Document:

Document

EXHIBIT 10.6

EXECUTION COPY

AGENCY APPOINTMENT AND ASSUMPTION AGREEMENT

This AGENCY APPOINTMENT AND ASSUMPTION AGREEMENT, dated as of September 13, 2019 (this “Agreement”), is entered into among WILMINGTON TRUST, NATIONAL ASSOCIATION (“Wilmington Trust”), in its capacity as Successor Agent (as defined below), PG&E CORPORATION, as borrower (the “Borrower”), and the Lenders signatory hereto, constituting the Required Lenders. 

Reference is made to that certain Second Amended and Restated Credit Agreement dated as of April 27, 2015 (as amended, supplemented, waived or otherwise modified from time to time, the “Credit Agreement”), among PG&E Corporation, as Borrower, the financial institutions specified therein, as Lenders, the Former Agent (as defined below), Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC, as joint lead arrangers and joint bookrunners, Citibank, N.A. and JPMorgan Chase Bank, N.A., as co-syndication agents, and Wells Fargo Bank, National Association, as documentation agent.  Unless otherwise indicated, all capitalized terms used herein and not otherwise defined herein shall have the respective meanings given such terms in the Credit Agreement.

RECITALS

WHEREAS, on January 29, 2019, Borrower and one of its affiliates filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the U.S. Bankruptcy Court for the Northern District of California, Case No. 19-30088 (collectively, the “Chapter 11 Cases”);

WHEREAS, effective March 18, 2019 (the “Resignation Effective Date”), Bank of America, N.A. (“Bank of America”), in its capacity as the Administrative Agent (the “Former Agent”) resigned as the Administrative Agent in accordance with Section 9.9 of the Credit Agreement;

WHEREAS, the Credit Agreement requires that a successor Administrative Agent be appointed from among the Lenders;

WHEREAS, none of the Lenders is willing to serve as successor Administrative Agent;

WHEREAS, after the Resignation Effective Date, in accordance with Section 9.9 of the Credit Agreement, the Lenders assumed the duties of the Administrative Agent (each, in their respective capacity as the Administrative Agent, the “Interim Lender Agents”);

WHEREAS, the Required Lenders and the Borrower are willing to waive the requirement that the successor Administrative Agent be appointed from among the Lenders;

WHEREAS, the Required Lenders desire to appoint Wilmington Trust to act as the successor Administrative Agent (in such capacity, the “Successor Agent”) under the Credit Agreement and the other Loan Documents;

WHEREAS, the Successor Agent hereby agrees to accept its appointment and to serve as the Administrative Agent; and

WHEREAS, as of the Effective Date (as defined below), and pursuant to the terms of this Agreement and Section 9 of the Credit Agreement, the Interim Lender Agents shall cease to be the Administrative Agent under the Credit Agreement and the other Loan Documents and Successor Agent shall become the Administrative Agent under the Credit Agreement and the other Loan Documents.

NOW, THEREFORE, the parties agree as follows:

1. Limited Waiver.  The Required Lenders and the Borrower hereby waive the requirement in the second sentence of Section 9.9(a) of the Credit Agreement that a successor Administrative Agent be appointed from among the Lenders, solely in connection with the appointment of Wilmington Trust hereunder.

2. Appointment.  As of the date first written above (the “Effective Date”):  (i) the Required Lenders hereby appoint, in accordance with Section 9.9(a) of the Credit Agreement, the Successor Agent as the Administrative Agent under the Credit Agreement and any other Loan Documents; (ii) the Successor Agent hereby accepts its appointment as the Administrative Agent under the Credit Agreement and any other Loan Documents; (iii) the Successor Agent, as the Administrative Agent, shall succeed to, and be vested with, all of the rights, powers, privileges and duties of the Administrative Agent under the Credit Agreement and any other Loan Documents (and each Interim Lender Agent shall automatically cease being the Administrative Agent and shall be discharged from all of its duties and obligations under the Credit Agreement and other Loan Documents); and (iv) the Borrower hereby approves the appointment of the Successor Agent as the Administrative Agent under the Credit Agreement and any other Loan Documents; provided, however, that notwithstanding anything to the contrary contained in Section 9.9(c) of the Credit Agreement, Wilmington Trust shall not succeed to or become vested with any rights, powers, privileges or duties of Bank of America, in its capacity as Swing Line Lender or Issuing Lender.

3. Delineation of Responsibilities.  The parties hereto agree that none of the Interim Lender Agents, nor any of their respective Related Parties, shall bear any responsibility or liability for any actions taken or omitted to be taken by the Successor Agent under this Agreement, the Credit Agreement or the Loan Documents or the transactions contemplated thereby whether prior to or after the Effective Date.  The parties hereto agree that Wilmington Trust, in its individual capacity and in its capacity as the Successor Agent, shall bear no responsibility or liability for any actions taken or omitted to be taken by any Interim Lender Agent or by the Former Agent under this Agreement, the Credit Agreement, and the other Loan Documents or the transactions contemplated thereby.

4. Covenants/Representations of the Borrower.

(a)  The Borrower represents and warrants that Schedule I hereto sets forth each material Loan Document.
(i) The last interest payment made under the Credit Agreement was on January 16, 2019, in the amount of $1,016,541.67.
(b) The Borrower hereby agrees that, from and after the Effective Date, the Borrower shall send all notices and other written requests under the Loan Documents to the Successor Agent.
(c) The Borrower is authorized to execute this Agreement and perform its obligations hereunder (subject to the Chapter 11 Acknowledgment contained in the Successor Agent Fee Letter (as defined below)). 

5. Representations of the Interim Lender Agents.  The Interim Lender Agents represent and warrant that Schedule II hereto sets forth a list of the Lenders and their positions as of March 18, 2019, as provided by Bank of America in its capacity as former agent, which represents the Register referenced in the Credit Agreement.  Since that date, the Interim Lender Agents have not processed any transactions changing the composition of the Lenders or the size of their positions.  The Interim Lender Agents hereby represent and warrant that the Lenders signatory hereto constitute the Required Lenders as of the date hereof and are authorized to execute this Agreement and give full force and effect to the terms hereof.

6. Covenants/Representation of the Successor Agent.  The Successor Agent: (i) agrees that it will, independently and without reliance upon the Former Agent or any Interim Lender Agent and based on such documents and information as it shall deem appropriate at the time, make its own decisions in taking or not taking action under the Credit Agreement and the other Loan Documents; and (ii) agrees to be bound by the provisions of the Credit Agreement and the other Loan Documents and will perform in accordance with their terms all the obligations which by the terms of the Credit Agreement and the other Loan Documents are required to be performed by it as the Successor Agent.  The Successor Agent represents and warrants that it is duly authorized to execute this 

Agreement and to perform its obligations under this Agreement, the Credit Agreement and the other Loan Documents.

7. Miscellaneous.  
(a) Conditions to Effectiveness.  This Agreement shall be effective as of the Effective Date once the following conditions have been met: (i) the Required Lenders, the Borrower and Wilmington Trust, have delivered executed counterparts of this Agreement; and (ii) the Successor Agent shall have received that certain Agency Fee Letter, dated as of the date hereof (the “Successor Agent Fee Letter”), executed and delivered by a duly authorized officer of the Borrower, which the parties hereto hereby acknowledge and agree shall constitute a fee agreement referenced in Section 2.6(b) of the Credit Agreement for all purposes under the Credit Agreement from and after the date hereof.

(b) Severability.  Any provision of this Agreement, which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

(c) Continuing Effect; No Other Waivers or Amendments.  Except as expressly set forth herein, this Agreement shall not constitute an amendment to or waiver of any provision of the Credit Agreement or the other Loan Documents and shall not be construed as a consent to any action on the part of the Borrower, or any other subsidiary of the Borrower that would require an amendment, waiver or consent of the Administrative Agent or any Lender.  This Agreement shall not constitute a novation of the Credit Agreement or any other Loan Document. The provisions of the Credit Agreement and the other Loan Documents are and shall remain in full force and effect in accordance with their terms.  This Agreement shall be considered a Loan Document.  As of and after the Effective Date, the provisions of this Agreement and, as set forth in Section 9.9(a) of the Credit Agreement, the provisions of Section 9.7 of the Credit Agreement shall in each case inure to the benefit of each Interim Lender Agent as to any actions taken or omitted to be taken while any Interim Lender Agent was or otherwise performed the duties of Administrative Agent under the Credit Agreement and the other Loan Documents, and it is understood and agreed that the Successor Agent: (i) shall have no responsibility or liability whatsoever for any actions taken or failure to take action (including without limitation any matters relating to payments, computations and accruals) for the period prior to the Effective Date; and (ii) from and after the Effective Date, shall receive all of the benefits, indemnifications and exculpations provided for in the Credit Agreement (including without limitation under the provisions of Section 9) that are stated therein to apply to the Administrative Agent.

(d) Privileged Information. It is the intention and understanding of the Successor Agent and the Required Lenders that any exchange of information under this Agreement that is otherwise protected against disclosure by privilege, doctrine or rule of confidentiality (such information, “Privileged Information”), whether before or after the Effective Date: (i) shall not waive any applicable privilege, doctrine or rule of protection from disclosure; (ii) shall not diminish the confidentiality of the Privileged Information; and (iii) shall not be asserted as a waiver of any such privilege, doctrine or rule by any Interim Lender Agent or the Successor Agent.

(e) Disclaimer.  EXCEPT AS SET FORTH HEREIN, THE INTERIM LENDER AGENTS HEREBY SPECIFICALLY DISCLAIM ANY AND ALL REPRESENTATIONS AND WARRANTIES OF ANY KIND OR CHARACTER, EXPRESS OR IMPLIED INCLUDING WITHOUT LIMITATION, (I) THE COLLECTABILITY OF THE LOANS (II) THE CREDITWORTHINESS OF THE BORROWER, AND (III) THE VALIDITY AND ENFORCEABILITY OF, OR NON-EXISTENCE OF OFFSETS OR DEFENSES TO, THE LOAN DOCUMENTS.

(f) Notices.  The following address and account details are to be used for purposes of communications to the Successor Agent pursuant to the Credit Agreement or the other Loan Documents:  

Wilmington Trust, National Association
50 South Sixth Street, Suite 1290
Minneapolis, MN 55402
Attention: Jeffery Rose
Tel:  (612) 217-5630
E-mail: jrose@wilmingtontrust.com

With copies to:

Pillsbury Winthrop Shaw Pittman LLP
Four Embarcadero Center, 22nd Floor
San Francisco, CA 94111-5998
Attention: M. David Minnick
Tel: (415) 983-1351
Fax: (415) 983-1200
Email: dminnick@pillsburylaw.com

Pillsbury Winthrop Shaw Pittman LLP
31 West 52nd Street
New York, NY 10019-6131
Attention: Leo T. Crowley
Tel: (212) 858-1740
Fax: (212) 858-1500
E-mail: leo.crowley@pillsburylaw.com

(g) Counterparts.  This Agreement may be executed in any number of separate counterparts by the parties hereto (including by telecopy or via electronic mail), each of which counterparts when so executed shall be an original, but all the counterparts shall together constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall have the same force and effect as the delivery of an original executed counterpart of this Agreement.

(h) GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

[Signature Pages Follow]
 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their respective duly authorized officers as of the date first above written.

THE SUCCESSOR AGENT

WILMINGTON TRUST, NATIONAL
ASSOCIATION, as the Successor Agent

By:                  /s/ JEFFERY ROSE                        
Name:  Jeffery Rose
Title:  Vice President       

THE BORROWER

PG&E CORPORATION, as Borrower

By:           /s/ NICHOLAS BIJUR                     
Name:      Nicholas Bijur         
Title:        Vice President, Treasurer

THE REQUIRED LENDERS

CANADIAN IMPERIAL BANK OF
COMMERCE, NEW YORK BRANCH

                                                                         
By:           /s/ ERIC J. DE SANTIS                 
        Name:      Eric J. De Santis
        Title:        Authorized Signatory

MORGAN STANLEY BANK, N.A.

____________________________________
By:           /s/ KEVIN NEWMAN                   
Name:      Kevin Newman         
Title:        Authorized Signatory

MORGAN STANLEY SENIOR
     FUNDING, INC.

____________________________________
By:           /s/ KEVIN NEWMAN                   
Name:      Kevin Newman         
Title:        Vice President

MUFG UNION BANK, N.A.
    F/K/A UNION BANK, N.A.

                                                                       
By:            /s/ JOHN LILLY                           
Name:      John Lilly         
Title:        Director

BANC OF AMERICA CREDIT
    PRODUCTS INC.

____________________________________
By:                                                                    
Name:              
Title:

WELLS FARGO BANK,     
NATIONAL  ASSOCIATION    
F/K/A WELLS FARGO BANK, N.A.

____________________________________
By:           /s/ CHRISTINE GARDINER          
Name:     Christine Gardiner        
Title:        Director

BARCLAYS BANK plc

____________________________________
By:          /s/ KOMAL RAMKIRATH            
Name:     Komal Ramkirath         
Title:       Assistant Vice President

AZTEC PARTNERS LLC

____________________________________
By:                                                                   
Name:              
Title: 

BNP PARIBAS

____________________________________
By:           /s/ DENIS O'MEARA                     
Name:      Denis O’Meara         
Title:        Managing Director

By:           /s/ TED SHEEN                             
Name:      Ted Sheen         
Title:        Director

CITIBANK, N.A.

____________________________________
By:           /s/ BRIAN S. BROYLES               
Name:      Brian S. Broyles         
Title:       Attorney-in-Fact

GOLDMAN SACHS BANK USA

____________________________________
By:                                                                   
Name:              
Title: 

JP MORGAN CHASE BANK, NATIONAL
    ASSOCIATION

____________________________________
By:                                                                   
Name:              
Title: 

                                                                                       PALOMINO MASTER LTD.

____________________________________
By:                                                                   
Name:              
Title: 

TD BANK, N.A.

____________________________________
By:           /s/ VIJAY PRASAD                       
Name:     Vijay Prasad         
Title:        Sr. Vice President

MIZUHO BANK, LTD.

____________________________________
By:          /s/ JOHN DAVIES                          
Name:     John Davies         
Title:        Authorized SignatoryDocument

EXHIBIT 10.7

July 30, 2019 

Andrew Vesey
3305 North Albermarle Street
Arlington, VA  22207

Dear Andy,

On behalf of Pacific Gas and Electric Company, I am pleased to offer you the position of Chief Executive Officer and President of Pacific Gas and Electric Company (the Company), reporting to the Company’s Board of Directors. This offer is subject to your election as an officer by our Board of Directors, approval of your compensation by the independent members of the Company’s Board, and approval of certain elements of your compensation by the Bankruptcy Court.

Your total annual compensation package will consist of the following: 

1.An annual base salary of $1,000,000 ($83,333/month) subject to ordinary withholdings. Since your employment will begin mid-year, your 2019 base salary will be pro-rated to reflect the portion of the year during which you are an employee.  

2.A one-time sign on bonus of $1,000,000, subject to supplemental withholdings and Bankruptcy Court approval. Should you decide to resign from the Company within two years of your start date, you will repay the Company this sign on bonus in full.

3.Participation in the company's Key Employee Incentive Plan (KEIP), subject to Bankruptcy Court approval of the KEIP, with an annualized target value of $2,000,000 for 2019. Since your employment will begin mid-year, your 2019 target award will be pro-rated to reflect the portion of the year during which you are an employee. The KEIP is an at-risk component of pay that rewards employees annually and is tied to company performance—thus, KEIP awards are not guaranteed. The Compensation Committee of the PG&E Corporation Board of Directors retains full discretion to determine and award KEIP payments to KEIP participants, including the right to eliminate awards even if the KEIP-relevant Company performance is achieved. 

4.Participation in the PG&E Corporation Retirement Savings Plan (RSP), a 401(k) savings plan. You will be eligible to contribute as much as 50% of your salary on either a pre-tax or after-tax basis. We will match contributions up to 8% of your salary at 75 cents on each dollar contributed. All RSP contributions are subject to the applicable legal limits. 

5.Conditioned upon meeting plan requirements, eligibility for retirement benefits under the Company’s retirement (cash balance pension), post-retirement life insurance and retiree medical plans. 

6.Participation in the PG&E Corporation Defined Contribution Executive Supplemental Retirement Plan (DC-ESRP), a non-qualified deferred compensation plan. Each time you receive a base salary, Short-Term Incentive Plan (STIP) payment (no STIP payments will be made during the pendency of the Company’s Chapter 11 case), or KEIP payment, an amount equal to 7% of the payment will be credited to your DC-ESRP account. You will be 100% vested in your account upon completing three years of service. Your account balance will accrue earnings/losses based on your choice of investment funds and will be distributed, based on your election, in one to ten installments commencing seven months following termination of your employment. These amounts are considered corporate assets.

7.Participation in the PG&E Corporation Supplemental Retirement Savings Plan (SRSP), a non-qualified deferred compensation plan. You may elect to defer payment of some of your compensation on a pre-tax basis when such deferrals are offered.  During the pendency of the Company’s Chapter 11 filing, employee deferrals have been suspended. The SRSP also provides you with any matching contributions that could not be provided through the RSP due to legal limits. These amounts are considered corporate assets.  

8.An annual vacation allotment of four weeks, subject to future increases based on length of service. For your first year, the vacation allotment will be prorated based on your date of hire. In addition, Pacific Gas and Electric Company recognizes ten paid company holidays annually and provides three floating holidays immediately upon hire. Sick time accrues annually upon hire at eight hours a month with a maximum of 96 hours. 

9.An annual perquisite allowance of $25,000, subject to ordinary withholdings. Since your start date is effective after June 30th, you will receive a $12,500 perquisite for 2019. 

10.Participation in the Company’s health benefits program, which permits you to select coverage tailored to your personal needs and circumstances. Information and instructions on how to enroll in health plan benefits will be provided to you within your first ten days of employment. The benefits options you choose will be effective on your date of hire. You have 31 days from your start date to make health and welfare benefit choices that best fit your needs, as long as you enroll before the deadline. 

11.Participation in the Employee Discount program after six months of continuous service following your date of hire. The program offers participants a 25% discount on electricity and gas rates for their primary residence. To receive this benefit, you must (a) live within Pacific Gas and Electric Company’s service territory and (b) have the service in your name at your primary residence. 

12.Our employment offer also includes a comprehensive relocation package. The Officer Relocation Guide outlining the relocation benefit will be provided to you. Altair, our relocation management company, will be contacting you within the next few weeks to provide the details of the program and to work with you through the entire relocation process. 

13.In the event that you purchase a principal residence in the San Francisco Bay area and obtain a mortgage within the first 12 months from your date of hire, we will provide you with an annual payment of $50,000 the 1st year, $50,000 the 2nd year and $50,000 the 3rd year to help transition to higher housing costs.  The initial payment will coincide with the first mortgage payment.  The subsidy is considered income and will be subject to all applicable withholding taxes. The taxes are your responsibility.

You will be an employee at will, meaning the Company can terminate your employment at will (i.e. the Company can terminate your employment at any time, with or without cause and with or without notice). In the event you are terminated without cause, you will be eligible for benefits under the PG&E Corporation Officer Severance Policy. In addition, any severance payments to be made during the pendency of the Company’s Chapter 11 case will be subject to the provisions of the United States Bankruptcy Code.

The offer is contingent on your passing comprehensive background verification and a standard drug analysis test. We will also verify your eligibility to work in the United States based on applicable immigration laws. 

We look forward to you joining our executive team. 

Sincerely, 

Dinyar Mistry 
Senior Vice President, Human Resources, Shared Services and Chief Diversity Officer 
Pacific Gas and Electric Company 

Please acknowledge your acceptance of this offer and the terms of this letter by signing the original and returning it to Executive Recruiting. It is important to note that you will be an employee-at-will. This means that either you or Pacific Gas and Electric Company may end your employment at any time, with or without cause, and with or without notice.

______________________________________                          ____________________
Signature                                                                                       Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00301-of-00352.parquet"}]]