Document:

exv10w1

 

Exhibit 10.1

ELEVENTH AMENDMENT TO CREDIT AGREEMENT

     This ELEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into
effective as of December 14, 2004, in respect of the Uncommitted Amended and Restated Credit
Agreement, dated as of July 1, 2002 (as amended, supplemented or otherwise modified prior to the
date hereof, the “Credit Agreement”) by and among ATMOS ENERGY MARKETING, LLC (formerly
known as Woodward Marketing, L.L.C.), a Delaware limited liability company (the
“Borrower”), the financial institutions parties thereto (the “Banks”), FORTIS
CAPITAL CORP., a Connecticut corporation (“Fortis”), as a Bank, as an Issuing Bank, as
Collateral Agent and as Administrative Agent for the Banks, and BNP PARIBAS, a bank organized under
the laws of France (“BNP Paribas”), as a Bank, as an Issuing Bank, and as Documentation
Agent.

          WHEREAS, the Borrower has requested that the Administrative Agent and the Banks agree to amend
a certain provision of the Credit Agreement, as more fully set forth herein; and

          WHEREAS, the Administrative Agent and the Required Banks are willing to agree to such
amendment, but only on the terms and subject to the conditions set forth in this Amendment;

          NOW, THEREFORE, in consideration of premises and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the Borrower and the Required Banks
agree as follows:

          1. Defined Terms. Unless otherwise defined herein, terms defined in the Credit
Agreement are used herein as therein defined.

          2. Amendment. Section 7.01(a)(iii) of the Credit Agreement is hereby amended by
inserting immediately following the phrase “setting forth in each case in comparative form the
figures for the previous fiscal year” the phrase “except that no such comparative figures shall be
required for the fiscal year ended September 30, 2004”.

          3. Representations. To induce the Administrative Agent and the Banks to enter into
this Amendment, Borrower ratifies and confirms each representation and warranty set forth in the
Credit Agreement as if such representations and warranties were made on even date herewith, and
further represents and warrants (a) that no material adverse change has occurred in the financial
condition or business prospects of Borrower since the date of the last financial statements delivered to the Administrative Agent and the
Banks, (b) that no Event of Default exists and no event or condition exists or has occurred which
with passage of time, or notice, or both, would become an Event of Default (a “Default”),
and (c) that Borrower is fully authorized to enter into this

 

 

Amendment. BORROWER ACKNOWLEDGES THAT
THE CREDIT AGREEMENT PROVIDES FOR A CREDIT FACILITY THAT IS COMPLETELY OPTIONAL ON THE PART OF THE
BANKS AND THAT THE BANKS HAVE ABSOLUTELY NO DUTY OR OBLIGATION TO ADVANCE ANY REVOLVING LOAN OR TO
ISSUE ANY LETTER OF CREDIT. BORROWER REPRESENTS AND WARRANTS TO THE BANKS THAT BORROWER IS AWARE
OF THE RISKS ASSOCIATED WITH CONDUCTING BUSINESS UTILIZING AN UNCOMMITTED FACILITY.

          4. Conditions Precedent. This Amendment shall become effective upon the
Administrative Agent and the Banks having received:

          (a) Payment of all fees and expenses owed to them; and

          (b) Executed originals of each of the following documents and instruments, in form and
substance satisfactory to the Administrative Agent and the Banks:

          (i) this Amendment, duly executed by Borrower and the Required Banks;

          (ii) such other documents or certificates as the Administrative Agent may reasonably
request.

          5. Miscellaneous.

                (a) No Other Amendments or Waivers. Except as expressly consented to hereby, the
Credit Agreement and the other Loan Documents shall remain in full force and effect in accordance
with their respective terms, without any consent, amendment, waiver or modification of any
provision thereof.

                (b) Severability. In case any of the provisions of this Amendment shall for any
reason be held to be invalid, illegal, or unenforceable, such invalidity, illegality, or
unenforceability shall not affect any other provision hereof, and this Amendment shall be construed
as if such invalid, illegal, or unenforceable provision had never been contained herein.

                (c) Execution in Counterparts. This Amendment may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any
party hereto may execute this Amendment by signing one or more counterparts. Delivery of an
executed counterpart of a signature page to this Amendment by telecopier shall be effective as delivery of an originally executed counterpart
of this Amendment.

2

 

                (d) Governing Law. This Amendment shall be construed in accordance with and governed
by the laws of the State of New York (without reference to principles of conflicts of laws);
provided, however, that the Administrative Agent, the Banks and all Agent-Related
Persons shall retain all rights under federal law.

                (e) Rights of Third Parties. All provisions herein are imposed solely and exclusively
for the benefit of Borrower, Administrative Agent, the Banks, Agent-Related Persons, and their
permitted successors and assigns, and no other Person shall be a direct or indirect legal
beneficiary of, or have any direct or indirect cause of action or claim in connection with this
Amendment or any of the other Loan Documents.

                (f) COMPLETE AGREEMENT. THIS WRITTEN AMENDMENT AND THE OTHER WRITTEN AGREEMENTS
ENTERED INTO AMONG THE PARTIES REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[SIGNATURE PAGES FOLLOW]

3

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	ATMOS ENERGY MARKETING, LLC

(formerly known as
Woodward Marketing, L.L.C.), a Delaware limited liability company

 

 	 
	 	By:  	/s/ C. RICHARD ALFORD
 	 
	 	Name:	C. Richard Alford 	 
	 	Title:	Senior Vice President 	 
	 
	 	Borrower’s Address:

11251 Northwest Freeway, Suite 400

Houston, Texas 77092

Attention: Ronald W. Bahr

Telephone: (713) 688-7771

Facsimile: (713) 688-5124

[Signatures continue on following page.]

[Amendment to Credit Agreement]

 

 

	 	 	 	 	 
	 	FORTIS CAPITAL CORP., a Connecticut corporation

as Administrative Agent, Collateral Agent,

Issuing Bank and a Bank

 
 	 
	 	By:  	/s/ IRENE RUMMEL
 	 
	 	Name:	Irene Rummel 	 
	 	Title:	Senior Vice President 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ LEONARD RUSSO
 	 
	 	Name:	Leonard Russo 	 
	 	Title:	Director 	 
	 
	 	15455 N. Dallas Parkway

Suite 1400

Dallas, TX 75001

Telephone: (214) 953-9313

Facsimile: (214) 969-9332

[Signatures continue on following page.]

[Amendment to Credit Agreement]

 

 

	 	 	 	 	 
	 	BNP PARIBAS, a bank organized under the laws of France as a Bank, Issuing Bank, and Documentation Agent
 
 	 
	 	By:  	/s/ EDWARD CHIN
 	 
	 	Name:	Edward Chin 	 
	 	Title:	Managing Director 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ RICK WERNLI
 	 
	 	Name:	Rick Wernli 	 
	 	Title:	Director 	 
	 
	 	787 Seventh Avenue

New York, New York 10019

Attention: Ed Chin

Telephone: (212) 841-2020

Facsimile: (212) 841-2536

[Signatures continue on following page.]

[Amendment to Credit Agreement]

 

 

	 	 	 	 	 
	 	SOCIÉTÉ GÉNÉRALE, as a Bank

 
 	 
	 	By:  	/s/
EMMANUEL CHESNEAU
 	 
	 	Name:	Emmanuel Chesneau 	 
	 	Title:	Director 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ CHUNG-TAEK OH
 	 
	 	Name:	Chung-Taek Oh 	 
	 	Title:	Associate 	 
	 
	 	1221 Avenue of the Americas

New York, New York 10020

Attention: Barbara Paulsen

Telephone: (212) 278-6496

Facsimile: (212) 278-7417

[Signatures continue on following page.]

[Amendment to Credit Agreement]

 

 

	 	 	 	 	 
	 	NATEXIS BANQUES POPULAIRES, NEW YORK BRANCH, as a Bank

 
 	 
	 	By:  	/s/ DAVID PERSHAD
 	 
	 	Name:	David Pershad 	 
	 	Title:	Vice President 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ GUILLAUME DE PARSCAU
 	 
	 	Name:	Guillaume de Parscau 	 
	 	Title:	First Vice President & Manager
Commodities Finance Group 	 
	 
	 	1251 Avenue of the Americas,

34th Floor

New York, New York 10020

Attention: David Pershad

Telephone: (212) 872-5015

Facsimile: (212) 354-9095

	 	 	 	 	 
	 	RZB FINANCE LLC, as a Bank

 
 	 
	 	By:  	/s/ HERMINE KIROLOS
 	 
	 	Name:	Hermine Kirolos 	 
	 	Title:	Group Vice President 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                                  /s/ GRISELDA ALVIZO
 	 
	 	Name:	Griselda Alvizo 	 
	 	Title:	Vice President 	 
	 
	 	1133 Avenue of the Americas

New York, New York 10036

Attention: Hermine Kirolos

Telephone: (212) 845-4114

Facsimile: (212) 944-6389

[Signatures continue on following page.]

[Amendment to Credit Agreement]

 

 

	 	 	 	 	 
	 	UFJ BANK LIMITED, NEW YORK BRANCH, as a Bank

 
 	 
	 	By:  	/s/ L.J. PERENYI
 	 
	 	Name:	L.J. Perenyi 	 
	 	Title:	Vice President 	 
	 
	 	Attention: L.J. Perenyi

Telephone:

Facsimile:

	 	 	 	 	 
	 	BROWN BROTHERS HARRIMAN & CO., as a Bank

 
 	 
	 	By:  	/s/ PAUL FELDMAN
 	 
	 	Name:	Paul Feldman 	 
	 	Title:	SVP 	 
	 
	 	Attention:

Telephone: 212-493-7732

Facsimile: 212-493-8998

[Signatures continue on following page.]

[Amendment to Credit Agreement]

 

 

	 	 	 	 	 
	 	CONSENTED TO:

ATMOS ENERGY HOLDINGS, INC., Guarantor

 
 	 
	 	By:  	/s/ LAURIE M. SHERWOOD
 	 
	 	Name:	Laurie M. Sherwood	 
	 	Title:	Vice President & Treasurer 	 
	 
	 	1800 Three Lincoln Centre

5430 LBJ Freeway

Dallas, TX 75240

[Amendment to Credit Agreement]exv10w2

 

Exhibit 10.2

NON-QUALIFIED STOCK OPTION AGREEMENT

UNDER THE

ATMOS ENERGY CORPORATION

1998 LONG-TERM INCENTIVE PLAN

	 	 	 
	Date of Grant:

	 	March 11, 2003
	 
	 	 
	Name of Optionee:

	 	Name
	 
	 	 
	Number of Shares:

	 	Number
	 
	 	 
	Price Per Share:

	 	$21.23, which is 100% of the fair market
value per share of the shares as of the date of grant
as determined in accordance with the Atmos Energy
Corporation 1998 Long-Term Incentive Plan

     Atmos Energy Corporation, a Texas and Virginia corporation (the “Company”) hereby grants to
the above-named optionee (the “Optionee”) an option (the “Option”) to purchase from the Company,
for the price per share set forth above, the number of shares of common stock (the “Stock”) of the
Company set forth above pursuant to the Atmos Energy Corporation 1998 Long-Term Incentive Plan
(the “Plan”). This Option is intended to be a non-qualified stock option and is not intended to
constitute an “incentive stock option” within the meaning of Section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”).

     The terms and conditions of the Option granted hereby, to the extent not controlled by the
terms and conditions contained in the Plan, are as follows:

1.     The price at which each share of Stock subject to this Option may be purchased shall be the
price set forth above, subject to any adjustments that may be made pursuant to the terms of the
Plan.

2.     Except as provided in Section 12 hereof and in Article 15 of the Plan with respect to a “Change
in Control” of the Company, as such term is defined in Section 2.6 of the Plan, this Option may be
exercised only to the extent that such Option is vested in accordance with the following table:

	 	 	 	 	 
	Number of Shares	 	Not Before	 	Not After
	XX,XXX

	 	1 year from Date of Grant
	 	10 years from Date of Grant
	XX,XXX

	 	2 years from Date of Grant
	 	10 years from Date of Grant
	XX,XXX

	 	3 years from Date of Grant
	 	10 years from Date of Grant

3.     Except as provided in Section 4 hereof, this Option may not be exercised unless, at the time of
exercise, the Optionee is in the employ of the Company or one of its subsidiary corporations
(within the meaning of Section 424(f) of the Code, and each individually referred to herein as a
“Subsidiary”).

4.     This Option shall terminate upon the earliest of the following events:

	 	(a)  	Ten (10) years from the date of this grant;
	 
	 	(b)  	In the case of the termination of the Optionee’s employment with the Company or
Subsidiary, the following rules shall apply in determining the date on which the Option
shall terminate.

 

 

	 	(i)  	If the Optionee dies while employed by the Company or
Subsidiary, the Option shall become fully vested at the date of death and shall
terminate three (3) years after the date of death.
	 
	 	(ii)  	If the Optionee suffers “Total and Permanent Disability” (as
such term is defined in Section 2.37 of the Plan) while employed by the Company
or a Subsidiary, the Option shall become fully vested at the date of the
disability and shall terminate three (3) years after the date of disability.
	 
	 	(iii)  	Upon the Optionee’s “Retirement” (as such term is defined in
Section 2.30 of the Plan), the Option shall become fully vested at the date of
such Retirement, as long as the Optionee shall have attained the age of 55
years at the date of Retirement, and shall terminate three (3) years after the
date of Retirement.
	 
	 	(iv)  	In all other cases, the unexercised portion of the Option to
the extent vested at the date of termination of employment shall terminate on
the earlier of (x) ninety days after the date of termination of employment, or
(y) on the date the Option would otherwise expire pursuant to Section 2 above.

	 	(c)  	Sixty (60) days from and after a Change in Control of the Company, as provided
in Section 12 hereof.

5.     (a)     During the Optionee’s lifetime, this Option may be exercised only by the Optionee, his or
her guardian or representative, or other assignee as set forth below, upon the events and in
accordance with the terms and conditions set forth in the Plan. This Option is generally not
transferable other than by will or the laws of descent and distribution. However, this option may
be transferred to (i) the spouse, children or grandchildren of the Optionee (“Immediate Family
Members”), (ii) a trust or trusts for the exclusive benefit of such Immediate Family Members and
the Optionee, (iii) a partnership in which such Immediate Family Members and the Optionee are the
only partners, (iv) an entity exempt from federal income tax pursuant to Section 501(c)(3) of the
Code or any successor provision, or (v) a split interest trust or pooled income fund described in
Section 2522(c)(2) of the Code or any successor provision, provided that there shall be no
consideration for any such transfer. Subsequent transfers of a transferred Option shall be
prohibited except those by will or by the laws of descent and distribution or pursuant to a
qualified domestic relations order. The assigned portion of an Option shall be exercisable only
by the person or persons who acquire a proprietary interest in the Option pursuant to such
assignment. The terms applicable to the assigned portion shall be the same as those in effect for
the Option immediately prior to such assignment, including without limitation, the terms applicable
to the termination of employment of the Optionee, and shall be set forth in such documents issued
to the assignee as the Company may deem appropriate. This agreement shall be binding on and
enforceable against any person who is a permitted transferee under this Section 5.

        (b)     Any assignment, transfer, pledge, hypothecation or disposition of the Option contrary to
the provisions hereof, and the levy of any attachment or similar process upon the Option that would
otherwise effect a change in the ownership of the Option, shall terminate the Option; provided,
however, that in the case of the involuntary levy of any attachment or similar involuntary
process upon the Option, the Optionee shall have 30 days after notice thereof to cure such levy or
process before the Option terminates.

6.     The Optionee (or his or her representative, guardian, devisee or heir, or other permitted
assignee, as applicable) may exercise any portion of this Option that has become exercisable in
accordance with the terms hereof as to all or any of the shares of Stock then available for
purchase by delivering to the Company written notice specifying:

	 	(a)  	the number of whole shares of Stock to be purchased together with payment in
full of the aggregate option price of such shares, provided that this Option may not be
exercised for

 

 

	 	   	less than fifty (50) shares of Stock or the number of shares of Stock remaining
subject to this Option, whichever is smaller;

	 	(b)  	the date of exercise, which must be at least three days after giving written
notice;
	 
	 	(c)  	the address to which dividends, notices, and reports are to be sent; and
	 
	 	(d)  	the Optionee’s social security number.

7.     Payment in exercise of this Option shall be (i) in cash, certified or cashier’s check, bank
draft, or money order payable to the order of the Company, free from all collection charges; (ii)
by delivery of shares of Stock (including restricted stock of the Company) already owned by the
Optionee and having a fair market value equal to the aggregate Option Price, or by a combination of
cash and shares of Stock, in each case to the extent permitted by applicable law and not in
violation of any instrument or agreement to which the Company is a party; or (iii) by delivery
(including by FAX or by electronic mail) to the Company or its designated agent of an executed
irrevocable option exercise form together with irrevocable instructions from the Optionee to a
broker or dealer, reasonably acceptable to the Company, to sell certain of the shares of Stock
purchased upon exercise of the Option or to pledge such shares as collateral for a loan and
promptly deliver to the Company the amount of sale or loan proceeds necessary to pay such purchase
price (otherwise known as a “cashless exercise”). Only one certificate evidencing the Stock will
be issued unless the Optionee otherwise requests in writing. Shares of Stock purchased upon
exercise of the Option will be issued in the name of the Optionee. The Optionee shall not be
entitled to any rights and privileges as a shareholder of the Company in respect of any shares of
Stock covered by this Option until such shares of Stock shall have been paid for in full and issued
to the Optionee.

8.     (a)     As soon as practicable after the Company receives payment for shares of Stock covered by
this Option, it shall deliver a certificate or certificates representing the shares of Stock so
purchased to the Optionee. Such certificate shall be registered in the name of the Optionee.

        (b)     No shares of Stock are issuable upon the exercise of any Option unless legal counsel to
the Company shall be satisfied that such issuance will be in compliance with all applicable federal
and state securities laws and regulations and any other applicable laws and regulations. The
Committee may require, as a condition of any share issuance, that certain agreements, undertakings,
representations, certificates, and other information, as the Committee may deem necessary or
advisable, be executed or provided to the Company to assure compliance with all such applicable
laws or regulations. Any certificates for shares of Stock delivered under the Plan may be subject
to such stop-transfer orders, restrictive legends, lock-up agreements, and such other restrictions
as the Committee shall deem advisable under the rules, regulations, or other requirements of the
Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, any
applicable federal or state securities law, and any agreements with an underwriter, broker, or
dealer. In addition, if, at the time of the issuance of shares of Common Stock, any law, rule,
regulation, or other requirement of any governmental authority or agency shall require the Company
to take any action in connection with any such shares to be issued, the issuance of such shares
shall be deferred until such required action is taken.

9.     This Option does not confer on the Optionee any right to continue in the employ of the Company
or any Subsidiary or interfere in any way with the right of the Company or any Subsidiary to
determine the terms of the Optionee’s employment.

10.   This Option and the terms and conditions herein set forth are subject in all respects to the
terms and conditions of the Plan, which shall be controlling and are incorporated herein by
reference. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed
to such terms in the Plan. All interpretations or determinations of the Committee, as the
administrator of the Plan, with respect to the Plan and this Option shall be binding and conclusive
upon the Optionee and his or her legal representatives with respect to any question arising
hereunder.

 

 

11.     Except as otherwise provided in the Plan, the Company may make such provisions as it may deem
appropriate for the withholding of any taxes which the Company determines it is required to
withhold in connection with any grant pursuant to the Plan. The Optionee agrees that the full
amount of the taxes which are required to be withheld shall be deposited with the Company prior to
the distribution to the Optionee of any stock certificates. If not otherwise withheld from other
compensation, the applicable withholding taxes shall be payable to the Company in full in cash, or
its equivalent, or, to the extent permitted by applicable law and not in violation of any
instrument or agreement to which the Company is a part by delivery of shares of Stock (not subject
to any security interest or pledge) valued at fair market value at time of exercise, or by
combination of the foregoing, or in any other form of payment acceptable to the Committee. The
Company reserves the right to require any shares of Stock delivered by the Optionee in full or
partial payment of the withholding taxes to be limited to those shares of Stock already owned by
the Optionee for at least six (6) months.

12.     Notwithstanding any other provision hereof or any provision of the Plan, in the event of a
Change in Control, as defined in Section 2.6 of the Plan, if all or any portion of this Option is
unvested as of the date such Change in Control is determined to have occurred, during the 60-day
period from and after a Change in Control (the “Exercise Period”), the Optionee will be required to
surrender the unvested portion of this Option in exchange for a cash payment equal to the amount by
which the then Fair Market Value of the shares of the Company’s Stock subject to the unvested
portion of this Option exceeds the exercise price of the unvested portion of this Option (“Limited
Stock Appreciation Right”). The cash payment made by the Company in settlement of the unvested
portion of this Option shall satisfy all terms and conditions of this Limited Stock Appreciation
Right, and the underlying unvested portion of this Option shall have been cancelled in
consideration of the settlement of the Limited Stock Appreciation Right. To the extent that the
exercise price of the unvested portion of this Option exceeds the Fair Market Value of the
Company’s Stock during and at the close of the Exercise Period, then such Limited Stock
Appreciation Right and unvested portion of this Option shall be automatically terminated and void
on the last day of the Exercise Period.

13.     The Optionee acknowledges and agrees that any powers, rights or responsibilities of the Company
set forth herein may be delegated to and exercised by the Committee as defined in and as permitted
under the Plan.

14.     All notices hereunder to the parties to this Non-Qualified Stock Option Agreement shall be
delivered or mailed to the following addresses:

     If to the Company:

     Atmos Energy Corporation

     1800 Three Lincoln Centre

     5430 LBJ Freeway

     Dallas, TX 75240

     Attention: Vice President, Human Resources

     If to the Optionee:

     XXXXXXX

     XXXXX

     XXXXXXXXXXXXX

     Such addresses for the service of notices may be changed at any time provided notice of such
change is furnished in advance to the other party.

15.     This Non-Qualified Stock Option Agreement shall be governed by and construed in accordance with
the laws of the State of Texas without application of the conflict of laws principles thereof,
except to the extent preempted by federal law, which shall govern to such extent.

 

 

16.     This Non-Qualified Stock Option Agreement may be executed in counterparts, each of which shall
be deemed an original, but which together shall constitute one and the same instrument.

17.     This Non-Qualified Stock Option Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective permitted successors and assigns.

 

 

     IN WITNESS WHEREOF, the undersigned have caused this Non-Qualified Stock Option Agreement to
be duly executed as of the date first above written.

	 	 	 	 	 
	 	ATMOS ENERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Robert W. Best 	 
	 	 	Chairman, President and CEO 	 
	 

	 	 	 	 	 
	 	OPTIONEE:

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