Exhibit 2.1(a)
Amendment No. 1 to Purchase Agreement dated March 6, 1998
---------------------------------------------------------
Amendment No. 1 dated October 14, 1998 ("Amendment No. 1") to
Purchase Agreement dated March 6, 1998 (the "Purchase Agreement") between
Cogentrix Energy, Inc., a North Carolina corporation ("Buyer"), and Bechtel
Generating Company, Inc., a Delaware corporation ("Seller").
WHEREAS, pursuant to the Purchase Agreement, and upon the terms
and subject to the conditions set forth therein, Buyer has agreed to purchase
from Seller, and Seller has agreed to sell to Buyer, Seller's direct and
indirect interests in twelve electric power generation projects and one natural
gas pipeline;
WHEREAS, capitalized terms used, but not defined herein, shall
have the meanings assigned in the Purchase Agreement;
WHEREAS, Buyer and Seller desire to amend the Purchase Agreement
to reflect a change in the structure of the transactions contemplated thereby
such that Buyer will purchase a 20% general partnership interest in Scrubgrass
Generating Company, L.P. ("Scrubgrass") from Seller's indirect subsidiary, Pine
Power Leasing, Inc. ("Pine"), constituting all of Pine's interest in Scrubgrass,
rather than purchase 100% of the stock of Pine from Bechtel Enterprises Leasing,
Inc. as was contemplated by the Purchase Agreement;
WHEREAS, Buyer and Seller desire to further amend the Purchase
Agreement to reflect a change in the structure of the transactions contemplated
thereby such that Buyer will purchase a 10% general partnership interest in
Chambers Cogeneration, L.P. ("Chambers") from Seller's indirect subsidiary,
Maple Power Corporation ("Maple"), constituting all of Maple's interest in
Chambers, rather than purchasing 100% of the stock of Maple from Seller as was
contemplated by the Purchase Agreement;
WHEREAS, Buyer and Seller anticipate that prior to closing the
transactions contemplated by the Purchase Agreement, Beale Generating Company
("Beale") shall be merged with and into J. Makowski Company, Inc. ("JMC") with
JMC being the surviving entity (the "Merger");
WHEREAS, in connection with the Merger, it is anticipated that
JMC will change its name to Beale Generating Company;
WHEREAS, subsequent to the date of the Purchase Agreement, PG&E
Generating Company's interest in Beale has been transferred to USGen Power
Group, LLC; and
WHEREAS, Buyer and Seller desire to amend certain of the
Schedules and Exhibits attached to the Purchase Agreement, including certain of
the Additional Agreements to reflect the foregoing.
NOW THEREFORE, IT IS AGREED:
1. Exhibit 1, Schedules 2.1(a), 2.1(b), 2.2, 2.4, 2.8, 2.13, 5.5,
5.6 and 6.5 to the Purchase Agreement and the following Additional Agreements
are amended and restated in their entirety to read as set forth in Appendix A to
this Amendment No. 1:
a. Put Agreement dated as of the Closing Date between Buyer
and Seller.
b. Consent and Agreement dated as of the Closing Date
between PG&E Generating Company and Buyer.
c. Letter Agreement dated as of the Closing Date regarding
Incentive Bonus Payments between U.S. Generating Company and
Cogentrix Energy, Inc.
d. Stockholders Agreement dated as of the Closing Date, by
and among Beale Generating Company, Cogentrix Eastern America,
Inc. and USGen Power Group, LLC.
e. Amended and Restated Beale Generating Company Tax Sharing
Agreement dated as of the Closing Date between Cogentrix Eastern
America, Inc., Beale Generating Company, Bechtel Generating
Company, Inc. and USGen Power Group, LLC.
2. Except as otherwise provided in this Amendment No. 1, the
Purchase Agreement shall remain in full force and effect.
2
IN WITNESS WHEREOF, the parties hereto have caused this Amendment
No. 1 to be duly executed on the day and year first above written.
BECHTEL GENERATING COMPANY, INC.
By: /s/ V. Paul Unruh
----------------------
Name: V. Paul Unruh
Title: President
COGENTRIX ENERGY, INC.
By: /s/ Dennis W. Alexander
----------------------------
Name: Dennis W. Alexander
Title: Group Senior Vice President
3
EXHIBITS AND SCHEDULES TO PURCHASE AGREEMENT
--------------------------------------------
Exhibit 1 - Acquired Interests
Exhibit 2 - Holdback Partnerships
Exhibit 3 - Pending Transactions
Schedule 2.1(a) - Jurisdictions of Incorporation
Schedule 2.1(b) - Subsidiaries
Schedule 2.2 - Conflicts
Schedule 2.4 - Capital Stock and Partnership Interests
Schedule 2.5 - Financial Statements
Schedule 2.6 - Litigation; Compliance with Law
Schedule 2.7(b) - Tax Matters
Schedule 2.7(c) - Adjustments to Tax Liability
Schedule 2.8 - Material Agreements
Schedule 2.9 - Consents and Approvals
Schedule 2.12 - Labor Matters and ERISA
Schedule 2.13 - Events Subsequent to 1997
Schedule 4.4(B) - Beale Generating Company Tax Sharing Agreement
Schedule 5.4 - Approvals and Filings
Schedule 5.5 - Opinion of Seller's Counsel
Schedule 5.6 - Additional Agreements
Schedule 6.4 - Approvals and Filings
Schedule 6.5 - Opinion of Buyer's Counsel
Schedule 6.6 - Additional Agreements
Schedule 7.3 - Asset Value
Schedule 10.8 - Pending Power Marketing Transactions
Unless otherwise indicated, capitalized terms used in these Schedules have the
meanings set forth in the Purchase Agreement.
Exhibit 1
---------
ACQUIRED INTERESTS
------------------
PERCENTAGE
INTEREST IN
UNRESTRICTED
PROJECT ACQUIRED INTEREST(S) TRANSFEROR TRANSFERRED ENTITY CASH
------- -------------------- ---------- ------------------ -------------
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Logan (1) 49% general partnership interest (1) Aspen Power (1) Logan Generating
in Logan Generating Company, L.P. Corporation Company, L.P. 49%
(2) 49% general partnership interest in (2) Aspen Power (2) Granite Generating
Granite Generating Company, L.P. Corporation Company, L.P.
(3) 49% general partnership interest in (3) Aspen Power (3) Keystone Cogeneration
Keystone Cogeneration Company, L.P. Corporation Company, L.P.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Northampton 49% general partnership interest in Poplar Power Corporation Northampton Generating 49%
Northampton Generating Company, L.P. Company, L.P.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Indiantown 100% of the stock of Palm Power Bechtel Generating Palm Power Corporation 10%
Corporation Company, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Carney's 10% general partnership interest Maple Power Corporation Chambers Cogeneration, L.P. 10%
Point in Chambers Cogeneration, L.P.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Panther 100% of the stock of Panther Bechtel Enterprises Panther Creek Leasing, Inc. 0%
Creek Creek Leasing, Inc. Leasing, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Scrubgrass 20% general partnership interest in Pine Power Leasing, Inc. Scrubgrass Generating 20%
Scrubgrass Generating Company, L.P. Company, L.P.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Cedar Bay 100% of the stock of Cedar Power Bechtel Generating . Cedar Power Corporation 0%
Corporation Company, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Morgantown 100% of the stock of Hickory Power Bechtel Generating Hickory Power Corporation 15%
Corporation Company, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Gilberton 100% of the stock of Birch Power Bechtel Generating Birch Power Corporation 19.555%
Corporation Company, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Selkirk 10.9% of the stock of Beale Bechtel Generating Beale Generating Company 0%
Generating Company Company, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
MASSPOWER 10.9% of the stock of Beale Bechtel Generating Beale Generating Company 3.27%
Generating Company Company, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Pittsfield 10.9% of the stock of Beale Bechtel Generating Beale Generating Company 5.45%
Generating Company Company, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
Iroquois 10.9% of the stock of Beale Bechtel Generating Beale Generating Company .54%
Generating Company Company, Inc.
- ------------ ----------------------------------------- ----------------------- --------------------------- ------------------
SCHEDULE 2.4
------------
CAPITAL STOCK AND PARTNERSHIP INTERESTS*
----------------------------------------
This Schedule modifies Section 2.5 of the Purchase Agreement.
A. CAPITAL STOCK
-------------
- --------------------------------- ------------------------ ------------------ --------------------------------------------
NAME OF CORPORATION NUMBER SHARES
OF SHARES AUTHORIZED/ ISSUED STOCKHOLDER
TRANSFERRED ENTITY PAR VALUE1 AND OF
-SUBSIDIARIES OUTSTANDING RECORD
- --------------------------------- ------------------------ ------------------ --------------------------------------------
Palm Power Corporation 10,000/$1.00 10,000 Bechtel Generating Company
- --------------------------------- ------------------------ ------------------ --------------------------------------------
Beale Generating Company 1,000/$.01 109.2099/ Bechtel Generating Company/USGen Power
890.7901 Group, LLC
--JMC Altresco, Inc. 1,000/$1.00 10 Beale Generating Company
--Altresco, Inc. 600,000/$0.001 JMC Altresco, Inc.
Common Class A
10,000,000/$0.001 100
Common Class B
--Pittsfield Partners, Inc. 10,000,000/$0.001 100 JMC Altresco, Inc.
--Berkshire 1,000/$1.00 100 JMC Altresco, Inc.
Pittsfield, Inc.
-JMC Iroquois, Inc. 1,000/$1.00 10 Beale Generating Company
- --------------------------------- ------------------------ ------------------ --------------------------------------------
-MASSPOWER, Inc. 1,000/$1.00 10 Beale Generating Company
- --------------------------------- ------------------------ ------------------ --------------------------------------------
Orchard Gas Corporation 100,000/$1.00 10 Beale Generating Company
- --------------------------------- ------------------------ ------------------ --------------------------------------------
-JMC Selkirk Holdings Inc. 1,000/$1.00 10 Beale Generating Company
-JMC Selkirk, Inc. 1,000/$1.00 20 JMC Selkirk Holdings, Inc.
-JMCS I Holdings, Inc. 1,000/$1.00 10 JMC Selkirk Holdings, Inc.
- --------------------------------- ------------------------ ------------------ --------------------------------------------
<FN>
- ----------
* Assumes completion of the transactions described in item 3 of Exhibit 3.
1 Unless otherwise indicated, all shares are shares of common stock.
</FN>
- --------------------------------- ------------------------ ------------------ --------------------------------------------
NAME OF CORPORATION NUMBER SHARES
OF SHARES AUTHORIZED/ ISSUED STOCKHOLDER
TRANSFERRED ENTITY PAR VALUE1 AND OF
-SUBSIDIARIES OUTSTANDING RECORD
- --------------------------------- ------------------------ ------------------ --------------------------------------------
Cedar Power Corporation 10,000/$1.00 10,000 Bechtel Generating Company
-Cedar I Power 1,100,000/$0.01 1,100,000 Cedar Power Corporation
Corporation Common Class A
257,737/$0.01 257,737 Paribas North America, Inc. - 12,886
Common Class B Credit Suisse, New York Branch - 8,889
The Fuji Bank Limited - 2,963
KOP - 7,407
Postipankki, Ltd. New York Branch - 2,963
The Sumitomo Trust and Banking Co.
Ltd., New York Branch - 2,963
Connecticut General Life Insurance
Company - 7,407
John Hancock Mutual Life Insurance
Company - 14,815
New York Life Insurance Company - 7,407
The Prudential Insurance Company of
America - 37,037
NPDI, Inc. - 153,000
38,068/$0.01 15,263 Paribas North America, Inc.
Common Class C
137,066/$0.01 121,742 Paribas North America, Inc. - 2,236
Preferred Class A Credit Suisse, New York Branch - 2,236
The Fuji Bank - 1,491
American Scandinavian Banking
Corporation - 2,236
Postipankki, Ltd., New York Branch -
1,491
The Sumitomo Trust and Banking Co. Ltd.
- 1,491
Connecticut General Life Insurance -
3,729
John Hancock Mutual Life Insurance -
7,456
New York Life Insurance Company -
3,729
The Prudential Insurance Company -
18,641
NPDI, Inc. - 77,006
17,634/$0.01 Preferred 15,662 Paribas North America, Inc. - 11,931
Class B Credit Suisse, New York Branch - 2,238
American Scandinavian Banking Corporation
- 1,493
- --------------------------------- ------------------------ ------------------ --------------------------------------------
-Cedar II Power 10/$1.00 10 Cedar I Power Corporation
Corporation
- --------------------------------- ------------------------ ------------------ --------------------------------------------
Hickory Power Corporation 10,000/$1.00 10,000 Bechtel Generating Company
- --------------------------------- ------------------------ ------------------ --------------------------------------------
Birch Power Corporation 100,000/$1.00 10,000 Bechtel Generating Company
- --------------------------------- ------------------------ ------------------ --------------------------------------------
Panther Creek Leasing, Inc. 10,000/$1.00 10,000 Bechtel Enterprises Leasing, Inc.
- --------------------------------- ------------------------ ------------------ --------------------------------------------
-Granite Water Supply 100/$1.00 100 Granite Generating Company, L.P.
Company, Inc.
(subsidiary of Granite
Generating Company, L.P.)
- --------------------------------- ------------------------ ------------------ --------------------------------------------
-Northampton Fuel Supply 1,000/$1.00 1,000 Northampton Generating Company, L.P.
Company, Inc.
(subsidiary of Northampton
Generating Company, L.P.)
- --------------------------------- ------------------------ ------------------ --------------------------------------------
-Northampton Water Supply, 1,000/$1.00 1,000 Northampton Generating Company, L.P.
Inc.
(subsidiary of Northampton
Generating Company, L.P.)
- --------------------------------- ------------------------ ------------------ --------------------------------------------
B. PARTNERSHIP INTERESTS
---------------------
- ----------------------------- ---------------------------------------------- ---------------------------------
NAME OF PARTNERSHIP PARTNERSHIP AGREEMENT PARTNERS
- ----------------------------- ---------------------------------------------- ---------------------------------
- ----------------------------- ---------------------------------------------- ---------------------------------
Logan Generating Company, Third Amended and Restated Agreement of Aspen Power Corporation and
L.P. Limited Partnership of Logan Generating Eagle Power Corporation
Company, L.P., by and between
Aspen Power Corporation and Eagle Power
Corporation dated as of December 30, 1994.
- ----------------------------- ---------------------------------------------- ---------------------------------
- ----------------------------- ---------------------------------------------- ---------------------------------
Granite Generating Company, Third Amended and Restated Agreement of Aspen Power Corporation and
L.P. Limited Partnership of Granite Generating Eagle Power Corporation
Company, L.P., by and between
Aspen Power Corporation and Eagle Power
Corporation dated as of December 30, 1994.
- ----------------------------- ---------------------------------------------- ---------------------------------
- ----------------------------- ---------------------------------------------- ---------------------------------
Keystone Cogeneration Third Amended and Restated Agreement of Aspen Power Corporation and
Company, L.P. Limited Partnership of Keystone Cogeneration Eagle Power Corporation
Company, L.P., by and between Aspen
Power Corporation and Eagle Power
Corporation dated as of December 30, 1994.
- ----------------------------- ---------------------------------------------- ---------------------------------
- ----------------------------- ---------------------------------------------- ---------------------------------
Northampton Generating Second Amended and Restated Agreement of Jaeger Power Corporation and
Company, L.P. Limited Partnership of Northampton Poplar Power Corporation
Generating Company, L.P., by and between
Jaeger Power Corporation and Poplar Power
Corporation, dated as of May 24, 1995.
- ----------------------------- ---------------------------------------------- ---------------------------------
- ----------------------------- ---------------------------------------------- ---------------------------------
Chambers Cogeneration, L.P. Second Amended and Restated Limited Maple Power Corporation,
Partnership Agreement of Chambers Peregrine Power Corporation
Cogeneration, L.P. by and among Maple and TIFD III-T Inc.
Power Corporation, Peregrine Power
Corporation and TIFD III-T Inc.,
dated April 1, 1991.
- ----------------------------- ---------------------------------------------- ---------------------------------
- ----------------------------- ---------------------------------------------- ---------------------------------
Scrubgrass Generating First Amended and Restated Limited Scrubgrass Power Corporation,
Company, L. P. Partnership Agreement of Scrubgrass Pine Power Leasing, Inc. and
Generating Company, L.P. by and among Falcon DCC Project Finance Four, Inc.
Power Corporation, Pine Power Corporation,
Scrubgrass Power Corporation and DCC Project
Finance Four, Inc. dated as of January 14,
1993
- ----------------------------- ---------------------------------------------- ---------------------------------
<FN>
- ----------
Voting trusts or agreements, stockholders' agreements, pledge agreements, buy-sell agreements, rights of first refusal, preemptive
rights or proxies relating to securities of any Transferred Entity which is wholly-owned, directly or indirectly, by Seller or to
any securities of any Subsidiary of any such Transferred Entity, or to which any such Transferred Entity or Subsidiary is a party;
or, with respect to Transferred Entities which are not wholly-owned, directly or indirectly, by Seller, creation by Seller or any
Subsidiary thereof, or to Seller's knowledge the existence of, any such voting trust, agreement, right or proxy:
(i) The stock of Birch Power Corporation is pledged to Mellon Bank, N.A. by Bechtel Development Company.
(ii) Birch Limited Partnership has pledged its interest in Gilberton Power Company to Birch Power Corporation.
(iii) Voting Rights Agreement dated as of August 26, 1997 between PG&E Generating company and BGCI.
(iv) The Fuel Equity Contribution Agreement and the Debt Service Equity Contribution Agreement (as each is defined in
Schedule 2.2) impose certain restrictions on Poplar's interest in Northampton Generating Company, L.P.
</FN>