EXHIBIT 4.4
EXECUTION COPY
$475,000,000
NRG ENERGY, INC.
8% SECOND PRIORITY SENIOR SECURED NOTES DUE 2013
PURCHASE AGREEMENT
January 21, 2004
CREDIT SUISSE FIRST BOSTON LLC
XXXXXX BROTHERS INC.
c/o Credit Suisse First Boston LLC
Xxxxxx Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Ladies and Gentlemen:
NRG Energy, Inc., a Delaware corporation (the "Company"), proposes,
upon the terms and considerations set forth herein, to issue and sell to you, as
the initial purchasers (the "Initial Purchasers"), $475,000,000 in aggregate
principal amount of its 8% Second Priority Senior Secured Notes due 2013 (the
"Notes"). The Notes will (i) have terms and provisions that are summarized in
the Offering Circular (as defined below) and (ii) are to be issued pursuant to
the Indenture (the "Indenture"), dated December 23, 2003, among the Company, the
entities listed on Schedule I hereof (the "Guarantors") and Law Debenture Trust
Company of New York, as trustee (the "Trustee"). The Company's obligations under
the Notes, including the due and punctual payment of interest on the Notes, will
be unconditionally guaranteed (the "Guarantees") by the Guarantors. As used
herein, the term "Notes" shall include the Guarantees, unless the context
otherwise requires. This Purchase Agreement (this "Agreement") is to confirm the
agreement concerning the purchase of the Notes from the Company by the Initial
Purchasers.
The Company has previously issued $1,250,000,000 in aggregate principal
amount of its 8% Second Priority Senior Secured Notes due 2013 under the
Indenture (the "December 2003 Notes"). The December 2003 Notes are subject to an
exchange offer pursuant to which the December 2003 Notes will be exchanged for
the Exchange Notes (as defined below) (the "December 2003 Exchange Notes"). The
Notes constitute an additional issuance of notes under the Indenture. The Notes
will be treated as a single class of notes with the December 2003 Notes and upon
exchange for the Exchange Notes will be treated as a single class of notes with
the December 2003 Exchange Notes. The Guarantees will be treated as a single
class of guarantees with the guarantees of the December 2003 Notes and upon
exchange for the Exchange Guarantees (as defined below) will be treated as a
single class of guarantees with the exchange guarantees of the December 2003
Notes.
The Company, simultaneously with the sale of the December 2003 Notes,
obtained senior secured credit facilities of up to $1,450,000,000 under the
Credit Agreement (the "Credit Agreement"), dated December 23, 2003, by and among
the Company, NRG Power Marketing Inc. ("PMI"), the lenders party thereto, Credit
Suisse First Boston, acting through its Cayman Islands Branch, and Xxxxxx
Brothers Inc., as joint lead book runners and joint lead arrangers (in such
capacities, collectively, the "Arrangers"), Credit Suisse First Boston, acting
through its Cayman Islands Branch, as administrative agent (in such capacity and
together with its successors, the "Administrative Agent") and as collateral
agent (in such
capacity and together with its successors, the "Collateral Agent"), and Xxxxxx
Commercial Paper Inc. ("LCPI"), as syndication agent.
The obligations of the Company and the Guarantors with respect to the
Notes and the Guarantees, respectively, will be secured equally and ratably by
second priority security interests in the Collateral (as defined in the
Indenture) granted to Deutsche Bank Trust Company Americas, as collateral
trustee (the "Collateral Trustee") for the benefit of the holders of the Notes
and the Guarantees. These liens will be junior in priority to the liens securing
the Credit Agreement. The liens securing the Credit Agreement will also be held
by the Collateral Trustee.
Capitalized terms used by not defined in this Agreement shall have the
meanings assigned to them in the Indenture.
1. Offering Circular. The Notes will be offered and sold to the
Initial Purchasers without registration under the Securities Act of 1933, as
amended (the "Act"), in reliance on an exemption pursuant to Section 4(2) under
the Act. The Company and the Guarantors have prepared an offering circular,
dated January 21, 2004 (the "Offering Circular"), setting forth information
regarding the Company, the Guarantors, the Notes and the Guarantees. The Company
and the Guarantors hereby confirm that they have authorized the use of the
Offering Circular in connection with the offering and resale of the Notes by the
Initial Purchasers.
It is understood and acknowledged that upon original issuance thereof,
and until such time as the same is no longer required under the applicable
requirements of the Act, the Notes (and all securities issued in exchange
therefor, in substitution thereof) shall bear a legend substantially in the
following form (along with such other legends as the Initial Purchasers and
their counsel deem necessary):
"THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT") AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)(1) TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER WITHIN THE MEANING OF RULE 144A UNDER THE ACT PURCHASING FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE
TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER
THE ACT, (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO AN INSTITUTIONAL
ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE ACT OR (5) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES."
You have advised the Company that you will make offers (the "Exempt
Resales") of the Notes purchased by you hereunder on the terms set forth in the
Offering Circular, as amended or supplemented, solely to (i) persons whom you
reasonably believe to be "qualified institutional buyers" as defined in Rule
144A under the Act ("QIBs") and (ii) outside the United States to certain
persons in offshore transactions in reliance on Regulation S under the Act.
Those persons specified in clauses (i) and (ii) are referred to herein as the
("Eligible Purchasers"). You will offer the Notes to Eligible Purchasers
initially at a price equal to 106% of the principal amount thereof, plus accrued
and unpaid interest from December 23, 2003 to the Closing Date. Such price may
be changed at any time without notice.
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Holders (including subsequent transferees) of the Notes will have the
registration rights substantially in the form set forth in the registration
rights agreement attached hereto as Exhibit A (the "Registration Rights
Agreement") among the Company, the Guarantors and the Initial Purchasers to be
dated January 28, 2004 (the "Closing Date"), for so long as such Notes
constitute "Transfer Restricted Securities" (as defined in the Registration
Rights Agreement). Pursuant to the Registration Rights Agreement and the
registration rights agreement relating to the December 2003 Notes, the Company
and the Guarantors will agree to file with the United States Securities and
Exchange Commission (the "Commission") under the circumstances set forth
therein, a registration statement under the Act (the "Exchange Offer
Registration Statement") relating to the Company's 8% Second Priority Senior
Secured Notes to be offered in exchange for the Notes and the December 2003
Notes (the "Exchange Notes") and the Guarantors' Exchange Guarantees to be
offered in exchange for the Guarantees and the guarantees of the December 2003
Notes (the "Exchange Guarantees"). Such portion of the offering is referred to
as the "Exchange Offer."
2. Representations, Warranties and Agreements of the Company and
the Guarantors. The Company and each of the Guarantors, jointly and severally,
represent, warrant and agree as follows:
(a) When the Notes and the Guarantees are issued and
delivered pursuant to this Agreement, such Notes and Guarantees will not be of
the same class (within the meaning of Rule 144A under the Act) as securities of
the Company or the Guarantors that are listed on a national securities exchange
registered under Section 6 of the United States Securities Exchange Act of 1934,
as amended (the "Exchange Act") or that are quoted in a United States automated
inter-dealer quotation system.
(b) Neither the Company nor any of its subsidiaries is,
or after giving effect to the offering and sale of the Notes and upon
application of the proceeds as described under the caption "Use of Proceeds" in
the Offering Circular will be, an "investment company" or a company "controlled"
by an "investment company" within the meaning of the Investment Company Act of
1940, as amended.
(c) Assuming that your representations and warranties in
Section 3(b) are true, the purchase and resale of the Notes pursuant hereto
(including pursuant to the Exempt Resales) is exempt from the registration
requirements of the Act. No form of general solicitation or general advertising
within the meaning of Regulation D (including, but not limited to,
advertisements, articles, notices or other communications published in any
newspaper, magazine or similar medium or broadcast over television or radio, or
any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising) was used by the Company, the Guarantors or
any of their respective representatives (other than you, as to whom the Company
and the Guarantors make no representation) in connection with the offer and sale
of the Notes.
(d) No form of general solicitation or general
advertising was used by the Company, the Guarantors or any of their respective
representatives (other than you, as to whom the Company and the Guarantors make
no representation) with respect to Notes sold outside the United States to
non-U.S. persons (as defined in Rule 902 under the Act), by means of any
directed selling efforts within the meaning of Rule 902 under the Act, and the
Company, any affiliate of the Company and any person acting on its or their
behalf (other than you, as to when the Company and the Guarantors make no
representation) has complied with and will implement the "offering restrictions"
required by Rule 902.
(e) The Offering Circular, as amended or supplemented, as
of its date, contains all the information specified in, and meeting the
requirements of Rule 144A(d)(4) under the Act.
(f) The Offering Circular has been prepared by the
Company and the Guarantors for use by the Initial Purchasers in connection with
the Exempt Resales. No order or decree preventing the
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use of the Offering Circular, or any order asserting that the transactions
contemplated by this Agreement are subject to the registration requirements of
the Act has been issued and no proceeding for that purpose has commenced or is
pending or, to the knowledge of the Company or any of the Guarantors is
contemplated.
(g) The Offering Circular, and any amendments or
supplements thereto, as of its date and the Closing Date, did not and will not
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements made
therein, in light of the circumstances under which they were made, not
misleading, except that this representation and warranty does not apply to
statements in or omissions from the Offering Circular made in reliance upon and
in conformity with information relating to the Initial Purchasers furnished to
the Company in writing by or on behalf of the Initial Purchasers expressly for
use therein.
(h) The market-related and customer-related data and
estimates included under the captions "Summary" and "Business" in the Offering
Circular are based on or derived from sources that the Company believes to be
reliable and accurate in all material respects.
(i) The Company, the Guarantors and each of their
respective subsidiaries have been duly organized and are validly existing and in
good standing under the laws of their respective jurisdictions of organization,
are duly qualified to do business and are in good standing as foreign
corporations in each jurisdiction in which their respective ownership or lease
of property or the conduct of their respective businesses requires such
qualification (except such failures to qualify as are not, either individually
or in the aggregate, material to the Company and its subsidiaries taken as a
whole), and have all power and authority necessary to own or hold their
respective properties and to conduct the businesses in which they are engaged.
(j) The Company and each Guarantor has the capitalization
as set forth in the Offering Circular, and all of the issued shares of capital
stock of the Company and each Guarantor have been duly authorized and validly
issued and are fully paid and non-assessable; and all of the issued shares of
capital stock of each subsidiary of the Company have been duly and validly
authorized and issued and are fully paid and non-assessable and (except (i) for
directors' qualifying shares or foreign national qualifying capital stock, (ii)
as otherwise set forth in the Offering Circular and (iii) as pledged to secure
indebtedness of the Company and/or its subsidiaries pursuant to credit
facilities, indentures and other instruments evidencing indebtedness as
contemplated by the Offering Circular and existing on the Closing Date) are
owned directly or indirectly by the Company or each Guarantor, free and clear of
all liens, encumbrances, equities or claims.
(k) The Indenture has been duly and validly authorized,
executed and delivered by the Company and the Guarantors, and assuming due
authorization, execution and delivery by the Trustee, constitutes the valid and
binding agreement of the Company and the Guarantors, enforceable against the
Company and the Guarantors in accordance with its terms, except as such
enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium, and other laws relating to or affecting creditors'
rights generally and by general equitable principles; no qualification of the
Indenture under the Trust Indenture Act of 1939 (the "1939 Act") is required in
connection with the offer and sale of the Notes contemplated hereby or in
connection with the Exempt Resales.
(l) The Indenture conforms in all material respects to
the description thereof in the Offering Circular.
(m) The Company has all requisite corporate power and
authority to issue and sell the Notes. The Notes have been duly authorized by
the Company and, when duly executed by the Company
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in accordance with the terms of the Indenture, assuming due authentication of
the Notes by the Trustee, upon delivery to the Initial Purchasers against
payment therefor in accordance with the terms hereof, will be validly issued and
delivered, and will constitute valid and binding obligations of the Company
entitled to the benefits of the Indenture, enforceable against the Company in
accordance with their terms, except as such enforceability may be limited by
bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium, and
other laws relating to or affecting creditors' rights generally and by general
equitable principles.
(n) The Notes will conform in all material respects to
the description thereof in the Offering Circular.
(o) The Company has all requisite corporate power and
authority to issue the Exchange Notes. The Exchange Notes have been duly and
validly authorized by the Company and if and when duly issued and authenticated
in accordance with the terms of the Indenture and delivered in accordance with
the Exchange Offer provided for in the Registration Rights Agreement, will
constitute valid and binding obligations of the Company entitled to the benefits
of the Indenture, enforceable against the Company in accordance with their
terms, except as such enforceability may be limited by bankruptcy, fraudulent
conveyance, insolvency, reorganization, moratorium, and other laws relating to
or affecting creditors' rights generally and by general equitable principles.
(p) Each Guarantor has all requisite corporate power and
authority to issue the Guarantees. The Guarantees have been duly and validly
authorized by the Guarantors and when duly executed and delivered by the
Guarantors in accordance with the terms of the Indenture and upon the due
execution, authentication and delivery of the Notes in accordance with the
Indenture and the issuance of the Notes in the sale to the Initial Purchasers
contemplated by this Agreement, will constitute valid and binding obligations of
the Guarantors, enforceable against the Guarantors in accordance with their
terms, except as such enforceability may be limited by bankruptcy, fraudulent
conveyance, insolvency, reorganization, moratorium, and other laws relating to
or affecting creditors' rights generally and by general equitable principles.
(q) The Guarantees will conform in all material respects
to the description thereof in the Offering Circular.
(r) Each Guarantor has all requisite corporate power and
authority to issue the Exchange Guarantees. The Exchange Guarantees have been
duly and validly authorized by the Guarantors and if and when duly executed and
delivered by the Guarantors in accordance with the terms of the Indenture and
upon the due execution and authentication of the Exchange Notes in accordance
with the Indenture and the issuance and delivery of the Exchange Notes in the
Exchange Offer contemplated by the Registration Rights Agreement, will
constitute valid and binding obligations of the Guarantors, entitled to the
benefits of the Indenture, enforceable against the Guarantors in accordance with
their terms, except as such enforceability may be limited by bankruptcy,
fraudulent conveyance, insolvency, reorganization, moratorium, and other laws
relating to or affecting creditors' rights generally and by general equitable
principles.
(s) The Company and each Guarantor has all requisite
corporate power and authority to enter into the Registration Rights Agreement.
The Registration Rights Agreement has been duly authorized by the Company and
each Guarantor and, when executed and delivered by the Company and each
Guarantor in accordance with the terms hereof and thereof, will be validly
executed and delivered and (assuming the due authorization, execution and
delivery thereof by you) will be the legally valid and binding obligation of the
Company and each Guarantor in accordance with the terms thereof, enforceable
against the Company and each Guarantor in accordance with its terms, except as
such enforceability may
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be limited by bankruptcy, insolvency, reorganization, moratorium and other
similar laws relating to or affecting creditor's rights generally, by general
equitable principles (regardless of whether such enforceability is considered in
a proceeding in equity or at law) and, as to rights of indemnification and
contribution, by principles of public policy.
(t) The Registration Rights Agreement will conform in all
material respects to the description thereof in the Offering Circular.
(u) The Credit Agreement conforms in all material
respects to the description thereof in the Offering Circular.
(v) Each Guarantor that is a party to an Amendment of
Open-End Mortgage (as defined on Schedule III hereof) has all requisite power
and authority (corporate or other) to enter into such Amendment of Open-End
Mortgage. Each of the mortgages or deeds of trust listed on Schedule III hereof,
including the Amendments of Open-End Mortgage (the "Mortgages"), and the
documents listed on Schedule II hereof (together with the Mortgages, the
"Security Documents") has been duly authorized by the Company and each Guarantor
(as applicable) and, when executed and delivered by the Company and each
Guarantor (as applicable) in accordance with the terms thereof, will be validly
executed and delivered and (assuming the due authorization, execution and
delivery thereof by the other parties thereto) will be the legally valid and
binding obligation of the Company and each Guarantor (as applicable) in
accordance with the terms thereof, enforceable against the Company and each
Guarantor (as applicable) in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and other similar laws relating to or affecting creditor's rights
generally, by general equitable principles (regardless of whether such
enforceability is considered in a proceeding in equity or at law) and, as to
rights of indemnification and contribution, by principles of public policy.
(w) When the Security Documents (other than the
Amendments to Open-End Mortgage) were executed and delivered to the Collateral
Trustee on December 23, 2003, the Security Documents granted and created, in
favor of the Collateral Trustee, for the benefit of the Parity Lien Secured
Parties, as security for all of the Parity Lien Obligations (including the
Notes), a valid second priority security interest in the Collateral defined in
each of such instruments. When the Amendments to Open-End Mortgage are executed
and delivered to the Collateral Trustee on the Closing Date, the Amendments to
Open-End Mortgage will grant and create, in favor of the Collateral Trustee, for
the benefit of the Parity Lien Secured Parties, as security for all of the
Parity Lien Obligations (including the Notes), a valid second priority security
interest in the Collateral defined in each of such instruments. When the
Financing Statements (as defined in Section 7(j)) were filed, such second
priority security interests were perfected security interests and/or mortgage
liens (subject only to Permitted Prior Liens and the provisions with respect to
priority set forth in the Collateral Trust Agreement). When each Mortgage (other
than the Amendments to Open-End Mortgage) was delivered on December 23, 2003,
each such Mortgage was delivered, duly acknowledged and, if required for
recordation, attested and otherwise in recordable form. When Amendments to
Open-End Mortgage are delivered on the Closing Date, each such Amendment to
Open-End Mortgage will be delivered, duly acknowledged and, if required for
recordation, attested and otherwise will be in recordable form. On December 23,
2003, (x) all pledged Collateral constituting Capital Stock was represented by
certificated securities and (y) all such certificated securities and all
promissory notes and other instruments then evidencing or representing any
Collateral was delivered to the Collateral Trustee in pledge for the benefit of
the Parity Lien Secured Parties, as security for all of the Parity Lien
Obligations (including the Notes), on a second priority basis, duly endorsed by
an effective endorsement.
(x) At the Closing Date, the representations and
warranties contained in the Security Documents shall be true and correct in all
material respects.
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(y) The Company and each Guarantor has all requisite
corporate power and authority to enter into this Agreement. This Agreement has
been duly authorized, executed and delivered by the Company and the Guarantors.
(z) The issue and sale of the Notes and the Guarantees,
the compliance by the Company and the Guarantors with all of the provisions of
the Notes, the Guarantees, the Exchange Notes, the Exchange Guarantees, the
Indenture, the Registration Rights Agreement, the Security Documents and this
Agreement, the consummation of the transactions contemplated hereby and thereby
and the grant and perfection of the security interests in the Collateral
pursuant to the Security Documents (i) will not conflict with or result in a
breach or violation of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement, lease or
other agreement or instrument to which the Company, the Guarantors or any of
their respective subsidiaries is a party or by which the Company, the Guarantors
or any of their respective subsidiaries is bound or to which any of the property
or assets of the Company, the Guarantors or any of their respective subsidiaries
is subject, (ii) will not result in any violation of the provisions of the
charter or by-laws of the Company, the Guarantors or any of their respective
subsidiaries or (iii) will not violate any statute or any order, rule or
regulation of any court or governmental agency or body having jurisdiction over
the Company, the Guarantors or any of their respective subsidiaries or any of
their properties or assets; and no consent, approval, authorization or order of,
or filing, registration or qualification with any such court or governmental
agency or body is required for the issue and sale of the Notes and the
Guarantees, the consummation by the Company and the Guarantors of the
transactions contemplated by this Agreement, the Security Documents, the
Registration Rights Agreement or the Indenture or the grant and perfection of
the security interest in the Collateral pursuant to the Security Documents,
except (u) in the cases of clauses (i) and (iii) only, for such defaults,
violations and failures as would not reasonably be expected to have, either
individually or in the aggregate, a material adverse change, or any development
involving a prospective material adverse change, in or affecting the management,
condition, financial or otherwise, stockholders' equity, results of operations,
business or prospects of the Company and its subsidiaries, taken as a whole (a
"Material Adverse Effect"); (w) such consent, approvals, authorizations, orders
or, or filings, registrations or qualifications that have been obtained or where
failure to do so would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect; (x) the filing of a registration
statement by the Company with the Commission pursuant to the Act as required by
the Registration Rights Agreement; (y) such consents, approvals, authorizations,
orders, filings, registrations or qualifications as may be required under state
securities or Blue Sky laws in connection with the purchase and distribution of
the Notes by the Initial Purchasers; and (z) filings required to perfect the
Collateral Trustee's security interests granted pursuant to the Security
Documents.
(aa) Except as described in the Offering Circular, there
are no contracts, agreements or understandings between the Company, any
Guarantor and any person granting such person the right to require the Company
or any Guarantor to file a registration statement under the Act with respect to
any securities of the Company or any Guarantor (other than the Registration
Rights Agreement and the registration rights agreement relating to the December
2003 Notes) owned or to be owned by such person or to require the Company or any
Guarantor to include such securities in the securities registered pursuant to
the Registration Rights Agreement or in any securities being registered pursuant
to any other registration statement filed by the Company or any Guarantor under
the Act.
(bb) Except (i) with respect to, and in accordance with,
the NRG plan of reorganization (as defined in the Offering Circular), (ii) for
the December 2003 Notes and (iii) as otherwise disclosed in the Offering
Circular, during the six-month period preceding the date of the Offering
Circular, none of the Company, the Guarantors or any other person acting on
behalf of the Company or any Guarantor has offered or sold to any person any
Notes or Guarantees, or any securities of the same or a similar class as the
Notes or Guarantees, other than Notes or Guarantees offered or sold
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to the Initial Purchasers hereunder. The Company and the Guarantors will take
reasonable precautions designed to insure that any offer or sale, direct or
indirect, in the United States or to any U.S. person (as defined in Rule 902
under the Act), of any Notes or any substantially similar security issued by the
Company or any Guarantor, within six months subsequent to the date on which the
distribution of the Notes has been completed (as notified to the Company by the
Initial Purchaser), is made under restrictions and other circumstances
reasonably designed not to affect the status of the offer and sale of the Notes
in the United States and to U.S. persons contemplated by this Agreement as
transactions exempt from the registration provisions of the Act; including any
sales pursuant to Rule 144A under, or Regulations D or S of, the Act.
(cc) Neither the Company, the Guarantors nor any of their
respective subsidiaries has sustained, since the date of the latest audited
financial statements included in the Offering Circular, any material loss or
interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or court or
governmental action, order or decree, otherwise than as set forth or
contemplated in the Offering Circular; and, since such date, there has not been
any change in the stockholders' equity or long-term debt of the Company, the
Guarantors or any of their respective subsidiaries or any Material Adverse
Effect otherwise than as set forth or contemplated in the Offering Circular.
(dd) The financial statements (including the related notes
and supporting schedules) included in the Offering Circular present fairly the
financial condition and results of operations of the entities purported to be
shown thereby, at the dates and for the periods indicated, and have been
prepared in conformity with generally accepted accounting principles applied on
a consistent basis throughout the periods involved.
(ee) PricewaterhouseCoopers LLP, who have certified
certain financial statements of the Company, whose report appears in the
Offering Circular and who have delivered the initial letter referred to in
Section 7(l) hereof, are independent public accountants as required by the Act
and the rules and regulations promulgated thereunder (the "Rules and
Regulations") during the periods covered by the financial statements on which
they reported contained in the Offering Circular.
(ff) The Company, the Guarantors and each of their
respective subsidiaries has good and marketable title in fee simple to all real
property and good and marketable title to all personal property owned by them,
in each case free and clear of all liens, encumbrances and defects, except as
are described in the Offering Circular and as do not materially affect the value
of the property of the Company and its subsidiaries taken as a whole and do not
materially interfere with the use made and proposed to be made of such property
by the Company, the Guarantors or any of their respective subsidiaries; no
Financing Statements in respect of any property or assets of the Company and the
Guarantors will be on file in favor of any person other than those in respect of
Permitted Prior Liens and those to be terminated with respect to existing
indebtedness; and all real property and buildings held under lease by the
Company, the Guarantors or any of their respective subsidiaries are held by them
under valid, subsisting and enforceable leases, with such exceptions as are not
material and do not interfere with the use made and proposed to be made of such
property and buildings by the Company, the Guarantors or any of their respective
subsidiaries.
(gg) The Company, the Guarantors and each of their
respective subsidiaries carry, or are covered by, insurance in such amounts and
covering such risks as is adequate for the conduct of their respective
businesses and the value of their respective properties and as is customary for
companies engaged in similar businesses in similar industries, except as would
not reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect.
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(hh) The Company, the Guarantors and each of their
respective subsidiaries (i) own or possess adequate rights to use all material
patents, patent applications, trademarks, service marks, trade names, trademark
registrations, service mark registrations, copyrights and licenses necessary for
the conduct of their respective businesses and (ii) have no reason to believe
that the conduct of their respective businesses will conflict with, and have not
received any notice of any claim of conflict with, any such rights of others,
except with respect to clause (ii) as would not reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect.
(ii) Except as described in the Offering Circular, there
are no legal or governmental proceedings pending to which the Company or any of
its subsidiaries is a party or of which any property or assets of the Company or
any of its subsidiaries is the subject that, if determined adversely to the
Company or any of its subsidiaries, could have a Material Adverse Effect, and to
the best of the Company's and each Guarantors' knowledge, no such proceedings
are threatened or contemplated by governmental authorities or threatened by
others.
(jj) No relationship, direct or indirect, that would be
required to be described in a Company's registration statement pursuant to Item
404 of Regulation S-K, exists between or among the Company or any Guarantor on
the one hand, and the (i) directors or officers, (ii) nominees for directors,
(iii) stockholders owning of record or beneficially owning more than 5% of any
class of the Company's or any Guarantors' voting securities, or (iv) any
immediate family member of any of the foregoing, of the Company or any
Guarantor, on the other hand, that has not been described in the Offering
Circular.
(kk) No labor disturbance by the employees of the Company
or any of its subsidiaries exists or, to the knowledge of the Company or any of
its subsidiaries, is imminent that could be expected to have a Material Adverse
Effect.
(ll) The Company is in compliance in all material respects
with all presently applicable provisions of the Employee Retirement Income
Security Act of 1974, as amended, including the regulations and published
interpretations thereunder ("ERISA"); no "reportable event" (as defined in
ERISA) has occurred with respect to any "pension plan" (as defined in ERISA) for
which the Company or any Guarantor would have any liability; neither the Company
nor any Guarantor has incurred and does not expect to incur liability under (i)
Title IV of ERISA with respect to termination of, or withdrawal from, any
"pension plan" or (ii) Sections 412 or 4971 of the Internal Revenue Code of
1986, as amended, including the regulations and published interpretations
thereunder (the "Code"); and each "pension plan" for which the Company or any
Guarantor would have any liability that is intended to be qualified under
Section 401(a) of the Code is so qualified in all material respects and nothing
has occurred, whether by action or by failure to act, which would cause the loss
of such qualification.
(mm) The Company and each Guarantor has filed all federal,
state and local income and franchise tax returns required to be filed through
the date hereof and has paid all taxes due thereon, and no tax deficiency has
been determined adversely to the Company, the Guarantors or any of their
respective subsidiaries that has had (nor does the Company or any Guarantor have
any knowledge of any tax deficiency that, if determined adversely to the
Company, the Guarantors or any of their respective subsidiaries, might have) or
could reasonably be expected to have a Material Adverse Effect.
(nn) Since December 23, 2003 through the date hereof,
except as may otherwise be disclosed in the Offering Circular, neither the
Company nor any Guarantor has (i) issued or granted any securities (other than
the December 2003 Notes), (ii) incurred any liability or obligation, direct or
contingent, other than liabilities and obligations that were incurred in the
ordinary course of business, (iii) entered into any transaction not in the
ordinary course of business or (iv) declared or paid any dividend on its capital
stock.
9
(oo) Except as disclosed in the Offering Circular, the
Company and each Guarantor (i) makes and keeps accurate books and records and
(ii) maintains internal accounting controls that provide reasonable assurance
that (A) transactions are executed in accordance with management's
authorization, (B) transactions are recorded as necessary to permit preparation
of its financial statements and to maintain accountability for its assets, (C)
access to its assets is permitted only in accordance with management's
authorization and (D) the reported accountability for its assets is compared
with existing assets at reasonable intervals.
(pp) Except as disclosed in the Offering Circular, neither
the Company, the Guarantors nor any of their respective subsidiaries (i) is in
violation of its charter, by-laws or applicable organizational documents, (ii)
is in default in any material respect, and no event has occurred that, with
notice or lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant, condition or other obligation
contained in any material indenture, mortgage, deed of trust, loan agreement or
other agreement or instrument to which it is a party or by which it is bound or
to which any of its properties or assets is subject or (iii) is in violation in
any material respect of any law, ordinance, governmental rule, regulation or
court decree to which it or its property or assets may be subject or has failed
to obtain or maintain any material license, permit, certificate, franchise or
other governmental authorization or permit necessary to the ownership of its
property or to the conduct of its business.
(qq) Neither the Company, the Guarantors nor any of their
respective subsidiaries, nor, to the Company's knowledge, any director, officer,
agent, employee or other person associated with or acting on behalf of the
Company, the Guarantors or any of their respective subsidiaries, has used any
corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expense relating to political activity; made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from
corporate funds; violated or is in violation of any provision of the Foreign
Corrupt Practices Act of 1977; or made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment.
(rr) Except as disclosed in the Offering Circular, and
except for such matters as would not, individually or in the aggregate, either
result in a Material Adverse Effect or require disclosure in the Offering
Circular, the Company, the Guarantors and any of their respective subsidiaries
(1) are conducting and have conducted their businesses, operations and
facilities in compliance with Environmental Laws (as defined below); (2) have
duly obtained, possess, maintain in full force and effect, and have fulfilled
and performed all of their obligations under any and all permits, licenses or
registrations required under Environmental Law ("Environmental Permits"); (3)
are not party to, or otherwise bound by, any written contract under which the
Company or any of its subsidiaries is obligated by any representation, warranty,
indemnification, covenant or restriction to undertake any material liability
under Environmental Law or related to the remediation of any Hazardous
Substances (as defined below); (4) have not received any written notice from a
governmental authority or any other third party alleging any violation of
Environmental Law or liability thereunder (including, without limitation,
liability as a "potentially responsible party" and/or for costs of investigating
or remediating sites containing Hazardous Substances and/or damages to natural
resources); (5) are not subject to any pending or, to the knowledge of the
Company, the Guarantors or any of their respective subsidiaries, threatened
claim or other legal proceeding under any Environmental Laws against the Company
or its subsidiaries; and (6) do not have any knowledge of any pending
Environmental Law, or any unsatisfied condition in an Environmental Permit, or
any release of Hazardous Substances that, individually or in the aggregate,
would reasonably be expected to form the basis of any such claim or legal
proceeding against the Company or its subsidiaries or to require any material
capital expenditures to maintain the Company's or the subsidiaries' compliance
with Environmental Law or with their Environmental Permits. As used in this
paragraph, "Environmental Laws" means any and all applicable federal, state,
local, and foreign laws,
10
statutes, ordinances, rules, regulations, enforceable requirements and common
law, or any enforceable administrative or judicial interpretation, order,
consent, decree or judgment thereof, relating to pollution or the protection of
human health or the environment, including, without limitation, those relating
to, regulating, or imposing liability or standards of conduct concerning (i)
noise or odor; (ii) emissions, discharges, releases or threatened releases of
Hazardous Substances into ambient air, surface water, groundwater or land; (iii)
the generation, manufacture, processing, distribution, use, treatment, storage,
disposal, release, transport or handling of, or exposure to, Hazardous
Substances; or (iv) the investigation, remediation or cleanup of any Hazardous
Substances. As used in this paragraph, "Hazardous Substances" means pollutants,
contaminants or hazardous, dangerous, toxic, biohazardous or infectious
substances, materials, constituents or wastes or toxins, petroleum, petroleum
products and their breakdown constituents, or any other hazardous or toxic
chemical substance regulated under Environmental Laws or exhibiting a hazardous
waste characteristic including but not limited to corrosivity, ignitability,
toxicity, or reactivity, whether solid, gaseous or liquid in nature.
(ss) The order confirming the (i) NRG plan of
reorganization and (ii) joint plan of reorganization with respect to NRG
Northeast Generating LLC and NRG South Central Generating LLC, that were filed
under Chapter 11 of the Bankruptcy Code (each, a "Plan") were entered on
November 24, 2003 and November 25, 2003, respectively (each, a "Confirmation
Orders"). Notice of the Confirmation Orders was provided in accordance with
Federal Rule of Bankruptcy Procedure Rules 2002(b) and 3017(d). After due
inquiry, as of 5:00 p.m. on January 21, 2004, there was no order, notice or
motion filed or pending to appeal, reverse, stay, vacate or modify either of the
Confirmation Orders, except with respect to the Stipulation Order entered into
between the Company and the New York State Public Service Commission.
(tt) None of the transactions contemplated by this
Agreement (including, without limitation, the use of the proceeds from the sale
of the Notes), will violate or result in a violation of Section 7 of the
Exchange Act, or any regulation promulgated thereunder, including, without
limitation, Regulations T, U and X of the Board of Governors of the Federal
Reserve System.
(uu) The statements set forth in the Offering Circular
under the caption "Description of Notes," insofar as they purport to constitute
a summary of the terms of the Notes, the Guarantees and the Security Documents,
and under the captions "Certain Federal Income Tax Consequences," "Certain
Relationships and Related Transactions," "Description of Certain Indebtedness,"
"Management--Employment Agreements" and "Plan of Distribution", insofar as they
purport to describe the provisions of the laws and documents referred to
therein, are accurate in all material respects.
(vv) Prior to the date hereof, neither the Company, the
Guarantors nor any of their respective affiliates nor any person acting on its
or their behalf (other than you, as to whom the Company and the Guarantors make
no representation) has taken any action that is designed to or that has
constituted or that might have been expected to cause or result in stabilization
or manipulation of the price of any security of the Company or the Guarantors in
connection with the offering of the Notes.
(ww) Neither the Company nor any "affiliate" of the
Company (other than FirstEnergy Inc. and its affiliates (collectively,
"FirstEnergy")) is, or after giving effect to the issuance and sale of the Notes
and Guarantees, will become, subject to regulation as (i) a "holding company,"
(ii) a "subsidiary company" of a "holding company" or (iii) a "public-utility
company," in each case as such terms are defined in the Public Utility Holding
Company Act of 1935 and the rules and regulations promulgated thereunder, as
amended from time to time ("PUHCA"). As of the Closing Date, none of the Company
or any of the affiliates of the Company (other than FirstEnergy) shall be a
"subsidiary company" of a "holding company," in each case as such terms are
defined in PUHCA.
11
(xx) Except as described herein, none of the Company, the
Guarantors or any of the Company's subsidiaries is subject to regulation as a
"public utility" as such term is defined in the Federal Power Act and the rules
and regulations promulgated thereunder, as amended from time to time (the
"FPA"), other than (i) as a power marketer or an owner of generator leads, which
has market-based rate authority under Section 205 of the FPA or (ii) as a
"qualifying facility" ("QF") under the Public Utility Regulatory Policies Act of
1978 and the rules and regulations promulgated thereunder, as amended from time
to time ("PURPA"), as contemplated by 18 C.F.R. Section 292.601(c). Except as
set forth in Schedule IV, each of the Company and any of the Guarantors and the
Company's subsidiaries that is subject to regulation as a "public utility" as
such term is defined in the FPA has validly issued orders from the Federal
Energy Regulatory Commission ("FERC"), not subject to any pending challenge,
investigation or proceeding (other than the FERC's generic proceeding initiated
in Docket No. EL01-118-000) (x) authorizing such person to engage in wholesale
sales of electricity and, to the extent permitted under its market-based rate
tariff, other transactions at market-based rates and (y) granting such waivers
and blanket authorizations as are customarily granted to entities with
market-based rate authority, including blanket authorizations to issue
securities and to assume liabilities pursuant to Section 204 of the FPA;
provided, however, FERC has indicated in at least one order that it will treat
the Company as a "public utility" for purposes of Section 204 of the FPA. The
Company does not have blanket authorizations to issue securities and assume
liabilities pursuant to Section 204 of the FPA. Except as set forth in Schedule
IV, with respect to each person described in the second sentence of this clause
(xx), FERC has not imposed any rate caps or mitigation measures other than rate
caps and mitigation measures generally applicable to similarly situated
marketers or generators selling electricity, ancillary services or other
services at wholesale at market-based rates in the geographic market where such
person conducts its business.
(yy) None of the Company, the Guarantors or any of the
Company's subsidiaries is subject to any state laws or regulations respecting
rates or the financial or organizational regulation of utilities, other than,
with respect to those entities that are QF's, such state regulations
contemplated by 18 C.F.R. Section 292.602(c) and "lightened regulation" as
defined by the New York State Public Service Commission.
(zz) The Company is subject to Section 13 or 15(d) of the
Exchange Act.
(aaa) Except as disclosed in the Offering Circular, the
Company has established and maintains disclosure controls and procedures (as
such term is defined in Rule 13a-14 under the Exchange Act), which (i) are
designed to ensure that material information relating to the Company, including
its consolidated subsidiaries, is made known to the Company's principal
executive officer and its principal financial officer by others within those
entities, particularly during the periods in which the periodic reports required
under the Exchange Act are being prepared; (ii) have been evaluated for
effectiveness as of a date within 90 days prior to the date of the Company's
most recent annual or quarterly report; and (iii) are effective in all material
respects to perform the functions for which they were established.
(bbb) Except as disclosed in the Offering Circular, based
on the evaluation of its disclosure controls and procedures, the Company is not
aware of (i) any significant deficiency in the design or operation of internal
controls which could adversely affect the Company's ability to record, process,
summarize and report financial data or any material weaknesses in internal
controls; or (ii) any fraud, whether or not material, that involves management
or other employees who have a significant role in the Company's internal
controls.
(ccc) Since the date of the most recent evaluation of such
disclosure controls and procedures, there have been no significant changes in
internal controls or in other factors that could
12
significantly affect internal controls, including any corrective actions with
regard to significant deficiencies and material weaknesses.
3. Purchase of the Notes by the Initial Purchasers, Agreements to
Sell, Purchase and Resell(a) . The Company and the Guarantors, jointly and
severally hereby agree, on the basis of the representations, warranties and
agreements of the Initial Purchasers contained herein and subject to all the
terms and conditions set forth herein, to issue and sell to the Initial
Purchasers and, upon the basis of the representations, warranties and agreements
of the Company and the Guarantors herein contained and subject to all the terms
and conditions set forth herein, each of the Initial Purchasers agrees,
severally and not jointly, to purchase from the Company, at a purchase price of
105% of the principal amount thereof, plus accrued and unpaid interest from
December 23, 2003 to the Closing Date, the total principal amount of Notes set
forth opposite the name of such Initial Purchasers in Schedule V hereto. The
Company and the Guarantors shall not be obligated to deliver any of the
securities to be delivered hereunder except upon payment for all of the
securities to be purchased as provided herein.
(b) Each of the Initial Purchasers, severally and not
jointly hereby represents and warrants to the Company that it will offer the
Notes for sale upon the terms and conditions set forth in this Agreement and in
the Offering Circular. Each of the Initial Purchasers hereby represents and
warrants to, and agrees with, the Company that such Initial Purchaser: (i) is a
QIB with such knowledge and experience in financial and business matters as are
necessary in order to evaluate the merits and risks of an investment in the
Notes; (ii) is purchasing the Notes pursuant to a private sale exempt from
registration under the Act; (iii) in connection with the Exempt Resales, will
solicit offers to buy the Notes only from, and will offer to sell the Notes only
to, the Eligible Purchasers in accordance with this Agreement and on the terms
contemplated by the Offering Circular; and (iv) will not offer or sell the
Notes, nor has it offered or sold the Notes by, or otherwise engaged in, any
form of general solicitation or general advertising (within the meaning of
Regulation D, including, but not limited to, advertisements, articles, notices
or other communications published in any newspaper, magazine, or similar medium
or broadcast over television or radio, or any seminar or meeting whose attendees
have been invited by any general solicitation or general advertising) and will
not engage in any directed selling efforts within the meaning of Rule 902 under
the Act, in connection with the offering of the Notes. The Initial Purchasers
have advised the Company that they will offer the Notes to Eligible Purchasers
at a price initially equal to 106% of the principal amount thereof, plus accrued
interest from December 23, 2003 to the Closing Date. Such price may be changed
by the Initial Purchasers at any time without notice.
Each of the Initial Purchasers understands that the Company
and, for purposes of the opinions to be delivered to the Initial Purchasers
pursuant to Sections 7(c) and 7(d) hereof, counsel to the Company and counsel to
the Initial Purchasers, will rely upon the accuracy and truth of the foregoing
representations, warranties and agreements and the Initial Purchasers hereby
consents to such reliance.
4. Delivery of the Notes and Payment Therefor. Delivery to the
Initial Purchasers of and payment for the Notes shall be made at the office of
Xxxxxx & Xxxxxxx LLP, at 9:00 A.M., New York City time, on the Closing Date. The
place of closing for the Notes and the Closing Date may be varied by agreement
between the Initial Purchasers and the Company.
The Notes will be delivered to the Initial Purchasers, or the
Trustee as custodian for The Depository Trust Company ("DTC"), against payment
by or on behalf of the Initial Purchasers of the purchase price therefor by wire
transfer in immediately available funds, by causing DTC to credit the Notes to
the account of the Initial Purchasers at DTC. The Notes will be evidenced by one
or more global securities in definitive form (the "Global Notes") or by
additional definitive securities, and will be registered, in the case of the
Global Notes, in the name of Cede & Co. as nominee of DTC, and in the other
cases, in such names and in such denominations as the Initial Purchasers shall
request prior to 9:30
13
A.M., New York City time, on the second business day preceding the Closing Date.
The Notes to be delivered to the Initial Purchasers shall be made available to
the Initial Purchasers in New York City for inspection and packaging not later
than 9:30 A.M., New York City time, on the business day next preceding the
Closing Date.
5. Agreements of the Company and the Guarantors. The Company and
the Guarantors, jointly and severally agree with each of the Initial Purchasers
as follows:
(a) The Company and the Guarantors will furnish to the
Initial Purchasers, without charge, as of the date of the Offering Circular,
such number of copies of the Offering Circular as may then be amended or
supplemented as they may reasonably request.
(b) The Company and the Guarantors will not make any
amendment or supplement to the Offering Circular of which the Initial Purchasers
shall not previously have been advised or to which they shall reasonably object
after being so advised.
(c) The Company and each of the Guarantors consent to the
use of the Offering Circular in accordance with the securities or Blue Sky laws
of the jurisdictions in which the Notes are offered by the Initial Purchasers
and by all dealers to whom Notes may be sold, in connection with the offering
and sale of the Notes.
(d) If, at any time prior to completion of the
distribution of the Notes by the Initial Purchasers to Eligible Purchasers, any
event occurs or information becomes known that, in the judgment of the Company,
any of the Guarantors or in the opinion of counsel for the Initial Purchasers,
should be set forth in the Offering Circular so that the Offering Circular does
not include any untrue statement of material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it is necessary
to supplement or amend the Offering Circular in order to comply with any law,
the Company and the Guarantors will forthwith prepare an appropriate supplement
or amendment thereto, and will expeditiously furnish to the Initial Purchasers
and dealers a reasonable number of copies thereof.
(e) The Company and each of the Guarantors will cooperate
with the Initial Purchasers and with their counsel in connection with the
qualification of the Notes for offering and sale by the Initial Purchasers and
by dealers under the securities or Blue Sky laws of such jurisdictions as the
Initial Purchasers may designate and will file such consents to service of
process or other documents necessary or appropriate in order to effect such
qualification; provided, that in no event shall the Company or any of the
Guarantors be obligated to qualify to do business in any jurisdiction where it
is not now so qualified or to take any action that would subject it to service
of process in suits, other than those arising out of the offering or sale of the
Notes, in any jurisdiction where it is not now so subject.
(f) For a period of 180 days from the date of the
Offering Circular, the Company and the Guarantors agree not to, directly or
indirectly, sell, offer to sell, contract to sell, grant any option to purchase,
issue any instrument convertible into or exchangeable for, or otherwise transfer
or dispose of (or enter into any transaction or device that is designed to, or
could be expected to, result in the disposition in the future of), any debt
securities of the Company, the Guarantors or any of their respective
subsidiaries, except (i) in exchange for the Exchange Notes and the Exchange
Guarantees in connection with the Exchange Offer, (ii) with the prior consent of
Credit Suisse First Boston LLC ("CSFB") or (iii) in accordance with terms of the
NRG plan of reorganization.
(g) If not otherwise available on the Commission's
Electronic Data Gathering, Analysis and Retrieval system ("XXXXX"), the Company
will furnish to the holders of the Notes as soon
14
as practicable after the end of each fiscal year an annual report (including a
balance sheet and statements of income, stockholders' equity and cash flows of
the Company and its consolidated subsidiaries certified by independent public
accountants) and, as soon as practicable after the end of each of the first
three quarters of each fiscal year (beginning with the fiscal quarter ending
after the date of the Offering Circular), will make available to its
securityholders consolidated summary financial information of the Company and
its subsidiaries for such quarter in reasonable detail.
(h) If not otherwise available on XXXXX, so long as any
of the Notes are outstanding, the Company and the Guarantors will furnish to the
Initial Purchasers (i) as soon as available, a copy of each report of the
Company or any Guarantor mailed to stockholders generally or filed with any
stock exchange or regulatory body and (ii) from time to time such other
information concerning the Company or the Guarantors as the Initial Purchasers
may reasonably request.
(i) The Company and the Guarantors will apply the net
proceeds from the sale of the Notes to be sold by it hereunder substantially in
accordance with the description set forth in the Offering Circular under the
caption "Use of Proceeds."
(j) Except as stated in this Agreement and in the
Offering Circular, neither the Company, the Guarantors nor any of their
respective affiliates has taken, nor will any of them take, directly or
indirectly, any action designed to or that might reasonably be expected to cause
or result in stabilization or manipulation of the price of any security of the
Company or any of the Guarantors to facilitate the sale or resale of the Notes
and the Guarantees. Except as permitted by the Act, the Company and the
Guarantors will not distribute any offering material in connection with the
Exempt Resales.
(k) The Company and the Guarantors will use all
commercially reasonable efforts to permit the Notes to be designated Private
Offerings, Resales and Trading through Automated Linkages (PORTAL) Market(SM)
(the "PORTAL Market(SM)") securities in accordance with the rules and
regulations adopted by the National Association of Securities Dealers, Inc.
relating to trading in the PORTAL Market(SM) and to permit the Notes to be
eligible for clearance and settlement through DTC.
(l) During the period of two years after the Closing
Date, the Company and the Guarantors will not, and will not permit any of their
"affiliates" (as defined in Rule 144 under the Act), to, resell any of the Notes
that constitute "restricted securities" under Rule 144 that have been reacquired
by any of them.
(m) The Company and the Guarantors agree to comply with
all agreements set forth in the representation letters of the Company and the
Guarantors to DTC relating to the approval of the Notes by DTC for "book entry"
transfer.
(n) The Company and the Guarantors will take such steps
as shall be necessary to ensure that neither the Company nor any of the
Company's subsidiaries becomes an "investment company" within the meaning of
such term under the Investment Company Act of 1940, as amended.
(o) The Company and the Guarantors will use all
commercially reasonable efforts to do and perform all things required or
necessary to be done and performed under this Agreement by them prior to the
Closing Date, and to satisfy all conditions precedent to the Initial Purchasers'
obligations hereunder to purchase the Notes.
6. Expenses. Whether or not the transactions contemplated by this
Agreement are consummated or this Agreement becomes effective or is terminated,
the Company and the Guarantors, jointly and severally, agree, to pay all costs,
expenses, fees and taxes incident to and in connection with:
15
(i) the preparation, printing, filing and distribution of the Offering Circular
(including, without limitation, financial statements and exhibits) and all
amendments and supplements thereto (including the fees, disbursements and
expenses of the Company's accountants and counsel); (ii) the preparation,
printing (including, without limitation, word processing and duplication costs)
and delivery of this Agreement, the Indenture, the Registration Rights
Agreement, all Blue Sky Memoranda and all other agreements, memoranda,
correspondence and other documents printed and delivered in connection therewith
and with the Exempt Resales; (iii) the issuance and delivery by the Company of
the Notes and by the Guarantors of the Guarantees and any taxes payable in
connection therewith; (iv) the qualification of the Notes and Exchange Notes for
offer and sale under the securities or Blue Sky laws of the several states
(including, without limitation, the reasonable fees and disbursements of your
counsel relating to such registration or qualification); (v) the furnishing of
such copies of the Offering Circular, and all amendments and supplements
thereto, as may be reasonably requested for use in connection with the Exempt
Resales; (vi) the preparation of certificates for the Notes (including, without
limitation, printing and engraving thereof); (vii) the application for quotation
of the Notes in the PORTAL Market(SM) (including all disbursements and listing
fees); (viii) the approval of the Notes by DTC for "book-entry" transfer
(including fees and expenses of counsel); (ix) the rating of the Notes and the
Exchange Notes; (x) the obligations of the Trustee, any agent of the Trustee and
the counsel for the Trustee in connection with the Indenture, the Notes, the
Guarantees, the Exchange Notes and the Exchange Guarantees; (xi) the creation
and perfection of security interests and associated documents, including,
without limitation, the Security Documents and all Financing Statements,
including search and filing fees and the fees and disbursements of Xxxxxx &
Xxxxxxx LLP incurred in connection therewith; (xii) the Collateral Trustee and
any agent of the Collateral Trustee and counsel for the Collateral Trustee in
connection with the Security Documents and the Collateral; (xiii) the
performance by the Company and the Guarantors of their other obligations under
this Agreement; and (xiv) the Initial Purchasers' entering into hedging
agreements pursuant to the Credit Agreement, in connection with the offering of
the Notes. Notwithstanding the foregoing, the aggregate amount of all reasonable
fees and disbursements of Xxxxxx & Xxxxxxx LLP in connection with the
transactions contemplated under this Agreement shall be paid by the Company and
the Guarantors.
7. Conditions to Initial Purchasers' Obligations. The respective
obligations of the Initial Purchasers hereunder are subject to the accuracy,
when made and on and as of the Closing Date, of the representations and
warranties of the Company and the Guarantors contained herein, to the
performance by the Company and the Guarantors of their respective obligations
hereunder, and to each of the following additional terms and conditions:
(a) The Initial Purchasers shall not have discovered and
disclosed to the Company on or prior to the Closing Date that the Offering
Circular or any amendment or supplement thereto contains an untrue statement of
a fact that, in the opinion of Xxxxxx & Xxxxxxx LLP, is material or omits to
state a fact that, in the opinion of such counsel, is material and is required
to be stated therein or is necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading.
(b) All corporate proceedings and other legal matters
incident to the authorization, form and validity of this Agreement, the Notes,
the Guarantees, the Exchange Notes, the Exchange Guarantees, the Registration
Rights Agreement, the Indenture and the Offering Circular, and all other legal
matters relating to this Agreement and the transactions contemplated hereby
shall be reasonably satisfactory in all material respects to counsel for the
Initial Purchasers, and the Company and the Guarantors shall have furnished to
such counsel all documents and information that they may reasonably request to
enable them to pass upon such matters.
(c) Xxxxxxxx & Xxxxx LLP, General Counsel for the Company
and local counsel to the Company set forth on Exhibit B shall have furnished to
the Initial Purchasers their written opinions,
16
addressed to the Initial Purchasers and dated the Closing Date, in form and
substance reasonably satisfactory to the Initial Purchasers and substantially in
the form of Exhibit B hereto.
(d) The Initial Purchasers shall have received from
Xxxxxx & Xxxxxxx LLP, counsel for the Initial Purchasers, such opinion or
opinions, dated the Closing Date, with respect to the issuance and sale of the
Notes, the Offering Circular and other related matters as the Initial Purchasers
may reasonably require, and the Company shall have furnished to such counsel
such documents and information as they reasonably request for the purpose of
enabling them to pass upon such matters.
(e) Xxxxxxxx & Xxxxx LLP and local counsel to the Company
set forth on Exhibit C shall have furnished to the Initial Purchasers their
written opinions with respect to federal regulatory matters, addressed to the
Initial Purchasers and dated the Closing Date, in form and substance reasonably
satisfactory to the Initial Purchasers and substantially in the form of Exhibit
C hereto.
(f) General Counsel for the Company and local counsel to
the Company set forth on Exhibit D shall have furnished to the Initial
Purchasers their written opinions with respect to environmental matters,
addressed to the Initial Purchasers and dated the Closing Date, in form and
substance reasonably satisfactory to the Initial Purchasers and substantially in
the form of Exhibit D hereto.
(g) Local counsel to the Company set forth on Exhibit E
shall have furnished to the Initial Purchasers their written opinions (or
reliance letters with respect to their written opinions delivered on December
23, 2003) with respect to the Mortgages and other real estate matters, addressed
to the Initial Purchasers and dated the Closing Date, in form and substance
reasonably satisfactory to the Initial Purchasers and substantially in the form
of Exhibit E hereto.
(h) Xxxxxxxx & Xxxxx LLP, General Counsel for the Company
and local counsel to the Company set forth on Exhibit F shall have furnished to
the Initial Purchasers their written opinions with respect to security interest
matters, addressed to the Initial Purchasers and dated the Closing Date, in form
and substance reasonably satisfactory to the Initial Purchasers and
substantially in the form of Exhibit E hereto.
(i) The Collateral Trustee shall have received (with a
copy for the Initial Purchasers) those items listed on Exhibit G hereto to the
extent not delivered in connection with the closing of the December 2003 Notes
offering.
(j) To the extent not delivered in connection with the
closing of the December 2003 Notes offering (A) all Uniform Commercial Code
Financing Statements or other similar Financing Statements and Uniform
Commercial Code Form UCC-3 termination statements required pursuant to clauses
(1) and (2) of Exhibit G (collectively, the "Financing Statements") shall have
been delivered to CT Corporation System or another similar filing service
company acceptable to the Collateral Trustee (the "Filing Agent"); and (B) the
Filing Agent shall have acknowledged in a writing reasonably satisfactory to the
Collateral Trustee and its counsel (i) the Filing Agent's receipt of all
Financing Statements, (ii) that the Financing Statements have either been
submitted for filing in the appropriate filing offices or will be submitted for
filing in the appropriate offices within ten days following the Closing Date and
(iii) that the Filing Agent will notify the Collateral Trustee and its counsel
of the results of such submissions within 30 days following the Closing Date.
(k) At the time of execution of this Agreement, the
Initial Purchasers shall have received from PricewaterhouseCoopers LLP a letter,
in form and substance satisfactory to the Initial Purchasers, addressed to the
Initial Purchasers and dated the date hereof (i) confirming that they are
17
independent public accountants within the meaning of the Act and are in
compliance with the applicable requirements relating to the qualification of
accountants under Rule 2-01 of Regulation S-X of the Commission and (ii)
stating, as of the date hereof (or, with respect to matters involving changes or
developments since the respective dates as of which specified financial
information is given in the Offering Circular, as of a date not more than five
days prior to the date hereof), the conclusions and findings of such firm with
respect to the financial information and (iii) covering such other matters as
are ordinarily covered by accountants' "comfort letters" to underwriters in
connection with registered public offerings.
(l) With respect to the letter of PricewaterhouseCoopers
LLP referred to in the preceding paragraph and delivered to the Initial
Purchasers concurrently with the execution of this Agreement (the "initial
letter"), the Company shall have furnished to the Initial Purchasers a letter
(the "bring-down letter") of such accountants, addressed to the Initial
Purchasers and dated the Closing Date (i) confirming that they are independent
public accountants within the meaning of the Act and are in compliance with the
applicable requirements relating to the qualification of accountants under Rule
2-01 of Regulation S-X of the Commission, (ii) stating, as of the Closing Date
(or, with respect to matters involving changes or developments since the
respective dates as of which specified financial information is given in the
Offering Circular, as of a date not more than five days prior to the date of the
Closing Date), the conclusions and findings of such firm with respect to the
financial information and other matters covered by the initial letter and (iii)
confirming in all material respects the conclusions and findings set forth in
the initial letter.
(m) Neither the Company, any Guarantor nor any of their
respective subsidiaries shall have sustained, since the date of the latest
audited financial statements included in the Offering Circular, any material
loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree, otherwise than as set forth or
contemplated in the Offering Circular; and, since such date, there shall not
have been any change in the stockholders' equity or long-term debt of the
Company, any Guarantor or any of their respective subsidiaries or material
adverse change, or any development involving a prospective material adverse
change, in or affecting the management, condition, financial or otherwise,
stockholders' equity, results of operations, business or prospects of the
Company, any Guarantors and their respective subsidiaries, taken as a whole.
(n) The Company and each Guarantor shall have furnished
or caused to be furnished to the Initial Purchasers on the Closing Date
certificates of officers of the Company and each Guarantor satisfactory to the
Initial Purchasers as to the accuracy of the representations and warranties of
the Company and each Guarantor herein at and as of the Closing Date, as to the
performance by the Company and each Guarantor of all of their obligations
hereunder to be performed at or prior to the Closing Date and as to such other
matters as CSFB may reasonably request.
(o) No action shall have been taken and no statute, rule,
regulation or order shall have been enacted, adopted or issued by any
governmental agency or body which would, as of the Closing Date, prevent the
issuance or sale of the Notes; and no injunction, restraining order or order of
any other nature by any federal or state court of competent jurisdiction shall
have been issued as of the Closing Date which would prevent the issuance or sale
of the Notes.
(p) The Notes shall have been designated for trading on
the PORTAL Market(SM).
(q) The Company and the Guarantors shall have executed
and delivered the Registration Rights Agreement and each of the Security
Documents (to the extent not delivered in
18
connection with the closing of the December 2003 Notes offering), and the
Initial Purchasers shall have received an original copy thereof, duly executed
by the Company and the Guarantors.
(r) On the Closing Date, a senior financial officer of
the Company shall have furnished to the Initial Purchasers a certificate in form
and substance satisfactory to the Initial Purchasers as to the accuracy of
certain numbers contained in the Offering Circular, which numbers shall be set
forth in a schedule attached to such certificate.
(s) The Confirmation Orders shall not have been reversed,
modified, vacated or stayed.
(t) Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any development or
event involving a prospective change, in the condition (financial or other),
business, properties or results of operations of the Company and its
subsidiaries taken as one enterprise which, in the reasonable judgment of CSFB,
is material and adverse and makes it impractical or inadvisable to proceed with
completion of the offering or the sale of and payment for the Notes; (ii) any
downgrading in the rating of any debt securities or preferred stock of the
Company by any "nationally recognized statistical rating organization" (as
defined for purposes of Rule 436(g) under the Securities Act), or any public
announcement that any such organization has under surveillance or review its
rating of any debt securities or preferred stock of the Company (other than an
announcement with positive implications of a possible upgrading, and no
implication of a possible downgrading, of such rating) or any announcement that
the Company has been placed on negative outlook; (iii) any change in U.S. or
international financial, political or economic conditions or currency exchange
rates or exchange controls as would, in the reasonable judgment of CSFB, be
likely to prejudice materially the success of the proposed issue, sale or
distribution of the Notes, whether in the primary market or in respect of
dealings in the secondary market, (iv) any material suspension or material
limitation of trading in securities generally on the New York Stock Exchange, or
any setting of minimum prices for trading on such exchange, or any suspension of
trading of any securities of the Company on any exchange or in the
over-the-counter market; (v) any banking moratorium declared by U.S. Federal or
New York authorities; (vi) any major disruption of settlements of securities or
clearance services in the United States or (vii) any attack on, outbreak or
escalation of hostilities or act of terrorism involving the United States, any
declaration of war by Congress or any other national or international calamity
or emergency if, in the reasonable judgment of CSFB, the effect of any such
attack, outbreak, escalation, act, declaration, calamity or emergency makes it
impractical or inadvisable to proceed with completion of the offering or sale of
and payment for the Notes.
All opinions, letters, evidence and certificates mentioned
above or elsewhere in this Agreement shall be deemed to be in compliance with
the provisions hereof only if they are in form and substance reasonably
satisfactory to counsel for the Initial Purchasers.
8. Indemnification and Contribution.
(a) The Company and each Guarantor will, jointly and
severally, indemnify and hold harmless each Initial Purchaser, its partners,
directors and officers and each person, if any, who controls any Initial
Purchaser within the meaning of Section 15 of the Securities Act, against any
losses, claims, damages or liabilities, joint or several, to which such Initial
Purchaser may become subject, under the Securities Act or the Exchange Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the Offering Circular, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were
made, not misleading, including any losses, claims, damages or liabilities
arising out of or based upon the
19
Company's failure to perform its obligations under Section 5(d) of this
Agreement, and will reimburse each Initial Purchaser for any legal or other
expenses reasonably incurred by such Initial Purchaser in connection with
investigating or defending any such loss, claim, damage, liability or action as
such expenses are incurred; provided, however, that the Company will not be
liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement in or omission or alleged omission from any of such documents in
reliance upon and in conformity with written information furnished to the
Company by any Initial Purchaser through CSFB specifically for use therein, it
being understood and agreed that the only such information consists of the
information described as such in Section 8(b) below.
(b) Each Initial Purchaser will severally and not jointly
indemnify and hold harmless the Company, each Guarantor, their respective
directors and officers and each person, if any, who controls the Company or any
Guarantor within the meaning of Section 15 of the Securities Act, against any
losses, claims, damages or liabilities to which the Company or any Guarantor may
become subject, under the Securities Act or the Exchange Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Offering Circular, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or the alleged omission to state therein a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information
furnished to the Company by such Initial Purchaser through CSFB specifically for
use therein, and will reimburse any legal or other expenses reasonably incurred
by the Company in connection with investigating or defending any such loss,
claim, damage, liability or action as such expenses are incurred, it being
understood and agreed that the only such information furnished by any Initial
Purchaser consists of the following information in the Offering Circular: under
the caption "Plan of Distribution" paragraphs 3, 4, 5, 8, 9, 10, 11, 12 and 13;
provided, however, that the Initial Purchasers shall not be liable for any
losses, claims, damages or liabilities arising out of or based upon the
Company's failure to perform its obligations under Section 5(d) of this
Agreement.
(c) Promptly after receipt by an indemnified party under
this Section 8 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying
party under Sections 8(a) or 8(b) above, notify the indemnifying party of the
commencement thereof; but the failure to notify the indemnifying party shall not
relieve it from any liability that it may have under Sections 8(a) or 8(b) above
except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure. In case any such
action is brought against any indemnified party and it notifies the indemnifying
party of the commencement thereof, the indemnifying party will be entitled to
participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel satisfactory to such indemnified party (who shall not, except with the
consent of the indemnified party, be counsel to the indemnifying party), and
after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, the indemnifying party will not be
liable to such indemnified party under this Section 8 for any legal or other
expenses subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation. No indemnifying
party shall, without the prior written consent of the indemnified party, effect
any settlement of any pending or threatened action in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party unless such settlement includes (i)
an unconditional release of such indemnified party from all liability on any
claims that are the subject matter of such action and (ii) does not include a
statement as to or an admission of fault, culpability or failure to act by or on
behalf of any indemnified party.
20
(d) If the indemnification provided for in this Section 8
is unavailable or insufficient to hold harmless an indemnified party under
Sections 8(a) or 8(b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in Sections 8(a) or 8(b) above (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Company and the Guarantors on the one hand and the Initial Purchasers on the
other from the offering of the Notes or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company and the Guarantors on the one
hand and the Initial Purchasers on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities as
well as any other relevant equitable considerations. The relative benefits
received by the Company and the Guarantors on the one hand and the Initial
Purchasers on the other shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the
Company and the Guarantors bear to the total discounts and commissions received
by the Initial Purchasers from the Company under this Agreement. The relative
fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information supplied by the Company
and the Guarantors or the Initial Purchasers and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
untrue statement or omission. The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first
sentence of this Section 8(d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this
Section 8(d). Notwithstanding the provisions of this Section 8(d), no Initial
Purchaser shall be required to contribute any amount in excess of the amount by
which the total price at which the Notes purchased by it were resold exceeds the
amount of any damages which such Initial Purchaser has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. The Initial Purchasers' obligations under this Section 8(d) to
contribute are several in proportion to their respective purchase obligations
and not joint.
(e) The obligations of the Company and the Guarantors
under this Section 8 shall be in addition to any liability which the Company and
the Guarantors may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls the Initial Purchasers within
the meaning of the Securities Act or the Exchange Act; and the obligations of
the Initial Purchasers under this Section 8 shall be in addition to any
liability which the respective the Initial Purchaser may otherwise have and
shall extend, upon the same terms and conditions, to each person, if any, who
controls the Company and the Guarantors within the meaning of the Securities Act
or the Exchange Act.
9. Defaulting Initial Purchasers. If, on the Closing Date, any
Initial Purchaser defaults in the performance of its obligations under this
Agreement, the remaining non-defaulting Initial Purchasers shall be obligated to
purchase the Notes that the defaulting Initial Purchaser agreed but failed to
purchase on the Closing Date in the respective proportions that the number of
Notes set opposite the name of each remaining non-defaulting Initial Purchaser
in Schedule V hereto bears to the total number of Notes set opposite the names
of all the remaining non-defaulting Initial Purchasers in Schedule V hereto;
provided, however, that the remaining non-defaulting Initial Purchasers shall
not be obligated to purchase any of the Notes on the Closing Date if the total
number of Notes that the defaulting Initial Purchaser or Initial Purchasers
agreed but failed to purchase on such date exceeds 9.09% of the total number of
Notes to be purchased on the Closing Date, and any remaining non-defaulting
Initial Purchasers shall not be obligated to purchase more than 110% of the
number of Notes that it agreed to purchase on the Closing Date pursuant to the
terms of Section 3. If the foregoing maximums are exceeded, the remaining
non-defaulting Initial Purchasers, or those other Initial Purchasers
satisfactory to the Initial Purchasers who so agree, shall have the right, but
shall not be obligated, to purchase, in such proportion as may be agreed upon
among them, all the Notes to be purchased on the Closing Date. If the remaining
Initial Purchasers
21
or other Initial Purchasers satisfactory to the Initial Purchasers do not elect
to purchase the Notes that the defaulting Initial Purchaser or Initial
Purchasers agreed but failed to purchase on the Closing Date, this Agreement
shall terminate without liability on the part of any non-defaulting Initial
Purchaser or the Company or the Guarantors, except that the Company and the
Guarantors will continue to be liable for the payment of expenses to the extent
set forth in Sections 6 and 11.
Nothing contained herein shall relieve a defaulting Initial
Purchaser of any liability it may have to the Company or any Guarantor for
damages caused by its default. If other Initial Purchasers are obligated or
agree to purchase the Notes of a defaulting or withdrawing Initial Purchaser,
either the remaining Initial Purchasers or the Company may postpone the Closing
Date for up to seven full business days in order to effect any changes that in
the opinion of counsel for the Company or counsel for the Initial Purchasers may
be necessary in the Offering Memorandum or in any other document or arrangement.
10. Termination. The obligations of the Initial Purchasers
hereunder may be terminated by the Initial Purchasers by notice given to and
received by the Company prior to delivery of and payment for the Notes if, prior
to that time, any of the events described in Sections 7(n) and 7(t) shall have
occurred or if the Initial Purchasers shall decline to purchase the Notes for
any reason permitted under this Agreement.
11. Reimbursement of Initial Purchasers' Expenses. If the Company
fails to tender the Notes for delivery to the Initial Purchasers by reason of
any failure, refusal or inability on the part of the Company or any Guarantor to
perform any agreement on their part to be performed, or because any other
condition of the obligations hereunder required to be fulfilled by the Company
or any Guarantor is not fulfilled, the Company and the Guarantors shall
reimburse the Initial Purchasers for all reasonable out-of-pocket expenses
(including fees and disbursements of counsel) incurred by the Initial Purchasers
in connection with this Agreement and the proposed purchase of the Notes, and
upon demand the Company and the Guarantors shall pay the full amount thereof to
the Initial Purchasers. If this Agreement is terminated pursuant to Section 9 by
reason of the default of one or more Initial Purchasers, the Company and the
Guarantors shall not be obligated to reimburse any defaulting Initial Purchaser
on account of those expenses.
12. Notices, etc. All statements, requests, notices and agreements
hereunder shall be in writing, and:
(a) if to any Initial Purchaser, shall be delivered or
sent by hand delivery, mail, telex, overnight courier or facsimile transmission
to Credit Suisse First Boston LLC, Xxxxxx Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000-0000, Attention: Transactions Advisory Group, with a copy to Xxxxxx &
Xxxxxxx LLP, 000 Xxxxx Xxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx Xxxx 00000, Attention:
Xxxx X. Xxxxxxxxx, Esq. (Fax: (000) 000-0000);
(b) if to the Company or any Guarantor, shall be
delivered or sent by mail, telex, overnight courier or facsimile transmission to
NRG Energy, Inc., 000 Xxxxxxxxx Xxxxxx, Xxxxx 0000, Xxxxxxxxxxx, Xxxxxxxxx
00000, Attention: Xxxxx X. Xxxxxx, Esq. (Fax: (000) 000-0000), with a copy to
Xxxxxxxx & Xxxxx LLP, 000 Xxxx Xxxxxxxx Xxxxx, Xxxxxxx, Xxxxxxxx 00000,
Attention: Xxxxxx X. Xxxxx, Esq. (Fax: (000) 000-0000);
provided, however, that any notice to an Initial Purchaser
pursuant to Section 8(c) shall be delivered or sent by hand delivery, mail,
telex or facsimile transmission to such Initial Purchaser at its address set
forth in its acceptance telex, overnight courier to CSFB, which address will be
supplied to any other party hereto by CSFB upon request. Any such statements,
requests, notices or agreements shall take
22
effect at the time delivered by hand, if personally delivered; two business days
after being deposited in the mail, postage prepaid, if mailed; when answered
back, if telexed; when receipt is acknowledged, if telecopied; and on the next
business day, if timely delivered to an air courier guaranteeing overnight
delivery. The Company shall be entitled to act and rely upon any request,
consent, notice or agreement given or made on behalf of the Initial Purchasers
by CSFB.
13. Persons Entitled to Benefit of Agreement. This Agreement shall
inure to the benefit of and be binding upon the Initial Purchasers, the Company,
the Guarantors and their respective successors. This Agreement and the terms and
provisions hereof are for the sole benefit of only those persons, except that
(A) the representations, warranties, indemnities and agreements of the Company
and the Guarantors contained in this Agreement shall also be deemed to be for
the benefit of directors of the Initial Purchasers, officers of the Initial
Purchasers and any person or persons controlling any Initial Purchaser within
the meaning of Section 15 of the Act and (B) the indemnity agreement of the
Initial Purchasers contained in Section 8(b) of this Agreement shall be deemed
to be for the benefit of directors of the Company and the Guarantors, officers
of the Company and the Guarantors and any person controlling the Company or the
Guarantors within the meaning of Section 15 of the Act. Nothing in this
Agreement is intended or shall be construed to give any person, other than the
persons referred to in this Section 13, any legal or equitable right, remedy or
claim under or in respect of this Agreement or any provision contained herein.
14. Survival. The respective indemnities, representations,
warranties and agreements of the Company, the Guarantors and the Initial
Purchasers contained in this Agreement or made by or on behalf on them,
respectively, pursuant to this Agreement, shall survive the delivery of and
payment for the Notes and shall remain in full force and effect, regardless of
any investigation made by or on behalf of any of them or any person controlling
any of them.
15. Definition of the Terms "Business Day" and "Subsidiary." For
purposes of this Agreement, (a) "business day" means any day on which the New
York Stock Exchange, Inc. is open for trading and (b) "subsidiary" has the
meaning set forth in Rule 405 of the Rules and Regulations.
16. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF NEW YORK.
17. Counterparts. This Agreement may be executed in one or more
counterparts and, if executed in more than one counterpart, the executed
counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.
18. Headings. The headings herein are inserted for convenience of
reference only and are not intended to be part of, or to affect the meaning or
interpretation of, this Agreement.
23
If the foregoing correctly sets forth the agreement among the
Company, the Guarantors, and the Initial Purchasers, please indicate your
acceptance in the space provided for that purpose below.
Very truly yours,
NRG ENERGY, INC.
By _______________________________________
Name:
Title:
EACH GUARANTOR LISTED ON SCHEDULE I HEREOF
By _________________________________________
Name:
Title:
24
Accepted:
CREDIT SUISSE FIRST BOSTON LLC
XXXXXX BROTHERS INC.
By CREDIT SUISSE FIRST BOSTON LLC, as Authorized Representative
By ______________________________
Name:
Title:
25
SCHEDULE I
GUARANTORS
1. Xxxxxx Kill Power LLC
2. Astoria Gas Turbine Power LLC
3. Berrians I Gas Turbine Power LLC
4. Big Cajun II Unit 4 LLC
5. Capistrano Cogeneration Company
6. Chickahominy River Energy Corp.
7. Cobee Energy Development LLC
8. Commonwealth Atlantic Power LLC
9. Conemaugh Power LLC
10. Connecticut Jet Power LLC
11. Devon Power LLC
12. Dunkirk Power LLC
13. Eastern Sierra Energy Company
14. El Segundo Power II LLC
15. Hanover Energy Company
16. Xxxxxxx Power LLC
17. Indian River Operations Inc.
18. Indian River Power LLC
19. Xxxxx River Power LLC
20. Xxxxxxx Xxxxx XX
21. Keystone Power LLC
22. Louisiana Generating LLC
23. MidAtlantic Generation Holding LLC
24. Middletown Power LLC
Schedule II-1
25. Montville Power LLC
26. NEO California Power LLC
27. NEO Xxxxxxx-Gen LLC
28. NEO Corporation
29. NEO Freehold-Gen LLC
30. NEO Landfill Gas Holdings Inc.
31. NEO Landfill Gas Inc.
32. NEO Nashville LLC
33. NEO Power Services Inc.
34. NEO Tajiguas LLC
35. Northeast Generation Holding LLC
36. Norwalk Power LLC
37. NRG Affiliate Services Inc.
38. NRG Xxxxxx Kill Operations Inc.
39. NRG Asia-Pacific, Ltd.
40. NRG Astoria Gas Turbine Operations Inc.
41. NRG Bayou Cove LLC
42. NRG Cabrillo Power Operations Inc.
43. NRG Cadillac Operations Inc.
44. NRG California Peaker Operations LLC
45. NRG Central U.S. LLC
46. NRG Connecticut Affiliate Services Inc.
47. NRG Devon Operations Inc.
48. NRG Dunkirk Operations Inc.
49. NRG Eastern LLC
50. NRG El Segundo Operations Inc.
2
51. NRG Xxxxxxx Operations Inc.
52. NRG International LLC
53. NRG Xxxxxxx LLC
54. NRG Mesquite LLC
55. NRG MidAtlantic Affiliate Services Inc.
56. NRG MidAtlantic Generating LLC
57. NRG MidAtlantic LLC
58. NRG Middletown Operations Inc.
59. NRG Montville Operations Inc.
60. NRG New Jersey Energy Sales LLC
61. NRG New Roads Holdings LLC
62. NRG North Central Operations Inc.
63. NRG Northeast Affiliate Services Inc.
64. NRG Northeast Generating LLC
65. NRG Norwalk Harbor Operations Inc.
66. NRG Operating Services, Inc.
67. NRG Oswego Harbor Power Operations Inc.
68. NRG Power Marketing Inc.
69. NRG Rocky Road LLC
70. NRG Saguaro Operations Inc.
71. NRG South Central Affiliate Services Inc.
72. NRG South Central Generating LLC
73. NRG South Central Operations Inc.
74. NRG West Coast LLC
75. NRG Western Affiliate Services Inc.
76. Oswego Harbor Power LLC
3
77. Saguaro Power LLC
78. Somerset Operations Inc.
79. Somerset Power LLC
80. South Central Generation Holding LLC
81. Vienna Operations Inc.
82. Vienna Power LLC
4
SCHEDULE II
SECURITY DOCUMENTS (NOT INCLUDING MORTGAGES)
The Collateral Trust Agreement, dated as of December 23, 2003,
by and among the Company, PMI, the Guarantors from time to time party hereto,
the Administrative Agent, the Trustee, and the Collateral Trustee.
The Guarantee And Collateral Agreement, dated as of December
23, 2003, made by each of the signatories thereto (together with any other
entity that may become a party thereto as provided therein, the "Grantors"), in
favor of the Collateral Trustee for (i) the Administrative Agent and Collateral
Agent and for the banks and other financial institutions or entities (the
"Lenders") from time to time parties to the Credit Agreement, (ii) the Trustee
and the other Secured Parity Lien Parties under the Indenture and (iii) any
other Secured Parties (as defined therein) from time to time entitled to the
benefits of the Collateral Trust Agreement; and, for purposes of Section 2
thereof, in favor of the Administrative Agent and the Trustee and any other
future Guaranteed Secured Debt Representative (as defined therein) with respect
to any Series of Guaranteed Secured Debt (as defined therein) that becomes
entitled to the benefits of the Collateral Trust Agreement.
The Control Agreement with respect to Commodities Accounts -
Bank One.
The Control Agreement(s) with respect to Deposit and
Securities Accounts - LaSalle.
The Control Agreement(s) with respect to Deposit and
Securities Accounts - Xxxxx Fargo.
The Intellectual Property Security Agreement, dated as of
December 23, 2003, by and among the Grantors in favor of the Collateral Trustee
for the Secured Parties (as defined in the Guarantee and Collateral Agreement
referred to above).
Schedule II-1
SCHEDULE III
MORTGAGES
Documents 14-18 below are each referred to as an "Amendment of Open-End
Mortgage" and collectively as the "Amendments of Open-End Mortgage."
New York
1. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Dunkirk Power LLC, for the benefit
of Deutsche Bank Trust Company Americas, dated as of December 23, 2003,
filed in Chautauqua County, New York.
2. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Xxxxxxx Power LLC, for the benefit
of Deutsche Bank Trust Company Americas, dated as of December 23, 2003,
filed in Erie County, New York.
3. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Astoria Gas Turbine Power LLC, for
the benefit of Deutsche Bank Trust Company Americas, dated as of
December 23, 2003, filed in Astoria County, New York.
4. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Xxxxxx Kill Power LLC, for the
benefit of Deutsche Bank Trust Company Americas, dated as of December
23, 2003, filed in Richmond County, New York.
5. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Oswego Harbor Power LLC, for the
benefit of Deutsche Bank Trust Company Americas, dated as of December
23, 2003, filed in Oswego County, New York.
Connecticut
6. Open-End Mortgage, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Connecticut Jet Power
LLC, for the benefit of Deutsche Bank Trust Company Americas, dated as
of December 23, 2003, filed in Fairfield County, Connecticut.
7. Open-End Mortgage, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Connecticut Jet Power
LLC, for the benefit of Deutsche Bank Trust Company Americas, dated as
of December 23, 2003, filed in Litchfield County, Connecticut.
8. Open-End Mortgage, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Connecticut Jet Power
LLC, for the benefit of Deutsche Bank Trust Company Americas, dated as
of December 23, 2003, filed in New Haven County, Connecticut.
9. Open-End Mortgage, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Devon Power LLC, for the
benefit of Deutsche Bank Trust Company Americas, dated as of December
23, 2003, filed in New Haven County, Connecticut.
10. Open-End Mortgage, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Middletown Power LLC, for
the benefit of Deutsche Bank Trust Company Americas, dated as of
December 23, 2003, filed in Middlesex County, Connecticut.
Schedule III-1
11. Open-End Mortgage, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Montville Power LLC, for
the benefit of Deutsche Bank Trust Company Americas, dated as of
December 23, 2003, filed in New London County, Connecticut.
12. Open-End Mortgage, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Norwalk Power LLC, for
the benefit of Deutsche Bank Trust Company Americas, dated as of
December 23, 2003, filed in New Haven County, Connecticut.
13. Open-End Mortgage, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Meriden Gas Turbines LLC,
for the benefit of Deutsche Bank Trust Company Americas, dated as of
December 23, 2003, filed in New Haven County, Connecticut.
14. Amendment of Open-End Mortgage, Assignment of Rents and Leases, Fixture
Filing, Financing Statement and Security Agreement by Connecticut Jet
Power LLC for the benefit of Deutsche Bank Trust Company Americas,
dated as of January 28, 2004, to be recorded in the Land Records of the
Towns of Greenwich, Litchfield, Branford and Torrington.
15. Amendment of Open-End Mortgage, Assignment of Rents and Leases, Fixture
Filing, Financing Statement and Security Agreement by Middletown Power
LLC for the benefit of Deutsche Bank Trust Company Americas, dated as
of January 28, 2004, to be recorded in the Land Records of the Town of
Middletown.
16. Amendment of Open-End Mortgage, Assignment of Rents and Leases, Fixture
Filing, Financing Statement and Security Agreement by Devon Power LLC
for the benefit of Deutsche Bank Trust Company Americas, dated as of
January 28, 2004, to be recorded in the Land Records of the Town of
Milford.
17. Amendment of Open-End Mortgage, Assignment of Rents and Leases, Fixture
Filing, Financing Statement and Security Agreement by Montville Power
LLC for the benefit of Deutsche Bank Trust Company Americas, dated as
of January 28, 2004, to be recorded in the Land Records of the Towns of
Montville and Waterford.
18. Amendment of Open-End Mortgage, Assignment of Rents and Leases, Fixture
Filing, Financing Statement and Security Agreement by Norwalk Power LLC
for the benefit of Deutsche Bank Trust Company Americas, dated as of
January 28, 2004, to be recorded in the Land Records of the Town of
Norwalk.
Massachusetts
19. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Somerset Power LLC, for the benefit
of Deutsche Bank Trust Company Americas, dated December 23, 2003, filed
in Bristol County, Massachusetts.
Pennsylvania
20. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Conemaugh Power LLC, for the
benefit of Deutsche Bank Trust Company Americas, dated December 23,
2003, filed in Indiana County, Pennsylvania.
Schedule III-2
21. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Keystone Power LLC, for the benefit
of Deutsche Bank Trust Company Americas, dated December 23, 2003, filed
in Armstrong and Indiana County, Pennsylvania.
Maryland
22. Deed of Trust, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Vienna Power LLC, for the
benefit of Deutsche Bank Trust Company Americas, dated December 23,
2003, filed in Dorchester County, Maryland.
Delaware
23. Mortgage, Assignment of Rents and Leases, Fixture Filing, Financing
Statement and Security Agreement by Indian River Power LLC, for the
benefit of Deutsche Bank Trust Company Americas, dated December 23,
2003, filed in Sussex County, Delaware.
Louisiana
24. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Pointe Coupee
Parish, Louisiana.
25. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in West Baton Rouge,
Louisiana.
26. Mortgage, Assignment of Rents and Leases and Security Agreement by NRG
New Roads Holdings LLC, for the benefit of Deutsche Bank Trust Company
Americas, dated December 23, 2003, filed in West Baton Rouge Parish,
Louisiana.
27. Mortgage, Assignment of Rents and Leases and Security Agreement by NRG
New Roads Holdings LLC, for the benefit of Deutsche Bank Trust Company
Americas, dated December 23, 2003, filed in Pointe Coupee Parish,
Louisiana.
28. Mortgage, Assignment of Rents and Leases and Security Agreement by NRG
New Roads Holdings LLC, for the benefit of Deutsche Bank Trust Company
Americas, dated December 23, 2003, filed in Red River Parish,
Louisiana.
29. Mortgage, Assignment of Rents and Leases and Security Agreement by NRG
New Roads Holdings LLC, for the benefit of Deutsche Bank Trust Company
Americas, dated December 23, 2003, filed in Desoto Parish, Louisiana.
30. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Xxxx Xxxxxx,
Louisiana.
31. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in West Xxxxxxx
Xxxxxx, Louisiana.
Schedule III-3
32. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Washington Parish,
Louisiana.
33. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Xxxxxx Xxxxxx,
Louisiana.
34. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Union Parish,
Louisiana.
35. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Terrebone Parish,
Louisiana.
36. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Tangipahoa Parish,
Louisiana.
37. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Xxxxxx Xxxxxx,
Louisiana.
38. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in St. Tammany Parish,
Louisiana.
39. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Pointe Coupee,
Louisiana.
40. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Natchitoches
Parish, Louisiana.
41. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Xxxxxxxxxx Parish,
Louisiana.
42. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Lincoln Parish,
Louisiana.
43. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Xxxxxxxx Xxxxxx,
Louisiana.
44. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in East Xxxxxxxxx
Xxxxxx, Louisiana.
Schedule III-4
45. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in East Baton Rouge
Parish, Louisiana.
46. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in De Soto Parish,
Louisiana.
47. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Catahoula Parish,
Louisiana.
48. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Cameron Parish,
Louisiana.
49. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Calcasieu Parish,
Louisiana.
50. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Lafayette Parish,
Louisiana.
51. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Xxxxxxxxx Xxxxx
Parish, Louisiana.
52. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Webster Parish,
Louisiana.
53. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in Xxxxxxxxxx Parish,
Louisiana.
54. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in St. Helena,
Louisiana.
55. Mortgage, Assignment of Rents and Leases and Security Agreement by
Louisiana Generating LLC, for the benefit of Deutsche Bank Trust
Company Americas, dated December 23, 2003, filed in St. Xxxxxx Xxxxxx,
Louisiana.
Texas
56. Deed of Trust, Assignment of Rents and Leases, Fixture Filing,
Financing Statement and Security Agreement by Xxxxxxx Xxxxx XX, for the
benefit of Deutsche Bank Trust Company Americas, dated December 23,
2003, filed in Xxxxxxx County, Texas.
Schedule III-5
California
57. Deed of Trust by NEO California LLC, for the benefit of Deutsche Bank
Trust Company Americas, dated December 23, 2003, filed in Madera
County, California.
58. Deed of Trust by NEO California LLC, for the benefit of Deutsche Bank
Trust Company Americas, dated December 23, 2003, filed in Red Bluff
County, California.
Schedule III-6
SCHEDULE IV
ENERGY REGULATION
NRG has filed with FERC an amended reliability must run agreement for its Devon
7 and 8 facilities.
The following NRG facilities' maintenance expenses are paid for by other New
England Power Pool participants: Devon 11-14, Middletown Station, and Norwalk
Harbor. The agreement authorizing these payments expires on March 31, 2004.
FERC issued orders on August 25, 2003 and July 24, 2003 authorizing generating
facilities located in designated congestion areas, such as Connecticut, the
ability to include fixed costs in their energy market bids if individual untis
had a capacity factor of 10% or less in 2002. This is scheduled to expire by
June 1, 2004.
Schedule IV-1
SCHEDULE V
PRINCIPAL
AMOUNT OF
NOTES
TO BE
INITIAL PURCHASER PURCHASED
----------------- ---------
Credit Suisse First Boston LLC............................................ $ 296,875,000
Xxxxxx Brothers Inc. ..................................................... 178,125,000
Total................................................................ $ 475,000,000
==============
Schedule V-1
EXHIBIT A
REGISTRATION RIGHTS AGREEMENT
DATED AS OF JANUARY 28, 2004
BY AND AMONG
NRG ENERGY, INC.,
AS ISSUER,
THE ENTITIES LISTED ON SCHEDULE A HEREOF
AS GUARANTORS,
AND
CREDIT SUISSE FIRST BOSTON LLC
AND
XXXXXX BROTHERS INC.,
AS INITIAL PURCHASERS
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This Registration Rights Agreement (this "AGREEMENT") is made and
entered into as of January 28, 2004, by and among NRG Energy, Inc., a Delaware
corporation (the "COMPANY"), the entities listed on Schedule A hereto (the
"GUARANTORS"), and Credit Suisse First Boston LLC and Xxxxxx Brothers Inc. (each
an "INITIAL PURCHASER" and, together, the "INITIAL PURCHASERS"), each of whom
has agreed to purchase the Company's 8% Second Priority Senior Secured Notes due
2013 in an aggregate principal amount of $475,000,000 (the "SERIES A NOTES")
pursuant to the Purchase Agreement (as defined below).
This Agreement is made pursuant to the Purchase Agreement, dated
January 21, 2004 (the "PURCHASE AGREEMENT"), by and among the Company, the
Guarantors and the Initial Purchasers. In order to induce the Initial Purchasers
to purchase the Series A Notes, the Company and the Guarantors have agreed to
provide the registration rights set forth in this Agreement. The execution and
delivery of this Agreement is a condition to the obligations of the Initial
Purchasers set forth in Section 7(q) of the Purchase Agreement. Capitalized
terms used herein and not otherwise defined shall have the meanings assigned to
them in the Indenture, dated December 23, 2003, among the Company, the
Guarantors and Law Debenture Trust Company of New York, as Trustee, relating to
the Series A Notes and the Series B Notes (as defined below) (the "INDENTURE").
The parties hereby agree as follows:
19. DEFINITIONS
As used in this Agreement, the following capitalized terms shall have
the following meanings:
Act: The Securities Act of 1933, as amended.
Affiliate: As defined in Rule 144 of the Act.
Broker-Dealer: Any broker or dealer registered under the Exchange Act.
Business Day: Any day other than a Saturday, a Sunday or a day on which
banking institutions in the City of New York or at a place of payment are
authorized by law, regulation or executive order to remain closed.
Certificated Securities: Definitive Notes, as defined in the Indenture.
Closing Date: The date hereof.
Commission: The Securities and Exchange Commission.
Consummate: An Exchange Offer shall be deemed "Consummated" for
purposes of this Agreement upon the occurrence of (a) the filing and
effectiveness under the Act of the Exchange Offer Registration Statement
relating to the Series B Notes to be issued in the Exchange Offer; (b) the
maintenance of such Exchange Offer Registration Statement continuously effective
and the keeping of the Exchange Offer open for a period not less than the period
required pursuant to Section 3(b) hereof; and (c) the delivery by the Company to
the Registrar under the Indenture of Series B Notes in the same aggregate
principal amount as the aggregate principal amount of Series A Notes tendered by
Holders thereof pursuant to the Exchange Offer.
Consummation Deadline: As defined in Section 3(b) hereof.
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December 2003 Notes: The Company's previously issued $1,250,000,000 in
aggregate principal amount of 8% Second Priority Senior Secured Notes due 2013
under the Indenture.
Effectiveness Deadline: As defined in Section 3(a) and 4(a) hereof.
Exchange Act: The Securities Exchange Act of 1934, as amended.
Exchange Offer: The exchange and issuance by the Company of a principal
amount of Series B Notes (which shall be registered pursuant to the Exchange
Offer Registration Statement) equal to the outstanding principal amount of
Series A Notes that are tendered by Holders in connection with such exchange and
issuance.
Exchange Offer Registration Statement: The Registration Statement
relating to the Exchange Offer, including the related Prospectus.
Exempt Resales: The transactions in which the Initial Purchasers
propose to sell the Series A Notes to certain "qualified institutional buyers,"
as such term is defined in Rule 144A under the Act, and in compliance with
Regulation S under the Act.
Filing Deadline: As defined in Sections 3(a) and 4(a) hereof.
Guarantors: The entities listed on Schedule A hereto and any other
subsidiary of the Company that executes a Subsidiary Guarantee in accordance
with the Indenture.
Holders: As defined in Section 2 hereof.
Prospectus: The prospectus included in a Registration Statement at the
time such Registration Statement is declared effective, as amended or
supplemented by any prospectus supplement and by all other amendments thereto,
including post-effective amendments, and all material incorporated by reference
into such Prospectus.
Recommencement Date: As defined in Section 6(d) hereof.
Registration Default: As defined in Section 5 hereof.
Registration Statement: Any registration statement of the Company and
the Guarantors relating to (a) an offering of Series B Notes and related
Subsidiary Guarantees pursuant to an Exchange Offer or (b) the registration for
resale of Transfer Restricted Securities pursuant to the Shelf Registration
Statement, in each case (i) that is filed pursuant to the provisions of this
Agreement and (ii) including the Prospectus included therein, all amendments and
supplements thereto (including post-effective amendments) and all exhibits and
material incorporated by reference therein.
Regulation S: Regulation S promulgated under the Act.
Rule 144: Rule 144 promulgated under the Act.
Series B Notes: The Company's 8% Series B Second Priority Senior
Secured Notes due 2013 to be issued pursuant to the Indenture: (i) in the
Exchange Offer or (ii) as contemplated by Section 4 hereof.
Shelf Registration Statement: As defined in Section 4 hereof.
Suspension Notice: As defined in Section 6(e) hereof.
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TIA: The Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb)
as in effect on the date of the Indenture.
Transfer Restricted Securities: (i) Each Series A Note and the related
Subsidiary Guarantees, until the earliest to occur of (a) the date on which such
Series A Note is exchanged in the Exchange Offer for a Series B Note which is
entitled to be resold to the public by the Holder thereof without complying with
the prospectus delivery requirements of the Act; (b) the date on which such
Series A Note has been disposed of in accordance with a Shelf Registration
Statement; or (c) the date on which such Series A Note is distributed to the
public pursuant to Rule 144 under the Act; and (ii) each Series B Note and the
related Subsidiary Guarantees acquired by a Broker-Dealer in exchange for a
Series A Note acquired for its own account as a result of market making
activities or other trading activities until the date on which such Series B
Note is disposed of by a Broker-Dealer pursuant to the "Plan of Distribution"
contemplated by the Exchange Offer Registration Statement (including the
delivery of the Prospectus contained therein).
20. HOLDERS
A Person is deemed to be a holder of Transfer Restricted Securities
(each, a "HOLDER") whenever such Person owns Transfer Restricted Securities.
21. REGISTERED EXCHANGE OFFER
(a) Unless the Exchange Offer shall not be permitted by
applicable federal law (after the procedures set forth in Section 6(a)(i) below
have been complied with), the Company and the Guarantors shall (i) cause the
Exchange Offer Registration Statement to be filed with the Commission as soon as
practicable after the Closing Date, but in no event later than 150 days after
December 23, 2003 (such 150th day being the "FILING DEADLINE"); (ii) use all
commercially reasonable efforts to cause such Exchange Offer Registration
Statement to become effective at the earliest possible time, but in no event
later than 210 days after December 23, 2003 (such 210th day being the
"EFFECTIVENESS DEADLINE"); (iii) in connection with the foregoing, (A) file all
pre-effective amendments to such Exchange Offer Registration Statement as may be
necessary in order to cause it to become effective, (B) file, if applicable, a
post-effective amendment to such Exchange Offer Registration Statement pursuant
to Rule 430A under the Act and (C) cause all necessary filings, if any, in
connection with the registration and qualification of the Series B Notes to be
made under the Blue Sky laws of such jurisdictions as are necessary to permit
Consummation of the Exchange Offer; and (iv) upon the effectiveness of such
Exchange Offer Registration Statement, commence and Consummate the Exchange
Offer. The Exchange Offer shall be on the appropriate form permitting (i)
registration of the Series B Notes to be offered in exchange for the Series A
Notes that are Transfer Restricted Securities and (ii) resales of Series B Notes
by Broker-Dealers that tendered into the Exchange Offer Series A Notes that such
Broker-Dealer acquired for its own account as a result of market making
activities or other trading activities (other than Series A Notes acquired
directly from the Company or any of its Affiliates) as contemplated by Section
3(c) below.
(b) The Company and the Guarantors shall use all
commercially reasonable efforts to cause the Exchange Offer Registration
Statement to be effective continuously, and shall keep the Exchange Offer open
for a period of not less than the minimum period required under applicable
federal and state securities laws to Consummate the Exchange Offer; provided,
however, that in no event shall such period be less than 20 Business Days. The
Company and the Guarantors shall cause the Exchange Offer to comply with all
applicable federal and state securities laws. No securities other than the
Series B Notes shall be included in the Exchange Offer Registration Statement,
except for the exchange notes (and the guarantees thereof) to be issued pursuant
to the Indenture in exchange for the December 2003 Notes. The Company and the
Guarantors shall use all commercially reasonable efforts to cause the Exchange
Offer to be Consummated on the earliest practicable date after the Exchange
A-4
Offer Registration Statement has become effective, but in no event later than 30
Business Days thereafter (such 30th Business Day being the "CONSUMMATION
DEADLINE").
(c) The Company shall include a "Plan of Distribution"
section in the Prospectus contained in the Exchange Offer Registration Statement
and indicate therein that any Broker-Dealer who holds Transfer Restricted
Securities that were acquired for the account of such Broker-Dealer as a result
of market-making activities or other trading activities (other than Series A
Notes acquired directly from the Company or any Affiliate of the Company), may
exchange such Transfer Restricted Securities pursuant to the Exchange Offer.
Such "Plan of Distribution" section shall also contain all other information
with respect to such sales by such Broker-Dealers that the Commission may
require in order to permit such sales pursuant thereto, but such "Plan of
Distribution" shall not name any such Broker-Dealer or disclose the amount of
Transfer Restricted Securities held by any such Broker-Dealer, except to the
extent required by the Commission as a result of a change in policy, rules or
regulations after the date of this Agreement.
Because any such Broker-Dealer may be deemed to be an "underwriter"
within the meaning of the Act and must, therefore, deliver a prospectus meeting
the requirements of the Act in connection with its initial sale of any Series B
Notes received by such Broker-Dealer in the Exchange Offer, the Company and the
Guarantors shall permit the use of the Prospectus contained in the Exchange
Offer Registration Statement by such Broker-Dealer to satisfy such prospectus
delivery requirement. To the extent necessary to ensure that the Prospectus
contained in the Exchange Offer Registration Statement is available for sales of
Series B Notes by Broker-Dealers, the Company and the Guarantors agree, in the
event any of them receives notice from a Broker-Dealer within 30 days of the
Consummation of the Exchange Offer that such Broker-Dealer holds Transfer
Restricted Securities that were acquired for the account of such Broker-Dealer
as a result of market-making or similar activities, to use all commercially
reasonable efforts to keep the Exchange Offer Registration Statement
continuously effective, supplemented, amended and current as required by and
subject to the provisions of Section 6(a) and (c) hereof and in conformity with
the requirements of this Agreement, the Act and the policies, rules and
regulations of the Commission as announced from time to time, for a period of
180 days from the date on which the Exchange Offer is Consummated or such
shorter period as will terminate when all Transfer Restricted Securities covered
by such Registration Statement have been sold pursuant thereto. The Company
shall provide sufficient copies of the latest version of such Prospectus to such
Broker-Dealers, promptly upon request, and in no event later than two Business
Days after such request, at any time during such period.
22. SHELF REGISTRATION
(a) Shelf Registration. If (i) the Exchange Offer is not
permitted by applicable law (after the Company and the Guarantors have complied
with the procedures set forth in Section 6(a)(i) below) or (ii) if any Holder of
Transfer Restricted Securities shall notify the Company in writing within 20
business days following the Consummation of the Exchange Offer that (A) such
Holder was prohibited by law or Commission policy from participating in the
Exchange Offer or (B) such Holder may not resell the Series B Notes acquired by
it in the Exchange Offer to the public without delivering a prospectus and the
Prospectus contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales by such Holder or (C) such Holder is a
Broker-Dealer and holds Series A Notes acquired directly from the Company or any
of its Affiliates, then the Company and the Guarantors shall:
(x) use all commercially reasonable efforts to cause to
be filed, on or prior to 30 days after the earlier of (i) the date on which the
Company determines that the Exchange Offer Registration Statement cannot be
filed as a result of clause (a)(i) above and (ii) the date on which the Company
A-5
receives the notice specified in clause (a)(ii) above (such earlier date, the
"FILING DEADLINE"), a shelf registration statement pursuant to Rule 415 under
the Act (which may be an amendment to the Exchange Offer Registration Statement
(the "SHELF REGISTRATION STATEMENT")), relating to all Transfer Restricted
Securities; provided, however, that nothing in this Section 4(a)(x) shall
require the filing of the Shelf Registration Statement prior to the Filing
Deadline for the Exchange Offer Registration Statement; and
(y) shall use all commercially reasonable efforts to cause such
Shelf Registration Statement to become effective on or prior to 90 days after
the Filing Deadline for the Shelf Registration Statement (such 90th day the
"EFFECTIVENESS DEADLINE").
If, after the Company has and the Guarantors have filed an Exchange
Offer Registration Statement that satisfies the requirements of Section 3(a)
above, the Company is and the Guarantors are required to file and make effective
a Shelf Registration Statement solely because the Exchange Offer is not
permitted under applicable federal law (i.e., clause (a)(i) above), then the
filing of the Exchange Offer Registration Statement shall be deemed to satisfy
the requirements of clause (x) above; provided that, in such event, the Company
and the Guarantors shall remain obligated to meet the Effectiveness Deadline set
forth in clause (y).
To the extent necessary to ensure that the Shelf Registration Statement
is available for sales of Transfer Restricted Securities by the Holders thereof
entitled to the benefit of this Section 4(a) and the other securities required
to be registered therein pursuant to Section 6(b)(ii) hereof, the Company and
the Guarantors shall use all commercially reasonable efforts to keep any Shelf
Registration Statement required by this Section 4(a) continuously effective,
supplemented, amended and current as required by and subject to the provisions
of Sections 6(b) and (c) hereof and in conformity with the requirements of this
Agreement, the Act and the policies, rules and regulations of the Commission as
announced from time to time, for a period of at least two years (as extended
pursuant to Section 6(c)(i)) following the Closing Date, or such shorter period
as will terminate when all Transfer Restricted Securities covered by such Shelf
Registration Statement have been sold pursuant thereto.
(b) Provision by Holders of Certain Information in
Connection with the Shelf Registration Statement. No Holder of Transfer
Restricted Securities may include any of its Transfer Restricted Securities in
any Shelf Registration Statement pursuant to this Agreement unless and until
such Holder furnishes to the Company in writing, within 15 days after receipt of
a request therefor, the information specified in Item 507 or 508 of Regulation
S-K, as applicable, of the Act for use in connection with any Shelf Registration
Statement or Prospectus or preliminary Prospectus included therein. No Holder of
Transfer Restricted Securities shall be entitled to liquidated damages pursuant
to Section 5 hereof unless and until such Holder shall have provided all such
information. Each Holder agrees to promptly furnish additional information
required to be disclosed in order to make the information previously furnished
to the Company by such Holder not materially misleading. The Company shall not
be obligated to supplement such Shelf Registration Statement after it has been
declared effective by the Commission more than one time per quarterly period to
reflect additional Holders.
23. LIQUIDATED DAMAGES
If (i) any Registration Statement required by this Agreement is not
filed with the Commission on or prior to the applicable Filing Deadline; (ii)
any such Registration Statement has not been declared effective by the
Commission on or prior to the applicable Effectiveness Deadline; (iii) the
Exchange Offer has not been Consummated on or prior to the Consummation Deadline
or (iv) the Shelf Registration Statement is declared effective but thereafter,
pending the announcement of a material corporate transaction, the Company issues
a notice that the Shelf Registration Statement is unusable, or such notice
A-6
is required under applicable securities laws to be issued by the Company, and,
during the period specified in Section 4(a) above, the aggregate number of days
in any consecutive twelve-month period for which all such notices are issued or
required to be issued exceeds 45 days or (v) the Exchange Offer Registration
Statement is filed and declared effective but thereafter (A) during the period
through and including the Consummation Deadline, shall cease to be effective or
fail to be usable for its intended purpose without being succeeded within five
Business Days by a post-effective amendment to such Exchange Offer Registration
Statement that cures such failure and that is itself declared effective
immediately or (B) during the period from the day after the Consummation
Deadline through and including the one-hundred-eightieth day after the
Consummation Deadline, pending the announcement of a material corporate
transaction, the Company issues a notice that the Exchange Offer Registration
Statement is unusable for the purposes contemplated by the second paragraph of
Section 3(c) above, or such notice is required under applicable securities laws
to be issued by the Company, and, during the 180-day period specified in Section
3(c) above, the aggregate number of days for which all such notices are issued
or required to be issued exceeds 45 days (each such event referred to in clauses
(i) through (v), a "REGISTRATION DEFAULT"), then the Company and the Guarantors
hereby jointly and severally agree to pay to each Holder of Transfer Restricted
Securities affected thereby liquidated damages in an amount equal to $0.05 per
week per $1,000 in principal amount of Transfer Restricted Securities held by
such Holder for each week or portion thereof that the Registration Default
continues for the first 90-day period immediately following the occurrence of
such Registration Default. The amount of the liquidated damages shall increase
by an additional $0.05 per week per $1,000 in principal amount of Transfer
Restricted Securities with respect to each subsequent 90-day period until all
Registration Defaults have been cured, up to a maximum amount of liquidated
damages of $0.50 per week per $1,000 in principal amount of Transfer Restricted
Securities; provided that the Company and the Guarantors shall in no event be
required to pay liquidated damages for more than one Registration Default at any
given time. Notwithstanding anything to the contrary set forth herein, (1) upon
filing of the Exchange Offer Registration Statement (and/or, if applicable, the
Shelf Registration Statement), in the case of (i) above; (2) upon the
effectiveness of the Exchange Offer Registration Statement (and/or, if
applicable, the Shelf Registration Statement), in the case of (ii) above; (3)
upon Consummation of the Exchange Offer, in the case of (iii) above; or (4) upon
the filing of a post-effective amendment to the Registration Statement or an
additional Registration Statement that causes the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration Statement) to again be
declared effective or made usable in the case of clauses (iv) and (v) above, as
applicable, the liquidated damages payable with respect to the Transfer
Restricted Securities as a result of such clause (i), (ii), (iii), (iv) or
(v)(A) or (B), as applicable, shall cease.
All accrued liquidated damages shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the Indenture, on
each Interest Payment Date, as more fully set forth in the Indenture and the
Notes. Notwithstanding the fact that any securities for which liquidated damages
are due cease to be Transfer Restricted Securities, all obligations of the
Company and the Guarantors to pay liquidated damages with respect to securities
shall survive until such time as such obligations with respect to such
securities shall have been satisfied in full.
In the event that the Exchange Offer Registration Statement is declared
effective but thereafter the Company issues a notice as contemplated by clause
(v)(B) above, the number of days during which such Registration Statement is
unusable shall be deducted from the number of days permitted under the first
annual 45-day "blackout" period under clause (iv) above for purposes of
determining the number of days during which liquidated damages would accrue in
the event of a Registration Default under clause (iv) above.
24. REGISTRATION PROCEDURES
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(a) Exchange Offer Registration Statement. In connection
with the Exchange Offer, the Company and the Guarantors shall (x) comply with
all applicable provisions of Section 6(c) below; (y) use all commercially
reasonable efforts to effect such exchange and to permit the resale of Series B
Notes by any Broker-Dealer that tendered Series A Notes in the Exchange Offer
that such Broker-Dealer acquired for its own account as a result of its market
making activities or other trading activities (other than Series A Notes
acquired directly from the Company or any of its Affiliates) being sold in
accordance with the intended method or methods of distribution thereof; and (z)
comply with all of the following provisions:
(i) If, following the date hereof there has been
announced a change in Commission policy with respect to exchange offers such as
the Exchange Offer, that in the reasonable opinion of counsel to the Company
raises a substantial question as to whether the Exchange Offer is permitted by
applicable federal law, the Company and the Guarantors hereby agree to seek a
no-action letter or other favorable decision from the Commission allowing the
Company and the Guarantors to Consummate an Exchange Offer for such Transfer
Restricted Securities. The Company and the Guarantors hereby agree to pursue the
issuance of such a decision to the Commission staff level. In connection with
the foregoing, the Company and the Guarantors hereby agree to take all such
other actions as may be requested by the Commission or otherwise required in
connection with the issuance of such decision, including without limitation (A)
participating in telephonic conferences with the Commission staff, (B)
delivering to the Commission staff an analysis prepared by counsel to the
Company setting forth the legal bases, if any, upon which such counsel has
concluded that such an Exchange Offer should be permitted and (C) diligently
pursuing a resolution (which need not be favorable) by the Commission staff.
(ii) As a condition to its participation in the
Exchange Offer, each Holder of Transfer Restricted Securities (including,
without limitation, any Holder who is a Broker-Dealer) shall furnish, upon the
request of the Company, prior to the Consummation of the Exchange Offer, a
written representation to the Company and the Guarantors (which may be contained
in the letter of transmittal contemplated by the Exchange Offer Registration
Statement) to the effect that (A) it is not an Affiliate of the Company, (B) it
is not engaged in, and does not intend to engage in, and has no arrangement or
understanding with any person to participate in, a distribution of the Series B
Notes to be issued in the Exchange Offer and (C) it is acquiring the Series B
Notes in its ordinary course of business. Each Holder using the Exchange Offer
to participate in a distribution of the Series B Notes will be required to
acknowledge and agree that, if the resales are of Series B Notes obtained by
such Holder in exchange for Series A Notes acquired directly from the Company or
an Affiliate thereof, it (1) could not, under Commission policy as in effect on
the date of this Agreement, rely on the position of the Commission enunciated in
Xxxxxx Xxxxxxx and Co., Inc. (available June 5, 1991) and Exxon Capital Holdings
Corporation (available May 13, 1988), as interpreted in the Commission's letter
to Xxxxxxxx & Sterling dated July 2, 1993, and similar no-action letters
(including, if applicable, any no-action letter obtained pursuant to clause (i)
above), and (2) must comply with the registration and prospectus delivery
requirements of the Act in connection with a secondary resale transaction and
that such a secondary resale transaction must be covered by an effective
registration statement containing the selling security holder information
required by Item 507 or 508, as applicable, of Regulation S-K.
(iii) Prior to effectiveness of the Exchange Offer
Registration Statement, the Company and the Guarantors shall provide a
supplemental letter to the Commission (A) stating that the Company and the
Guarantors are registering the Exchange Offer in reliance on the position of the
Commission enunciated in Exxon Capital Holdings Corporation (available May 13,
1988), Xxxxxx Xxxxxxx and Co., Inc. (available June 5, 1991) as interpreted in
the Commission's letter to Xxxxxxxx & Sterling dated July 2, 1993, and, if
applicable, any no-action letter obtained pursuant to clause (i) above, (B)
including a representation that neither the Company nor any Guarantor has
entered into any
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arrangement or understanding with any Person to distribute the Series B Notes to
be received in the Exchange Offer and that, to the best of the Company's and
each Guarantor's information and belief, each Holder participating in the
Exchange Offer is acquiring the Series B Notes in its ordinary course of
business and has no arrangement or understanding with any Person to participate
in the distribution of the Series B Notes received in the Exchange Offer and (C)
any other undertaking or representation required by the Commission as set forth
in any no-action letter obtained pursuant to clause (i) above, if applicable.
(b) Shelf Registration Statement. In connection with the
Shelf Registration Statement, the Company and the Guarantors shall:
(i) comply with all the provisions of Section
6(c) and 6(d) below and use all commercially reasonable efforts to effect such
registration to permit the sale of the Transfer Restricted Securities being sold
in accordance with the intended method or methods of distribution thereof (as
indicated in the information furnished to the Company pursuant to Section 4(b)
hereof), and pursuant thereto the Company and the Guarantors will prepare and
file with the Commission a Registration Statement relating to the registration
on any appropriate form under the Act, which form shall be available for the
sale of the Transfer Restricted Securities in accordance with the intended
method or methods of distribution thereof within the time periods and otherwise
in accordance with the provisions hereof; and
(ii) issue, upon the request of any Holder or
purchaser of Series A Notes covered by any Shelf Registration Statement
contemplated by this Agreement, Series B Notes having an aggregate principal
amount equal to the aggregate principal amount of Series A Notes sold pursuant
to the Shelf Registration Statement and surrendered to the Company for
cancellation; the Company and the Guarantors shall register Series B Notes and
the related Subsidiary Guarantees on the Shelf Registration Statement for this
purpose and issue the Series B Notes to the purchaser(s) of securities subject
to the Shelf Registration Statement in the names as such purchaser(s) shall
designate.
(c) General Provisions. In connection with any
Registration Statement and any related Prospectus required by this Agreement,
the Company and the Guarantors shall:
(i) use all commercially reasonable efforts to
keep such Registration Statement continuously effective and provide all
requisite financial statements for the period specified in Section 3 or 4 of
this Agreement, as applicable. Upon the occurrence of any event that would cause
any such Registration Statement or the Prospectus contained therein (A) to
contain an untrue statement of material fact or omit to state any material fact
necessary to make the statements therein (in the case of the Prospectus only, in
light of the circumstances under which they were made) not misleading or (B) not
to be effective and usable for resale of Transfer Restricted Securities during
the period required by this Agreement, the Company and the Guarantors shall file
promptly an appropriate amendment to such Registration Statement curing such
defect, and, if Commission review is required, use all commercially reasonable
efforts to cause such amendment to be declared effective as soon as practicable.
Notwithstanding the foregoing, if the board of directors of the Company
determines in good faith that it is in the best interests of the Company not to
disclose the existence of facts surrounding any proposed or pending material
corporate transaction or other material development involving the Company and
the Guarantors, the Company may allow the Shelf Registration Statement to fail
to be effective or the Prospectus contained therein to be unusuable as a result
of such nondisclosure for up to 60 days in any year during the two-year period
of effectiveness required by Section 4(a) hereof, provided that a Registration
Default would not occur during such period;
(ii) prepare and file with the Commission such
amendments and post-effective amendments to the applicable Registration
Statement as may be necessary to keep such
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Registration Statement effective for the applicable period set forth in Section
3 or 4 hereof, as the case may be; cause the Prospectus to be supplemented by
any required Prospectus supplement, and as so supplemented to be filed pursuant
to Rule 424 under the Act, and to comply fully with Rules 424, 430A and 462, as
applicable, under the Act in a timely manner; and comply with the provisions of
the Act with respect to the disposition of all securities covered by such
Registration Statement during the applicable period in accordance with the
intended method or methods of distribution by the sellers thereof set forth in
such Registration Statement or supplement to the Prospectus;
(iii) in connection with any sale of Transfer
Restricted Securities that will result in such securities no longer being
Transfer Restricted Securities, cooperate with the Holders to facilitate the
timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive legends; and to register
such Transfer Restricted Securities in such denominations and such names as the
selling Holders may request at least two business days prior to such sale of
Transfer Restricted Securities;
(iv) use all commercially reasonable efforts to
cause the disposition of the Transfer Restricted Securities covered by the
Registration Statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller or
sellers thereof to consummate the disposition of such Transfer Restricted
Securities; provided, however, that neither the Company nor any Guarantor shall
be required to register or qualify as a foreign corporation where it is not now
so qualified or to take any action that would subject it to the service of
process in suits or to taxation, other than as to matters and transactions
relating to the Registration Statement, in any jurisdiction where it is not now
so subject;
(v) provide a CUSIP number for all Transfer
Restricted Securities not later than the effective date of a Registration
Statement covering such Transfer Restricted Securities and provide the Trustee
under the Indenture with certificates for the Transfer Restricted Securities
which are in a form eligible for deposit with The Depository Trust Company;
(vi) otherwise use all commercially reasonable
efforts to comply with all applicable rules and regulations of the Commission,
and make generally available to its security holders with regard to any
applicable Registration Statement, as soon as practicable, a consolidated
earnings statement meeting the requirements of Rule 158 (which need not be
audited) covering a twelve-month period beginning after the effective date of
the Registration Statement (as such term is defined in paragraph (c) of Rule 158
under the Act); and
(vii) cause the Indenture to be qualified under
the TIA not later than the effective date of the first Registration Statement
required by this Agreement and, in connection therewith, cooperate with the
Trustee to effect such changes to the Indenture as may be required for such
Indenture to be so qualified in accordance with the terms of the TIA; and
execute and use all commercially reasonable best efforts to cause the Trustee to
execute, all documents that may be required to effect such changes and all other
forms and documents required to be filed with the Commission to enable such
Indenture to be so qualified in a timely manner.
(d) Additional Provisions Applicable to Shelf
Registration Statements and Certain Exchange Offer Prospectuses. In connection
with each Shelf Registration Statement, and each Exchange Offer Registration
Statement if and to the extent that an Initial Purchaser has notified the
Company in writing that it is a holder of Series B Notes that are Transfer
Restricted Securities (for so long as such Series B Notes are Transfer
Restricted Securities or for the period provided in Section 3, whichever is
shorter), the Company and the Guarantors shall:
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(i) advise each selling Holder promptly and, if
requested by such selling Holder, confirm such advice in writing, (A) when the
Prospectus or any Prospectus supplement or post-effective amendment has been
filed, and, with respect to any applicable Registration Statement or any
post-effective amendment thereto, when the same has become effective; (B) of any
request by the Commission for amendments to the Registration Statement or
amendments or supplements to the Prospectus or for additional information
relating thereto; (C) of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement under the Act or of
the suspension by any state securities commission of the qualification of the
Transfer Restricted Securities for offering or sale in any jurisdiction, or the
initiation of any proceeding for any of the preceding purposes; (D) of the
existence of any fact or the happening of any event that makes any statement of
a material fact made in the Registration Statement, the Prospectus, any
amendment or supplement thereto or any document incorporated by reference
therein untrue, or that requires the making of any additions to or changes in
the Registration Statement in order to make the statements therein not
misleading, or that requires the making of any additions to or changes in the
Prospectus in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading and (E) of the
existence of any event as described in the last sentence of Section 6(c)(i)
hereof. If at any time the Commission shall issue any stop order suspending the
effectiveness of any Registration Statement, or any state securities commission
or other regulatory authority shall issue an order suspending the qualification
or exemption from qualification of the Transfer Restricted Securities under
state securities or Blue Sky laws, the Company and the Guarantors shall use all
commercially reasonable efforts to obtain the withdrawal or lifting of such
order at the earliest possible time;
(ii) if any fact or event contemplated by Section
6(d)(i)(D) above shall exist or have occurred, prepare a supplement or
post-effective amendment to the Registration Statement or related Prospectus or
any document incorporated therein by reference or file any other required
document so that, as thereafter delivered to the purchasers of Transfer
Restricted Securities, the Prospectus will not contain an untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading;
(iii) furnish to each selling Holder in connection
with such exchange or sale, if any, before filing with the Commission, copies of
any Registration Statement or any Prospectus included therein (except the
Prospectus included in the Exchange Offer Registration Statement at the time it
was declared effective) or any amendments or supplements to any such
Registration Statement or Prospectus (including all documents incorporated by
reference after the initial filing of such Registration Statement), which
documents will be subject to the review and comment of such selling Holders in
connection with such sale, if any, for a period of at least five Business Days,
and the Company will not file any such Registration Statement or Prospectus or
any amendment or supplement to any such Registration Statement or Prospectus
(including all such documents incorporated by reference) to which such selling
Holders shall reasonably object within five Business Days after the receipt
thereof. A selling Holder shall be deemed to have reasonably objected to such
filing if such Registration Statement, amendment, Prospectus or supplement, as
applicable, as proposed to be filed, contains an untrue statement of a material
fact or omits to state any material fact necessary to make the statements
therein (in case of the Prospectus only, in light of the circumstances under
which they were made) not misleading or fails to comply with the applicable
requirements of the Act;
(iv) upon request, promptly prior to the filing
of any document that is to be incorporated by reference into a Registration
Statement or Prospectus, provide copies of such document to each Holder in
connection with such exchange or sale, if any, make the Company's and the
Guarantors' representatives available for discussion of such document and other
customary due diligence matters, and include such information in such document
prior to the filing thereof as such Holders may reasonably request;
A-11
(v) subject to appropriate confidentiality
agreements being entered into, make available, at reasonable times, for
inspection by each selling Holder and any attorney or accountant retained by
such selling Holders, all financial and other records, pertinent corporate
documents of the Company and the Guarantors and cause the Company's and the
Guarantors' officers, directors and employees to supply all information
reasonably requested by any such selling Holder, attorney or accountant in
connection with such Registration Statement or any post-effective amendment
thereto subsequent to the filing thereof and prior to its effectiveness;
(vi) if requested by any selling Holders in
connection with such exchange or sale, promptly include in any Registration
Statement or Prospectus, pursuant to a supplement or post-effective amendment if
necessary, such information as such selling Holders may reasonably request to
have included therein, including, without limitation, information relating to
the "Plan of Distribution" of the Transfer Restricted Securities; and make all
required filings of such Prospectus supplement or post-effective amendment as
soon as practicable after the Company is notified of the matters to be included
in such Prospectus supplement or post-effective amendment;
(vii) furnish to each selling Holder in connection
with such exchange or sale without charge, at least one copy of the Registration
Statement, as first filed with the Commission, and of each amendment thereto,
including all documents incorporated by reference therein and all exhibits
(including exhibits incorporated therein by reference);
(viii) deliver to each selling Holder without
charge, as many copies of the Prospectus (including each preliminary prospectus)
and any amendment or supplement thereto as such Persons reasonably may request;
the Company and the Guarantors hereby consent to the use (in accordance with
law) of the Prospectus and any amendment or supplement thereto by each selling
Holder in connection with the offering and the sale of the Transfer Restricted
Securities covered by the Prospectus or any amendment or supplement thereto;
(ix) upon the request of Holders who collectively
hold an aggregate principal amount of Series A Notes in excess of 20% of the
amount of outstanding Transfer Restricted Securities (the "REQUESTING HOLDERS"),
enter into such agreements (including underwriting agreements) on up to three
occasions and make such customary representations and warranties and take all
such other actions in connection therewith as may be reasonable customary in
underwritten offerings in order to expedite or facilitate the disposition of the
Transfer Restricted Securities pursuant to any applicable Registration Statement
contemplated by this Agreement as may be reasonably requested by the Requesting
Holders in connection with any sale or resale pursuant to any applicable
Registration Statement. In such connection, the Company and the Guarantors
shall:
upon request of any Requesting Holder, furnish (or in the case of paragraphs (2)
and (3), use all commercially reasonable efforts to cause to be furnished) to
each Requesting Holder, upon Consummation of the Exchange Offer or upon the
effectiveness of the Shelf Registration Statement, as the case may be:
a certificate, dated such date, signed on behalf of the Company and each
Guarantor by an officer of the Company or of such Guarantor, as the case may be,
confirming, as of the date thereof, the matters set forth in Section 7(o) of the
Purchase Agreement and such other similar matters as such Requesting Holders may
reasonably request;
an opinion, dated the date of Consummation of the Exchange Offer or the date of
effectiveness of the Shelf Registration Statement, as the case may be, of
counsel for the Company and the Guarantors covering matters similar to those set
forth in Exhibits B through F of the Purchase Agreement and such
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other matters as such Requesting Holders may reasonably request, and in any
event including a statement to the effect that such counsel has participated in
conferences with officers and other representatives of the Company and the
Guarantors, representatives of the independent public accountants for the
Company and the Guarantors and has considered the matters required to be stated
therein and the statements contained therein, although such counsel has not
independently verified the accuracy, completeness or fairness of such
statements; and that such counsel advises that, on the basis of the foregoing,
no facts came to such counsel's attention that caused such counsel to believe
that the applicable Registration Statement, at the time such Registration
Statement or any post-effective amendment thereto became effective and, in the
case of the Exchange Offer Registration Statement, as of the date of
Consummation of the Exchange Offer, contained an untrue statement of a material
fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, or that the Prospectus
contained in such Registration Statement as of its date and, in the case of the
opinion dated the date of Consummation of the Exchange Offer, as of the date of
Consummation, contained an untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. Without
limiting the foregoing, such counsel may state further that such counsel assumes
no responsibility for, and has not independently verified, the accuracy,
completeness or fairness of the financial statements, notes and schedules and
other financial data included in any Registration Statement contemplated by this
Agreement or the related Prospectus; and
a customary comfort letter, dated the date of Consummation of the Exchange
Offer, or as of the date of effectiveness of the Shelf Registration Statement,
as the case may be, from the Company's independent accountants, in the customary
form and covering matters of the type customarily covered in comfort letters to
underwriters in connection with underwritten offerings, and affirming the
matters set forth in the comfort letters delivered pursuant to Sections 7(l) and
7(m) of the Purchase Agreement; and
deliver such other documents and certificates as may be reasonably requested by
the Requesting Holders to evidence compliance with the matters covered in clause
(A) above and with any customary conditions contained in any agreement entered
into by the Company and the Guarantors pursuant to this clause (ix);
(x) prior to any public offering of Transfer
Restricted Securities, cooperate with the selling Holders and their counsel in
connection with the registration and qualification of the Transfer Restricted
Securities under the securities or Blue Sky laws of such jurisdictions as the
selling Holders may request and do any and all other acts or things necessary or
advisable to enable the disposition in such jurisdictions of the Transfer
Restricted Securities covered by the applicable Registration Statement;
provided, however, that neither the Company nor any Guarantor shall be required
to register or qualify as a foreign corporation where it is not now so qualified
or to take any action that would subject it to the service of process in suits
or to taxation, other than as to matters and transactions relating to the
Registration Statement, in any jurisdiction where it is not now so subject; and
(xi) provide promptly to each Holder, upon
request, each document filed with the Commission pursuant to the requirements of
Section 13 or Section 15(d) of the Exchange Act.
(e) Restrictions on Holders. Each Holder's acquisition of
a Transfer Restricted Security constitutes such Holder's agreement that, upon
receipt of the notice referred to in Section 6(d)(i)(C) or any notice from the
Company of the existence of any fact of the kind described in Section 6(d)(i)(D)
hereof or of any event of the kind described in the last sentence of Section
6(c)(i) hereof (in each case, a "SUSPENSION NOTICE"), such Holder will forthwith
discontinue disposition of Transfer Restricted Securities pursuant to the
applicable Registration Statement until (i) such Holder has received copies of
the supplemented or amended Prospectus contemplated by Section 6(d)(ii) hereof,
or (ii) such Holder is advised in writing by the Company that the use of the
Prospectus may be resumed, and has
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received copies of any additional or supplemental filings that are incorporated
by reference in the Prospectus (in each case, the "RECOMMENCEMENT DATE"). Each
Holder receiving a Suspension Notice shall be required to either (i) destroy any
Prospectuses, other than permanent file copies, then in such Holder's possession
which have been replaced by the Company with more recently dated Prospectuses or
(ii) deliver to the Company (at the Company's expense) all copies, other than
permanent file copies, then in such Holder's possession of the Prospectus
covering such Transfer Restricted Securities that was current at the time of
receipt of the Suspension Notice. The time period regarding the effectiveness of
such Registration Statement set forth in Section 3 or 4 hereof, as applicable,
shall be extended by a number of days equal to the number of days in the period
from and including the date of delivery of the Suspension Notice to the date of
delivery of the Recommencement Date.
25. REGISTRATION EXPENSES
(a) All expenses incident to the Company's and the
Guarantors' performance of or compliance with this Agreement will be borne by
the Company, regardless of whether a Registration Statement becomes effective,
including without limitation: (i) all registration and filing fees and expenses;
(ii) all fees and expenses of compliance with federal securities and state Blue
Sky or securities laws; (iii) all expenses of printing (including certificates
for the Series B Notes to be issued in the Exchange Offer and printing of
Prospectuses, messenger and delivery services and telephone); (iv) all fees and
disbursements of counsel for the Company, the Guarantors and one counsel for the
Holders of Transfer Restricted Securities which shall be Xxxxxx & Xxxxxxx LLP or
such other counsel as may be selected by a majority of such Holders; (v) all
application and filing fees in connection with listing the Series B Notes on a
national securities exchange or automated quotation system pursuant to the
requirements hereof; and (vi) all fees and disbursements of independent
certified public accountants of the Company and the Guarantors (including the
expenses of any special audit and comfort letters required by or incident to
such performance).
The Company will, in any event, bear its and the Guarantors' internal
expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expenses of
any annual audit and the fees and expenses of any Person, including special
experts, retained by the Company or the Guarantors.
(b) In connection with any Registration Statement
required by this Agreement (including, without limitation, the Exchange Offer
Registration Statement and the Shelf Registration Statement), the Company and
the Guarantors will reimburse the Initial Purchasers and the Holders of Transfer
Restricted Securities who are tendering Series A Notes into in the Exchange
Offer and/or selling or reselling Series A Notes or Series B Notes pursuant to
the "Plan of Distribution" contained in the Exchange Offer Registration
Statement or the Shelf Registration Statement, as applicable, for the reasonable
fees and disbursements of not more than one counsel, who shall be Xxxxxx &
Xxxxxxx LLP unless another firm shall be chosen by the Holders of a majority in
principal amount of the Transfer Restricted Securities for whose benefit such
Registration Statement is being prepared.
26. INDEMNIFICATION
(a) The Company and the Guarantors agree, jointly and
severally, to indemnify and hold harmless each Holder, its directors, officers
and each Person, if any, who controls such Holder (within the meaning of Section
15 of the Act or Section 20 of the Exchange Act), from and against any and all
losses, claims, damages, liabilities, judgments, (including without limitation,
any legal or other expenses incurred in connection with investigating or
defending any matter, including any action that could give rise to any such
losses, claims, damages, liabilities or judgments) caused by any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement,
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preliminary prospectus or Prospectus (or any amendment or supplement thereto)
provided by the Company to any Holder or any prospective purchaser of Series B
Notes or registered Series A Notes, or caused by any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein (in the case of a preliminary
prospectus or Prospectus or any supplement thereto, in the light of the
circumstances under which they were made) not misleading, except insofar as such
losses, claims, damages, liabilities or judgments are caused by an untrue
statement or omission or alleged untrue statement or omission that is based upon
information relating to any of the Holders furnished in writing to the Company
by any of the Holders; provided, that the Company and each Guarantor will not be
liable to any Holder under this Section 8(a) to the extent, but only to the
extent, that (1) such loss, claim, damage or liability resulted solely from an
untrue statement or omission or alleged untrue statement or omission of a
material fact contained in or omitted from such preliminary Prospectus which was
corrected in the final Prospectus, (2) the Company sustains the burden of
proving that such Holder sold Transfer Restricted Securities to the person
alleging such loss, claim, damage or liability without sending or giving a copy
of the Prospectus within the time required by the Act, (3) the Company had
previously furnished sufficient quantities of the Prospectus to such Holder in
such amounts and within such period of time as required under this Agreement and
(4) such Holder failed to deliver the Prospectus, if required by law to have so
delivered it, and such delivery would have been a complete defense against the
person asserting such loss, claim, damage or liability.
(b) By its acquisition of Transfer Restricted Securities,
each Holder of Transfer Restricted Securities agrees, severally and not jointly,
to indemnify and hold harmless the Company and the Guarantors, and its their
respective directors and officers, and each person, if any, who controls (within
the meaning of Section 15 of the Act or Section 20 of the Exchange Act) the
Company or the Guarantors to the same extent as the foregoing indemnity from the
Company and the Guarantors set forth in section (a) above, but only with
reference to information relating to such Holder furnished in writing to the
Company by such Holder expressly for use in any Registration Statement. In no
event shall any Holder, its directors, officers or any Person who controls such
Holder be liable or responsible for any amount in excess of the amount by which
the total amount received by such Holder with respect to its sale of Transfer
Restricted Securities pursuant to a Registration Statement exceeds (i) the
amount paid by such Holder for such Transfer Restricted Securities; and (ii) the
amount of any damages that such Holder, its directors, officers or any Person
who controls such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission.
(c) In case any action shall be commenced involving any
person in respect of which indemnity may be sought pursuant to Section 8(a) or
8(b) (the "INDEMNIFIED PARTY"), the indemnified party shall promptly notify the
person against whom such indemnity may be sought (the "INDEMNIFYING PERSON") in
writing and the indemnifying party shall assume the defense of such action,
including the employment of counsel reasonably satisfactory to the indemnified
party and the payment of all fees and expenses of such counsel, as incurred
(except that in the case of any action in respect of which indemnity may be
sought pursuant to both Sections 8(a) and 8(b), a Holder shall not be required
to assume the defense of such action pursuant to this Section 8(c), but may
employ separate counsel and participate in the defense thereof, but the fees and
expenses of such counsel, except as provided below, shall be at the expense of
the Holder). Any indemnified party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of the indemnified party
unless (i) the employment of such counsel shall have been specifically
authorized in writing by the indemnifying party; (ii) the indemnifying party
shall have failed to assume the defense of such action or employ counsel
reasonably satisfactory to the indemnified party; or (iii) the named parties to
any such action (including any impleaded parties) include both the indemnified
party and the indemnifying party, and the indemnified party shall have been
advised by such counsel that there may be one or more legal defenses available
to it which are different from or additional to those available to the
indemnifying party (in which case the indemnifying party shall not have the
right to assume the
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defense of such action on behalf of the indemnified party). In any such case,
the indemnifying party shall not, in connection with any one action or separate
but substantially similar or related actions in the same jurisdiction arising
out of the same general allegations or circumstances, be liable for the fees and
expenses of more than one separate firm of attorneys (in addition to any local
counsel) for all indemnified parties and all such fees and expenses shall be
reimbursed as they are incurred. Such firm shall be designated in writing by a
majority of the Holders, in the case of the parties indemnified pursuant to
Section 8(a), and by the Company and the Guarantors, in the case of parties
indemnified pursuant to Section 8(b). No indemnifying party shall (i) without
the prior written consent of the indemnified parties (which consent shall not be
unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, or (ii) be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with the consent of
the indemnifying party or if there be a final judgment of the plaintiff in any
such action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss or liability by reason of such
settlement or judgment.
(d) To the extent that the indemnification provided for
in this Section 8 is unavailable to an indemnified party in respect of any
losses, claims, damages, liabilities or judgments referred to therein, then each
indemnifying party, in lieu of indemnifying such indemnified party, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, liabilities or judgments (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company and
the Guarantors on the one hand, and the Holders, on the other hand, from their
initial sale of Transfer Restricted Securities (or in the case of Series B Notes
that are Transfer Restricted Securities, the sale of the Series A Notes for
which such Series B Notes were exchanged); or (ii) if the allocation provided by
clause 8(d)(i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause
8(d)(i) above but also the relative fault of the Company and the Guarantors, on
the one hand, and of the Holder, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages,
liabilities or judgments, as well as any other relevant equitable
considerations. The relative fault of the Company and the Guarantors, on the one
hand, and of the Holder, on the other hand, shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or such Guarantor, on the one hand, or by
the Holder, on the other hand, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The amount paid or payable by a party as a result of the losses,
claims, damages, liabilities and judgments referred to above shall be deemed to
include, subject to the limitations set forth in the second paragraph of this
Section 8(d), any legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any action or claim.
The Company, the Guarantors and, by its acquisition of Transfer
Restricted Securities, each Holder agree that it would not be just and equitable
if contribution pursuant to this Section 8(d) were determined by pro rata
allocation (even if the Holders were treated as one entity for such purpose) or
by any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount
paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities or judgments referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any matter, including any action
that could have given rise to such losses, claims, damages, liabilities or
judgments.
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Notwithstanding the provisions of this Section 8, no Holder, its directors, its
officers or any Person, if any, who controls such Holder shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the
total received by such Holder with respect to the sale of Transfer Restricted
Securities pursuant to a Registration Statement exceeds (i) the amount paid by
such Holder for such Transfer Restricted Securities; and (ii) the amount of any
damages which such Holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. The Holders' obligations to contribute
pursuant to this Section 8(d) are several in proportion to the respective
principal amount of Transfer Restricted Securities held by each Holder hereunder
and not joint.
27. RULE 144A AND RULE 144
The Company and each Guarantor agrees with each Holder, for so long as
any Transfer Restricted Securities remain outstanding and during any period in
which the Company or such Guarantor (i) is not subject to Section 13 or 15(d) of
the Exchange Act, to make available within a reasonable period of time, upon
written request of any Holder, to such Holder or beneficial owner of Transfer
Restricted Securities in connection with any sale thereof and any prospective
purchaser of such Transfer Restricted Securities designated by such Holder or
beneficial owner, the information required by Rule 144A(d)(4) under the Act in
order to permit resales of such Transfer Restricted Securities pursuant to Rule
144A; and (ii) is subject to Section 13 or 15(d) of the Exchange Act, to make
all filings required thereby in a timely manner in order to permit resales of
such Transfer Restricted Securities pursuant to Rule 144.
28. MISCELLANEOUS
(a) Remedies. The Company and the Guarantors acknowledge
and agree that any failure by the Company and/or the Guarantors to comply with
their respective obligations under Sections 3 and 4 hereof may result in
material irreparable injury to the Initial Purchasers or the Holders for which
there is no adequate remedy at law, that it will not be possible to measure
damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers or any Holder may obtain such relief as may be required
to specifically enforce the Company's and the Guarantor's obligations under
Sections 3 and 4 hereof. The Company and the Guarantors further agree to waive
the defense in any action for specific performance that a remedy at law would be
adequate.
(b) No Inconsistent Agreements. The Company and the
Guarantors will not, on or after the date of this Agreement, enter into any
agreement with respect to their respective securities that is inconsistent with
the rights granted to the Holders in this Agreement or otherwise conflicts with
the provisions hereof. The Company and the Guarantors have not previously
entered into any agreement, other than the registration rights agreement, dated
December 23, 2003, between the Company, the Guarantors and the initial
purchasers relating to the December 2003 Notes, granting any registration rights
with respect to its their respective securities to any Person that would require
such securities to be included in any Registration Statement filed hereunder.
The rights granted to the Holders hereunder do not in any way conflict with and
are not inconsistent with the rights granted to the holders of the Company's and
the Guarantors' securities under any agreement in effect on the date hereof.
(c) Amendments and Waivers. The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to or departures from the provisions hereof may not be given unless (i) in the
case of Section 5 hereof and this Section 10(c)(i), the Company has obtained the
written consent of Holders of all outstanding Transfer Restricted Securities;
and (ii) in the case of all other provisions hereof, the Company has obtained
the written consent of Holders of a majority of the outstanding principal amount
of Transfer Restricted Securities (excluding Transfer Restricted
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Securities held by the Company or its Affiliates). Notwithstanding the
foregoing, a waiver or consent to departure from the provisions hereof that
relates exclusively to the rights of Holders whose Transfer Restricted
Securities are being tendered pursuant to the Exchange Offer, and that does not
affect directly or indirectly the rights of other Holders whose Transfer
Restricted Securities are not being tendered pursuant to such Exchange Offer,
may be given by the Holders of a majority of the outstanding principal amount of
Transfer Restricted Securities subject to such Exchange Offer.
(d) Third Party Beneficiary. The Holders shall be third
party beneficiaries to the agreements made hereunder between the Company and the
Guarantors, on the one hand, and the Initial Purchasers, on the other hand, and
shall have the right to enforce such agreements directly to the extent they may
deem such enforcement necessary or advisable to protect their rights hereunder.
(e) Notices. All notices and other communications
provided for or permitted hereunder shall be made in writing by hand-delivery,
first-class mail (registered or certified, return receipt requested), telex,
telecopier, or air courier guaranteeing overnight delivery:
(i) if to a Holder, at the address set forth on
the records of the Registrar under the Indenture, with a copy to the Registrar
under the Indenture; and
(ii) if to the Company or any of the Guarantors:
NRG Energy, Inc,
000 Xxxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxxxx, Xxxxxxxxx 00000-0000
Attention: Xxxxx X. Xxxxxx, Esq.
Fax: (000) 000-0000
With a copy to:
Xxxxxxxx & Xxxxx LLP
000 Xxxx Xxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxx X. Xxxxx, Esq.
Fax: (000) 000-0000
All such notices and communications shall be deemed to have been duly
given at the time delivered by hand, when receipt acknowledged, if telecopied;
and on the next business day, if timely delivered to an air courier guaranteeing
overnight delivery.
Copies of all such notices, demands or other communications shall be
concurrently delivered by the Person giving the same to the Trustee at the
address specified in the Indenture.
(f) Successors and Assigns. This Agreement shall inure to
the benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders; provided, that nothing herein shall be deemed to
permit any assignment, transfer or other disposition of Transfer Restricted
Securities in violation of the terms hereof or of the Purchase Agreement or the
Indenture. If any transferee of any Holder shall acquire Transfer Restricted
Securities in any manner, whether by operation of law or otherwise, such
Transfer Restricted Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Transfer Restricted Securities such
Person shall be conclusively deemed to have agreed to be bound by and to perform
all of the terms and provisions of this Agreement, including the restrictions on
resale
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set forth in this Agreement and, if applicable, the Purchase Agreement, and such
Person shall be entitled to receive the benefits hereof.
(g) Counterparts. This Agreement may be executed in any
number of counterparts and by the parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.
(h) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.
(i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO THE CONFLICT OF LAW RULES THEREOF.
(j) Severability. In the event that any one or more of
the provisions contained herein, or the application thereof in any circumstance,
is held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.
(k) Entire Agreement. This Agreement is intended by the
parties as a final expression of their agreement and intended to be a complete
and exclusive statement of the agreement and understanding of the parties hereto
in respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein with respect to the registration rights granted with respect to the
Transfer Restricted Securities. This Agreement supersedes all prior agreements
and understandings between the parties with respect to such subject matter.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.
NRG ENERGY, INC.
By: ___________________________________
Name:
Title:
EACH GUARANTOR LISTED ON SCHEDULE A HEREOF
By: ______________________________________
Name:
Title:
CREDIT SUISSE FIRST BOSTON LLC
XXXXXX BROTHERS INC.
BY: CREDIT SUISSE FIRST BOSTON LLC
By: ________________________________
Name:
Title:
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SCHEDULE A
GUARANTORS
83. Xxxxxx Kill Power LLC
84. Astoria Gas Turbine Power LLC
85. Berrians I Gas Turbine Power LLC
86. Big Cajun II Unit 4 LLC
87. Capistrano Cogeneration Company
88. Chickahominy River Energy Corp.
89. Cobee Energy Development LLC
90. Commonwealth Atlantic Power LLC
91. Conemaugh Power LLC
92. Connecticut Jet Power LLC
93. Devon Power LLC
94. Dunkirk Power LLC
95. Eastern Sierra Energy Company
96. El Segundo Power II LLC
97. Hanover Energy Company
98. Xxxxxxx Power LLC
99. Indian River Operations Inc.
100. Indian River Power LLC
101. Xxxxx River Power LLC
102. Xxxxxxx Xxxxx XX
103. Keystone Power LLC
104. Louisiana Generating LLC
105. MidAtlantic Generation Holding LLC
106. Middletown Power LLC
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107. Montville Power LLC
108. NEO California Power LLC
109. NEO Xxxxxxx-Gen LLC
110. NEO Corporation
111. NEO Freehold-Gen LLC
112. NEO Landfill Gas Holdings Inc.
113. NEO Landfill Gas Inc.
114. NEO Nashville LLC
115. NEO Power Services Inc.
116. NEO Tajiguas LLC
117. Northeast Generation Holding LLC
118. Norwalk Power LLC
119. NRG Affiliate Services Inc.
120. NRG Xxxxxx Kill Operations Inc.
121. NRG Asia-Pacific, Ltd.
122. NRG Astoria Gas Turbine Operations Inc.
123. NRG Bayou Cove LLC
124. NRG Cabrillo Power Operations Inc.
125. NRG Cadillac Operations Inc.
126. NRG California Peaker Operations LLC
127. NRG Central U.S. LLC
128. NRG Connecticut Affiliate Services Inc.
129. NRG Devon Operations Inc.
130. NRG Dunkirk Operations Inc.
131. NRG Eastern LLC
132. NRG El Segundo Operations Inc.
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133. NRG Xxxxxxx Operations Inc.
134. NRG International LLC
135. NRG Xxxxxxx LLC
136. NRG Mesquite LLC
137. NRG MidAtlantic Affiliate Services Inc.
138. NRG MidAtlantic Generating LLC
139. NRG MidAtlantic LLC
140. NRG Middletown Operations Inc.
141. NRG Montville Operations Inc.
142. NRG New Jersey Energy Sales LLC
143. NRG New Roads Holdings LLC
144. NRG North Central Operations Inc.
145. NRG Northeast Affiliate Services Inc.
146. NRG Northeast Generating LLC
147. NRG Norwalk Harbor Operations Inc.
148. NRG Operating Services, Inc.
149. NRG Oswego Harbor Power Operations Inc.
150. NRG Power Marketing Inc.
151. NRG Rocky Road LLC
152. NRG Saguaro Operations Inc.
153. NRG South Central Affiliate Services Inc.
154. NRG South Central Generating LLC
155. NRG South Central Operations Inc.
156. NRG West Coast LLC
157. NRG Western Affiliate Services Inc.
158. Oswego Harbor Power LLC
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159. Saguaro Power LLC
160. Somerset Operations Inc.
161. Somerset Power LLC
162. South Central Generation Holding LLC
163. Vienna Operations Inc.
164. Vienna Power LLC
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EXHIBIT B
OPINIONS WITH RESPECT TO CORPORATE MATTERS
Xxxxxxxx & Xxxxx LLP, General Counsel for the Company, Xxxxxxxx Xxxxxx
and Finger, Xxxxxxx Street & Deinhard, Sheppard, Mullin, Xxxxxxx & Xxxxxxx, LLC,
local Virginia counsel and other local counsel for the Company shall
collectively provide the following opinions with respect to the corporate
matters pertaining to the Company and its subsidiaries:
(Capitalized terms used by not defined in this Exhibit B shall have the
meanings assigned to them in the Purchase Agreement.)
(i) The Company and the Guarantors have been
duly organized and are validly existing and in good standing under the laws of
their respective jurisdictions of organization, are duly qualified to do
business and are in good standing as foreign entities in each jurisdiction in
which their respective ownership or lease of property or the conduct of their
respective businesses requires such qualification and have all power and
authority necessary to own or hold their respective properties and conduct the
businesses in which they are engaged;
(ii) No registration under the Act of the Notes
is required for the sale of the Notes to you as contemplated hereby or for the
Exempt Resales, assuming (i) the accuracy of the Initial Purchasers'
representations in this Agreement and (ii) the accuracy of the Company's
representatives contained herein;
(iii) The Company and each Guarantor has the
capitalization as set forth in the Offering Circular, and all of the issued
shares of capital stock of the Company and each Guarantor have been duly
authorized and validly issued and are fully paid and non-assessable; and all of
the issued shares of capital stock of each subsidiary of the Company and each
Guarantor have been duly and validly authorized and issued and are fully paid,
non-assessable and (except (i) for directors' qualifying shares or foreign
national qualifying capital stock, (ii) as otherwise set forth in the Offering
Circular and (iii) as pledged to secure indebtedness of the Company and/or its
subsidiaries pursuant to credit facilities, indentures and other instruments
evidencing indebtedness as contemplated by the Offering Circular and existing on
the Closing Date) are owned directly or indirectly by the Company or such
Guarantor, free and clear of all liens, encumbrances, equities or claims;
(iv) The Company is not an "investment company,"
as such term is defined in the Investment Company Act of 1940, as amended;
(v) To the best of such counsel's knowledge and
other than as set forth in the Offering Circular, there are no legal or
governmental proceedings pending to which the Company, the Guarantors or any of
their respective subsidiaries is a party or of which any property or assets of
the Company, the Guarantors or any of their respective subsidiaries is the
subject that, if determined adversely to the Company, the Guarantors or any of
their respective subsidiaries, might have a material adverse effect on the
consolidated financial position, stockholders' equity, results of operations,
business or prospects of the Company, the Guarantors or any of their respective
subsidiaries; and, to the best of such counsel's knowledge, no such proceedings
are threatened or contemplated by governmental authorities or threatened by
others;
(vi) The statements contained in the Offering
Circular under the caption "Description of Notes" insofar as they purport to
constitute a summary of the terms of the Indenture, the Notes, the Guarantees,
the Registration Rights Agreement and the Security Documents and under the
B-1
captions "Certain Relationships and Related Transactions," "Certain Federal
Income Tax Consequences," "Management--Employment Agreements," "Description of
Certain Indebtedness" and "Plan of Distribution," insofar as they describe the
laws and documents referred therein, are accurate in all material respects;
(vii) The Company and each of the Guarantors (as
applicable) have all requisite corporate power and authority to enter into this
Agreement, the Security Documents, the Registration Rights Agreement and the
Indenture and to issue and sell to the Notes and the Exchange Notes;
(viii) This Agreement has been duly authorized,
executed and delivered by the Company and each of the Guarantors;
(ix) Each of the Security Documents has been duly
authorized, executed and delivered by the Company and each of the Guarantors (as
applicable) and, assuming the due execution and delivery thereof by the other
parties thereto, is the legally valid and binding agreement of the Company and
each of the Guarantors (as applicable), enforceable against the Company and each
of the Guarantors (as applicable) in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and other similar laws relating to or affecting creditor's rights
generally, by general equitable principles (regardless of whether such
enforceability is considered in a proceeding in equity or at law), by an implied
covenant of good faith and fair dealing, and, as to rights of indemnification
and contribution, by principles of public policy;
(x) The Registration Rights Agreement has been
duly authorized, executed and delivered by the Company and each of the
Guarantors and, assuming the due execution and delivery thereof by the Initial
Purchasers, is the legally valid and binding agreement of the Company and each
of the Guarantors, enforceable against the Company and each of the Guarantors in
accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws
relating to or affecting creditor's rights generally, by general equitable
principles (regardless of whether such enforceability is considered in a
proceeding in equity or at law), by an implied covenant of good faith and fair
dealing, and, as to rights of indemnification and contribution, by principles of
public policy;
(xi) The Indenture has been duly authorized,
executed and delivered by the Company and each of the Guarantors and, assuming
the due authorization, execution and delivery thereof by the Trustee, is the
legally valid and binding agreement of the Company and each of the Guarantors,
enforceable against the Company and each of the Guarantors in accordance with
its terms, except as such enforceability may be limited by bankruptcy,
fraudulent conveyance, insolvency, reorganization, moratorium, and other similar
laws relating to or affecting creditors' rights generally, by general equitable
principles (regardless of whether such enforceability is considered in a
proceeding in equity or at law) and by an implied covenant of good faith and
fair dealing; no qualification of the Indenture under the 1939 Act is required
in connection with the offer and sale of the Notes or in connection with the
Exempt Resales;
(xii) The Notes have been duly authorized by the
Company, and, when executed, issued and authenticated in accordance with the
terms of the Indenture and delivered to and paid for by you in accordance with
the terms of the Purchase Agreement, will be the legally valid and binding
obligations of the Company, enforceable against the Company in accordance with
their terms, except as such enforceability may be limited by bankruptcy,
fraudulent conveyance, insolvency, reorganization moratorium and other similar
laws relating to or affecting creditors' rights generally, by
B-2
general equitable principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and by an implied covenant of
good faith and fair dealing;
(xiii) The Exchange Notes have been authorized by
the Company;
(xiv) The Guarantee of each of the Guarantors has
been duly authorized by that Guarantor and, when executed by that Guarantor and
when the Notes on which such Guarantees have been endorsed have been duly
executed by the Company and authenticated by the Trustee in accordance with the
terms of the Indenture and delivered and paid for by the Initial Purchasers in
accordance with the terms of the Purchase Agreement, the Guarantee of each
Guarantor (assuming the due authorization, execution and delivery of the Notes
by the Company) will constitute the valid and binding obligations of that
Guarantor, enforceable against that Guarantor in accordance with their terms,
except as such enforceability may be limited by bankruptcy, fraudulent
conveyance, insolvency, reorganization moratorium and other similar laws
relating to or affecting creditors' rights generally, by general equitable
principles (regardless of whether such enforceability is considered in a
proceeding in equity or at law) and by an implied covenant of good faith and
fair dealing;
(xv) The Guarantees of the Exchange Notes have
been authorized by the Guarantors;
(xvi) The issue and sale of the Notes being
delivered on the Closing Date by the Company, and the compliance by the Company
and the Guarantors with all of the provisions of this Agreement, the Notes, the
Exchange Notes the Guarantees, the Guarantees of the Exchange Notes, the
Indenture, the Registration Rights Agreement, the Security Documents, the
consummation of the transactions contemplated hereby and thereby and the grant
and perfection of the security interests in the Collateral pursuant to the
Security Documents (i) will not conflict with or result in a breach or violation
of any of the terms or provisions of, or constitute a default under, any
material indenture, mortgage, deed of trust, loan agreement, lease or other
agreement or instrument known to such counsel to which the Company, any of the
Guarantors or any of their respective subsidiaries is a party or by which the
Company, any of the Guarantors or any of their respective subsidiaries is bound
or to which any of the property or assets of the Company, any of the Guarantors
or any of their subsidiaries is subject, (ii) will not result in any violation
of the provisions of the charter or by-laws of the Company, or any Guarantor or
(iii) will not violate any statute or any order, rule or regulation known to
such counsel of any court or governmental agency or body having jurisdiction
over the Company, any of the Guarantors or any of their respective subsidiaries
or any of their properties or assets, except for (u) in the cases of clauses (i)
and (iii) only, for such defaults, violations and failures as would not
reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect; (w) such consents, approvals, authorizations, orders
of, or filings, registrations or qualifications that have been obtained or where
failure to do so would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect; (x) the registration of the Exchange
Notes under the Act; (y) such consents, approvals, authorizations, orders,
filings, registrations or qualifications as may be required under state
securities or Blue Sky laws in connection with the purchase and distribution of
the Notes by the Initial Purchasers; and (z) filings required to perfect the
Collateral Trustee's security interests granted pursuant to the Security
Documents, no consent, approval, authorization or order of, or filing,
registration or qualification with, any such court or governmental agency or
body is required for the issue and sale of the Notes, the consummation by the
Company of the transactions contemplated by this Agreement, the Indenture, the
Registration Rights Agreement or the Security Documents and the grant and
perfection of the security interests in the Collateral pursuant to the Security
Documents.
(xvii) The Confirmation Order with respect to the
NRG plan of reorganization was entered on November 24, 2003. The Confirmation
Order with respect to the joint plan of
B-4
reorganization for NRG Northeast Generating LLC and NRG South Central Generating
LLC was entered on November 25, 2003. Notices of the Confirmation Orders was
provided in accordance with Federal Rule of Bankruptcy Procedure Rule 2002(b)
and 3017(d). After due inquiry, as of [____] a.m. on January 28, 2004, there was
no order, notice or motion filed or pending to appeal, reverse, stay, vacate or
modify the Confirmation Orders.
In rendering such opinion, such counsel may (i) state that its opinion
is limited to matters governed by the Federal laws of the United States of
America, the laws of the State of New York and the General Corporation Law of
the State of Delaware, and (ii) opinions of local counsel licensed in other
jurisdictions with respect to the laws of all other jurisdictions; provided that
such counsel shall state that it believes that both the Initial Purchasers and
it are justified in relying upon such other counsel's opinions.
Such counsel shall also have furnished to the Initial Purchasers a
written statement, addressed to the Initial Purchasers and dated the Closing
Date, in form and substance satisfactory to Credit Suisse First Boston LLC, to
the effect that (x) such counsel has acted as counsel to the Company and the
Guarantors in connection with the preparation of the Offering Circular, and (y)
based on the foregoing, no facts have come to the attention of such counsel that
lead it to believe that, as of its date and as of the date of such opinion, the
Offering Circular contained or contains any untrue statement of a material fact
or omitted or omits to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading. The foregoing statement may be
qualified by a statement to the effect that such counsel does not assume any
responsibility for the accuracy, completeness or fairness of the statements
contained in the Offering Circular except for the statements made in the
Offering Circular under the captions "Description of Notes," "Certain
Relationships and Related Transactions," "Certain Federal Income Tax
Consequences," "Management--Employment Agreements," "Description of Certain
Indebtedness" and "Plan of Distribution," insofar as such statements relate to
the Notes and concern legal matters.
B-4
EXHIBIT C
OPINIONS WITH RESPECT TO FEDERAL REGULATORY MATTERS
Xxxxxxxx & Xxxxx LLP, Xxxxx Xxxxx, Xxxxxxxxxxx & Xxxxxxxx, Xxxxxx
Xxxxxxx, Xxxxxxxxx & Xxxxxx, Xxxxxxx Street & Xxxxxxxx and other local counsel
shall provide the following opinions with respect to the federal regulatory
matters:
(Capitalized terms used by not defined in this Exhibit C shall have the
meanings assigned to them in the Purchase Agreement. If not defined in the
Purchase Agreement, then such terms have the meanings assigned to them in the
Credit Agreement.)
1. PUHCA
(a) Neither the Company nor any affiliate of the Company
(other than FirstEnergy) is, or by virtue of the Transactions, will become,
subject to regulation as (i) a "holding company," (ii) a "subsidiary company" of
a "holding company" or (iii) a "public-utility company," in each case as such
terms are defined in PUHCA.
(b) None of the Arrangers, the Administrative Agent, the
Collateral Agent, the Issuing Bank, the Lenders, purchasers or holders of the
Notes, or any Affiliate of any of the foregoing shall, solely as a result of the
Transactions, become subject to, or not exempt from, regulation under PUHCA.
2. FPA
(a) Except as described herein, none of the Company or
any of the Subsidiaries is subject to regulation as a "public utility" as such
term is defined in the FPA, other than (i) as a power marketer or an owner of
generator leads, which has market-based rate authority under Section 205 of the
FPA or (ii) as a QF under PURPA, as contemplated by 18 C.F.R. Section
292.601(c). Except as set forth in Schedule IV to the Purchase Agreement, each
of the Company and any of the Subsidiaries that is subject to regulation as a
"public utility" as such term is defined in the FPA has validly issued orders
from FERC, not subject to any pending challenge, investigation or proceeding
(other than the FERC's generic proceeding initiated in Docket No. EL01-118-000)
(x) authorizing such Subsidiary to engage in wholesale sales of electricity,
ancillary services and, to the extent permitted under its market-based rate
tariff, other transactions at market-based rates and (y) granting such waivers
and blanket authorizations as are customarily granted to entities with
market-based rate authority, including blanket authorizations to issue
securities and to assume liabilities pursuant to Section 204 of the FPA;
provided, however, FERC has indicated that in at least one order that it will
treat the Company as a "public utility" for purposes of Section 204 of the FPA,
and, provided further, however, the Company does not have blanket authorization
to issue securities and to assume liabilities pursuant to Section 204. Except as
set forth in Schedule IV to the Purchase Agreement, with respect to each person
described in the preceding sentence, FERC has not imposed any rate caps or
mitigation measures other than rate caps and mitigation measures generally
applicable to similarly situated marketers or generators selling electricity,
ancillary services or other services at wholesale at market-based rates in the
geographic market where such person conducts its business.
(b) None of the Arrangers, the Administrative Agent, the
Collateral Agent, the Issuing Bank, the Lenders, purchasers or holders of the
Notes, or any Affiliate of any of the foregoing shall, solely as a result of the
Transactions, become subject to, or not exempt from, regulation under FPA.
C-1
3. State Public Utility Regulation
(a) None of the Company or any of the Subsidiaries is
subject to any state laws or regulations respecting rates or the financial or
organization regulation of utilities, other than, with respect to those
Subsidiaries that are QF's, such state regulations contemplated by 18 C.F.R.
Section 292.602(c) and "lightened regulation" as defined by the New York Public
Service Commission.
(b) None of the Arrangers, the Administrative Agent, the
Collateral Agent, the Issuing Bank, the Lenders, purchasers or holders of the
Notes, or any Affiliate of any of the foregoing shall, solely as a result of the
Transactions, become subject to, or not exempt from, any state laws or
regulations respecting rates or the financial or organization regulation of
utilities.
4. Approvals
No actions, consents or approvals of, registrations or filings
with, notices to, or other actions by, FERC, the Commission or any other
Governmental Authority acting under the FPA, PUHCA or state laws or regulations
respecting rates or the financial or organization regulation of utilities is or
will be required in connection with the Transactions except such as have been
made or obtained and are in full force and effect.
C-2
EXHIBIT D
OPINIONS WITH RESPECT TO ENVIRONMENTAL MATTERS
General Counsel for the Company, Xxxxx Xxxxxxx, Xxxxx Xxxxxx, Xxxxxxxx
Xxxxxx & Xxxxxx, Xxxxx & Xxxxx, Xxxxxxxxxxx & Xxxxxxxx, Xxxxxx Xxxxxxx and other
local counsel shall collectively provide the following opinions with respect to
the environmental matters pertaining to the Company and its subsidiaries:
(Capitalized terms used by not defined in this Exhibit D shall have the
meanings assigned to them in the Purchase Agreement.)
1. The Company and [and each relevant entity] have all
of the Governmental Approvals(1) that are required to be obtained for the
ownership, construction, and operation of the Facilities(2). Except to the
extent qualified or limited expressly herein, each such Governmental Approval is
held in the name of [the Company or relevant entity], is in full force and
effect, is not subject to any appeals or further proceedings and all applicable
administrative and judicial appeal periods have expired. Each such Governmental
Approval has been duly issued and based upon the representation in the [relevant
entity's] affidavits, the [relevant entity] represents that to the best of its
knowledge it is operating its [relevant entity] facility in material compliance
with the provisions of such Governmental Approvals, and we have no actual
knowledge of any facts or claims that would render this representation untrue.
Assuming that applications for renewal of such Governmental Approvals are timely
filed, there is no reason of which we are aware that such Governmental Approvals
should not be renewed in the ordinary course of the relevant Governmental
Authority's administrative processes. To the extent that additional Governmental
Approvals are required for the ownership, construction, and operation of any
Facility, but are not presently held by [the Company or relevant entity], we
have no knowledge of any reason why any such Governmental Approval will not be
obtained in the ordinary course of business and without material difficulty,
expense or delay prior to the time [the Company or relevant entity] is required
to obtain such Governmental Approvals.(3)
------------------
(1)Governmental Approval shall include any action, approval, consent, waiver,
exemption, variance, franchise, order, permit, authorization, certificate,
registration, right or license required under any applicable Federal, state and
local laws (including, but not limited to, Environmental Laws, State Energy
Facility Siting Laws, or other State Energy Laws).
(2) This opinion is required only for certain core assets, i.e., those for which
a mortgage or deed of trust is being taken.
(3) If the project has received all of its Governmental Approvals, this sentence
can be omitted.
D-1
EXHIBIT E
OPINIONS WITH RESPECT TO MORTGAGED PROPERTY
Xxxxx Xxxxxxx, Xxxxxxxxxxx & Xxxxxxxx, Xxxxxx Xxxxxxx, Xxxxx Xxxxxx,
Xxxxxxxx Xxxxxx & Xxxxxx, Xxxxx & Xxxxxxx, Xxxx Xxxxx, Xxxxxxxx, Xxxxxx, Xxxxxxx
& Xxxxxxx, LLC, Xxxxxxx & Xxxxx and other local counsel shall collectively
provide the following opinions (or reliance letters with respect to their
opinions delivered on December 23, 2003) with respect to the Mortgages:
(Capitalized terms used by not defined in this Exhibit E shall have the
meanings assigned to them in the Purchase Agreement. If not defined in the
Purchase Agreement, then such terms have the meanings assigned to them in the
respective Mortgage.)
1. Except for filings which are necessary to perfect the
security interests granted under the Documents (as defined in such Mortgage) and
such other filings, authorizations or approvals as are specifically contemplated
by the [Documents], no authorizations or approvals of, and no filings with, any
governmental or regulatory authority or agency of the United States, the state
of [Borrower's][the Company's] formation, or the state of ____________ (the
"State") are necessary for the execution, delivery or performance of the
[Documents] by the [Borrower][Company/Guarantor].
2. Each of the [Documents] constitutes the legal, valid
and binding obligation of the [Borrower][Company/Guarantor], enforceable against
[Borrower][Company/Guarantor] in accordance with its terms.
3. The execution and delivery by the
[Borrower][Company/Guarantor] of the [Documents] and the consummation of the
transactions contemplated thereby do not conflict with or violate any federal or
State law, rule, regulation or ordinance applicable to the
[Borrower][Company/Guarantor].
4. The choice of law provisions contained in the
[Documents] will be upheld and enforced by the courts of the State and Federal
courts sitting in and applying the laws of the State. In this regard, the
amounts to be received by [Lenders][holders of the Notes] as interest in respect
of the [Note], made by the [Borrower][Company/Guarantor], as maker, in favor of
[Lenders][holders of the Notes] and under the [Credit Agreement][Purchase
Agreement] constitute lawful interest under the laws of the State and are
neither usurious nor illegal.
5. The Mortgage (as defined in such Mortgage) to be
recorded in the State is in form satisfactory for recording. The recording of
the Mortgage in the office of ___________________________ for the County of
______________ [State of], and the filing and recording of the [Financing
Statements] referred to on Schedule 1 hereto in the offices shown on Schedule 1
hereto, are the only recordings or filings necessary to publish notice of and to
establish of record the rights of the parties thereto and to perfect the liens
and security interests granted by the [Borrower][Company/Guarantor] pursuant to
the Mortgage in the real property (including fixtures) covered thereby. Such
[Financing Statements] comply in all respects with applicable provisions of the
Uniform Commercial Code as in effect in the State (the "UCC") and are in
appropriate form for filing or recording and the description therein of the
property covered thereby is adequate to permit the perfection of such security
interests. Upon the execution and delivery of such Mortgage, such liens and
security interests shall be created and upon the recording and filing of the
Mortgage and [Financing Statements] as aforesaid, such liens and security
interests shall be perfected. No documents or instruments other than those
referred to in this paragraph need be recorded, registered or filed in any
public office in the State in order to publish notice of the applicable Mortgage
or to perfect such liens and security interests or for the
E-1
validity or enforceability of any of the [Documents] or to permit
[Lenders][holders of the Notes] to enforce their rights thereunder in the courts
of the State.
6. Except for _________, no recording, filing, privilege
or other tax must be paid by either the [Borrower][Company/Guarantor] or
[Lenders][holders of the Notes] in connection with the execution, delivery,
recordation or enforcement of any of the Documents.
7. The Loans, as made, will not violate any applicable
usury laws of the State, or other applicable laws regulating the interest rate,
fees and other charges that may be collected with respect to the Loans.
8. It is not necessary for Lenders to qualify to do
business in the State solely to make the Loans and enforce the provisions of the
Documents. The making of the Loans and enforcement of the provisions of the
Documents will not result in the imposition upon Lenders of any taxes of the
State, or any subdivision thereof in which the applicable Mortgaged Property is
located (including, without limitation, franchise, license, tax on interest
received or income taxes), other than taxes which Lenders, if and when it
becomes the actual and record owner of such Mortgaged Property, by reason of
power of sale or foreclosure under the applicable Mortgage or by deed in lieu of
foreclosure, would be required to pay. Lenders are not in violation of any
banking law of the State by carrying out the transactions contemplated by the
Documents.
9. The foreclosure of the Mortgage to be recorded in the
State, exercise of [Lenders'][the holders' of the Notes] power of sale, or
exercise of any other remedy provided in the Mortgage will not in any manner
restrict, affect or impair the liability of the [Borrower][Company/Guarantor]
with respect to the indebtedness secured thereby or the rights and remedies of
[Lenders][holders of the Notes] with respect to the foreclosure or enforcement
of any other security interests or liens securing such indebtedness, to the
extent any deficiency remains unpaid after application of the proceeds of the
foreclosure of such Mortgage, exercise of such power of sale or as a result of
the exercise of any other remedy.
10. The priority of the lien of the Mortgage to be
recorded in the State in respect of all advances or extensions of credit made by
the [Lenders][Initial Purchaser] under the [Credit Agreement][Purchase
Agreement] on, before or after the date on which such Mortgage is recorded in
the appropriate recording office referred to in Paragraph 5 above will be
determined by the date of such recording.
11. The priority of the lien of the Mortgage will not be
affected by (a) any prepayment of a portion of the [Loans][Notes], or (b) any
increase in or reduction of the outstanding amount of the [Loans][Notes] from
time to time.
12. The Mortgage to be recorded in the State creates
valid security interests in favor of the [Lenders][holders of the Notes] in the
Collateral to the extent the UCC is applicable thereto, as security for the
payment or performance of the Obligations (as defined in such Mortgage).
E-2
Schedule 1
UCC Financing Statements
1. UCC-l Financing Statements naming the [Borrower][Company/Guarantor], as
debtor, and [Lenders][Collateral Trustee], as secured party, with respect to the
Collateral, to be filed with:
E-3
EXHIBIT F
OPINIONS WITH RESPECT TO SECURITY INTERESTS
Xxxxxxxx & Xxxxx LLP, General Counsel for the Company,
Xxxxxxxx Xxxxxx & Finger, Xxxxxxx Street & Deinhard, Sheppard, Mullin, Xxxxxxx &
Xxxxxxx, LLC, local Virginia counsel and other local counsel for the Company
shall collectively provide the following opinions with respect to the security
interests created by the Security Documents:
(Capitalized terms used by not defined in this Exhibit F shall
have the meanings assigned to them in the Purchase Agreement.)
1. The provisions of each Security Document are
effective to create valid security interests in favor of the Collateral Trustee,
for the benefit of the Parity Lien Secured Parties, in that portion of the
Collateral and the Mortgaged Properties described in the Guarantee and
Collateral Agreement, the Collateral Trust Agreement, each Mortgage and each
Intellectual Property Security Agreement, respectively, in each case to the
extent such Collateral is subject to Article 9 of the UCC as security for the
payment, to the extent set forth in each such Security Document of the
Obligations of the relevant Loan Party to the Parity Lien Secured Parties under
the Security Documents.
2. Upon delivery of the certificates representing the
Pledged Securities (as defined in the Guarantee and Collateral Agreement) to the
Collateral Agent in the State of New York pursuant to the Guarantee and
Collateral Agreement with undated transfer powers duly endorsed in blank by an
effective endorsement, the security interests in such Pledged Securities in
favor of the Collateral Trustee, for the benefit of the Parity Lien Secured
Parties, will be perfected. No other security interest in the Pledged Securities
is equal or prior to the security interest of the Collateral Agent for the
benefit of the Parity Lien Secured Parties, except for the security interest of
the Collateral Agent for the benefit of the Priority Lien Secured Parties or for
any Permitted Prior Liens.
3. Upon delivery of that portion of the Pledged
Collateral consisting of the collateral that constitutes "instruments" within
the meaning of Section 9-102(a)(47) of the [_________] UCC (the "Pledged Notes")
to the Collateral Trustee in the State of New York pursuant to the Guarantee and
Collateral Agreement, the security interests in favor of the Collateral Agent,
for the benefit of the Parity Lien Secured Parties, will be perfected. No other
security interest in the Pledged Notes is equal or prior to the security
interest of the Collateral Trustee, for the benefit of the Parity Lien Secured
Parties, assuming the Collateral Agent takes possession of the Pledged Notes in
good faith and without knowledge that its security interest in the Pledged Notes
violates the rights of another secured party, except for the security interest
of the Collateral Agent for the benefit of the Priority Lien Secured Parties or
for any Permitted Prior Liens.
4. The provisions of the Control Agreements (as defined
in the Guarantee and Collateral Agreement) are effective under the [__________]
UCC to perfect the security interest in favor of the Collateral Trustee, for the
benefit of the Parity Lien Secured Parties, in that portion of the Pledged
Collateral consisting of Deposit Account[s] maintained with ___________ (the
"Depositary Bank") described in each such Control Agreement (the "Deposit
Account[s]"), assuming that (a) each such Control Agreement has been duly
authorized, executed and delivered by each of the parties thereto (other than
the Company, PMI or any Guarantor) and is the legally valid and binding
obligation of each such party, (b) the Depositary Bank's jurisdiction
(determined in accordance with Section 9304 of the [__________] UCC is that
State of [_________] and (c) the Deposit Account[s] constitute[s] [s] "deposit
account[s]" as defined in Section 9102(a)(29) of the [__________] UCC.
F-1
5. Each Financing Statement is in appropriate form for
filing in the office of the [Secretary of State][relevant central filing
authority] of the State of [_________]. Upon the proper filing of each such
Financing Statement in the office of the [Secretary of State][relevant central
filing authority] of the State of [_________], the security interest in favor of
the Collateral Agent, for the benefit of the Parity Lien Secured Parties, in the
collateral described in each such Financing Statement will be perfected to the
extent a security interest in such collateral can be perfected under the
provisions of the [_________] UCC by the filing of a financing statement in the
State of [_________].
6. There are to the best of our knowledge, no
outstanding subscriptions, options, warrants, calls, rights or other agreements
or commitments of any nature relating to any of the Pledge Securities (as
defined in the Guarantee and Collateral Agreement).
F-2
EXHIBIT G
The Collateral Trustee shall have received (with a copy for the Initial
Purchaser):
(Capitalized terms used by not defined in this Exhibit G shall have the
meanings assigned to them in the Purchase Agreement.)
1. Appropriately completed copies, which have been duly
authorized for filing by the appropriate Person, of Uniform Commercial Code
Financing Statements naming the Company and each Guarantor (as applicable) as a
debtor and the Collateral Trustee as the secured party, or other similar
instruments or documents to be filed under the UCC of all jurisdictions as may
be necessary or, in the reasonable opinion of the Collateral Trustee and its
counsel, desirable to perfect the security interests of the Collateral Trustee
pursuant to the Security Documents.
2. Appropriately completed copies, which have been duly
authorized for filing by the appropriate Person, of Uniform Commercial Code Form
UCC-3 termination statements, if any, necessary to release all Liens (other than
Permitted Prior Liens) of any Person in any collateral described in the Security
Documents previously granted by any Person.
3. Certified copies of Uniform Commercial Code Requests
for Information or Copies (Form UCC-11), or a similar search report certified by
a party acceptable to the Collateral Trustee, dated a date reasonably near to
the Closing Date, listing all effective Financing Statements which name the
Company and the Guarantors (under their respective present name and any previous
names) as the debtor, together with copies of such Financing Statements (none of
which shall cover any collateral described in the Security Documents, other than
such Financing Statements that evidence Permitted Prior Liens).
4. Such releases, reconveyances, satisfactions or other
instruments as it may request to confirm the release, satisfaction and discharge
in full of all mortgages and deeds of trust at any time delivered by the Company
or any Guarantor to secure any Obligations in respect of any existing credit
facilities or other secured indebtedness, duly executed, delivered and
acknowledged in recordable form by the grantee named therein or its of record
successors or assigns.
5. A copy of the Collateral Trust Agreement executed by
the Administrative Agent under the Credit Agreement, the Company and each
Guarantor.
6. A certificate of insurance satisfactory to the
Initial Purchasers confirming that all insurance requirements of the Guarantee
and Collateral Agreement are satisfied.
7. Such other approvals, opinions or documents as the
Initial Purchasers, the Trustee or the Collateral Trustee may reasonably request
in form and substance satisfactory to each of them.
G-1
