Exhibit
2.1
CONTRIBUTION
AGREEMENT
BY AND
AMONG
EL PASO
CORPORATION
EL PASO
NORIC INVESTMENTS III, L.L.C.
COLORADO
INTERSTATE GAS COMPANY
EPPP CIG GP
HOLDINGS, L.L.C.
EL PASO
PIPELINE PARTNERS, L.P.
AND
EL PASO
PIPELINE PARTNERS OPERATING COMPANY, L.L.C.
July 24,
2009
TABLE OF
CONTENTS
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Page
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ARTICLE 1 DEFINITIONS
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1
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1.1
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Definitions
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1
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1.2
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Construction
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8
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ARTICLE 2 CONTRIBUTION AND
CLOSING
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8
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2.1
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Contribution
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8
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2.2
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Consideration
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8
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2.3
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Closing and
Closing Deliveries
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9
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2.4
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Consideration
Adjustment
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10
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ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE
CONTRIBUTING PARTIES
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10
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3.1
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Organization
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10
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3.2
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Authority and
Approval
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10
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3.3
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No Conflict;
Consents
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11
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3.4
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Capitalization;
Title to Subject Interest
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12
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3.5
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Financial
Statements; Internal Controls; Undisclosed
Liabilities
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12
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3.6
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Title to
Assets
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13
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3.7
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Litigation;
Laws and Regulations
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13
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3.8
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No Adverse
Changes
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14
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3.9
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Taxes
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14
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3.10
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Environmental
Matters
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15
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3.11
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Licenses;
Permits
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15
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3.12
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Contracts
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16
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3.13
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Employees and
Employee Benefits
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16
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3.14
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Transactions
with Affiliates
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18
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3.15
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Regulation
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18
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3.16
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Brokerage
Arrangements
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18
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3.17
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Waivers and
Disclaimers
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18
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3.18
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SEC
Reports
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19
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ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE
PARTNERSHIP PARTIES
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20
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4.1
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Organization
and Existence
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20
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4.2
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Authority and
Approval
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20
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4.3
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No Conflict;
Consents
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21
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4.4
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Brokerage
Arrangements
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21
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4.5
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Litigation
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22
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4.6
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Waivers and
Disclaimers
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22
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ARTICLE 5 ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND
OBLIGATIONS
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23
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5.1
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Operation of
CIG
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23
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5.2
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Supplemental
Disclosure
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23
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5.3
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Access to Books
and Records
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23
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5.4
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Cooperation;
Further Assurances
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23
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5.5
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Admission of
Partnership as Partner
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24
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5.6
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Cash Pooling
Transactions
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24
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5.7
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Growth Capital;
Debt Balance
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25
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5.8
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Reimbursement
Obligation
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25
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ARTICLE 6 CONDITIONS TO CLOSING
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25
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6.1
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Conditions to
the Obligation of the Partnership Parties
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25
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6.2
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Conditions to
the Obligation of the Contributing Parties
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26
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ARTICLE 7 TAX MATTERS
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27
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7.1
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Liability for
Taxes
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27
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7.2
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Tax
Returns
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28
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7.3
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Tax Treatment
of Indemnity Payments
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29
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7.4
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Transfer
Taxes
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29
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7.5
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Survival
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29
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7.6
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Conflict
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29
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ARTICLE 8 TERMINATION
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30
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8.1
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Events of
Termination
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30
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8.2
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Effect of
Termination
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30
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ARTICLE 9 INDEMNIFICATION UPON
CLOSING
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31
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9.1
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Indemnification
of the Partnership Parties
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31
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9.2
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Indemnification
of the Contributing Parties and CIG
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31
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9.3
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Tax
Indemnification
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31
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9.4
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Survival
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32
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9.5
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Demands
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32
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9.6
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Right to
Contest and Defend
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33
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9.7
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Cooperation
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33
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9.8
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Right to
Participate
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34
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9.9
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Payment of
Damages
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34
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9.10
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Limitations on
Indemnification
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34
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9.11
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Sole
Remedy
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35
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ARTICLE 10 MISCELLANEOUS
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35
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10.1
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Expenses
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35
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10.2
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Notices
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36
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10.3
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Governing
Law
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36
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10.4
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Public
Statements
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37
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10.5
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Entire
Agreement; Amendments and Waivers
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37
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10.6
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Conflicting
Provisions
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37
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10.7
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Binding Effect
and Assignment
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37
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10.8
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Severability
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38
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10.9
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Interpretation
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38
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10.10
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Headings and
Disclosure Schedules
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38
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10.11
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Multiple
Counterparts
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38
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10.12
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Action by
Partnership Parties
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38
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10.13
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Limitation on
Recourse
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39
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Exhibit A
Form
of Contribution, Conveyance and Assumption Agreement
CONTRIBUTION
AGREEMENT
This
Contribution Agreement (the “ Agreement ”) is
made and entered into as of July 24, 2009, by and among
El Paso Corporation, a Delaware corporation (“
El Paso ”), El Paso Noric Investments III,
L.L.C., a Delaware limited liability company and indirect
wholly-owned subsidiary of El Paso (“
EP Noric ”), Colorado Interstate Gas Company,
a Delaware general partnership, (“ CIG ”),
El Paso Pipeline Partners, L.P., a Delaware limited
partnership (the “ Partnership ”), El Paso
Pipeline Partners Operating Company, L.L.C., a Delaware limited
liability company and direct wholly-owned subsidiary of the
Partnership (the “Operating Company” ) and EPPP
CIG GP Holdings, L.L.C., a Delaware limited liability company
and an indirect wholly-owned subsidiary of the Partnership (“
EPPP CIG ”). El Paso and EP Noric
are referred to herein collectively as the “ Contributing
Parties ,” the Partnership, the Operating Company and
EPPP CIG are referred to herein collectively as the “
Partnership Parties ” and the Contributing Parties,
Partnership Parties and CIG are referred to herein collectively as
the “ Parties .”
R
E
C I T A L S
:
WHEREAS,
EP Noric owns a 60% general partner interest in CIG and EPPP
CIG owns a 40% general partner interest in CIG; and
WHEREAS,
pursuant to the Contribution Agreement (defined below), the
Contributing Parties desire to contribute, transfer and convey to
the Partnership a 18% general partner interest in CIG (the “
Subject Interest ”) in exchange for total cash
consideration of $214.5 million (the “ Consideration
”); and
WHEREAS, after
giving effect to the completion of the contribution of the Subject
Interest referred to above pursuant to the terms of this Agreement
and the Contribution Agreement, EP Noric and EPPP CIG
will own a 42% and 58% general partner interest in CIG,
respectively;
NOW, THEREFORE,
in consideration of the premises and the respective
representations, warranties, covenants, agreements and conditions
contained herein, the Parties agree as follows:
ARTICLE 1
DEFINITIONS
The terms
defined in this Section 1.1
shall, when used in this Agreement,
have the respective meanings specified herein, with each such
definition equally applicable to both singular and plural forms of
the terms so defined:
“
Additional Distribution Amount ” means 18% of any cash
distributions made by CIG with respect to its operations after the
Effective Time and prior to Closing. For avoidance of
doubt, the distributions made by CIG on April 30, 2009 with respect
to its operations for the first quarter of 2009 are not to be given
effect in the calculation of any Additional Distribution Amount. In
addition, in the event that Closing occurs on July 30, 2009 and on
such day (but after the Closing), EPPP CIG receives 58% of the cash
distributions made by CIG on July 30, 2009 with respect to
CIG’s operations for the second quarter 2009, such cash
distributions for the second quarter are not to be given effect in
the calculation of any Additional Distribution Amount.
“
Affiliate ,” when used with respect to a Person, means
any other Person that directly or indirectly Controls, is
Controlled by or is under common Control with such first
Person.
“
Agreement ” has the meaning assigned to such term in
the preamble.
“
Ancillary Documents ” means the Contributing Parties
Ancillary Documents and the Partnership Ancillary
Documents.
“
Applicable Law ” has the meaning assigned to such term
in Section 3.3
.
“
Associated Employees” has the meaning assigned to such
term in Section 3.13
.
“
Business Day ” means any day other than a Saturday,
Sunday or legal holiday on which banks in Houston, Texas are
authorized or obligated by law to close.
“
Cancellation Agreement ” means the cancellation
agreement in substantially the form attached as
Exhibit C hereto.
“
Cash Pooling Arrangements ” means the cash pooling
arrangement among El Paso and its Affiliates, pursuant to which El
Paso and its Affiliates receive substantially all cash due to (and
make substantially all payments for) certain of its Affiliates,
including CIG, which amounts are reflected as intercompany
receivables or payables or as capital contributions and
distributions in accordance with GAAP.
“
Cash Pooling Transactions ” has the meaning assigned
to such term in Section 5.6
.
“
Ceiling Amount ” has the meaning assigned to such term
in Section 9.10
.
“
CERCLA ” means the Comprehensive Environmental
Response, Compensation, and Liability Act.
“
CIG ” has the meaning assigned to such term in the
preamble.
“
CIG 10-K ” has the meaning assigned to such term in
Section 3.5
.
“CIG
Entities” means
(i) CIG, (ii) any subsidiary of CIG and (iii) any Person in which
CIG or any subsidiary of CIG owns an equity interest constituting
50% or more of the outstanding voting interests of such
Person.
“
Closing ” has the meaning assigned to such term in
Section 2.1
.
“
Closing Date ” has the meaning assigned to such term
in Section 2.3
.
“
Code ” means the Internal Revenue Code of 1986, as
amended, and the rules and regulations issued
thereunder.
“
Conflicts Committee ” has the meaning assigned to such
term in the Partnership Agreement.
“
Consideration ” has the meaning assigned to such term
in the Recitals.
“
Contributing Indemnified Parties ” has the meaning
assigned to such term in Section 9.2
.
“
Contributing Parties ” has the meaning assigned to
such term in the preamble.
“
Contributing Parties Aggregated Group ”
has the meaning assigned to such term in Section
3.13(e)
.
“
Contributing Parties Ancillary Documents ” means each
agreement, document or certificate to be delivered by the
Contributing Parties or CIG at Closing pursuant to
Section 2.3(b)
, including the Contribution
Agreement.
“
Contributing Parties Closing Certificate ” has the
meaning assigned to such term in Section
6.1
.
“
Contribution Agreement ” has the meaning assigned to
such term in Section 2.1
.
“
Control ,” and its derivatives, mean the possession,
directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person.
“
Damages ” means liabilities and obligations, including
all losses, deficiencies, costs, expenses, fines, interest,
expenditures, claims, suits, proceedings, judgments, damages, and
reasonable attorneys’ fees and reasonable expenses of
investigating, defending and prosecuting litigation.
“
Debt Amount ” means, with respect to the relevant
Person, determined in accordance with GAAP, the sum of such
Person’s liabilities for indebtedness for borrowed money,
capital leases and other transactions reflected on a balance sheet
prepared in accordance with GAAP as financing transactions, in each
case whether classified as a current or a non-current liability,
excluding debt reflected on the CIG balance sheet related to the
WYCO High Plains Pipeline and Totem Storage projects.
“
Deductible Amount ” has the meaning assigned to such
term in Section 9.10
.
“
Demand Note ” means the demand note in substantially
the form attached as Exhibit B hereto.
“
Disclosure Schedules ” means the disclosure schedules
to this Agreement.
“
Effective Time ” means 12:01 a.m., Houston, Texas
time, on April 1, 2009.
“
El Paso ” has the meaning assigned to such term
in the preamble.
“
Environmental Laws ” means any federal, state or local
statutes, laws, ordinances, rules, regulations, orders, codes,
decisions, injunctions or decrees that regulate or otherwise
pertain to the protection of the environment, including the
management, control, discharge, emission, treatment, containment,
handling, removal, use, generation, permitting, migration, storage,
release, transportation, disposal, remediation, manufacture,
processing or distribution of Hazardous Materials that are or may
present a threat to the environment, including the following laws,
as amended as of the Effective Time and interpreted by the highest
court of competent jurisdiction through the Effective
Time: (i) the Resource Conservation and Recovery Act;
(ii) the Clean Air Act; (iii) CERCLA; (iv) the Federal Water
Pollution Control Act; (v) the Safe Drinking Water Act; (vi) the
Toxic Substances Control Act; (vii) the Emergency Planning and
Community Right-to Know Act; (viii) the National Environmental
Policy Act; (ix) the Pollution Prevention Act of 1990; (x) the Oil
Pollution Act of 1990; (xi) the Hazardous Materials Transportation
Act and (xii) all rules, regulations, orders, judgments, decrees
promulgated or issued with respect to the foregoing Environmental
Laws by Governmental Authorities with jurisdiction in the
premises. The term “Environmental Laws” does
not include operating practices or standards that may be employed
or adopted by other industry participants or recommended by a
Governmental Authority that are not required by such federal, state
or local statutes, laws, ordinances, rules, regulations, orders,
codes, decisions, injunctions or decrees.
“
Environmental Permits ” has the meaning
assigned to such term in Section 3.10
.
“
EP Noric ” has the meaning assigned to such term in
the preamble.
“
EPPP CIG ” has the meaning assigned to such term in
the preamble.
“
ERISA ” has the meaning ascribed to such term in
Section 3.13(b)
.
“
Exchange Act ” means the Securities Exchange Act of
1934, as amended.
“
Existing CIG Partnership Agreement ” means the General
Partnership Agreement, dated November 1, 2007, as amended by
Amendment No. 1, dated September 30, 2008, of CIG.
“
FERC ” means the Federal Energy Regulatory
Commission.
“
Financial Statements ” has the meaning assigned to
such term in Section 3.5
.
“
GAAP ” means generally accepted accounting principles
in the United States of America.
“
General Partner ” means the general partner of the
Partnership, which as of the Effective Time and the date of this
Agreement is El Paso Pipeline GP Company, L.L.C.
“
Governmental Authority ” means any federal, state,
municipal or other governmental court, department, commission,
board, bureau, agency or instrumentality.
“
Growth Capital Requirements ” means cash expenditures
for expansion and other capital improvements other than maintenance
expenditures and expenditures for facility repairs
associated with hurricane damage and maintenance recorded in the
financial statements of CIG as capital expenditures in accordance
with GAAP.
“
Hazardous Materials ” means any substance, whether
solid, liquid, or gaseous: (i) which is listed,
defined, or regulated as a “hazardous material,”
“hazardous waste,” “solid waste,”
“hazardous substance,” “toxic substance,”
“pollutant,” or “contaminant,” or otherwise
classified or regulated or subject to liability in or pursuant to
any Environmental Law; or (ii) which is or contains asbestos,
polychlorinated biphenyls, radon, urea formaldehyde foam
insulation, explosives, or radioactive materials; or
(iii) which causes or threatens to cause contamination,
nuisance with respect to any properties, or a hazard to the
environment or to the health or safety of persons on or about any
properties.
“
Indemnity Claim ” has the meaning assigned to such
term in Section 9.5
.
“
Knowledge ,” as used in this Agreement with respect to
a Party, means the actual knowledge of that Party’s
designated personnel. The designated personnel for the
Contributing Parties are James Yardley, James Cleary, J.R. Sult,
Katherine Murray, and Thomas Hutchins. The designated
personnel for the Partnership Parties are James Yardley, James
Cleary, J.R. Sult, Katherine Murray, and Thomas
Hutchins.
“
Lien ” means any mortgage, deed of trust, lien,
security interest, pledge, conditional sales contract, charge,
right of first refusal, drag-along or tag-along right or other
encumbrance.
“
Material Adverse Effect ” means any change, effect,
event, occurrence, condition or other circumstance that (a)
materially and adversely affects the business, assets, liabilities,
properties, financial condition or results of operations of CIG or
the Subject Interest, other than any such change, effect, event,
occurrence, condition or other circumstance affecting (i) the
interstate natural gas transportation industry generally (including
any change in the prices of natural gas, natural gas liquids or
other hydrocarbon products, industry margins or any regulatory
changes or changes in Applicable Law), (ii) the United States or
global general market, economic, financial or political conditions
or (iii) the transactions contemplated in this Agreement, provided
that in the case of clauses (i) and (ii) the impact on CIG is not
materially disproportionate to the impact on other large interstate
natural gas pipeline companies, or (b) hinders, delays or impedes
the ability of any Contributing Party or CIG to perform its
obligations under the Agreement or the Contributing Parties
Ancillary Documents or to consummate the transactions contemplated
by this Agreement or the Contributing Parties Ancillary
Documents.
“
Material Contract ” has the meaning assigned to such
term in Section 3.12(b)
.
“
NGA ” has the meaning assigned to such term in
Section 3.15(b)
.
“
Notice ” has the meaning assigned to such term in
Section 10.2
.
“Operating
Company” has
the meaning assigned to such term in the preamble.
“
Ownership Percentage ” means with respect to
(i) Partnership Parties, 40.0%, and (ii) Contributing
Parties, 60.0%.
“
Parties ” has the meaning assigned to such term in the
preamble.
“
Partnership ” has the meaning assigned to such term in
the preamble.
“
Partnership Agreement ” means the First Amended and
Restated Agreement of Limited Partnership of the Partnership, dated
November 21, 2007, as amended by Amendment No. 1 dated July 28,
2008.
“
Partnership Ancillary Documents ” means each
agreement, document or certificate to be delivered by the Buyer
Parties at Closing pursuant to Section
2.3(c)
, including the Contribution
Agreement.
“
Partnership Indemnified Parties ” has the meaning
assigned to such term in Section 9.1
.
“
Partnership Material Adverse Effect ” means any
change, effect, event, occurrence, condition or other circumstance
that (a) materially and adversely affects the business, assets,
liabilities, properties, financial condition or results of
operations of any Partnership Party, other than any such change,
effect, event, occurrence, condition or other circumstance
affecting (i) the interstate natural gas transportation industry
generally (including any change in the prices of natural gas,
natural gas liquids or other hydrocarbon products, industry margins
or any regulatory changes or changes in Applicable Law), (ii) the
United States or global general market, economic, financial or
political conditions or (iii) the transactions contemplated in this
Agreement, provided that in the case of clauses (i) and (ii)
the impact on the Partnership Parties is not materially
disproportionate to the impact on other large interstate natural
gas pipeline companies, or (b) hinders, delays or impedes the
ability of any Partnership Party to perform its obligations under
this Agreement or the Partnership Ancillary Documents or to
consummate the transactions contemplated by this Agreement or any
Partnership Ancillary Document.
“
Partnership Parties ” has the meaning assigned to such
term in the preamble.
“
Partnership Parties Closing Certificate ” has the
meaning assigned to such term in Section
6.2
.
“Permits
”
has the meaning assigned to such term in
Section 3.11
.
“
Permitted Liens ” means all: (i) to the extent no
amounts secured thereby are past due or are being contested in good
faith by appropriate proceedings and as to which adequate reserves,
if any, have been established, mechanics’,
materialmen’s, carriers’, workmen’s,
repairmen’s, vendors’, operators’ or other like
Liens entered into in the ordinary course of business consistent
with past practices, if any, that do not materially detract from
the value of or materially interfere with the use of any of
CIG’s assets subject thereto; (ii) to the extent no amounts
secured thereby are past due or are being contested in good faith
by appropriate proceedings, Liens arising under original purchase
price conditional sales contracts and equipment leases with third
parties entered into in the ordinary course of business consistent
with past practices; (iii) title defects, rights of use,
rights-of-way, permits, licenses, servitudes, sub-surface leases,
grazing rights, logging rights, and easements (including the right
to operate and maintain ponds, lakes, waterways, canals, ditches,
reservoirs, equipment, pipelines, utility lines, railways, streets,
roads and structures on, over or through any of CIG’s
assets), if any, that, individually or in the aggregate, do not or
would not impair in any material respect the use or occupancy of
CIG’s assets, taken as a whole, (iv) Liens for Taxes that are
not due and payable, that may thereafter be paid without penalty or
are being contested in good faith by appropriate proceedings and as
to which adequate reserves, if any, have been established; and (v)
liens supporting surety bonds, performance bonds and similar
obligations issued in connection with CIG’s
businesses.
“
Person ” means an individual or entity, including any
partnership, corporation, association, trust, limited liability
company, joint venture, unincorporated organization or Governmental
Authority.
“
Plans ” has the meaning assigned to such term in
Section 3.13
.
“
Reimbursement Obligation ” has the meaning assigned to
such term in Section 5.8.
“
SEC ” means the Securities and Exchange
Commission.
“
SEC Contract ” has the meaning assigned to such term
in Section 3.12(a)
.
“
SEC Reports ” has the meaning assigned to such term in
Section 3.18
.
“
Subject Interest ” has the meaning assigned to such
term in the Recitals.
“
Tax ” means all taxes, however denominated, including
any interest, penalties or other additions to tax that may become
payable in respect thereof, imposed by any federal, state, local or
foreign government or any agency or political subdivision of any
such government, which taxes shall include, without limiting the
generality of the foregoing, all income or profits taxes
(including, but not limited to, federal income taxes and state
income taxes), gross receipts taxes, net proceeds taxes,
alternative or add-on minimum, sales taxes, use taxes, real
property gains or transfer taxes, ad valorem taxes, property taxes,
value-added taxes, franchise taxes, production taxes, severance
taxes, windfall profit taxes, withholding taxes, payroll taxes,
employment taxes, excise taxes and other obligations of the same or
similar nature to any of the foregoing.
“
Tax Items ” has the meaning assigned to such term in
Section 7.2
.
“
Tax Losses ” has the meaning assigned to such term in
Section 7.1
.
“
Tax Return ” means all reports, estimates,
declarations of estimated Tax, information statements and returns
relating to, or required to be filed in connection with, any Taxes,
including information returns or reports with respect to backup
withholding and other payments to third parties.
“
Taxing Authority ” means, with respect to any Tax, the
governmental body, entity or political subdivision thereof that
imposes such Tax, and the agency (if any) charged with the
collection of such Tax for such entity or subdivision, including
any governmental or quasi-governmental entity or agency that
imposes, or is charged with collecting, social security or similar
charges or premiums.
“Transfer
Taxes” has
the meaning assigned to such term in Section
7.4
.
“
WYCO ” means the WYCO Development LLC, a Colorado
limited liability company that is a joint venture between CIG and
an affiliate of Xcel Energy Inc. in which CIG owns a 50% ownership
interest in WYCO and operates certain of WYCO’s
assets.
In
construing and interpreting this Agreement: (a) the word
“includes” and its derivatives means “includes,
without limitation” and corresponding derivative expressions;
(b) the currency amounts referred to herein, unless otherwise
specified, are in United States dollars; (c) whenever this
Agreement refers to a number of days, such number shall refer to
calendar days unless Business Days are specified; (d) unless
otherwise specified, all references in this Agreement to
“Article,” “Section,” “Disclosure
Schedule,” “Exhibit,” “preamble” or
“recitals” shall be references to an Article, Section,
Disclosure Schedule, Exhibit, preamble or recitals hereto;
(e) whenever the context requires, the words used in this
Agreement shall include the masculine, feminine and neuter, as well
as the singular and the plural; (f) references to a Party include
its permitted successors and assigns; and (g) except as otherwise
expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect
from time to time.
ARTICLE 2
CONTRIBUTION
AND CLOSING
At
the closing of the transactions contemplated hereby (the “
Closing ”), the Contributing Parties shall contribute
the Subject Interest to the Partnership, as more specifically set
forth in that certain Contribution, Conveyance and Assumption
Agreement to be entered into by and among the Parties at the
Closing (the “ Contribution Agreement ”) in
substantially the form attached as Exhibit A
hereto.
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(a)
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The
Consideration shall consist of $214.5 million in immediately
available funds, provided that the $214.5 million shall be
subject to adjustment pursuant to Section
2.4 .
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(b)
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The
Consideration shall be paid by the Partnership at the Closing by
wire or interbank transfer of immediately available funds to the
account(s) specified by the Contributing Parties.
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2.3
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Closing
and Closing Deliveries
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(a)
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The
closing of the contribution of the Subject Interest pursuant to
this Agreement and the Contribution Agreement will be held at the
offices of El Paso Corporation, 1001 Louisiana Street,
30 th
Floor,
Houston, Texas 77002 on or before the second Business Day following
satisfaction or waiver of the conditions to Closing set forth in
Article 6 , commencing at 9:00 a.m., Houston, Texas time, or
such other place, date and time as may be mutually agreed upon by
the Parties. The “ Closing Date ,” as
referred to herein, shall mean the date of the Closing.
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(b)
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At
the Closing, the Contributing Parties shall deliver, or cause to be
delivered, to the Partnership Parties the following:
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(i)
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A
counterpart of the Contribution Agreement, duly executed by each
Contributing Party that is a party thereto;
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(ii)
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The
Contributing Parties Closing Certificate, duly executed by, or on
behalf of, each of the Contributing Parties;
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(iii)
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A
certificate of good standing of recent date of CIG;
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(iv)
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A
counterpart of the second amendment to the Existing CIG Partnership
Agreement, duly executed by each Contributing Party that is a party
thereto;
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(v)
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A
counterpart of the Cancellation Agreement, duly executed by El Paso
and CIG;
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(vi)
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The
Demand Note, duly executed by El Paso and CIG; and
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(vii)
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Such
other certificates, instruments of conveyance and documents as may
be reasonably requested by the Partnership Parties prior to the
Closing Date to carry out the intent and purposes of this
Agreement.
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(c)
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At
the Closing, the Partnership Parties shall deliver, or cause to be
delivered, to the Contributing Parties the following:
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(i)
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A
counterpart of the Contribution Agreement, duly executed by each
Partnership Party;
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(ii)
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The
Consideration as provided in Section
2.2(a)
;
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(iii)
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The
Partnership Parties Closing Certificate, duly executed by, or on
behalf of, each of the Partnership Parties;
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(iv)
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A
counterpart of the second amendment to the Existing CIG Partnership
Agreement, duly executed by each Partnership Party that is a party
thereto; and
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(v)
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Such
other certificates, instruments of conveyance and documents as may
be reasonably requested by the Contributing Parties prior to the
Closing Date to carry out the intent and purposes of this
Agreement.
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. The
Consideration shall be adjusted downward by the Additional
Distribution Amount.
ARTICLE 3
REPRESENTATIONS
AND WARRANTIES
OF
THE CONTRIBUTING PARTIES
The
Contributing Parties hereby jointly represent and warrant to the
Partnership Parties as follows:
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(a)
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El Paso
is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all
requisite corporate power and authority to own, operate and lease
its properties and assets and to carry on its business as now
conducted. EP Noric is a limited liability company
duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all requisite limited
liability company power and authority to own, operate and lease its
properties and assets and to carry on its business as now
conducted.
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(b)
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Each
CIG Entity is duly organized or formed, as applicable, and validly
existing under the laws of the state of its organization or
formation, as applicable, and has all requisite corporate,
partnership or limited liability power and authority, as
applicable, to own, operate and lease its properties and assets and
to carry on its business as now conducted. Each CIG
Entity is duly licensed or qualified to do business in the states
in which the character of the properties and assets owned or held
by it or the nature of the business conducted by it requires it to
be so licensed or qualified, except where the failure to be so
licensed or qualified would not, individually or in the aggregate,
have a Material Adverse Effect.
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(a)
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Each
of the Contributing Parties has full corporate or limited liability
company power and authority to execute and deliver this Agreement,
to consummate the transactions contemplated hereby and to perform
all of the terms and conditions hereof to be performed by
it. The execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby and the
performance of all of the terms and conditions hereof to be
performed by the Contributing Parties have been duly authorized and
approved by all requisite corporate or limited liability company
action of each of the Contributing Parties. This
Agreement has been duly executed and delivered by each of the
Contributing Parties and constitutes the valid and legally binding
obligation of each of them, enforceable against each of the
Contributing Parties in accordance with its terms, except as such
enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar
laws affecting the enforcement of creditors’ rights and
remedies generally and by general principles of equity (whether
applied in a proceeding at law or in equity).
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(b)
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Each
of the Contributing Parties has full corporate or limited liability
company power and authority to execute and deliver each
Contributing Party Ancillary Document to which it is a party, to
consummate the transactions contemplated thereby and to perform all
of the terms and conditions thereof to be performed by
it. The execution and delivery of each of the
Contributing Party Ancillary Documents, the consummation of the
transactions contemplated thereby and the performance of all of the
terms and conditions thereof to be performed by each of the
Contributing Parties which is a party thereto have been duly
authorized and approved by all requisite corporate or limited
liability company action of each such party. When
executed and delivered by each of the parties party thereto, each
Contributing Party Ancillary Document will constitute a valid and
legally binding obligation of each of the Contributing Parties that
is a party thereto enforceable against each such party in
accordance with its terms, except as such enforcement may be
limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting
the enforcement of creditors’ rights and remedies generally
and by general principles of equity (whether applied in a
proceeding at law or in equity).
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Except
as set forth on Disclosure Schedule
3.3 :
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(a)
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the
execution, delivery and performance of this Agreement by any of the
Contributing Parties or the execution, delivery and performance by
any of the Contributing Parties of any of the Contributing
Parties’ Ancillary Documents will not, and the fulfillment
and compliance with the terms and conditions hereof and thereof and
the consummation of the transactions contemplated hereby and
thereby will not, (i) violate, conflict with any of, result in
any breach of, or require the consent of any Person under, the
terms, conditions or provisions of the certificate of
incorporation, certificate of formation, limited liability company
agreement, bylaws or equivalent governing instruments of any
Contributing Party or any CIG Entity, (ii) conflict with or
violate any provision of any law or administrative rule or
regulation or any judicial, administrative or arbitration order,
award, judgment, writ, injunction or decree applicable to any of
the Subject Interests, Contributing Parties, CIG Entities or the
CIG Entities’ assets or business (“ Applicable
Law ”); (iii) conflict with, result in a breach of,
constitute a default under (whether with notice or the lapse of
time or both), or accelerate or permit the acceleration of the
performance required by, or require any consent, authorization or
approval under, or result in the suspension, termination or
cancellation of, or in a right of suspension, termination or
cancellation of, any indenture, mortgage, agreement, contract,
commitment, license, concession, permit, lease, joint venture or
other agreement or instrument to which any of the Contributing
Parties or CIG Entities is a party or by which it or any of its
assets are bound; or (iv) result in the creation of any Lien
(other than Permitted Liens) on the Subject Interests or any CIG
Party’s assets, except in the case of clauses (ii) or
(iii) for those items which, individually or in the
aggregate, would not have a Material Adverse Effect; and
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(b)
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no
consent, approval, license, permit, order or authorization of any
Governmental Authority or other Person is required to be obtained
or made by any of the Contributing Parties or the CIG Entities in
connection with the execution, delivery, and performance of this
Agreement and the Contributing Parties’ Ancillary Documents
or the consummation of the transactions contemplated hereby or
thereby, except (i) as have been waived or obtained or with
respect to which the time for asserting such right has expired or
(ii) for those that individually or in the aggregate, would
not have a Material Adverse Effect (including such consents,
approvals, orders or Permits that are not customarily obtained
prior to the Closing) and are reasonably expected to be obtained in
the ordinary course of business consistent with past practice
following the Closing.
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3.4
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Capitalization;
Title to Subject Interest
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(a)
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EP Noric
owns beneficially and of record the Subject Interest free and clear
of all Liens (other than those arising pursuant to the terms of the
Existing CIG Partnership Agreement and restrictions on transfer
under applicable federal and state securities laws). The Subject
Interest is not subject to any agreements or understandings with
respect to the voting or transfer of the Subject Interest (except
the contribution of the Subject Interest contemplated by this
Agreement and the Contribution Agreement, as may be contained in
the Existing CIG Partnership Agreement and restrictions on transfer
under applicable federal and state securities laws). The
Subject Interest has been duly authorized and is validly issued and
fully paid (to the extent required under the Existing CIG
Partnership Agreement).
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(b)
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There
are no outstanding subscriptions, options, warrants, preemptive
rights, preferential purchase rights, rights of first refusal or
any similar rights issued or granted by, or binding upon, CIG or
any of the Contributing Parties to purchase or otherwise acquire or
to sell or otherwise dispose of any security of or equity interest
in CIG, except the contribution of the Subject Interest as
contemplated by this Agreement and the Contribution Agreement and
as may be contained in the Existing CIG Partnership
Agreement.
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3.5
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Financial
Statements; Internal Controls; Undisclosed
Liabilities
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(a)
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The
Annual Report on Form 10-K for the year ended December 31,
2008 filed by CIG (the “ CIG 10-K ”)
with the SEC sets forth true and complete copies o
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