Exhibit 10.9
GUARANTY
THIS GUARANTY (this “
Guaranty ”), dated as of November 1, 2007,
is made by the undersigned (individually, a “
Guarantor ” and collectively, the “
Guarantors ”), in favor of ROYAL BANK OF
CANADA, as administrative agent for the Lenders (as defined
below).
WITNESSETH :
WHEREAS, pursuant to that certain
Amended and Restated Credit Agreement dated November 1, 2007
(as the same may hereafter be amended, supplemented and restated,
the “ Credit Agreement ”), among Quest
Midstream Partners, L.P., a Delaware limited partnership (“
MLP ”) and Bluestem Pipeline, LLC, a Delaware
limited liability company (“ Bluestem ”
and together with MLP, collectively, the “
Borrowers ”), the various financial
institutions that are, or may from time to time become, parties
thereto (individually a “ Lender ” and
collectively the “ Lenders ”) and Royal
Bank of Canada, as administrative agent and collateral agent (in
its capacity as administrative agent, the “
Administrative Agent ”), the Lenders have
agreed to make Credit Extensions for the account of the Borrowers;
and
WHEREAS, as a condition precedent to
the making of Credit Extensions under and as defined in the Credit
Agreement, each Guarantor is required to execute and deliver this
Guaranty; and
WHEREAS, each Guarantor has duly
authorized the execution, delivery and performance of this
Guaranty; and
WHEREAS, each Guarantor is a wholly
owned direct or indirect subsidiary of the Borrowers; and
WHEREAS, it is in the best interests
of each Guarantor to execute this Guaranty inasmuch as each
Guarantor will derive substantial direct and indirect benefits from
the extensions of credit made from time to time to or for the
account of the Borrowers.
NOW THEREFORE, for good and valuable
consideration, the receipt of which is hereby acknowledged, and in
order to induce the Lenders to make Credit Extensions to the
Borrower pursuant to the Credit Agreement by fulfilling the
requirements of the Credit Agreement, the Guarantor agrees, for the
benefit of each Lender, as follows:
ARTICLE I
DEFINITIONS
SECTION 1.1 Certain
Terms . The following capitalized terms when used in this
Guaranty, including its preamble and recitals, shall have the
following meanings (such definitions to be equally applicable to
the singular and plural forms thereof):
“ Administrative
Agent ” is defined in the first recital.
“ Borrowers
” is defined in the first recital.
“ Commitments
” means each Commitment as defined in the Credit
Agreement.
“ Credit
Extensions ” means each Credit Extension as defined
in the Credit Agreement.
“ Guarantor
” and “ Guarantors ” is defined in
the preamble.
“ Guaranty
” is defined in the preamble.
“ Lenders ”
is defined in the first recital.
“ Loan Documents
” means the Loan Documents as defined in the Credit
Agreement.
“ Note ”
means each Revolving Note as defined in the Credit Agreement.
“ Obligations
” means the Obligations as defined in the Credit
Agreement.
“ Obligor ”
means the Borrower or any other Person (other than the
Administrative Agent or any Lender) obligated under any Loan
Document.
“ Required
Lenders ” means the Required Lenders as defined in
the Credit Agreement.
“ Taxes ”
is defined in clause (a) of Section 2. 7.
“ UCC ”
means the Uniform Commercial Code as in effect in the State of New
York.
SECTION 1.2 Credit
Agreement Definitions . Unless otherwise defined herein or
the context otherwise requires, capitalized terms used in this
Guaranty, including its preamble and recitals, have the meanings
provided in the Credit Agreement,
SECTION 1.3 UCC
Definitions . Unless otherwise defined herein or the
context otherwise requires, terms for which meanings are provided
in the UCC are used in this Guaranty, including its preamble and
recitals, with such meanings.
ARTICLE II
GUARANTY PROVISIONS
SECTION 2.1
Guaranty . Each Guarantor hereby absolutely,
unconditionally, and irrevocably (1) guarantees the full and
punctual payment when due, whether at stated maturity, by required
prepayment, declaration, acceleration, demand or otherwise, of all
Obligations of the Borrowers and each other Obligor now or
hereafter existing under each of the Credit Agreement, the Notes
and each other Loan Document to which the Borrowers or such other
Obligor is or may become a party, whether for principal, interest,
fees, expenses or otherwise (including all such amounts which would
become due but for the operation of the automatic stay under
Section 362(a) of the United States Bankruptcy Code, 11 U.S.C.
§362(a), and the operation of Sections 502(b) and 506(b) of
the United States Bankruptcy Code, 11 U.S.C. §502(b) and
§506(b)), and (2) indemnifies and holds harmless each
Lender and each holder of a Note for any and all costs and expenses
(including reasonable attorney’s fees and expenses) incurred
by such Lender or such holder, as the case may be, in enforcing any
rights under this Guaranty; provided however, that each
Guarantor shall be liable under this Guaranty for the maximum
amount of such liability that can be hereby incurred without
rendering this Guaranty, as it relates to such Guarantor, voidable
under applicable law relating to fraudulent conveyance or
fraudulent transfer, and not for any greater amount. This Guaranty
constitutes a guaranty of payment when due and not of collection,
and each Guarantor specifically agrees that it shall not be
necessary or required that any Lender or any holder of any Note
exercise any right, assert any claim or demand or enforce any
remedy whatsoever against the
Borrowers or any other Obligor (or any other Person) before or as a
condition to the obligations of such Guarantor hereunder.
SECTION 2.2
Acceleration of Guaranty . Each Guarantor agrees
that, in the event of the occurrence of any event of the type
described in Section 8. 01(f) of the Credit
Agreement, with respect to the Borrowers, any other Obligor or any
other Guarantor, and if such event shall occur at a time when any
of the Obligations may not then be due and payable, such Guarantor
will pay to the Lenders forthwith the full amount which would be
payable hereunder by such Guarantor if all such Obligations were
then due and payable.
SECTION 2.3 Guaranty
Absolute, etc . This Guaranty shall in all respects
be a continuing, absolute, unconditional and irrevocable guaranty
of payment, and shall remain in full force and effect until all
Obligations (other than contingent indemnity obligations) of the
Borrowers and each other Obligor have been paid in full (or, in the
case of L/C Obligations, Cash Collateralized), all obligations of
the Guarantors hereunder shall have been paid in full, all
Commitments shall have terminated and, except as provided in
Section 10. 01(e) of the Credit Agreement, all
Lender Hedging Agreements have terminated. No Guarantor may rescind
or revoke its obligations hereunder. Each Guarantor guarantees that
the Obligations of the Borrowers and each other Obligor will be
paid strictly in accordance with the terms of the Credit Agreement
and each other Loan Document under which they arise, regardless of
any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of any
Lender or any holder of any Note with respect thereto. The
liability of each Guarantor under this Guaranty shall be absolute,
unconditional and irrevocable irrespective of: (1) any lack of
validity, legality or enforceability of the Credit Agreement, any
Note or any other Loan Document; (2) the failure of any Lender
or any holder of any Note (a) to assert any claim or demand or
to enforce any right or remedy against the Borrower, any other
Obligor or any other Person (including any other guarantor) under
the provisions of the Credit Agreement, any Note, any other Loan
Document or otherwise, or (b) to exercise any right or remedy
against any other guarantor of, or collateral securing, any
Obligations of the Borrowers or any other Obligor; (3) any
change in the time, manner or place of payment of, or in any other
term of, all or any of the Obligations of the Borrowers or any
other Obligor, or any other extension, compromise or renewal of any
Obligations of the Borrowers or any other Obligor; (4) any
reduction, limitation, impairment or termination of any Obligations
of the Borrowers or any other Obligor for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to (and each Guarantor hereby waives any right
to or claim of) any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality,
nongenuineness, irregularity, compromise, unenforceability of, or
any other event or occurrence affecting, any Obligations of the
Borrowers, any other Obligor or otherwise; (5) any amendment
to, rescission, waiver, or other modification of, or any consent to
departure from, any of the terms of the Credit Agreement, any Note
or any other Loan Document; (6) any addition, exchange,
release, surrender or non-perfection of any collateral, or any
amendment to or waiver or release or addition of, or consent to
departure from, any other guaranty, held by any Lender or any
holder of any Note securing any of the Obligations of the Borrowers
or any other Obligor; (7) the insolvency or bankruptcy of, or
similar event affecting, the Borrowers or any other Obligor; or
(8) any other circumstance which might otherwise constitute a
defense available to, or a legal or equitable discharge of, the
Borrowers, any other Obligor, any surety or any guarantor. Each
Guarantor waives all rights and defenses which may arise with
respect to any of the foregoing, and each Guarantor waives any
right to revoke this Guaranty with respect to future
indebtedness.
SECTION 2.4
Reinstatement . Each Guarantor agrees that this
Guaranty shall continue to be effective or be reinstated, as the
case may be, if at any time any payment (in whole or in part) of
any of the Obligations is rescinded or must otherwise be restored
by any Lender or any holder of any Note, upon
the
insolvency, bankruptcy or reorganization of either Borrower, any
other Obligor or otherwise, all as though such payment had not been
made.
SECTION 2.5 Waiver,
etc. The Guarantors hereby waive promptness, diligence,
notice of acceptance and any other notice with respect to any of
the Obligations of the Borrowers or any other Obligor and this
Guaranty and any requirement that the Administrative Agent, any
other Lender or any holder of any Note protect, secure, perfect or
insure any security interest or Lien, or any property subject
thereto, or exhaust any right or take any action against the
Borrowers, any other Obligor or any other Person (including any
other guarantor) or entity or any collateral securing the
Obligations of the Borrowers or any other Obligor, as the case may
be.
SECTION 2.6 Waiver of
Subrogation . Until the Obligations are paid in full
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