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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

 

 

 

  Page

 

  ARTICLE 1 DEFINITIONS

1

 

1.1

Definitions 

1

 

1.2 

Construction 

8

 

 

 

 

  ARTICLE 2 CONTRIBUTION AND CLOSING

8

 

2.1

Contribution 

8

 

2.2

Consideration 

8

 

2.3

Closing and Closing Deliveries 

9

 

2.4

Consideration Adjustment 

10

 

 

 

 

ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTING PARTIES

10

 

3.1

Organization 

10

 

3.2

Authority and Approval 

10

 

3.3

No Conflict; Consents 

11

 

3.4

Capitalization; Title to Subject Interest 

12

 

3.5

Financial Statements; Internal Controls; Undisclosed Liabilities 

12

 

3.6

 Title to Assets

13

 

3.7

Litigation; Laws and Regulations 

13

 

3.8

No Adverse Changes 

14

 

3.9

Taxes 

14

 

3.10

Environmental Matters 

15

 

3.11

Licenses; Permits 

15

 

3.12

Contracts 

16

 

3.13

Employees and Employee Benefits

16

 

3.14

Transactions with Affiliates 

18

 

3.15

Regulation 

18

 

3.16

Brokerage Arrangements

18

 

3.17

Waivers and Disclaimers

18

 

3.18

SEC Reports 

19

 

 

 

 

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP PARTIES

20

 

4.1

Organization and Existence 

20

 

4.2

Authority and Approval 

20

 

4.3

No Conflict; Consents 

21

 

4.4

Brokerage Arrangements 

21

 

4.5

Litigation 

22

 

4.6

Waivers and Disclaimers

22

 

 

 

 

 

i

 


 

 

ARTICLE 5 ADDITIONAL AGREEMENTS, COVENANTS, RIGHTS AND OBLIGATIONS

  23

 

5.1

Operation of CIG 

23

 

5.2

Supplemental Disclosure 

23

 

5.3

Access to Books and Records 

23

 

5.4

Cooperation; Further Assurances

23

 

5.5

Admission of Partnership as Partner 

24

 

5.6

Cash Pooling Transactions

24

 

5.7

Growth Capital; Debt Balance 

25

 

5.8

Reimbursement Obligation 

25

 

 

 

 

ARTICLE 6 CONDITIONS TO CLOSING

25

 

6.1

Conditions to the Obligation of the Partnership Parties 

25

 

6.2

Conditions to the Obligation of the Contributing Parties 

26

 

 

 

 

ARTICLE 7 TAX MATTERS

27

 

7.1 

Liability for Taxes 

27

 

7.2

Tax Returns 

28

 

7.3

Tax Treatment of Indemnity Payments 

29

 

7.4

Transfer Taxes 

29

 

7.5

Survival 

29

 

7.6

Conflict 

29

 

 

 

 

ARTICLE 8 TERMINATION

30

 

8.1

Events of Termination 

30

 

8.2

Effect of Termination 

30

 

 

 

 

ARTICLE 9 INDEMNIFICATION UPON CLOSING

31

 

9.1

Indemnification of the Partnership Parties

31

 

9.2

Indemnification of the Contributing Parties and CIG 

31

 

9.3

Tax Indemnification 

31

 

9.4

Survival 

32

 

9.5

Demands 

32

 

9.6

Right to Contest and Defend 

33

 

9.7

Cooperation 

33

 

9.8

Right to Participate 

34

 

9.9

Payment of Damages 

34

 

9.10

Limitations on Indemnification 

34

 

9.11

Sole Remedy 

35

 

 

 

 

ARTICLE 10 MISCELLANEOUS

35

 

10.1

Expenses 

35

 

10.2

Notices 

36

 

10.3

Governing Law 

36

 

10.4

Public Statements

37

 

10.5

Entire Agreement; Amendments and Waivers

37

 

10.6

Conflicting Provisions

37

 

10.7

Binding Effect and Assignment

37

 

10.8

Severability

38

 

10.9

Interpretation

38

 

 

 

 

 

 

 

ii

 


 

 

 

10.10

Headings and Disclosure Schedules 

38

 

10.11

Multiple Counterparts 

38

 

10.12

Action by Partnership Parties 

38

 

10.13

Limitation on Recourse 

39

 

 

Exhibit A                       Form of Contribution, Conveyance and Assumption Agreement

 

Exhibit B                       Form of Demand Note

 

Exhibit C                       Form of Cancellation 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

 

1.1  

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.

 

 

 

 

 

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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.

 

 

 

 

 

 

 

3


 

 

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.

 

 

 

 

 

 

 

4


 

 

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 .

 

 

 

 

 

 

5


 

 

“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.

 

 

 

 

 

 

6


 

 

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 .

 

 

 

 

 

 

 

7


 

 

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.

 

1.2  

Construction

 

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

 

2.1  

Contribution

 

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.

 

2.2  

Consideration

 

(a)  

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)  

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.

 

2.3  

Closing and Closing Deliveries

 

(a)  

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.

 

(b)  

At the Closing, the Contributing Parties shall deliver, or cause to be delivered, to the Partnership Parties the following:

 

     (i)  

A counterpart of the Contribution Agreement, duly executed by each Contributing Party that is a party thereto;

 

     (ii)  

The Contributing Parties Closing Certificate, duly executed by, or on behalf of, each of the Contributing Parties;

 

     (iii)  

A certificate of good standing of recent date of CIG;

 

     (iv)  

A counterpart of the second amendment to the Existing CIG Partnership Agreement, duly executed by each Contributing Party that is a party thereto;

 

     (v)  

A counterpart of the Cancellation Agreement, duly executed by El Paso and CIG;

 

     (vi)  

The Demand Note, duly executed by El Paso and CIG; and

 

     (vii)  

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.

 

(c)  

At the Closing, the Partnership Parties shall deliver, or cause to be delivered, to the Contributing Parties the following:

 

     (i)  

A counterpart of the Contribution Agreement, duly executed by each Partnership Party;

 

     (ii)  

The Consideration as provided in Section  2.2(a) ;

 

     (iii)  

The Partnership Parties Closing Certificate, duly executed by, or on behalf of, each of the Partnership Parties;

 

 

 

 

 

 

 

 

9


 

 

 

     (iv)  

A counterpart of the second amendment to the Existing CIG Partnership Agreement, duly executed by each Partnership Party that is a party thereto; and

 

     (v)  

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.

 

2.4  

Consideration Adjustment

 

.  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:

 

3.1  

Organization

 

(a)  

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.

 

(b)  

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.

 

3.2  

Authority and Approval

 

(a)  

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)  

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).

 

3.3  

No Conflict; Consents

 

Except as set forth on Disclosure Schedule  3.3 :

 

(a)  

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)  

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.

 

3.4  

Capitalization; Title to Subject Interest

 

(a)  

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).

 

(b)  

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.

 

3.5  

Financial Statements; Internal Controls; Undisclosed Liabilities

 

(a)  

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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