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Document Preview Asset Sale Agreement |
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Title: |
Asset Sale Agreement |
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Entities: |
AES Corp.; Chase Manhattan Bank; Nevada Power Co; Southern California Edison Co.; Skadden, Arps, Slate, Meagher & Flom LLP |
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Date: |
2001 |
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Size: |
Preview shows 21KB of 264KB total |
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Price: |
$65 |
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ID: |
#1367925 |
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Start of Preview |
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ASSET SALE AGREEMENT
******
NEVADA POWER COMPANY
As Seller
AND
THE AES CORPORATION
As Buyer
Dated: May 10, 2000
________________________________________________________________________________
<PAGE>
ASSET SALE AGREEMENT
Table of Contents
<TABLE>
<S> <C>
PREAMBLE......................................................................................................... 1
ARTICLE 1 DEFINITIONS............................................................................................ 1
1.1 Certain Defined Terms.......................................................................... 1
1.2 Index of Other Defined Terms................................................................... 4
1.3 Certain Interpretive Matters................................................................... 6
ARTICLE 2 BASIC TRANSACTIONS..................................................................................... 6
2.1 Purchased Assets............................................................................... 6
2.2 Excluded Assets................................................................................ 9
2.3 Assumed Liabilities............................................................................ 12
2.4 Excluded Liabilities........................................................................... 14
2.5 Related Agreements............................................................................. 16
2.6 Purchase Price................................................................................. 16
2.7 Buyer Group Transactions With Other Owners..................................................... 19
2.8 No Assignment If Breach........................................................................ 22
2.9 Procedures for Certain Purchase Price Adjustments.............................................. 23
2.10 Intentionally Left Blank....................................................................... 24
2.11 Intentionally Left Blank....................................................................... 24
2.12 Intentionally Left Blank....................................................................... 24
2.13 Assignment of Rights and Obligations to Buyer Subsidiaries..................................... 24
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER............................................................... 27
3.1 Organization and Corporate Power............................................................... 27
3.2 Authority and Enforceability................................................................... 27
3.3 No Breach or Conflict.......................................................................... 27
3.4 Approvals...................................................................................... 28
3.5 Permits........................................................................................ 28
3.6 Compliance with Law............................................................................ 28
3.7 Hazardous Substances........................................................................... 29
3.8 Title to Personal Property..................................................................... 29
3.9 Contracts...................................................................................... 30
3.10 Litigation..................................................................................... 30
3.11 Plant Data..................................................................................... 30
3.12 Brokers........................................................................................ 31
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER................................................................ 32
4.1 Organization and Corporate Power............................................................... 32
4.2 Authority and Enforceability................................................................... 32
4.3 No Breach or Conflict.......................................................................... 32
4.4 Approvals...................................................................................... 33
4.5 Litigation..................................................................................... 33
4.6 Brokers........................................................................................ 33
4.7 Exculpation.................................................................................... 33
4.8 Financing...................................................................................... 34
</TABLE>
-i-
<PAGE>
<TABLE>
<S> <C>
4.9 No Knowledge of Seller's Breach......................... 34
4.10 Qualified for Licenses.................................. 34
4.11 Buyer Subsidiaries...................................... 34
ARTICLE 5 COVENANTS OF EACH PARTY......................................... 35
5.1 Efforts to Close........................................ 35
5.2 Post-Closing Cooperation................................ 36
5.3 Expenses................................................ 36
5.4 Announcements; Confidentiality.......................... 37
5.5 Litigation Conduct and Settlement....................... 38
ARTICLE 6 ADDITIONAL COVENANTS OF SELLER.................................. 38
6.1 Access.................................................. 38
6.2 Updating................................................ 39
6.3 Conduct Pending Closing................................. 39
6.4 Environmental Matters................................... 41
ARTICLE 7 ADDITIONAL COVENANTS OF BUYER................................... 43
7.1 Waiver of Bulk Sales Law Compliance..................... 43
7.2 Resale Certificate...................................... 43
7.3 Conduct Pending Closing................................. 43
7.4 Securities Offerings.................................... 43
7.5 Release................................................. 43
7.6 Additional Covenants of the Buyer....................... 44
ARTICLE 8 BUYER'S CONDITIONS TO CLOSING................................... 44
8.1 Performance of Agreement................................ 44
8.2 Accuracy of Representations and Warranties.............. 44
8.3 Officers' Certificate................................... 45
8.4 Approvals............................................... 45
8.5 No Restraint............................................ 46
8.6 Title Insurance......................................... 47
8.7 Related Agreements...................................... 48
8.8 Casualty; Condemnation.................................. 48
8.9 Opinion of Counsel...................................... 49
8.10 Receipt of Other Documents.............................. 49
8.11 Limitation on Adjustments............................... 50
8.12 Independent Engineer's Letter........................... 50
8.13 SCE Closing............................................. 50
ARTICLE 9 SELLER'S CONDITIONS TO CLOSING.................................. 50
9.1 Performance of Agreement................................ 50
9.2 Accuracy of Representations and Warranties.............. 50
9.3 Officers' Certificate................................... 50
9.4 Approvals............................................... 50
9.5 No Restraint............................................ 51
9.6 Related Agreements...................................... 51
9.7 Opinion of Counsel...................................... 51
9.8 Receipt of Other Documents.............................. 51
9.9 Limitation on Adjustments............................... 52
ARTICLE 10 CLOSING........................................................ 52
</TABLE>
-ii-
<PAGE>
<TABLE>
<S> <C>
10.1 Closing................................................. 52
10.2 Escrow.................................................. 53
10.3 Power Purchase Agreement and Escrow Arrangements........ 54
10.4 Prorations.............................................. 56
ARTICLE 11 TERMINATION.................................................... 56
11.1 Termination............................................. 56
11.2 Effect of Termination................................... 58
11.3 Modification of Terms................................... 58
11.4 Breakup Fee............................................. 58
ARTICLE 12 SURVIVAL AND REMEDIES; INDEMNIFICATION......................... 59
12.1 Survival................................................ 59
12.2 Exclusive Remedy........................................ 59
12.3 Indemnity by Seller..................................... 59
12.4 Indemnity by Buyer...................................... 60
12.5 Further Qualifications Respecting Indemnification....... 61
12.6 Procedures Respecting Third Party Claims................ 62
12.7 Pro Rata Limitation On Buyer Claims..................... 62
ARTICLE 13 GENERAL PROVISIONS............................................. 63
13.1 Notices................................................. 63
13.2 Attorneys' Fees......................................... 64
13.3 Successors and Assigns.................................. 64
13.4 Counterparts............................................ 64
13.5 Captions and Paragraph Headings......................... 64
13.6 Entirety of Agreement; Amendments....................... 64
13.7 Construction............................................ 65
13.8 Waiver.................................................. 65
13.9 Arbitration............................................. 65
13.10 Governing Law........................................... 68
13.11 Severability............................................ 68
13.12 Consents Not Unreasonably Withheld...................... 68
13.13 Time Is of the Essence.................................. 68
</TABLE>
-iii-
<PAGE>
LIST OF SCHEDULES
A Sellers; Undivided Interests
1.1(k) Intentionally Left Blank
2.1(a) Owned Real Property
2.1(b) Real Property Leases
2.1(c) Easements
2.1(d) Equipment
2.1(f) Assigned Contracts
2.1(g) Licenses
2.1(j) Prepayments
2.1(k) Emission Allowances and Emission Reduction Credits
2.1(l) Jointly Owed Intangible Property
2.1(m) Switchyard Assets
2.1(p) Miscellaneous Assets
2.2(a) Excluded Nevada Power and Edison Switchyard Assets
2.2(c) Communications Equipment and Facilities
2.2(u) Other Excluded Assets
2.3(a) Guaranties
2.3(h) Miscellaneous Excluded Liabilities
2.4(c) Assumed Breaches
2.4(m) Excluded Litigation
2.4(n) Other Excluded Liabilities
2.5 Related Agreements
2.6(b) Allocation Schedule
2.6(c)(i) Scheduled Capital Expenditures
2.6(c)(ii)(A) Inventory Control Data Report
2.6(c)(ii)(B) Coal Inventory Report
3.4(a) Seller's Private Party Consents
3.4(b) Seller's Government Consents
3.5 Excluded Permits
3.6 Compliance with Law
3.7 Environmental Matters
3.8 Permitted Encumbrances
3.9 Contracts
3.10 Seller Litigation
3.11 Selected Historical Operating Data
3.12 Seller's Brokers
3.13 Assets Used in the Operation of the Plant
4.4(a) Buyer's Private Party Consents
4.4(b) Buyer's Government Consents
4.5 Buyer's Litigation
4.6 Buyer's Brokers
5.5 Settlement Terms
6.3 Exceptions to Conduct
-iv-
<PAGE>
6.4(a) Remediation Measures
8.6(b) Disapproved Title Exceptions
8.9 Seller's Legal Opinion
8.12 Independent Engineer's Letter
9.7 Buyer's Legal Opinion
10.3(a)(3) Permitted Investments
-v-
<PAGE>
ASSET PURCHASE AGREEMENT
This ASSET SALE AGREEMENT (the "Agreement") is made and entered into as of
the 10th day of May 2000 by and among the Seller named on Schedule A hereto
----------
("Seller"), and The AES Corporation, a Delaware corporation ("Buyer"), with
reference to the following facts:
A. Seller is a public utility engaged in the business of generating,
transmitting and distributing electric energy and in connection therewith owns
as a tenant-in-common an undivided interest in the Mohave Generating Station,
located in Laughlin, Nevada (the "Plant").
B. Buyer desires to purchase from Seller, and Seller desires to sell to
Buyer, upon the terms and subject to the conditions of this Agreement, the
percentage shown on Schedule A of one hundred percent (100%) of the undivided
----------
interests owned by all tenants-in-common that own the Plant (the "Undivided
Interests"), together with the same percentage of the Undivided Interests in the
assets and facilities related to the Plant (the "Transactions").
NOW, THEREFORE, in consideration of the foregoing recitals and the
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, do hereby agree as follows:
ARTICLE 1
DEFINITIONS
-----------
1.1 Certain Defined Terms. For purposes of this Agreement, the following
---------------------
terms shall have the following meanings:
(a) "Affiliate" of a specified Person shall mean any corporation,
partnership, sole proprietorship or other Person which directly or
indirectly through one or more intermediaries controls, is controlled by or
is under common control with the Person specified. The term "control"
means the possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of a Person.
(b) "Auction" means the procedures employed by Southern California
Edison Company, a California corporation ("SCE"), through which Undivided
Interests in the Plant were offered for sale to competing bidders.
(c) "Business Day" means a day that is not a Saturday, a Sunday or a
day on which banking institutions in the State of Nevada are not required
to be open.
(d) "Commercially Reasonable Efforts" means efforts which would be
within the contemplation of a reasonable party at the time of executing
this Agreement and which do not require the performing party to expend any
funds other than expenditures which are customary and reasonable in
transactions of the kind and nature contemplated by this Agreement in order
for the performing party to satisfy its obligations hereunder.
-1-
<PAGE>
(e) "Co-Tenancy Agreement" means the Mohave Project Plant Site
Conveyance and Co-Tenancy Agreement dated May 29, 1967 to which the Owners
are parties as of the date hereof, as the same may be amended to the
Closing Date.
(f) "Emission Allowances" mean all present and future authorizations
to emit or Release specified units of pollutants or Hazardous Materials
from or in connection with the operation of the Plant, which units are
established by a Governmental Body with jurisdiction over the Plant under
(i) an air pollution control and emission reduction program designed to
mitigate global warming or the transport of air pollutants; (ii) a program
designed to mitigate impairment of surface waters, watersheds or
groundwater; or (iii) any pollution reduction program with a similar
purpose. The term "Allowances" includes emissions allowances, as described
above, regardless of whether the Governmental Body establishing such
allowances designates them by a name other than "allowances."
(g) "Emission Reduction Credits" mean credits, in such units as are
established by a Governmental Body with jurisdiction over the Plant,
resulting from reductions, if any, in emissions or Releases of pollutants
or Hazardous Materials from or in connection with the operation of the
Plant (including, without limitation, and to the extent allowable under
applicable Law, reductions from shut-downs or control of emissions or
Releases beyond that required by applicable Law) that have been identified
or certified by the Governmental Body as complying with the Law governing
the establishment of such credits. The term "Emission Reduction Credits"
includes credits, as described above, regardless of whether the
Governmental Body establishing such credits designates them by a name other
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