments,ortotheextentthataPermittedAssetTransferpursuanttoclause(2)ofthedefinitionthereoforbywayofmerger,winduporconsolidationofEFIHpursuanttoclause(1)ofthedefinitionthereofisbeingconsummated,theneworamendedSecurityDocumentstobeenteredintobyEFIHortheSuccessorCompany,asthecasemaybe,areenforceableobligationsofEFIHortheSuccessorCompany,asthecasemaybe,createalegallyvalidandenforceablesecurityinterestintheCollateralinfavoroftheCollateralTrusteeforthebenefitoftheHoldersoftheNotesandtheotherSecuredDebtObligations,andthatthesecurityinterestsintheCollateralcreatedbytheSecurityDocumentshavebeenperfected.

Classmeans(1)inthecaseofParityLienDebt,everySeriesofParityLienDebt,takentogether,and(2)inthecaseofJuniorLienDebt,everySeriesofJuniorLienDebt,takentogether.

ClosingDatemeansOctober10,2007.

CodemeanstheInternalRevenueCodeof1986,asamended,oranysuccessorthereto.

Collateralmeansallassetsorproperty,nowownedorhereafteracquiredbyEFIH,totheextentsuchassetsorpropertyarepledgedorassignedorpurportedtobepledgedorassigned,orarerequiredtobepledgedorassignedundertheSecurityDocumentstotheCollateralTrustee,togetherwiththeproceedsthereof.

CollateralAssetSaleOfferhasthemeaningsetforthunderSection4.10(h)hereof.

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CollateralExcessProceedshasthemeaningsetforthunderSection4.10(h)hereof.

CollateralTrustAgreementmeanstheCollateralTrustAgreement,datedasofNovember16,2009,amongEFIH,thetrusteesforthe9.75%NotesandtheEFHCorp.9.75%Notes,anyotherParityLienDebtRepresentativesfromtimetotimepartythereto,anyJuniorLienDebtRepresentativesfromtimetotimePartytheretoandtheCollateralTrustee.

CollateralTrusteemeansTheBankofNewYorkMellonTrustCompany,N.A.,initscapacityasCollateralTrusteeundertheCollateralTrustAgreement,togetherwithitssuccessorsinsuchcapacity.

CollateralTrusteesLiensmeansaLiengrantedtotheCollateralTrusteeassecurityforSecuredDebtObligations.

ConsolidatedDepreciationandAmortizationExpensemeanswithrespecttoanyPersonforanyperiod,thetotalamountofdepreciationandamortizationexpense,includingtheamortizationofdeferredfinancingfees,nuclearfuelcosts,depletionofcoalorlignitereserves,debtissuancecosts,commissions,feesandexpensesandCapitalizedSoftwareExpenditures,ofsuchPersonanditsRestrictedSubsidiariesforsuchperiodonaconsolidatedbasisandotherwisedeterminedinaccordancewithGAAP.

ConsolidatedInterestExpensemeans,withrespecttoanyPersonforanyperiod,withoutduplication,thesumof:

(1)consolidatedinterestexpenseofsuchPersonanditsRestrictedSubsidiariesforsuchperiod,totheextentsuchexpensewasdeducted(andnotaddedback)incomputingConsolidatedNetIncome(including(a)amortizationoforiginalissuediscountresultingfromtheissuanceofIndebtednessatlessthanpar,(b)allcommissions,discountsandotherfeesandchargesowedwithrespecttolettersofcredit,bankersacceptancesoranyCollateralPostingFacilityorsimilarfacilities,(c)noncashinterestpayments(butexcludinganynoncashinterestexpenseattributabletothemovementinthemarktomarketvaluationofHedgingObligationsorotherderivativeinstrumentspursuanttoGAAP),(d)theinterestcomponentofCapitalizedLeaseObligations,and(e)netpayments,ifany,pursuanttointerestrateHedgingObligationswithrespecttoIndebtedness,andexcluding(u)accretionofassetretirementobligationsandaccretionoraccrualofdiscountedliabilitiesnotconstitutingIndebtedness,(v)anyexpenseresultingfromthediscountingofanyIndebtednessinconnectionwiththeapplicationofpurchaseaccounting,(w)anyadditionalinterestimposedinconnectionwithfailuretoregisterothersecurities,(x)amortizationofreacquiredIndebtedness,deferredfinancingfees,debtissuancecosts,commissions,feesandexpenses,(y)anyexpensingofbridge,commitmentandotherfinancingfeesand(z)commissions,discounts,yieldandotherfeesandcharges(includinganyinterestexpense)relatedtoanyReceivablesFacility)plus

(2)interestonIndebtednessofanotherPersonthatisguaranteedbyEFIHsolelytotheextentsuchinterestisactuallypaidbyEFIHundersuchguaranteeplus

(3)consolidatedcapitalizedinterestofsuchPersonanditsRestrictedSubsidiariesforsuchperiod,whetherpaidoraccruedless

(4)interestincomeofsuchPersonanditsRestrictedSubsidiariesforsuchperiod.

Forpurposesofthisdefinition,interestonaCapitalizedLeaseObligationshallbedeemedtoaccrueataninterestratereasonablydeterminedbysuchPersontobetherateofinterestimplicitinsuchCapitalizedLeaseObligationinaccordancewithGAAP.

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ConsolidatedLeverageRatioasofanydateofdetermination,meanstheratioof(x)ConsolidatedTotalIndebtedness(treatingtheOncorSubsidiariesasRestrictedSubsidiariesforpurposesofsuchcalculation)computedasoftheendofthemostrecentfiscalquarterforwhichinternalfinancialstatementsareavailableimmediatelyprecedingthedateonwhichsucheventforwhichsuchcalculationisbeingmadeshalloccurto(y)theaggregateamountofEBITDAofEFIH(treatingtheOncorSubsidiariesasRestrictedSubsidiariesforpurposesofsuchcalculation)fortheperiodofthemostrecentlyendedfourfullconsecutivefiscalquartersforwhichinternalfinancialstatementsareavailableimmediatelyprecedingthedateonwhichsucheventforwhichsuchcalculationisbeingmadeshalloccur,ineachcasewithsuchproformaadjustmentstoConsolidatedTotalIndebtednessandEBITDAasareappropriateandconsistentwiththeproformaadjustmentprovisionssetforthinthedefinitionofFixedChargeCoverageRatio.

ConsolidatedNetIncomemeans,withrespecttoanyPersonforanyperiod,theaggregateoftheNetIncomeofsuchPersonforsuchperiod,onaconsolidatedbasis,andotherwisedeterminedinaccordancewithGAAPprovided,however,that,withoutduplication,

(1)anyaftertaxeffectofextraordinary,nonrecurringorunusualgainsorlosses(lessallfeesandexpensesrelatingthereto)orexpenses(includingTransactionfeesandexpensestotheextentincurredonorpriortoDecember31,2008),severance,relocationcosts,consolidationandclosingcosts,integrationandfacilitiesopeningcosts,businessoptimizationcosts,transitioncosts,restructuringcosts,signing,retentionorcompletionbonuses,andcurtailmentsormodificationstopensionandpostretirementemployeebenefitplansshallbeexcluded

(2)thecumulativeeffectofachangeinaccountingprinciplesduringsuchperiodshallbeexcluded

(3)anyaftertaxeffectofincome(loss)fromdisposed,abandonedordiscontinuedoperationsandanynetaftertaxgainsorlossesondisposalofdisposed,abandoned,transferred,closedordiscontinuedoperationsshallbeexcluded

(4)anyaftertaxeffectofgainsorlosses(lessallfeesandexpensesrelatingthereto)attributabletoassetdispositionsorabandonmentsotherthanintheordinarycourseofbusiness,asdeterminedingoodfaithbyEFIH,shallbeexcluded

(5)theNetIncomeforsuchperiodofanyPersonthatis(a)notaSubsidiary,(b)anUnrestrictedSubsidiaryor(c)accountedforbytheequitymethodofaccounting,shallbeexcludedprovidedthatConsolidatedNetIncomeofEFIHshallbeincreasedbytheamountofdividendsordistributionsorotherpaymentsthatareactuallypaidincash(ortotheextentconvertedintocash)tothereferentPersonoraRestrictedSubsidiarythereofinrespectofsuchperiod,otherthandividends,distributionsorotherpaymentsfromtheOncorSubsidiariesoranySuccessorOncorBusiness(i)fromtheproceedsofsalesofOncorrelatedAssetsmadeafterNovember16,2009and(ii)consistingofOncorrelatedAssetsmadeafterNovember16,2009

(6)solelyforthepurposeofdeterminingtheamountavailableforRestrictedPaymentsunderclause(3)(a)ofSection4.07(a)hereof,theNetIncomeforsuchperiodofanyRestrictedSubsidiary(otherthananyGuarantor)shallbeexcludedtotheextentthatthedeclarationorpaymentofdividendsorsimilardistributionsbythatRestrictedSubsidiaryofitsNetIncomeisnotatthedateofdeterminationwhollypermittedwithoutanypriorgovernmentalapproval(whichhasnotbeenobtained)or,directlyorindirectly,bytheoperationofthetermsofitscharteroranyagreement,instrument,judgment,decree,order,statute,rule,orgovernmentalregulationapplicabletothatRestrictedSubsidiaryoritsstockholders,unlesssuchrestrictionwithrespecttothepaymentofdividendsorsimilardistributionshasbeenlegallywaivedoris

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otherwisepermittedbySection4.08hereofprovidedthatConsolidatedNetIncomeofEFIHshallbeincreasedbytheamountofdividendsorotherdistributionsorotherpaymentsactuallypaidincash(ortotheextentconvertedintocash)orCashEquivalentstoEFIHoraRestrictedSubsidiarythereofinrespectofsuchperiod,totheextentnotalreadyincludedtherein

(7)effectsofalladjustments(includingtheeffectsofsuchadjustmentspusheddowntoEFIHanditsRestrictedSubsidiaries)insuchPersonsconsolidatedfinancialstatementspursuanttoGAAPresultingfromtheapplicationofpurchaseaccountinginrelationtotheTransactionsoranyconsummatedacquisitionortheamortizationorwriteoffofanyamountsthereof,netoftaxes,shallbeexcluded

(8)anynetaftertaxeffectofincome(loss)attributabletotheearlyextinguishmentofIndebtedness(otherthanHedgingObligations)shallbeexcluded

(9)anyimpairmentchargeorassetwriteoff,including,withoutlimitation,impairmentchargesorassetwriteoffsrelatedtointangibleassets,longlivedassetsorinvestmentsindebtandequitysecurities,ineachcase,pursuanttoGAAPandtheamortizationofintangiblesarisingpursuanttoGAAPshallbeexcluded

(10)anynoncashcompensationexpenserecordedfromgrantsofstockappreciationorsimilarrights,stockoptions,restrictedstockorotherrights,andanycashchargesassociatedwiththerollover,accelerationorpayoutofEquityInterestsbymanagementofEFIHoranyofitsdirectorindirectparentcompaniesinconnectionwiththeTransactions,shallbeexcluded

(11)anyfeesandexpensesincurredduringsuchperiod,oranyamortizationthereofforsuchperiod,inconnectionwithanyacquisition,Investment,AssetSale,issuanceorrepaymentofIndebtedness,issuanceofEquityInterests,refinancingtransactionoramendmentormodificationofanydebtinstrument(ineachcase,includinganysuchtransactionconsummatedpriortotheClosingDateandanysuchtransactionundertakenbutnotcompleted)andanychargesornonrecurringmergercostsincurredduringsuchperiodasaresultofanysuchtransactionshallbeexcluded

(12)accrualsandreservesthatareestablishedoradjustedwithintwelvemonthsaftertheClosingDatethataresorequiredtobeestablishedasaresultoftheTransactionsinaccordancewithGAAP,orchangesasaresultofadoptionormodificationofaccountingpolicies,shallbeexcluded

(13)totheextentcoveredbyinsuranceandactuallyreimbursed,or,solongasEFIHhasmadeadeterminationthatthereexistsreasonableevidencethatsuchamountshallinfactbereimbursedbytheinsurerandonlytotheextentthatsuchamountis(a)notdeniedbytheapplicablecarrierinwritingwithin180daysand(b)infactreimbursedwithin365daysofthedateofsuchevidence(withadeductionforanyamountsoaddedbacktotheextentnotsoreimbursedwithin365days),expenseswithrespecttoliabilityorcasualtyeventsorbusinessinterruptionshallbeexcluded

(14)anynetaftertaxeffectofunrealizedincome(loss)attributabletoHedgingObligationsorotherderivativeinstrumentsshallbeexcludedand

(15)anybenefitfromanyfairmarketvalueofanycontractasrecordedonthebalancesheetatthetimeoftheTransactionsshallbeexcluded.

Notwithstandingtheforegoing,forthepurposeofSection4.07hereofonly(otherthanclause(3)(d)ofSection4.07(a)hereof),thereshallbeexcludedfromConsolidatedNetIncome(A)anyincomearisingfromanysaleorotherdispositionofRestrictedInvestmentsmadebyEFIHanditsRestrictedSubsidiaries,anyrepurchasesandredemptionsofRestrictedInvestmentsfromEFIHanditsRestrictedSubsidiaries,anyrepaymentsofloansandadvanceswhichconstituteRestrictedInvestmentsby

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EFIHoranyofitsRestrictedSubsidiaries,anysaleofthestockofanUnrestrictedSubsidiaryoranydistributionordividendfromanUnrestrictedSubsidiary,ineachcaseonlytotheextentsuchamountsincreasetheamountofRestrictedPaymentspermittedunderclause(3)(d)ofSection4.07(a)hereofand(B)anyincomedescribedinparagraph(17)ofSection4.07(b)hereof.

ConsolidatedSecuredDebtRatiomeans,asofanydateofdetermination,theratioof(x)ConsolidatedSecuredIndebtednesscomputedasoftheendofthemostrecentfiscalquarterforwhichinternalfinancialstatementsareavailableimmediatelyprecedingthedateonwhichsucheventforwhichsuchcalculationisbeingmadeshalloccurto(y)theaggregateamountofEBITDAofEFIHfortheperiodofthemostrecentlyendedfourfullconsecutivefiscalquartersforwhichinternalfinancialstatementsareavailableimmediatelyprecedingthedateonwhichsucheventforwhichsuchcalculationisbeingmadeshalloccur,ineachcasewithsuchproformaadjustmentstoConsolidatedSecuredIndebtednessandEBITDAasareappropriateandconsistentwiththeproformaadjustmentprovisionssetforthinthedefinitionofFixedChargeCoverageRatio.

ConsolidatedSecuredIndebtednessmeansConsolidatedTotalIndebtednesssecuredbyaLienonanyassetsofEFIHoranyofitsRestrictedSubsidiaries.

ConsolidatedTotalIndebtednessmeans,asatanydateofdetermination,anamountequalto(1)theaggregateamountofalloutstandingIndebtednessofEFIHanditsRestrictedSubsidiariesonaconsolidatedbasisconsistingofIndebtednessforborrowedmoney,debtobligationsevidencedbypromissorynotesandsimilarinstruments,lettersofcredit(onlytotheextentofanyunreimburseddrawingsthereunder)andObligationsinrespectofCapitalizedLeaseObligations,plus(2)theaggregateamountofalloutstandingDisqualifiedStockofEFIHandallDisqualifiedStockandPreferredStockofitsRestrictedSubsidiariesonaconsolidatedbasis,withtheamountofsuchDisqualifiedStockandPreferredStockequaltothegreateroftheirrespectivevoluntaryorinvoluntaryliquidationpreferencesandmaximumfixedrepurchaseprices,ineachcasedeterminedonaconsolidatedbasisinaccordancewithGAAP,less(3)theaggregateamountofallUnrestrictedCashandless(4)allDepositL/CLoansandIncrementalDepositL/CLoansoutstandingonsuchdateofdetermination.Forpurposeshereof,themaximumfixedrepurchasepriceofanyDisqualifiedStockorPreferredStockthatdoesnothaveafixedrepurchasepriceshallbecalculatedinaccordancewiththetermsofsuchDisqualifiedStockorPreferredStockasifsuchDisqualifiedStockorPreferredStockwerepurchasedonanydateonwhichConsolidatedTotalIndebtednessshallberequiredtobedetermined,andifsuchpriceisbasedupon,ormeasuredby,thefairmarketvalueofsuchDisqualifiedStockorPreferredStock,suchfairmarketvalueshallbedeterminedreasonablyandingoodfaithbyEFIH.

ContingentObligationsmeans,withrespecttoanyPerson,anyobligationofsuchPersonguaranteeinganyleases,dividendsorotherobligationsthatdonotconstituteIndebtedness(primaryobligations)ofanyotherPerson(theprimaryobligor)inanymanner,whetherdirectlyorindirectly,including,withoutlimitation,anyobligationofsuchPerson,whetherornotcontingent,

(1)topurchaseanysuchprimaryobligationoranypropertyconstitutingdirectorindirectsecuritytherefor,

(2)toadvanceorsupplyfunds

(a)forthepurchaseorpaymentofanysuchprimaryobligation,or

(b)tomaintainworkingcapitalorequitycapitaloftheprimaryobligororotherwisetomaintainthenetworthorsolvencyoftheprimaryobligor,or

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(3)topurchaseproperty,securitiesorservicesprimarilyforthepurposeofassuringtheownerofanysuchprimaryobligationoftheabilityoftheprimaryobligortomakepaymentofsuchprimaryobligationagainstlossinrespectthereof.

CorporateTrustOfficeoftheTrusteeshallbeatthefirstaddressoftheTrusteespecifiedinSection13.02hereoforsuchotheraddressastowhichtheTrusteemaygivenoticetotheHoldersandtheIssuer.

CoveredCommoditymeansanyenergy,electricity,generationcapacity,power,heatrate,congestion,naturalgas,nuclearfuel(includingenrichmentandconversion),dieselfuel,fueloil,otherpetroleumbasedliquids,coal,lignite,weather,emissionsandotherenvironmentalcredits,wastebyproducts,renewableenergycredit,oranyotherenergyrelatedcommodityorservice(includingancillaryservicesandrelatedrisks(suchaslocationbasis)).

CreditFacilitiesmeans,withrespecttoEFIHoranyofitsRestrictedSubsidiaries,oneormoredebtfacilitiesorotherfinancingarrangements(including,withoutlimitation,commercialpaperfacilitiesorindentures)providingforrevolvingcreditloans,termloans,lettersofcreditorotherlongtermindebtedness,includinganynotes,mortgages,guarantees,collateraldocuments,instrumentsandagreementsexecutedinconnectiontherewith,andanyamendments,supplements,modifications,extensions,renewals,restatementsorrefundingsthereofandanyindenturesorcreditfacilitiesorcommercialpaperfacilitiesthatreplace,refundorrefinanceanypartoftheloans,notes,othercreditfacilitiesorcommitmentsthereunder,includinganysuchreplacement,refundingorrefinancingfacilityorindenturethatincreasestheamountpermittedtobeborrowedthereunderoraltersthematuritythereof(providedthatsuchincreaseinborrowingsispermittedunderSection4.09hereof)oraddsRestrictedSubsidiariesasadditionalborrowersorguarantorsthereunderandwhetherbythesameoranyotheragent,lenderorgroupoflenders.

CustodianmeanstheTrustee,ascustodianwithrespecttotheNotesinglobalform,oranysuccessorentitythereto.

Defaultmeansanyeventthatis,orwiththepassageoftimeorthegivingofnoticeorbothwouldbe,anEventofDefault.

DefinitiveNotemeansacertificatedNoteregisteredinthenameoftheHolderthereofandissuedinaccordancewithSection2.06hereof,substantiallyintheformofExhibitAexceptthatsuchNoteshallnotbeartheGlobalNoteLegendandshallnothavetheScheduleofExchangesofInterestsintheGlobalNoteattachedthereto.

Depositarymeans,withrespecttotheNotesissuableorissuedinwholeorinpartinglobalform,thePersonspecifiedinSection2.03hereofastheDepositarywithrespecttotheNotes,andanyandallsuccessorstheretoappointedasdepositaryhereunderandhavingbecomesuchpursuanttotheapplicableprovisionofthisIndenture.

DepositL/CLoanmeansanyDepositL/CLoansunder,andasdefinedinanyCreditFacilities.

DesignatedNoncashConsiderationmeansthefairmarketvalueofnoncashconsiderationreceivedbyEFIHoraRestrictedSubsidiaryinconnectionwithanAssetSalethatissodesignatedasDesignatedNoncashConsiderationpursuanttoanOfficersCertificate,settingforththebasisofsuchvaluation,executedbytheprincipalfinancialofficerofEFIH,lesstheamountofcashorCashEquivalentsreceivedinconnectionwithasubsequentsaleoforcollectiononsuchDesignatedNoncashConsideration.

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DesignatedPreferredStockmeansPreferredStockofEFIHoranyparentcorporationthereof(ineachcaseotherthanDisqualifiedStock)thatisissuedforcash(otherthantoaRestrictedSubsidiaryoranemployeestockownershipplanortrustestablishedbyEFIHoranyofitsSubsidiaries)andissodesignatedasDesignatedPreferredStock,pursuanttoanOfficersCertificateexecutedbytheprincipalfinancialofficerofEFIHortheapplicableparentcorporationthereof,asthecasemaybe,ontheissuancedatethereof,thecashproceedsofwhichareexcludedfromthecalculationsetforthinclause(3)ofSection4.07(a)hereof.

DisqualifiedStockmeans,withrespecttoanyPerson,anyCapitalStockofsuchPersonwhich,byitsterms,orbythetermsofanysecurityintowhichitisconvertibleorforwhichitisputableorexchangeable,oruponthehappeningofanyevent,maturesorismandatorilyredeemable(otherthansolelyasaresultofachangeofcontrolorassetsale)pursuanttoasinkingfundobligationorotherwise,orisredeemableattheoptionoftheholderthereof(otherthansolelyasaresultofachangeofcontrolorassetsale),inwholeorinpart,ineachcasepriortothedate91daysaftertheearlierofthematuritydateoftheNotesorthedatetheNotesarenolongeroutstandingprovided,however,thatifsuchCapitalStockisissuedtoanyplanforthebenefitofemployeesofEFIHoritsSubsidiariesorbyanysuchplantosuchemployees,suchCapitalStockshallnotconstituteDisqualifiedStocksolelybecauseitmayberequiredtoberepurchasedbyEFIHoritsSubsidiariesinordertosatisfyapplicablestatutoryorregulatoryobligations.

EBITDAmeans,withrespecttoanyPersonforanyperiod,theConsolidatedNetIncomeofsuchPersonforsuchperiod

(1)increased(withoutduplication)by:

(a)provisionfortaxesbasedonincomeorprofitsorcapitalgains,including,withoutlimitation,foreign,federal,state,franchise,excise,valueaddedandsimilartaxesandforeignwithholdingtaxes(includingpenaltiesandinterestrelatedtosuchtaxesorarisingfromtaxexaminations)ofsuchPersonpaidoraccruedduringsuchperiod,deducted(andnotaddedback)incomputingConsolidatedNetIncomeplus

(b)FixedChargesofsuchPersonforsuchperiod(including(x)netlossesonHedgingObligationsorotherderivativeinstrumentsenteredintoforthepurposeofhedginginterestrateriskand(y)costsofsuretybondsinconnectionwithfinancingactivities,ineachcase,totheextentincludedinFixedCharges),togetherwithitemsexcludedfromthedefinitionofConsolidatedInterestExpensepursuanttoclauses(1)(u),(v),(w),(x),(y)and(z)ofthedefinitionthereof,and,ineachsuchcase,totheextentthesamewerededucted(andnotaddedback)incalculatingsuchConsolidatedNetIncomeplus

(c)ConsolidatedDepreciationandAmortizationExpenseofsuchPersonforsuchperiodtotheextentthesamewasdeducted(andnotaddedback)incomputingConsolidatedNetIncomeplus

(d)anyfees,expensesorcharges(otherthandepreciationoramortizationexpense)relatedtoanyEquityOffering,PermittedInvestment,acquisition,disposition,recapitalizationortheincurrenceofIndebtednesspermittedtobeincurredbysuchPersonanditsRestrictedSubsidiariesunderthisIndenture(includingarefinancingtransactionoramendmentorothermodificationofanydebtinstrument)(whetherornotsuccessful),including(i)suchfees,expensesorchargesrelatedtotheExchangeOffer,theofferingsofanyAdditionalNotes,theexchangeofferrelatingtotheEFHCorp.9.75%Notesandthe9.75%NotesandtheofferingoftheEFHCorp.10.000%Notes,anyCreditFacilities

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andanyReceivablesFacility,(ii)anyamendmentorothermodificationoftheNotes,(iii)anysuchtransactionconsummatedpriortotheClosingDateandanysuchtransactionundertakenbutnotcompletedand(iv)anychargesornonrecurringmergercostsasaresultofanysuchtransaction,ineachcase,deducted(andnotaddedback)incomputingConsolidatedNetIncomeplus

(e)theamountofanyrestructuringchargeorreservededucted(andnotaddedback)insuchperiodincomputingConsolidatedNetIncome,includinganycostsincurredinconnectionwithacquisitionsaftertheClosingDate,costsrelatedtotheclosureand/orconsolidationoffacilitiesplus

(f)anyothernoncashcharges,includinganywriteoffsorwritedowns,reducingConsolidatedNetIncomeforsuchperiod(providedthatifanysuchnoncashchargesrepresentanaccrualorreserveforpotentialcashitemsinanyfutureperiod,thecashpaymentinrespectthereofinsuchfutureperiodshallbesubtractedfromEBITDAtosuchextent,andexcludingamortizationofaprepaidcashitemthatwaspaidinapriorperiod)plus

(g)theamountofanyminorityinterestexpenseconsistingofSubsidiaryincomeattributabletominorityequityinterestsofthirdpartiesinanynonWhollyOwnedSubsidiarydeducted(andnotaddedback)insuchperiodincalculatingConsolidatedNetIncomeplus

(h)theamountofmanagement,monitoring,consultingandadvisoryfeesandrelatedindemnitiesandexpensespaidinsuchperiodtotheInvestorstotheextentotherwisepermittedunderSection4.11hereofanddeducted(andnotaddedback)incalculatingConsolidatedNetIncomeplus

(i)theamountofnetcostsavingsprojectedbytheIssueringoodfaithtoberealizedasaresultofspecifiedactionstakenortobetakenpriortoorduringsuchperiod(calculatedonaproformabasisasthoughsuchcostsavingshadbeenrealizedonthefirstdayofsuchperiodandaddedtoEBITDAuntilfullyrealized),netoftheamountofactualbenefitsrealizedduringsuchperiodfromsuchactionsprovidedthat(w)suchcostsavingsarereasonablyidentifiableandfactuallysupportable,(x)suchactionshavebeentakenoraretobetakenwithin12monthsafterthedateofdeterminationtotakesuchactionandsomeportionofthebenefitisexpectedtoberealizedwithin12monthsoftakingsuchaction,(y)nocostsavingsshallbeaddedpursuanttothisclause(i)totheextentduplicativeofanyexpensesorchargesrelatingtosuchcostsavingsthatareincludedinclause(e)abovewithrespecttosuchperiodand(z)theaggregateamountofcostsavingsaddedpursuanttothisclause(i)shallnotexceed$50.0millionforanyfourconsecutivequarterperiod(whichadjustmentsmaybeincrementaltoproformaadjustmentsmadepursuanttothesecondparagraphofthedefinitionofFixedChargeCoverageRatio)plus

(j)theamountoflossonsalesofreceivablesandrelatedassetstoanyReceivablesSubsidiaryinconnectionwithaReceivablesFacilitydeducted(andnotaddedback)incalculatingConsolidatedNetIncomeplus

(k)anycostsorexpenseincurredbyEFIHoraRestrictedSubsidiarypursuanttoanymanagementequityplanorstockoptionplanoranyothermanagementoremployeebenefitplanoragreementoranystocksubscriptionorshareholderagreement,

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totheextentthatsuchcostorexpensesarefundedwithcashproceedscontributedtothecapitalofEFIHornetcashproceedsofanissuanceofEquityInterests(otherthanDisqualifiedStock)ofEFIH(oranydirectorindirectparentthereof)solelytotheextentthatsuchnetcashproceedsareexcludedfromthecalculationsetforthinclause(3)ofSection4.07(a)hereofplus

(l)cashreceipts(oranynettingarrangementsresultinginincreasedcashreceipts)notaddedinarrivingatEBITDAorConsolidatedNetIncomeinanyperiodtotheextentthenoncashgainsrelatingtosuchreceiptsweredeductedinthecalculationofEBITDApursuanttoparagraph(2)belowforanypreviousperiodandnotaddedand

(2)decreasedby(withoutduplication)(a)noncashgainsincreasingConsolidatedNetIncomeofsuchPersonforsuchperiod,excludinganynoncashgainstotheextenttheyrepresentthereversalofanaccrualorreserveforapotentialcashitemthatreducedEBITDAinanypriorperiod,(b)cashexpenditures(oranynettingarrangementsresultinginincreasedcashexpenditures)notdeductedinarrivingatEBITDAorConsolidatedNetIncomeinanyperiodtotheextentnoncashlossesrelatingtosuchexpenditureswereaddedinthecalculationofEBITDApursuanttoparagraph(1)aboveforanypreviousperiodandnotdeducted,and(c)theamountofanyminorityinterestincomeconsistingofSubsidiarylossesattributabletominorityequityinterestsofthirdpartiesinanynonWhollyOwnedSubsidiarytotheextentsuchminorityinterestincomeisincludedinConsolidatedNetIncome.

EFCHmeansEnergyFutureCompetitiveHoldingsCompany.

EFHCorp.meansEnergyFutureHoldingsCorp.,theparentofEFIH.

EFHCorp.2017NotesmeansEFHCorp.s10.875%SeniorNotesdue2017and11.250%/12.000%SeniorToggleNotesdue2017.

EFHCorp.9.75%Notesmeansthe9.75%SeniorSecuredNotesdue2019issuedbyEFHCorp.undertheEFHCorp.9.75%NotesIndenture,includingtheguaranteesthereof.

EFHCorp.9.75%NotesIndenturemeanstheIndenture,datedasofNovember16,2009,amongEFHCorp.,EFIH,EFCHandTheBankofNewYorkMellonTrustCompanyN.A.,pursuanttowhichtheEFHCorp.9.75%Noteswereissued.

EFHCorp.10.000%Notesmeansthe10.000%SeniorSecuredNotesdue2020issuedbyEFHCorp.undertheEFHCorp.10.000%NotesIndenture,fromtimetotime,includingtheguaranteesthereof,andanyexchangenotesandexchangeguaranteesissuedinexchangetherefor.

EFHCorp.10.000%NotesIndenturemeanstheIndenture,datedasofJanuary12,2010,assupplemented,amongEFHCorp.,EFIH,EFCHandTheBankofNewYorkMellonTrustCompany,N.A.pursuanttowhichtheEFHCorp.10.000%Noteswereissued.

EFHCorp.sRatablePortionofOncorDividendsmeanstheamountobtainedbymultiplying(a)theaggregateamountofcashreceivedbyEFIHbymeansofacashdividendfromtheOncorSubsidiariesafterNovember16,2009(otherthandividendsconstitutingproceedsfromAssetSalesofOncorrelatedAssets)by(b)afraction,thenumeratorofwhichshallbethesumoftheaggregateprincipalamountoftheEFHCorp.9.75%Notes,theEFHCorp.10.000%NotesandanyotherParityLienDebtofEFHCorp.thatisguaranteedbyEFIHunderclause(2)ofSection4.09(b)hereofandthedenominatorofwhichshallbetheaggregateprincipalamountof(i)theEFHCorp.9.75%Notes,theEFHCorp.10.000%NotesandanyotherParityLienDebtofEFHCorp.thatisguaranteedbyEFIHplus(ii)theNotes,any

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AdditionalNotes,the9.75%Notes,anyadditional9.75%NotesandanyotherParityLienDebtofEFIH,inthecaseofclauses(i)and(ii)incurredpursuanttoclause(2)ofSection4.09(b)hereofandatthetimeoutstanding.

EFIHmeansEnergyFutureIntermediateHoldingCompanyLLCprovidedthatwhenusedinthecontextofdeterminingthefairmarketvalueofanassetorliabilityunderthisIndenture,EFIHshallbedeemedtomeantheBoardofDirectorsofEFIHwhenthefairmarketvalueisequaltoorinexcessof$500.0million(unlessotherwiseexpresslystated).

EMUmeanstheeconomicandmonetaryunionascontemplatedintheTreatyonEuropeanUnion.

EnvironmentalCapExDebtmeansIndebtednessoftheIssueroranyofitsRestrictedSubsidiariesincurredforthepurposeoffinancingEnvironmentalCapitalExpenditures.

EnvironmentalCapitalExpendituresmeanscapitalexpendituresdeemednecessarybytheIssueroritsRestrictedSubsidiariestocomplywith,orinanticipationofhavingtocomplywith,EnvironmentalLaworotherwiseundertakenvoluntarilybyEFIHoranyofitsRestrictedSubsidiariesinconnectionwithenvironmentalmatters.

EnvironmentalLawmeansanyapplicableFederal,state,foreignorlocalstatute,law,rule,regulation,ordinance,codeandruleofcommonlawnoworhereafterineffectandineachcaseasamended,andanyapplicablejudicialoradministrativeinterpretationthereof,includinganyapplicablejudicialoradministrativeorder,consentdecreeorjudgment,relatingtotheenvironment,humanhealthorsafetyorHazardousMaterials.

equallyandratablymeans,inreferencetosharingofLiensorproceedsthereofasbetweentheholdersofSecuredDebtObligationswithinthesameClassaftertherepaymentofamountspayabletotheCollateralTrusteeundertheCollateralTrustAgreementandtheParityLienRepresentatives(andinthecaseofJuniorLienObligations,JuniorLienRepresentatives)inaccordancewiththeapplicableSecuredDebtDocumentthatsuchLiensorproceeds:

(1)shallbeallocatedanddistributedfirsttotheSecuredDebtRepresentativeforeachoutstandingSeriesofSecuredLienDebtwithinthatClass,fortheaccountoftheholdersofsuchSeriesofSecuredLienDebt,ratablyinproportiontotheprincipal,premium,ifany,andintereston,reimbursementobligations(contingentorotherwise)withrespecttolettersofcredit,ifany,outstanding(whetherornotdrawingshavebeenmadeundersuchlettersofcredit)formingpartof,andHedgingObligationstotheextentconstitutingSecuredLienDebtpursuanttothetermsof,eachoutstandingSeriesofSecuredLienDebtwithinthatClasswhentheallocationordistributionismadeandthereafter

(2)shallbeallocatedanddistributed(ifanyremainafterpaymentinfullofalloftheprincipal,premium,ifany,andintereston,andreimbursementobligations(contingentorotherwise)withrespecttolettersofcredit,ifany,outstanding(whetherornotdrawingshavebeenmadeonsuchlettersofcredit)formingpartof,andHedgingObligationstotheextentconstitutingSecuredIndebtednesspursuanttothetermsof,eachoutstandingSeriesofSecuredLienDebtwithinthatClass)totheSecuredDebtRepresentativeforeachoutstandingSeriesofSecuredLienDebtwithinthatClass,fortheaccountoftheholdersofanyremainingSecuredDebtObligationswithinthatClass,ratablyinproportiontotheaggregateunpaidamountofsuchremainingSecuredDebtObligationswithinthatClassdueanddemanded(withwrittennoticetotheapplicableSecuredDebtRepresentativeandtheCollateralTrustee)priortothedatesuchdistributionismade.

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EquityInterestsmeansCapitalStockandallwarrants,optionsorotherrightstoacquireCapitalStock,butexcludinganydebtsecuritythatisconvertibleinto,orexchangeablefor,CapitalStock.

EquityOfferingmeansanypublicorprivatesaleofcommonstockorPreferredStockofEFIHoranyofitsdirectorindirectparentcompanies(excludingDisqualifiedStock),otherthan:

(1)publicofferingswithrespecttoEFIHsoranydirectorindirectparentcompanyscommonstockregisteredonFormS8

(2)issuancestoanySubsidiaryofEFIHand

(3)anysuchpublicorprivatesalethatconstitutesanExcludedContribution.

ERCOTmeanstheElectricReliabilityCouncilofTexas,Inc.oranyentityapprovedtoperformthefunctionsofanindependentsystemoperatorwithinthepowerregionthatincludesapproximately80%oftheelectrictransmissionwithintheStateofTexas.

euromeansthesinglecurrencyofparticipatingmemberstatesoftheEMU.

EventofDefaulthasthemeaningsetforthunderSection6.01hereof.

ExchangeActmeanstheSecuritiesExchangeActof1934,asamended,andtherulesandregulationsoftheSECpromulgatedthereunder.

ExchangeOffermeanstheexchangeoftheNotesforexistingIndebtednessofEFHCorp.pursuanttotheProspectus.

ExcludedContributionmeansnetcashproceeds,marketablesecuritiesorQualifiedProceedsreceivedbyEFIHaftertheClosingDatefrom

(1)contributionstoitscommonequitycapital,and

(2)thesale(otherthantoaSubsidiaryofEFIHortoanymanagementequityplanorstockoptionplanoranyothermanagementoremployeebenefitplanoragreementofEFIHoranyofitsdirectorindirectparentcompanies)ofCapitalStock(otherthanDisqualifiedStockandDesignatedPreferredStock)ofEFIH,

ineachcasedesignatedasExcludedContributionspursuanttoanOfficersCertificateexecutedbytheprincipalfinancialofficerofEFIHonthedatesuchcapitalcontributionsaremadeorthedatesuchEquityInterestsaresold,asthecasemaybe,whichareexcludedfromthecalculationsetforthinclause(3)ofSection4.07(a)hereof.

ExistingEFHCorp.Notesmeans

EFHCorp.5.55%FixedSeniorNotesSeriesPdue2014

EFHCorp.6.50%FixedSeniorNotesSeriesQdue2024

EFHCorp.6.55%FixedSeniorNotesSeriesRdue2034

EFHCorp.2017Notes

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EFHCorp.9.75%Notesand

EFHCorp.10.000%Notes,

ineachcasetotheextentoutstandingontheIssueDate.

ExistingEFHCorp.NotesIndenturesmeanseachoftheindenturesorotherdocumentscontainingthetermsoftheExistingEFHCorp.Notes.

FitchmeansFitchRatingsLtd.andanysuccessortoitsratingagencybusiness.

FixedChargeCoverageRatiomeans,withrespecttoanyPersonforanyperiod,theratioofEBITDAofsuchPersonforsuchperiodtotheFixedChargesofsuchPersonforsuchperiod.IntheeventthatEFIHoranyRestrictedSubsidiaryincurs,assumes,guarantees,redeems,retiresorextinguishesanyIndebtedness(otherthanIndebtednessincurredunderanyrevolvingcreditfacilityunlesssuchIndebtednesshasbeenpermanentlyrepaidandhasnotbeenreplaced)orissuesorredeemsDisqualifiedStockorPreferredStocksubsequenttothecommencementoftheperiodforwhichtheFixedChargeCoverageRatioisbeingcalculatedbutpriortoorsimultaneouslywiththeeventforwhichthecalculationoftheFixedChargeCoverageRatioismade(theFixedChargeCoverageRatioCalculationDate),thentheFixedChargeCoverageRatioshallbecalculatedgivingproformaeffecttosuchincurrence,assumption,guarantee,redemption,retirementorextinguishmentofIndebtedness,orsuchissuanceorredemptionofDisqualifiedStockorPreferredStock,asifthesamehadoccurredatthebeginningoftheapplicablefourquarterperiod.

Forpurposesofmakingthecomputationreferredtoabove,Investments,acquisitions,dispositions,mergers,consolidationsanddisposedoperations(asdeterminedinaccordancewithGAAP)thathavebeenmadebyEFIHoranyofitsRestrictedSubsidiariesduringthefourquarterreferenceperiodorsubsequenttosuchreferenceperiodandonorpriortoorsimultaneouslywiththeFixedChargeCoverageRatioCalculationDateshallbecalculatedonaproformabasisassumingthatallsuchInvestments,acquisitions,dispositions,mergers,consolidationsanddisposedoperations(andthechangeinanyassociatedfixedchargeobligationsandthechangeinEBITDAresultingtherefrom)hadoccurredonthefirstdayofthefourquarterreferenceperiod.If,sincethebeginningofsuchperiod,anyPersonthatsubsequentlybecameaRestrictedSubsidiaryorwasmergedwithorintoEFIHoranyofitsRestrictedSubsidiariessincethebeginningofsuchperiodshallhavemadeanyInvestment,acquisition,disposition,merger,consolidationordisposedoperationthatwouldhaverequiredadjustmentpursuanttothisdefinition,thentheFixedChargeCoverageRatioshallbecalculatedgivingproformaeffecttheretoforsuchperiodasifsuchInvestment,acquisition,disposition,merger,consolidationordisposedoperationhadoccurredatthebeginningoftheapplicablefourquarterperiod.

Forpurposesofthisdefinition,wheneverproformaeffectistobegiventoatransaction,theproformacalculationsshallbemadeingoodfaithbyaresponsiblefinancialoraccountingofficerofEFIH.IfanyIndebtednessbearsafloatingrateofinterestandisbeinggivenproformaeffect,theinterestonsuchIndebtednessshallbecalculatedasiftherateineffectontheFixedChargeCoverageRatioCalculationDatehadbeentheapplicableratefortheentireperiod(takingintoaccountanyHedgingObligationsapplicabletosuchIndebtedness).InterestonaCapitalizedLeaseObligationshallbedeemedtoaccrueataninterestratereasonablydeterminedbyaresponsiblefinancialoraccountingofficerofEFIHtobetherateofinterestimplicitinsuchCapitalizedLeaseObligationinaccordancewithGAAP.Forpurposesofmakingthecomputationreferredtoabove,interestonanyIndebtednessunderarevolvingcreditfacilitycomputedonaproformabasisshallbecomputedbasedupontheaveragedailybalanceofsuchIndebtednessduringtheapplicableperiodexceptassetforthinthefirstparagraphofthisdefinition.InterestonIndebtednessthatmayoptionallybedeterminedataninterestratebaseduponafactorofaprimeorsimilarrate,aeurocurrencyinterbankofferedrateorotherrateshallbedeemedtohavebeenbasedupontherateactuallychosen,or,ifnone,thenbaseduponsuchoptionalratechosenasEFIHmaydesignate.

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FixedChargesmeans,withrespecttoanyPersonforanyperiod,thesumof:

(1)ConsolidatedInterestExpenseofsuchPersonforsuchperiod

(2)allcashdividendsorotherdistributionspaid(excludingitemseliminatedinconsolidation)onanyseriesofPreferredStockduringsuchperiodand

(3)allcashdividendsorotherdistributionspaid(excludingitemseliminatedinconsolidation)onanyseriesofDisqualifiedStockduringsuchperiod.

ForeignSubsidiarymeans,withrespecttoanyPerson,anyRestrictedSubsidiaryofsuchPersonthatisnotorganizedorexistingunderthelawsoftheUnitedStates,anystateorterritorythereofortheDistrictofColumbiaandanyRestrictedSubsidiaryofsuchForeignSubsidiary.

GAAPmeansgenerallyacceptedaccountingprinciplesintheUnitedStateswhichareineffectontheClosingDate.

GlobalNoteLegendmeansthelegendsetforthinSection2.06(b)hereof,whichisrequiredtobeplacedonallGlobalNotesissuedunderthisIndenture.

GlobalNotesmeans,individuallyandcollectively,eachoftheGlobalNotesdepositedwithoronbehalfofandregisteredinthenameoftheDepositaryoritsnominee,substantiallyintheformofExhibitAandthatbearstheGlobalNoteLegendandthathastheScheduleofExchangesofInterestsintheGlobalNoteattachedthereto,issuedinaccordancewithSection2.01hereof.

GovernmentAuthoritymeansanynationorgovernment,anystate,province,territoryorotherpoliticalsubdivisionthereof,andanyentityexercisingexecutive,legislative,judicial,regulatoryoradministrativefunctionsoforpertainingtogovernment,includingwithoutlimitation,ERCOT.

GovernmentSecuritiesmeanssecuritiesthatare:

(1)directobligationsoftheUnitedStatesofAmericaforthetimelypaymentofwhichitsfullfaithandcreditispledgedor

(2)obligationsofaPersoncontrolledorsupervisedbyandactingasanagencyorinstrumentalityoftheUnitedStatesofAmericathetimelypaymentofwhichisunconditionallyguaranteedasafullfaithandcreditobligationbytheUnitedStatesofAmerica,

which,ineithercase,arenotcallableorredeemableattheoptionoftheissuersthereof,andshallalsoincludeadepositoryreceiptissuedbyabank(asdefinedinSection3(a)(2)oftheSecuritiesAct),ascustodianwithrespecttoanysuchGovernmentSecuritiesoraspecificpaymentofprincipaloforinterestonanysuchGovernmentSecuritiesheldbysuchcustodianfortheaccountoftheholderofsuchdepositoryreceiptprovidedthat(exceptasrequiredbylaw)suchcustodianisnotauthorizedtomakeanydeductionfromtheamountpayabletotheholderofsuchdepositoryreceiptfromanyamountreceivedbythecustodianinrespectoftheGovernmentSecuritiesorthespecificpaymentofprincipaloforinterestontheGovernmentSecuritiesevidencedbysuchdepositoryreceipt.

guaranteemeansaguarantee(otherthanbyendorsementofnegotiableinstrumentsforcollectionintheordinarycourseofbusiness),directorindirect,inanymanner(includinglettersofcreditandreimbursementagreementsinrespectthereof),ofalloranypartofanyIndebtednessorotherobligations.

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GuaranteemeanstheguaranteebyanyGuarantoroftheIssuersObligationsunderthisIndentureandtheNotes.

GuarantormeanseachRestrictedSubsidiarythatGuaranteestheNotesinaccordancewiththetermsofthisIndenture.

HazardousMaterialsmeans(a)anypetroleumorpetroleumproducts,radioactivematerials,friableasbestos,ureaformaldehydefoaminsulation,transformersorotherequipmentthatcontaindielectricfluidcontainingregulatedlevelsofpolychlorinatedbiphenylsandradongas(b)anychemicals,materialsorsubstancesdefinedasorincludedinthedefinitionofhazardoussubstances,toxicsubstances,toxicpollutants,contaminants,orpollutantsorwordsofsimilarimport,underanyapplicableEnvironmentalLawand(c)anyotherchemical,materialorsubstance,whichisprohibited,limitedorregulatedbyanyEnvironmentalLaw.

HedgingObligationsmeanswithrespecttoanyPerson,theobligationsofsuchPersonunder(a)anyandallrateswaptransactions,basisswaps,creditderivativetransactions,forwardratetransactions,commodityswaps,commodityoptions,forwardcommoditycontracts,equityorequityindexswapsoroptions,bondorbondpriceorbondindexswapsoroptionsorforwardbondorforwardbondpriceorforwardbondindextransactions,interestrateoptions,forwardforeignexchangetransactions,captransactions,floortransactions,collartransactions,currencyswaptransactions,crosscurrencyrateswaptransactions,currencyoptions,spotcontracts,oranyothersimilartransactionsoranycombinationofanyoftheforegoing(includinganyoptionstoenterintoanyoftheforegoing),whetherornotanysuchtransactionisgovernedbyorsubjecttoanymasteragreement,(b)anyandalltransactionsofanykind,andtherelatedconfirmations,whicharesubjecttothetermsandconditionsof,orgovernedby,anyformofmasteragreementpublishedbytheInternationalSwapsandDerivativesAssociation,Inc.,anyInternationalForeignExchangeMasterAgreementoranyothermasteragreement(anysuchmasteragreement,togetherwithanyrelatedschedules,aMasterAgreement),includinganysuchobligationsorliabilitiesunderanyMasterAgreementand(c)physicalorfinancialcommoditycontractsoragreements,powerpurchaseorsaleagreements,fuelpurchaseorsaleagreements,environmentalcreditpurchaseorsaleagreements,powertransmissionagreements,commoditytransportationagreements,fuelstorageagreements,nettingagreements(includingNettingAgreements),capacityagreementandcommercialortradingagreements,eachwithrespectto,orincludingthepurchase,sale,exchangeof(ortheoptiontopurchase,sellorexchange),transmission,transportation,storage,distribution,processing,sale,leaseorhedgeof,anyCoveredCommoditypriceorpriceindicesforanysuchCoveredCommodityorservicesoranyothersimilarderivativeagreements,andanyothersimilaragreements.

HoldermeansthePersoninwhosenameaNoteisregisteredontheregistrarsbooks.

IncrementalDepositL/CLoansmeansanyIncrementalDepositL/CLoansunder,andasdefinedin,anyCreditFacilities.

Indebtednessmeans,withrespecttoanyPerson,withoutduplication:

(1)anyindebtedness(includingprincipalandpremium)ofsuchPerson,whetherornotcontingent:

(a)inrespectofborrowedmoney

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(b)evidencedbybonds,notes,debenturesorsimilarinstrumentsorlettersofcreditorbankersacceptances(or,withoutduplication,reimbursementagreementsinrespectthereof)

(c)representingthebalancedeferredandunpaidofthepurchasepriceofanyproperty(includingCapitalizedLeaseObligations),except(i)anysuchbalancethatconstitutesatradepayableorsimilarobligationtoatradecreditor,ineachcaseaccruedintheordinarycourseofbusinessand(ii)anyearnoutobligationsuntilsuchobligationbecomesaliabilityonthebalancesheetofsuchPersoninaccordancewithGAAPor

(d)representinganyHedgingObligations

ifandtotheextentthatanyoftheforegoingIndebtedness(otherthanlettersofcreditandHedgingObligations)wouldappearasaliabilityuponabalancesheet(excludingthefootnotesthereto)ofsuchPersonpreparedinaccordancewithGAAP

(2)totheextentnototherwiseincluded,anyobligationbysuchPersontobeliablefor,ortopay,asobligor,guarantororotherwiseon,theobligationsofthetypereferredtoinclause(1)ofathirdPerson(whetherornotsuchitemswouldappearuponthebalancesheetofthesuchobligororguarantor),otherthanbyendorsementofnegotiableinstrumentsforcollectionintheordinarycourseofbusiness(fortheavoidanceofdoubt,theobligationsofthetypereferredtoinclause(1)shallnotincludeEFHCorp.sobligationstorepayindebtednesstoTCEHand/oritsSubsidiariesfromtimetotimeevidencedundernotesexistingontheIssueDate)and

(3)totheextentnototherwiseincluded,theobligationsofthetypereferredtoinclause(1)ofathirdPersonsecuredbyaLienonanyassetownedbysuchfirstPerson,whetherornotsuchIndebtednessisassumedbysuchfirstPersonprovidedthattheamountofIndebtednessofsuchfirstPersonforpurposesofthisclause(3)shallbedeemedtobeequaltothelesserof(i)theaggregateunpaidamountofsuchIndebtednessand(ii)thefairmarketvalueofthepropertyencumberedtherebyasdeterminedbysuchfirstPersoningoodfaith

provided,however,thatnotwithstandingtheforegoing,Indebtednessshallbedeemednottoinclude(a)ContingentObligationsincurredintheordinarycourseofbusinessor(b)obligationsunderorinrespectofReceivablesFacilitiesor(c)amountspayablebyandbetweenEFIHanditsSubsidiariesinconnectionwithretailclawbackorotherregulatorytransitionissues.

IndenturemeansthisIndenture,asamendedorsupplementedfromtimetotime.

IndependentFinancialAdvisormeansanaccounting,appraisal,investmentbankingfirmorconsultanttoPersonsengagedinSimilarBusinessesofnationallyrecognizedstandingthatis,inthegoodfaithjudgmentofEFIH,qualifiedtoperformthetaskforwhichithasbeenengaged.

InitialNoteshasthemeaningsetforthintherecitalshereto.

insolvencyorliquidationproceedingmeans:

(1)anycasecommencedbyoragainstEFIH,EFIHFinanceoranyGuarantorunderanyBankruptcyLawforthereliefofdebtors,anyotherproceedingforthereorganization,recapitalizationoradjustmentormarshallingoftheassetsorliabilitiesofEFIH,EFIHFinanceoranyGuarantor,anyreceivershiporassignmentforthebenefitofcreditorsrelatingtoEFIH,EFIHFinanceoranyGuarantororanysimilarcaseorproceedingrelativetoEFIH,EFIHFinanceoranyGuarantororitscreditors,assuch,ineachcasewhetherornotvoluntary

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(2)anyliquidation,dissolution,marshallingofassetsorliabilitiesorotherwindingupoforrelatingtoEFIH,EFIHFinanceoranyGuarantor,ineachcasewhetherornotvoluntaryandwhetherornotinvolvingbankruptcyorinsolvencyor

(3)anyotherproceedingofanytypeornatureinwhichsubstantiallyallclaimsofcreditorsofEFIH,EFIHFinanceoranyGuarantoraredeterminedandanypaymentordistributionisormaybemadeonaccountofsuchclaims.

IntercompanyLoanmeansasenior,unsecuredloanbyEFIHoranyofitsRestrictedSubsidiariestoEFHCorp.,withaninterestratecommensuratewithanarmslengthrelationship.

InterestPaymentDatemeansJune1andDecember1ofeachyeartoStatedMaturity.

InvestmentGradeRatingmeansaratingequaltoorhigherthanBaa3(ortheequivalent)byMoodys,BBB(ortheequivalent)byS&PoranequivalentratingbyanyotherRatingAgency.

InvestmentGradeSecuritiesmeans:

(1)securitiesissuedordirectlyandfullyguaranteedorinsuredbytheUnitedStatesgovernmentoranyagencyorinstrumentalitythereof(otherthanCashEquivalents)

(2)debtsecuritiesordebtinstrumentswithanInvestmentGradeRating,butexcludinganydebtsecuritiesorinstrumentsconstitutingloansoradvancesamongEFIHanditsSubsidiaries

(3)investmentsinanyfundthatinvestsexclusivelyininvestmentsofthetypedescribedinclauses(1)and(2)whichfundmayalsoholdimmaterialamountsofcashpendinginvestmentordistributionand

(4)correspondinginstrumentsincountriesotherthantheUnitedStatescustomarilyutilizedforhighqualityinvestments.

Investmentsmeans,withrespecttoanyPerson,allinvestmentsbysuchPersoninotherPersons(includingAffiliates)intheformofloans(includingguarantees),advancesorcapitalcontributions(excludingaccountsreceivable,tradecredit,advancestocustomers,commissions,travelandsimilaradvancestoofficersandemployees,ineachcasemadeintheordinarycourseofbusiness),purchasesorotheracquisitionsforconsiderationofIndebtedness,EquityInterestsorothersecuritiesissuedbyanyotherPersonandinvestmentsthatarerequiredbyGAAPtobeclassifiedonthebalancesheet(excludingthefootnotes)ofEFIHinthesamemannerastheotherinvestmentsincludedinthisdefinitiontotheextentsuchtransactionsinvolvethetransferofcashorotherproperty.

ForpurposesofthedefinitionofUnrestrictedSubsidiaryandSection4.07hereof:

(1)Investmentsshallincludetheportion(proportionatetoEFIHsequityinterestinsuchSubsidiary)ofthefairmarketvalueofthenetassetsofaSubsidiaryofEFIHatthetimethatsuchSubsidiaryisdesignatedanUnrestrictedSubsidiaryprovided,however,thatuponaredesignationofsuchSubsidiaryasaRestrictedSubsidiary,EFIHshallbedeemedtocontinuetohaveapermanentInvestmentinanUnrestrictedSubsidiaryinanamount(ifpositive)equalto:

(a)EFIHsInvestmentinsuchSubsidiaryatthetimeofsuchredesignationless

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(b)theportion(proportionatetoEFIHsequityinterestinsuchSubsidiary)ofthefairmarketvalueofthenetassetsofsuchSubsidiaryatthetimeofsuchredesignationand

(2)anypropertytransferredtoorfromanUnrestrictedSubsidiaryshallbevaluedatitsfairmarketvalueatthetimeofsuchtransfer,ineachcaseasdeterminedingoodfaithbyEFIH.

InvestorsmeansKohlbergKravisRoberts&Co.L.P.,TPGCapital,L.P.,J.P.MorganVenturesCorporation,CitigroupGlobalMarketsInc.,MorganStanley&Co.Incorporated,Goldman,Sachs&Co.andLBIGroup,Inc.andeachoftheirrespectiveAffiliatesbutnotincluding,however,anyportfoliocompaniesofanyoftheforegoing.

IssueDatemeansthefirstdateonwhichanyNotesareissuedintheExchangeOfferpursuanttothisIndenture.

IssuerhasthemeaningsetforthintherecitalsheretoanditssuccessorsunderArticle5.

JuniorLienmeansaLiengrantedbyasecuritydocumenttotheCollateralTrustee,atanytime,uponanyCollateraltosecureJuniorLienObligations.

JuniorLienDebtmeans:

(1)anyIndebtedness(includinglettersofcreditandreimbursementobligationswithrespectthereto)oftheIssueroranyGuarantorthatissecuredonasubordinatedbasistotheParityLienDebtbyaJuniorLienthatwaspermittedtobeincurredandsosecuredundereachapplicableSecuredDebtDocumentprovidedthat:

(a)onorbeforethedateonwhichsuchIndebtednessisincurredbytheIssuerorsuchGuarantor,suchIndebtednessisdesignatedbytheIssuer,inaccordancewiththeCollateralTrustAgreement,asJuniorLienDebtforthepurposesoftheSecuredDebtDocuments,includingtheCollateralTrustAgreementprovidedthatnoSeriesofSecuredLienDebtmaybedesignatedasbothJuniorLienDebtandParityLienDebt

(b)suchIndebtednessisgovernedbyanindenture,creditagreementorotheragreementthatincludesaLienSharingandPriorityConfirmationand

(c)allrequirementssetforthintheCollateralTrustAgreementastotheconfirmation,grantorperfectionoftheCollateralTrusteesLienstosecuresuchIndebtednessorObligationsinrespectthereofaresatisfied(andthesatisfactionofsuchrequirementsshallbeconclusivelyestablishediftheIssuerdeliverstotheCollateralTrusteeanOfficersCertificatestatingthatsuchrequirementshavebeensatisfiedandthatsuchIndebtednessisJuniorLienDebt)and

(2)HedgingObligationsoftheIssueroranyGuarantorincurredtohedgeormanageinterestrateriskwithrespecttoJuniorLienDebtprovidedthat,pursuanttothetermsoftheJuniorLienDocuments,suchHedgingObligationsaresecuredbyaJuniorLienonalloftheassetsandpropertiesthatsecuretheIndebtednessinrespectofwhichsuchHedgingObligationsareincurred.

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JuniorLienDocumentsmeans,collectively,anyindenture,creditagreementorotheragreementgoverningaSeriesofJuniorLienDebtandtheSecurityDocumentsthatcreateorperfectLienssecuringJuniorLienObligations.

JuniorLienObligationsmeansJuniorLienDebtandallotherObligationsinrespectthereof.

JuniorLienRepresentativemeans,inthecaseofanyfutureSeriesofJuniorLienDebt,thetrustee,agentorrepresentativeoftheholdersofsuchSeriesofJuniorLienDebtwho(a)isappointedasaJuniorLienRepresentative(forpurposesrelatedtotheadministrationoftheSecurityDocuments)pursuanttotheindenture,creditagreementorotheragreementgoverningsuchSeriesofJuniorLienDebt,togetherwithitssuccessorsinsuchcapacity,and(b)hasbecomeapartytotheCollateralTrustAgreementbyexecutingajoinderintheformrequiredundertheCollateralTrustAgreement.

LegalHolidaymeansaSaturday,aSundayoradayonwhichcommercialbankinginstitutionsarenotrequiredtobeopenintheStateofNewYork.

Lienmeans,withrespecttoanyasset,anymortgage,lien(statutoryorotherwise),pledge,hypothecation,charge,securityinterest,preference,priorityorencumbranceofanykindinrespectofsuchasset,whetherornotfiled,recordedorotherwiseperfectedunderapplicablelaw,includinganyconditionalsaleorothertitleretentionagreement,anyleaseinthenaturethereof,anyoptionorotheragreementtosellorgiveasecurityinterestinandanyfilingoforagreementtogiveanyfinancingstatementundertheUniformCommercialCode(orequivalentstatutes)ofanyjurisdictionprovidedthatinnoeventshallanoperatingleasebedeemedtoconstituteaLien.

LienSharingandPriorityConfirmationmeans:

(1)astoanySeriesofParityLienDebt,thewrittenagreementenforceableagainsttheholdersofsuchSeriesofParityLienDebt,assetforthintheapplicableSecuredDebtDocument:

(a)fortheenforceablebenefitofallholdersofeachexistingandfutureSeriesofParityLienDebtandeachexistingandfutureParityLienRepresentative,thatallParityLienObligationsshallbeandaresecuredequallyandratablybyallParityLiensatanytimegrantedbytheIssueroranyGuarantortosecureanyObligationsinrespectofsuchSeriesofParityLienDebt,andthatallsuchParityLiensshallbeenforceablebytheCollateralTrusteeforthebenefitofallholdersofParityLienObligationsequallyandratably

(b)fortheenforceablebenefitofallholdersofeachexistingandfutureSeriesofParityLienDebtandSeriesofJuniorLienDebt,andeachexistingandfutureParityLienRepresentativeandJuniorLienRepresentative,thattheholdersofObligationsinrespectofsuchSeriesofParityLienDebtareboundbytheprovisionsoftheCollateralTrustAgreement,includingtheprovisionsrelatingtotherankingofParityLiensandtheorderofapplicationofproceedsfromenforcementofParityLiensand

(c)consentingtoanddirectingtheCollateralTrusteetoperformitsobligationsundertheCollateralTrustAgreementandtheothersecuritydocumentsinrespectoftheSecuredDebtObligations.

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(2)astoanySeriesofJuniorLienDebt,thewrittenagreementenforceableagainsttheholdersofsuchSeriesofJuniorLienDebt,assetforthintheapplicableSecuredDebtDocument:

(a)fortheenforceablebenefitofallholdersofeachexistingandfutureSeriesofJuniorLienDebtandSeriesofParityLienDebtandeachexistingandfutureJuniorLienRepresentativeandParityLienRepresentative,thatallJuniorLienObligationsshallbeandaresecuredequallyandratablybyallJuniorLiensatanytimegrantedbytheIssueroranyGuarantortosecureanyObligationsinrespectofsuchSeriesofJuniorLienDebt,andthatallsuchJuniorLiensshallbeenforceablebytheCollateralTrusteeforthebenefitofallholdersofJuniorLienObligationsequallyandratably

(b)fortheenforceablebenefitofallholdersofeachexistingandfutureSeriesofParityLienDebtandSeriesofJuniorLienDebtandeachexistingandfutureParityLienRepresentativeandJuniorLienRepresentative,thattheholdersofObligationsinrespectofsuchSeriesofJuniorLienDebtareboundbytheprovisionsoftheCollateralTrustAgreement,includingtheprovisionsrelatingtotherankingofJuniorLiensandtheorderofapplicationofproceedsfromtheenforcementofJuniorLiensand

(c)consentingtoanddirectingtheCollateralTrusteetoperformitsobligationsundertheCollateralTrustAgreementandtheothersecuritydocumentsinrespectoftheSecuredDebtObligations.

MoodysmeansMoodysInvestorsService,Inc.andanysuccessortoitsratingagencybusiness.

NecessaryCapExDebtmeansIndebtednessofEFIHoranyofitsRestrictedSubsidiariesincurredforthepurposeoffinancingNecessaryCapitalExpenditures.

NecessaryCapitalExpendituresmeanscapitalexpendituresbyEFIHanditsRestrictedSubsidiariesthatarerequiredbyapplicablelaw(otherthanEnvironmentalLaw)orotherwiseundertakenvoluntarilyforhealthandsafetyreasons(otherthanasrequiredbyEnvironmentalLaw).ThetermNecessaryCapitalExpendituresdoesnotincludeanycapitalexpenditureundertakenprimarilytoincreasetheefficiencyof,expandorrepoweranypowergenerationfacility.

NetIncomemeans,withrespecttoanyPerson,thenetincome(loss)ofsuchPerson,determinedinaccordancewithGAAPandbeforeanyreductioninrespectofPreferredStockdividends.

NetProceedsmeanstheaggregatecashproceedsandCashEquivalentsreceivedbyEFIHoranyofitsRestrictedSubsidiariesinrespectofanyAssetSale(includingaCasualtyEvent),includinganycashandCashEquivalentsreceiveduponthesaleorotherdispositionofanyDesignatedNoncashConsiderationreceivedinanyAssetSale(includingaCasualtyEvent),netofthedirectcostsrelatingtosuchAssetSale(includingaCasualtyEvent)andthesaleordispositionofsuchDesignatedNoncashConsideration,includinglegal,accountingandinvestmentbankingfees,andbrokerageandsalescommissions,anyrelocationexpensesincurredasaresultthereof,taxespaidorpayableasaresultthereof(aftertakingintoaccountanyavailabletaxcreditsordeductionsandanytaxsharingarrangements),amountsrequiredtobeappliedusingproceedsfromAssetSales(otherthanAssetSalesofCollateralorotherOncorrelatedAssets)totherepaymentofprincipal,premium,ifany,andinterestonotherSeniorIndebtednessrequired(otherthanrequiredbyclause(1)ofSection4.10(b)hereof)tobepaidasaresultofsuchtransactionandanydeductionofappropriateamountstobeprovidedbyEFIHoranyofitsRestrictedSubsidiariesasareserveinaccordancewithGAAPagainstanyliabilitiesassociatedwiththe

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assetdisposedofinsuchtransactionandretainedbyEFIHoranyofitsRestrictedSubsidiariesaftersuchsaleorotherdispositionthereof,includingpensionandotherpostemploymentbenefitliabilitiesandliabilitiesrelatedtoenvironmentalmattersoragainstanyindemnificationobligationsassociatedwithsuchtransaction.

NettingAgreementshallmeananettingagreement,masternettingagreementorothersimilardocumenthavingthesameeffectasanettingagreementormasternettingagreementand,asapplicable,anycollateralannex,securityagreementorothersimilardocumentrelatedtoanymasternettingagreementorPermittedContract.

NotesmeanstheInitialNotes,andmoreparticularlymeansanyNoteauthenticatedanddeliveredunderthisIndenture.ForallpurposesofthisIndenture,thetermNotesshallals