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EXHIBIT 10.10
AMENDED AND RESTATED GUARANTY AGREEMENT, dated as of October 27, 1995,
by and between GETTY PETROLEUM CORP., a Delaware corporation having its
principal place of business at 000 Xxxxxxx Xxxxxxxx, Xxxxxxx, Xxx Xxxx 00000
(the "Guarantor") and FLEET BANK OF MASSACHUSETTS, N.A. (the "Bank").
This Amended and Restated Guaranty Agreement amends and restates the
Guaranty Agreement dated as of December 7, 1987 between the Guarantor and Bank
of New England, N.A. The Bank is the successor by name change to Fleet National
Bank of Boston, which was the successor in interest to the Federal Deposit
Insurance Corporation, as Receiver for New Bank of New England, N.A., which was
the successor in interest to the Federal Deposit Insurance Corporation, as
Receiver for Bank of New England, N.A.
In order to induce the Bank to refinance loans in the principal amount
of $18,319,521.00 to Leemilt's Petroleum, Inc., a New York corporation and a
wholly owned Subsidiary of the Guarantor (the "Borrower"), pursuant to an
Amended and Restated Loan Agreement dated as of the date hereof by and between
the Borrower and the Bank (the "Loan Agreement"), the Guarantor is entering into
this Agreement with the Bank pursuant to which the Guarantor guarantees the
payment and performance in full of all of the Obligations (as that term is
hereinafter defined).
Accordingly, in consideration of the Bank's commitment to refinance
loans to the Borrower pursuant to the Loan Agreement and in consideration of the
premises and of the covenants herein contained and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto hereby agree as follows:
Section 1. Definitions. The following terms shall have the meanings set
forth in this Section 1 hereof or elsewhere in the provisions of this Agreement
referred to below:
Agreement means this Amended and Restated Guaranty Agreement as
originally executed, or, if this Amended and Restated Guaranty Agreement is
amended, modified or supplemented, as so amended, modified or supplemented.
Bank means Fleet Bank of Massachusetts, N.A.
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Borrower means Leemilt's Petroleum, Inc., a New York corporation.
Contingent Liabilities means any guaranties, endorsements, agreements
to purchase or provide funds for the payment of obligations of others, or other
liabilities which would be classified as contingent in accordance with generally
accepted accounting principles consistently applied, excluding, however,
endorsements of checks or other negotiable instruments for deposit or collection
in the ordinary course of business.
Guarantor means Getty Petroleum Corp., a Delaware corporation.
Loans means the loans from the Bank to the Borrower pursuant to the
terms of the Loan Agreement.
Loan Agreement means the Amended and Restated Loan Agreement dated as
of the date hereof between the Borrower and the Bank, as originally executed, or
if amended, modified or supplemented, as so amended, modified or supplemented.
Notes means, collectively, the Amended and Restated Master Note and the
Collateral Note(s), or if amended, modified or supplemented, as so amended,
modified or supplemented, and any note issued in exchange for or replacement of
any such note pursuant to the terms of the Loan Agreement.
Obligations means all indebtedness, obligations and liabilities, direct
or indirect, matured or unmatured, primary or secondary, certain or contingent,
of the Borrower to the Bank for the payment of money now or hereafter owing or
incurred (including, without limitation, reasonable costs and expenses incurred
by the Bank in attempting to collect or enforce any of the foregoing) which are
chargeable to the Borrower and which arise under or pursuant to the Loan
Agreement or the Notes, accrued in each case to the date of payment hereunder,
and Obligation means any one of the Obligations.
Other Business(es) has the meaning set forth in Section 16.2 hereof.
Subsidiary means, with respect to any Person that is not an individual,
any other present or future corporation or other legal entity a majority of
whose outstanding capital stock or other
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ownership interests having ordinary voting power to elect a majority of the
board of directors or other persons performing similar functions is at the time
owned directly or indirectly by such Person.
All other capitalized terms used herein which are defined in the Loan
Agreement have the meanings ascribed to them therein, unless they are expressly
otherwise defined herein.
Section 2. Guaranty of Payment.
Section 2.1. Guaranty of Payment of Obligations. The Guarantor hereby
unconditionally guarantees to the Bank the payment in full of each Obligation,
when and as such Obligation becomes due and payable in accordance with the terms
of the Loan Agreement and the Notes, whether such Obligation is outstanding on
the date hereof or arises or is incurred hereafter. The guaranty hereby made by
the Guarantor is an absolute, unconditional and continuing guaranty of the full
and punctual payment by the Borrower of all of the Obligations in accordance
with the terms of the Loan Agreement and not of their collectibility only and is
in no way conditioned upon any requirement that the Bank first attempt to
collect any of the Obligations from the Borrower or resort to any other
security, collateral or other means of obtaining payment of any of the
Obligations which the Bank now has or may acquire after the date hereof, or upon
any other contingency whatsoever.
Section 2.2. Payments. If the Borrower shall fail to make any payment
of any Obligation punctually when and as such obligation shall become due and
payable and such failure shall continue beyond the period of grace, if any,
applicable thereto, then the Guarantor hereby agrees to make such payment of
such Obligation, in funds immediately available to the Bank, upon written demand
by the Bank.
Section 2.3. Continuing Security of this Agreement. This Agreement and
the rights, remedies, powers and privileges of the Bank hereunder shall not in
any way be prejudiced or affected by an intermediate payment by the Borrower of
any part of the Obligations. This Agreement and the obligations of the Guarantor
hereunder shall be in addition to and shall not in any way be prejudiced or
affected by any other collateral or other security or guarantees now or
hereafter held by the Bank for all or any part of the Obligations, and every
right, remedy, power or privilege given to the Bank hereunder shall be in
addition to and not a limitation of any and every other right, remedy, power or
privilege vested in the Bank under any other collateral. No assurances, security
or payment of any of
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the Obligations which is avoided under any enactment relating to bankruptcy,
liquidation or insolvency, and no release, settlement or discharge given or made
by the Bank on the faith of any such assurance, security or payment shall
prejudice or affect the right of the Bank to recover from the Guarantor to the
full extent of the guaranty hereby made by the Guarantor as if such assurance,
security, payment, release, settlement or discharge (as the case may be) had
never been given or made.
Section 3. Demands for Payment. Each demand for payment pursuant to Section
2.2 hereof shall be made in accordance with the terms of Section 18 hereof.
Demands for payment hereunder may be made on any number of occasions. A dated
statement signed by an officer of the Bank and setting forth the amount of the
Obligations at the time owing to the Bank, or (as the case may be) setting forth
the amount of the obligations at the time owing by the Guarantor to the Bank
pursuant to Section 9 hereof, shall, save for manifest error, be prima facie
evidence thereof as between the Guarantor and the Bank in any legal proceedings
against the Guarantor in connection with this Agreement.
Section 4. Waivers of Notice, Assent, Etc. The Guarantor hereby waives
notice of acceptance of this Agreement, notice of any and all loans or advances
made or other financial accommodations extended to the Borrower by the Bank
under the Loan Agreement, notice of the occurrence of any Default or Event of
Default or of any demand upon the Borrower for any payment under the Loan
Agreement, notice of any action at any time taken or omitted by the Bank under
or in respect of the Loan Agreement or any of the Obligations, any requirement
of diligence or to mitigate damages and, generally, all demands, notices and
other formalities of every kind in connection with this Agreement (except as
otherwise expressly provided hereby), the Loan Agreement or any of the
Obligations. The Guarantor hereby assents to, and waives notice of, any
extension or postponement of the time for the payment of any of the Obligations,
the acceptance of any partial payment thereon, any waiver, consent or other
action or acquiescence by the Bank at any time or times in respect of any
default by the Borrower in the performance or satisfaction of any term,
covenant, condition or provision of the Loan Agreement, any amendment,
modification or waiver to the Loan Agreement, the Notes or any other Loan
Document, any and all other indulgences whatsoever by the Bank in respect of any
of the Obligations or otherwise, the taking, addition, substitution or release,
in whole or in part, at any time or times, of any security for any of the
Obligations, the addition, substitution or release, in whole or in part, of any
person or persons (other than the Borrower) primarily or secondarily liable in
respect of any of the Obligations or any
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other events or circumstances which might constitute a legal or equitable
discharge of a surety or guaranty. Without limitation of the generality of the
foregoing, the Guarantor assents to any other action or delay in acting or
failure to act on the part of the Bank, including, without limitation, any
failure strictly or diligently to assert any right or pursue any remedy or to
mitigate damages or to comply fully with applicable laws or regulations
thereunder, which might, but for the provisions of this Section 4 hereof, afford
grounds for terminating, discharging or relieving the Guarantor, in whole or in
part, from any of its absolute and unconditional obligations hereunder, it being
the intention of the Guarantor that, so long as any of the Obligations remains
unsatisfied, the obligations of the Guarantor hereunder shall not be discharged
except by payment and then only to the extent of such payment. The obligations
of the Guarantor hereunder shall not be diminished or rendered unenforceable by
any bankruptcy, winding up, reorganization, arrangement, liquidation or similar
proceeding with respect to the Borrower, the Guarantor or the Bank. The guaranty
hereby made by the Guarantor shall continue in full force and effect
notwithstanding any absorption, merger, amalgamation or any other change
whatsoever in the name, membership, constitution or place of formation of the
Borrower, the Guarantor or the Bank.
Section 5. Place and Mode of Payments. Each payment by the Guarantor
under or in respect of this Agreement shall be made to the Bank in immediately
available and freely transferable funds at the Bank's office at 00 Xxxxx Xxxxxx,
Xxxxxx, Xxxxxxxxxxxxx 00000, Attention: Xxxxxx X. XxXxxxxx, Vice President.
Section 6. Set-off. Regardless of the adequacy of any collateral or
other means of obtaining prepayment of the Obligations, the Bank may at any time
and without prior notice to the Guarantor set-off the whole or any portion or
portions of any or all deposits and other sums credited by or due from the Bank
to the Guarantor against amounts payable under this Agreement, whether or not
any other person or persons could also withdraw money therefrom. The Bank will
promptly thereafter notify the Guarantor of any such set-off.
Section 7. Freedom to Deal with Borrower and Other Banks. The Bank
shall be at liberty, without giving notice to or obtaining the assent of the
Guarantor and without relieving the Guarantor of any liability hereunder, to
deal with the Borrower and with each other party who now is or after the date
hereof becomes liable in any manner for any of the Obligations, in such manner
as the Bank in its sole discretion deems fit, and to this end the Guarantor
agrees that the Bank may in its sole discretion do any or all of the following
things: (a) extend credit, make loans and afford
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other financial accommodations to the Borrower at such times, in such amounts
and on such terms as the Bank may approve, (b) vary the terms and grant
extensions or renewals of any present or future indebtedness or obligation to
the Bank of the Borrower or of any such other party, (c) grant time, waivers and
other indulgences in respect thereto, (d) vary, exchange, release or discharge,
wholly or partially, or delay in or abstain from perfecting and enforcing any
security or guaranty or other means of obtaining payment of any of the
Obligations which the Bank now have or acquire after the date hereof, (e) accept
partial payments from the Borrower or any such other party, (f) release or
discharge, wholly or partially, any endorser or guarantor, and (g) compromise or
make any settlement or other arrangement with the Borrower or any such other
party.
Section 8. Election of Remedies. This Agreement may be enforced by the
Bank from time to time as often as occasion therefor may arise and without any
requirement on the part of the Bank first to exercise any rights against the
Borrower or any other person or to exhaust any remedies available to the Bank
against the Borrower or any other person or to resort to any collateral or
security for any of the Obligations which is in the possession or under the
control of the Bank or to resort to any other source or means of obtaining
payment or enforcing payment of the Obligations or any of them.
Section 9. Expenses. The Guarantor hereby agrees to pay upon demand by
the Bank all reasonable out-of-pocket costs and expenses, including, but not
limited to, court costs and expenses and the fees and disbursements of lawyers,
incurred or expended by the Bank in connection with the enforcement of this
Agreement, together with interest on amounts recoverable under this Section 9
hereof from the time such amounts become due until payment at the rate
applicable to amounts overdue under the Loan Agreement. The covenant contained
in this Section 9 hereof shall survive the payment in full of all of the
Obligations.
Section 10. Further Assurances. The Guarantor will, at any time and
from time to time, upon request by the Bank, take or cause to be taken any
action and execute and deliver such, if any, further documents as, in the
reasonable opinion of the Bank, are necessary in order to give full effect to
this Agreement and to preserve the rights, powers, privileges and remedies of
the Bank hereunder.
Section 11. Waiver of Certain Defenses. The Guarantor hereby absolutely
and irrevocably waives, to the fullest extent permitted by law, any and all
defenses which may now or hereafter exist in respect of its
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obligations hereunder by virtue of any statute of limitations, stay or
moratorium law or other similar law now or hereafter in effect.
Section 12. Unenforceability of Obligations Against Borrower, Etc. It
is hereby agreed as a separate and independent stipulation that, if for any
reason the Borrower ceases to have any legal obligation to discharge the
Obligations or any of them, or if any of the moneys included in the Obligations
have become irrecoverable from the Borrower by operation of law or for any other
reason, or if any of the Obligations become unenforceable against the Borrower
by operation of law or for any other reason, this Agreement and the obligations
of the Guarantor hereunder shall nevertheless be binding on the Guarantor to the
same extent as if the Guarantor at all times prior to demand by the Bank for
payment hereunder had been, and at the time of, such demand was, the principal
debtor on all of such Obligations.
Section 13. Amendments and Waivers. Neither this Agreement nor any term
hereof may be changed, waived, discharged or terminated except by an instrument
in writing signed by the Bank and the Guarantor expressly referring to this
Agreement and to the provisions so changed, waived, discharged or terminated. No
such waiver shall extend to or affect any obligation not expressly waived or
impair any right consequent thereon. No course of dealing by the Bank and no
delay or omission on the part of the Bank in exercising any right or remedy
hereunder shall operate as a waiver of that or any other right or remedy
hereunder or otherwise be prejudicial thereto.
Section 14. Representations and Warranties of the Guarantor. The
Guarantor represents and warrants to the Bank that on and as of the date hereof:
(a) Organization: Good Standing. The Guarantor (i) is a
corporation duly organized, validly existing and in good standing under
the laws of Delaware, (ii) has all requisite corporate power to own its
property and conduct its business as now conducted and as presently
contemplated, and (iii) is in good standing and is duly authorized to
do business in each jurisdiction where the nature of its properties or
its business requires such qualification and in which failure so to
qualify would materially adversely affect its business or financial
condition.
(b) Authorization. The execution, delivery and performance of
this Agreement and the transactions contemplated hereby (i) are within
the corporate authority of the Guarantor, (ii)
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have been duly authorized by all proper corporate proceedings required to
make this Agreement the valid and enforceable obligation it purports to be,
(iii) will not contravene any provision of law, the charter documents or
by-laws of the Guarantor or any other material agreement, instrument or
undertaking binding upon the Guarantor, and (iv) do not require any
approval or consent of, or filing with, any governmental agency or
authority.
(c) Enforceability. Upon execution by the parties hereto, this
Agreement will be the valid and legally binding obligation of the
Guarantor, enforceable against it in accordance with the terms hereof,
except to the extent that the enforcement of the rights and remedies of the
Bank may be subject to bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting generally the enforcement of creditors' rights
and remedies, and the availability of equitable remedies may be subject to
the discretion of the court before which any proceeding thereof is brought.
Section 14.2. Governmental Approvals. No approval or consent or filing with
any governmental agency or authority is required to make valid and legally
binding the execution, delivery or performance by the Guarantor of this
Agreement.
Section 14.3. Financial Statements. The Guarantor has furnished to the Bank
(a) the audited consolidated financial statements of the Guarantor as at January
31, 1995 and (b) the unaudited consolidated financial statements of the
Guarantor as at July 31, 1995. Such financial statements were prepared in
accordance with generally accepted accounting principles applied on a consistent
basis and fairly present the financial position of the Guarantor as at the
respective dates thereof and its respective results of operations for the fiscal
year or quarter then ended.
Section 14.4. No Material Changes. Since July 31, 1995, there has been no
materially adverse change in the assets, liabilities, financial condition or
business of the Guarantor.
Section 14.5. Compliance With Other Instruments, Laws, Etc. The Guarantor
is not in violation of any provision of its charter documents or by-laws or any
agreement or instrument to which it may be subject or by which it or any of its
properties may be bound or any decree, order, judgment, or any statute, license,
rule or regulation, in any of the foregoing cases in a manner which could result
in the imposition of
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substantial penalties or materially and adversely affect the financial
condition, properties or business of the Guarantor.
Section 14.6. Governmental Approvals. The execution, delivery and
performance by the Guarantor of this Agreement and the transactions contemplated
hereby do not require the approval or consent of, or filing with, any
governmental agency or authority other than those already obtained.
Section 14.7. Litigation. There is no action, suit or proceeding at law
or in equity or by or before any governmental instrumentality or other agency
now pending or, to the knowledge of the Guarantor, threatened against or
affecting the Guarantor, or any properties or rights of the Guarantor, which, if
adversely determined, would materially impair the ability of the Guarantor to
carry on its business substantially as now conducted or would materially
adversely affect the financial condition of the Guarantor.
Section 14 8. Chief Executive Offices. Until the Bank receives notice
of a change, the chief executive offices of the Guarantor and the offices where
all the records and books of account of the Guarantor are kept shall be located
at 000 Xxxxxxx Xxxxxxxx, Xxxxxxx, Xxx Xxxx 00000.
Section 14.9. Indebtedness. No instrument evidencing or relating to any
Indebtedness of the Guarantor contains any restriction prohibiting the Guarantor
from incurring any other Indebtedness or Contingent Liabilities or any provision
requiring the Guarantor to maintain any minimum level of net worth or comply
with any other financial covenants except for the Loan Agreement dated as of
June 13, 1994 among Getty, Chemical Bank and National Westminster Bank USA.
Section 14.10. True Copies of Charter Documents. The Guarantor has
furnished or caused to be furnished to the Bank true and complete copies of the
charter documents and by-laws of the Guarantor, together with any amendments
thereto.
Section 14.11. Guaranteed Pension Plans. The Guarantor does not
contribute to any Guaranteed Pension Plans. The Guarantor does not contribute to
any multiemployer pension plans.
Section 14.12. Disclosure. No material representation or warranty made
by the Guarantor in any Loan Document or in any agreement, instrument, document,
certificate, statement or letter furnished to the Bank by or on behalf of the
Guarantor in connection with any of the transactions contemplated by any of the
Loan Documents contains any untrue
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statement of a material fact or omits to state a material fact necessary in
order to make the statements contained therein not misleading in light of the
circumstances in which they are made. There is no fact known to any officer of
the Guarantor which materially adversely affects, or which, in the best judgment
of any officer of the Guarantor, would in the future materially adversely
affect, the financial position, business, operations or affairs of the
Guarantor.
Section 15. Affirmative Covenants. The Guarantor covenants and agrees
that, so long as any of the Loans, the Master Note or any Collateral Note is
outstanding, or any Obligations are outstanding:
Section 15.1. Conduct of Business. The Guarantor will:
(a) do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence, rights
(charter and statutory), and franchises, licenses, material trademarks
and service marks, and copyrights; and
(b) keep true and accurate records and books of account,
prepared in accordance with generally accepted accounting principles,
consistently applied;
(c) cause all of its properties used or useful in the conduct
of its business to be maintained and kept in good condition, repair and
working order and supplied with all necessary equipment and cause to be
made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Guarantor may be
necessary so that the business carried on in connection therewith may
be properly and advantageously conducted at all times, and continue to
engage primarily in the business now conducted by it and in related
businesses, except as may be otherwise permitted under Section 16.2
hereof.
Section 15.2. Compliance with Agreements and Contracts. The Guarantor
will observe, conform to and comply with the provisions of its charter documents
and by-laws, all leases, and all agreements and instruments by which it or any
of its properties may be bound.
Section 15.3. Compliance with Law. The Guarantor will (a) comply with
all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or
awards to which it may be subject, noncompliance with which would have a
materially adverse effect on the business, operations or financial condition of
the Guarantor or the ability of the Guarantor to fulfill its
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obligations under this Agreement and (b) promptly obtain, maintain, apply for
renewal, and not allow to lapse, any authorization, consent, approval, license
or order, and accomplish any filing or registration with, any court or judicial,
administrative or governmental authority, which may be or may become necessary
in order that it perform all of its obligations under this Agreement and in
order that the same may be valid and binding and effective in accordance with
its terms and in order that the Bank may be able freely to exercise and enforce
any and all of its rights under this Agreement.
Section 15.4. Notification of Material Litigation, Default, Etc. The
Guarantor will promptly notify the Bank of (a) the commencement of any
litigation or administrative proceeding initiated against it (if it has
knowledge of the same) which is likely to involve any material risk of any
material judgment or liability not substantially covered by insurance or which
may otherwise result in a materially adverse change in the assets, financial
condition or business of the Guarantor, and (b) the occurrence of any Default or
Event of Default. The Guarantor will promptly give notice to the Bank of the
occurrence of any material default under any material instrument or agreement to
which the Guarantor (if it has knowledge of the same) is a party, and if any
person shall give any written notice or take any other action in respect of a
claimed default under any other material evidence of Indebtedness, indenture,
note or other obligation as to which the Guarantor is a party or obligor,
whether as principal or surety, the Guarantor shall promptly give written notice
thereof to the Bank, describing the notice or action and the nature of the
claimed default.
Section 15.5. Financial Statements, Certificates and Other Information.
The Guarantor will furnish to the Bank:
(a) as soon as available but in any event within forty-five
(45) days after the end of each of the first three fiscal quarters in
any fiscal year of the Guarantor, an unaudited consolidated balance
sheet for the Guarantor and its Subsidiaries as at the end of such
quarter, and an unaudited consolidated statement of income and
statement of changes in financial position for the Guarantor and its
Subsidiaries for the period commencing with the end of the preceding
fiscal year and ending with the end of such quarter, together with a
certificate of the chief financial officer of the Guarantor stating
that such financial statements fairly present the financial condition
of the Guarantor and its Subsidiaries as of the date thereof and have
been prepared in accordance with generally
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accepted accounting principles consistently applied, subject, however,
to audit and year-end adjustments;
(b) as soon as available but in any event within ninety (90)
days after the end of each fiscal year, an audited consolidated balance
sheet for the Guarantor and its Subsidiaries as at the end of such
fiscal year, and an audited consolidated statement of income and
statement of changes in financial position for the Guarantor and its
Subsidiaries for such fiscal year, prepared in accordance with
generally accepted accounting principles consistently applied, in each
case accompanied by the opinion of and report by Coopers & Xxxxxxx or
other independent certified public accountants of nationally recognized
standing selected by the Guarantor and acceptable to the Bank, such
opinion to be unqualified as to scope limitations imposed by the
Guarantor, and otherwise, without qualification except as therein
noted;
(c) accompanying each set of financial statements of the
Guarantor furnished pursuant to paragraph (a) or (b) above, an
Officer's Certificate stating that a review of the activities of the
Guarantor and the Borrower during the period covered by such financial
statements has been made under the supervision of the signer with a
view to determining whether, during such period, each of the Guarantor
and the Borrower has kept, observed, performed and fulfilled each and
every covenant and condition of each of the Loan Documents to which it
is a party and either (i) stating that, to the best of his knowledge
and belief, there neither exists on the date of such certificate, nor
existed during such period, any default under any existing loan or
credit agreement to which the Guarantor or the Borrower is a party, or
(ii) if any such default under any existing loan or credit agreement to
which the Guarantor or the Borrower is a party existed or exists,
specifying the nature thereof, the period of existence thereof and what
action the Guarantor or the Borrower, as appropriate, has taken, is
taking or proposes to take with respect thereto;
(d) accompanying each set of financial statements of the
Guarantor set forth in paragraph (b) above, a certificate of the
accounting firm stating that they have read a copy of this Agreement
and that, in the course of their regular audit of the business of the
Guarantor, which was conducted in accordance with generally accepted
auditing standards, nothing has come to their attention that caused
them to believe that any default under any existing loan or credit
agreement to which the Guarantor or the
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Borrower is a party has occurred during the fiscal year in question or
exists at the date of such certificate or, if in the opinion of such
firm a default under any existing loan or credit agreement to which the
Guarantor or the Borrower is a party has so existed or exists, a
statement as to the nature thereof;
(e) contemporaneously with the filing or mailing thereof,
copies of such other financial statements or reports as the Guarantor
shall send to its stockholders, and copies of all regular, and periodic
and other reports which the Guarantor may be required to file with the
Securities and Exchange Commission or any other governmental
commission, department, board, bureau or agency, federal or state
(including without limitation all reports on Forms 10-K, 10-Q and 8-K);
and
(f) with reasonable promptness, such other information
relating to the business or financial affairs of the Guarantor as the
Bank may reasonably request.
Section 15.6. Notice of Material Change. The Guarantor will promptly
notify the Bank of any materially adverse change in its financial condition,
business or operations.
Section 15.7. Inspection of Properties and Books. The Bank or any of
its designated representatives shall have the right to visit and inspect any of
the properties of the Guarantor, to examine the books of account of the
Guarantor, and to discuss the affairs, finances and accounts of the Guarantor
with, and to be advised as to the same by, its officers, all at such reasonable
times and intervals as the Bank may desire.
Section 15.8. ERISA. The Guarantor will promptly notify the Bank of any
Reportable Event (other than a Reportable Event as to which the Pension Benefit
Guaranty Corporation has waived the applicable 30-day notice requirement
pursuant to the provisions of ERISA) or any notice of termination of any Plan
under Sections 4041 or 4042 of ERISA. The Guarantor shall not permit any
employee pension benefit plan (as that term is defined in Section 3 of ERISA)
maintained by the Guarantor to (a) engage in any "prohibited transaction" as
such term is defined in Section 4975 of the Code which might result in a
material liability for the Guarantor, or (b) incur any "accumulated funding
deficiency", as such term is defined in Section 302 of ERISA, whether or not
waived, or (c) terminate any such benefit plan in a manner which could result in
the imposition of any material lien or encumbrance on the assets of the
Guarantor under Section 4068 of ERISA.
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Section 15.9. Maintenance of Office. The Guarantor will maintain its
chief executive office in Jericho, New York, or at such other place in the
United States of America as the Guarantor shall designate upon written notice to
the Bank, where notices, presentations and demands to or upon the Guarantor in
respect of this Agreement may be made.
Section 15.10. Further Assurances. The Guarantor shall at any time or
from time to time execute and deliver such further instruments and take such
further action as may reasonably be requested by the Bank, in each case further
and more perfectly to effect the purposes of this Agreement.
Section 16. Negative Covenants. The Guarantor covenants and agrees
that, so long as any of the Loans, the Master Note or any Collateral Note is
outstanding, or any Obligations are outstanding:
Section 16.1. Merger or Sale of Assets. The Guarantor will not:
(a) consolidate or merge with or into any other Person unless
(i) after giving effect to such consolidation or merger, no Default or
Event of Default exists and (ii) the Guarantor is the surviving
corporation of such consolidation or merger; or
(b) sell, lease, transfer or otherwise dispose of all or any
substantial portion of its assets;
(c) permit its ownership of the issued and outstanding capital
stock of the Borrower to be less than 80%; or
(d) cause the Borrower to have outstanding any commitments,
options, warrants, calls or other agreements or obligations (whether
written or oral) binding on the Borrower or which require or could
require the Borrower to issue, sell, grant, transfer, assign, mortgage,
pledge or otherwise dispose of more than 19% of (i) any securities
exchangeable for or convertible into or carrying any rights to acquire
any other right of any kind in the capital of the Borrower or (ii) any
options, warrants, or any other rights to acquire any right of any kind
in the capital of the Borrower.
Section 16.2. Lines of Business. The Guarantor will not directly or
indirectly through a Subsidiary engage in any business other than the retail and
wholesale distribution of petroleum products and the operation of convenience
stores or other retail businesses related to the operation of
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gasoline service Stations or other businesses which can reasonably be conducted
at gasoline service stations, except that the Guarantor may engage in any other
business (each an "Other Business" and collectively "Other Businesses")
(including the ownership and operation of petroleum refineries) acquired by the
Guarantor if the aggregate purchase price (including any direct or contingent
liabilities assumed by the Guarantor in connection with such acquisition) for
such Other Business, plus the aggregate purchase prices (including assumed
liabilities) for all Other Businesses previously acquired by the Guarantor, does
not exceed $25,000,000. The Bank shall have the right to approve all purchase
price allocations made in connection with any such acquisition of an Other
Business or Other Businesses as the same relate to compliance with this
Section 16.2 hereof.
Section 16.3. Acquisitions. The Guarantor will provide the Bank with
reasonable advance notice of any proposed acquisitions of assets or stock
(whether directly by the Guarantor or indirectly through a Subsidiary of the
Guarantor) with respect to which the aggregate purchase price (including any
assumption of liabilities) is $25,000,000 or more and will provide to the Bank
all information relating to such transactions as may be reasonably requested by
the Bank.
Section 16.4. Interest Rate Protection Arrangements. The Guarantor will
not and will not permit the Borrower to enter into any interest rate protection
arrangements with respect to the Loans with any Person other than the Bank,
unless the Guarantor shall have first requested the Bank to enter into an
interest rate protection arrangement on terms and conditions proposed in good
faith by the Borrower and the Bank shall have declined such request.
Section 17. Survival of Covenants. All covenants, agreements,
representations and warranties made herein shall be deemed to have been relied
on by the Bank notwithstanding any investigation made by the Bank or on its
behalf and shall survive the execution and delivery of this Agreement.
Section 18. Notices. Etc. (a) The Bank shall provide the Guarantor with
a copy of each notice sent to the Borrower pursuant to Section 7 of the Loan
Agreement. No failure of the Bank to provide any such notice shall operate to
relieve the Guarantor of any of its obligations hereunder.
(b) Except as otherwise expressly provided herein, all notices and
other communications made or required to be given pursuant to this Agreement
shall be deemed delivered if in writing (or in the form of a
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telecopy confirmed by letter) addressed as provided below and if either (i)
actually delivered at said address, or (ii) in the case of a letter, five
Business Days shall have elapsed after the same shall have been deposited in the
United States mails, postage prepaid and registered or certified:
(x) if to the Guarantor, at 000 Xxxxxxx Xxxxxxxx, Xxxxxxx, Xxx Xxxx
00000, Attention: Xxxx X. Xxxxxxxx, Senior Vice President and Chief Financial
Officer, or at such other address for notice as the Guarantor shall last have
furnished in writing to the Person giving the notice; or
(y) if to the Bank, at 00 Xxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000,
Attention: Xxxxxx X. XxXxxxxx, Vice President, or at such other address for
notice as the Bank shall last have furnished in writing to the Person giving the
notice.
Section 19. Governing Law: Miscellaneous. This Agreement is intended to
take effect as a sealed instrument to be governed by and construed in accordance
with the laws of the Commonwealth of Massachusetts and shall inure to the
benefit of the Bank and its successors and assigns, and shall be binding on the
Guarantor and the Guarantor's successors, assigns and legal representatives. The
descriptive headings of the sections hereof have been inserted herein for
convenience of reference only and shall not define or limit the provisions
hereof.
Section 20. Counterparts. This Agreement may be executed in any number
of counterparts, but all of such counterparts together shall constitute one and
the same agreement. In making proof of this Agreement, it shall not be necessary
to produce or account for more than one counterpart hereof executed by each of
the parties hereto.
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IN WITNESS WHEREOF, this Agreement has been executed by or on behalf of
the parties hereto as an instrument under seal as of the day first above
written.
GENTS PETROLEUM CORP.
By: /s/ Xxxx X. Fitterton
---------------------------------
Name: Xxxx X. Xxxxxxxx
Title: Senior Vice President and Chief
Financial Officer
FLEET BANK OF MASSACHUSETTS, N.A.
By: /s/ Xxxxxx X. XxXxxxxx
--------------------------------
Name: Xxxxxx X. XxXxxxxx
Title: Vice President
