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Designated Asset Sale Proceeds Account Control Agreement

 

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Title:

Designated Asset Sale Proceeds Account Control Agreement

Entities:

Bank of Nova Scotia; Goldman Sachs Credit Partners LP; Union Bank of California, NA; Wilmington Trust Co.; Bank of New York; Calpine Corporation

Date:

2004

Size:

Preview shows 9KB of 84KB total

Price:

$52

ID:

#250535

 

 

► Securities ► Control ► Misc. Control Agreements
► Financial
► Financial ► Money Center Banks
► Financial ► Regional Banks

 

 

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                               CALPINE CORPORATION


DESIGNATED ASSET SALE PROCEEDS ACCOUNT CONTROL AGREEMENT

Dated as of July 16, 2003

================================================================================

{PAGE}

TABLE OF CONTENTS

{TABLE}
{CAPTION}
PAGE
----
{S} {C}
ARTICLE I
DEFINITIONS

SECTION 1.01. Definitions............................................................................... 2

SECTION 1.02. Rules of Interpretation................................................................... 3

ARTICLE II
DESIGNATED ASSET SALE PROCEEDS ACCOUNT

SECTION 2.01. Designated Asset Sale Proceeds Account.................................................... 3

SECTION 2.02. Permitted Investments..................................................................... 6

SECTION 2.03. Monies Received by the Company............................................................ 7

SECTION 2.04. Books of Designated Asset Sale Proceeds Account; Statements............................... 7

ARTICLE III
SECURITY AND RELATED PROVISIONS; SECURITIES INTERMEDIARY

SECTION 3.01. Securities Designated Asset Sale Proceeds Account......................................... 8

SECTION 3.02. Certain Rights and Powers in Respect of Designated Asset Sale Proceeds Account and Funds.. 9

SECTION 3.03. Security Interest......................................................................... 10

SECTION 3.04. Duties and Certain Rights of Depositary Agent............................................. 12

SECTION 3.05. Remedies.................................................................................. 17

ARTICLE IV
TERMINATION OF AGREEMENT

SECTION 4.01. Rights and Obligations of Collateral Trustee and Depositary Agent......................... 18

SECTION 4.02. Secured Obligations....................................................................... 18

ARTICLE V
MISCELLANEOUS

SECTION 5.01. Notices................................................................................... 19
{/TABLE}

{PAGE}

{TABLE}
{S} {C}
SECTION 5.02. Benefit of Agreement...................................................................... 19

SECTION 5.03. No Waiver; Remedies Cumulative............................................................ 20

SECTION 5.04. Severability.............................................................................. 20

SECTION 5.05. Amendments................................................................................ 20

SECTION 5.06. Headings.................................................................................. 20

SECTION 5.07. Governing Law............................................................................. 20

SECTION 5.08. CONSENT TO JURISDICTION................................................................... 20

SECTION 5.09. WAIVER OF JURY TRIAL...................................................................... 21

SECTION 5.10. Successors and Assigns.................................................................... 22

SECTION 5.11. Entire Agreement.......................................................................... 22

SECTION 5.12. Survival of Agreements.................................................................... 22

SECTION 5.13. Further Information....................................................................... 22

SECTION 5.14. Additional Depositary Agent Provisions.................................................... 22

SECTION 5.15. Counterparts.............................................................................. 23

SECTION 5.16. Effectiveness............................................................................. 23

SECTION 5.17. Collateral Trustee's Obligations.......................................................... 23
{/TABLE}

EXHIBIT A: Remittance Instruction Form

2

{PAGE}

This DESIGNATED ASSET SALE PROCEEDS ACCOUNT CONTROL AGREEMENT, dated as
of July 16, 2003 (this "Agreement"), is entered into by and among CALPINE
CORPORATION, a Delaware corporation (the "Company"), Union Bank of California,
N.A., as the bank and the securities intermediary (together with its permitted
successors in such capacity, the "Depositary Agent"), and THE BANK OF NEW YORK,
as Collateral Trustee (together with its successors in such capacity, the
"Collateral Trustee").

RECITALS:

WHEREAS, Calpine Corporation (the "Company") intends to enter
into an Amended and Restated Credit Agreement dated as of July 16, 2003 (as
amended, modified, renewed, restated or replaced from time to time, the "Credit
Agreement") among, inter alia, the Company, the Lenders referred to therein and
The Bank of Nova Scotia, as Administrative Agent (the "Credit Agreement Agent"),
relating to a $500,000,000 senior secured credit facility to be made available
in the form of revolving loans and term loans, including letters of credit to be
issued thereunder;

WHEREAS, the Company intends to (a) issue $500,000,000 in
aggregate principal amount of Second Priority Senior Secured Floating Rate Notes
due 2007 (the "2007 Notes") pursuant to the Indenture dated as of July 16, 2003
(the "2007 Indenture") between the Company and Wilmington Trust Company, as
Trustee (together with its successors in such capacity, the "2007 Trustee"), (b)
issue $1,150,000,000 in aggregate principal amount of 8.50% Second Priority
Senior Secured Notes due 2010 (the "2010 Notes") pursuant to the Indenture dated
as of July 16, 2003 (the "2010 Indenture") between the Company and Wilmington
Trust Company, as Trustee (together with its successors in such capacity, the
"2010 Trustee"), (c) issue $900,000,000 in aggregate principal amount of 8.75%
Second Priority Senior Secured Notes due 2013 (the "2013 Notes") pursuant to the
Indenture dated as of July 16, 2003 (the "2013 Indenture") between the Company
and Wilmington Trust Company, as Trustee (together with its successors in such
capacity, the "2013 Trustee"), and (d) borrow $750,000,000 in Term Loans (the
"Term Loans") pursuant to a Term Loan Agreement dated as of July 16, 2003 (the
"Term Loan Agreement") between the Company and Goldman Sachs Credit Partners
L.P., as Administrative Agent (together with its successors in such capacity,
the "Term Loan Administrative Agent");

WHEREAS, the Company and certain of its Subsidiaries have
entered into a Collateral Trust Agreement dated as of July 16, 2003 (the
"Collateral Trust Agreement") among, inter alia, the Company, certain

 

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