Exhibit 4.11
CONSOLIDATED NATURAL GAS COMPANY
MEDIUM-TERM NOTES
FORM OF EXCHANGE RATE AGENT AGREEMENT
AGREEMENT made as of ____________, between CONSOLIDATED NATURAL GAS
COMPANY (the "Corporation") and BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION (in
such capacity, the "Exchange Rate Agent", which term shall, unless the context
otherwise requires, include its successors and assigns in such capacity).
WHEREAS, the Corporation proposes to issue from time to time its
medium-term notes, certain of which notes may be denominated in currencies
(including composite currencies) other than U.S. dollars (the "Specified
Currency"; references herein to "Specified Currency" in connection with a
particular Note to mean the Specified Currency applicable to such Note) (such
medium-term notes so denominated being hereinafter called the "Notes"); and
WHEREAS, the Notes will be issued pursuant to an Indenture dated as of
April 1, 2001 as supplemented and amended from time to time (the "Indenture"),
between the Corporation and Bank One Trust Company, National Association, as
trustee (in such capacity, the "Trustee"); and
WHEREAS, the principal of (and premium, if any) and interest on the
Notes will be paid to holders of Notes in U.S. dollars from funds paid to Bank
One Trust Company, National Association, as Paying Agent (in such capacity, the
"Paying Agent") in the Specified Currency by the Corporation, except in certain
circumstances with respect to holders of Notes who elect to receive payments in
the Specified Currency; and
WHEREAS, terms defined in the Indenture and the Notes shall have the
same meanings herein unless the context otherwise requires;
NOW IT IS HEREBY AGREED that:
1. Appointment of Agent. The Corporation hereby appoints Bank One
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Trust Company, National Association as the Exchange Rate Agent, at its principal
corporate trust office in The City of New York, and the Exchange Rate Agent
hereby accepts such appointment as the Corporation's agent for the purpose of
performing the services hereinafter described upon the terms and subject to the
conditions hereinafter mentioned.
2. Payment Dates; Notice of Note Issuance. (a) Except as may
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otherwise be provided in the Notes, interest payments on the Notes will be made
on the respective interest payment dates set forth therein, and principal will
be payable on the Notes on the respective principal payment dates set forth
therein. Each such day on which interest or principal on the Notes shall be
payable as provided therein is referred to herein as a "Payment Date."
(b) The Corporation agrees to notify the Exchange Rate Agent of the
issuance of any Notes prior to the issuance thereof and to deliver to the
Exchange Rate Agent, prior to the issuance of any Notes, copies of the proposed
forms of such Notes. The Corporation shall not issue any Note prior to the
receipt of confirmation from the Exchange Rate Agent of its acceptance of the
proposed form of such Note. The Exchange Rate Agent hereby acknowledges its
acceptance of the proposed form of Note previously delivered to it.
3. Exchange of Currencies. (a) As provided in the Notes, payments
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of the principal of (and premium, if any) and interest on the Notes ("Note
Payments") are to be made in U.S. dollars, provided that any Holder of Notes may
elect to have his Note Payments made in the Specified Currency by filing a
written request with the Paying Agent as provided in the Notes. At least ten
calendar days prior to each Payment Date, the Corporation shall cause the Paying
Agent to deliver a notice to the Exchange Rate Agent specifying (i) such Payment
Date and (ii) the aggregate amount of Note Payments in the Specified Currency to
be converted into U.S. dollars on such Payment Date, on the basis of written
requests from Noteholders received by the Paying Agent as provided in the Notes
(such aggregate amount of the Specified Currency to be converted on any Payment
Date being referred to herein as the "Conversion Amount").
(b) The Exchange Rate Agent shall (subject to Section 3(g) below)
obtain a quotation from a recognized foreign exchange dealer (which may be the
Exchange Rate Agent) selected by it (the "Reference Dealer") for the purchase by
such Reference Dealer of the Specified Currency
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in exchange for U.S. dollars, in an amount equal to the Conversion Amount in
respect of each Payment Date. Such quotation shall be obtained as of
approximately 11:00 a.m. New York City time on the second Business Day preceding
the applicable Payment Date, for settlement of the related exchange transaction
on such Payment Date, and such Reference Dealer shall be requested, in providing
its quote, to indicate its willingness to enter into an exchange transaction at
the rate so quoted. If the Exchange Rate Agent provides the quotation, it shall
be under no obligation to obtain any quotations from other foreign exchange
dealers. Any quotations provided by the Exchange Rate Agent will be at a rate
comparable to a rate at which the Exchange Rate Agent would be willing, at such
time, to enter into a foreign exchange transaction in the relevant Conversion
Amount with a counterparty that is not a foreign exchange dealer. For the
avoidance of doubt, the Corporation acknowledges and agrees that such quotation
will entail a spread that will constitute a profit to the Exchange Rate Agent
and will not necessarily be a mid-market rate. If the Conversion Amount is less
than an amount on which the Exchange Rate Agent would engage in a wholesale
transaction in the ordinary course of its business, the Corporation acknowledges
and agrees that the spread may be greater than on a transaction involving a
Conversion Amount on which the Exchange Rate Agent would engage in a wholesale
transaction in the ordinary course of its business.
(c) The Exchange Rate Agent, on behalf of the Corporation, shall
enter into an agreement, at the time of the determination of the Conversion Rate
(as defined below) in respect of each Payment Date, for the sale of the
Conversion Amount for U.S. dollars for delivery on the Payment Date, such
agreement to be entered into with the Reference Dealer which shall have provided
the relevant quotation, and such sale to be at the Conversion Rate. The
Corporation shall be bound by such agreement as principal as if it had entered
into such agreement directly and shall assert no objection thereto based, in
whole or in part, upon the Conversion Rate. The Exchange Rate Agent shall notify
the Corporation and the Paying Agent, by telex, telefax or telephone and
confirmed promptly in writing, of the exchange rate for the Specified Currency
at which such agreement was entered into (such rate being referred to herein as
the "Conversion Rate").
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(d) Prior to each Payment Date, the Exchange Rate Agent will give
telephonic notice to the Corporation of the place (including the account number
and related information) to which the Conversion Amount shall be paid on the
second Business Day prior to the Payment Date to the Exchange Rate Agent by the
Corporation. Such telephonic notice shall be confirmed in writing as soon as
practicable thereafter in accordance with Section 9. In the event the Exchange
Rate Agent fails to give such notice, the Corporation shall be entitled to rely
on the payment instructions with respect to the immediately preceding Payment
Date.
(e) As early as practicable on the second Business Day prior to the
Payment Date, the Corporation will deposit the Conversion Amount into the
account of the Exchange Rate Agent specified pursuant to Section 3(d) above. On
the Payment Date, the Exchange Rate Agent shall (i) exchange the Conversion
Amount for U.S. Dollars pursuant to the agreement referred to in Section 3(c)
above, (ii) deduct all currency exchange costs pursuant to Section 4 hereof and
(iii) transfer the remaining U.S. dollars to, or as directed by, the Paying
Agent, on behalf of the Corporation, for payment to the Holders of the Notes in
accordance with their terms.
(f) In the event that the Exchange Rate Agent enters into an
agreement pursuant to Section 3(c) above but is unable to convert the entire
Conversion Amount to U.S. dollars, for whatever reason, then the Corporation
shall remit to the Paying Agent on the Payment Date an amount in U.S. dollars
equal to the amount which would have been received on conversion, at the
Conversion Rate, of that portion of the Conversion Amount remaining unconverted,
and such unconverted portion of the Conversion Amount shall be returned to the
Corporation.
(g) If the Exchange Rate Agent is not willing to provide a quotation
in respect of a particular Payment Date, it will make a good faith attempt to
obtain quotations from three other Reference Dealers. If none of such Reference
Dealers is willing to provide a quotation, (i) the Exchange Rate Agent shall
notify the Corporation and the Paying Agent accordingly, by telex, telefax or
telephone and confirmed promptly in writing and (ii) no conversion shall be made
on such Payment Date and all Note Payments on such Payment Date shall be made in
the Specified Currency.
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4. Fees and Expenses. So long as any of the Notes remains
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Outstanding, the Corporation will pay to the Exchange Rate Agent a fee to be
determined between the parties in respect of its services to be rendered
hereunder. The Corporation will also pay, upon receiving an accounting therefor
from the Exchange Rate Agent, the reasonable out-of-pocket expenses (including
legal, advertising, telex and cable expenses) incurred by the Exchange Rate
Agent in connection with its services to the Corporation as Exchange Rate Agent
hereunder, such accounting to be conclusive absent manifest error. It is
understood that all currency exchange costs will be borne by the Holders of the
Notes whose Note Payments are required to be converted into U.S. dollars, and
will be deducted by the Exchange Rate Agent from the U.S. dollars received by
the Exchange Rate Agent on each Payment Date pursuant to Section 3(e) hereof.
5. Indemnification. Notwithstanding any satisfaction or discharge of
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the Notes or the Indenture, the Corporation will indemnify the Exchange Rate
Agent against any losses, liabilities, costs, claims, actions or demands which
it may incur or sustain or which may be made against it in connection with its
appointment or the exercise of its powers and duties hereunder as well as the
reasonable costs, including expenses and fees of legal or other professional
advisors, of defending or investigating any claim, action or demand, except such
as may result from the gross negligence, wilful misconduct or bad faith of the
Exchange Rate Agent or any of its employees. Except as provided in the
preceding sentence, the Exchange Rate Agent shall incur no liability and shall
be indemnified and held harmless by the Corporation for or in respect of any
action taken or suffered to be taken in good faith by the Exchange Rate Agent in
reliance upon (i) the written opinion or advice of legal or other professional
advisors or (ii) written instructions from the Corporation.
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6. Terms and Conditions. The Exchange Rate Agent accepts its
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obligations herein set out upon the terms and conditions hereof, including the
following, to all of which the Corporation agrees:
(i) in acting under this Agreement, the Exchange Rate Agent is
acting solely as agent of the Corporation and does not assume any
obligation toward, or any relationship of agency or trust for or with, any
of the Holders of the Notes;
(ii) unless herein otherwise specifically provided, any order,
certificate, notice, request, direction or other communication from the
Corporation made or given under any provision of this Agreement shall be
sufficient if signed by any person who the Exchange Rate Agent reasonably
believes to be a duly authorized officer or attorney-in-fact of the
Corporation;
(iii) the Exchange Rate Agent shall be obliged to perform only such duties
as are set out specifically herein and any duties necessarily incidental
thereto;
(iv) the Exchange Rate Agent, whether acting for itself or in any other
capacity, may become the owner or pledgee of Notes with the same rights as
it would have had if it were not acting hereunder as Exchange Rate Agent;
(v) the Exchange Rate Agent shall incur no liability hereunder
except for loss sustained by reason of its gross negligence, wilful
misconduct or bad faith; and
(vi) in no event shall the Exchange Rate Agent be liable for
special, indirect or consequential loss or damage of any kind whatsoever
(including but not limited to lost profits), even if the Exchange Rate
Agent has been advised of the likelihood of such loss or damage and
regardless of the form of action.
7. Resignation; Removal; Successors. (a) The Exchange Rate Agent
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may at any time resign as Exchange Rate Agent by giving written notice to the
Corporation of such intention on its part, specifying the date on which its
desired resignation shall become effective, provided that
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such notice shall be given not less than 60 days prior to the said effective
date unless the Corporation otherwise agrees in writing. The Exchange Rate Agent
hereunder may be removed by the filing with it of an instrument in writing
signed by the Corporation specifying such removal and the date when it shall
become effective (such effective date being at least 20 days after the said
filing). Such resignation or removal shall take effect upon the earlier of (i)
the effective date thereof as set forth in the notice of resignation or
instrument of removal and (ii)(a) the appointment by the Corporation as
hereinafter provided of a successor Exchange Rate Agent and (b) the acceptance
of such appointment by such successor Exchange Rate Agent; provided, however,
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that in the event the Exchange Rate Agent has given not less than 60 days' prior
notice of its desired resignation, and during such 60 days there has not been
acceptance by a successor Exchange Rate Agent of its appointment as successor
Exchange Rate Agent, the Exchange Rate Agent so resigning may petition any court
of competent jurisdiction for the appointment of a successor Exchange Rate
Agent. The Corporation covenants that it shall appoint a successor Exchange Rate
Agent as soon as practicable after receipt of any notice of resignation
hereunder. Upon its resignation or removal becoming effective, the retiring
Exchange Rate Agent shall be entitled to the reimbursement of all unpaid
reasonable out-of-pocket expenses (including legal, advertising, telex and cable
expenses) incurred in connection with the services rendered by the retiring
Exchange Rate Agent to the date such resignation or removal becomes effective.
(b) If at any time the Exchange Rate Agent shall resign or be
removed, or shall become incapable of acting or shall be adjudged bankrupt or
insolvent, or an order is made or effective resolution is passed to wind up the
Exchange Rate Agent, or if the Exchange Rate Agent shall file a voluntary
petition in bankruptcy or make an assignment for the benefit of its creditors,
or shall consent to the appointment of a receiver, administrator or other
similar official of any or any substantial part of its property, or shall admit
in writing its inability to pay or meet its debts as they mature, or if a
receiver, administrator or other similar official of the Exchange Rate Agent or
of all or any substantial part of its property shall be appointed, or if any
order of any court shall be entered approving any petition filed by or against
the Exchange Rate Agent under the provisions of any applicable bankruptcy or
insolvency
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law, or if any public officer shall take charge or control of the Exchange Rate
Agent or its property or affairs for the purpose of rehabilitation, conservation
or liquidation, then a successor Exchange Rate Agent shall be appointed by the
Corporation by an instrument in writing filed with the successor Exchange Rate
Agent. Except as provided in Section 7(a) hereof, upon the appointment as
aforesaid of a successor Exchange Rate Agent and its acceptance of such
appointment, the Exchange Rate Agent so replaced shall cease to be Exchange Rate
Agent hereunder.
(c) Any successor Exchange Rate Agent hereunder shall execute and
deliver to its predecessor and the Corporation an instrument accepting such
appointment hereunder, and thereupon such successor Exchange Rate Agent, without
any further act, deed or conveyance, shall become vested with all the authority,
rights, powers, immunities, duties and obligations of such predecessor with like
effect as if originally named the Exchange Rate Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then unpaid, shall
thereupon become obliged to transfer and deliver, and such successor Exchange
Rate Agent shall be entitled to receive, copies of any relevant records
maintained by such predecessor Exchange Rate Agent.
(d) Any corporation into which the Exchange Rate Agent may be merged
or converted, any corporation with which the Exchange Rate Agent may be
consolidated or any corporation resulting from any merger, conversion or
consolidation to which the Exchange Rate Agent shall be a party shall, to the
extent permitted by applicable law, be the successor Exchange Rate Agent under
this Agreement without the execution or filing of any paper or any further act
on the part of any of the parties hereto. Notice of any such merger, conversion
or consolidation shall forthwith be given to the Corporation, the Paying Agent
and the Trustee.
(e) The Corporation shall promptly notify the Trustee and the Paying
Agent of the appointment of any successor Exchange Rate Agent hereunder.
(f) The provisions of Section 5 hereof shall survive any resignation
or removal hereunder.
8. Certain Definitions. As used herein, "Business Day" means, with
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respect to a particular Note, any
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day which is not a Saturday or a Sunday and which is neither a legal holiday nor
a day on which banking institutions are authorized or required by law or
regulation to close in The City of New York or the financial center of the
country or governmental entity issuing the Specified Currency.
9. Notices. Except as otherwise provided herein, any notice required
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to be given hereunder shall be delivered in person against written receipt, sent
by letter, telex or telecopy or communicated by telephone (subject, in the case
of communication by telephone, to confirmation dispatched within two Business
Days by letter, telex or telecopy), in the case of (a) the Corporation, to it at
Dominion Resources, Inc., 000 Xxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxx 00000,
telecopy (000) 000-0000, Attention: Financing Manager - Public Markets, (b) the
Exchange Rate Agent, to it at Bank One Trust Company, National Association, 000
Xxxx 00/xx/ Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: _____________, with a
copy to the Trustee, or (c) the Paying Agent or the Trustee, to Bank One Trust
Company, National Association, 000 Xxxx 00/xx/ Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, Attention: Institutional Trust Services, or, in any case, to any other
address of which the party receiving notice shall have notified the party giving
such notice in writing. Any notice hereunder given by telex, telecopy or letter
shall be deemed to be served when received.
10. Governing Law. This Agreement is governed by and shall be construed in
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accordance with the laws of the State of New York, without reference to choice
of law doctrine.
11. Counterparts. This Agreement may be executed in any number of counterparts,
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each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement.
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12. Benefit of Agreement. This Agreement is solely for the benefit
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of the parties hereto and their successors and assigns and no other person shall
acquire or have any rights under or by virtue hereof.
IN WITNESS WHEREOF, this Exchange Rate Agent Agreement has been
entered into as of the day and year first above written.
CONSOLIDATED NATURAL GAS COMPANY
By
Title:
BANK ONE TRUST COMPANY, NATIONAL ASSOCIATION
as Exchange Rate Agent
By
Title:
