Exhibit 10(b)(10)
AMENDMENT NO. 2
to
LEASE AGREEMENT
This AMENDMENT NO. 2, dated as of December 1, 1999,to Lease
Agreement, dated as of December 1, 1985, between TUCSON ELECTRIC
POWER COMPANY, an Arizona corporation ("TEP"), and SAN XXXXXX
RESOURCES INC., an Arizona corporation ("San Xxxxxx"), jointly
and severally as Lessee (such term and all other capitalized
terms used herein without definition having the meanings provided
in Section 1 hereof), and WILMINGTON TRUST COMPANY, a Delaware
corporation, and XXXXXXX X. XXXX (not in their respective
individual capacities but solely as Owner Trustee and Cotrustee,
respectively, under the Trust Agreement between such parties and
Xxxxxxx Finance Co., as Owner Participant), as Lessor (this
"Lease Amendment"),
W I T N E S S E T H
WHEREAS, the Lessee and the Lessor have heretofore entered
into a Lease Agreement, dated as of December 1, 1985, as duly
recorded in the office of the County Recorder of Apache County,
Arizona on January 8, 1986, in Docket 499 at Pages 319-452, as
supplemented by a Lease Supplement dated December 31, 1985, as
duly recorded in the aforesaid office in Docket 499 at Pages 489-
506, as amended by Amendment No. 1 to Lease Agreement, dated as
of December 15, 1992, duly recorded in the aforesaid office in
Docket 700 at Pages 372-398, providing for the lease by the
Lessor to the Lessee of the Leased Assets (such Lease Agreement,
as so supplemented and amended and as further amended, modified
or supplemented from time to time in accordance with the
provisions thereof, being hereinafter referred to as the
"Lease"),
WHEREAS,the Lessee and the Lessor have agreed pursuant to a
Refunding Agreement, dated as of December 1, 1999 (as amended,
modified or supplemented from time to time in accordance with the
provisions thereof, the "Refunding Agreement"), with the Owner
Participant, the Loan Participants named therein, the Indenture
Trustee and certain other parties to participate in refinancing
the outstanding Secured Notes on the Refunding Date (as defined
in the Refunding Agreement),
WHEREAS, the Lessee and Lessor have agreed to amend the
Lease as contemplated herein so as to effectuate such
refinancing,
WHEREAS, Section 31(b) of the Lease provides, among other
things, that until the Lessee has received notice from the
Indenture Trustee that the Lien of the Indenture on the Trust
Indenture Estate has been released, no term of the Lease shall
be amended without the consent of the Indenture Trustee, and
WHEREAS, pursuant to Section 15.1 of the Indenture, the
Indenture Trustee has, at the direction and with the consent of
each holder of a Secured Note, consented, by executing and
delivering the Refunding Agreement, to the amendments to the
Lease set forth in this Lease Amendment,
NOW THEREFORE, in consideration of the premises and of such
other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
Section 1. Definitions.
(a) General Definitions. Except as otherwise expressly
provided herein or unless the context otherwise requires,
capitalized terms used herein shall have the meanings set forth
in Section 1 of the Lease.
(b) Amended Definitions. The following definition in
Section 1 of the Lease is hereby amended in its entirety to read
as follows:
"Loan Participant" shall mean collectively, the holders
of the Secured Notes and individually, any holder of a Secured
Note.
(c) Additional Definition. Section 1 of the Lease is
hereby amended by adding the following definitions thereto:
"Administrative Agent" shall mean Union Bank of
California, N.A, in its capacity as Administrative Agent for the
Loan Participants.
"Alternate Base Rate" shall have the meaning specified
in the Indenture.
"Series 3 Notes" shall have the meaning specified in
the Indenture.
(d) Deleted Definitions. The definition of Series 1 Notes,
Series 2 Notes and Subparticipation Amount in Section 1 of the
Lease are hereby deleted in their entirety.
(e) Special Event of Loss. Clause (iii) of the definition
of "Special Event of Loss" in Section 1 of the Lease is hereby
amended in its entirety to read as follows:
(iii) (a) any of the Series 3 Notes are
outstanding after July 1, 2003 unless
subclause (b) of this clause (iii) shall
apply, or (b) upon any date occurring
prior to July 1, 2003 which shall have
been agreed to by the Lessee and the
Owner Participant; or
(f) Stipulated Interest Rate. Clause (b) of the definition
of "Stipulated Interest Rate" in Section 1 of the Lease is hereby
amended in its entirety to read as follows:
(b) in the case of any payment or the
portion of any payment to paid to the
Indenture Trustee or Loan Participant,
two percent over the Alternate Base
Rate.
Section 2. Insurance. Section 8(c) of the Lease is hereby
amended to delete each reference therein to the Loan Participant
and to substitute the words "Administrative Agent" in lieu
thereof.
Section 3. Sublease. Clause (ii)(B)(1) of the proviso to
Section 13(a) of the Lease is hereby amended to delete the words
"Series 1 Notes or Series 2 Notes" and to substitute the words
"Series 3 Notes" in lieu thereof.
Section 4. Counterpart Execution. This Lease Amendment may
be executed by the parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an
original, but all such counterparts shall together constitute but
one and the same instrument. The single executed original of
this Lease Amendment which provides that it is the "original
counterpart" and which contains the receipt therefor executed by
the Indenture Trustee on or immediately following the signature
page thereof shall evidence the monetary obligations of the
Lessee hereunder and thereunder. To the extent, if any, that
this Lease Amendment constitutes chattel paper (as such term is
defined in the Uniform Commercial Code as in effect in any
applicable jurisdiction), no security interest in this Lease
Amendment may be created by the transfer or possession of any
counterpart thereof other than the original counterpart and
containing the receipt therefor executed by the Indenture Trustee
on or immediately following the signature page thereof.
Section 5. Ratification of the Lease. This Lease Amendment
is an amendment to the Lease. As amended by this Lease
Amendment, the Lease is in all respects ratified, approved and
confirmed, and the Lease and this Lease Amendment shall together
constitute one and the same instrument.
Section 6. Governing Law. This Lease Amendment has been
delivered in, and shall in all respects be governed by and
construed in accordance with, the laws of the State of Arizona
applicable to agreements made and to be performed entirely within
such state, including matters of construction, validity and
performance.
Section 7. Liabilities of Owner Participant. Sections 23
and 31 of the Lease are hereby incorporated by reference mutatis
mutandis in this Lease Amendment.
IN WITNESS WHEREOF, the undersigned Lessee and Lessor have
each caused this Lease Amendment to be duly executed and
delivered and their corporate seals to be hereunto affixed and
attested by their respective officers thereunto duly authorized
as of the day and year first above written.
TUCSON ELECTRIC POWER COMPANY,
as Lessee
By: /s/ Xxxxx Xxxxxx
------------------------------
Name:
Title:
[seal]
Attest:
/s/ Xxxxx Xxxxxxx
------------------------
Assistant Secretary
SAN XXXXXX RESOURCES INC.
as Lessee
By: /s/ Xxxxx X. Xxxxxxxxx
------------------------------
Name:
Title:
[seal]
Attest:
/s/ Xxxxxxx Xxxxxx
------------------------
Assistant Secretary
WILMINGTON TRUST COMPANY,
not in its individual capacity
but solely as Owner Trustee
under the Trust Agreement, as
Lessor
By: /s/ X. Xxxxxx
------------------------------
Name: Xxxxxxxxx Xxxxxx
Title: Financial Services Officer
[seal]
Attest:
/s/ X. Xxxxx
------------------------
Assistant Secretary
/s/ Xxxxxxx X. Xxxx
---------------------------------
XXXXXXX X. XXXX,
not in his individual capacity
but solely as Cotrustee under
the Trust Agreement, as Lessor
Witness:
/s/ Xxxxx X. Marthrope
------------------------
Receipt of this original counterpart of the foregoing
Amendment No. 2 to Lease Agreement is hereby acknowledged on this
____ day of December, 1999.
UNITED STATES TRUST COMPANY OF NEW YORK,
as Indenture Trustee
By:
-----------------------------------
Name:
Title:
ACKNOWLEDGEMENTS TO LEASE AMENDMENT
STATE OF ARIZONA )
) ss.:
COUNTY OF PIMA )
The foregoing instrument was acknowledged before me this
10th day of December, 1999, by Xxxxx Xxxxxx, Vice President &
Treasurer, of TUCSON ELECTRIC POWER COMPANY, an Arizona
corporation, on behalf of said corporation.
/s/ Xxxxx Xxx Xxxxxx
-----------------------------
Notary Public
My Commission Expires:
May 14, 2000
----------------------
STATE OF ARIZONA )
) ss.:
COUNTY OF PIMA )
The foregoing instrument was acknowledged before me this
10th day of December, 1999, by Xxxxx X. Xxxxxxxxx, Vice
President & Controller of SAN XXXXXX RESOURCES INC., an
Arizona corporation, on behalf of said corporation.
/s/ Xxxxx Xxx Xxxxxx
-----------------------------
Notary Public
My Commission Expires:
May 14, 2000
----------------------
STATE OF DELAWARE )
) ss.:
COUNTY OF NEW CASTLE )
The foregoing instrument was acknowledged before me this
10th day of December, 1999, by Xxxxxxxxx Xxxxxx, Financial
Services Officer, of WILMINGTON TRUST COMPANY, a Delaware
banking corporation, on behalf of said corporation.
/s/ Xxxxx X. Xxxxxxxx
-----------------------------
Notary Public
My Commission Expires:
October 9, 2000
------------------------
STATE OF DELAWARE )
) ss.:
COUNTY OF NEW CASTLE )
The foregoing instrument was acknowledged before me this
10th day of December, 1999, by XXXXXXX X. XXXX, an individual.
/s/ Xxxxx X. Xxxxxxxx
-----------------------------
Notary Public
My Commission Expires:
October 9, 2000
------------------------
