Assignment and Assumption Agreement
This
Assignment and Assumption Agreement (this "Agreement") is dated
this
30th day of April, 2004, and is effective
as of the Effective Time (as defined
herein), by and between DTE MOBILE, LLC, a
Delaware limited liability company
(the "Assignor"), and REGENCY POWER
CORPORATION, a Delaware corporation (the
"Assignee"). The Assignor and the Assignee
are sometimes referred to herein
individually as a "Party" and collectively
as the "Parties."
WITNESSETH
WHEREAS,
MESC Capital, LLC, a Delaware limited liability company (the
"Company"), was formed by virtue of its
Certificate of Formation filed with the
Secretary of State of the State of Delaware
on October 3, 2003, and Assignor is
the sole member of the Company;
WHEREAS,
the Assignor desires to sell, transfer and assign to the
Assignee, and the Assignee desires to
purchase, for such consideration and on
the terms set forth herein, fifty percent
(50%) of the Assignor's limited
liability company interest in the Company
and fifty percent (50%) of the right,
title and interest of the Assignor as a
member of the Company (the "Transferred
Interest"); and
WHEREAS,
simultaneously with the execution and delivery of this
Agreement,
the Parties have entered into that certain
Operating Agreement of MESC Capital,
LLC, dated as of the date hereof (the
"Operating Agreement"), which, in
accordance with its terms, is effective as
of the Effective Time (as defined
herein).
NOW,
THEREFORE, in consideration of the mutual covenants and
agreements
contained in this Agreement, and for good
and valuable consideration, the
receipt and sufficiency of which are hereby
acknowledged, the Parties agree as
follows:
Article I.
ASSIGNMENT
1.1 Payment of Purchase Price. To cause the Assignor to sell,
transfer and assign the Transferred
Interest, the Assignee shall, as of the
Effective Time, pay three million dollars
($3,000,000) to the Assignor (the
"Purchase Price"), in immediately available
funds, by wire transfer in
accordance with the instructions provided
by the Assignor in writing.
1.2 Assignment. In consideration of the payment of the Purchase
Price in accordance with Section 1.1, and
effective as of the Effective Time,
the Assignor hereby irrevocably conveys,
assigns and transfers to the Assignee
all of its right, title and interest in
respect of the Transferred Interest.
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1.3 Assumption. The Assignee hereby accepts, as of the
Effective
Time, the assignment, transfer and
conveyance of the Assignor's right, title and
interest in respect of the Transferred
Interest, and accepts and assumes and
undertakes to perform, and agrees that the
Assignor shall have no obligation or
liability to perform, the obligations and
liabilities of the Assignor in respect
of the Transferred Interest arising at or
after the Effective Time under the
Operating Agreement.
1.4 Admission as Member. Effective as of the Effective Time,
the
Parties agree that the Assignee is hereby
admitted as a member of the Company.
1.5 Effective Time. For purposes hereof, the "Effective Time"
shall
mean the point in time at which all of the
following conditions precedent are
and have been satisfied or otherwise waived
by the Parties:
(a) all representations and warranties contained in Article II
hereof shall be true and correct in all
material respects;
(b) there is not in effect any order or law prohibiting,
restraining or making illegal the
consummation of the transactions contemplated
hereby or by the Transaction Documents (as
defined in the Operating Agreement);
(c) the Purchase Price shall have been paid by Assignee or
arrangements mutually acceptable to
Assignor and Assignee shall have been made
for the payment thereof simultaneous with
the Effective Time;
(d) the Operating Agreement shall have been executed and
delivered by all of the parties thereto in
substantially the form attached as
Exhibit A hereto;
(e) the Closing Capital Contributions (as defined and provided
in the Operating Agreement) shall have been
made or arrangements mutually
acceptable to Assignor and Assignee shall
have been made for the payment thereof
simultaneous with the Effective Time;
(f) the Management Services Agreement (as defined in the
Operating Agreement) shall have been
executed and delivered in substantially the
form attached as Exhibit B hereto;
(g) the Transaction Documents (as defined in the Operating
Agreement, but excluding the Management
Services Agreement, which is referenced
in Section 1.5(f) above) shall have been
executed and delivered and any
conditions precedent specified therein
shall have been satisfied;
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(h) the financing contemplated by the Financing Documents (as
defined in the Operating Agreement) shall
have been consummated and funded;
(i) each relevant Party shall have received executed opinions
of counsel, in form and substance
reasonably acceptable to such Party, dated the
date on which the Effective Time occurs;
and
(j) each Party shall have received final forms of those
engineering reports, environmental reports
and certificates confirming insurance
as are required to be delivered upon the
consummation of the transactions
contemplated under the Transaction
Documents.
Article II.
REPRESENTATIONS AND WARRANTIES
Each
Party, as and to the extent specified below, makes the
following
representations and warranties, as of the
date hereof and as of the Effective
Time, to the other Party:
2.1 Corporate Status and Authorization. Such Party is validly
formed, existing and in good standing under
the applicable laws of the
jurisdiction of its organization. Each
Party has all necessary power and
authority to enter into and perform its
obligations under this Agreement.
2.2 Authorization. The execution, delivery and performance by
such
Party of this Agreement, and the
consummation of the transactions contemplated
hereby, have been authorized by all
necessary corporate or other action on the
part of such Party and do not require any
authorization or approval of any
member or owner of such Party that has not
been given or obtained.
2.3 Validity. This Agreement has been duly executed and delivered
by
such Party and constitutes the valid and
binding obligation of such Party,
enforceable against such Party in
accordance with its terms, except as such
enforceability may be limited by
bankruptcy, insolvency, reorganization,
moratorium and other laws affecting the
rights of creditors generally and by
general principles of equity.
2.4 No Conflict. The execution and delivery of this Agreement,
the
performance of this Agreement by such Party
in accordance with its terms and the
transfer and sale of the Transferred
Interest do not and will not:
(a) violate or conflict with the constitutive documents of (i)
such Party, or (ii) in the case of the
Assignor only, the Company (including the
Operating Agreement);
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(b) violate or conflict with any applicable law or any order,
decree, judgme