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EXHIBIT 10.20
CONDITIONAL ASSIGNMENT AND ASSUMPTION OF LEASE
THIS CONDITIONAL ASSIGNMENT AND ASSUMPTION OF LEASE
("Assignment") is made
and entered into effective as of the Effective Date, as set
forth in Section 5
herein, by and between AMERICAN COMMERCIAL TERMINALS LLC, a
Delaware limited
liability company ("Assignor"), and NRG NEW ROADS HOLDINGS LLC,
a Delaware
limited liability company ("Assignee").
WITNESSETH:
WHEREAS, The Burlington Northern and Santa Fe Railway Company
("BNSF"),
American Commercial Barge Line LLC ("ACBL") and Assignor entered
into a
Memoranda of Understanding with NRG Power Marketing Inc.
("NRGPM"), and BNSF and
Assignor entered into another Memorandum of Understanding with
NRGPM
(collectively, "MOU"), each dated August 6, 2004, both for the
purpose of
setting forth the major terms and conditions under which
Assignor and BNSF will
transport unit trains of coal from BNSF-served origins in the
Powder River Basin
of Wyoming to Assignor's Hall Street Terminal at St. Louis,
Missouri, for
furtherance to the Big Cajun No. II facility near New Roads,
Louisiana (the "LG
Power Plant"); and
WHEREAS, the LG Power Plant is owned by Louisiana Generating
LLC, a
Delaware limited liability company and affiliate/subsidiary of
Assignee and
NRGPM ("LG"); and
WHEREAS, pursuant to the MOU, the parties thereto agreed to
negotiate the
definitive terms and conditions of a transportation contract by
and between LG,
BNSF and Assignor (the "Transportation Contract") as provided
therein; and
WHEREAS, the parties have entered into Security Side Letter
Agreement
("Security Side Letter Agreement"), pursuant to which American
Commercial Lines
LLC ("ACL"), ACBL and Assignor (collectively, "American") has
agreed to provide
certain assurances as additional security for its obligations
under the
Transportation Contract; and
WHEREAS, pursuant to that certain Lease dated as of August 17,
1976,
entered into between Burlington Northern Inc., a Delaware
corporation,
predecessor in interest to BNSF ("Landlord"), as landlord, and
ACBL Western,
Inc., a Delaware corporation, predecessor in interest to
Assignor, as tenant,
and all amendments, modifications, supplements and extensions
thereto (as
amended and modified, the "Lease") copies of which are attached
hereto as
EXHIBIT A, Assignor leases from Landlord that certain real
property commonly
known as the "Premises", as more fully described in the Lease;
and
WHEREAS, pursuant to the Security Side Letter Agreement,
Assignor and
Assignee have agreed to enter into this Assignment, pursuant to
which Assignor
will make a conditional assignment of the Lease to Assignee,
which assignment is
conditioned upon the occurrence of a Trigger Event (as defined
in the Security
Side Letter Agreement) and Assignee's timely exercise of the
Terminal Option (as
defined in the Security Side Letter Agreement) and consummation
of the purchase
of the Property pursuant to the Terminal Option Agreement dated
of even date
herewith (the "Terminal Option Agreement"); and
WHEREAS, Assignor desires to conditionally assign its interest
in the
Lease to Assignee, and Assignee desires to accept the assignment
thereof, on the
terms and pursuant to the conditions set forth herein; and
WHEREAS, the Transportation Contract and the Ancillary
Agreements (as
defined in the Security Side Letter Agreement) form the basis
for the coal
transportation described above.
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NOW THEREFORE, in consideration of the promises and conditions
contained
herein, and other good and valuable consideration, the receipt
and sufficiency
of which is hereby acknowledged, the parties hereby agree as
follows:
1. Assignor does hereby conditionally sell, grant, convey,
assign,
transfer and set over to Assignee all of the right, title and
interest of
Assignor in and to the Lease (including but not limited to all
renewal options
and rights, all security deposits), which assignment and
conveyance shall only
be effective upon Assignor's receipt from Assignee, within
ninety (90) days of a
Trigger Event, of a written notice electing to enforce this
Assignment (the
"Assignment Date"); and provided further that Assignee must also
timely exercise
the Terminal Option and consummate the purchase of the Property
pursuant to the
Terminal Option Agreement.
2. Assignee does hereby accept the assignment set forth above,
and for the
benefit of Assignor does hereby assume and agree to be bound and
abide by all
covenants, agreements and undertakings of Assignee as tenant, as
they apply from
and after the Assignment Date, under the Lease.
3. Assignor represents and confirms unto Assignee that the Lease
is in
full force and effect, unchanged and unmodified; that there are
no defaults by
Assignor, as of the date of execution of this Assignment by
Assignor, under the
Lease; and that Assignor is not aware of any conditions or
circumstances which,
by lapse of time or upon the giving of notice or both, would
result in Landlord,
Assignor or Assignee being in default under the Lease; and that
Assignee has
paid all rental obligations and other charges due under or
arising out of the
Lease up to and including the date of execution of this
Assignment by Assignor.
4. Assignee hereby agrees to indemnify and hold harmless
Assignor from any
and all loss, damage, claim or liability (including reasonable
attorney's fees)
arising from or under the Lease after the Assignment Date.
5. The "Effective Date" of this Assignment shall be the
Effective Date as
defined in the Security Side Letter Agreement. In addition to
the foregoing,
this Assignment shall not be enforceable against the parties
hereto unless and
until the definitive Transportation Contract has been entered
into among the
parties thereto.
6. Assignor agrees to obtain the consent of Landlord to this
Assignment in
the form attached hereto as EXHIBIT B.
7. For so long as Assignor has outstanding obligations under
the
Transportation Contract and the Ancillary Agreements remain in
effect, the
terms, conditions and covenants of this Assignment shall be
binding upon and
shall inure to the benefit of each of the parties to this
Assignment, their
heirs, successors or assigns, shall run with the land, and may
be amended,
waived or terminated only by an agreement in writing signed by
both parties,
their successors or assigns.
8. This Assignment may be executed in multiple counterparts,
each of which
shall be deemed an original, but all of which shall constitute
one and the same
instrument. For purposes of executing this Assignment, a
document signed and
transmitted by facsimile machine or telecopier is to be treated
as an original
document. At the request of either party, the other will confirm
facsimile
signature by signing an original instrument.
9. The laws of the State of Missouri shall govern the
interpretation,
validity, performance and enforcement of this Assignment.
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IN WITNESS WHEREOF, Assignor and Assignee have executed this
Assignment,
effective as of the date set forth below their signatures.
ASSIGNOR: ASSIGNEE:
AMERICAN COMMERCIAL TERMINALS LLC, NRG NEW ROADS HOLDINGS
LLC,
a Delware limited liability company a Delware limited liability
company
By: /s/ W N Whitlock By: /s/ John P. Brewster
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Name: W N Whitlock Name: John P. Brewster
Title: President Title: President
Date: 12-10-04 Date: 12/10/04
SIGNATURE PAGE TO CONDITIONAL ASSIGNMENT AND ASSUMPTION OF
LEASE
(BNSF LEASE)
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EXHIBIT A TO CONDITIONAL ASSIGNMENT AND ASSUMPTION OF LEASE
(COPY OF LEASE)
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Indefinite Term Lease
No. 222,839
THIS LEASE made this 17th day of August, 1976 between BURLINGTON
NORTHERN
INC., a Delaware corporation, hereinafter called "Lessor", and
ACBL WESTERN,
INC., a Delaware corporation,
whose post office address is 1701 East Market Street,
Jeffersonville, Indiana
47130 hereinafter called "Lessee",
WITNESSETH:
In consideration of the covenants hereinafter contained to be
kept and
performed by Lessee, Lessor hereby leases to Lessee upon the
terms and
conditions hereinafter set forth the following described
premises situate in the
City of St. Louis, County of St. Louis, State of Missouri.
All that part of premises of the said lessor as shown outlined
red on the
print hereto attached, marked Exhibit "A" dated August 12, 1976
and made a part
hereof.
SAVING AND RESERVING to Lessor the right to construct, maintain
and
operate a railroad track or tracks; to construct, maintain and
use buildings or
other structures for railroad purposes located or to be located
upon any part of
the above described premises not occupied by the buildings and
structures
hereinafter mentioned; to construct, maintain and use or to
permit to be
constructed, maintained and used by others any existing or
additional pipe,
telegraph, telephone or power transmission line upon over or
beneath the said
premises; to make any change in or any part thereof for railroad
purposes; and
further saving and reserving to Lessor the right to enter
thereon for any one or
more of such Purposes without payment to Lessee of any sum for
damage of any
nature which may be caused thereby.
Lessee hereby leases said premises from Lessor for the term
hereof subject
to the covenants and promises following which Lessee agrees to
observe and
perform, to-wit:
1. Lessee shall use and occupy said premises for the sole and
exclusive
purpose of constructing, maintaining, and operating thereon a
non-exclusive
roadway, overhead conveyors and rail-barge coal handling
facility shown outlined
red on said Exhibit "A" together with temporary roadway and
construction area
shown batched red on said Exhibit "A".
No other buildings, structures, additions, alterations or
improvements shall be
erected or made on the premises by Lessee or at the direction of
Lessee, save
with the express permission of Lessor in writing and at the sole
cost of Lessee.
2. Lessee shall pay annually, in advance, as rental for said
premises the
sum of Twelve thousand and no/100 Dollars ($12,000.00).
3. Lessor reserves the right to change the rental stipulated
herein at any
time while this lease remains in effect.
4. Lessee shall pay all taxes, license fees or other charges
which may
become due or which may be assessed against said premises,
against Lessee,
against the business conducted on said premises or against any
and all
improvements placed thereon during the term hereof, except
special assessments
for public improvements. Lessee shall reimburse Lessor for any
such taxes,
license fees or other charges which may be paid by Lessor
promptly upon the
presentation by Lessor or bills for the amount thereof, and in
default of such
reimbursement, all sums so paid by Lessor shall be deemed to be
and shall be
treated as additional rental and recoverable as such
hereunder.
In the event that the premises hereby demised, or any part
thereof, shall
be subject to any spacial assessment for any public-improvement
or improvements,
the rental herein reserved and stipulated to be paid by Lessee
shall be
automatically increased by an amount equal to [ ] per annum on
the total amount,
of the assessment.
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5. Lessee shall not place or permit to be placed or to remain,
any
material, structure, pole or other obstruction within 8.5 feet
laterally of the
center line or within 23 feet vertically from the top of rail of
any track
located on or near said premises; provided that if by statute or
order of
competent public authority greater clearances shall be required
than those
provided for in this paragraph, then Lessee shall strictly
comply with such
statute or order.
No building or structure erected on said premises shall have a
swinging
door or window opening towards any railroad track which, when
open, will
restrict the clearance to less than 8.5 feet from the center
line of such track.
Lessee shall not nor shall Lessee foster, sanction or permit
others to
operate any equipment, motor driven or otherwise, for the
purpose of serving
Lessee, upon, or across any railroad track located on or
adjacent to the demised
premises except at established crossings.
Lessee agrees to indemnify and save harmless Lessor from all
loss, damage,
penalties, costs or judgments that may be assessed against or
recovered from it
on account of or in any manner arising or growing out of a
violation of the
provisions of this paragraph 5.
6. Lessee, at Lessee's sole costs and expense, shall install and
maintain
adequate facilities for fire protection in all buildings and
structures upon
said premises. Lessee also, at Lessee's sole cost and expense,
shall observe
and comply with all the rules, regulations and orders of any
duly constituted
authority and of any board of fire underwriters having
jurisdiction of said
premises and all provisions of any fire insurance policy
covering said premises.
7. Lessee shall not permit the existence of any nuisance on said
premises;
shall maintain and keep the same in proper, clean, safe end
sanitary condition
and free and clear of any explosive, flammable or combustible
material which
would increase or tend to increase the risk of fire, except for
such material as
may be necessary to Lessee's business; and, further, Lessee
shall keep, observe
and comply with all federal, state and local regulations,
ordinances and
laws, and with the regulations of any duly constituted legal
authority having
jurisdiction of the premises, and at Lessee's sole cost shall
make any and all
improvements, alterations, repairs and additions and install all
appliances
required on said premises by or under any such regulations,
ordinances or laws.
Lessee shall not place or permit to be placed any advertising
matter upon any
part of said premises or upon any improvements thereon, except
such as is
necessary to advertise Lessee's own business,
8. Lessee, at Lessee's sole cost and expense, shall keep the
premises
hereby demised in good condition and shall make all repairs and
renewals that
from time to time may be necessary to keep any improvement which
may be located
thereon in good condition and repair and ready and fit for
occupancy; and on
termination of this lease, either by expiration of the term
hereof or by
cancellation, or otherwise, shall surrender said demised
premises in a condition
satisfactory to Lessor and shall fill and level all excavations
and remove and
level all obstructions above ground at Lessee's sole cost and
expense. In the
event of Lessee's failure to do so, Lessor may do said work end
Lessee shall
reimburse Lessor for the cost end expense thereof.
9. (a) It is understood by the parties that said premises are in
dangerous
proximity to the tracks of Lessor and that property on said
premises will be in
danger of injury or destruction by fire incident to the
operation, maintenance
or improvement of the railway, and Lessee accepts this lease
subject to such
dangers. It is therefore agreed, as one of the material
considerations of this
lease without which the same would not be granted, that Lessee
assumes all risk
of loss, damage or destruction by fire to buildings or contents
or to any other
property brought upon or in proximity to said premises by
Lessee, or by any
other person with the consent or knowledge of Lessee, without
regard to whether
such fire be the result of negligence or misconduct of any
person in the employ
or service of Lessor or of defective appliances, engines or
machinery, except to
the premises of Lessor and to rolling stock belonging to Lessor
or to others,
and to shipments of third parties in the course of
transportation. Lessee hereby
indemnifies and agrees to protect Lessor from all such loss,
damage or
destruction to property, including claims and causes of action
asserted against
Lessor by any insurer of said property.
(b) Lessee also agrees to indemnify and hold harmless Lessor for
loss,
damage, injury or death from any set or omission of Lessee,
Lessee's invitees,
licensees, employees, or agents, to the person or property of
the parties hereto
and their employees, and to the person or property of any other
person or
corporation while on or near said premises; and if any claim or
liability, other
than from fire, shall arise from the joint or concurring
negligence of both
parties hereto, it shall be borne by them equally.
10. It is agreed that the provisions of paragraphs 5 and 9 are
for the
equal protection of any other railroad company or companies
heretofore or
hereafter granted the joint use of Lessor's property, of which
said premises are
a part.
11. (a) Without the written consent of Lessor. Lessee shall not
assign
this lease or any interest therein, or sublet, and no heir,
executor,
administrator, receiver, master, sheriff, trustee in bankruptcy,
or other
assignee by operation of law shall assign or sublet without such
written
consent.
(b) In the event of assignment of th
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