Master PIPP Supply Agreement

AGR 00004

Question: Are each of The Cleveland Electric Illuminating Company, The Toledo Edison Company, and Ohio Edison Company jointly and severally liable or collectively liable for obligations of the “Companies” under the Master PIPP Supply Agreement? If not, please explain what their respective and collective liability is thereunder. Is a PIPP Supplier entitled to exercise rights and remedies (e.g., termination) against the Companies collectively, for example in the event that any particular Electricity Distribution Company (EDC) defaults and a consequent Event of Default occurs under the Master PIPP Supply Agreement?

Answer: It is the Companies' position that the Companies under the Master PIPP Supply Agreement are severally, but not jointly, liable. Each Company would be responsible for its proportionate share of liability.

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