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THE EMPIRE DISTRICT ELECTRIC COMPANY FIRST MORTGAGE BONDS STANDARD PURCHASE PROVISIONS

Mortgage Loan Purchase Agreement

THE EMPIRE DISTRICT ELECTRIC COMPANY

 

 

                              FIRST MORTGAGE BONDS

 

 

                          STANDARD PURCHASE PROVISIONS | Document Parties: THE EMPIRE DISTRICT ELECTRIC COMPANY You are currently viewing:
This Mortgage Loan Purchase Agreement involves

THE EMPIRE DISTRICT ELECTRIC COMPANY

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Title: THE EMPIRE DISTRICT ELECTRIC COMPANY FIRST MORTGAGE BONDS STANDARD PURCHASE PROVISIONS
Governing Law: New York     Date: 10/17/2005
Industry: Electric Utilities     Sector: Utilities

THE EMPIRE DISTRICT ELECTRIC COMPANY

 

 

                              FIRST MORTGAGE BONDS

 

 

                          STANDARD PURCHASE PROVISIONS, Parties: the empire district electric company
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                                                                    Exhibit 1(c)

 

 

                      THE EMPIRE DISTRICT ELECTRIC COMPANY

 

 

                              FIRST MORTGAGE BONDS

 

 

                          STANDARD PURCHASE PROVISIONS

 

 

                                    INCLUDING

 

 

                           FORM OF PURCHASE AGREEMENT

 

 

 

 

 

<PAGE>

 

 

 

 

 

                      The Empire District Electric Company

 

                           Form of Purchase Agreement

 

                               First Mortgage Bonds

 

 

 

 

                                                             -------------------

                                                                    (Date)

 

 

The Empire District Electric Company

602 Joplin Street

Joplin, Missouri   64801

 

Ladies and Gentlemen:

 

     We refer to the First Mortgage Bonds of The Empire District Electric

Company (the "Company"), a Kansas corporation, covered by Registration Statement

No. 333-______, which became effective on _________________ (the "Registration

Statement"). On the basis of the representations, warranties and agreements

contained in this Agreement, but subject to the terms and conditions herein set

forth, the purchaser or purchasers named in Schedule A hereto (the "Purchasers")

agree to purchase, severally, and the Company agrees to sell to the Purchasers,

severally, the respective principal amounts of the Company's First Mortgage

Bonds referred to below (the "Purchased Bonds") set forth opposite the name of

each Purchaser on Schedule A hereto.

 

     The price at which the Purchased Bonds shall be purchased from the Company

by the Purchasers shall be ______% plus accrued interest, if any, from

____________. The initial public offering price shall be _____% plus accrued

interest, if any, from ______________. The Purchased Bonds will be offered as

set forth in the Prospectus Supplement relating to such Purchased Bonds.

 

                  The Purchased Bonds will have the following terms:

 

                  Title of Bonds:

 

                   Interest Rate:                           ___% per annum

 

                  Interest Payment Dates:                  ______________

 

                  Maturity:                                ______________

 

                  Redemption Provisions:                    ______________

 

                  Sinking Fund:                            ______________

 

                  The "Closing Date" (as defined in

                  Section 2 of the Company's Standard

                  Purchase Provisions

 

 

<PAGE>

                                      -2-

 

 

 

                  -- First Mortgage

                  Bonds) shall be:

                                                          ______________

 

                  The closing of the purchase and sale

                   of the Purchased Bonds shall take

                  place at:                                ______________

 

                  The purchase price for the Purchased

                  Bonds shall be paid by:

                                                           ______________

                  The funds used to pay for the

                  Purchased Bonds shall be:                ______________

 

                  Other:                                   ______________

 

                  Delayed Delivery                         [Authorized]/[Not

                  Contracts:                               authorized]

 

                      [Delivery Date                       ______________

 

                  Minimum principal amount of

                  Purchased Bonds to be sold

                  pursuant to any Delayed Delivery

                  Contract:

                                                          ______________

 

                  Maximum aggregate principal amount

                  of Purchased Bonds to be

                  sold pursuant to all Delayed

                  Delivery Contracts:

 

                                                          ______________

 

                  Compensation to Purchasers:              ______________](a)

 

 

     Notice to the Purchasers shall be sent to the addresses as set forth on

Schedule A hereto.

 

     If we are acting as Representative(s) for the several Purchasers named in

Schedule A hereto, we represent that we are authorized to act for such several

Purchasers in connection with this financing, and that, if there are more than

one of us, any action under this Agreement taken by any of us will be binding

upon all the Purchasers.

 

 

----------

 

(a)   To be used if Delayed Delivery Contracts are authorized.

 

<PAGE>

                                      -3-

 

 

     All of the provisions contained in the document entitled "The Empire

District Electric Company, Standard Purchase Provisions--First Mortgage Bonds,"

a copy of which has been previously furnished to us (the "Standard Purchase

Provisions"), are hereby incorporated by reference in their entirety and shall

be deemed to be a part of this Agreement to the same extent as if such

provisions had been set forth in full herein.

 

 

 

<PAGE>

                                       -4-

 

 

 

 

     If the foregoing is in accordance with your understanding of our agreement,

kindly sign and return to us the enclosed duplicate hereof, whereupon it will

become a binding agreement between the Company and the several Purchasers in

accordance with its terms.

 

                             Very truly yours,

 

 

                             [NAME OF PURCHASER]

 

 

                             By:

                                 ----------------------------------------

                                     Name:

                                    Title:

                                    Acting on behalf of itself and as

                                    Representative(s) of the several

                                    Purchasers named in

                                    Schedule A hereto.(a)

 

 

 

The foregoing Purchase

Agreement is hereby confirmed

as of the date first above written

 

THE EMPIRE DISTRICT ELECTRIC COMPANY

 

 

By: _______________________________

       Name:

        Title:

 

 

 

 

----------

 

(a)   To be deleted if the Purchase Agreement is not executed by one or more

     Purchasers acting as Representative(s) of the Purchasers for purposes of

     this Agreement.

 

 

 

<PAGE>

 

 

 

 

 

                        SCHEDULE A TO PURCHASE AGREEMENT

 

 

                                                          Principal Amount

                     Address and                           of Purchased Bonds

Name                  Telecopier Number                     to Be Purchased

----                   -----------------                     ---------------

 

 

                                                          ---------------

                                          Total            $

                                                          ===============

 

 

<PAGE>

 

 

                      THE EMPIRE DISTRICT ELECTRIC COMPANY

 

              STANDARD PURCHASE PROVISIONS -- FIRST MORTGAGE BONDS

 

 

     From time to time, The Empire District Electric Company, a Kansas

corporation ("Company"), may enter into purchase agreements that provide for the

sale of a designated series of First Mortgage Bonds to the purchaser or

purchasers named therein. The standard provisions set forth herein may be

incorporated by reference in any such purchase agreement ("Purchase Agreement").

The Purchase Agreement, including the provisions incorporated therein by

reference, is herein sometimes referred to as "this Agreement." Unless otherwise

defined herein, terms defined in the Purchase Agreement are used herein as

therein defined.

 

     1. Introductory. The Company proposes to issue and sell from time to time

First Mortgage Bonds registered under the registration statement referred to in

Section 3(a) ("Bonds"). The Bonds will be issued under an Indenture of Mortgage

and Deed of Trust, dated as of September 1, 1944 ("Original Mortgage"), by and

between the Company and The Bank of New York and UMB Bank & Trust, N.A., as

trustees ("Trustees"), as supplemented and amended, including by a supplemental

indenture ("Supplemental Indenture") pertaining to the particular series of

Bonds involved in the offering (the Original Mortgage as so amended and

supplemented, the "Indenture") and will have varying designations, interest

rates and terms of payment of interest, maturities, redemption and sinking fund

provisions, if any, and other terms, with all of such terms for any particular

series of Bonds being determined at the time of sale and being as set forth in

the Purchase Agreement and Supplemental Indenture relating to such series of

Bonds. The Bonds referred to in Schedule A of the Purchase Agreement are

hereinafter referred to as the "Purchased Bonds." The firm or firms, as the case

may be, which agree to purchase the Purchased Bonds are hereinafter referred to

as the "Purchasers" of such Purchased Bonds. The terms "you" and "your" refer to

those Purchasers (or the Purchaser) who sign the Purchase Agreement either on

behalf of themselves (or itself) only or on behalf of the several Purchasers

named in Schedule A thereto, as the case may be. Purchased Bonds to be purchased

by Purchasers are herein referred to as "Purchasers' Bonds," and any Purchased

Bonds to be purchased pursuant to Delayed Delivery Contracts (as defined below)

as hereinafter provided are herein referred to as "Contract Bonds."

 

     2. Sale and Delivery of the Bonds. Subject to the terms and conditions set

forth in this Agreement, the Company will deliver the Purchasers' Bonds to you

for the account of the Purchasers, at the place set forth in the Purchase

Agreement against payment of the purchase price therefor by wire transfer or

certified or official bank check or checks in immediately available funds or

clearing house funds payable to the order of the Company, all as set forth in

the Purchase Agreement, at the time set forth in the Purchase Agreement or at

such other time not later than seven full business days thereafter as you and

the Company determine, such time being herein referred to as the "Closing Date."

The Company agrees to make available to you for inspection and packaging at the

place set forth in the Purchase Agreement, at least one full business day prior

to the Closing Date, the Purchasers' Bonds so to be delivered in good delivery

form and in such denominations and registered in such names as you shall have

requested, all such requests to have been made in writing at least three full

 

<PAGE>

                                      -2-

 

 

business days prior to the Closing Date, or if no such request is made,

registered in the names of the several Purchasers as set forth in Schedule A to

the Purchase Agreement.

 

     If any Purchase Agreement provides for sales of Purchased Bonds pursuant to

delayed delivery contracts, the Company authorizes the Purchasers to solicit

offers to purchase Contract Bonds pursuant to delayed delivery contracts

substantially in the form of Schedule I attached hereto (the "Delayed Delivery

Contracts") with such changes therein as the Company may approve. Delayed

Delivery Contracts are to be with institutional investors, including commercial

and savings banks, insurance companies, pension funds, investment companies, and

educational and charitable institutions. Each Delayed Delivery Contract shall

provide for the purchase and sale of a principal amount of Contract Bonds not

less than the amount set forth in the Purchase Agreement and the aggregate

principal amount of all Contract Bonds shall not exceed the amount set forth in

the Purchase Agreement. On the Closing Date, the Company will pay you as

compensation, for the accounts of the Purchasers, the compensation set forth in

such Purchase Agreement in respect of the principal amount of Contract Bonds.

The Purchasers will not have any responsibility in respect of the validity or

the performance of Delayed Delivery Contracts. If the Company executes and

delivers Delayed Delivery Contracts, the Contract Bonds shall be deducted from

the Purchased Bonds to be purchased by the several Purchasers and the aggregate

principal amount of Purchased Bonds to be purchased by each Purchaser shall be

reduced pro rata in proportion to the principal amount of Purchased Bonds set

forth opposite each Purchaser's name in such Purchase Agreement, except to the

extent that you determine that such reduction shall be otherwise allocated and

so advise the Company.

 

     3. Representations and Warranties of the Company. The Company represents

and warrants to each Purchaser that:

 

          (a) The registration statement referred to in the Purchase Agreement

     and relating to the Bonds, including a prospectus and all documents

     incorporated by reference therein, has been filed on Form S-3 with the

     Securities and Exchange Commission ("Commission") and has become effective.

     Such registration statement, including the prospectus supplement with

     respect to the offering of Purchased Bonds referred to in Section 2 (the

     "Prospectus Supplement") and all prior amendments and supplements thereto

     (other than supplements and amendments relating to securities that are not

     Purchased Bonds), including all documents filed as a part thereof or

     incorporated therein pursuant to Item 12 of Form S-3 (other than the

     Statements of Eligibility and Qualification of the Trustees (the "Forms

     T-1")), is hereinafter referred to as the "Registration Statement" and such

     prospectus, as so amended or supplemented (including all material so

     incorporated by reference therein) in the form first filed by the Company

     pursuant to Rule 424(b) under the Act is hereinafter referred to as the

      "Prospectus."

 

          (b) The Registration Statement and the Prospectus conform in all

     respects to the requirements of the Securities Act of 1933, as amended

     ("Act"), the Trust Indenture Act of 1939, as amended ("Trust Indenture

     Act"), and the pertinent published rules and regulations ("Rules and

     Regulations") of the Commission, and none of such documents includes any

     untrue statement of a material fact or omits to state any material fact

     required to be stated therein or necessary to make the statements therein

     not misleading, except that the foregoing

 

 

<PAGE>

                                      -3-

 

 

     does not apply to statements or omissions in either of such documents based

     upon written information furnished to the Company by any Purchaser

     specifically for use therein. The documents incorporated by reference in

     the Registration Statement or the Prospectus pursuant to Item 12 of Form

     S-3 of the Act, at the time they were filed with the Commission, complied

     in all material respects with the requirements of the Securities Exchange

     Act of 1934, as amended (the "Exchange Act"), and the pertinent published

     rules and regulations thereunder (the "Exchange Act Rules and Regulations")

     and any additional documents deemed to be incorporated by reference in the

     Prospectus will, when they are filed with the Commission, comply in all

     material respects with the requirements of the Exchange Act and the

     Exchange Act Rules and Regulations and will not contain an untrue statement

     of a material fact or omit to state a material fact required to be stated

     therein or necessary to make the statements therein, in light of the

     circumstances under which they were made, not misleading.

 

          (c) The Company has an authorized capitalization as set forth in the

     Prospectus.

 

          (d) The Company has been duly incorporated and is validly existing as

     a corporation in good standing under the laws of the State of Kansas, with

     full corporate power and authority to own, lease and operate its properties

     and conduct its business as described in the Registration Statement and the

     Prospectus.

 

          (e) The Company is duly qualified to do business as a foreign

     corporation and in good standing in each jurisdiction where the ownership

     or leasing of its properties or the conduct of its businesses requires such

     qualification, except where the failure to so qualify would not reasonably

      be expected to have a material adverse effect on the business, properties,

     financial condition or results of operation of the Company and its

     subsidiaries taken as a whole (a "Material Adverse Effect"). The Company

     has no "significant subsidiary," as such term is defined in Rule 405 of the

     Rules and Regulations.

 

          (f) The Company (1) is not in violation of its charter or by-laws, (2)

     is not in default in any material respect, and no event has occurred which,

     with notice or lapse of time or both, would constitute such a default, in

     the due performance or observance of any term, covenant or condition

     contained in any material indenture, mortgage, deed of trust, loan

     agreement or other agreement or instrument to which it is a party or by

     which it is bound or to which any of its properties or assets is subject

     and (3) is not in violation in any material respect of any law, ordinance,

     governmental rule, regulation or court decree to which it or its property

     or assets may be subject and has not failed to obtain any material license,

     permit, certificate, franchise or other governmental authorization or

     permit necessary to the ownership of its property or to the conduct of its

      business, except, in the case of clause (2) or (3) above, for any such

     default, violation or failure that would not reasonably be expected to

     result in a Material Adverse Effect.

 

          (g) The execution, delivery and performance of this Agreement and the

     issuance of the Purchased Bonds and consummation of the transactions

     contemplated hereby will not conflict with, or result in any breach of or

     constitute a default under (nor constitute any event which with notice,

     lapse of time, or both would result in any breach of, or constitute a

     default

 

 

<PAGE>

                                      -4-

 

 

     under), any provisions of the charter or by-laws of the Company or under

     any provision of any license, indenture, mortgage, deed of trust, bank loan

     or credit agreement or other evidence of indebtedness, or any lease,

     contract or other agreement or instrument to which the Company is a party

     or by which it or its respective properties may be bound or affected, or

     under any federal, state, local or foreign law, regulation or rule or any

     decree, judgment or order applicable to the Company, except for any such

     conflict, breach or default which would not reasonably be expected to

     result in a Material Adverse Effect.

 

          (h) The Indenture has been duly authorized by the Company and is a

     legal, valid and binding agreement of the Company enforceable in accordance

     with its terms, except as the enforceability thereof may be limited by

     bankruptcy, insolvency, reorganization, moratorium or similar laws

     affecting creditors' rights generally and general principles of equity.

 

          (i) The Purchased Bonds have been duly authorized by the Company and

     when executed and delivered by the Company against payment therefore in

     accordance with the Agreement will constitute legal, valid and binding

     obligations of the Company enforceable in accordance with their terms,

     except as the enforceability thereof may be limited by bankruptcy,

     insolvency, reorganization, moratorium or similar laws affecting creditors'

     rights generally and general principles of equity.

 

          (j) This Agreement has been duly authorized, executed and delivered by

     the Company.

 

          (k) The Purchased Bonds and the Indenture conform in all material

     respects to the descriptions thereof contained in the Registration

     Statement and Prospectus.

 

          (l) The Company has obtained or made all approvals, authorizations,

     consents or orders of or filings with any national, state or local

     governmental or regulatory commission, board, body, authority or agency

     required in connection with the issuance and sale of the Purchased Bonds or

     the consummation by the Company of the transactions as contemplated hereby

     other than any necessary qualification under the securities or blue sky

     laws of the various jurisdictions in which the Purchased Bonds are being

     offered by the Purchasers.

 

           (m) There are no actions, suits, claims, investigations or proceedings

     pending or threatened to which the Company or any of its officers is a

     party or of which any of its properties is subject, at law, in equity, or

     before or by any federal, state, local or foreign governmental or

     regulatory commission, board, body, authority or agency which would

     reasonably be expected to result in a Material Adverse Effect or prevent

     consummation of the transactions contemplated hereby.

 

          (n) The audited financial statements included in the Registration

     Statement and the Prospectus present fairly in all material respects the

     consolidated financial position of the Company as of the dates indicated

     and the consolidated results of operations and cash flows of the Company

     for the periods specified; such financial statements have been prepared in

     conformity with generally accepted accounting principles applied on a

     consistent basis during

 

 

<PAGE>

                                       -5-

 

 

     the periods involved, except as otherwise set forth therein. The interim

     unaudited financial statements included in the Registration Statement and

     the Prospectus present fairly in all material respects the consolidated

     financial position of the Company as of the dates indicated and the

     consolidated results of operations and cash flows of the Company for the

     periods specified subject to year-end adjustments; such financial

     statements have been prepared in conformity with generally accepted

     accounting principles applied on a consistent basis during the periods

     involved, except as otherwise set forth therein.

 

          (o) The accountants who certified the audited financial statements of

     the Company and supporting schedules and notes thereto incorporated by

     reference in the Prospectus are an independent registered public accounting

     firm with respect to the Company within the meaning of the Act and the

     applicable rules and regulations thereunder adopted by the Commission and

     the Public Company Accounting Oversight Board (the "PCAOB").

 

          (p) The Company is not, and, as of the Closing Date after giving

     effect to the application of the net proceeds as described in the

     Prospectus, will not be, an "investment company" as defined in the

     Investment Company Act of 1940, as amended.

 

          (q) The Company, and its directors and officers in their capacity as

     such, have each complied, and currently are in compliance, in all material

     respects with the Sarbanes-Oxley Act of 2002 and all rules and regulations

     of the Commission and the New York Stock Exchange issued or adopted in

     connection therewith.

 

          (r) There has been no storage, disposal, generation, manufacture,

     refinement, transportation, handling or treatment of toxic wastes, medical

     wastes, hazardous wastes or hazardous substances by the Company or any of

     its subsidiaries (or, to the actual knowledge of the Company, any of their

     predecessors in interest) at, upon or from any of the property now or

     previously owned or leased by the Company or its subsidiaries in violation

     of any applicable law, ordinance, rule, regulation, order, judgment, decree

     or permit or which would require remedial action under any applicable law,

     ordinance, rule, regulation, order, judgment, decree or permit, except for

     any violation or remedial action which would not reasonably be expected to

      have, singularly or in the aggregate with all such violations and remedial

     actions, a Material Adverse Effect; there has been no material spill,

     discharge, leak, emission, injection, escape, dumping or release of any

     kind onto such property or into the environment surrounding such property

     of any toxic wastes, medical wastes, solid wastes, hazardous wastes or

     hazardous substances due to or caused by the Company or any of its

     subsidiaries or with respect to which the Company or any of its

     subsidiaries have actual knowledge, except for any such spill, discharge,

     leak, emission, injection, escape, dumping or release which would not

     reasonably be expected to have, singularly or in the aggregate with all

     such spills, discharges, leaks, emissions, injections, escapes, dumpings

     and releases, a Material Adverse Effect; and the terms "hazardous wastes,"

     "toxic wastes," "hazardous substances" and "medical wastes" shall have the

     meanings specified in any applicable local, state, federal and foreign laws

     or regulations with respect to environmental protection.

 

 

<PAGE>

                                      -6-

 

 

          (s) The Company has established and maintains disclosure controls and

     procedures (as such term is defined in Rule 13a-15 and 15d-15 under the

     Exchange Act) and (i) such disclosure controls and procedures are designed

     to ensure that material information relating to the Company, including its

     consolidated subsidiaries, is made known to the Company's Chief Executive

     Officer and its Chief Financial Officer by others within those entities;

     (ii) such disclosure controls and procedures are effective to perform the

     functions for which they were established; and (iii) since the date of the

     most recent evaluation there have been no changes in the Company's internal

     control over financial reporting that have materially affected, or are

     reasonably likely to materially affect the Company's internal control over

     financial reporting. Based on the most recent evaluation of internal

     control over financial reporting, the Company's auditors and the Audit

     Committee of the Board of Directors have been advised of: (i) all

     significant deficiencies and material weaknesses in the design or operation

     of internal control over financial reporting which are reasonably likely to

     adversely affect the Company's ability to record, process, summarize, and

     report financial information; and (ii) any fraud, whether or not material,

     that involves management or other employees who have a significant role in

     the Company's internal control over financial reporting.

 

          (t) Subsequent to the respective dates as of which information is

     given in the Registration Statement and Prospectus, as supplemented or

     amended, there has been no material adverse change in the financial

     position or results of operations of the Company.

 

          (u) The Company maintains insurance covering its properties,

     operations, personnel and businesses as the Company deems adequate; such

     insurance insures against such losses and risks to an extent which is

     adequate, in the good faith judgment of management, to protect the Company

     and its business.

 

          (v) Any statistical and market-related data included in the

     Registration Statement and the Prospectus are based on or derived from

     sources that the Company believes to be reliable and accurate, and the

     Company has obtained the written consent to the use of such data from such

     sources to the extent required.

 

     4. Agreements of the Company. The Company agrees with the several

Purchasers that:

 

          (a) The Company will advise you promptly of any proposal to amend or

     supplement the Registration Statement or the Prospectus with respect to any

     Purchased Bonds, and will furnish you a copy thereof prior to the filing

     thereof with the Commission.

 

          (b) The Company will furnish to you copies of the registration

     statement relating to the Bonds as originally filed and all amendments

     thereto (at least one of which will be signed and will include all exhibits

     except those incorporated by reference to previous filings with the

     Commission), each related prospectus, the Prospectus, and all amendments

     and supplements to such documents (except amendments to exhibits and

     supplements relating to Bonds that are not Purchased Bonds), in each case

     as soon as available and in such quantities as you reasonably request for

     the purposes contemplated by the Act.

 

 

<PAGE>

                                      -7-

 

 

          (c) If at any time when a prospectus relating to the Purchased Bonds

     is required to be delivered under the Act or the Rules and Regulations, any

     event occurs as a result of which the Prospectus as then amended or

     supplemented would include any untrue statement of a material fact, or omit

     to state a material fact necessary to make the statements therein, in light

     of the circumstances under which made, not misleading, or if it is

     necessary at any time to amend or supplement the Prospectus to comply with

     the Act or the Rules and Regulations, the Company will promptly notify the

     Purchasers and promptly prepare and file with the Commission an amendment

     or supplement to the Registration Statement or any appropriate filing

     pursuant to Section 13 or 14 of the Exchange Act which will correct such

     statement or omission or an amendment which will effect such compliance,

     and deliver in connection therewith, such Prospectus or amendments or

     supplements to the Purchasers in such quantity as may be necessary to

     permit compliance with the requirements of the Act and the Rules and

     Regulations, provided that the Company shall be so obligated only so long

     as the Company is notified of unsold allotments (failure by the Purchasers

     to so notify the Company cancels the Company's obligation under this

     Section 4(c)), and provided further that any such Prospectus or amendment

     or supplement required later than nine months from the date hereof shall be

     furnished at the Purchasers' sole expense.

 

          (d) The Company will cooperate with the Purchasers in taking such

     action as may be necessary to qualify the Purchased Bonds for offering and

     sale under the securities laws of any state or jurisdiction of the United

     States as the Purchasers may reasonably request and will use its best

     efforts to continue such qualification in effect so long as required for

     the distribution of the Purchased Bonds; provided, however, that the

     Company shall not be required to qualify as a foreign corporation, or to

      file a general consent to service of process, in any such state or

     jurisdiction or to comply with any other requirement deemed by the Company

     to be unduly burdensome.

 

          (e) The Company will make generally available to its security holders

     as soon as practicable an earning statement (as contemplated by Rule 158

     under the Act) covering a period of twelve months after the effective date

     of the Registration Statement.

 

          (f) For a period of one year, the Company will furnish to you copies

     of any report or definitive proxy statement which the Company shall file

     with the Commission under the Exchange Act, and copies of all reports and

     communications which shall be sent to stockholders generally, at or about

     the time such reports and other information are first furnished to

     stockholders generally. For purposes of this clause (f), any information

     filed by the Company on the Commission's EDGAR system will be deemed

     furnished to you in satisfaction of this clause (f).

 

          (g) The Company will apply the net proceeds from the offering of the

     Purchased Bonds as set forth under the caption "Use of Proceeds" in the

     Prospectus Supplement.

 

          (h) The Company will record and file the Supplemental Indenture

     pertaining to the Purchased Bonds in each place in which such recording or

     filing is required to protect and preserve the lien of the Indenture and

     will pay all taxes and recording fees required to be paid

 

 

<PAGE>

                                      -8-

 

 

     with respect to the execution, recording and filing of the Supplemental

     Indenture and the issuance of the Purchased Bonds.

 

          (i) If a public offering of the Purchased Bonds is to be made, the

     Company will not offer or sell any of its other debt securities which are

     substantially similar to the Purchased Bonds prior to ten business days

     after the Closing Date without the consent of the Purchasers.

 

          (j) The Company will advise you, promptly after it receives notice

     thereof, of the issuance by the Commission of any stop order or of any

     order preventing or suspending the use of the Prospectus, of the suspension

     of the qualification of the Purchased Bonds for offering or sale in any

     jurisdiction or of the initiation or threatening of any proceeding for any

     such purpose; and, in the event of the issuance of any stop order or of any

     order preventing or suspending the use of the Prospectus or suspending any

     such qualification, promptly to use its reasonable best efforts to obtain

     the prompt withdrawal of such order.

 

     5. Expenses. The Company and the Purchasers agree as follows:

 

          (a) The Company, whether or not the transactions contemplated

     hereunder are consummated, will (except as provided in Section 4(c) hereof)

     pay all costs and expenses incident to the performance of its obligations

     hereunder, including without limitation, all costs and expenses in

     connection with: (i) the preparation and filing of the Registration

     Statement, Prospectus and Indenture and any supplements or amendments

     thereto; (ii) the preparation, issuance and delivery to the Purchasers of

     the Purchasers' Bonds and the preparation, issuance and delivery to the

     purchasers thereof of the Contract Bonds; (iii) the reproduction or

     printing and mailing in reasonable quantities of the Registration

     Statement, the Supplemental Indenture, amendments thereto, each preliminary

     prospectus, the Prospectus and any amendments or supplements thereto, this

     Agreement, any Blue Sky memoranda and legal investment survey delivered to

     the Purchasers; (iv) reasonable filing fees and expenses (including legal

     fees and disbursements, not in excess of $5,000) incurred in connection

     with the qualification of the Purchased Bonds under the Blue Sky or

     securities laws of the various states, and the preparation of Blue Sky

     memoranda and legal investment survey for the offering; (v) the fees and

     expenses of the accountants and the counsel for the Company; (vi) the fees

     of the Trustees and any agent of the Trustees (including legal fees and

     disbursements, if any, of counsel to the Trustees); (vii) any fees payable

     to investment rating agencies with respect to the Purchased Bonds; and

     (viii) all other costs and expenses incident to the performance of its

     obligations hereunder which are not otherwise specifically provided for in

     this Section.

 

          (b) The Purchasers will pay (i) the fees and disbursements of their

     respective counsel, except as set forth in Section 5(a) and in Section 9(c)

     and (ii) their own out-of-pocket expenditures.

 

     6. Conditions of the Purchasers' Obligations. The obligations of the

Purchasers to purchase and pay for the Purchasers' Bonds shall be subject in

their discretion to the accuracy of and compliance in all material respects with

the representations and the warranties of the Company

 

 

<PAGE>

                                      -9-

 

 

herein contained as of the date hereof and the Closing Date, to the performance

by the Company of its obligations hereunder and to the following additional

conditions:

 

          (a) No stop order suspending the effectiveness of the Registration

     Statement shall have been issued under the Act or proceedings therefor

     initiated or threatened by the Commission prior to the Closing Date.

 

          (b) You shall have received an opinion, dated the Closing Date, of

     Anderson & Byrd, counsel for the Company, to the effect that:

 

               (i) The Company has been duly incorporated and is validly

          existing as a corporation in good standing under the laws of the State

          of Kansas, with power and authority (corporate and other) to own its

          properties and conduct its business as described in the Prospectus;

 

               (ii) All approvals of the State Corporation Commission of the

          State of Kansas which are required for the issuance, sale and delivery

          of the Purchased Bonds have been obtained; any conditions in such

          approvals required to be satisfied prior to the issuance of the

          Purchased Bonds have been duly satisfied; such approvals are in full

          force and effect; and no further approval, authorization, consent or

          other order of any public board or body in the State of Kansas is

          legally required for the issuance, sale and delivery of the Purchased

          Bonds or the execution, delivery and performance by the Company of the

          Supplemental Indenture, the Purchased Bonds, any Delayed Delivery

          Contracts or this Agreement (it being understood that such counsel

          need express no opinion as to any approvals which may be required

          under the securities acts or Blue Sky laws of said state);

 

               (iii) Neither the issuance, sale and delivery of the Purchased

          Bonds nor the execution, delivery and performance by the Company of

          this Agreement, any Delayed Delivery Contract or the Purchased Bonds

          will conflict with, violate or result in a breach of any Kansas law or

          administrative regulation, or any court decree known to such counsel,

          applicable to the Company (it being understood that such counsel need

          express no opinion as to any approvals which may be required under the

          securities acts or Blue Sky laws of said state); and

 

               (iv) This Agreement and any Delayed Delivery Contracts have been

          duly authorized, executed and delivered by the Company.

 

          (c) You shall have received an opinion, dated the Closing Date, of

     Spencer, Scott & Dwyer, P.C., Missouri counsel for the Company, to the

     effect that:

 

               (i) The Company has been duly incorporated and is validly

          existing as a corporation in good standing under the laws of the State

          of Kansas, with power and authority (corporate and other) to own its

          properties and conduct its business as described in the Prospectus;

          and the Company is duly qualified to do business as a for-

 

 

<PAGE>

                                      -10-

 

 

          eign corporation in good standing in the States of Arkansas, Missouri

          and Oklahoma, which are the only jurisdictions (other than Kansas) in

          which it owns or leases substantial properties or in which the conduct

          of its business requires such qualification;

 

               (ii) The Company holds all the valid and subsisting franchises

          which are necessary to authorize it to carry on the utility businesses

          in which it is engaged as described in the Prospectus;

 

               (iii) The Purchasers' Bonds have been duly authorized, executed,

          issued and delivered by the Company and constitute, and the Contract

          Bonds have been duly authorized and when executed and authenticated in

          accordance with the Indenture and delivered to and paid for by the

          purchasers pursuant to Delayed Delivery Contracts will constitute,

          valid and legally binding obligations of the Company entitled to the

          benefits and security provided by the Indenture except as the same may

          be limited by bankruptcy, insolvency, reorganization or other laws

          relating to or affecting the enforcement of creditors' rights or the

          enforcement of the security provided by the Indenture or by general

           principles of equity and, (A) as to the Company's interest in the

          Iatan Generating Station, except as the same may be limited by the

          terms of the Iatan Station Ownership Agreement, dated July 31, 1978,

          among Kansas City Power & Light Company, St. Joseph Light & Power

          Company and the Company and of any other agreements by the Company

          relating to its interest in such station and (B) as to the Company's

          interest in the State Line Combined Cycle Generating Facility, except

          as the same may be limited by the terms of the Agreement for the

          Construction, Ownership and Operation of State Line Combined Cycle

          Generating Facility, dated July 26, 1999, as amended, among the

           Company, as an owner, Westar Generating, Inc., as an owner and the

          Company, as agent and of any other agreements by the Company relating

          to its interest in such facility;

 

               (iv) The Indenture has


 
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