Form 8-K CONSUMERS ENERGY CO For: Jun 21 Filed by: CMS ENERGY CORP



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Exhibit 10.1

 

Execution
Version

 

PURCHASE AND SALE AGREEMENT

 

by and between

 

New Covert Generating Company, LLC

 

as Seller,

 

and

 

Consumers Energy Company

 

as Buyer

 

dated
as of June 
21, 2021

 


 

TABLE OF CONTENTS

 

        Page
Article I. DEFINITIONS AND CONSTRUCTION   1
Section 1.1.   Definitions   1
Section 1.2.   Rules of Construction   13
Article II. PURCHASE AND SALE AND CLOSING   14
Section 2.1.   Purchase and Sale   14
Section 2.2.   Assumed Liabilities   15
Section 2.3.   Excluded Liabilities   15
Section 2.4.   Purchase Price   16
Section 2.5.   Closing   16
Section 2.6.   Closing Deliveries by Seller to Buyer   17
Section 2.7.   Closing Deliveries by Buyer to Seller   18
Section 2.8.   Post-Closing Adjustment   18
Section 2.9.   Allocation of Purchase Price   19
Article III. REPRESENTATIONS AND WARRANTIES OF SELLER   20
Section 3.1.   Organization   20
Section 3.2.   Authority; Enforceability   20
Section 3.3.   No Conflicts; Consents and Approvals   20
Section 3.4.   [Intentionally Omitted]   21
Section 3.5.   Brokers   21
Section 3.6.   Legal Proceedings   21
Section 3.7.   Compliance with Laws and Orders   21
Section 3.8.   Financial Statements   22
Section 3.9.   Absence of Certain Changes   22
Section 3.10.   Taxes   23
Section 3.11.   Condition of Purchased Assets; Sufficiency of Purchased Assets   23
Section 3.12.   Contracts   23
Section 3.13.   Ownership; Liens   25
Section 3.14.   Permits   25
Section 3.15.   Environmental Matters   26
Section 3.16.   Intellectual Property   27
Section 3.17.   [Intentionally Omitted   27

 


 

Section 3.18.   Employees and Labor Matters   27
Section 3.19.   Employee Benefits   27
Section 3.20.   Inventory   28
Section 3.21.   Insurance   28
Section 3.22.   FERC/NERC/DOE/MISO/PJM Matters   28
Section 3.23.   Power of Attorney   29
Article IV. REPRESENTATIONS AND WARRANTIES OF BUYER   29
Section 4.1.   Organization   29
Section 4.2.   Authority; Enforceability   29
Section 4.3.   No Conflicts   29
Section 4.4.   Legal Proceedings   30
Section 4.5.   Brokers   30
Section 4.6.   Financial Capability   30
Article V. COVENANTS   30
Section 5.1.   Regulatory and Other Approvals   30
Section 5.2.   Access of Buyer and Seller   33
Section 5.3.   Operations During Interim Period   34
Section 5.4.   MISO Interconnection and Capacity   36
Section 5.5.   [Intentionally Omitted   37
Section 5.6.   [Intentionally Omitted   37
Section 5.7.   Liens   37
Section 5.8.   Insurance   37
Section 5.9.   Transfer Taxes; Property Taxes   38
Section 5.10.   Books and Records   38
Section 5.11.   Tax Matters   39
Section 5.12.   Casualty   40
Section 5.13.   Condemnation   41
Section 5.14.   Confidentiality   42
Section 5.15.   Public Announcements   42
Section 5.16.   Further Assurances   42
Section 5.17.   Monthly Operating Report; Subsequent Budget   42
Section 5.18.   Guaranty of Seller’s Obligations   43
Section 5.19.   Financial Statements   43
Section 5.20.   Reserved   43

 


 

Section 5.21.   No Solicitation of Other Bids   43
Section 5.22.   Consents Not Obtained at Closing   44
Section 5.23.   Pre-Closing Title Policy   45
Section 5.24.   Transition Services Agreement   46
Article VI. BUYER’S CONDITIONS TO CLOSING   47
Section 6.1.   Representations and Warranties   47
Section 6.2.   Performance   47
Section 6.3.   Officer’s Certificate   47
Section 6.4.   Orders and Laws   47
Section 6.5.   Consents and Approvals   48
Section 6.6.   Release of Liens   48
Section 6.7.   Title Insurance   48
Section 6.8.   MISO Interconnection   48
Section 6.9.   Closing Deliverables   48
Section 6.10.   Permits   48
Article VII. SELLER’S CONDITIONS TO CLOSING   48
Section 7.1.   Representations and Warranties   48
Section 7.2.   Performance   49
Section 7.3.   Officer’s Certificate   49
Section 7.4.   Orders and Laws   49
Section 7.5.   Consents and Approvals   49
Section 7.6.   Closing Deliverables   49
Article VIII. TERMINATION   49
Section 8.1.   Termination   49
Section 8.2.   Effect of Termination   50
Section 8.3.   Specific Performance and Other Remedies   50
Article IX. INDEMNIFICATION, LIMITATIONS OF LIABILITY AND WAIVERS   51
Section 9.1.   Indemnification   51
Section 9.2.   Limitations of Liability   51
Section 9.3.   Calculation of Damages   53
Section 9.4.   No Other Representations or Warranties   54
Section 9.5.   Waiver of Remedies   54
Section 9.6.   Procedure with Respect to Third-Party Claims   55
Article X. MISCELLANEOUS   56

 


 

Section 10.1.   Notices   56
Section 10.2.   Entire Agreement   57
Section 10.3.   Expenses   57
Section 10.4.   Disclosure   58
Section 10.5.   Disputes Regarding Prudent Engineering and Operating Practices   59
Section 10.6.   Waiver   59
Section 10.7.   Amendment   59
Section 10.8.   No Third Party Beneficiary   59
Section 10.9.   Assignment; Binding Effect   60
Section 10.10.   Headings   60
Section 10.11.   Invalid Provisions   60
Section 10.12.   Counterparts; Facsimile   60
Section 10.13.   Governing Law; Venue; and Jurisdiction   60
Section 10.14.   No Partnership or Joint Venture   61
Section 10.15.   No Recourse   61

 

EXHIBITS

 

Exhibit 1.1(a)   Title Endorsements
Exhibit 2.1(a)   Purchased Assets
Exhibit 2.1(b)   Excluded Assets
Exhibit 2.6(b)-1   Form of Tax Clearance Certificate Application
Exhibit 2.6(b)-2   Form of Tax Clearance Certificate
Exhibit 2.6(c)   Form of Bill of Sale
Exhibit 2.6(d)   Form of Deed
Exhibit 2.6(f)   Form of Assignment and Assumption Agreement
Exhibit 2.6(g)   Form of Owner’s Affidavit
Exhibit 5.9(b)   Property Tax Proration Methodologies
Exhibit 5.17   Form of Monthly Operating Report
Exhibit 5.18   Form of Seller Parent Guaranty…



Read More:Form 8-K CONSUMERS ENERGY CO For: Jun 21 Filed by: CMS ENERGY CORP