THIRD AMENDMENT TO REIMBURSEMENT AGREEMENT
Exhibit
10(a)
THIRD
AMENDMENT TO REIMBURSEMENT AGREEMENT
THIS
THIRD AMENDMENT TO REIMBURSEMENT AGREEMENT, dated as of March 30, 2006 (this
“Amendment”),
to
the Existing Reimbursement Agreement (as defined below) is made by PPL ENERGY
SUPPLY, LLC, a Delaware limited liability company (the “Account
Party”),
and
certain of the Lenders (such capitalized term and other capitalized terms used
in this preamble and the recitals below to have the meanings set forth in,
or
are defined by reference in, Article
I
below).
W
I T
N E S S E T H:
WHEREAS,
the Account Party, the Lenders and The Bank of Nova Scotia, as the Issuer and
as
Administrative Agent, are all parties to the Reimbursement Agreement, dated
as
of March 31, 2005 (as amended or otherwise modified prior to the date hereof,
the “Existing
Reimbursement Agreement”,
and as
amended by this Amendment and as the same may be further amended, supplemented,
amended and restated or otherwise modified from time to time, the “Reimbursement
Agreement”);
WHEREAS,
the Account Party has requested that the Lenders amend certain provisions of
the
Existing Reimbursement Agreement (i) to extend the term of the Existing
Reimbursement Agreement for one year through March 31, 2007, and (ii) upon
the
expiration of the term of the Existing Reimbursement Agreement as so extended,
to permit the extension of the term of the Existing Reimbursement Agreement
for
an additional one year through March 31, 2008, and the Lenders are willing
to
modify the Existing Reimbursement Agreement to permit such extensions, on the
terms and subject to the conditions hereinafter set forth;
NOW,
THEREFORE, the parties hereto hereby covenant and agree as follows:
ARTICLE
I
DEFINITIONS
SECTION
1.1. Certain
Definitions.
The
following terms when used in this Amendment shall have the following meanings
(such meanings to be equally applicable to the singular and plural forms
thereof):
“Account
Party”
is
defined in the preamble.
“Amendment”
is
defined in the preamble.
“Amendment
Effective Date”
is
defined in Article
III.
“Existing
Reimbursement Agreement”
is
defined in the first
recital.
“Reimbursement
Agreement”
is
defined in the first
recital.
SECTION
1.2. Other
Definitions.
Terms
for which meanings are provided in the Reimbursement Agreement are, unless
otherwise defined herein or the context otherwise requires, used in this
Amendment with such meanings.
ARTICLE
II
AMENDMENTS
TO REIMBURSEMENT AGREEMENT
Effective
as of the date hereof, but subject to the occurrence of the satisfaction of
the
conditions in Article
III,
the
provisions of the Existing Reimbursement Agreement referred to below are hereby
amended in accordance with this Article
II.
Except
as expressly so amended, the Existing Reimbursement Agreement shall continue
in
full force and effect in accordance with its terms.
SECTION
2.1. Amendments
to Section 1.1.
Section
1.1 of the Existing Reimbursement Agreement is hereby amended by:
(a) inserting
the following definitions in the appropriate alphabetical order:
“Stated
Maturity Date”
means,
subject to Section
2.5,
March
31, 2007.
“Third
Amendment”
means
the Third Amendment to Reimbursement Agreement, dated as of March 30, 2006,
among the Account Party and the Lenders party thereto.
(b) amending
and restated the definition of “Commitment Termination Date” in its entirety as
follows:
“Commitment
Termination Date”
means
the earliest of
(a)
the
Stated Maturity Date;
(b) the
date
on which the Letter of Credit Commitment Amount is terminated in full or reduced
to zero pursuant to the terms of this Agreement; and
(c)
the date
on which any Commitment Termination Event occurs.
Upon
the
occurrence of any event described in the preceding clauses, the Letter of Credit
Commitment shall terminate automatically and without any further
action.
SECTION
2.2. Amendment
to Article II.
Article
II of
the
Existing Reimbursement Agreement is
hereby
amended by:
(a) deleting
the phrase “date set forth in clause (b) of the definition of Commitment
Termination Date” set forth each time it appears in Section 2.1 of the Existing
Reimbursement Agreement and replacing it with the phrase “Stated Maturity
Date”;
(b) inserting
a new Section 2.5 following Section 2.4 of the Existing Reimbursement Agreement
which reads as follows:
SECTION
2.5 Extension
of Stated Maturity Date.
Upon
the request of the Borrower, the Stated Maturity Date may automatically be
extended on March 31, 2007 for a period of one year to March 31, 2008;
provided
that, if
the Borrower wishes to request an extension of the Stated Maturity Date, it
shall (a) give written notice to that effect to the Administrative Agent prior
to February 28, 2007 and (b) together with such notice, the Borrower will pay
an
extension fee of $30,000 to the Administrative Agent payable ratably to each
Lender based on such Lender’s LC Percentage.
SECTION
2.3. Amendment
to Article X.
Clause
(b) of Section 10.1 of the Existing Reimbursement Agreement is hereby amended
by
inserting the phrase “or the Stated Maturity Date (other than as provided in
Section 2.5 hereof)” after the phrase “final Commitment Termination Date” in
such clause.
ARTICLE
III
CONDITIONS
TO EFFECTIVENESS
This
Amendment and the amendments contained herein shall become effective as of
the
date hereof when each of the conditions set forth in this Article
III
shall
have been fulfilled to the satisfaction of the Administrative
Agent.
SECTION
3.1. Counterparts.
The
Administrative Agent shall have received counterparts hereof executed on behalf
of the Account Party and the Required Lenders.
SECTION
3.2. Costs
and Expenses, etc.
The
Administrative Agent shall have received for the account of each Lender, all
fees, costs and expenses due and payable pursuant to Section 10.3 of the
Reimbursement Agreement, if then invoiced.
SECTION
3.3. Extension
Fee.
The
Administrative Agent shall have received for its own account an extension fee
from the Account Party in the amount of $30,000.
SECTION
3.4. Satisfactory
Legal Form.
The
Administrative Agent and its counsel shall have received all information, and
such counterpart originals or such certified or other copies of such materials,
as the Administrative Agent or its counsel may reasonably request, and all
legal
matters incident to the effectiveness of this Amendment shall be satisfactory
to
the Administrative Agent and its counsel. All documents executed or submitted
pursuant hereto or in connection herewith shall be reasonably satisfactory
in
form and substance to the Administrative Agent and its counsel.
ARTICLE
IV
MISCELLANEOUS
SECTION
4.1. Cross-References.
References in this Amendment to any Article or Section are, unless otherwise
specified, to such Article or Section of this Amendment.
SECTION
4.2. Loan
Document Pursuant to Existing Reimbursement Agreement.
This
Amendment is a Loan Document executed pursuant to the Existing Reimbursement
Agreement and shall (unless otherwise expressly indicated therein) be construed,
administered and applied in accordance with all of the terms and provisions
of
the Existing Reimbursement Agreement, as amended hereby, including
Article X thereof.
SECTION
4.3. Successors
and Assigns.
This
Amendment shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.
SECTION
4.4. Counterparts.
This
Amendment may be executed by the parties hereto in several counterparts, each
of
which when executed and delivered shall be an original and all of which shall
constitute together but one and the same agreement. Delivery of an executed
counterpart of a signature page to this Amendment by facsimile shall be
effective as delivery of a manually executed counterpart of this
Amendment.
SECTION
4.5. Governing
Law.
THIS
AMENDMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK).
SECTION
4.6. Full
Force and Effect; Limited Amendment.
Except as expressly amended hereby, all of the representations, warranties,
terms, covenants, conditions and other provisions of the Existing Reimbursement
Agreement and the Loan Documents shall remain unchanged and shall continue
to
be, and shall remain, in full force and effect in accordance with their
respective terms. The amendments set forth herein shall be limited precisely
as
provided for herein to the provisions expressly amended herein and shall not
be
deemed to be an amendment to, waiver of, consent to or modification of any
other
term or provision of the Existing Reimbursement Agreement or any other Loan
Document or of any transaction or further or future action on the part of any
Obligor which would require the consent of the Lenders under the Existing
Reimbursement Agreement or any of the Loan Documents.
SECTION
4.7. Representations
and Warranties.
In
order to induce the Lenders to execute and deliver this Amendment, the Account
Party hereby represents and warrants to the Lenders, on the date this Amendment
becomes effective pursuant to Article
III,
that
both before and after giving effect to this Amendment, all statements set forth
in Section 5.2.1 of the Reimbursement Agreement are true and correct as of
such
date, except to the extent that any such statement expressly relates to an
earlier date (in which case such statement was true and correct on and as of
such earlier date).
IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment
as of the date first above written.
PPL
ENERGY SUPPLY, LLC
By:__________________________
Title:
THE
BANK
OF NOVA SCOTIA
By:__________________________
Title:
