Attachment D Trade Secret Electric APA, Schedules, and Wholesale Power Supply Agreement

661 Pages·2014·6.19 MB·English

Attachment D
Trade Secret Electric APA, Schedules, and Wholesale
Power Supply Agreement
PUBLIC DOCUMENT
TRADE SECRET DATA HAS BEEN EXCISED

Execution Copy
Attachment D
Page 1 of 660
ASSET PURCHASE AND SALE AGREEMENT
by and between
Interstate Power and Light Company, an Iowa corporation,
(Seller)
and
Southern Minnesota Energy Cooperative,
a cooperative formed under the laws of Minnesota,
(Purchaser)
DATED AS OF September3, 2013
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Attachment D
Page 2 of 660
TABLE OF CONTENTS
Page
Article IDEFINITIONS................................................................................................................1
Section 1.1 Defined Terms.........................................................................................1
Section 1.2 Interpretation..........................................................................................13
Section 1.3 Captions.................................................................................................14
Section 1.4 No Joint Venture....................................................................................14
Section 1.5 Construction of Agreement....................................................................14
Article II PURCHASE AND SALE OF PURCHASED ASSETS..............................................14
Section 2.1 Purchased Assets....................................................................................14
Section 2.2 Excluded Assets.....................................................................................16
Section 2.3 Purchaser’s Assumed Liabilities............................................................18
Section 2.4 Seller’s Retained Liabilities...................................................................19
Section 2.5 Further Assurances; Cooperation...........................................................21
Section 2.6 Closing...................................................................................................21
Section 2.7 Purchase Price........................................................................................21
Section 2.8 Transmission / Regulatory Asset Adjustments......................................24
Article III REPRESENTATIONS AND WARRANTIES OF SELLER....................................24
Section 3.1 Transaction Representations..................................................................25
Section 3.2 No Material Adverse Effect...................................................................26
Section 3.3 Compliance with Laws..........................................................................26
Section 3.4 Permits, Licenses, Etc............................................................................26
Section 3.5 Litigation................................................................................................26
Section 3.6 Zoning and Condemnation.....................................................................27
Section 3.7 Brokers...................................................................................................27
Section 3.8 Contracts................................................................................................27
Section 3.9 Casualty; Operations..............................................................................28
Section 3.10 Taxes......................................................................................................28
Section 3.11 ERISA; Benefit Plans............................................................................28
Section 3.12 Title to Tangible Personal Property.......................................................29
Section 3.13 Environmental Matters...........................................................................29
Section 3.14 Employee and Labor Matters.................................................................30
Section 3.15 Financial Information.............................................................................30
Section 3.16 Books and Records................................................................................30
Section 3.17 Real Property.........................................................................................31
Section 3.18 No Undisclosed Liabilities.....................................................................31
Section 3.19 Disclosures.............................................................................................31
Section 3.20 Disclaimers Regarding Purchased Assets..............................................31
Article IVREPRESENTATIONS AND WARRANTIES OF PURCHASER............................32
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Section 4.1 Transaction Representations..................................................................32
Section 4.2 Litigation................................................................................................33
Section 4.3 Brokers...................................................................................................34
Section 4.4 Compliance with Laws..........................................................................34
Section 4.5 Financial Ability....................................................................................34
Section 4.6 Disclosures.............................................................................................34
Section 4.7 “As Is” Sale............................................................................................34
Article VCOVENANTS OF THE PARTIES..............................................................................35
Section 5.1 Due Diligence; Updates and Changes to Schedules and Exhibits.........35
Section 5.2 Consents and Approvals........................................................................40
Section 5.3 Confidentiality.......................................................................................42
Section 5.4 Labor Matters.........................................................................................43
Section 5.5 Additional Employee Benefits Matters..................................................44
Section 5.6 Cooperation............................................................................................46
Section 5.7 Taxes, Prorations and Closing Costs.....................................................46
Section 5.8 Permits, Licenses and Variances............................................................51
Section 5.9 No Recourse...........................................................................................51
Section 5.10 Intentionally deleted...............................................................................51
Section 5.11 Maintenance of Purchased Assets Pending Closing..............................51
Section 5.12 Capital Expenditures Prior to Closing...................................................52
Section 5.13 Post-Closing Information and Records..................................................52
Section 5.14 No Solicitation of Other Bids................................................................53
Section 5.15 Casualty Loss.........................................................................................54
Section 5.16 Transition Services.................................................................................54
Section 5.17 System Separation..................................................................................54
Section 5.18 Wholesale Power Supply Agreement....................................................54
Section 5.19 Tower Lease Agreement........................................................................55
Section 5.20 Seller Marks...........................................................................................55
Section 5.21 Easements..............................................................................................55
Section 5.22 Lender Commitment..............................................................................55
Article VI INDEMNIFICATION................................................................................................55
Section 6.1 Survival of the Parties’ Representations and Warranties.......................55
Section 6.2 Indemnification by Seller.......................................................................56
Section 6.3 Indemnification by Purchaser................................................................57
Section 6.4 Notice of Claim......................................................................................57
Section 6.5 Defense of Third Party Claims..............................................................58
Section 6.6 Cooperation............................................................................................58
Section 6.7 Mitigation and Limitation on Claims.....................................................59
Section 6.8 Remedies Exclusive...............................................................................59
Article VII CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER AT THE
CLOSING.........................................................................................................................59
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Section 7.1 Compliance with Provisions..................................................................59
Section 7.2 Purchaser’s Receipt of Approvals of Governmental Authorities..........60
Section 7.3 Receipt of Required Consents................................................................60
Section 7.4 No Adverse Proceedings........................................................................60
Section 7.5 Deliveries...............................................................................................60
Section 7.6 Purchaser Title Policy............................................................................60
Section 7.7 No Material Adverse Effect...................................................................61
Section 7.8 Due Diligence........................................................................................61
Section 7.9 System Separation..................................................................................61
Article VIII CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLER AT THE
CLOSING.........................................................................................................................61
Section 8.1 Compliance with Provisions..................................................................61
Section 8.2 Seller’s Receipt of Approvals of Governmental Authorities.................62
Section 8.3 Purchaser’s Receipt of Required Consents............................................62
Section 8.4 Seller’s Receipt of Required Consents..................................................62
Section 8.5 No Adverse Proceeding.........................................................................62
Section 8.6 System Separation..................................................................................62
Section 8.7 Deliveries...............................................................................................62
Section 8.8 Lender Commitment..............................................................................62
Article IXCLOSING DELIVERIES...........................................................................................62
Section 9.1 Purchaser’s Additional Deliveries.........................................................62
Section 9.2 Seller’s Additional Deliveries................................................................63
Article XTERMINATION..........................................................................................................65
Section 10.1 Rights to Terminate................................................................................65
Section 10.2 Non-Solicitation.....................................................................................66
Section 10.3 Effect of Termination.............................................................................67
Article XIMISCELLANEOUS AGREEMENTS AND ACKNOWLEDGMENTS..................67
Section 11.1 Expenses................................................................................................67
Section 11.2 Entire Document....................................................................................67
Section 11.3 Schedules...............................................................................................67
Section 11.4 Counterparts...........................................................................................68
Section 11.5 Severability............................................................................................68
Section 11.6 Successors and Assigns..........................................................................68
Section 11.7 Governing Law......................................................................................68
Section 11.8 Dispute Resolution.................................................................................68
Section 11.9 Notices...................................................................................................70
Section 11.10 Time is of the Essence...........................................................................71
Section 11.11 No Third Party Beneficiaries.................................................................71
Section 11.12 Effect of Closing....................................................................................71
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Section 11.13 Conflicts.................................................................................................71
Section 11.14 Consent to Jurisdiction...........................................................................71
Section 11.15 No Public Announcement......................................................................72
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EXHIBITS
A Form of Bill of Sale
B Intentionally Omitted
C Forms of Grant Deeds
D Form of Assignment and Assumption
E Form of Wholesale Power Supply Agreement
F Form of FIRPTA Affidavit
G Form of Tower Lease Agreement
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SCHEDULES
Schedule 1.1 (Seller Officers and Employees)
Schedule 1.2 (Purchaser Officers and Employees)
Schedule 1.3 (Territory)
Schedule 2.1(a) (Fee Property)
Schedule 2.1(c) (Specific Permits, Licenses and Variances)
Schedule 2.1(d) (Electric Assets)
Schedule 2.1(e) (Personal Property)
Schedule 2.1(f) (Leases, Easements and other Rights)
Schedule 2.1(g) (Assigned Contracts)
Schedule 2.2(a) (Retained Land, Leases and Easements)
Schedule 2.7 (Purchase Price)
Schedule2.8 (Transmission/Regulatory Asset Adjustments)
Schedule 3.1(c) (Violations)
Schedule 3.1(d) (Consents)
Schedule 3.3 (Compliance Exceptions)
Schedule 3.4 (Permits, Licenses, Etc.)
Schedule 3.5 (Seller Litigation)
Schedule 3.6 (Zoning and Condemnation)
Schedule 3.8 (Contractual Defaults)
Schedule 3.9(a) (Casualty Losses)
Schedule 3.9(b) (Operations Outside of the Ordinary Course)
Schedule 3.10 (Taxes)
Schedule 3.11(a) (Benefit Plans)
Schedule 3.12 (Tangible Personal Property Encumbrances)
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Schedule 3.13 (Environmental Matters)
Schedule 3.14 (Employee and Labor Matters)
Schedule 3.15 (Seller Financial Information)
Schedule 3.17 (Real Property Title Exceptions)
Schedule 3.18 (Certain Material Liabilities)
Schedule4.1(c) (Violations)
Schedule 4.1(d) (Purchaser Consents)
Schedule 4.2 (Purchaser Litigation)
Schedule 4.4 (Purchaser Compliance Exceptions)
Schedule5.4(b) (Layoff)
Schedule 5.7 (Transferred Real Property Values)
Schedule 5.12 (Pre-Approved Capital Expenditures)
Schedule 7.3(a) (Purchaser Consents Required for Closing)
Schedule 8.2 (Required Governmental Approvals)
Schedule 8.4 (Seller Consents Required for Closing)
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Attachment D
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ASSET PURCHASE AND SALE AGREEMENT
This ASSET PURCHASE AND SALE AGREEMENT (this “Agreement”) is made, as of
September3, 2013 (“Effective Date”), by and between Interstate Power and Light Company, an
Iowa corporation (“Seller”), and Southern Minnesota Energy Cooperative, a cooperative formed
under the laws of Minnesota (“Purchaser”).
WITNESSETH:
WHEREAS, Seller owns and operates electric distribution operations and facilities
located in the Territory (as defined below); and
WHEREAS, Seller desires to sell to Purchaser, and Purchaser desires to purchase from
Seller, Seller’s electric distribution operations and facilities located in the Territory on and
subject to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the respective representations, warranties,
covenants and agreements contained in this Agreement, each of Seller and Purchaser agrees as
follows:
ARTICLE I
DEFINITIONS
Section 1.1 Defined Terms. The following capitalized terms when used in this
Agreement (or in the Schedules and Exhibits to this Agreement) have the respective meanings
set forth below:
“Affiliate” means, with respect to any Person, any other Person that (i)directly or
indirectly controls the specified Person or (ii)is controlled directly or indirectly by or is under
direct or indirect common control with the specified Person, and, for the avoidance of doubt,
when used with respect to Purchaser, Affiliate shall include the individual member cooperatives
of Purchaser.
“Agreement” means this Asset Purchase and Sale Agreement, together with the
Schedules and Exhibits, as the same may be amended from time to time.
“Approved Capital Expenditures” means all Capital Expenditures approved by Purchaser,
which approval will not be unreasonably withheld, conditioned or delayed and which approval
will, in all events, be deemed given for any individual Capital Expenditure of less than One
Hundred Thousand Dollars ($100,000.00).
“Assigned Contracts” has the meaning set forth in Section2.1(g) (Purchased Assets -
Assigned Contracts).
“Assigned Leases” has the meaning set forth in Section 2.1(f) (Purchased Assets -
Leases, Easements and other Rights).
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