Purchase and Sale Agreement (2006)Full Document 

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EXECUTION VERSION
 
 
PURCHASE AND SALE AGREEMENT
by and among
ANP ERCOT ACQUISITION, LLC
as Buyer
and
TOPAZ POWER GROUP GP, LLC
and
TOPAZ POWER GROUP LP, LLC
as Sellers
 
Dated as of April 18, 2006
 
 
 

 


 

             
 
  ARTICLE I        
 
  PURCHASE AND SALE OF THE UNITS        
 
           
Section 1.1
  Time and Place of Closing     1  
Section 1.2
  Purchase and Sale of Units     2  
Section 1.3
  Purchase Price Adjustment     3  
Section 1.4
  Purchase Price Allocations     5  
Section 1.5
  Preliminary Information     6  
Section 1.6
  Sellers’ Closing Deliverables     6  
Section 1.7
  Buyer’s Closing Deliverables     7  
 
           
 
  ARTICLE II        
 
  REPRESENTATIONS AND WARRANTIES CONCERNING EACH SELLER        
 
           
Section 2.1
  Organization; Etc     7  
Section 2.2
  Authority Relative to this Agreement     8  
Section 2.3
  Ownership of Equity Interests     8  
Section 2.4
  Consents and Approvals; No Violations     8  
Section 2.5
  Brokers; Finders and Fees     9  
 
           
 
  ARTICLE III        
 
  REPRESENTATIONS AND WARRANTIES CONCERNING THE COMPANY        
 
           
Section 3.1
  Organization; Etc     9  
Section 3.2
  Authority Relative to this Agreement     10  
Section 3.3
  Capitalization     10  
Section 3.4
  Consents and Approvals; No Violations     11  
Section 3.5
  Reports and Financial Statements     12  
Section 3.6
  Absence of Undisclosed Liabilities     12  
Section 3.7
  Absence of Certain Changes     12  
Section 3.8
  Litigation     13  
Section 3.9
  Compliance with Law     13  
Section 3.10
  Labor and Employment Matters     13  
Section 3.11
  Taxes     14  
Section 3.12
  Title, Ownership and Related Matters     15  
Section 3.13
  Environmental     16  
Section 3.14
  Intellectual Property     18  
Section 3.15
  Contracts     19  

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Section 3.16
  Insurance     20  
Section 3.17
  Regulatory Matters     20  
Section 3.18
  Affiliate Transactions     21  
Section 3.19
  Brokers; Finders and Fees     21  
 
           
 
  ARTICLE IV        
 
  REPRESENTATIONS AND WARRANTIES OF BUYER        
 
           
Section 4.1
  Organization; Etc     21  
Section 4.2
  Authority Relative to this Agreement     22  
Section 4.3
  Consents and Approvals; No Violations     22  
Section 4.4
  Litigation     22  
Section 4.5
  Compliance with Law     22  
Section 4.6
  Investment     23  
Section 4.7
  Financial Ability     23  
Section 4.8
  Brokers; Finders and Fees     23  
 
           
 
  ARTICLE V        
 
  COVENANTS OF THE PARTIES        
 
           
Section 5.1
  Operating Covenants of the Company     23  
Section 5.2
  Access to Information     25  
Section 5.3
  Consents; Cooperation     26  
Section 5.4
  Reasonable Best Efforts     28  
Section 5.5
  Public Announcements     29  
Section 5.6
  Employees; Employee Benefits     29  
Section 5.7
  Tax Matters     31  
Section 5.8
  Escrow Agreement     33  
Section 5.9
  Mutual Release     33  
Section 5.10
  SES PPA     33  
Section 5.11
  Intercompany Arrangements     33  
Section 5.12
  Casualty     34  
Section 5.13
  Transition Services Agreement     34  
 
           
 
  ARTICLE VI        
 
  CONDITIONS TO CONSUMMATION OF THE ACQUISITION        
 
           
Section 6.1
  Conditions to Buyer’s and Sellers’ Obligations to Consummate the Acquisition     34  
Section 6.2
  Further Conditions to Sellers’ Obligations     34  

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Section 6.3
  Further Conditions to Buyer’s Obligations     35  
 
           
 
  ARTICLE VII        
 
  TERMINATION AND ABANDONMENT        
 
           
Section 7.1
  Termination     36  
Section 7.2
  Procedure for and Effect of Termination     36  
 
           
 
  ARTICLE VIII        
 
  MISCELLANEOUS PROVISIONS        
 
           
Section 8.1
  Representations and Warranties and Covenants     37  
Section 8.2
  Amendment and Modification     37  
Section 8.3
  Entire Agreement; Assignment     37  
Section 8.4
  Severability     38  
Section 8.5
  Notices     38  
Section 8.6
  Governing Law     40  
Section 8.7
  Descriptive Headings     40  
Section 8.8
  Counterparts     40  
Section 8.9
  Fees and Expenses     40  
Section 8.10
  Interpretation     41  
Section 8.11
  Third-Party Beneficiaries     42  
Section 8.12
  No Waivers     42  
Section 8.13
  Specific Performance     42  
 
           
    EXHIBITS AND SCHEDULES        
 
           
Exhibit A
  Form of Escrow Agreement        
Exhibit B
  Form of Amendment to SES PPA        
Exhibit C
  [Reserved]        
Exhibit D-1
  [Reserved]        
Exhibit D-2
  Surviving Intercompany Arrangements        
Exhibit E
  Buyer’s Parent Guarantee and Lender Commitment        

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INDEX OF TERMS
         
Term   Page  
Acquisition
    1  
Action
    13  
Adjustment Amount
    3  
Adjustment Statement
    3  
Affiliate
    41  
Agreement
    1  
Allocation
    5  
Approval
    8  
Approvals
    8  
Benefits Maintenance Period
    29  
Buyer
    1  
Buyer Benefit Plans
    29  
Buyer Material Adverse Effect
    21  
Capital Expenditure Account
    3  
Capital Expenditure Account Balance
    3  
Cash Consideration
    2  
Closing
    1  
Closing Date
    1  
Closing Date Capital Expenditure Account Balance
    3  
Closing Date Net Working Capital
    3  
Code
    5  
Company
    1  
Company Affiliate Contracts
    21  
Company Contracts
    19  
Company Insurance Policies
    20  
Company IP
    41  
Company Material Adverse Effect
    9  
Company Securities
    11  
Conclusive Adjustment Amount
    5  
Conclusive Adjustment Statement
    4  
Conclusive Statement
    4  
Confidentiality Agreement
    26  
Consideration
    2  
Contract
    8  
Contracts
    8  
Credit Agreement
    6  
Derivative Product
    20  
Disclosure Letter
    9  
DOJ
    27  
Environmental Claim
    17  
Environmental Law
    18  
Environmental Permits
    16  
ERCOT ISO
    8  
ERISA
    14  
Escrow Account
    2  
Escrow Agent
    2  
Escrow Agreement
    2  
Escrow Amount
    2  
Estimated Closing Date Capital Expenditure Account Balance
    3  
Estimated Net Working Capital
    3  
Final Allocation
    5  
Financial Statements
    12  
FTC
    27  
GAAP
    11  
Governmental Authority
    9  
Hazardous Substance
    18  
HSR Act
    11  
Indebtedness
    11  
Intellectual Property
    41  
Intercompany Arrangement
    33  
Law
    12  
Laws
    12  
Leased Real Property
    15  
Leases
    15  
Liabilities
    12  
Liens
    10  
Modified Net Working Capital
    2  
Neutral Accounting Arbitrator
    4  
Optional Termination Date
    36  
Order
    11  
Other Regulations
    26  
Owned Real Property
    15  
Parties
    1  
Party
    1  
Pay-Off Letters
    6  
Permits
    13  
Permitted Liens
    16  
Person
    41  
Plant
    1  
Preliminary Statement
    3  
PUC
    12  
PURA
    12  

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Term   Page  
Real Property
    15  
Release
    18  
Released Claims
    33  
Released Parties
    33  
Remedial Action
    18  
Representatives
    26  
Required Approvals
    11  
Resolution Period
    4  
Securities Act
    23  
Seller
    1  
Sellers
    1  
Sellers Benefit Plans
    14  
Sellers Employees
    14  
Sellers’ Statement
    4  
Sempra
    14  
SES PPA
    33  
SES PPA Amendment
    6  
Sharing Percentage
    2  
Statement
    3  
STS
    14  
STS Employees
    14  
Subsidiary
    41  
Surviving Intercompany Arrangement
    33  
Target Modified Net Working Capital
    3  
Tax Return
    15  
Taxes
    15  
Termination Date
    36  
Title Commitment
    16  
Topaz GP
    1  
Topaz LP
    1  
Topaz Power Group
    13  
Topaz Power Partners
    6  
TPG Employees
    13  
TPG Transferred Employee
    29  
Transition Services Agreement
    34  
Units
    1  

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PURCHASE AND SALE AGREEMENT
     PURCHASE AND SALE AGREEMENT, dated as of April 18, 2006 (this “Agreement”), by and among ANP ERCOT ACQUISITION, LLC, a Delaware limited liability company (“Buyer”), TOPAZ POWER GROUP GP, LLC (“Topaz GP”), a Delaware limited liability company, and TOPAZ POWER GROUP LP, LLC (“Topaz LP”), a Delaware limited liability company (each of Topaz GP and Topaz LP a “Seller,” and together the “Sellers”). Buyer and Sellers are hereinafter collectively referred to as the “Parties” and each individually as a “Party.”
     WHEREAS, as of the date of this Agreement, Sellers own in the aggregate 100% of the issued and outstanding partnership units (the “Units”) of Coleto Creek Power, LP, a Texas limited partnership (the “Company”), which partnership units constitute all of the issued and outstanding equity interests in the Company;

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