|
EXHIBIT 10.2
RESTRICTED SUBSIDIARY
GUARANTEE
by
THE RESTRICTED SUBSIDIARIES OF
AMERIGAS PROPANE, L.P.
as Guarantors,
for the benefit of
WACHOVIA BANK, NATIONAL ASSOCIATION
AND THE BANKS,
Dated as of November 6, 2006
TABLE OF CONTENTS
|
|
|
|
|
|
|
|
|
Section 1.
|
|
Guaranteed Obligations
|
|
|
2
|
|
|
Section 2.
|
|
Obligations Exclusive
|
|
|
2
|
|
|
Section 3.
|
|
Obligations Independent
|
|
|
3
|
|
|
Section 4.
|
|
Waiver of Notice
|
|
|
3
|
|
|
Section 5.
|
|
Guarantee of Payment
|
|
|
3
|
|
|
Section 6.
|
|
Obligations Unconditional
|
|
|
4
|
|
|
Section 7.
|
|
Continuing Guarantee
|
|
|
5
|
|
|
Section 8.
|
|
Subordination
|
|
|
5
|
|
|
Section 9.
|
|
Exhaustion of Remedies
|
|
|
6
|
|
|
Section 10.
|
|
Representations and Warranties
|
|
|
8
|
|
|
Section 11.
|
|
Additional Covenants
|
|
|
10
|
|
|
Section 12.
|
|
Costs and Expenses
|
|
|
10
|
|
|
Section 13.
|
|
Assignment
|
|
|
10
|
|
|
Section 14.
|
|
Termination; Amendments; Waiver of
Remedies
|
|
|
10
|
|
|
Section 15.
|
|
Availability of Documents
|
|
|
10
|
|
|
Section 16.
|
|
Set-off
|
|
|
11
|
|
|
Section 17.
|
|
Notices
|
|
|
11
|
|
|
Section 18.
|
|
Reinstatement
|
|
|
11
|
|
|
Section 19.
|
|
Governing Law; Waiver of Jury Trial; Submission
to Jurisdiction
|
|
|
11
|
|
|
Section 20.
|
|
Counterparts
|
|
|
13
|
|
|
Section 21.
|
|
Certain Rights
|
|
|
13
|
|
|
Section 22.
|
|
Persons Becoming Restricted
Subsidiaries
|
|
|
13
|
|
|
Section 23.
|
|
Guarantors Ceasing to be Restricted
Subsidiaries
|
|
|
14
|
|
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.
W I T N E
S S E T H :
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:
- 2 -
(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.
- 3 -
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 other than payment
in full of the Obligations, including wit
|