RESTRICTED SUBSIDIARY
GUARANTEE
THE RESTRICTED SUBSIDIARIES
OF
AMERIGAS PROPANE, L.P.
as Guarantors,
WACHOVIA BANK, NATIONAL
ASSOCIATION
AND THE BANKS,
Dated as of November 6,
2006
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Guaranteed
Obligations
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2
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Obligations
Exclusive
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2
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Obligations
Independent
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3
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Waiver of
Notice
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3
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Guarantee of
Payment
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3
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Obligations
Unconditional
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4
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Continuing
Guarantee
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5
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Subordination
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5
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Exhaustion of
Remedies
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6
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Representations
and Warranties
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8
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Additional
Covenants
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10
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Costs and
Expenses
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10
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Assignment
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10
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Termination;
Amendments; Waiver of Remedies
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10
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Availability of
Documents
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10
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Set-off
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11
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Notices
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11
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Reinstatement
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11
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Governing Law;
Waiver of Jury Trial; Submission to Jurisdiction
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11
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Counterparts
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13
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Certain
Rights
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13
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Persons
Becoming Restricted Subsidiaries
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13
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Guarantors
Ceasing to be Restricted Subsidiaries
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14
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RESTRICTED SUBSIDIARY
GUARANTEE
RESTRICTED SUBSIDIARY GUARANTEE, dated as of
November 6, 2006 (as amended, modified or supplemented from
time to time, the “Guarantee Agreement”) made by the
undersigned Restricted Subsidiaries (each a “Guarantor”
and collectively, the “Guarantors”) of AmeriGas
Propane, L.P., a Delaware limited partnership (the
“Company”) for the benefit of Wachovia Bank, National
Association, as agent (the “Agent”) and the other
financial institutions party to the Credit Agreement dated as of
November 6, 2006 by and among the Company, the General
Partner, as guarantor, Petrolane, as guarantor, the financial
institutions party thereto (each a “Bank” and together
the “Banks”), the Agent and the other parties thereto.
All capitalized terms used herein and not otherwise defined herein
shall have the respective meanings provided in Credit Agreement
hereto.
WHEREAS, each of the Company, Petrolane and the
General Partner has entered into the Credit Agreement with the
Banks and the Agent;
WHEREAS, it is a condition precedent to the
financial accommodations provided under the Credit Agreement that
the Company shall have caused its Restricted Subsidiaries to
execute and deliver this Guarantee Agreement to the Agent and the
Banks;
WHEREAS, each Guarantor desires to execute this
Guarantee Agreement to satisfy the conditions described in the
preceding paragraph;
WHEREAS, each Guarantor is a Restricted
Subsidiary of the Company; and
WHEREAS, the board of directors or equivalent
governing body of each Guarantor has determined that it is in the
best interest of such Guarantor to execute this Guarantee
Agreement;
NOW, THEREFORE, in consideration of the benefits
accruing to each Guarantor, the receipt and sufficiency of which
are hereby acknowledged, each Guarantor hereby makes the following
representations and warranties to the Agent and the Banks and
hereby covenants and agrees with the Agent and the Banks as
follows:
Section 1. Guaranteed Obligations .
Each Guarantor, jointly and severally, irrevocably and
unconditionally guarantees the Obligations; provided ,
however , that each Guarantor shall be liable under this
Guarantee Agreement for the maximum amount of such liability that
can be hereby incurred without rendering this Guarantee Agreement,
as it relates to such Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer, and not
for any greater amount. Each Guarantor understands, agrees and
confirms that the Agent and the Banks may enforce this Guarantee
Agreement up to the full amount of the Obligations against each
Guarantor, subject as aforesaid, without proceeding against the
Company, against any security for the Obligations, or under any
other Guaranty covering the Obligations.
All payments made by any Guarantor under this
Guarantee Agreement shall be made to the Agent for the account of
the Banks and be applied as provided in Section 9.4 of the
Credit Agreement. All payments shall be made no later than 12:00
noon (New York time) on the date when due and shall be made in
Dollars and in immediately available funds to the Agent at the
Agent’s Payment Office or at such other place as the Agent
shall notify the Guarantors. All payments made by any Guarantor
hereunder shall be without setoff, counterclaim or other
defense.
Section 2. Obligations Exclusive .
The liability of each Guarantor hereunder is exclusive and
independent of any security for or other guaranty of the
Obligations whether executed by such Guarantor, any other
Guarantor, any other guarantor or by any other party, and the
liability of each Guarantor hereunder shall not be affected or
impaired by (a) any direction as to application of payment by
the Company or by any other party, or (b) any other continuing
or other guaranty, undertaking or maximum liability of a Guarantor
or of any other party as to the Indebtedness of the Company, or
(c) any payment on or in reduction of any such other guaranty
or undertaking except to the extent such payment is applied to the
Obligations or such reduction results from application of a payment
to the Obligations, or (d) any dissolution, termination or
increase, decrease or change in personnel by the Company, or
(e) any payment made to any Bank or the Agent on the amounts
which the Banks or the Agent repay the Company pursuant to a court
order in any bankruptcy, reorganization, arrangement, moratorium or
other debtor relief proceeding, and each Guarantor waives any right
to the deferral or modification of its obligations hereunder by
reason of any such proceeding.
Section 3. Obligations Independent .
The obligations of each Guarantor hereunder are independent of the
obligations of any other Guarantor, any other guarantor or the
Company, and a separate action or actions may be brought and
prosecuted against each Guarantor whether or not action is brought
against any other Guarantor, any other guarantor or the Company and
whether or not any other Guarantor, any other guarantor or the
Company be joined in any such action or actions. Each Guarantor
waives, to the fullest extent permitted by law, the benefit of any
statute of limitations affecting its liability hereunder or the
enforcement thereof. Any payment by the Company or other
circumstance which Operates to toll any statute of limitations as
to the Company shall operate to toll the statute of limitations as
to each Guarantor.
Section 4. Waiver of Notice . Each
Guarantor hereby waives notice of acceptance of this Guarantee
Agreement and notice of any liability to which it may apply, and
waives promptness, diligence, presentment, demand of payment,
protest, notice of dishonor or nonpayment of any such liabilities,
suit or taking of other action by the Agent or any Bank against,
and any other notice to, any party liable thereon (including such
Guarantor or any other guarantor).
Section 5. Guarantee of Payment .
This Guarantee Agreement is a guarantee of payment and not of
collection. The Agent or any Bank may at any time and from time to
time without the consent of, or notice to, any Guarantor, without
incurring responsibility to such Guarantor, without impairing or
releasing the obligations of such Guarantor hereunder, upon or
without any terms or conditions and in whole or in part:
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(a) change the manner, place or terms of
payment of, and/or change or extend the time of payment of, renew
or alter, any of the Obligations, any security therefor, or any
liability incurred directly or indirectly in respect thereof, and
the guarantee made in this Guarantee Agreement shall apply to the
Obligations as so changed, extended, renewed or altered;
(b) sell, exchange, release, surrender,
realize upon or otherwise deal with, in any manner and in any
order, any property by whomsoever at any time pledged or mortgaged
to secure, or howsoever securing, the Obligations or any
liabilities (including any of those hereunder) incurred directly or
indirectly in respect thereof or hereof, and/or any offset
thereagainst;
(c) exercise or refrain from exercising any
rights against the Company or any Guarantor or others or otherwise
act or refrain from acting;
(d) settle or compromise any of the
Obligations, any security therefor or any liability (including any
of those hereunder) incurred directly or indirectly in respect
thereof or hereof, and may subordinate the payment of all or any
part thereof to the payment of any liability (whether due or not)
of the Company to creditors of the Company;
(e) apply any sums by whomsoever paid or
howsoever realized to any liability or liabilities of the Company
to the Obligations regardless of what liabilities of the Company
remain unpaid;
(f) consent to or waive any breach of, or
any act, omission or default under the Credit Agreement, any other
Loan Document or any of the instruments or agreements referred to
therein, or otherwise amend, modify or supplement the Credit
Agreement, any other Loan Document or any of such other instruments
or agreements; and/or
(g) fail to perfect any Lien granted to the
Agent or to or for the benefit of any of Bank to secure any of the
Obligations.
Section 6. Obligations Unconditional
. (a) The obligations of each Guarantor under this Guarantee
Agreement are absolute and unconditional and shall remain in full
force and effect without regard to, and shall not be released,
suspended, discharged, terminated (except in accordance with the
terms hereof) or otherwise affected by, any circumstance or
occurrence whatsoever, including without limitation: (i) any
action or inaction by the Agent or any Bank as contemplated in
Section 5 of this Guarantee Agreement; (ii) any
invalidity, irregularity or unenforceability of all or part of the
Obligations or of any security therefor; or (iii) to the
extent permitted by applicable law, any other act or circumstance
that might otherwise constitute a legal or equitable discharge or
defense of a surety or a guarantor. This Guarantee Agreement is a
primary obligation of each Guarantor.
(b) The obligations of each Guarantor
hereunder shall be automatically reinstated if and to the extent
that for any reason any payment by or on behalf of the Company in
respect of the Obligations is rescinded or must be otherwise
returned by any holder of any of the obligations, whether as a
result of any proceedings in bankruptcy or reorganization or
otherwise.
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Section 7. Continuing Guarantee .
This Guarantee Agreement is a continuing one and all liabilities to
which it applies (or may apply) under the terms hereof shall be
conclusively presumed to have been created in reliance hereon. No
failure or delay on the part of the Agent or any Bank in exercising
any right, power or privilege hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right,
power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The
rights and remedies herein expressly specified are cumulative and
not exclusive of any rights or remedies which the Agent or any Bank
would otherwise have. No notice to or demand on any Guarantor in
any case shall (i) entitle such Guarantor to any other further
notice or demand in similar or other circumstances except for any
notice or demand required hereunder or (ii) constitute a
waiver of the rights of the Agent or any Bank to any other or
further action in any circumstances without notice or demand. It is
not necessary for the Agent or any Bank to inquire into the
capacity or powers of the officers, directors, partners or agents
acting or purporting to act on behalf of any Guarantor or the
Company, and any Obligations made or created in reliance upon the
professed exercise of such powers shall be guaranteed
hereunder.
Section 8. Subordination . Any
Indebtedness of the Company now or hereafter held by any Guarantor,
whether arising by subrogation, contribution or otherwise, is
hereby subordinated to the Obligations as provided for below; and
such Indebtedness of the Company to any Guarantor, if the Agent,
after an Event of Default has occurred and is continuing, so
requests, shall be collected, enforced and received by such
Guarantor as trustee for the Agent and the Banks and be paid over
to the Agent on account of the Obligations, but without affecting
or impairing in any manner the liability of such Guarantor under
the other provisions of this Guarantee Agreement. Prior to the
transfer to any non-Affiliate by any Guarantor of any note or
negotiable instrument evidencing any Indebtedness of the Company to
such Guarantor, such Guarantor shall mark such note or negotiable
instrument with a legend, acceptable to the Agent, that the same is
subject to this subordination.
Section 9. Exhaustion of Remedies .
(a) Each Guarantor waives any right (except as shall be
required by applicable statute and cannot be waived) to require the
Agent or the Bank to (i) proceed against the Company, any
other Guarantor or any other Person, (ii) proceed against or
exhaust any security held from the Company, any other Guarantor or
any other Person or (iii) pursue any other remedy in the
Agent’s or the Banks’ power whatsoever. Each Guarantor
waives any defense based on or arising out of any defense of the
Company, any other Guarantor or any other Person
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