EX-2.1(B) 2 d434993dex21b.htm AMENDMENT NO. 1 TO ASSET PURCHASE AGREEMENT Amendment No. 1 to Asset Purchase Agreement

Exhibit 2.1(b)

AMENDMENT NO. 1

TO

ASSET PURCHASE AGREEMENT

THIS AMENDMENT NO. 1 TO ASSET PURCHASE AGREEMENT (“Amendment”) is made and entered into as of August 1, 2012, by and between Atmos Energy Corporation, a corporation incorporated in the State of Texas and the Commonwealth of Virginia (“Seller”), and Liberty Energy (Midstates) Corp., a Missouri corporation (“Buyer”), and amends that certain Asset Purchase Agreement, dated May 12, 2011 (the “Agreement”), by and between the parties.

WHEREAS, Seller and Buyer entered into the Agreement on May 12, 2011;

WHEREAS, pursuant to Section 11.1 of the Agreement, Seller and Buyer now desire to amend certain provisions of the Agreement in the manner set forth herein.

NOW THEREFORE, in consideration of the parties’ respective covenants, representations, warranties, and agreements hereinafter set forth, and intending to be legally bound hereby, the parties agree as follows:

1. Amended Agreement. The Agreement is amended as follows:

(a) Subsection (b) of Section 2.1 (Purchased Assets) of the Agreement is amended by deleting all existing text of that subsection in its entirety and substituting the following text in its entirety:

“all Billed Revenues and Unbilled Revenues, each as defined in Section 3.5, which for the avoidance of doubt and notwithstanding any other provision of this Agreement to the contrary, shall constitute Current Assets for purposes of calculating the Adjustment Amount;”

(b) Subsection (a) of Section 2.2 (Excluded Assets) of the Agreement is amended by deleting all existing text of that subsection in its entirety and substituting the word “Reserved”.

(c) Section 3.5 (Unbilled Revenues) of the Agreement is amended by deleting all existing text of that subsection in its entirety and substituting the following text in its entirety:

“On and prior to the Closing Date, Seller shall read all customer meters in their normal cycle and in due course render the related bills to its customers served by the Business. Seller shall also read each daily read transportation customer meter (collectively, “Large Volume Meters”) on the day immediately preceding the Closing Date. Seller shall provide Buyer with the last meter reading from each of the Large Volume Meters made on the day immediately preceding the Closing Date as soon as practicable after the Closing Date. After the Closing Date, Buyer shall read the customer meters for their first time, in the normal cycle, and in due course render bills for service during the period between Seller’s last reading in the normal cycle and Buyer’s first reading in the normal cycle to the customers served by the Business. Buyer shall determine the volume of gas sold by Seller prior to the Closing Date through Large Volume Meters by Seller’s meter readings on the day immediately preceding the Closing Date. Buyer shall determine by allocation


the volumes of gas sold through all meters other than Large Volume Meters, by Seller prior to the Closing Date, and by Buyer on and after the Closing Date and prior to its first meter reading, through meters without charts. Such allocation shall be consistent with Seller’s past practices for unbilled revenues. The receivables related to the volume of gas allocable to Seller under this Section but not yet billed to customers served by the Business shall be defined as “Unbilled Revenue.” “Billed Revenue” shall mean all outstanding bills to customers served by the Business that have not been paid as of the Closing Date less (i) any offset that results from the difference between installment payments and gas consumed and (ii) allowance for bad debt, which shall be calculated consistent with Seller’s past practices.”

(d) Subsection (e) of Section 7.10 (Employee Benefits) of the Agreement is amended by deleting all existing text of that subsection in its entirety and substituting the following text in its entirety:

“Seller shall fully vest all Transferred Employees in their account balances under Seller’s Retirement Savings Plan (the “Seller’s 401(k) Plan”), effective as of the Closing Date. Effective as of the Closing Date, Buyer shall maintain or designate, or cause to be maintained or designated, a defined contribution plan and related trust intended to be qualified under Sections 401(a), 401(k) and 501(a) of the Code (the “Buyer’s 401(k) Plan”). Effective as of the Closing Date, the Transferred Employees shall cease participation in Seller’s 401(k) Plan, and shall commence participation in Buyer’s 401(k) Plan. The Buyer’s 401(k) Plan shall provide for the receipt from Transferred Employees of “eligible rollover distributions” (as such term is defined under Section 402 of the Code), including rollovers of outstanding plan loans under the Seller’s 401(k) Plan (and all assets and liabilities associated thereto). As soon as practicable following the Closing Date, Buyer shall provide Seller with such documents and other information as Seller shall reasonably request to assure itself that the Buyer’s 401(k) Plan is tax-qualified and provides for the receipt of eligible rollover distributions. Each Transferred Employee shall be given the opportunity to receive a distribution of his or her account balance under Seller’s 401(k) Plan and shall be given the opportunity to elect a direct rollover of such account balance, including the rollover of any outstanding plan loans, to the Buyer’s 401(k) Plan, subject to and in accordance with the provisions of such plan and applicable Law. Seller and Buyer shall cooperate in order to facilitate any such distribution or rollover and to effect an eligible rollover distribution for those Transferred Employees who elect to rollover their account balances directly to the Buyer’s 401(k) Plan. With respect to each Transferred Employee who elects to effect an eligible rollover distribution of their account balances to the Buyer’s 401(k) Plan and has an outstanding plan loan under Seller’s 401(k) Plan as of the Closing Date, Seller and Buyer shall cooperate to take such steps as may be necessary to (i) name the trustee of the Buyer’s 401(k) Plan as the obligee of such loan, (ii) obtain an executed written acknowledgement from such Transferred Employee that Buyer’s Plan will be the obligee of such loan, and (iii) permit any such Transferred Employee to make timely loan service payments to Buyer’s 401(k) Plan through payroll deductions by Buyer (or its applicable Affiliate) on or after completion of

 

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the eligible rollover distribution. On and after the Closing Date and prior to the completion by any Transferred Employee of an eligible rollover distribution which includes the rollover of an outstanding plan loan, Buyer and Seller shall cooperate to permit such Transferred Employee to make timely loan service payments to Seller’s 401(k) Plan through payroll deductions by Buyer (or its applicable Affiliate).”

(e) Section 8.2 (Conditions to Buyer’s Closing Obligations) of the Agreement is amended by adding a new Subsection (i) following the existing text of that section, which new Subsection (i) shall read in its entirety:

“A FERC waiver effectuating the transfer of transportation capacity to Buyer will be obtained prior to the Closing, or, if a waiver is not obtained prior to the Closing, the Parties shall ensure that the transportation capacity pricing and service to which Seller is currently entitled is preserved through the transaction.”

(f) Subsection (b)(ii) of Section 1 (Adjustment Amount) of Appendix A to the Agreement is amended by deleting all existing text of that subsection in its entirety and substituting the following text in its entirety:

““Regulatory Liabilities” means the Value as of the Effective Time of the FERC Accounts related to liabilities to refund or credit amounts to customers through rates and charges in future periods (together with any interest or return thereon), that result specifically from ratemaking action by the Applicable Commission (whether pursuant to a decrease or offset to rate base for ratemaking purposes or pursuant to an authorized recovery or credit mechanism), that are included in Assumed Obligations as of the Effective Time or are imposed on Buyer by any Applicable Commission for rate purposes in connection with the approval of the transaction (and excluding any amounts included in the Closing Net PPE Amount); provided that the rate base offset required pursuant to that certain Unanimous Stipulation and Agreement in Case No. GM-2012-0037 before the Public Service Commission of the State of Missouri (the “Missouri Rate Base Offset”) shall, in no circumstance, constitute a Regulatory Liability or affect the calculation of Regulatory Liabilities. For the avoidance of doubt, notwithstanding any provision of the Agreement to the contrary, the Missouri Rate Base Offset shall not affect the calculation of the Adjustment Amount, and the Purchase Price shall not be increased, decreased or otherwise adjusted in respect of the Missouri Rate Base Offset.”

(g) The Schedules to the Agreement, other than the Seller Disclosure Schedules, are amended by deleting all existing such Schedules in their entirety and substituting the Schedules of corresponding numbers attached to this Amendment.

2. Miscellaneous.

(a) Capitalized Terms. Unless otherwise defined herein, each of the capitalized terms used herein, but not defined herein, shall have the same meaning given to such term in the Agreement. Terms defined herein that are used in an amended provision of the Agreement shall have the same meaning as their definitions herein.

 

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(b) Entire Agreement. This Amendment will be a valid and binding agreement of the parties only if and when it is fully executed and delivered by the parties, and until such execution and delivery no legal obligation will be created by virtue hereof or any discussions with respect hereto. This Amendment embodies the entire agreement and understanding of the parties hereto in respect of the matters contemplated by this Amendment. This Amendment supersedes all prior agreements and understandings between the parties with respect to such matters contemplated hereby.

(c) Ratification; Interpretation. Except as specifically amended by this Amendment, the Agreement remains in effect in accordance with all terms and conditions contained therein. For the avoidance of doubt, the phrases “as of the date hereof”, “as of the date of this Agreement” or words of similar import as used in the Agreement (as amended pursuant to this Amendment) shall mean “as of May 12, 2011” (i.e., the date the Agreement was executed).

(d) Amendment. This Amendment may be amended, modified, or supplemented only by written agreement of Seller and Buyer.

(e) Governing Law. This Amendment (as well as any claim or controversy arising out of or relating to this Amendment or the transactions contemplated hereby) shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of laws rules thereof that would otherwise require the laws of another jurisdiction to apply.

(f) Delivery. This Amendment may be executed in multiple counterparts (each of which will be deemed an original, but all of which together will constitute one and the same instrument), and may be delivered by facsimile transmission, with such facsimile signature constituting an original for all purposes.

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties have caused this Amendment to be signed by their respective duly authorized officers as of the date first above written.

 

ATMOS ENERGY CORPORATION

By:

 

/s/ FRED E. MEISENHEIMER

 

 

Name:

 

Fred E. Meisenheimer

Title:

 

Senior Vice President and Chief

 

Financial Officer

LIBERTY ENERGY (MIDSTATES) CORP.

By:

 

/s/ DAVID BRONICHESKI

 

 

Name:

 

David Bronicheski

Title:

 

Treasurer and Secretary

By:

 

/s/ LINDA BEAIRSTO

 

 

Name:

 

Linda Beairsto

Title:

 

Authorized Signing Officer

Signature Page to Amendment No. 1 to Asset Purchase Agreement


SCHEDULE 1.1-A

BUYER REQUIRED REGULATORY APPROVALS

APPLICABLE COMMISSIONS

Approval by each Applicable Commission of the joint application of the Parties for the approval of the transactions contemplated by the Agreement, including:

 

(a)

Authorization of Buyer to provide regulated gas distribution service in the applicable jurisdiction upon and following the Closing at the same rates, charges, terms and conditions as set forth in the then current tariffs of Seller with respect to the Business on file with the Applicable Commission, including the issuance or approval of the transfer to Buyer of all certificates of public convenience and necessity and other licenses, authorizations, waivers and approvals previously granted by the Applicable Commission to Seller and required for Buyer to operate the Business as currently operated by Seller.

 

(b)

Approval of the assumption and transfer to Buyer of, and authorization to record and recover in accordance with the terms and conditions then applicable to Seller, the Regulatory Assets and Regulatory Liabilities included in the Purchased Assets and Assumed Obligations, and to record and recover a regulatory asset or liability to reflect unfunded pension plan and post- retirement benefits other than pension obligations, if any, assumed by Buyer, to be amortized over the average remaining service period of employees of the Business expected to receive benefits under such plans.

 

(c)

Approval for Buyer to issue debt, either to third parties or to one or more of its Affiliate parent companies, with respect to the financing of the transaction contemplated by the Agreement, in an amount such that the debt component of the utility’s capital structure does not exceed 50% of such capital structure.

 

(d)

Authorization of the parties to enter into and perform in accordance with the terms of all other documents reasonably necessary and incidental to the performance of the transactions contemplated by the Agreement.

 

FERC: 

Any and all approvals of the Federal Energy Regulatory Commission required in connection with the transactions contemplated by the Agreement.

 

Amended Schedules - 1


SCHEDULE 1.1-B

PERMITTED ENCUMBRANCES

 

1.

Unrecorded easements, discrepancies or conflicts in boundary lines, shortages in area and encroachments which an accurate and complete survey would disclose, that do not, individually or in the aggregate, materially interfere with Buyer’s operation of the Business or use of any of the Purchased Assets in the manner currently used and do not secure any Excluded Liabilities.

 

2.

All matters of record which would be disclosed by an abstract of title, title opinion or title insurance commitment, that do not, individually or in the aggregate, materially interfere with Buyer’s operation of the Business or use of any of the Purchased Assets in the manner currently used and do not secure any Excluded Liabilities.

 

Amended Schedules - 2


SCHEDULE 1.1-C

SELLER REQUIRED REGULATORY APPROVALS

ILLINOIS

Illinois Commerce Commission

 

 

1.

Joint application for approval of the sale of certain of its assets located in the State of Illinois to Liberty Energy (Midstates) Corp.

 

 

2.

Order issued approving said sale on June 27, 2012.

IOWA

Iowa State Utilities Board

 

 

1.

Joint application for approval of the sale of certain of its assets located in the State of Iowa to Liberty Energy (Midstates) Corp.

 

 

2.

Order issued approving said sale on November 14, 2011.

MISSOURI

Missouri Public Service Commission

 

 

1.

Joint application for approval of the sale of certain of its assets located in the State of Missouri to Liberty Energy (Midstates) Corp.

 

 

2.

Order issued approving said sale on March 14, 2012.

FEDERAL

 

 

1.

FERC—Order Issuing Blanket Certificate of Limited Jurisdiction, Atmos Energy Corporation, 138 FERC ¶ 62,319 (March 29, 2012).

 

Amended Schedules - 3


SCHEDULE 1.1-D

SELLER’S KNOWLEDGE – LIST OF EMPLOYEES

 

Name

  

Title

Kevin Akers

  

President

Kentucky/Mid-States Division

Ernie Napier

  

Vice President, Technical Services

Kentucky/Mid-States Division

Kevin Dobbs

  

Vice President, Operations

Kentucky/Mid-States Division

Kenny Malter

  

Vice President, Gas Supply

Louis Gregory

  

Senior Vice President, General Counsel & Corporate Secretary

Pace McDonald                             

  

Vice President, Tax

Doug Walther

  

Deputy General Counsel

Greg Waller

  

Manager, Rates & Regulatory Affairs

 

Amended Schedules - 4


SCHEDULE 1.1-E

TERRITORY

1. ILLINOIS: The local natural gas distribution system comprising approximately 702 miles of pipeline of varying diameters from 2-inches to 8-inches, associated with the natural gas distribution system serving the primary markets of Alma, Altamont, Beecher City, Brookport, Brownstown, Carrier Mills, Cowden, Eldorado, Farina, Farmersville, Galatia, Girard, Harrisburg, Huey, Iuka, Joppa, Kinmundy, Metropolis, Middletown, Muddy, New Holland, Raleigh, Salem, St. Elmo, St. Peter, Thayer, Vandalia, Virden, Waggoner, and Xenia.

2. IOWA: The local natural gas distribution system comprising approximately 144 miles of pipeline of varying diameters from 2-inches to 10-inches, associated with the natural gas distribution system serving the primary markets of Keokuk and Montrose.

3. MISSOURI: The local natural gas distribution system comprising approximately 2,179 miles of pipeline of varying diameters from 2-inches to 12-inches, associated with the natural gas distribution system serving the primary markets of Adrian, Alexandria, Amoret, Appleton, Arbela, Arbyrd, Arcadia, Archie, Benton, Bertrand, Bowling Green, Butler, Campbell, Canton, Cardwell, Caruthersville, Chaffee, Charleston, Clarkton, Cooter, Doniphan, East Prairie, Edina, Ewing, Gideon, Gordonville, Greentop, Greenville, Hannibal, Hayti Heights, Hayti, Holcomb, Holland, Hornersville, Howardville, Hume, Ironton, Jackson, Kahoka, Kirksville, Knox City, La Plata, Labelle, LaGrange, Lambert, Lancaster, Lewistown, Lilbourn, Luray, Malden, Marston, Matthews, Memphis, Miner, Monticello, Montrose, Morehouse, Morley, Naylor, Neelyville, New Madrid, North Lilbourn, Oak Ridge, Oran, Palmyra, Passaic, Piedmont, Portageville, Puxico, Queen City, Qulin, Rich Hill, Senath, Sikeston, Steele, Wardell, and Wayland.

4. MISCELLANEOUS: Approximately twenty (20) feet of four-inch (4”) steel pipeline at or near the Kansas/Missouri border, running from the outlet valve on the State Line Meter setting, under State Line Road in the County of Linn, Kansas, to the Kansas/Missouri border.

 

Amended Schedules - 5


SCHEDULE 2.1(a)(i)

REAL PROPERTY AND REAL PROPERTY INTERESTS

1. OWNED OFFICE/WAREHOUSE STRUCTURES AND LAND:

 

 

a.

ILLINOIS

 

 

i.

611 N. Main, Harrisburg, IL.

 

 

b.

IOWA

 

 

i.

None.

 

 

c.

MISSOURI

 

 

i.

2 Industrial Loop Drive, Hannibal, MO (Seller shall cause its Subsidiary to transfer to Buyer).

 

 

ii.

Out Lot 50, Hannibal, MO (remediated former MGP site).

 

 

iii.

101 E. Mill Street, Butler, MO.

 

 

iv.

209 Champ Clark Drive, Bowling Green, MO.

 

 

v.

916 Green Street, Kirksville, MO.

 

Amended Schedules - 6


SCHEDULE 2.1(a)(i)

REAL PROPERTY AND REAL PROPERTY INTERESTS

(Continued)

2. LEASED OFFICE/WAREHOUSE SPACE:

 

Illinois

Address

  

Type

    

Office
Size

    

Warehouse
Size

    

Other
Size

    

Action

Required

    

Status

136 E. Dean St,

Virden 62690

  

Office

    

2736

    

2914

         

Prior written consent

    

Complete

224 S. 6th St,

Vandalia 62471

  

Office

    

1750

    

2650

         

Prior written consent

    

Complete

615 E. 10th St,

Metropolis 62960

  

Office

    

1200

    

1250

    

1125

    

Prior written consent

    

Complete

 

Iowa

Address

  

Type

    

Office
Size

    

Warehouse
Size

    

Other
Size

    

Action

Required

    

Status

2547 Hilton Rd,

Keokuk 52632

  

Office

    

4430

    

5360

         

Prior written consent

    

Discussing with landlord

 

Missouri

Address

  

Type

    

Office
Size

    

Warehouse
Size

    

Other
Size

    

Action Required

    

Status

100 S. Main,

Butler 64730

  

Other

    

2000

    

232

         

Prior written consent

    

New lease signed by Liberty

900 Truman Blvd,

Caruthersville 63830

  

Other

    

4500

    

1200

         

Prior written consent

    

Complete

2370 N. High St, Suite 1,

Jackson 63755

  

Office

    

2500

              

Prior written consent

    

Complete

216 W. Main,

Malden 63863

  

Office

    

1000

         

248

    

Silent

    

Complete

1024 Linn St,

Sikeston 63801

  

Office

    

4000

    

6000

         

Prior written consent

    

Complete

113 R S. Main,

Ironton 63650

  

Storage space

         

375

         

None

    

Acknow. still outstanding

617 North Main

Piedmont

  

Storage space

         

375

         

None

    

Liberty to determine if new lease is needed

“Complete” indicates both Consent & Estopel and Acknowledgement have been fully executed.

 

Amended Schedules - 7


3. EASEMENTS AND RIGHTS-OF-WAY

a. ILLINOIS: All right, title and interest to all real property (and interests therein and appurtenances thereto), rights-of-way, leases, easements, licenses or other rights to use or have access, servitudes, distribution systems and assets, whether or not of record, including (without limitation) in the counties of Champaign, Clay, Clinton, Effingham, Fayette, Logan, Macoupin, Marion, Massac, Menard, Montgomery, Saline, Sangamon, and Shelby, associated with the high pressure natural gas distribution system service for the primary markets of Alma, Altamont, Beecher City, Brookport, Brownstown, Carrier Mills, Cowden, Eldorado, Farina, Farmersville, Galatia, Girard, Harrisburg, Huey, Iuka, Joppa, Kinmundy, Metropolis, Middletown, Muddy, New Holland, Raleigh, Salem, St. Elmo, St. Peter, Thayer, Vandalia, Virden, Waggoner, and Xenia.

b. IOWA: All right, title and interest to all real property (and interests therein and appurtenances thereto), rights-of-way, leases, easements, licenses or other rights to use or have access, servitudes, distribution systems and assets, whether or not of record, including (without limitation) in the county of Lee, associated with the high pressure natural gas distribution system service for the primary markets of Keokuk and Montrose.

c. MISSOURI: All right, title and interest to all real property (and interests therein and appurtenances thereto), rights-of-way, leases, easements, licenses or other rights to use or have access, servitudes, distribution systems and assets, whether or not of record, including (without limitation) in the counties of Adair, Bates, Butler, Cape Girardeau, Cass, Clark, Dunklin, Henry, Iron, Knox, Lewis, Macon, Marion, Mississippi, New Madrid, Pemiscot, Pike, Ralls, Ripley, Schuyler, Scotland, Scott, St. Clair, Stoddard and Wayne associated with the high pressure natural gas distribution system service for the primary markets of the primary markets of Adrian, Alexandria, Amoret, Appleton, Arbela, Arbyrd, Arcadia, Archie, Benton, Bertrand, Bowling Green, Butler, Campbell, Canton, Cardwell, Caruthersville, Chaffee, Charleston, Clarkton, Cooter, Doniphan, East Prairie, Edina, Ewing, Gideon, Gordonville, Greentop, Greenville, Hannibal, Hayti Heights, Hayti, Holcomb, Holland, Hornersville, Howardville, Hume, Ironton, Jackson, Kahoka, Kirksville, Knox City, La Plata, Labelle, LaGrange, Lambert, Lancaster, Lewistown, Lilbourn, Luray, Malden, Marston, Matthews, Memphis, Miner, Monticello, Montrose, Morehouse, Morley, Naylor, Neelyville, New Madrid, North Lilbourn, Oak Ridge, Oran, Palmyra, Passaic, Piedmont, Portageville, Puxico, Queen City, Qulin, Rich Hill, Senath, Sikeston, Steele, Wardell, and Wayland.

 

Amended Schedules - 8


SCHEDULE 2.1(a)(ii)

ALL OTHER NATURAL GAS DISTRIBUTION UTILITY SYSTEM ASSETS

1. HIGH PRESSURE PIPELINE DISTRIBUTION SYSTEM

a. ILLINOIS: All personal property comprising approximately 702 miles of pipeline of varying diameters from 2-inches to 8-inches, associated with the high pressure natural gas distribution system serving the primary markets of Alma, Altamont, Beecher City, Brookport, Brownstown, Carrier Mills, Cowden, Eldorado, Farina, Farmersville, Galatia, Girard, Harrisburg, Huey, Iuka, Joppa, Kinmundy, Metropolis, Middletown, Muddy, New Holland, Raleigh, Salem, St. Elmo, St. Peter, Thayer, Vandalia, Virden, Waggoner, and Xenia.

b. IOWA: All personal property comprising approximately 144 miles of pipeline of varying diameters from 2-inches to 10-inches, associated with the high pressure natural gas distribution system serving the primary markets of Keokuk and Montrose.

c. MISSOURI: All personal property comprising approximately 2,179 miles of pipeline of varying diameters from 2-inches to 12-inches, associated with the high pressure natural gas distribution system serving the primary markets of Adrian, Alexandria, Amoret, Appleton, Arbela, Arbyrd, Arcadia, Archie, Benton, Bertrand, Bowling Green, Butler, Campbell, Canton, Cardwell, Caruthersville, Chaffee, Charleston, Clarkton, Cooter, Doniphan, East Prairie, Edina, Ewing, Gideon, Gordonville, Greentop, Greenville, Hannibal, Hayti Heights, Hayti, Holcomb, Holland, Hornersville, Howardville, Hume, Ironton, Jackson, Kahoka, Kirksville, Knox City, La Plata, Labelle, LaGrange, Lambert, Lancaster, Lewistown, Lilbourn, Luray, Malden, Marston, Matthews, Memphis, Miner, Monticello, Montrose, Morehouse, Morley, Naylor, Neelyville, New Madrid, North Lilbourn, Oak Ridge, Oran, Palmyra, Passaic, Piedmont, Portageville, Puxico, Queen City, Qulin, Rich Hill, Senath, Sikeston, Steele, Wardell, and Wayland.

 

 

Amended Schedules - 9


2. GAS DISTRIBUTION ASSETS

a. ILLINOIS: All personal property associated with the distribution system’s provision of service, including, without limitation, compressors, pumps, motors, dehydrators, treaters, vessels, machinery, vehicles, trailers, fences, tools, lubricants, materials, supplies and spare-parts and computer hardware, and Seller’s interest as lessee in any equipment leased by Seller, to the primary markets of Alma, Altamont, Beecher City, Brookport, Brownstown, Carrier Mills, Cowden, Eldorado, Farina, Farmersville, Galatia, Girard, Harrisburg, Huey, Iuka, Joppa, Kinmundy, Metropolis, Middletown, Muddy, New Holland, Raleigh, Salem, St. Elmo, St. Peter, Thayer, Vandalia, Virden, Waggoner, and Xenia.

b. IOWA: All personal property associated with the distribution system’s provision of service, including, without limitation, compressors, pumps, motors, dehydrators, treaters, vessels, machinery, vehicles, trailers, fences, tools, lubricants, materials, supplies and spare-parts and computer hardware, and Seller’s interest as lessee in any equipment leased by Seller, to the primary markets of Keokuk and Montrose.

c. MISSOURI: All personal property associated with the distribution system’s provision of service, including, without limitation, compressors, pumps, motors, dehydrators, treaters, vessels, machinery, vehicles, trailers, fences, tools, lubricants, materials, supplies and spare-parts and computer hardware, and Seller’s interest as lessee in any equipment leased by Seller, to the primary markets of Adrian, Alexandria, Amoret, Appleton, Arbela, Arbyrd, Arcadia, Archie, Benton, Bertrand, Bowling Green, Butler, Campbell, Canton, Cardwelll, Caruthersville, Chaffee, Charleston, Clarkton, Cooter, Doniphan, East Prairie, Edina, Ewing, Gideon, Gordonville, Greentop, Greenville, Hannibal, Hayti Heights, Hayti, Holcomb, Holland, Hornersville, Howardville, Hume, Ironton, Jackson, Kahoka, Kirksville, Knox City, La Plata, Labelle, LaGrange, Lambert, Lancaster, Lewistown, Lilbourn, Luray, Malden, Marston, Matthews, Memphis, Miner, Monticello, Montrose, Morehouse, Morley, Naylor, Neelyville, New Madrid, North Lilbourn, Oak Ridge, Oran, Palmyra, Passaic, Piedmont, Portageville, Puxico, Queen City, Qulin, Rich Hill, Senath, Sikeston, Steele, Wardell, and Wayland.

 

Amended Schedules - 10


SCHEDULE 2.1(i)

ASSETS AND OTHER RIGHTS

ILLINOIS

None.

IOWA

None.

MISSOURI

None.

 

Amended Schedules - 11


SCHEDULE 2.2(g)

ALL EXCLUDED AGREEMENTS, CONTRACTS, AND UNDERSTANDINGS

1. Agreements jointly used by the subject Business and other divisions of Seller:

 

Contractor

  

Description

  

Effective Date

  

Term

Bank of America

  

P-Card and Travel & Entertainment Card

  

12/9/2010

  

Ongoing

McJunkin

  

Pipe valves & fittings

  

2/21/2011

  

Three years

GE Capital Fleet Services

  

Master Lease Agreement; and related addendum*

  

1/15/1999

  

Ongoing

GE Capital Fleet Services

  

Master Services Agreement ; and related addendum*

  

1/15/1999

  

Ongoing

ARI Fleet LT and Automotive Rentals, Inc.

  

Lease and fleet management services agreement *

  

5/4/2010

  

Ongoing

Deere Credit, Inc.

  

Master Lease Agreement - Equipment leases*

  

3/10/2003

  

Two years

US Bank

  

Retail lockbox

  

12/16/2009

  

Three years

CheckFree

  

Walkin pay centers and e-bill handling

  

3/31/2006

  

Ongoing

BillMatrix

  

Credit Card payment processing

  

3/1/2011

  

Negotiating new contract, currently month-to-month

Western Union

  

Walk-in pay centers

  

3/31/1997

  

Ongoing

Fidelity Express

  

Walk-in pay centers

  

12/19/2003

  

Annual auto-renewal

Visa

  

Acceptance & promotional agreement

  

5/1/2011

  

Two years

Contract Callers, Inc.

  

Outside collection agency

  

1/1/2005

  

Ongoing

Professional Finance Co.

  

Outside collection agency

  

10/1/2005

  

Ongoing

Dynamic Recovery Services

  

Outside collection agency

  

4/1/2004

  

Ongoing

HHT Limited

  

Outside collection agency

  

5/6/2010

  

Ongoing

Kubra

  

Bill printing

  

7/30/2009

  

4/30/2013

Societe Generale

  

ISDA Master Agreement

     

Ongoing

Barclays Bank PLC

  

ISDA Master Agreement

     

Ongoing

CitiGroup Inc.

  

ISDA Master Agreement

     

Ongoing

Conoco Phillips

  

ISDA Master Agreement

     

Ongoing

 

Amended Schedules - 12


Credit Agricole (formerly Calyon)

  

ISDA Master Agreement

     

Ongoing

Fifth Third Bank

  

ISDA Master Agreement

     

Ongoing

JPMorgan Chase Bank N.A.

  

ISDA Master Agreement

     

Ongoing

Wells Fargo Bank, National

  

ISDA Master Agreement

     

Ongoing

Shell Energy North America (US)

  

ISDA Master Agreement

     

Ongoing

Morgan Stanley

  

ISDA Master Agreement

     

Ongoing

BP Corporation North America Inc.

  

ISDA Master Agreement

     

Ongoing

BNP Paribas

  

ISDA Master Agreement

     

Ongoing

Royal Bank of Canada

  

ISDA Master Agreement

     

Ongoing

Bank of Montreal

  

ISDA Master Agreement

     

Ongoing

Credit Suisse

  

ISDA Master Agreement

     

Ongoing

Deutsche Bank Securities Inc.

  

ISDA Master Agreement

     

Ongoing

Goldman, Sachs & Co.

  

ISDA Master Agreement

     

Ongoing

 

*

Assets that principally relate to the current operation of the Business that are leased under a lease, contract or agreement set forth on this Schedule 2.2(g) will be transferred to Buyer pursuant to an assignment or partial assignment of the lease schedule or lease of which they are a part (without assignment of the master lease agreement itself or any other lease thereunder); provided, however, that if such lease cannot be assigned to Buyer, such assets shall be subject to Section 7.6(c) of the Agreement.

2. Base NAESB Agreements.

 

Contract No.

  

Description

  

Party

   Term

UCG-10835

  

Gas Supply Agreement – Base Contract (NAESB)

  

CenterPoint Energy Gas Marketing Company

  

Ongoing

UCG-10999

  

Gas Supply Agreement – Base Contract (NAESB)

  

OGE Energy Resources, Inc.

  

Ongoing

UCG-11074

  

Gas Supply Agreement – Base Contract (NAESB)

  

Tenaska Marketing Ventures

  

Ongoing

 

Amended Schedules - 13


UCG-11105

  

Gas Supply Agreement – Base Contract (NAESB)

  

Coral Energy Resources, L.P.

  

Ongoing

UCG-11105

  

Gas Supply Agreement – Base Contract (NAESB)

  

Coral Energy Resources, L.P.

  

Ongoing

UCG-10835

  

Gas Supply Agreement – Base Contract (NAESB)

  

CenterPoint Energy Gas Marketing Company

  

Ongoing

UCG-10837

  

Gas Supply Agreement – Base Contract (NAESB)

  

ConocoPhillips Company

  

Ongoing

UCG-10999

  

Gas Supply Agreement – Base Contract (NAESB)

  

OGE Energy Resources, Inc.

  

Ongoing

UCG-11105

  

Gas Supply Agreement – Base Contract (NAESB)

  

Coral Energy Resources, L.P.

  

Ongoing

UCG-11313

  

Gas Supply Agreement – Base Contract (NAESB)

  

Laclede Energy Resources, Inc.

  

Ongoing

3. Radio Licenses.

 

Call Sign / Lease ID

  

Name

  

FRN

  

Radio
Service

  

Status

  

Expires

  

Control Point

WNGL827

  

Atmos Energy Corporation, Mid-States Division

  

577305

  

IG

  

Active

  

3/1/2013

  

425 College St., Canton, MO

KDU845

  

Atmos Energy Corporation, Mid-States Division

  

577305

  

IG

  

Active

  

4/18/2013

  

611 N. Main St., Harrisburg, IL

KNAM811

  

Atmos Energy Corporation, Mid-States Division

  

577305

  

IG

  

Active

  

11/5/2015

  

136 E. Dean St., Virden, IL

 

Amended Schedules - 14


SCHEDULE 2.2(o)

EXCLUDED ASSETS AND OTHER RIGHTS

ILLINOIS

None.

IOWA

None.

MISSOURI

None.

 

Amended Schedules - 15


SCHEDULE 7.1

EXCEPTIONS TO CONDUCT OF BUSINESS IN ORDINARY COURSE

ILLINOIS

None.

IOWA

None.

MISSOURI

None.

 

Amended Schedules - 16


SCHEDULE 7.1(c)

CAPITAL INVESTMENTS PROGRAM

 

 

1.

SEE FY 2011 CAPITAL BUDGET PREVIOUSLY PROVIDED TO BUYER.

 

 

2.

PROPOSED FY 2012 CAPITAL BUDGET TO BE PROVIDED TO BUYER

(which in the aggregate will be reasonably consistent with the FY 2011 Capital Budget).

 

Amended Schedules - 17


SCHEDULE 7.9(a)

LIST OF BUSINESS EMPLOYEES

 

ILLINOIS

 

State Total: 30

Hire Date

  

Job Name

   Work Location    Grade   

Pay Basis

1/5/1987

  

Sr. Service Technician

  

Metropolis

   2   

Non Exempt Hrly

8/27/2007

  

Sr. Construction Operator

  

Harrisburg

   2   

Non Exempt Hrly

6/24/1985

  

Sr. Service Technician

  

Harrisburg

   2   

Non Exempt Hrly

9/3/1985

  

Sr. Service Technician

  

Metropolis

   2   

Non Exempt Hrly

11/7/1983

  

Distribution Operator

  

Vandalia

   3   

Non Exempt Hrly

10/1/1983

  

Operations Supervisor

  

Harrisburg

   5   

Exempt Salary

1/26/1987

  

Sr. Construction Operator

  

Metropolis

   2   

Non Exempt Hrly

7/13/1981

  

Distribution Operator

  

Metropolis

   3   

Non Exempt Hrly

8/7/1989

  

Crew Leader

  

Harrisburg

   3   

Non Exempt Hrly

2/24/1987

  

Sr. MIC Tech

  

Vandalia

   3   

Non Exempt Hrly

10/1/1983

  

Sr. Service Technician

  

Harrisburg

   2   

Non Exempt Hrly

10/3/1983

  

Crew Leader

  

Vandalia

   3   

Non Exempt Hrly

1/1/1984

  

Sr. Construction Operator

  

Vandalia

   2   

Non Exempt Hrly

3/13/1980

  

Operations Assistant

  

Vandalia

   2   

Non Exempt Hrly

10/29/1984

  

Operations Supervisor

  

Vandalia

   5   

Exempt Salary

8/27/1979

  

Crew Leader

  

Metropolis

   3   

Non Exempt Hrly

12/23/2002

  

Operations Assistant

  

Harrisburg

   2   

Non Exempt Hrly

10/25/1979

  

Sr. Construction Operator

  

Harrisburg

   2   

Non Exempt Hrly

5/5/1980

  

Sr. Service Technician

  

Harrisburg

   2   

Non Exempt Hrly

11/16/1992

  

Sr. Service Technician

  

Metropolis

   2   

Non Exempt Hrly

6/4/1974

  

Sr. Service Technician

  

Vandalia

   2   

Non Exempt Hrly

5/14/1981

  

Operations Assistant

  

Virden

   2   

Non Exempt Hrly

2/2/1987

  

Sr. MIC Tech

  

Harrisburg

   3   

Non Exempt Hrly

12/1/1985

  

Sr. Construction Operator

  

Vandalia

   2   

Non Exempt Hrly

3/29/1976

  

Sr. Service Technician

  

Harrisburg

   2   

Non Exempt Hrly

7/18/2005

  

Service Technician

  

Virden

   1   

Non Exempt Hrly

8/30/2004

  

Sr. Service Technician

  

Vandalia

   2   

Non Exempt Hrly

4/28/2008

  

Meter Reader

  

Virden

   1   

Non Exempt Hrly

3/17/2003

  

Sr. Service Technician

  

Virden

   2   

Non Exempt Hrly

5/24/2004

  

Sr. Service Technician

  

Virden

   2   

Non Exempt Hrly

 

IOWA

 

State Total: 12

 

Hire Date

  

Job Name

   Work Location    Grade   

Pay Basis

4/16/1990

  

Town Operator

  

Keokuk

   4   

Non Exempt Hrly

7/28/2008

  

Service Technician

  

Keokuk

   1   

Non Exempt Hrly

6/1/1978

  

Distribution Operator

  

Keokuk

   3   

Non Exempt Hrly

11/19/1990

  

Crew Leader

  

Keokuk

   3   

Non Exempt Hrly

5/7/1979

  

Operations Assistant

  

Keokuk

   2   

Non Exempt Hrly

3/19/1979

  

Operations Assistant

  

Keokuk

   2   

Non Exempt Hrly

 

Amended Schedules - 18


3/5/1990

  

Sr. Construction Operator

  

Keokuk

   2   

Non Exempt Hrly

9/1/1973

  

Operations Manager

  

Keokuk

   6   

Exempt Salary

1/24/1972

  

Sr. Service Technician

  

Keokuk

   2   

Non Exempt Hrly

1/11/2010

  

Meter Reader

  

Keokuk

   1   

Non Exempt Hrly

1/9/2006

  

Project Specialist

  

Keokuk

   4   

Exempt Salary

2/12/1990

  

Operations Supervisor

  

Keokuk

   5   

Exempt Salary

 

MISSOURI

 

State Total: 63

 

Hire Date

  

Job Name

   Work Location    Grade*   

Pay Basis

1/25/1971

  

Operations Assistant

  

Hannibal

   2   

Non Exempt Hrly

1/10/1994

  

Crew Leader

  

Sikeston

   U   

Non Exempt Hrly

7/31/2006

  

Sr. Construction Operator

  

Jackson

   U   

Non Exempt Hrly

3/5/1990

  

Sr. Construction Operator

  

Hannibal

   2   

Non Exempt Hrly

5/18/1998

  

Sr. Construction Operator

  

Jackson

   U   

Non Exempt Hrly

8/18/1997

  

Operations Assistant

  

Butler

   2   

Non Exempt Hrly

5/3/1988

  

Meter Reader

  

Caruthersville

   U   

Non Exempt Hrly

1/9/1989

  

Distribution Operator

  

Hannibal

   3   

Non Exempt Hrly

3/16/1999

  

Sr. Service Technician

  

Butler

   U   

Non Exempt Hrly

12/3/1984

  

Sr. Service Technician

  

Caruthersville

   U   

Non Exempt Hrly

12/17/1990

  

Sr. MIC Tech

  

Caruthersville

   U   

Non Exempt Hrly

8/26/1991

  

Sr. Construction Operator

  

Sikeston

   U   

Non Exempt Hrly

6/18/1990

  

Project Specialist

  

Sikeston

   4   

Exempt Salary

12/9/1985

  

Crew Leader

  

Butler

   U   

Non Exempt Hrly

12/9/1996

  

Sr. Service Technician

  

Malden

   U   

Non Exempt Hrly

8/14/1984

  

Operations Supervisor

  

Hannibal

   5   

Exempt Salary

4/16/1979

  

Sr. Service Technician

  

Kirksville

   U   

Non Exempt Hrly

12/16/1998

  

Operations Assistant

  

Jackson

   2   

Non Exempt Hrly

3/12/1984

  

Operations Assistant

  

Kirksville

   2   

Non Exempt Hrly

10/1/1990

  

Distribution Operator

  

Hannibal

   3   

Non Exempt Hrly

8/7/1978

  

Sr. Service Technician

  

Malden

   U   

Non Exempt Hrly

3/15/1985

  

Sr. Service Technician

  

Jackson

   U   

Non Exempt Hrly

1/2/1992

  

Sr. MIC Tech

  

Sikeston

   U   

Non Exempt Hrly

4/23/1982

  

Sr. Construction Operator

  

Caruthersville

   U   

Non Exempt Hrly

11/20/1978

  

Sr. Service Technician

  

Sikeston

   U   

Non Exempt Hrly

12/22/1980

  

Corrosion Control Technician

  

Hannibal

   3   

Non Exempt Hrly

4/9/1982

  

Sr. Construction Operator

  

Jackson

   U   

Non Exempt Hrly

1/1/1990

  

Sr. Construction Operator

  

Hannibal

   2   

Non Exempt Hrly

7/24/1990

  

Sr. Service Technician

  

Sikeston

   U   

Non Exempt Hrly

6/3/1977

  

Sr. Service Technician

  

Caruthersville

   U   

Non Exempt Hrly

6/3/1985

  

Operations Supervisor

  

Kirksville

   5   

Exempt Salary

11/18/1977

  

Sr. Service Technician

  

Caruthersville

   U   

Non Exempt Hrly

6/21/1982

  

Mgr Public Affairs

  

Jackson

   6   

Exempt Salary

5/1/1975

  

Crew Leader

  

Caruthersville

   U   

Non Exempt Hrly

6/30/2008

  

Construction Operator

  

Hannibal

   1   

Non Exempt Hrly

1/14/2008

  

Sr. Service Technician

  

Malden

   U   

Non Exempt Hrly

11/24/2008

  

Meter Reader

  

Jackson

   U   

Non Exempt Hrly

11/17/2008

  

Meter Reader

  

Kirksville

   U   

Non Exempt Hrly

 

Amended Schedules - 19


7/17/2007

    

Meter Reader

  

Malden

  

U

     

Non Exempt Hrly

1/7/2008

    

Meter Reader

  

Sikeston

  

U

     

Non Exempt Hrly

5/21/2007

    

Meter Reader

  

Butler

  

U

     

Non Exempt Hrly

8/6/2007

    

Service Technician

  

Jackson

  

U

     

Non Exempt Hrly

4/6/2006

    

Construction Operator

  

Kirksville

  

U

     

Non Exempt Hrly

2/4/1998

    

Sr. Service Technician

  

Sikeston

  

U

     

Non Exempt Hrly

5/12/1998

    

Operations Supervisor

  

Jackson

  

5

     

Exempt Salary

7/15/2004

    

Service Technician

  

Hannibal

  

1

     

Non Exempt Hrly

2/1/1996

    

Sr. MIC Tech

  

Jackson

  

U

     

Non Exempt Hrly

10/26/1998

    

Sr. Construction Operator

  

Hannibal

  

2

     

Non Exempt Hrly

2/14/2008

    

Construction Operator

  

Jackson

  

U

     

Non Exempt Hrly

5/13/2002

    

Sr. Construction Operator

  

Butler

  

U

     

Non Exempt Hrly

3/16/1994

    

Operations Supervisor

  

Malden

  

5

     

Exempt Salary

6/27/1997

    

Sr. MIC Tech

  

Hannibal

  

3

     

Non Exempt Hrly

11/17/1997

    

Operations Supervisor

  

Sikeston

  

5

     

Exempt Salary

7/16/1990

    

Sr. Service Technician

  

Kirksville

  

U

     

Non Exempt Hrly

9/17/1987

    

Sr. Service Technician

  

Sikeston

  

U

     

Non Exempt Hrly

3/11/1996

    

Sr. Service Technician

  

Jackson

  

U

     

Non Exempt Hrly

7/23/1990

    

Crew Leader

  

Kirksville

  

U

     

Non Exempt Hrly

6/26/1995

    

Sr. Construction Operator

  

Sikeston

  

U

     

Non Exempt Hrly

3/12/2007

    

Sr. Construction Operator

  

Malden

  

U

     

Non Exempt Hrly

5/9/2011

    

Meter Reader

  

Sikeston

  

U

     

Non Exempt Hrly

5/23/2011

    

Operations Assistant

  

Caruthersville

  

2

     

Non Exempt Hrly

11/22/2011

    

Operations Assistant

  

Sikeston

  

2

     

Non Exempt Hrly

8/8/2011

    

Meter Reader

  

Hannibal

  

1

     

Non Exempt Hrly

                

Grand Total: 105

 

*

U = Union

We have two posted positions:

 

 

(1)

Meter Reader, Vandalia, IL

 

 

(2)

Meter Reader, Malden, MO – position covered by union contract

Candidate for each position going through pre-employment steps during the week of July 22, 2012. Their hire date will August 1, 2012 or after.

 

Amended Schedules - 20


SCHEDULE 7.9(c)

COLLECTIVE BARGAINING UNITS

ILLINOIS: None.

IOWA: None.

MISSOURI: International Brotherhood of Electrical Workers, Local Union 1439, AFL-CIO.

 

Amended Schedules - 21


SCHEDULE 7.10(d)

ASSET TRANSFER AMOUNT OF

PENSION LIABILITIES AND ASSETS

Transfer of Pension Liabilities and Assets

For purposes of determining the asset transfer amount:

Terminations Prior to Closing Date

Seller will retain the liability, and no assets will be transferred.

New Hires Prior to Closing

Employees will become participants in the Retirement Savings Plan and will not participate in the Pension Account Plan; no assets will be transferred.

Active Participants at Closing Date

Grandfathered Participants

 

 

Assets transferred: Greater of (1) the Pension Account Plan account balance at Closing Date1 or (2) the lump sum value of the Pension Account Plan grandfathered monthly benefit earned as of the Closing Date

 

 

Assumptions: For the lump sum value of the grandfathered benefit, IRS 417(e) interest rates and mortality table in effect for lump sums payable as of the first of the month following the Closing Date

Non-grandfathered Participants

 

 

Assets transferred: Pension Account Plan account balance at Closing Date1

 

 

Assumptions: Not applicable

 

1

Account balance will include a partial year of pay credits and interest credits if the transaction closes in the middle of a calendar year.

Adjustment Between Closing Date and Actual Transfer Date

For purposes of Section 7.9(e), the Interest Crediting Rate in effect in the Pension Account Plan during the period between Closing Date and Actual Transfer Date will be used for the adjustment.

 

Amended Schedules - 22


SCHEDULE 7.10(f)

ASSET TRANSFER AMOUNT OF POST-RETIREMENT

HEALTH AND WELFARE BENEFITS

Transfer of Retiree Medical Liabilities and Assets

For purposes of determining the asset transfer amount, Seller will transfer based on financial reporting assumptions as this is the basis for rate recovery.

 

Discount Rate

  

Based on high quality corporate bond yields as of the Closing Date

Salary Increase

  

4.0% per year

Medical/Dental Plan Trend Rate:

  

•     Medical costs

  

8.00% in fiscal year 2012: reducing 0.5% per year, reaching 5.00% in fiscal year 2018 and after.

•     Prescription drug costs

  

8.00% in fiscal year 2012: reducing 0.5% per year reaching 5.50% in fiscal year 2017 and after.

•     Dental costs

  

6.00% in fiscal year 2011 and after

Mortality Table

  

RP2000 White Collar with mortality improvement projected to 2020 using Scale AA

Termination

  

Rates varying by age and service. Sample rates:

      Age    Age    Age
      25    40    55
  

Rate

   12.1%    4.7%    2.2%

Retirement

  

Rates varying by age:

   Age    Rate      
   55-58    5%      
   59-60    10%      
   61    15%      
   62    40%      
   63-64    30%      
   65-69    50%      
   70    100%      

Percentage Covering Spouses

   70%                   

Spouses Ages

  

Wives 2 years younger than husbands

Participation Rates

  

95%

        

Other Assumptions

  

Other assumptions as used for the Seller’s most recent financial statement disclosures as of September 30, 2011

 

Amended Schedules - 23


SCHEDULE 7.10(i)

SEVERANCE ARRANGEMENTS

Seller has no formal severance policy, however Seller’s general practice is 1.5 weeks pay for each full year of service (rounded down) – minimum five weeks, no maximum.

Seller also subsidizes COBRA coverage for the same amount of time as calculated above at a rate same as active-employee rates.

 

Amended Schedules - 24