THIS GUARANTY
(this “ Guaranty ”), dated as of
February 21, 2008, is made by the undersigned (the “
Guarantor ”), in favor of ROYAL BANK OF CANADA,
as administrative agent for the Lenders (as defined
below).
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, the
Borrowers have covenanted in Section 6.14 of the Credit
Agreement within thirty (30) days after the formation or
acquisition of any Subsidiary to cause such Subsidiary to execute a
Guaranty and Collateral Documents; and
WHEREAS, Guarantor
was formed by the MLP on January 23, 2008 and is required to
execute and deliver this Guaranty; and
WHEREAS, Guarantor
has duly authorized the execution, delivery and performance of this
Guaranty; and
WHEREAS, Guarantor
is a wholly owned direct or indirect subsidiary of the MLP;
and
WHEREAS, it is in
the best interests of Guarantor to execute this Guaranty inasmuch
as 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, Guarantor
agrees, for the benefit of each Lender, as follows:
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.
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Guaranty
“
Commitments ” means each Commitment as defined
in the Credit Agreement.
“
Credit Extensions ” means each Credit Extension
as defined in the Credit Agreement.
“
Guarantor ” 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 Borrowers 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 . 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 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 Guarantor, voidable under applicable law relating to
fraudulent conveyance or fraudulent transfer, and not for any
greater amount.
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This Guaranty
constitutes a guaranty of payment when due and not of collection,
and 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 Guarantor
hereunder.
SECTION 2.2
Acceleration of Guaranty . 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, Guarantor will pay to the Lenders
forthwith the full amount which would be payable hereunder by
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 Guarantor 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. Guarantor may not rescind or
revoke its obligations hereunder. 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 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 Borrowers, 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 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. Guarantor waives
all rights and defenses which may arise with respect to any of the
foregoing, and Guarantor waives any right to revoke this Guaranty
with respect to future indebtedness.
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SECTION 2.4
Reinstatement . 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. Guarantor hereby waives promptness,
diligence, notice of acceptance and an
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