EXHIBIT 4(f)(6)
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PLEDGE AGREEMENT
made by
UTILITY HOLDING, LLC
in favor of
JPMORGAN CHASE BANK,
as Administrative Agent
Dated as of ______ __, 2003
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TABLE OF CONTENTS
Page
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SECTION 1. DEFINED TERMS........................................................................ 1
1.1 Definitions.......................................................................... 1
1.2 Other Definitional Provisions........................................................ 2
SECTION 2. GRANT OF SECURITY INTEREST........................................................... 3
SECTION 3. REPRESENTATIONS AND WARRANTIES....................................................... 3
3.1 Title; No Other Liens................................................................ 3
3.2 Perfected First Priority Liens....................................................... 4
3.3 Jurisdiction of Organization; Chief Executive Office................................. 4
SECTION 4. COVENANTS............................................................................ 4
4.1 Delivery of Instruments, Certificated Securities and Chattel Paper................... 4
4.2 Payment of Credit Agreement Obligations.............................................. 4
4.3 Maintenance of Perfected Security Interest; Further Documentation.................... 4
4.4 Changes in Locations, Name, etc...................................................... 5
4.5 Notices.............................................................................. 5
4.6 Collateral........................................................................... 5
SECTION 5. REMEDIAL PROVISIONS.................................................................. 6
5.1 Collateral........................................................................... 6
5.2 Proceeds to be Turned Over To Administrative Agent................................... 7
5.3 Application of Proceeds.............................................................. 7
5.4 Code and Other Remedies.............................................................. 7
5.5 Sale of Collateral................................................................... 8
5.6 RRI Option........................................................................... 8
SECTION 6. THE ADMINISTRATIVE AGENT............................................................. 8
6.1 Administrative Agent's Appointment as Attorney-in-Fact, etc.......................... 8
6.2 Duty of Administrative Agent......................................................... 9
6.3 Execution of Financing Statements.................................................... 9
6.4 Authority of Administrative Agent.................................................... 10
SECTION 7. MISCELLANEOUS........................................................................ 10
7.1 Amendments in Writing................................................................ 10
7.2 Notices.............................................................................. 10
7.3 No Waiver by Course of Conduct; Cumulative Remedies.................................. 10
7.4 Enforcement Expenses; Indemnification................................................ 10
7.5 Successors and Assigns............................................................... 11
7.6 Counterparts......................................................................... 11
7.7 Severability......................................................................... 11
7.8 Section Headings..................................................................... 11
7.9 Integration.......................................................................... 11
7.10 GOVERNING LAW........................................................................ 11
7.11 Submission To Jurisdiction; Waivers.................................................. 11
7.12 Acknowledgements..................................................................... 12
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7.13 Releases............................................................................. 12
7.14 WAIVER OF JURY TRIAL................................................................. 12
SCHEDULES
Schedule 1 Notice Addresses
Schedule 2 Pledged Stock
Schedule 3 Jurisdictions of Organization and Chief Executive Offices
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PLEDGE AGREEMENT
PLEDGE AGREEMENT, dated as of ______ __, 2003, made by UTILITY
HOLDING, LLC (the "Grantor") in favor of JPMORGAN CHASE BANK, as Administrative
Agent (in such capacity, the "Administrative Agent") for the banks and other
financial institutions (the "Banks") from time to time parties to the Credit
Agreement, dated as of October 10, 2002 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among CENTERPOINT ENERGY,
INC. (the "Borrower"), the Banks and the Administrative Agent.
W I T N E S S E T H:
WHEREAS, pursuant to the Credit Agreement, the Banks have
severally agreed to make extensions of credit to the Borrower upon the terms and
subject to the conditions set forth therein;
WHEREAS, the Borrower is a member of an affiliated group of
companies that includes the Grantor;
WHEREAS, the proceeds of the extensions of credit under the
Credit Agreement are used in part to enable the Borrower to make valuable
transfers to the Grantor in connection with the operation of its business;
WHEREAS, the Borrower and the Grantor are engaged in related
businesses, and the Grantor derives substantial direct and indirect benefit from
the making of the extensions of credit under the Credit Agreement; and
WHEREAS, it is a condition precedent to the obligation of the
Banks to enter into the Second Amendment, providing for the extension of the
Termination Date, among other things, that the Grantor shall have executed and
delivered this Agreement to the Administrative Agent for the ratable benefit of
the Banks;
NOW, THEREFORE, in consideration of the premises and to induce
the Administrative Agent and the Banks to enter into the Second Amendment and to
induce the Banks to make their respective extensions of credit to the Borrower
under the Credit Agreement, the Grantor hereby agrees as follows:
SECTION 1. DEFINED TERMS
1.1 Definitions. (a) Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein shall have the meanings given to
them in the Credit Agreement, and the term "Certificated Security" is used
herein as defined in the New York UCC.
(b) The following terms shall have the following meanings:
"Agreement": this Pledge Agreement, as the same may be
amended, supplemented or otherwise modified from time to time.
"Collateral": as defined in Section 2.
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"Collateral Account": any collateral account established by
the Administrative Agent as provided in Section 5.2 or 5.3.
"Credit Agreement Obligations": the collective reference to
the unpaid principal of and interest on the Loans and Reimbursement Obligations
and all other obligations and liabilities of the Borrower (including, without
limitation, interest accruing at the then applicable rate provided in the Credit
Agreement after the maturity of the Loans and Reimbursement Obligations and
interest accruing at the then applicable rate provided in the Credit Agreement
after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding, relating to the Borrower, whether
or not a claim for post-filing or post-petition interest is allowed in such
proceeding) to the Administrative Agent or any Bank (or, in the case of any
Specified Swap Agreement, any Affiliate of any Bank), whether direct or
indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, the
Credit Agreement, this Agreement, the other Loan Documents, any Letter of
Credit, any Specified Swap Agreement or any other document made, delivered or
given in connection with any of the foregoing, in each case whether on account
of principal, interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise (including, without limitation, all fees and disbursements
of counsel to the Administrative Agent or to the Banks that are required to be
paid by the Borrower pursuant to the terms of any of the foregoing agreements).
"Issuer": Texas Genco Holdings, Inc., as issuer of the Pledged
Stock.
"New York UCC": the Uniform Commercial Code as from time to
time in effect in the State of New York.
"Pledged Stock": any shares, stock certificates, options,
interests or rights of any nature whatsoever in respect of the Capital Stock of
the Issuer that may be held by the Grantor from time to time while this
Agreement is in effect, which, as of the date hereof, consists of the shares of
Capital Stock listed on Schedule 2.
"Proceeds": all "proceeds" as such term is defined in Section
9-102(a)(64) of the New York UCC and, in any event, shall include, without
limitation, all dividends or other income from the Pledged Stock, collections
thereon or distributions or payments with respect thereto.
"RRI": Reliant Resources, Inc.
"RRI Option": the option relating to the Texas Genco Stock
granted to RRI pursuant to the Texas Genco Option Agreement.
"Securities Act": the Securities Act of 1933, as amended.
"Texas Genco Option Agreement": the Texas Genco Option
Agreement, dated as of December 31, 2000, between the Borrower and RRI, as
amended, modified or supplemented on or prior to the date hereof, and, following
the date hereof, from time to time in a manner consistent with Section 5.6.
1.2 Other Definitional Provisions. (a) The words "hereof,"
"herein", "hereto" and "hereunder" and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section and Schedule references are to this
Agreement unless otherwise specified.
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(b) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.
SECTION 2. GRANT OF SECURITY INTEREST
2.1 Grant of Security Interests. The Grantor hereby assigns and
transfers to the Administrative Agent, and hereby grants to the Administrative
Agent, for the ratable benefit of the Banks, a security interest in, all of the
following property now owned or at any time hereafter acquired by the Grantor or
in which the Grantor now has or at any time in the future may acquire any right,
title or interest (collectively, the "Collateral"), as collateral security for
the prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Credit Agreement Obligations:
(a) all Pledged Stock;
(b) all shares, stock certificates, options, interests or rights
of any nature whatsoever in respect of the Capital Stock of the Issuer that may
be issued or granted to the Grantor while this Agreement is in effect; and
(c) to the extent not otherwise included, all Proceeds and
products of any and all of the foregoing.
2.2 Maximum Liability.
(a) Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of the Grantor hereunder and under the
other Loan Documents shall in no event exceed the amount which is permitted
under applicable federal and state laws relating to the insolvency of debtors.
(b) The Grantor agrees that the Credit Agreement Obligations may
at any time and from time to time exceed the amount of the liability of the
Grantor hereunder without impairing the Liens granted pursuant to this Section 2
or affecting the rights and remedies of the Administrative Agent or any Bank
hereunder.
SECTION 3. REPRESENTATIONS AND WARRANTIES
To induce the Administrative Agent and the Banks to enter into
the Second Amendment and to induce the Banks to make their respective extensions
of credit to the Borrower under the Credit Agreement, the Grantor hereby
represents and warrants to the Administrative Agent and each Bank that:
3.1 Title; No Other Liens. (a) The Grantor is the record and
beneficial owner of, and has good and marketable title to, the Pledged Stock
pledged by it hereunder, free and clear of any and all Liens or options in favor
of, or claims of any other Person, except (x) the RRI Option and (y) the
security interest created by this Agreement. No financing statement or other
public notice with respect to all or any part of the Collateral is on file or of
record in any public office, except such as have been filed in favor of the
Administrative Agent, for the ratable benefit of the Banks, pursuant to this
Agreement or as are permitted by the Credit Agreement.
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(b) The shares of the Pledged Stock pledged by the Grantor
hereunder constitute all of the issued and outstanding shares of all classes of
the Capital Stock of the Issuer owned by the Grantor.
(c) All the shares of the Pledged Stock have been duly and validly
issued and are fully paid and nonassessable.
3.2 Perfected First Priority Liens. The security interests granted
pursuant to this Agreement (a) upon delivery in certificated form to the
Administrative Agent of the Pledged Stock, together with undated stock powers
covering each certificate duly executed in blank by the Grantor and the filing
of financing statements with respect to the Collateral in the State of Delaware,
will constitute valid perfected security interests in all of the Collateral in
favor of the Administrative Agent, for the ratable benefit of the Banks, as
collateral security for the Credit Agreement Obligations, enforceable in
accordance with the terms hereof against all creditors of the Grantor and,
subject to Section 7.13(b) hereof, any Persons purporting to purchase any
Collateral from the Grantor and (b) are prior to all other Liens (other than the
RRI Option) on the Collateral in existence on the date hereof.
3.3 Jurisdiction of Organization; Chief Executive Office. On the
date hereof, the Grantor's jurisdiction of organization, identification number
from the jurisdiction of organization (if any), and the location of the
Grantor's chief executive office or sole place of business or principal
residence, as the case may be, are specified on Schedule 3. The Grantor has
furnished to the Administrative Agent a certified charter, certificate of
incorporation or other organization document and long-form good standing
certificate as of a date which is recent to the date hereof.
SECTION 4. COVENANTS
The Grantor covenants and agrees with the Administrative Agent
and the Banks that, from and after the date of this Agreement until the Credit
Agreement Obligations shall have been paid in full, no Letter of Credit shall be
outstanding and the Commitments shall have terminated:
4.1 Delivery of Instruments, Certificated Securities and Chattel
Paper. If any amount payable under or in connection with any of the Collateral
shall be or become evidenced by any Certificated Security, such Certificated
Security shall be immediately delivered to the Administrative Agent, duly
indorsed in a manner satisfactory to the Administrative Agent, to be held as
Collateral pursuant to this Agreement.
4.2 Payment of Credit Agreement Obligations. The Grantor will pay
and discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all taxes, assessments and governmental charges
or levies imposed upon the Collateral or in respect of income or profits
therefrom, as well as all claims of any kind (including, without limitation,
claims for labor, materials and supplies) against or with respect to the
Collateral, except that no such taxes, assessments, charges, levies or claims
need be paid if the amount or validity thereof is currently being contested in
good faith by appropriate proceedings, reserves in conformity with GAAP with
respect thereto have been provided on the books of the Grantor and such
proceedings could not reasonably be expected to result in the sale, forfeiture
or loss of any material portion of the Collateral or any material interest
therein.
4.3 Maintenance of Perfected Security Interest; Further
Documentation. (b) The Grantor shall, subject to the rights of the Grantor
under the Loan Documents to issue, sell, assign, transfer or otherwise dispose
of all or any part of the Collateral, (i) not take or omit to take any action,
the taking or the omission of which would result in an alteration or impairment
of the security interest created by this Agreement and (ii) defend such security
interest against claims and demands of all persons whomsoever.
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At any time and from time to time, upon the written request of the
Administrative Agent and at the sole expense of the Grantor, the Grantor shall
promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Administrative
Agent reasonably may request for the purposes of obtaining or preserving the
full benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, (i) filing any financing or continuation
statements under the Uniform Commercial Code (or other similar laws) in effect
in any jurisdiction with respect to the security interests created hereby and
(ii) taking any actions necessary to enable the Administrative Agent to obtain
"control" (within the meaning of the applicable Uniform Commercial Code) with
respect thereto.
4.4 Changes in Locations, Name, etc. The Grantor will not, except
upon 15 days' prior written notice to the Administrative Agent and delivery to
the Administrative Agent of all additional executed financing statements and
other documents reasonably requested by the Administrative Agent to maintain the
validity, perfection and priority of the security interests provided for herein:
(i) change its jurisdiction of organization or the location of its
chief executive office or sole place of business or principal residence from
that referred to in Section 3.3; or
(ii) change its name.
4.5 Notices. The Grantor will advise the Administrative Agent
promptly after it becomes aware of such circumstance, in reasonable detail, of:
(a) any Lien (other than security interests created hereby or
Liens permitted under the Credit Agreement) on any of the Collateral which would
adversely affect the ability of the Administrative Agent to exercise any of its
remedies hereunder; and
(b) the occurrence of any other event (other than any event or
transaction permitted under the Credit Agreement) which could reasonably be
expected to have a material adverse effect on the aggregate value of the
Collateral or on the security interests created hereby.
4.6 Collateral. (a) If the Grantor shall become entitled to
receive or shall receive any certificate (including, without limitation, any
certificate representing a dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Capital
Stock of the Issuer, whether in addition to, in substitution of, as a conversion
of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect
thereof, the Grantor shall accept the same as the agent of the Administrative
Agent and the Banks, hold the same in trust for the Administrative Agent and the
Banks and deliver the same forthwith to the Administrative Agent in the exact
form received, duly indorsed by the Grantor to the Administrative Agent, if
required, together with an undated stock power covering such certificate duly
executed in blank by the Grantor and with, if the Administrative Agent so
requests, signature guaranteed, to be held by the Administrative Agent, subject
to the terms hereof, as additional collateral security for the Credit Agreement
Obligations. Any sums paid upon or in respect of the Collateral upon the
liquidation or dissolution of the Issuer shall be paid over to the
Administrative Agent to be held by it hereunder as additional collateral
security for the Credit Agreement Obligations, and in case any distribution of
capital shall be made on or in respect of the Collateral or any property shall
be distributed upon or with respect to the Collateral pursuant to the
recapitalization or reclassification of the capital of the Issuer or pursuant to
the reorganization thereof, the property so distributed shall, unless otherwise
subject to a perfected security interest in favor of the Administrative Agent,
be delivered to the Administrative Agent to be held by it hereunder as
additional collateral security for the Credit Agreement Obligations. If any sums
of money or property so paid or distributed in respect of the Collateral shall
be
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received by the Grantor, the Grantor shall, until such money or property is paid
or delivered to the Administrative Agent, hold such money or property in trust
for the Administrative Agent and the Banks, segregated from other funds of the
Grantor, as additional collateral security for the Credit Agreement Obligations.
(b) Except in connection with (i) the security interests created
by this Agreement, (ii) the RRI Option or (iii) any other transaction expressly
permitted by the Credit Agreement, without the prior written consent of the
Administrative Agent, the Borrower will not (i) vote to enable, or take any
other action to permit, the Issuer to issue any Capital Stock of any nature or
to issue any other securities convertible into or granting the right to purchase
or exchange for any Capital Stock of any nature of the Issuer, (ii) sell,
assign, transfer, exchange, or otherwise dispose of, or grant any option with
respect to, the Collateral, (iii) create, incur or permit to exist any Lien or
option in favor of, or any claim of any Person with respect to, any of the
Collateral, or any interest therein or (iv) enter into any agreement or
undertaking restricting the right or ability of the Grantor or the
Administrative Agent to sell, assign or transfer any of the Collateral.
SECTION 5. REMEDIAL PROVISIONS
5.1 Collateral. (a) Unless an Event of Default shall have occurred
and be continuing and the Administrative Agent shall have given notice to the
Grantor of the Administrative Agent's intent to exercise its corresponding
rights pursuant to Section 5.1(b), the Grantor shall be permitted to receive and
use all Proceeds, to the extent permitted in the Credit Agreement, and to
exercise all voting and corporate or other organizational rights with respect to
the Collateral.
(b) If an Event of Default shall occur and be continuing and the
Administrative Agent shall have given notice to the Grantor of its intent to
exercise such rights, (i) the Administrative Agent shall have the right to
receive any and all Proceeds and make application thereof to the Credit
Agreement Obligations in such order as the Administrative Agent may determine,
and (ii) any or all of the Collateral shall be registered in the name of the
Administrative Agent or its nominee, and the Administrative Agent or its nominee
may thereafter exercise (x) all voting, corporate and other rights pertaining to
such Collateral at any meeting of shareholders of the Issuer or otherwise and
(y) subject to Section 5.6, any and all rights of conversion, exchange and
subscription and any other rights, privileges or options pertaining to such
Collateral as if it were the absolute owner thereof (including, without
limitation, the right to exchange at its discretion any and all of the
Collateral upon the merger, consolidation, reorganization, recapitalization or
other fundamental change in the corporate or other organizational structure of
the Issuer, or upon the exercise by the Grantor or the Administrative Agent of
any right, privilege or option pertaining to such Collateral, and in connection
therewith, the right to deposit and deliver any and all of the Collateral with
any committee, depositary, transfer agent, registrar or other designated agency
upon such terms and conditions as the Administrative Agent may determine), all
without liability except to account for property actually received by it, but
the Administrative Agent shall have no duty to the Grantor to exercise any such
right, privilege or option and shall not be responsible for any failure to do so
or delay in so doing.
(c) The Grantor hereby authorizes and instructs the Issuer to (i)
comply with any instruction received by it from the Administrative Agent in
writing that (x) states that an Event of Default has occurred and is continuing
and (y) is otherwise in accordance with the terms of this Agreement, without any
other or further instructions from the Grantor, and (ii) following receipt of
such instruction, pay any dividends or other payments with respect to the
Collateral directly to the Administrative Agent.
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5.2 Proceeds to be Turned Over To Administrative Agent. If an
Event of Default shall occur and be continuing, all Proceeds received by the
Grantor consisting of cash, checks and other near-cash items shall be held by it
in trust for the Administrative Agent and the Banks, segregated from other funds
of the Grantor, and shall, forthwith upon receipt by the Grantor, be turned over
to the Administrative Agent in the exact form received by the Grantor (duly
indorsed by the Grantor to the Administrative Agent, if required). All Proceeds
received by the Administrative Agent hereunder shall be held by the
Administrative Agent in a Collateral Account maintained under its sole dominion
and control. All Proceeds while held by the Administrative Agent in a Collateral
Account (or by the Grantor in trust for the Administrative Agent and the Banks)
shall continue to be held as collateral security for all the Credit Agreement
Obligations and shall not constitute payment thereof until applied as provided
in Section 5.3.
5.3 Application of Proceeds. If an Event of Default shall have
occurred and be continuing, at any time at the Administrative Agent's election,
the Administrative Agent may apply all or any part of Proceeds constituting
Collateral, whether or not held in any Collateral Account, in payment of the
Credit Agreement Obligations in such order as the Administrative Agent may
elect, and any part of such funds which the Administrative Agent elects not so
to apply and deems not required as collateral security for the Credit Agreement
Obligations shall be paid over from time to time by the Administrative Agent to
the Grantor or to whomsoever may be lawfully entitled to receive the same. Any
balance of such Proceeds remaining after the Credit Agreement Obligations shall
have been paid in full, no Letters of Credit shall be outstanding and the
Commitments shall have terminated shall be paid over to the Grantor or to
whomsoever may be lawfully entitled to receive the same.
5.4 Code and Other Remedies. Subject to Section 5.6, if an Event
of Default shall occur and be continuing, the Administrative Agent, on behalf of
the Banks, may exercise, in addition to all other rights and remedies granted to
them in this Agreement and in any other instrument or agreement securing,
evidencing or relating to the Credit Agreement Obligations, all rights and
remedies of a secured party under the New York UCC or any other applicable law.
Without limiting the generality of the foregoing, subject to Section 5.6, the
Administrative Agent, without demand of performance or other demand,
presentment, protest, advertisement or notice of any kind (except any notice
required by law referred to below) to or upon the Grantor or any other Person
(all and each of which demands, defenses, advertisements and notices are hereby
waived), may in such circumstances forthwith collect, receive, appropriate and
realize upon the Collateral, or any part thereof, and/or may forthwith sell,
lease, assign, give option or options to purchase, or otherwise dispose of and
deliver the Collateral or any part thereof (or contract to do any of the
foregoing), in one or more parcels at public or private sale or sales, at any
exchange, broker's board or office of the Administrative Agent or any Bank or
elsewhere upon such terms and conditions as it may deem advisable and at such
prices as it may deem best, for cash or on credit or for future delivery without
assumption of any credit risk. Subject to Section 5.6, the Administrative Agent
or any Bank shall have the right upon any such public sale or sales, and, to the
extent permitted by law, upon any such private sale or sales, to purchase the
whole or any part of the Collateral so sold, free of any right or equity of
redemption in the Grantor, which right or equity is hereby waived and released.
The Administrative Agent shall apply the net proceeds of any action taken by it
pursuant to this Section 5.4, after deducting all reasonable costs and expenses
of every kind incurred in connection therewith or incidental to the care or
safekeeping of any of the Collateral or in any way relating to the Collateral or
the rights of the Administrative Agent and the Banks hereunder, including,
without limitation, reasonable attorneys' fees and disbursements, to the payment
in whole or in part of the Credit Agreement Obligations, in such order as the
Administrative Agent may elect, and only after such application and after the
payment by the Administrative Agent of any other amount required by any
provision of law, including, without limitation, Section 9-615(a)(3) of the New
York UCC, need the Administrative Agent account for the surplus, if any, to the
Grantor. To the extent permitted by applicable law, the Grantor waives all
claims, damages and demands it may acquire against the Administrative Agent or
any Bank arising out of the exercise by them of any rights hereunder. If any
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notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least 10
days before such sale or other disposition.
5.5 Sale of Collateral. (a) The Grantor recognizes that the
Administrative Agent may be unable to effect a public sale of any or all the
Pledged Stock, by reason of certain prohibitions contained in the Securities Act
and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of purchasers
which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or
resale thereof. The Grantor acknowledges and agrees that any such private sale
may result in prices and other terms less favorable than if such sale were a
public sale and, notwithstanding such circumstances, agrees that any such
private sale shall be deemed to have been made in a commercially reasonable
manner. The Administrative Agent shall be under no obligation to delay a sale of
any of the Pledged Stock for the period of time necessary to permit the Issuer
to register such securities for public sale under the Securities Act, or under
applicable state securities laws, even if the Issuer would agree to do so.
(b) The Grantor agrees to use its best efforts to do or cause to
be done all such other acts as may be necessary to make such sale or sales of
all or any portion of the Pledged Stock pursuant to this Section 5.5 valid and
binding and in compliance with any and all other applicable Requirements of Law.
5.6 RRI Option. Notwithstanding anything to the contrary in this
Agreement or any other Loan Document, the Administrative Agent, and any
successor, transferee or assignee of the Administrative Agent, whether in
connection with any foreclosure action or otherwise, shall be subject to all
rights of RRI, and all restrictions relating to the Pledged Shares, set forth in
the Texas Genco Option Agreement, until the expiration of the RRI Option;
provided, however, that the Texas Genco Option Agreement shall not be amended in
any manner that would adversely affect the Liens granted hereunder.
SECTION 6. THE ADMINISTRATIVE AGENT
6.1 Administrative Agent's Appointment as Attorney-in-Fact, etc.
(a) The Grantor hereby irrevocably constitutes and appoints the Administrative
Agent and any officer or agent thereof, with full power of substitution, as its
true and lawful attorney-in-fact with full irrevocable power and authority in
the place and stead of the Grantor and in the name of the Grantor or in its own
name, for the purpose of carrying out the terms of this Agreement, to take any
and all appropriate action and to execute any and all documents and instruments
which may be necessary or desirable to accomplish the purposes of this
Agreement, and, without limiting the generality of the foregoing, the Grantor
hereby gives the Administrative Agent the power and right, on behalf of the
Grantor, without notice to or assent by the Grantor, to do any or all of the
following:
(i) pay or discharge taxes and Liens levied or placed on or
threatened against the Collateral,;
(ii) execute, in connection with any sale provided for in Section
5.4 or 5.5, any indorsements, assignments or other instruments of
conveyance or transfer with respect to the Collateral; and
(iii) (1) ask or demand for, collect, and receive payment of and
receipt for, any and all moneys, claims and other amounts due or to become
due at any time in respect of or arising out of the Collateral; (2)
commence and prosecute any suits, actions or proceedings at law or in
equity in any court of competent jurisdiction to collect the Collateral or
any portion thereof and to enforce any other right in respect of the
Collateral; (3) defend any suit, action or proceeding brought against the
Grantor with respect to the Collateral; (4) settle, compromise or adjust
any such suit, action or
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proceeding and, in connection therewith, give such discharges or releases
as the Administrative Agent may deem appropriate; and (5) subject to
Section 5.6, generally, sell, transfer, pledge and make any agreement with
respect to or otherwise deal with the Collateral as fully and completely as
though the Administrative Agent were the absolute owner thereof for all
purposes, and do, at the Administrative Agent's option and the Grantor's
expense, at any time, or from time to time, all acts and things which the
Administrative Agent deems necessary to protect, preserve or realize upon
the Collateral and the Administrative Agent's and the Banks' security
interests therein and to effect the intent of this Agreement, all as fully
and effectively as the Grantor might do.
Anything in this Section 6.1(a) to the contrary notwithstanding, the
Administrative Agent agrees that it will not exercise any rights under the power
of attorney provided for in this Section 6.1(a) unless an Event of Default shall
have occurred and be continuing.
(b) If the Grantor fails to perform or comply with any of its
agreements contained herein, the Administrative Agent, at its option, but
without any obligation so to do, may perform or comply, or otherwise cause
performance or compliance, with such agreement.
(c) The expenses of the Administrative Agent incurred in
connection with actions undertaken as provided in this Section 6.1, together
with interest thereon at a rate per annum equal to the highest rate per annum at
which interest would then be payable on any category of past due ABR Loans under
the Credit Agreement, from the date of payment by the Administrative Agent to
the date reimbursed by the Grantor, shall be payable by the Grantor to the
Administrative Agent on demand.
(d) The Grantor hereby ratifies all that said attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations and
agencies contained in this Agreement are coupled with an interest and are
irrevocable until this Agreement is terminated and the security interests
created hereby are released.
6.2 Duty of Administrative Agent. The Administrative Agent's sole
duty with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the New York UCC or
otherwise, shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account. Neither the
Administrative Agent, any Bank nor any of their respective officers, directors,
employees or agents shall be liable for failure to demand, collect or realize
upon any of the Collateral or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any Collateral upon the request of
the Grantor or any other Person or to take any other action whatsoever with
regard to the Collateral or any part thereof. The powers conferred on the
Administrative Agent and the Banks hereunder are solely to protect the
Administrative Agent's and the Banks' interests in the Collateral and shall not
impose any duty upon the Administrative Agent or any Bank to exercise any such
powers. The Administrative Agent and the Banks shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers,
and neither they nor any of their officers, directors, employees or agents shall
be responsible to the Grantor for any act or failure to act hereunder, except
for their own gross negligence or willful misconduct.
6.3 Execution of Financing Statements. Pursuant to any applicable
law, the Grantor authorizes the Administrative Agent to file or record financing
statements and other filing or recording documents or instruments with respect
to the Collateral without the signature of the Grantor in such form and in such
offices as the Administrative Agent reasonably determines appropriate to perfect
the security interests of the Administrative Agent under this Agreement. The
Grantor hereby ratifies and authorizes the filing by the Administrative Agent of
any financing statement reasonably necessary to perfect such security interests
made prior to the date hereof.
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6.4 Authority of Administrative Agent. The Grantor acknowledges
that the rights and responsibilities of the Administrative Agent under this
Agreement with respect to any action taken by the Administrative Agent or the
exercise or non-exercise by the Administrative Agent of any option, voting
right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Agreement shall, as between the Administrative
Agent and the Banks, be governed by the Credit Agreement and by such other
agreements with respect thereto as may exist from time to time among them, but,
as between the Administrative Agent and the Grantor, the Administrative Agent
shall be conclusively presumed to be acting as agent for the Banks with full and
valid authority so to act or refrain from acting, and the Grantor shall not be
under any obligation, or entitlement, to make any inquiry respecting such
authority.
SECTION 7. MISCELLANEOUS
7.1 Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 11.1 of the Credit Agreement.
7.2 Notices. All notices, requests and demands to or upon the
Administrative Agent or the Grantor shall be effected in the manner provided for
in Section 11.2 of the Credit Agreement; provided that any such notice, request
or demand to or upon any Grantor shall be addressed to such Grantor at its
notice address set forth on Schedule 1.
7.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither
the Administrative Agent nor any Bank shall by any act (except by a written
instrument pursuant to Section 7.1), delay, indulgence, omission or otherwise be
deemed to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent or any Bank, any right,
power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege. A waiver by the Administrative Agent or any Bank of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which the Administrative Agent or such Bank would otherwise have
on any future occasion. The rights and remedies herein provided are cumulative,
may be exercised singly or concurrently and are not exclusive of any other
rights or remedies provided by law.
7.4 Enforcement Expenses; Indemnification. (a) The Grantor agrees
to pay or reimburse each Bank and the Administrative Agent for all its costs and
expenses incurred in enforcing or preserving any rights under this Agreement and
the other Loan Documents to which the Grantor is a party, including, without
limitation, the fees and disbursements of counsel (including the allocated fees
and expenses of in-house counsel) to each Bank and of counsel to the
Administrative Agent.
(b) The Grantor agrees to pay, and to save the Administrative Agent and
the Banks harmless from, any and all liabilities with respect to, or resulting
from any delay in paying, any and all stamp, excise, sales or other taxes which
may be payable or determined to be payable with respect to any of the Collateral
or in connection with any of the transactions contemplated by this Agreement.
(c) The Grantor agrees to pay, and to save the Administrative Agent and
the Banks harmless from, any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Agreement to the extent the Borrower
would be required to do so pursuant to Section 11.5 of the Credit Agreement.
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(d) The agreements in this Section 7.4 shall survive repayment of the
Credit Agreement Obligations and all other amounts payable under the Credit
Agreement and the other Loan Documents.
7.5 Successors and Assigns. This Agreement shall be binding upon
the successors and assigns of the Grantor and shall inure to the benefit of the
Administrative Agent and the Banks and their successors and assigns; provided
that the Grantor may not assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Administrative Agent.
7.6 Counterparts. This Agreement may be executed by one or more of
the parties to this Agreement on any number of separate counterparts (including
by telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.
7.7 Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
7.8 Section Headings. The Section headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.
7.9 Integration. This Agreement and the other Loan Documents\
represent the agreement of the Grantor, the Administrative Agent and the Banks
with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the Administrative
Agent or any Bank relative to subject matter hereof and thereof not expressly
set forth or referred to herein or in the other Loan Documents.
7.10 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
7.11 Submission To Jurisdiction; Waivers. The Grantor hereby
irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the courts of the State of
New York, the courts of the United States of America for the Southern District
of New York, and appellate courts from any thereof;
(b) consents that any such action or proceeding may be brought in
such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;
(c) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to the
Grantor at its address referred to in Section 7.2 or at such other address of
which the Administrative Agent shall have been notified pursuant thereto;
12
(d) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the right
to xxx in any other jurisdiction; and
(e) waives, to the maximum extent not prohibited by law, any right
it may have to claim or recover in any legal action or proceeding referred to in
this Section any special, exemplary, punitive or consequential damages.
7.12 Acknowledgements. The Grantor hereby acknowledges that:
(a) it has been advised by counsel in the negotiation, execution
and delivery of this Agreement and the other Loan Documents to which it is a
party;
(b) neither the Administrative Agent nor any Bank has any
fiduciary relationship with or duty to the Grantor arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Grantor, on the one hand, and the Administrative Agent
and Banks, on the other hand, in connection herewith or therewith is solely that
of debtor and creditor; and
(c) no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Banks or among the Grantor and the Banks.
7.13 Releases. (a) At such time as the Loans, the Reimbursement
Obligations and the other Credit Agreement Obligations (other than Credit
Agreement Obligations in respect of Specified Swap Agreements) shall have been
paid in full, the Commitments have been terminated and no Letters of Credit
shall be outstanding, the Collateral shall be released from the Liens created
hereby, and this Agreement and all obligations (other than those expressly
stated to survive such termination) of the Administrative Agent and the Grantor
hereunder shall terminate, all without delivery of any instrument or performance
of any act by any party, and all rights to the Collateral shall revert to the
Grantor. At the request and sole expense of the Grantor following any such
termination, the Administrative Agent shall deliver to the Grantor any
Collateral held by the Administrative Agent hereunder, and execute and deliver
to the Grantor such documents as the Grantor shall reasonably request to
evidence such release and termination.
(b) If any of the Collateral shall be sold, transferred, assigned,
exchanged or otherwise disposed of by the Grantor in connection with the RRI
Option or any other transaction permitted by the Credit Agreement, the
Collateral shall be released from the Liens created hereby, and this Agreement
and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and the Grantor hereunder shall
terminate, all without delivery of any instrument or performance of any act by
any party, and all rights to the Collateral shall revert to the Grantor, and the
Administrative Agent, at the request and sole expense of the Grantor, shall
promptly deliver to the Grantor such Collateral held by the Administrative Agent
hereunder, and execute and deliver to the Grantor all releases or other
documents reasonably requested by the Grantor for the release of the Liens
created hereby on such Collateral.
7.14 WAIVER OF JURY TRIAL. THE GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.
13
IN WITNESS WHEREOF, each of the undersigned has caused this
Agreement to be duly executed and delivered as of the date first above written.
UTILITY HOLDING COMPANY, LLC
By: __________________________
Name:
Title:
Acknowledged and Agreed to
as of the date hereof:
CENTERPOINT ENERGY, INC.
By: _______________________________
Name:
Title:
Schedule 1
NOTICE ADDRESS OF GRANTOR
0000 Xxxxxxxxx
Xxxxxxx, Xxxxx 00000
Attention: Xxxxx Xxxxxx
Assistant Treasurer
(000) 000-0000
With a copy to: Xxxx Xxxxxxxx
Treasurer
(000) 000-0000
Schedule 2
DESCRIPTION OF PLEDGED STOCK
Issuer Class of Stock Stock Certificate No. No. of Shares
--------------------------- ---------------------- ---------------------------------- ------------------------------------
Texas Genco Holdings, Inc. Common Stock Uncertificated 64,764,220
Schedule 3
LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE
Jurisdiction of Organization Location of Chief Executive Office
---------------------------- -----------------------------------------
Delaware 0000 Xxxxxxxxx
Xxxxxxx, Xxxxx 00000
ACKNOWLEDGEMENT AND CONSENT
The undersigned hereby acknowledges receipt of a copy of the Pledge
Agreement dated as of ________, 200 (the "Agreement"), made by the Grantor for
the benefit of ____________________________, as Administrative Agent. The
undersigned agrees for the benefit of the Administrative Agent and the Banks as
follows:
1. The undersigned will be bound by the terms of the
Agreement and will comply with such terms insofar as such terms are applicable
to the undersigned.
2. The undersigned will notify the Administrative Agent
promptly in writing of the occurrence of any of the events described in Section
4.6(a) of the Agreement.
3. The terms of Sections 5.1(c) and 5.5 of the Agreement
shall apply to it, mutatis mutandis, with respect to all actions that may be
required of it pursuant to Section 5.1(c) or 5.5 of the Agreement.
TEXAS GENCO HOLDINGS, INC.
By: _______________________________________
Name:
Title:
Address for Notices:
_________________________________________
_________________________________________
_________________________________________
Fax:
Annex 1-A to
Assumption Agreement
Supplement to Schedule 1
Supplement to Schedule 2
Supplement to Schedule 3
