Looking for an agreement? Search from over 1 million agreements now.

Amended & Restated Stock Purchase Agreement

This is an actual contract by Panhandle Eastern Pipe Line.

Save time and money with our Premium Packages.
Buy all (8) recommended agreements for
$140.00 (50% savings)
Agreement Preview
Sectors: Utilities
Governing Law: New York, View New York State Laws
Effective Date: May 12, 2003
Related Agreement Types:
Search This Document
AMENDED AND RESTATED STOCK PURCHASE AGREEMENT


BY AND AMONG


CMS GAS TRANSMISSION COMPANY,


SOUTHERN UNION COMPANY


AND


SOUTHERN UNION PANHANDLE CORP.


DATED AS OF


MAY 12, 2003


- --------------------------------------------------------------------------------


TABLE OF CONTENTS


Page
----
ARTICLE I DEFINITIONS


Section 1.1 Specific Definitions........................................................2


ARTICLE II SALE AND PURCHASE


Section 2.1 Agreement to Sell and Purchase.............................................17


Section 2.2 Time and Place of Closing..................................................17


Section 2.3 Pre-Closing Matters........................................................17


Section 2.4 Estimated Purchase Price...................................................18


Section 2.5 Post-Closing Adjustment....................................................19


Section 2.6 Deliveries by Seller at the Closing........................................21


Section 2.7 Deliveries by Buyer at the Closing.........................................21


Section 2.8 Cooperation with Respect to Like-Kind Exchange.............................22


ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER


Section 3.1 Corporate Organization; Qualification......................................23


Section 3.2 Authority Relative to this Agreement.......................................23


Section 3.3 Panhandle Shares...........................................................24


Section 3.4 Consents and Approvals.....................................................25


Section 3.5 No Conflict or Violation...................................................25


Section 3.6 Financial Information......................................................26


Section 3.7 Contracts..................................................................26


Section 3.8 Compliance with Law........................................................27


Section 3.9 Permits....................................................................27


Section 3.10 Litigation................................................................27


Section 3.11 Title to Properties.......................................................28


Section 3.12 Employee Matters..........................................................28


Section 3.13 Labor Relations...........................................................30


Section 3.14 Intellectual Property.....................................................30


Section 3.15 Representations with Respect to Environmental Matters.....................31


Section 3.16 Tax Matters...............................................................32


Section 3.17 Absence of Certain Changes or Events......................................32


Section 3.18 Absence of Undisclosed Liabilities........................................33


Section 3.19 Brokerage and Finders' Fees...............................................33


Section 3.20 Affiliated Transactions...................................................33


Section 3.21 Insurance.................................................................33


Section 3.22 Regulatory Matters........................................................34


Section 3.23 Opinions of Financial Advisors............................................34


Section 3.24 Investment Representations................................................35


Section 3.25 Recent Transfers..........................................................35


Section 3.26 Date of Certain Representations...........................................35


Section 3.27 No Other Representations or Warranties....................................35


ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER AND SOUTHERN UNION


Section 4.1 Corporate Organization; Qualification......................................36


Section 4.2 Authority Relative to this Agreement.......................................36


Section 4.3 Consents and Approvals.....................................................37


Section 4.4 No Conflict or Violation...................................................37


Section 4.5 Litigation.................................................................37


Section 4.6 Availability of Funds......................................................38


Section 4.7 Brokerage and Finders' Fees................................................38


Section 4.8 Investment Representations.................................................38


Section 4.9 Buyer Capitalization; Other Interests......................................39


Section 4.10 Compliance with Law.......................................................39


Section 4.11 Southern Union Shares.....................................................40


Section 4.12 Southern Union Financial Information......................................41


Section 4.13 Absence of Certain Changes or Events......................................41


Section 4.14 Absence of Undisclosed Liabilities........................................41


Section 4.15 Southern Union Subsidiaries...............................................41


Section 4.16 SEC Filings...............................................................42


Section 4.17 Date of Certain Representations...........................................42


Section 4.18 No Other Representations or Warranties....................................42


ARTICLE V COVENANTS OF THE PARTIES


Section 5.1 Conduct of Business........................................................42


Section 5.2 Access to Properties and Records...........................................45


Section 5.3 Southern Union Conduct of Business.........................................45


Section 5.4 Consents and Approvals.....................................................47


Section 5.5 Further Assurances.........................................................49


Section 5.6 Employee Matters...........................................................49


Section 5.7 Tax Covenants..............................................................53


Section 5.8 Intercompany Accounts......................................................60


Section 5.9 Related Agreements.........................................................61


Section 5.10 Maintenance of Insurance Policies.........................................61


Section 5.11 Preservation of Records...................................................62


Section 5.12 Public Statements.........................................................62


Section 5.13 Certain Transactions......................................................62


Section 5.14 CMS Panhandle Holdings, LLC...............................................63


Section 5.15 Change of Corporate Name..................................................63


Section 5.16 Transitional Use of Seller's Trademarks...................................63


Section 5.17 Reasonable Best Efforts...................................................65


Section 5.18 No Shopping...............................................................65


Section 5.19 Southern Union Covenants..................................................65


Section 5.20 Restated Financials.......................................................65


Section 5.21 1935 Act Jurisdiction.....................................................66


Section 5.22 Registration of Southern Union Shares.....................................66


ARTICLE VI CONDITIONS


Section 6.1 Mutual Conditions to the Closing...........................................66


Section 6.2 Buyer's Conditions to the Closing..........................................67


Section 6.3 Seller's Conditions to the Closing.........................................69


ARTICLE VII TERMINATION AND ABANDONMENT


Section 7.1 Termination................................................................70


Section 7.2 Procedure and Effect of Termination........................................71


ARTICLE VIII SURVIVAL; INDEMNIFICATION


Section 8.1 Survival...................................................................71


Section 8.2 Indemnification............................................................72


Section 8.3 Calculation of Damages.....................................................75


Section 8.4 Procedures for Third-Party Claims..........................................75


Section 8.5 Procedures for Inter-Party Claims..........................................76


ARTICLE IX MISCELLANEOUS PROVISIONS


Section 9.1 Interpretation.............................................................77


Section 9.2 Disclosure Letters.........................................................77


Section 9.3 Payments...................................................................77


Section 9.4 Expenses...................................................................77


Section 9.5 Choice of Law..............................................................78


Section 9.6 Assignment.................................................................78


Section 9.7 Notices....................................................................78


Section 9.8 Consent to Jurisdiction....................................................79


Section 9.9 Resolution of Disputes.....................................................79


Section 9.10 Waiver of Jury Trial......................................................80


Section 9.11 No Right of Setoff........................................................80


Section 9.12 Time is of the Essence....................................................81


Section 9.13 Specific Performance......................................................81


Section 9.14 Entire Agreement..........................................................81


Section 9.15 Third Party Beneficiaries.................................................81


Section 9.16 Counterparts..............................................................81


Section 9.17 Severability..............................................................81


Section 9.18 Headings..................................................................82


Section 9.19 Waiver....................................................................82


Section 9.20 Amendment.................................................................82


STOCK PURCHASE AGREEMENT


This AMENDED AND RESTATED STOCK PURCHASE AGREEMENT, dated as of May 12, 2003 (this "Agreement"), is made and entered into by and among CMS Gas Transmission Company, a Michigan corporation (the "Seller"), Southern Union Company, a Delaware corporation ("Southern Union"), and Southern Union Panhandle Corp., a Delaware corporation (the "Buyer").


W I T N E S S E T H:


WHEREAS, Panhandle Eastern Pipe Line Company, a Delaware corporation ("Panhandle"), itself and through its subsidiaries, owns and operates a network of integrated natural gas and condensate pipeline and is engaged in the business of the interstate transportation of natural gas, natural gas storage services, the storage and regasification of liquefied natural gas and the separation and measurement of condensate;


WHEREAS, Seller owns all of the issued and outstanding shares of Panhandle (the "Panhandle Shares");


WHEREAS, Southern Union has formed Buyer for the purpose of effecting the transactions contemplated in this Agreement;


WHEREAS, Seller desires to sell all of the Panhandle Shares;


WHEREAS, Southern Union desires to cause Buyer to purchase all of the Panhandle Shares;


WHEREAS, each of the Boards of Directors or other governing body of each of Seller, Buyer and Southern Union has approved, and deems it advisable and in the best interests of their respective shareholders and partners to consummate the transactions contemplated by, this Agreement upon the terms and subject to the conditions set forth herein;


WHEREAS, Seller, Buyer, Southern Union, AIG Highstar Capital, L.P. ("Highstar"), AIG Highstar II Funding Corp. ("Funding," and together with Highstar, the "AIG Parties") entered into that certain Stock Purchase Agreement (the "Original Purchase Agreement"), dated as of December 21, 2002 (the "Original Date");


WHEREAS, Seller, Buyer, Southern Union and the AIG Parties entered into that certain Amendment Agreement, dated as of May 12, 2003 (the "Amendment Agreement"), amending the Original Purchase Agreement to remove the AIG Parties as parties to the Original Purchase Agreement and terminating the AIG Parties' participation in the sale of Panhandle; and


WHEREAS, in accordance with the terms of the Amendment Agreement, Seller, Buyer and Southern Union shall enter into this Agreement for the sale by Seller of Panhandle to Buyer pursuant to terms that will differ from those set forth in the Original Purchase Agreement;


1


NOW, THEREFORE, for and in consideration of the foregoing and the representations, warranties, covenants and agreements set forth herein, Seller, Buyer and Southern Union, intending to be legally bound hereby, hereby agree as follows:


ARTICLE I


DEFINITIONS


Section 1.1 Specific Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below:


"1935 Act" shall have the meaning set forth in Section 3.22.


"743 Schedule" shall have the meaning set forth in Section 5.7 (f).


"Access and Support shall mean the access and support agreement to be Agreement" entered into on the Closing Date between Seller and
Buyer, substantially in the form of the agreement
attached hereto as Exhibit B.


"Action" shall mean any administrative, regulatory, judicial
or other formal proceeding, action, Claim, suit,
investigation or inquiry by or before any
Governmental Authority, arbitrator or mediator.


"Affected Employees" shall mean Panhandle Employees on the Closing Date.


"Affiliate" shall have the meaning set forth in Rule 12b-2 of the
General Rules and Regulations under the Exchange Act.


"Agreement" shall mean this Stock Purchase Agreement, together
with the Seller Disclosure Letter, Buyer Disclosure
Letter and Exhibits hereto, as the same may be
amended or supplemented from time to time in
accordance with the provisions hereof.


"AIG Parties" shall have the meaning set forth in the recitals.


"Amendment Agreement" shall have the meaning set forth in the recitals.


"Annual Financial shall have the meaning set forth in Section 6.2 (i). Statements"


"Applicable Law" shall mean any statute, law, ordinance, executive
order, rule or regulation (including a regulation
that has been formally promulgated in a rule-making
proceeding but, pending final adoption, is in
proposed or temporary form having the force of law);
guideline or notice having the force of law; or
approval,


2


permit, license, franchise, judgment, order, decree,
injunction or writ of any Governmental Authority
applicable to a specified Person or specified
property, as in effect from time to time.


"Assumption shall mean the agreement between Buyer and CMS Agreement" Capital, L.L.C. whereby Buyer shall assume CMS
Capital L.L.C.'s obligation pursuant to its note
payable to Panhandle dated as of January 1, 2002,
substantially in the form of the agreement attached
hereto as Exhibit C.


"Auditor" shall have the meaning set forth in Section 2.5 (b).


"Base Net Working shall have the meaning set forth in Section 2.4. Capital"


"Base Total Debt" shall have the meaning set forth in Section 2.4.


"Bonus Accrual" shall have the meaning set forth in Section 5.6 (e).


"Burdensome shall have the meaning set forth in Section 5.4 (b). Condition"


"Business Day" shall mean a day other than a Saturday, Sunday or
other day on which banks located in New York City are
authorized or required by law to close.


"Business Materials" shall have the meaning set forth in Section 5.16 (a).


"Buyer" shall have the meaning set forth in the preamble to
this Agreement.


"Buyer Account Plan" shall have the meaning set forth in Section 5.6 (a).


"Buyer Adjustment" shall have the meaning set forth in Section 2.5 (c).


"Buyer Indemnified shall have the meaning set forth in Section 8.2 (a). Parties"


"Buyer Plans" shall have the meaning set forth in Section 5.6 (d).


"Cap Amount" shall have the meaning set forth in Section 8.2 (d).


"Casualty Insurance shall have the meaning set forth in Section 5.10 (a). Claims"


"Centennial" shall mean Centennial Pipeline, L.L.C., a Delaware
limited liability company.


3


"Claims" shall mean any and all claims, lawsuits, demands,
causes of action, investigations and other
proceedings (whether or not before a Governmental
Authority).


"Closing" shall have the meaning set forth in Section 2.2.


"Closing Adjustment shall have the meaning set forth in Section 2.5 (a). Amount"


"Closing Balance Sheet" shall have the meaning set forth in Section 2.5 (a).


"Closing Date" shall have the meaning set forth in Section 2.2.


"CMSGCFS" shall mean CMS Gulf Coast Field Service, L.L.C., a
Michigan limited liability company.


"Code" shall mean the Internal Revenue Code of 1986, as
amended.


"Comparable shall have the meaning ascribed to such term in the Employment" applicable Separation Plan.


"Confidentiality shall mean the confidentiality agreement entered Agreement" into by and between AIG Highstar Capital, L.P., a
Delaware limited partnership, and CMS Energy
Corporation ("Parent"), dated September 20, 2002, as
modified by the letter agreement dated December 6,
2002, and the confidentiality agreement entered into
by and among Parent, Southern Union and Buyer, dated
as of the date hereof.


"Consolidated Income shall have the meaning set forth in Section 5.7 Tax Return" (b)(ix) hereof.


"Corporate Name shall have the meaning set forth in Section 5.15. Change Transition Period"


"Damages" shall mean all demands, Claims, causes of action,
suits, judgments, damages, amounts paid in settlement
(with the approval of the Indemnifying Party where
applicable), penalties, Liabilities, losses or
deficiencies, costs and expenses, including
reasonable attorney's fees, court costs, expenses of
arbitration or mediation, and other out-of-pocket
expenses incurred in investigating or preparing the
foregoing. "Damages" does not include incidental,
indirect or consequential damages, damages for lost
profits or other special damages or punitive or
exemplary damages; provided, however, that in the
case of Third-Party Claims, "Damages" shall be deemed
to include all forms of relief, monetary and


4


otherwise, asserted therein, without any of the
foregoing exceptions.


"Determination Date" shall have the meaning set forth in Section 2.5 (b).


"Disabled Employee" shall have the meaning set forth in Section 5.6
(b)(i).


"Dispute" shall have the meaning set forth in Section 9.9.


"Election" shall have the meaning set forth in Section 5.7
(a)(i).


"Employee Benefit shall have the meaning set forth in Section 3.12 (c). Plans"


"Encumbrances" shall mean any Claims, mortgages, pledges, liens,
security interests, conditional and installment sale
agreements or other title retention agreements,
activity and use limitations, easements, deed
restrictions, title defects, reservations,
encumbrances and charges of any kind, options,
subordination agreements or adverse claim of any
kind.


"Environmental Laws" shall mean all foreign, federal, state and local
laws, regulations, rules and ordinances relating to
pollution or protection of human health or the
environment, including laws relating to releases or
threatened releases of Hazardous Substances into the
environment (including ambient air, surface water,
groundwater, land, surface and subsurface strata).


"Environmental Permit" shall mean any Permit, formal exemption,
identification number or other authorization issued
by a Governmental Authority pursuant to an applicable
Environmental Law.


"ERISA" shall mean the Employee Retirement Income Security
Act of 1974, as amended, and the regulations
promulgated thereunder.


"ERISA Plan(s)" shall have the meaning set forth in Section 3.12(a).


"Estimated shall have the meaning set forth in Section 2.4. Adjustment Amount"


"Estimated Closing shall have the meaning set forth in Section 2.3. Debt"


5


"Estimated Closing Net shall have the meaning set forth in Section 2.3. Working Capital Amount"


"Estimated Purchase shall have the meaning set forth in Section 2.4. Price"


"Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.


"Final 743 Schedule" Shall have the meaning set forth in Section 5.7
(f)(i).


"Final Form 8023" shall have the meaning set forth in Section 5.7
(a)(ii).


"Financial Statements" shall mean the Year-End Financial Statements and the
Interim Financial Statements.


"Funding" shall have the meaning set forth in the recitals.


"GAAP" shall mean United States generally accepted
accounting principles as in effect from time to time,
applied on a consistent basis.


"Governmental shall mean any executive, legislative, judicial, Authority" tribal, regulatory, taxing or administrative agency,
body, commission, department, board, court, tribunal,
arbitrating body or authority of the United States or
any foreign country, or any state, local or other
governmental subdivision thereof.


"Guardian" shall mean Guardian Pipeline, L.L.C., a Delaware
limited liability company.


"Hazardous Substances" shall mean any chemicals, materials or substances
defined as or included in the definition of
"hazardous substances," "hazardous wastes,"
"hazardous materials," "hazardous constituents,"
"restricted hazardous materials," "extremely
hazardous substances," "toxic substances,"
"contaminants" "pollutants," "toxic pollutants," or
words of similar meanin
-- End of Preview --
Home| About Us| FAQ| Subscription | Contact Us |

Privacy Policy   Terms of Service  3.85.10.62