Exhibit 10.70
GUARANTY
THIS GUARANTY
is made as of November 19, 2007 by each party named on the
signature pages hereto and the Additional Guarantors (as
hereinafter defined) (such Persons so listed and the Additional
Guarantors individually and collectively herein called “
Guarantor ”) in favor of TCW ASSET MANAGEMENT COMPANY,
as administrative agent for Holders, as such term is defined in the
Note Purchase Agreement described below.
RECITALS:
1. Rio
Vista Penny LLC, an Oklahoma limited liability company (
“Company ”), has executed in favor of Holders
those certain promissory notes dated of even date herewith, payable
to the order of Holders in the aggregate principal amount of
$30,000,000 (such promissory notes, as from time to time amended,
and all promissory notes given in substitution, renewal or
extension therefor or thereof, in whole or in part, being herein
collectively called the “Notes ”).
2. The
Notes were executed pursuant to a Note Purchase Agreement dated of
even date herewith (herein, as from time to time amended,
supplemented or restated, called the “ Note Purchase
Agreement ”), by and among Company, Agent and Holders,
pursuant to which Holders have agreed to advance funds to Company
under the Notes.
3. It is a condition precedent to Holders’ obligations to
advance funds pursuant to the Note Purchase Agreement that
Guarantor shall execute and deliver to Agent a satisfactory
guaranty of Company’s obligations under the Notes and the
Note Purchase Agreement.
4. Rio
Vista ECO LLC, an Oklahoma limited liability company (“
ECO ”), owns all of the outstanding equity interests
of Company and GO (as each are defined below).
5. Rio
Vista GO LLC, an Oklahoma limited liability company (“
GO ”), has executed in favor of Company that certain
promissory note dated as of November 19, 2007, payable to the
order of Company in the aggregate principal amount of $2,200,000
(such promissory note, as from time to time amended, and all
promissory notes given in substitution, renewal or extension
therefor or thereof, in whole or in part, being herein collectively
called the “ GO Note ”).
6. As
part of the consideration of Company’s advancing funds under
the GO Note to GO, GO agreed to execute and deliver to Agent a
satisfactory guaranty of Company’s obligations under the
Notes and the Note Purchase Agreement.
7. GO
owns all of the outstanding equity interests of GO, LLC, an
Oklahoma limited liability company (“ GO LLC
”).
8. Company owns all of the outstanding equity interests of MV
Pipeline Company, an Oklahoma corporation (“ MV
”).
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9. Company, ECO, GO, GO LLC, MV, and the other direct and
indirect subsidiaries of Company are mutually dependent on each
other in the conduct of their respective businesses under a holding
company structure, with the credit needed from time to time by each
often being provided by another or by means of financing obtained
by one such affiliate with the support of the others for their
mutual benefit and the ability of each to obtain such financing
being dependent on the successful operations of the others.
10. Each
Guarantor has determined that such Guarantor’s execution,
delivery and performance of this Guaranty may reasonably be
expected to benefit such Guarantor, directly or indirectly, and are
in the best interests of such Guarantor.
NOW,
THEREFORE, in consideration of the premises, of the benefits which
will inure to each Guarantor from Holders’ advances of funds
to Company under the Note Purchase Agreement, and of Ten Dollars
and other good and valuable consideration, the receipt and
sufficiency of all of which are hereby acknowledged, and in order
to induce Holders to advance funds under the Note Purchase
Agreement, each Guarantor hereby agrees with Agent, for the benefit
of Agent and Holders as follows:
AGREEMENTS:
Section 1. Definitions . Reference is hereby made to
the Note Purchase Agreement for all purposes. All terms used in
this Guaranty which are defined in the Note Purchase Agreement and
not otherwise defined herein shall have the same meanings when used
herein. All references herein to any Obligation Document, Note
Document, or other document or instrument refer to the same as from
time to time amended, supplemented or restated. As used herein the
following terms shall have the following meanings:
“
Additional Guarantor ” has the meaning given to such
term in Section 11.
“
Agent ” means the Person who, at the time in question,
is the “Administrative Agent” under the Note Purchase
Agreement.
“
Holders ” means all who at any time are
“Holders” under the Note Purchase Agreement.
“
Obligations ” means collectively all of the
indebtedness, obligations, and undertakings which are guaranteed by
each Guarantor and described in subsections (a) and
(b) of Section 2.
“
Obligation Documents ” means this Guaranty, the Notes,
the Note Purchase Agreement, the Note Documents, all other
documents and instruments under, by reason of which, or pursuant to
which any or all of the Obligations are evidenced, governed,
secured, or otherwise dealt with, and all other documents,
instruments, agreements, certificates, legal opinions and other
writings heretofore or hereafter delivered in connection herewith
or therewith.
“
Obligors ” means Company, Guarantors and any other
endorsers, guarantors or obligors, primary or secondary, of any or
all of the Obligations.
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“
Security ” means any rights, properties, or interests
of Agent or Holders, under the Obligation Documents or otherwise,
which provide recourse or other benefits to Agent or Holders in
connection with the Obligations or the non-payment or
non-performance thereof, including collateral (whether real or
personal, tangible or intangible) in which Agent or Holders have
rights under or pursuant to any Obligation Documents, guaranties of
the payment or performance of any Obligation, bonds, surety
agreements, keep-well agreements, letters of credit, rights of
subrogation, rights of offset, and rights pursuant to which other
claims are subordinated to the Obligations.
Section 2. Guaranty .
(a) Each
Guarantor hereby irrevocably, absolutely, and unconditionally
guarantees to Agent and each Holder the prompt, complete, and full
payment when due, and no matter how the same shall become due,
of:
(i) the Notes, including all principal, all interest thereon
and all other sums payable thereunder;
(ii) all obligations or liabilities of any Obligor owing to
Administrative Agent or any Holder Party under the Security
Documents;
(iii) all other sums payable under the other Note Documents,
whether for principal, interest, fees or otherwise; and
(iv) any and all other indebtedness or liabilities which may
at any time be owed to any Holder Party, whether incurred
heretofore or hereafter or concurrently herewith, voluntarily or
involuntarily, whether owed alone or with others, whether fixed,
contingent, absolute, inchoate, liquidated or unliquidated, whether
such liability arises by notes, discounts, overdrafts, open account
indebtedness or in any other manner whatsoever, and including
interest, attorneys’ fees and collection costs as may be
provided by law or in any instrument or agreement evidencing any
such indebtedness or liability.
Without
limiting the generality of the foregoing, each Guarantor’s
liability hereunder shall extend to and include all post-petition
interest, expenses, and other duties and liabilities of Company
described above in this subsection (a), or below in the following
subsection (b), which would be owed by Company but for the fact
that they are unenforceable or not allowable due to the existence
of a bankruptcy, reorganization, or similar proceeding involving
Company.
(b) Each
Guarantor hereby irrevocably, absolutely, and unconditionally
guarantees to Agent and each Holder the prompt, complete and full
performance, when due, and no matter how the same shall become due,
of all obligations and undertakings of Company to Agent or such
Holder under, by reason of, or pursuant to any of the Obligation
Documents.
(c) If
Company shall for any reason fail to pay any Obligation, as and
when such Obligation shall become due and payable, whether at its
stated maturity, as a result of the exercise of any power to
accelerate, or otherwise, each Guarantor will, upon demand by
Agent, pay such Obligation in full to Agent for the benefit of
Agent or the Holder to whom such Obligation is owed. If Company
shall for any reason fail to perform promptly any Obligation, each
Guarantor will, upon demand by Agent, cause such Obligation to be
performed or, if specified by Agent, provide sufficient funds, in
such amount and manner as Agent shall in good faith determine, for
the prompt, full and faithful performance of such Obligation by
Agent or such other Person as Agent shall designate.
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(d) If
either Company or any Guarantor fail to pay or perform any
Obligation as described in the immediately preceding subsections
(a), (b), or (c) each Guarantor will incur the additional
obligation to pay to Agent, and each Guarantor will forthwith upon
demand by Agent pay to Agent, the amount of any and all expenses,
including fees and disbursements of Agent’s counsel and of
any experts or agents retained by Agent, which Agent may incur as a
result of such failure.
(e) As
between Guarantors and Agent or Holders, this Guaranty shall be
considered a primary and liquidated liability of each
Guarantor.
(f) The
liability of each Guarantor (other than ECO) hereunder shall be
limited to the maximum amount of liability that can be 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.
Section 3. Unconditional Guaranty .
(a) No
action which Agent or any Holder may take or omit to take in
connection with any of the Obligation Documents, any of the
Obligations (or any other indebtedness owing by Company to Agent or
any Holder), or any Security, and no course of dealing of Agent or
any Holder with any Obligor or any other Person, shall release or
diminish any Guarantor’s obligations, liabilities, agreements
or duties hereunder, affect this Guaranty in any way, or afford any
Guarantor any recourse against Agent or any Holder, regardless of
whether any such action or inaction may increase any risks to or
liabilities of Agent or any Holder or any Obligor or increase any
risk to or diminish any safeguard of any Security. Without limiting
the foregoing, each Guarantor hereby expressly agrees that Agent
and Holders may, from time to time, without notice to or the
consent of any Guarantor, do any or all of the following:
(i) Amend, change or modify, in whole or in part, any one or
more of the Obligation Documents and give or refuse to give any
waivers or other indulgences with respect thereto.
(ii) Neglect, delay, fail, or refuse to take or prosecute any
action for the collection or enforcement of any of the Obligations,
to foreclose or take or prosecute any action in connection with any
Security or Obligation Document, to bring suit against any Obligor
or any other Person, or to take any other action concerning the
Obligations or the Obligation Documents.
(iii) Accelerate, change, rearrange, extend, or renew the
time, rate, terms, or manner for payment or performance of any one
or more of the Obligations (whether for principal, interest, fees,
expenses, indemnifications, affirmative or negative covenants, or
otherwise).
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(iv) Compromise or settle any unpaid or unperformed Obligation
or any other obligation or amount due or owing, or claimed to be
due or owing, under any one or more of the Obligation
Documents.
(v) Take, exchange, amend, eliminate, surrender, release, or
subordinate any or all Security for any or all of the Obligations,
accept additional or substituted Security therefor, and perfect or
fail to perfect Agent’s or Holders’ rights in any or
all Security.
(vi) Discharge, release, substitute or add Obligors.
(vii) Apply all monies received from Obligors or others, or
from any Security for any of the Obligations, as Agent or Holders
may determine to be in their best interest, without in any way
being required to marshal Security or assets or to apply all or any
part of such monies upon any particular Obligations.
(b) No
action or inaction of any Obligor or any other Person, and no
change of law or circumstances, shall release or diminish any
Guarantor’s obligations, liabilities, agreements, or duties
hereunder, affect this Guaranty in any way, or afford any Guarantor
any recourse against Agent or any Holder. Without limiting the
foregoing, the obligations, liabilities, agreements, and duties of
Guarantors under this Guaranty shall not be released, diminished,
impaired, reduced, or affected by the occurrence of any or all of
the following from time to time, even if occurring without notice
to or without the consent of any Guarantor:
(i) Any voluntary or involuntary liquidation, dissolution,
sale of all or substantially all assets, marshalling of assets or
liabilities, receivership, conservatorship, assignment for the
benefit of creditors, insolvency, bankruptcy, reorganization,
arrangement, or composition of any Obligor or any other proceedings
involving any Obligor or any of the assets of any Obligor under
laws for the protection of debtors, or any discharge, impairment,
modification, release, or limitation of the liability of, or stay
of actions or lien enforcement proceedings against, any Obligor,
any properties of any Obligor, or the estate in bankruptcy of any
Obligor in the course of or resulting from any such
proceedings.
(ii) The failure by Agent or any Holder to file or enforce a
claim in any proceeding described in the immediately preceding
subsection (i) or to take any other action in any proceeding
to which any Obligor is a party.
(iii) The release by operation of law of any Obligor from any
of the Obligations or any other obligations to Agent or any
Holder.
(iv) The invalidity, deficiency, illegality, or
unenforceability of any of the Obligations or the Obligation
Documents, in whole or in part, any bar by any statute of
limitations or other law of recovery on any of the Obligations, or
any defense or excuse for failure to perform on account of force
majeure, act of God, casualty, impossibility, impracticability, or
other defense or excuse whatsoever.
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(v) The failure of any Obligor or any other Person to sign any
guaranty or other instrument or agreement within the contemplation
of any Obligor, Agent or any Holder.
(vi) The fact that Guarantors may have incurred directly part
of the Obligations or is otherwise primarily liable therefor.
(vii) Without limiting any of the foregoing, any fact or event
(whether or not similar to any of the foregoing) which in the
absence of this provision would or might constitute or afford a
legal or equitable discharge or release of or defense to a
guarantor or surety other than the actual payment and performance
by Guarantors under this Guaranty.
(c) Agent
and Holders may invoke the benefits of this Guaranty before
pursuing any remedies against any Obligor or any other Person and
before proceeding against any Security now or hereafter existing
for the payment or performance of any of the Obligations. Agent and
Holders may maintain an action against any Guarantor on this
Guaranty without joining any other Obligor therein and without
bringing a separate action against any other Obligor.
(d) If
any payment to Agent or any Holder by any Obligor is held to
constitute a preference or a voidable transfer under applicable
state or federal laws, or if for any other reason Agent or any
Holder is required to refund such payment to the payor thereof or
to pay the amount thereof to any other Person, such payment to
Agent or such Holder shall not constitute a release of any
Guarantor from any liability hereunder, and each Guarantor agrees
to pay such amount to Agent or such Holder on demand and agrees and
acknowledges that this Guaranty shall continue to be effective or
shall be reinstated, as the case may be, to the extent of any such
payment or payments. Any transfer by subrogation which is made as
contemplated in Section 6 prior to any such payment or
payments shall (regardless of the terms of such transfer) be
automatically voided upon the making of any such payment or
payments, and all rights so transferred shall thereupon revert to
and be vested in Agent and Holders.
(e) This
is a continuing guaranty and shall apply to and cover all
Obligations and renewals and extensions thereof and substitutions
therefor from time to time.
Section 4. Waiver . Each Guarantor hereby waives, with
respect to the Obligations, this Guaranty, and the other Obligation
Documents:
(a) notice of the incurrence of any Obligation by Company, and
notice of any kind concerning the assets, liabilities, financial
condition, creditworthiness, businesses, prospects, or other
affairs of Company (it being understood and agreed that:
(i) e
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