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Exhibit 4.2
SUBSIDIARY GUARANTY AGREEMENT
THIS AGREEMENT dated as of August 23, 2007 among Con-way Inc.,
a
Delaware corporation (the "Borrower"), each of the Subsidiary
Guarantors
party hereto from time to time (collectively, the "Subsidiary
Guarantors")
and Goldman Sachs Credit Partners L.P., as Agent.
WHEREAS, the Borrower has entered into that Bridge Credit
Agreement (as
the same may be amended, modified, supplemented and extended
from time to
time, the "Credit Agreement") dated as of August 23, 2007 among
the Borrower,
the Banks party thereto and Goldman Sachs Credit Partners L.P.,
as Agent (the
"Agent"), pursuant to which the Borrower may be entitled,
subject to certain
conditions, to borrow up to $500,000,000;
WHEREAS, the Credit Agreement provides, among other things, that
one
condition to its effectiveness is the execution and delivery of
a guaranty
substantially in the form of this Agreement by the Borrower and
the
Subsidiary Guarantors listed on the signature pages hereof;
and
WHEREAS, in conjunction with the transactions contemplated by
the Credit
Agreement and in consideration of the financial and other
support that the
Borrower has provided, and such financial and other support as
the Borrower
may in the future provide, to the Subsidiary Guarantors, and in
order to
induce the Banks and the Agent to enter into the Credit
Agreement, the
Subsidiary Guarantors listed on the signature pages hereof are
willing to
guaranty the obligations of the Borrower under the Credit
Agreement and the
Notes issued pursuant thereto;
NOW, THEREFORE, in consideration of the premises and other good
and
valuable consideration, the receipt and sufficiency of which are
hereby
acknowledged, the parties hereto agree as follows:
ARTICLE 1.
DEFINITIONS
Section 1.01 Definitions.
Terms defined in the Credit Agreement and not otherwise defined
herein
are used herein as therein defined. In addition, the following
term, as used
herein, has the following meaning:
"Guarantied Obligations" means (i) all obligations of the
Borrower in
respect of principal of and interest on the Loans and the Notes,
(ii) all
other amounts payable by the Borrower under the Credit Agreement
or the
Notes, if any, and (iii) all renewals or extensions of the
foregoing, in each
case whether now outstanding or hereafter arising. The
Guarantied
Obligations shall include, without limitation, any interest,
costs, fees and
expenses which accrue on or with respect to any of the
foregoing, whether
before or after the commencement of any case, proceeding or
other action
relating to the bankruptcy, insolvency or reorganization of any
one or more
of the Borrower and the Subsidiary Guarantors, and any such
interest, costs,
fees and expenses that would have accrued thereon or with
respect thereto but
for the commencement of such case, proceeding or other
action.
ARTICLE 2
GUARANTIES
Section 2.01 The Guaranties.
Subject to Section 2.03, the Subsidiary Guarantors hereby,
jointly and
severally, unconditionally and irrevocably guaranty to the Banks
and the
Agent and to each of them, the due and punctual payment of all
Guarantied
Obligations as and when the same shall become due and payable,
whether at
maturity, by declaration or otherwise, according to the terms
thereof. In
case of failure by the Borrower punctually to pay any
indebtedness guarantied
hereby, the Subsidiary Guarantors, subject to Section 2.03,
hereby jointly,
severally and, to the extent permitted by law, unconditionally
agree to make
such payment punctually as and when the same shall become due
and payable,
whether at maturity, or by demand, declaration, acceleration or
otherwise.
Section 2.02 Guaranties Unconditional; Waiver.
To the extent permitted by applicable law, the obligations of
each
Subsidiary Guarantor under this Article 2 shall be unconditional
and absolute
and without limiting the generality of the foregoing, shall, to
the extent
permitted by law, not be released, discharged or otherwise
affected by:
(a) any extension, renewal, settlement, compromise, waiver
or
release in respect of any obligation of any other Obligor under
any
Financing Document, by operation of law or otherwise;
(b) any modification or amendment (including any increase in
the
aggregate Commitments and any increase in the obligations of
the
Borrower under the Financing Documents) of or supplement to any
other
Financing Document;
(c) any modification, amendment, waiver, release,
non-perfection
or invalidity of any direct or indirect security, or of any
guaranty or
other liability of any third party, for any obligation of any
other
Obligor under any Financing Document;
(d) any change in the corporate existence, structure or
ownership
of any other Obligor or any insolvency, bankruptcy,
reorganization or
other similar proceeding affecting any other Obligor or its
assets or
any resulting release or discharge of any obligation of any
other
Obligor contained in any Financing Document;
(e) the existence of any claim, set-off or other rights which
any
Subsidiary Guarantor may have at any time against any other
Obligor, the
Agent, any Bank or any other Person, whether or not arising
in
connection with the Financing Documents; provided that nothing
herein
shall prevent the assertion of any such claim by separate suit
or
compulsory counterclaim;
(f) any invalidity or unenforceability relating to or against
any
other Obligor for any reason of any Financing Document, or any
provision
of applicable law or regulation purporting to prohibit the
payment by
any other Obligor of the principal of or interest on any Note or
any
other amount payable by any other Obligor under any Financing
Document;
or
(g) any other act or omission to act or delay of any kind by
any
other Obligor, the Agent, any Bank or any other Person or any
other
circumstance whatsoever (other than payment in full of all
Guarantied
Obligations) that might, but for the provisions of this
paragraph,
constitute a legal or equitable discharge of the obligations of
any
Subsidiary Guarantor under this Article 2.
With respect to its obligations hereunder, to the extent
permitted by
applicable law, each Subsidiary Guarantor hereby expressly
waives diligence,
presentment, demand of payment, protest and all notices
whatsoever, and any
requirement that the Agent or any Bank exhaust any right, power
or remedy or
proceed against any Person under any of the Financing Documents
or against
any other Person under any other guarantee of, or security for,
any of the
Guaranteed Obligations.
In accordance with Section 2856 of the California Civil Code,
each
Subsidiary Guarantor unconditionally and irrevocably waives any
and all
rights and defenses available to it by reason of Sections 2787
to 2855,
inclusive, 2899 and 3433 of the California Civil Code. No other
provision of
this Agreement shall be construed as limiting the generality of
any of the
covenants and waivers set forth in this paragraph. As provided
below, this
Agreement shall be governed by, and shall be construed and
enforced in
accordance with, the laws of the State of New York. This
paragraph is
included solely out of an abundance of caution, and shall not be
construed to
mean that any of the above-referenced provisions of California
law are in any
way applicable to this Agreement or to any of the Guarantied
Obligations.
Section 2.03 Fraudulent Transfer.
Anything in this Guaranty Agreement to the contrary
notwithstanding, the
obligations of each Subsidiary Guarantor hereunder shall be
limited to a
maximum aggregate amount equal to the greatest amount that would
not render
such Subsidiary Guarantor's obligations hereunder subject to
avoidance as a
fraudulent transfer, obligation or conveyance under Section 548
of Title 11
of the United States Code or any provisions of applicable state
law
(collectively, the "Fraudulent Transfer Laws"), in each case
after giving
effect to all other liabilities of such Subsidiary Guarantor,
contingent or
otherwise, that are relevant under the Fraudulent Transfer Laws
(specifically
excluding, however, any liabilities of such Subsidiary Guarantor
(A) in
respect of intercompany debt owed or owing to the Borrower or
affiliates of
the Borrower to the extent that such debt would be discharged in
an amount
equal to the amount paid by such Subsidiary Guarantor hereunder
and (B) under
any Guarantee of senior unsecured debt or indebtedness
subordinated in right
of payment to the Guaranteed Obligations, which Guarantee
contains a
limitation as to maximum amount similar to that set forth in
this Section
2.03, pursuant to which the liability of such Subsidiary
Guarantor hereunder
is included in the liabilities taken into account in determining
such maximum
amount) and after giving effect as assets to the value (as
determined under
the applicable provisions of the Fraudulent Transfer Laws) of
any rights to
subrogation, contribution, reimbursement, indemnity or similar
rights of such
Subsidiary Guarantor pursuant to (I) applicable law or (II) any
agreement
providing for an equitable allocation among such Subsidiary
Guarantor and
other affiliates of the Borrower of obligations arising under
guarantees by
such parties (including the agreements described in Section
2.08).
Section 2.04 Discharge; Reinstatement in Certain
Circumstances.
Except as otherwise provided in Sections 3.01(c) and 4.03
hereof, each
Subsidiary Guarantor's obligations under this Article 2 shall
remain in full
force and effect until the Commitments are terminated and the
principal of
and interest on the Loans and all other amounts payable by the
Borrower under
the Financing Documents shall have been paid in full. If at any
time any
payment of the principal of or interest on any Loan or any other
amount
payable by the Borrower under any Financing Document is
rescinded or must be
otherwise restored or returned upon the insolvency, bankruptcy
or
reorganization of any Obligor or otherwise, each Subsidiary
Guarantor's
obligations under this Article 2 with respect to such payment
shall be
reinstated at such time as though such payment had become due
but had not
been made at such time.
Section 2.05 Subrogation.
Each Subsidiary Guarantor that makes a payment hereunder with
respect to
a Guarantied Obligation shall be subrogated to the rights of the
payee
against the Borrower with respect to such payment, p
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