EXHIIBT 10(d)
AMENDMENT AGREEMENT
This AMENDMENT AGREEMENT, dated as of May 12, 2003 (this "Agreement"),
is made and entered into by and among CMS Gas Transmission Company (the
"Seller"), AIG Highstar Capital, L.P. ("Highstar"), AIG Highstar II Funding
Corp. ("Funding," and together with Highstar, the "Highstar Parties"), Southern
Union Company ("Southern Union"), and Southern Union Panhandle Corp. ("Buyer",
and together with Seller, the Highstar Parties and Southern Union, the "Purchase
Agreement Parties").
WHEREAS, the Purchase Agreement Parties are parties to that certain
Stock Purchase Agreement, dated as of December 21, 2002 (the "Purchase
Agreement"); and
WHEREAS, the Purchase Agreement Parties desire to amend the Purchase
Agreement so that the Highstar Parties are no longer parties to the Purchase
Agreement;
NOW, THEREFORE, for and in consideration of the foregoing and the
representations, warranties, covenants and agreements set forth herein, the
Purchase Agreement Parties, intending to be legally bound, hereby agree as
follows (capitalized terms used in this Agreement but not otherwise defined
shall have the meanings ascribed to such terms in the Purchase Agreement):
1. Effective immediately, the Purchase Agreement is hereby amended
pursuant to Section 9.20 of the Purchase Agreement such that the
Highstar Parties are no longer parties to the Purchase Agreement and
such that the Highstar Parties' participation in the sale of Panhandle
is terminated. As further set forth in paragraphs 4 and 5 below, the
Highstar Parties shall have no election, right, option, claim, or other
privilege or any obligation or liability arising under, in connection
with or relating to the Purchase Agreement or the transactions
contemplated by the Purchase Agreement except for those elections,
rights, options, claims or other privileges or any obligations or
liabilities expressly arising hereunder. In addition, the Highstar
Parties, Southern Union and Buyer agree that upon execution of this
Agreement, that certain letter agreement, dated as of December 20,
2002, by and among the Highstar Parties, Southern Union and Buyer
regarding the formation, capitalization and operation of the Buyer as
well as all other agreements, arrangements and commitments entered into
in connection therewith (together, the "Buyer Formation Agreements")
are hereby terminated. The Highstar Parties acknowledge that (i)
simultaneously with the execution of this Agreement, Seller, Buyer and
Southern Union intend to enter into an amended purchase agreement
relating to the sale of Panhandle to Buyer, pursuant to terms that will
differ from those set forth in the Purchase Agreement (such new
agreement, the "Amended Purchase Agreement"), (ii) as soon as
reasonably practicable thereafter, Seller, Southern Union and Buyer
intend to consummate the transactions contemplated by any Amended
Purchase Agreement (the "Amended Transactions"), and (iii) the Highstar
Parties shall have no
election, right, option, claim, or other privilege or any obligation or
liability arising under, in connection with, or relating to, the
Amended Purchase Agreement or the Amended Transactions. In addition,
the Highstar Parties and SU are simultaneously entering into a letter
agreement regarding the termination of certain other arrangements (the
"Highstar/SU Letter Agreement"). Notwithstanding anything to the
contrary contained herein, from and after the date of this Agreement,
in the event that any of the Highstar Parties suffer or incur any
Damages as a result of a Third Party Claim, the Highstar Parties shall
continue to be entitled to any and all rights to indemnification
provided under Article VIII of the Purchase Agreement with respect to
such Third Party Claim to the same extent as the Highstar Parties would
have been entitled to indemnification under Article VIII of the
Purchase Agreement for any such Third Party Claim had this Agreement
not been executed and, solely for purposes of determining the right of
the Highstar Parties to indemnification under this Agreement and
Article VIII of the Purchase Agreement, the Highstar Parties shall be
treated as if the Highstar Parties had completed the transactions
contemplated by the Purchase Agreement. Southern Union shall indemnify
CMS for fifty percent (50%) of any amount paid by CMS or its Affiliates
to the Highstar Parties pursuant to the preceding sentence. In
consideration for the termination by the Highstar Parties of their
participation in the sale of Panhandle, from and after the date hereof,
Southern Union shall assume any and all obligations of the Highstar
Parties to indemnify CMS or any other Person under Articles VII or VIII
of the Purchase Agreement, and Southern Union hereby assumes all
obligations of the Sponsors to pay those expenses of the Sponsors and
the Buyer with respect to the transactions contemplated by the Purchase
Agreement otherwise allocable to the Sponsors under the Purchase
Agreement and the Buyer Formation Documents.
2. The Highstar Parties do hereby unequivocally release and discharge
Seller, its parents, subsidiaries and affiliates, and any of their
respective officers, directors, agents, managers, employees,
representatives, legal and financial advisors, principals or partners,
and any heirs, executors, administrators, successors or assigns of any
said persons or entities (the "Seller Releasees"), from any and all
actions, causes of action, choses in action, cases, claims, suits,
debts, dues, sums of money, accounts, reckonings, bonds, bills,
specialties, covenants, contracts, controversies, agreements, promises,
variances, trespasses, injuries, ▇▇▇▇▇, damages, judgments, remedies,
extents, executions, demands, liens and liabilities whatsoever, in law,
equity or otherwise (together, "Actions"), in any way arising under, in
connection with or relating to the Purchase Agreement or the
transactions contemplated thereby, or any action or failure to act
under the Purchase Agreement or in connection therewith or in
connection with the events leading to the removal of the Highstar
Parties as parties to the Purchase Agreement, which have been asserted
against the Seller Releasees or which, whether currently known or
unknown, the Highstar Parties, or any successors or assigns, ever could
assert, or ever do assert, against the Seller Releasees, relating to
any claims, or any transactions or occurrences from any time through
the date hereof in connection with the foregoing; provided, however,
the Seller Releasees
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are not released from any Actions which may arise (i) under this
Agreement or (ii) under the Confidentiality Agreement.
3. The Highstar Parties do hereby unequivocally release and discharge
Southern Union and Buyer, their parents, subsidiaries and affiliates,
and any of their respective officers, directors, agents, managers,
employees, representatives, legal and financial advisors, principals or
partners, and any heirs, executors, administrators, successors or
assigns of any said persons or entities (the "Southern Union
Releasees"), from any and all Actions in any way arising under, in
connection with or relating to the Purchase Agreement and/or the Buyer
Formation Agreements or the transactions contemplated thereby
(including under that certain letter agreement, dated as of December
20, 2002, by and among the Highstar Parties and Southern Union), or any
action or failure to act under the Purchase Agreement and/or the Buyer
Formation Agreements or in connection therewith or in connection with
the events leading to the removal of the Highstar Parties as parties to
the Purchase Agreement, which have been asserted against the Southern
Union Releasees or which, whether currently known or unknown, the
Highstar Parties, or any successors or assigns, ever could assert, or
ever do assert, in any capacity, against the Southern Union Releasees,
relating to any claims, or any transactions or occurrences from any
time through the date hereof in connection with the foregoing;
provided, however, the Southern Union Releasees are not released from
any Actions which may arise (i) under this Agreement, (ii) the
Highstar/SU Agreement, or (iii) under the Confidentiality Agreement.
4. Seller does hereby unequivocally release and discharge the Highstar
Parties, their parents, subsidiaries and affiliates, and any of their
respective officers, directors, agents, managers, employees,
representatives, legal and financial advisors, principals or partners,
and any heirs, executors, administrators, successors or assigns of any
said persons or entities (the "Highstar Releasees"), from any and all
Actions in any way arising under, in connection with or relating to the
Purchase Agreement or the transactions contemplated thereby, or any
action or failure to act under the Purchase Agreement or in connection
therewith, or in connection with the events leading to the removal of
the Highstar Parties as parties to the Purchase Agreement, which have
been asserted against the Highstar Releasees or which, whether
currently known or unknown, Seller, Southern Union or Buyer, or any
successors or assigns, ever could assert, or ever do assert, in any
capacity, against the Highstar Releasees, relating to any claims, or
any transactions or occurrences from any time through the date hereof
in connection with the foregoing; provided, however; the Highstar
Releasees are not released from any Action which may arise (i) under
this Agreement or (ii) under the Confidentiality Agreement.
5. Southern Union and Buyer do hereby unequivocally release and discharge
the Highstar Releasees from any and all Actions arising under, in
connection with or relating to the Purchase Agreement and/or the Buyer
Formation Agreements or
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the transactions contemplated thereby (including under that certain
letter agreement, dated as of December 20, 2002, by and among the
Highstar Parties and Southern Union), or any action or failure to act
under the Purchase Agreement and/or the Buyer Formation Agreements or
in connection therewith, or in connection with the events leading to
the removal of the Highstar Parties as parties to the Purchase
Agreement, which have been asserted against the Highstar Releasees or
which, whether currently known or unknown, Seller, Southern Union or
Buyer, or any successors or assigns, ever could assert, or ever do
assert, in any capacity, against the Highstar Releasees, relating to
any claims, or any transactions or occurrences from any time through
the date hereof in connection with the foregoing; provided, however;
the Highstar Releasees are not released from any Action which may arise
(i) under this Agreement, (ii) the Highstar/SU Agreement, or (iii)
under the Confidentiality Agreement.
6. The Highstar Parties agree that, if requested by the Federal Trade
Commission ("FTC") as a condition to the expiration or termination of
the waiting period under the HSR Act to permit Buyer's acquisition of
Panhandle or by the Missouri Attorney General as a condition to not
opposing Buyer's acquisition of Panhandle, the Highstar Parties and any
applicable subsidiary will negotiate in good faith, with the FTC, the
Missouri Attorney General, and the other parties to this Agreement, as
applicable, mutually acceptable terms and conditions of consent
order(s) governing the future interactions of the Highstar Parties and
their subsidiaries with Southern Union and its affiliates (including,
but not limited to, provisions that the Highstar Parties and their
subsidiaries will not acquire any interest in Buyer or Panhandle and/or
will not enter into any management agreement with Southern Union
relating to the Central Pipeline (as hereinafter defined), without
prior FTC or Missouri Attorney General approval), and the Highstar
Parties will sign such a consent order if the terms and conditions of
such consent order are reasonably acceptable to the Highstar Parties.
The "Central Pipeline" means the Central Pipeline acquired by Highstar,
through AIG Highstar Capital, L.P. and Southern Star Central Corp.,
from The ▇▇▇▇▇▇▇▇ Companies, that distributes natural gas from
producing locations in Kansas, Oklahoma, Texas, Wyoming and Colorado to
consuming areas in the Midwest. In no event shall the Highstar Parties
be required to enter into any such consent with the FTC that would
prohibit the Highstar Parties or any applicable subsidiary from
acquiring Energy Worx, Inc. or from retaining management of Energy
Worx, Inc. to manage the Central Pipeline.
7. The parties hereby agree that the Confidentiality Agreement, which for
purposes of this Agreement, shall be deemed to also include (a) the
letter agreement, dated as of November 1, 2002, by and between the
Highstar Parties and Southern Union regarding the disclosure of
Confidential Information to Southern Union, and (b) the letter
agreement, dated as of December 6, 2002, among the Purchase Agreement
Parties, pursuant to which Southern Union agreed to be subject to the
Confidentiality Agreement, shall continue in full force and effect
pursuant to its terms. Seller hereby demands that the Highstar Parties
return or destroy the
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Information (as defined in the Confidentiality Agreement) and all
copies thereof, pursuant to and otherwise subject to Section 4 of the
Confidentiality Agreement.
8. Attached hereto as Exhibits A and B are the respective forms of press
release to be issued by Seller and Southern Union on signing of this
Agreement, with respect to this Agreement and the removal of the
Highstar Parties as parties to the Purchase Agreement.
9. Each party agrees that it will not, and will cause its respective
subsidiaries not to, and will use its reasonable best efforts to cause
its directors, officers and employees not to, make any public
statements or any statements reasonably calculated to become public
(orally, in writing, electronically or otherwise), or instigate, assist
or participate in making any such statement, which would reasonably be
considered to disparage any other party or its business or operations,
or their respective businesses and operations, or any other party's
present and former officers, partners, directors, employees, agents,
stockholders or representatives, in their capacity as such. Until the
first anniversary of the date hereof, except as otherwise agreed by the
parties, Southern Union, Buyer and Seller shall not make any public
statements or any statements reasonably calculated to become public
regarding, or respond to inquiries from the media, analysts, investors
and other third parties, or otherwise comment on, the Highstar Parties
in connection with the Panhandle transaction and the reasons for the
removal of the Highstar Parties as parties to the Purchase Agreement,
except as provided in the form of the press releases attached hereto as
Exhibit A and Exhibit B or as required by law or a governmental or
regulatory authority. Until the first anniversary of the date hereof,
except as otherwise agreed by the parties, the Highstar Parties shall
not make any public statements or any statements reasonably calculated
to become public regarding, or respond to inquiries from the media,
analysts, investors and other third parties, or otherwise comment on,
Southern Union, Buyer, Seller, Panhandle and the Panhandle
Subsidiaries, the Panhandle transaction and the reasons for the removal
of the Highstar Parties as parties to the Purchase Agreement, except as
provided in the form of press releases attached hereto as Exhibit A and
Exhibit B or as required by law or a governmental or regulatory
authority. Notwithstanding the foregoing, each party shall have a fair
opportunity to make statements in response to statements made by any
other party or in response to requests of a governmental or regulatory
authority.
10. Each party represents to the other parties that: (a) it is duly
organized and validly existing under the laws of the jurisdiction of
its incorporation or formation and in good standing; (b) it has the
power to execute and perform its obligations under this Agreement and
has taken all necessary action to authorize such execution, delivery
and performance; (c) such execution, delivery and performance does not
violate or conflict with any law applicable to it, any provision of its
charter or bylaws or other similar governing documents or any order or
judgment of any court or other agency of government applicable to it or
any of its assets; (d) all
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governmental and other consents that are required to have been obtained
by it with respect to this Agreement have been obtained and are in full
force and effect and all conditions of any such consents have been
complied with; and (e) its obligations under this Agreement constitute
its legal, valid and binding obligations, enforceable in accordance
with the terms hereof.
11. Any term or condition of this Agreement may be waived at any time by
the party that is entitled to the benefit thereof, but no such waiver
shall be effective unless set forth in a written instrument duly
executed by or on behalf of the party waiving such term or condition.
No waiver by any party of any term or condition of this Agreement, in
any one or more instances, shall be deemed to be or construed as a
waiver of the same or any other term or condition of this Agreement on
any future occasion. All remedies, either under this Agreement or by
any laws or otherwise afforded, will be cumulative and not alternative.
12. This Agreement shall be binding upon and inure solely to the benefit of
the parties hereto and their respective successors and assigns. Except
as otherwise expressly contemplated hereby, none of the provisions of
this Agreement shall be for the benefit of or enforceable by any third
party, including any creditor of any party or any of their affiliates.
Except as otherwise expressly contemplated hereby, no such third party
shall obtain any right under any provision of this Agreement or shall
by reasons of any such provision make any Claim in respect of any
Liability (or otherwise) against any party hereto.
13. Except as otherwise expressly provided herein, this Agreement
constitutes the entire agreement, and supersedes all prior agreements
and understandings, written or oral, among the parties with respect to
the subject matter of this Agreement. This Agreement may be altered,
amended or changed only by a writing making specific reference to this
Agreement and signed by duly authorized representatives of each party.
14. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York (regardless of the laws that might
otherwise govern under applicable New York principles of conflicts of
law).
15. This Agreement may be executed by facsimile signatures by any party and
such signature shall be deemed binding for all purposes hereof, without
delivery of an original signature being thereafter required. This
Agreement may be executed in one or more counterparts, each of which,
when executed, shall be deemed to be an original and all of which
together shall constitute one and the same document.
16. Any disputes arising out of or relating to this Agreement or the
breach, termination or validity thereof or the parties' performance
hereunder shall be resolved as provided by Section 9.9 of the Purchase
Agreement.
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17. All demands, notices, consents, approvals, reports, requests and other
communications hereunder must be in writing, will be deemed to have
been duly given only if delivered personally or by facsimile
transmission (with confirmation of receipt) or by an
internationally-recognized express courier service or by mail (first
class, postage prepaid) to the parties at the addresses or telephone or
facsimile numbers set forth in Section 9.7 of the Purchase Agreement
(or to such other address as the addressee shall have last furnished in
writing in accord with this provision to the addressor) and will be
deemed effective upon delivery; provided, however, that any
communication by facsimile shall be confirmed by an
internationally-recognized express courier service or regular mail.
18. Each party shall maintain at all times a duly appointed agent in the
State of New York, which may be changed upon ten (10) Business Days'
notice to the other party, for the service of any process or summons in
connection with any issue, litigation, action or proceeding brought in
any such court. Any such process or summons may also be served on a
party by mailing a copy of such process or summons to it at its address
set forth in Section 9.7 of the Purchase Agreement (or to such other
address as the addressee shall have last furnished in writing in accord
with this provision to the addressor) and will be deemed effective upon
delivery; provided, however, that any communication by facsimile shall
be confirmed by an internationally-recognized express courier service
or regular mail. Each party hereby irrevocably consents to the
exclusive personal jurisdiction and venue of any New York State or
United States Federal court of competent jurisdiction sitting in New
York County, New York, in any action, Claim or proceeding arising out
of or in connection with this Agreement and agrees not to commence or
prosecute any action, Claim or proceeding in any other court. Each of
the parties hereby expressly and irrevocably waives and agrees not to
assert the defense of lack of personal jurisdiction, forum non
conveniens or any similar defense with respect to the maintenance of
any such action or proceeding in New York County, New York.
19. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY
RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER DOCUMENT DELIVERED IN CONNECTION HEREWITH, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN) OR ACTIONS OF ANY PARTY. EACH PARTY ACKNOWLEDGES AND AGREES
THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS
PROVISION (AND EACH OTHER PROVISION OF EACH OTHER DOCUMENT DELIVERED IN
CONNECTION HEREWITH TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS
A MATERIAL INDUCEMENT FOR SUCH PARTY ENTERING INTO THIS AGREEMENT AND
EACH SUCH OTHER DOCUMENT.
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IN WITNESS WHEREOF, the Purchase Agreement Parties have executed this
agreement as of the date first written above.
CMS GAS TRANSMISSION COMPANY
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: President and CEO
SOUTHERN UNION PANHANDLE CORP.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: President and Chief Operating Officer
SOUTHERN UNION COMPANY
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: President and Chief Operating Officer
AIG HIGHSTAR CAPITAL, L.P.
By: /s/ ▇▇▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇
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Name: ▇▇▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇
Title: Managing Partner
AIG HIGHSTAR II FUNDING CORP.
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇
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Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇
Title: Treasurer