Document:

Exhibit 4.1

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE.  NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF OTHER THAN (A) IN ACCORDANCE WITH THE TERMS HEREOF AND (B) PURSUANT TO THE ACT OR UNDER AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT.

 

PROMISSORY NOTE

 

	
$1,250,000,000
    	
 
    	
September 1, 2011
    

 

FOR VALUE RECEIVED, DYNEGY HOLDINGS, LLC, a Delaware limited liability company (“Debtor”), promises to pay DYNEGY GAS INVESTMENTS, LLC, a Delaware limited liability company, or its registered assigns (“Lender”), the principal sum of $1,250,000,000 and to pay interest on the outstanding principal of this Promissory Note (this “Note”), in accordance with Section 2 hereof.

 

1.                                       Maturity.  Debtor shall repay the unpaid principal in full, together with all accrued and unpaid interest thereon, on September 1, 2027 (the “Repayment Date”).  All payments under this Note shall be paid in cash in United States dollars in immediately available funds.

 

2.                                       Interest.  Interest shall accrue and be payable (net of any withholding required by law) on the Repayment Date on the unpaid principal balance of this Note, at the rate of 4.24% per annum (the “Note Rate”), calculated on the basis of a 360-day year consisting of twelve 30-day months and actual days elapsed in the period in which interest accrues (including post-petition interest in any proceeding under the Federal Bankruptcy Code or other applicable bankruptcy or insolvency laws).

 

3.                                       Optional Prepayment.  Debtor may prepay in cash, in whole or in part, at any time and from time to time prior to the Repayment Date, without premium or prepayment penalty, any unpaid principal balance, together with accrued and unpaid interest (to the date of such prepayment).  All payments hereunder shall be credited first to accrued but unpaid interest, and then to principal.

 

4.                                       Manner of Payment.  Payments hereunder shall be made by bank or certified check drawn on immediately available funds or by wire transfer of immediately available funds to such account or accounts that are specified by Lender to Debtor from time to time.

 

5.                                       Organization; Authority; Enforceability; No Conflict.  Debtor is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite limited liability company power and authority to enter into this Note and consummate the transactions contemplated hereby.  This Note has been duly authorized, executed and delivered by Debtor and constitutes a legal, valid and binding obligation of Debtor, enforceable against Debtor in accordance with its terms, subject to bankruptcy, insolvency, moratorium, reorganization or similar laws affecting the rights of

 

 

creditors generally and the availability of equitable remedies.  The execution and delivery of this Note, the incurrence of the obligations set forth in this Note and the performance of such obligations will not violate, or constitute a breach of or default under, the governing documents of Debtor or, to the best of such Debtor’s knowledge, any law, rule, regulation, order, license, permit, consent, authorization or approval applicable to Debtor of any court or any governmental body or administrative agency or self-regulatory authority having jurisdiction over Debtor or its property.

 

6.                                       Default.  For purposes of this Note, the term “Default” shall mean any of the following:

 

(a)                                  The failure by Debtor to pay any principal amount of this Note when and as the same shall become due and payable;

 

(b)                                 The failure by Debtor to pay any interest on this Note or any fee or other amount (other than an amount referred to in clause (a) above) payable hereunder, when and as the same shall become due and payable;

 

(c)                                  Debtor or any direct or indirect subsidiary of Debtor shall (i) make an assignment for the benefit of creditors or petition or apply to any tribunal for the appointment of a custodian, receiver or trustee for it or a substantial part of its assets, (ii) commence any proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect, (iii) have had any such petition or application filed or any such proceeding commenced against it that is not dismissed within 30 days, (iv) indicate, by any act or intentional and purposeful omission, its consent to, approval of or acquiescence in any such petition, application, proceeding or order for relief or the appointment of a custodian, receiver or trustee for it or a substantial part of its assets, or (v) suffer any such custodianship, receivership or trusteeship to continue undischarged for a period of 60 days or more; or

 

(d)                                 Debtor or any direct or indirect subsidiary of Debtor shall adopt a plan of liquidation or dissolution, or the certificate of incorporation of Debtor shall expire or be revoked.

 

Debtor shall promptly inform Lender of the occurrence of any of the events described in this Section 6. Upon each such Default, Lender may, at its option, exercised by delivering written notice to Debtor, accelerate repayment of this Note, in which case the principal amount outstanding under this Note and all interest accrued thereon shall be due and payable immediately; provided, that if there shall occur a Default described in subparagraph (c) or (d) above, the entire unpaid balance of principal with interest accrued thereon shall be immediately due and payable without the giving of notice or the taking of any other action by Lender.

 

7.                                       Default Interest.  Any amount in default under this Note shall bear interest from and after the date of such default at the Note Rate plus two percent (2%) per annum.

 

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8.                                       Replacement of the Note.  Upon receipt by Debtor of notice from Lender of the loss, theft, destruction or mutilation of this Note (and upon surrender of this Note if mutilated) and an indemnity in favor of Debtor, reasonably acceptable to Debtor (which indemnity shall be deemed to be acceptable even if it is an unsecured indemnity of Lender), against any loss, cost, expense, liability or claim as a result of the presentation of the original Note by any other person, Debtor shall execute and deliver to Lender a replacement Note of like date, tenor and denomination.

 

9.                                       Notices.  Any notice or communication shall in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier or facsimile transmission and in the case of telecopier or facsimile transmission, with copies by overnight courier service or registered mail to the respective parties as follows (or, in each case, as otherwise notified by any of the parties hereto) and shall be effective and deemed to have been given (i) immediately when sent by telecopier or facsimile between 9:00 A.M. and 6:00 P.M. (Houston, Texas time) on any business day (and when sent outside of such hours, at 9:00 A.M. (Houston, Texas time) on the next business day), and (ii) when received if delivered by hand or overnight courier service or certified or registered mail on any business day:

 

If to Debtor:

 

Dynegy Holdings, LLC

1000 Louisiana Street, Suite 5800

Houston, TX 77002

Attention: Chief Financial Officer

Fax: 713-356-2993

 

If to Lender:

 

Dynegy Gas Investments, LLC

1000 Louisiana Street, Suite 5800

Houston, TX 77002

Attention: General Counsel

Fax: 713-356-2993

 

10.                                 Miscellaneous.

 

(a)                                  Debtor hereby waives presentment, demand, protest, notice of dishonor, diligence and all other notices, any release or discharge arising from any extension of time, discharge of a prior party, release of any or all of any security given from time to time for this Note.

 

(b)                                 Any term of this Note may be amended or waived with the prior written consent of each party hereto.  No party hereto shall be deemed, by any act or omission, to have waived any of its rights or remedies hereunder unless such waiver is in writing and signed by such party and then only to the extent specifically set forth in such writing.  A waiver with reference to one event shall not be construed as continuing or as a bar to or

 

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waiver of any right or remedy as to a subsequent event.  No delay or omission of Lender to exercise any right, whether before or after the occurrence of a Default hereunder, shall impair any such right or shall be construed to be a waiver of any right or Default, and the acceptance at any time by Lender of any past-due amount shall not be deemed to be a waiver of the right to require prompt payment when due of any other amounts then or thereafter due and payable.

 

(c)                                  Upon any Default hereunder, Lender may exercise all rights and remedies provided for herein and by law or equity or otherwise, including, but not limited to, the right to immediate payment in full of this Note.

 

(d)                                 The rights and remedies of Lender as provided herein, or any one or more of them, or in law or in equity, shall be cumulative and concurrent, and may be pursued singularly, successively or together at Lender’s sole discretion and may be exercised as often as occasion therefor shall occur.

 

(e)                                  This Note shall be governed by, and construed in accordance with, the laws of the State of New York without regard to conflict of law principles (other than sections 5-1401 and 5-1402 of the New York General Obligations Law).

 

(f)                                    This Note shall be binding upon the parties and their respective successors and assigns.  This Note may not be assigned or transferred by either party hereto without the prior written consent of the other party, such consent not to be unreasonably witheld; provided, however, that Lender may assign this Note to a Permitted Transferee (as defined below) without the prior written consent of Debtor.  “Permitted Transferee” shall mean any individual, corporation, limited liability company, partnership or other entity that, directly or indirectly, controls, is controlled by, or is under common control with Lender; provided that, for the purposes of this definition, “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such individual or entity, whether through the ownership of voting securities, by agreement or otherwise.

 

(g)                                 If any provision of this Note is held to be invalid, illegal, void or unenforceable by a court of competent jurisdiction, the other provisions of this Note shall remain in full force and effect and shall be liberally construed in order to effect the provisions of this Note.  It is hereby stipulated and declared to be the intention of Debtor and Lender that they would have executed the remaining terms and provisions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

(h)                                 The headings contained in this Note are for reference purposes only and shall not affect in any way the meaning or interpretation of this Note.

 

(i)                                     All payments (including prepayments) to be made by Debtor hereunder, whether on account of principal, interest or otherwise, shall be made no later that 2:00 p.m. New York City time on the date when due without setoff or counterclaim.

 

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(j)                                     This Note constitutes the entire understanding between Debtor and Lender with respect to the subject matter hereof and supersedes any prior agreements, written or oral, with respect thereto.

 

[signature page follows]

 

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IN WITNESS WHEREOF, Debtor has executed this Note as of the date first above written.

 

	
 
    	
DYNEGY   HOLDINGS, LLC  as Debtor    
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Clint C. Freeland 
    
	
 
    	
 
    	
Name:   Clint C. Freeland 
    
	
 
    	
 
    	
Title:   Chief Financial Officer
    

 

6Exhibit 10.1

 

ASSIGNMENT AGREEMENT

 

This Assignment Agreement (the “Agreement”), is dated September 1, 2011 by and among Dynegy Gas Investments, LLC (“Assignor”), a limited liability company organized under the laws of the State of Delaware, Dynegy Holdings, LLC (“Assignee”), a limited liability company organized under the laws of the State of Delaware, and Dynegy Inc. (“Obligor”), a corporation organized under the laws of the State of Delaware.

 

WHEREAS, Assignor and Obligor are party to that certain Undertaking Agreement, dated as of the date hereof (the “Undertaking”), pursuant to which Obligor agreed to make certain payments to Assignor as set forth on Annex B to the Undertaking;

 

WHEREAS, Assignor has agreed to assign to Assignee the Undertaking and Assignee has agreed to assume the Undertaking (as amended and restated) and issue the Note (as defined below);

 

WHEREAS, Obligor is willing to consent to the assignment by Assignor of the Undertaking to Assignee and to the admission of Assignee as the substitute Beneficiary under the Undertaking as of the date hereof, upon the terms and conditions hereinafter set forth, including the express condition that the Assignee agree to the Amended and Restated Undertaking attached hereto as Exhibit A (the “Amended and Restated Undertaking”);

 

NOW, THEREFORE, in consideration of the mutual agreements, covenants and conditions contained herein, and other good and valuable consideration:

 

Section 1.                                            Definitions. Capitalized words used but not defined herein shall have the meanings given to them in the Undertaking.  Additional defined terms used herein shall have the respective meanings assigned thereto in the Sections indicated on Annex A.

 

Section 2.                                            Construction.  In this Agreement, unless the context otherwise requires: (a) references to “writing” or comparable expressions include a reference to facsimile transmission or comparable means of communication; (b) the phrases “delivered” or “made available” shall mean that the information referred to has been physically or electronically delivered to the relevant parties; (c) words expressed in the singular number shall include the plural and vice versa; words expressed in the masculine shall include the feminine and neuter gender and vice versa; (d) references to Articles, Sections, Annexes, Exhibits, the Preamble and Recitals are references to articles, sections, annexes, exhibits, the preamble and recitals of this Agreement, and the descriptive headings of the several Articles and Sections of this Agreement are inserted for convenience only, do not constitute a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement; (e) whenever this Agreement refers to a number of days, that number shall refer to calendar days unless Business Days are specified and whenever any action must be taken under this Agreement on or by a day that is not a Business Day, then that action may be validly taken on or by the next day that is a Business Day; (f) the words “hereof”, “herein”, “hereto” and “hereunder”, and words of similar import, shall refer to this Agreement as a whole and not to any provision of this Agreement; (g) this “Agreement” or any other agreement or document shall be construed as a reference to this 

 

 

Agreement or, as the case may be, such other agreement or document as the same may have been, or may from time to time be, amended, varied, novated or supplemented; (h) “include”, “includes”, and “including” are deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of similar import; and (i) references to “Dollars”, “dollars” or “$”, without more are to the lawful currency of United States of America.

 

Section 3.                                            Assignment; Note.

 

(a)                                  In consideration for Assignee issuing to Assignor the Note (as defined below), Assignor hereby assigns to Assignee all of Assignor’s right, title and interest in and to the Undertaking, and all of Assignor’s rights, claims and causes of action related thereto.

 

(b)                                 Contemporaneously herewith, Assignee is issuing to Assignor a Promissory Note substantially in the form attached hereto as Exhibit B (the “Note”).

 

Section 4.                                            Representations and Warranties.

 

(a)                                  Assignor hereby represents and warrants to Assignee and Obligor that Assignor has the power, authority and legal capacity, and is duly authorized, to enter into this Agreement and perform its obligations hereunder and this Agreement is a valid and binding obligation of Assignor.

 

(b)                                 Assignee hereby represents and warrants to Assignor and Obligor that Assignee has the power, authority and legal capacity, and is duly authorized, to enter into this Agreement and the Amended and Restated Undertaking and perform its obligations hereunder and thereunder and this Agreement and the Amended and Restated Undertaking are valid and binding obligations of Assignee.

 

(c)                                  Obligor hereby represents and warrants to Assignor and Assignee that Obligor has the power, authority and legal capacity, and is duly authorized, to enter into this Agreement and the Amended and Restated Undertaking and perform its obligations hereunder and thereunder and this Agreement and the Amended and Restated Undertaking are valid and binding obligations of Obligor.

 

Section 5.                                            Consent to Assignment.

 

(a)                                  In reliance on the representations and warranties of Assignor and Assignee herein and the condition that Obligor and Assignee enter into the Amended and Restated Undertaking, Obligor hereby consents, in accordance with Section 5.3 of the Undertaking, to the transfer of the Undertaking to Assignee by Assignor and agrees that Assignee shall be entitled to all of the right, title, interest, claims and causes of action related thereto.

 

(b)                                 Obligor hereby releases Assignor from all liabilities and obligations relating to the Undertaking and the Amended and Restated Undertaking and agrees that Assignee shall henceforth be solely liable for all such obligations.

 

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Section 6.                                            Miscellaneous.

 

(a)                                  Binding Effect; Benefit; Assignment.  This Agreement shall inure to the benefit of and be binding upon the parties hereto. No Person not party to this Agreement shall be entitled to the benefits of this Agreement.  Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto without the prior written consent of the other party. Any attempted assignment in violation of this Section 6(a) will be void.

 

(b)                                 Amendment and Modification.  This Agreement may not be amended except by a written instrument executed by all parties to this Agreement.  No consent of any other Person (including any holder of Reference Notes) shall be required in connection with an amendment of this Agreement.

 

(c)                                  Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument. Signed counterparts of this Agreement may be delivered by facsimile and by scanned .pdf image.

 

(d)                                 Applicable Law.  THIS AGREEMENT AND THE LEGAL RELATIONS BETWEEN THE PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAWS RULES THEREOF.  THE STATE OR FEDERAL COURTS LOCATED WITHIN NEW YORK COUNTY IN THE STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN THE PARTIES HERETO, WHETHER IN LAW OR EQUITY, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY AND THE PARTIES CONSENT TO AND AGREE TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS. EACH OF THE PARTIES HEREBY WAIVES AND AGREES NOT TO ASSERT IN ANY SUCH DISPUTE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY CLAIM THAT (A) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, (B) SUCH PARTY AND SUCH PARTY’S PROPERTY IS IMMUNE FROM ANY LEGAL PROCESS ISSUED BY SUCH COURTS OR (C) ANY LITIGATION OR OTHER PROCEEDING COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT FORUM.

 

THE PARTIES HEREBY AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING IN THE MANNER PROVIDED IN SECTION 5.1 OF THE UNDERTAKING, OR IN SUCH OTHER MANNER AS MAY BE PERMITTED BY LAW, SHALL BE VALID AND SUFFICIENT SERVICE THEREOF AND HEREBY WAIVE ANY OBJECTIONS TO SERVICE ACCOMPLISHED IN THE MANNER HEREIN PROVIDED.

 

(e)                                  Severability.  If any term, provision, covenant or restriction contained in this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void, unenforceable or against its regulatory policy, the remainder of the terms, provisions, covenants and restrictions contained in this Agreement shall remain valid and binding and shall in no way be affected, impaired or invalidated, and this Agreement shall be reformed, construed and 

 

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enforced in such jurisdiction as if such invalid, illegal or unenforceable term, provision, covenant or restriction or any portion thereof had never been contained herein.

 

(f)                                    Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES, AND SHALL CAUSE ITS SUBSIDIARIES AND AFFILIATES TO WAIVE, ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(g)                                 Headings.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

[Remainder of page intentionally left blank.]

 

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

 

 

	
 
    	
Dynegy   Gas Investments, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/ Kent R. Stephenson
    
	
 
    	
 
    	
Name:   Kent R. Stephenson
    
	
 
    	
 
    	
Title:   Executive Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Dynegy Holdings, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Clint C. Freeland
    
	
 
    	
 
    	
Name:   Clint C. Freeland
    
	
 
    	
 
    	
Title:   Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Dynegy Inc.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Clint C. Freeland
    
	
 
    	
 
    	
Name:   Clint C. Freeland
    
	
 
    	
 
    	
Title:   Chief Financial Officer
    

 

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Annex A:   Additional Defined Terms

 

	
Defined Term
    	
 
    	
Section
    
	
 
    	
 
    	
 
    
	
Agreement
    	
 
    	
Preamble
    
	
Amended   and Restated Undertaking
    	
 
    	
Third Recital
    
	
Assignee
    	
 
    	
Preamble
    
	
Assignor
    	
 
    	
Preamble
    
	
Note
    	
 
    	
Section 3(b)
    
	
Obligor
    	
 
    	
Preamble
    
	
Undertaking
    	
 
    	
First Recital
    

 

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Exhibit A:   Amended and Restated Undertaking

 

See attached.

[See Exhibit 2.3 attached to Dynegy Holdings, LLC Current Report on Form 8-K filed September 8, 2011]

 

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Exhibit B:   Promissory Note

 

See attached.

[See Exhibit 4.1 attached to Dynegy Holdings, LLC Current Report on Form 8-K filed September 8, 2011]

 

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