EXHIBIT 10.1

EXECUTION VERSION

 

AMENDED AND RESTATED RECEIVABLE SALE AGREEMENT

 

DATED AS OF JANUARY 19, 2012

 

AMONG

 

FERRELLGAS, L.P.
AND
BLUE RHINO GLOBAL SOURCING, INC.,

 

AS ORIGINATORS,

 

AND

 

FERRELLGAS RECEIVABLES, LLC,

 

AS BUYER

 

 

TABLE OF CONTENTS

 

			Page
Article I PURCHASE AND CONTRIBUTION			2
Section 1.1.	Purchase of Receivables		2
Section 1.2.	Payment for the Purchases		2
Section 1.3.	Deemed Collections		4
Section 1.4.	Payments and Computations, Etc.		4
Section 1.5.	Intention of the Parties		4
Section 1.6.	Characterization		5
Article II PAYMENTS			6
Section 2.1.	Ordinary Course		6
Section 2.2.	Payment Rescission		6
Article III REPRESENTATIONS AND WARRANTIES			6
Section 3.1.	Representations and Warranties of Originators		6
Article IV CONDITIONS OF PURCHASE			10
Section 4.1.	Conditions Precedent to Purchase		10
Article V COVENANTS			10
Section 5.1.	Financial Reporting		10
Section 5.2.	Certificates; Other Information		11
Section 5.3.	Notices		11
Section 5.4.	Compliance with Laws		12
Section 5.5.	Preservation of Existence, Etc.		12
Section 5.6.	Payment of Obligations		13
Section 5.7.	Audits		13
Section 5.8.	Keeping of Records and Books		13
Section 5.9.	Compliance with Contracts and Credit and Collection Policy		14
Section 5.10.	Ownership		14
Section 5.11.	Purchasers’ Reliance		14
Section 5.12.	Collections		14
Section 5.13.	Negative Covenants of Originators		15
Article VI ADMINISTRATION AND COLLECTION			16
Section 6.1.	Designation of Servicer		16
Section 6.2.	Duties of Servicer		16
Section 6.3.	Servicing Fee		16
Article VII TERMINATION EVENTS			17
Section 7.1.	Termination Events		17
Section 7.2.	Remedies		18
Article VIII INDEMNIFICATION			18
Section 8.1.	Indemnities by Originators		18
Section 8.2.	Other Costs and Expenses		20
Article IX MISCELLANEOUS			21
Section 9.1.	Waivers and Amendments		21
Section 9.2.	Notices		21
Section 9.3.	Protection of Ownership Interest of Buyer		21
Section 9.4.	Confidentiality		22

 

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			Page
Section 9.5.	Bankruptcy Petition		22
Section 9.6.	Limitation of Liability		23
Section 9.7.	CHOICE OF LAW		23
Section 9.8.	CONSENT TO JURISDICTION		23
Section 9.9.	WAIVER OF JURY TRIAL		23
Section 9.10.	Integration; Binding Effect; Survival of Terms		24
Section 9.11.	Counterparts; Severability; Section References		24
Section 9.12.	No Novation as to Ferrellgas		24

 

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AMENDED AND RESTATED RECEIVABLE SALE AGREEMENT

 

THIS AMENDED AND RESTATED RECEIVABLE SALE AGREEMENT dated as of January 19, 2012 is entered into by and among Ferrellgas, L.P., a Delaware limited partnership ( “Ferrellgas” or an “Originator” ), Blue Rhino Global Sourcing, Inc., a Delaware corporation ( “Blue Rhino” or an “Originator” ), and Ferrellgas Receivables, LLC, a Delaware limited liability company ( “Buyer” ).  Unless defined elsewhere herein, capitalized terms used in this Agreement shall have the meanings assigned to such terms in Exhibit I.

 

PRELIMINARY STATEMENTS

 

A.            Ferrellgas and Buyer have previously executed and delivered that certain Receivable Sale Agreement dated as of April 6, 2010 (the “Existing Sale Agreement” ), pursuant to which Ferrellgas has been selling and contributing certain accounts receivable owed to it to Buyer.

 

B.            Blue Rhino desires to begin selling certain accounts receivable owed to it to Buyer, and Buyer wishes to begin purchasing such accounts receivable.  Accordingly, the Originators and Buyer wish to amend and restate the Existing Sale Agreement in its entirety to, among other things, add Blue Rhino as an Originator thereunder.

 

C.            Each of the Originators and Buyer intend the transactions contemplated hereby to be a true sale or, as applicable, a true contribution of such Originator’s Receivables and the associated Related Security from such Originator to Buyer, providing Buyer with the full benefits of ownership of the Receivables and the associated Related Security, and the Originators and Buyer do not intend these transactions to be, or for any purpose to be characterized as, loans from Buyer to either or both of the Originators.

 

E.             From time to time after the date hereof, Buyer will sell undivided interests in the Receivables and in the associated Related Security and Collections pursuant to that certain Receivables Purchase Agreement dated as of January 19, 2012 (as the same may from time to time hereafter be amended, supplemented, restated or otherwise modified, the “Purchase Agreement” ) among Buyer, as seller, Ferrellgas, as initial Servicer, the Purchasers (as defined therein) and Co-Agents (as defined therein) from time to time party thereto and Wells Fargo Bank, N.A. or any successor administrative agent appointed pursuant to the terms of the Purchase Agreement, as administrative agent for the Purchasers (in such capacity, the “Administrative Agent” ).

 

NOW, THEREFORE , in consideration of the premises and the agreements, provisions and covenants herein contained, the Originators and Buyer, do hereby agree to amend and restate the Existing Sale Agreement, without constituting a novation as to Ferrellgas, in its entirety as set forth herein:

 

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ARTICLE I
PURCHASE AND CONTRIBUTION

 

Section 1.1.            Purchase of Receivables . In consideration for the Purchase Price and upon the terms and subject to the conditions set forth herein, (a) effective as of its Applicable Closing Date, each Originator does hereby sell, assign, transfer, set-over and otherwise convey to Buyer, without recourse (except to the extent expressly provided herein), and Buyer does hereby purchase from such Originator, all of such Originator’s right, title and interest in and to all Receivables originated by it and existing as of the close of business on the Business Day immediately prior to such Applicable Closing Date, together, in each case, with all Related Security relating thereto and all Collections thereof and (b) from and after its Applicable Closing Date, each Originator hereby agrees to sell, assign, transfer, set-over and otherwise convey to Buyer, without recourse (except to the extent expressly provided herein), and Buyer hereby agrees to purchase from such Originator, all of such Originator’s right, title and interest in and to all Receivables originated by it from and after its Applicable Closing Date, together, in each case, with all Related Security relating thereto and all Collections thereof.  In accordance with the preceding sentence, Buyer shall acquire all of each Originator’s right, title and interest in and to all Receivables originated by it and existing as of the close of business on the Business Day immediately prior to its Applicable Closing Date and thereafter arising through and including the Termination Date, together with all Related Security relating thereto and all Collections thereof, and Buyer shall be obligated to pay the Purchase Price for each Receivable, its Related Security and Collections in accordance with Section 1.2.  In connection with the payment of the Purchase Price for any Receivable purchased hereunder, Buyer may request that the applicable Originator deliver, and such Originator shall deliver, such approvals, opinions, information, reports or documents as Buyer may reasonably request, it being understood that Buyer will not request supplemental opinions more than once every 5 years except in connection with a material change in applicable law or a material amendment to this Agreement.

 

Section 1.2.            Payment for the Purchases   (a) The Purchase Price for the Purchase of Receivables originated by each Originator that are in existence on the close of business on the Business Day immediately preceding its Applicable Closing Date (its “Initial Cutoff Date” ) shall be payable in full by Buyer to such Originator on its Applicable Closing Date, and shall be paid to such Originator in the following manner:

 

(i)            by delivery of immediately available funds, to the extent of funds made available to Buyer in connection with its subsequent sale of an interest in such Receivables to the Purchasers under the Purchase Agreement, and

 

(ii)           the balance, by the incurrence of a subordinated revolving loan from the applicable Originator to Buyer (a “Subordinated Loan” ) in an amount not to exceed the lesser of (A) the remaining unpaid portion of such Purchase Price, and (B) the maximum Subordinated Loan that could be borrowed without rendering Buyer’s Net Worth to be less than the Required Capital Amount.  Each Originator is hereby authorized by Buyer to endorse on the schedule attached to its Subordinated Note an appropriate notation evidencing the date and of the incurrence of each advance thereunder, as well as the date of each payment with respect thereto, provided that the failure to make such notation shall not affect any obligation of Buyer thereunder.

 

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The Purchase Price for each Receivable coming into existence after the applicable Originator’s Initial Cutoff Date shall be due and owing in full by Buyer to such Originator or its designee on the date each such Receivable comes into existence (except that Buyer may, with respect to any such Purchase Price, offset against such Purchase Price any amounts owed by such Originator to Buyer hereunder and which have become due but remain unpaid) and shall be paid to such Originator in the manner provided in the following paragraphs (b), (c) and (d)).

 

(b)           With respect to any Receivables coming into existence after the applicable Originator’s Initial Cutoff Date, on each Monthly Payment Date, Buyer shall pay the Purchase Price therefor to each Originator in accordance with Section 1.2(d) (in the case of Ferrellgas only) and in the following manner:

 

first , by delivery of immediately available funds, to the extent of funds available to Buyer from its subsequent sale of an interest in such Receivables to the Administrative Agent for the benefit of the Purchasers under the Purchase Agreement, or other cash on hand; and/or

 

second , by increasing the amount of the Subordinated Loan, provided that (i) the increase of any such Subordinated Loan shall be subject to the provisions set forth in Section 1.2(a)(ii)  and (ii) the Subordinated Loan of Blue Rhino shall be increased to fully satisfy Buyer’s obligation to pay the Purchase Price to Blue Rhino for Receivables originated by it prior any increase in the Subordinated Loan of Ferrellgas; and/or

 

third , solely in the case of Receivables originated by Ferrellgas, by accepting such Receivables as a contribution to Buyer’s capital; provided that no such capital contribution shall be made from and after the date on which Ferrellgas notifies Buyer in writing that it has designated a date as the Termination Date.

 

Subject to the limitations set forth in Section 1.2(a)(ii) , each Originator irrevocably agrees to advance each Subordinated Loan requested by Buyer on or prior to the Termination Date.  The Subordinated Loans made by each Originator shall be evidenced by, and shall be payable in accordance with the terms and provisions of its Subordinated Note and shall be payable solely from funds which Buyer is not required under the Purchase Agreement to set aside for the benefit of, or otherwise pay over to, the Administrative Agent, the Co-Agents or the Purchasers.

 

(c)           From and after the Termination Date, no Originator shall be obligated to sell Receivables to Buyer but may, at its option, sell Receivables if such Originator reasonably determines that the Purchase Price therefor will be satisfied with funds available to Buyer from sales of interests in the Receivables pursuant to the Purchase Agreement, Collections, proceeds of Subordinated Loans, other cash on hand or otherwise.

 

(d)           Although the Purchase Price for each Receivable coming into existence after the applicable Initial Cutoff Date shall be due and payable in full by Buyer to the applicable Originator on the date such Receivable comes into existence, settlement of the Purchase Price between Buyer and such Originator shall be effected on a monthly basis on Monthly Payment Dates with respect to all Receivables coming into existence during the same Calculation Period and based on the information contained in the Monthly Report delivered by the Servicer pursuant

 

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to Article VIII of the Purchase Agreement for the Calculation Period then most recently ended.  Although settlement shall be effected on Monthly Payment Dates, increases or decreases in the amount owing under the applicable Subordinated Note made pursuant to Section 1.2(b) and any contribution of capital by Ferrellgas to Buyer made pursuant to Section 1.2(b) shall be deemed to have occurred and shall be effective as of the last Business Day of the Calculation Period to which such settlement relates.  Notwithstanding the foregoing, on any date that the Aggregate Capital increases, the Buyer shall pay to the Originators, in the aggregate, the amount of such increase in partial settlement of the purchase of Receivables.

 

(e)           Each contribution of a Receivable by Ferrellgas to Buyer shall be deemed to be a Purchase of such Receivable by the Buyer for all purposes of this Agreement. Buyer hereby acknowledges that Ferrellgas shall have no obligations to make further capital contributions to Buyer, in respect of Ferrellgas’ equity interest in the Buyer or otherwise in order to provide funds to pay the Purchase Price to Ferrellgas under this Agreement or for any other reason.

 

Section 1.3.            Deemed Collections .  If on any day the Outstanding Balance of a Receivable is either (i) reduced as a result of any defective or rejected goods or services, any cash discount or any adjustment by the applicable Originator, or (ii) reduced or cancelled as a result of a setoff in respect of any claim by any Person (whether such claim arises out of the same or a related transaction or an unrelated transaction), the applicable Originator shall be deemed to have received on such day a Collection of such Receivable in the amount of such reduction or cancellation.  If on any day any of the representations or warranties in Section 3.1(h), (i), (j), (r) or (t) is no longer true with respect to any Receivable, the applicable Originator shall be deemed to have received on such day a Collection of such Receivable in full.

 

Section 1.4.            Payments and Computations, Etc.

 

(a)           All amounts to be paid or deposited by Buyer hereunder (except amounts payable by increasing the outstanding principal balance under a Subordinated Note) shall be paid or deposited to the applicable Originator’s Account on the day when due in immediately available funds.  All amounts to be paid or deposited by an Originator hereunder shall be paid or deposited to the Facility Account in accordance with the terms hereof on the day when due in immediately available funds.

 

(b)           In the event that any payment owed by any Person hereunder becomes due on a day that is not a Business Day, then such payment shall be made on the next succeeding Business Day.

 

(c)           If any Person fails to pay any amount hereunder when due, such Person agrees to pay, on demand, the Default Fee in respect thereof until paid in full; provided, however, that such Default Fee shall not at any time exceed the maximum rate permitted by applicable law.

 

Section 1.5.            Intention of the Parties .  It is the intention of the parties hereto that the contribution and the sale of the Receivables hereunder, shall constitute sales, contributions or other outright conveyances which are absolute and irrevocable and provide Buyer with the full benefits of ownership of the Receivables and the associated Related Security.  The sale and contribution of the Receivables hereunder are made without recourse to the applicable

 

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Originator; provided, however, that (i) each Originator shall be liable to Buyer for all representations, warranties, covenants and indemnities made by such Originator pursuant to the terms of the Transaction Documents to which such Originator is a party, and (ii) such sale and contribution do not constitute and are not intended to result in an assumption by Buyer or any assignee thereof of any obligation of such Originator or any other Person arising in connection with the Receivables, the related Contracts and/or other associated Related Security or any other obligations of such Originator.  In view of the intention of the parties hereto that the conveyances of the Receivables made hereunder shall constitute sales, contributions or other outright conveyances thereof rather than loans secured thereby, each Originator agrees that on or prior to its Applicable Closing Date, it has marked or will mark its master data processing records relating to the Receivables originated by it with a legend acceptable to Buyer and to the Administrative Agent (as Buyer’s assignee), evidencing that Buyer owns the Receivables as provided in this Agreement and to note in its financial statements that the Receivables have been sold or contributed, to Buyer and have been further sold or pledged to the Administrative Agent.  Each Originator authorizes Buyer or the Administrative Agent (as Buyer’s assignee) to file such financing or continuation statements, or amendments thereto or assignments thereof, and such other instruments or notices, as may be necessary or appropriate to perfect and maintain the perfection of Buyer’s ownership of the Receivables and the associated Related Security.

 

Section 1.6.            Characterization.

 

(a)           If, notwithstanding the intention of the parties expressed in Section 1.5, a court of competent jurisdiction shall characterize any sale or contribution by an Originator to Buyer of Receivables hereunder as a secured loan and not a sale, or such sale shall for any reason be ineffective or unenforceable, then this Agreement shall be deemed to constitute a security agreement under the UCC and other applicable law.  For this purpose and without being in derogation of the parties’ intention that each sale or contribution, as applicable, of Receivables hereunder shall constitute a true sale or contribution, as applicable, thereof, each Originator hereby grants to Buyer a valid and perfected security interest in all of such Originator’s right, title and interest in, to and under all Receivables now existing and hereafter arising, and in all Collections and Related Security with respect thereto, the Servicer’s Concentration Account, all other rights and payments relating to the Receivables and all proceeds of the foregoing to secure the prompt and complete payment of a loan deemed to have been made in an amount equal to the Purchase Price of the Receivables originated by such Originator together with all other obligations of such Originator hereunder, which security interest shall be prior to all other Adverse Claims thereto.  Buyer and its assigns shall have, in addition to the rights and remedies which they may have under this Agreement, all other rights and remedies provided to a secured creditor under the UCC and other applicable law, which rights and remedies shall be cumulative, each Originator hereby authorizes Buyer (or any of its assigns), within the meaning of Section 9-509 of any applicable enactment of the UCC, as secured party, to file, without the signature of the debtor, the UCC financing statements contemplated hereby.

 

(b)           Each Originator acknowledges that Buyer, pursuant to the Purchase Agreement, shall assign to the Administrative Agent, for the benefit of the Agents and the Purchasers thereunder, all of its rights, remedies, powers and privileges under this Agreement and that the Administrative Agent may further assign such rights, remedies, powers and privileges to the extent permitted in the Purchase Agreement.  Each Originator agrees that the Administrative

 

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Agent, as the assignee of the Buyer, shall, subject to the terms of the Purchase Agreement, have the right to enforce this Agreement and to exercise directly all of Buyer’s rights and remedies under this Agreement (including, without limitation, the right to give or withhold any consents or approvals of Buyer to be given or withheld hereunder, and, in any case, without regard to whether specific reference is made to Buyer’s assigns in the provisions of this Agreement which set forth such rights and remedies), and each Originator agrees to cooperate fully with the Agents and the Purchasers in the exercise of such rights and remedies.  Each Originator further agrees to give to the Administrative Agent copies of all notices it is required to give to Buyer hereunder.

 

ARTICLE II
PAYMENTS

 

Section 2.1.            Ordinary Course .  In the event that a court of competent jurisdiction holds that the transactions hereunder are not true sales or contributions, each of the Originators and Buyer represents and warrants as to itself that each remittance of Collections by such Originator to Buyer under this Agreement will have been (a) in payment of a debt incurred by such Originator in the ordinary course of business or financial affairs of such Originator and Buyer and (b) made in the ordinary course of business or financial affairs of such Originator and Buyer.

 

Section 2.2.            Payment Rescission .  No amount due and owing to either party hereunder shall be considered paid or applied hereunder to the extent that, at any time, all or any portion of such payment or application is rescinded by application of law or judicial authority, or must otherwise be returned or refunded for any reason.  The paying party shall remain obligated for the amount of any payment or application so rescinded, returned or refunded, and shall promptly pay to the Person who suffered such rescission, return or refund) the full amount thereof, plus interest thereon at the Default Fee from the date of any such rescission, return or refunding.

 

ARTICLE III
REPRESENTATIONS AND WARRANTIES

 

Section 3.1.            Representations and Warranties of Originators .  Each Originator hereby represents and warrants to Buyer and its assigns, as of its Applicable Closing Date and as of each Business Day thereafter through and including the Termination Date that:

 

(a)           Existence and Power .  Such Originator is a limited partnership or a corporation, as the case may be, duly organized, validly existing and in good standing under the laws of Delaware, and is duly qualified to do business and is in good standing as a foreign partnership or corporation, as applicable, and has and holds all partnership or corporate power and all governmental licenses, authorizations, consents and approvals required to carry on its business in each jurisdiction in which its business is conducted except where the failure to so qualify or so hold could not reasonably be expected to have a Material Adverse Effect.

 

(b)           Power and Authority; Due Authorization, Execution and Delivery .  The execution and delivery by such Originator of this Agreement and each other Transaction Document to which it is a party, and the performance of its obligations hereunder and thereunder and, such Originator’s use of the proceeds of the Purchase made hereunder, are within its partnership or corporate powers and authority and have been duly authorized by all necessary

 

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partnership or corporate action on its part.  This Agreement and each other Transaction Document to which such Originator is a party has been duly executed and delivered by such Originator.

 

(c)           No Conflict .  The execution and delivery by such Originator of this Agreement and each other Transaction Document to which it is a party, and the performance of its obligations hereunder and thereunder do not contravene or violate (i) its certificate of formation, partnership agreement, certificate of incorporation or bylaws, as the case may be, (ii) any law, rule or regulation applicable to it, (iii) any restrictions under any agreement, contract or instrument to which it is a party or by which it or any of its property is bound, or (iv) any order, writ, judgment, award, injunction or decree binding on or affecting it or its property, and do not result in the creation or imposition of any Adverse Claim on assets of such Originator or its Subsidiaries (except as created under the Transaction Documents) except, in each case, where such contravention or violation could not reasonably be expected to have a Material Adverse Effect; and no transaction contemplated hereby requires compliance with any bulk sales act or similar law.

 

(d)           Governmental Authorization .  Other than the filing of the financing statements required hereunder, no authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution and delivery by such Originator of this Agreement and each other Transaction Document to which it is a party and the performance of its obligations hereunder and thereunder.

 

(e)           Actions, Suits .  There are no actions, suits or proceedings pending, or to the best of such Originator’s knowledge, threatened, against or affecting such Originator, or any of its properties, in or before any Governmental Authority, which (a) purport to affect or pertain to this Agreement or any other Transaction Document or any of the transactions contemplated hereby or thereby; or (b) if determined adversely to such Originator, would reasonably be expected to have a Material Adverse Effect.  No injunction, writ, temporary restraining order or any order of any nature has been issued by any court or other Governmental Authority purporting to enjoin or restrain the execution, delivery or performance of this Agreement or any other Transaction Document, or directing that the transactions provided for herein or therein not be consummated as herein or therein provided.

 

(f)            Binding Effect .  This Agreement and each other Transaction Document to which such Originator is a party constitute the legal, valid and binding obligations of such Originator enforceable against such Originator in accordance with their respective terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

 

(g)           Accuracy of Information .  All information heretofore furnished by such Originator or any of its Affiliates to Buyer (or its assigns) for purposes of or in connection with this Agreement, any of the other Transaction Documents or any transaction contemplated hereby or thereby is, and all such information hereafter furnished by such Originator or any of its Affiliates to Buyer (or its assigns) will be, true and accurate in every material respect on the date such information is stated or certified and does not and will not contain any untrue statement of a

 

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material fact or omit any material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they are made, not misleading as of the time when made or delivered.

 

(h)            Use of Proceeds .  No Purchase Price payment hereunder will be used (i) for a purpose that violates, or would be inconsistent with, any law, rule or regulation applicable to such Originator or (ii) to acquire any security in any transaction which is subject to Section 13 or 14 of the Exchange Act, as amended.

 

(i)             Good Title .  On such Originator’s applicable Initial Cutoff Date and upon the creation of each Receivable coming into existence after such Initial Cutoff Date, such Originator (i) is the legal and beneficial owner of the Receivables originated by it and (ii) is the legal and beneficial owner of the Collections and associated Related Security with respect thereto, in each case, free and clear of any Adverse Claim except as created by the Transaction Documents.

 

(j)             Perfection .  This Agreement, together with the filing of the financing statements contemplated hereby, is effective to transfer to Buyer (and Buyer shall acquire from such Originator) legal and equitable title to, with the right to sell and encumber, the Receivables originated by it, free and clear of any Adverse Claim, except as created by the Transactions Documents.  There have been duly filed all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect Buyer’s ownership of the Receivables and the associated Related Security.

 

(k)            Places of Business and Locations of Records .  Such Originator is organized under the laws of Delaware.  The offices where such Originator keeps all of its records regarding the Receivables are located at the address(es) listed on Exhibit II, or such other locations of which Buyer has been notified in accordance with Section 5.13(a) in jurisdictions where all action required by Section 5.13(a) has been taken and completed.  Such Originator’s Federal Employer Identification Number is correctly set forth on Exhibit II.

 

(l)             Material Adverse Effect .  Since September 30, 2011, no event has occurred that would have a Material Adverse Effect.

 

(m)           Names .  In the five (5) years prior to its Applicable Closing Date, such Originator has not used any partnership or corporate names, trade names or assumed names other than the name in which it has executed this Agreement and as listed on Exhibit II.

 

(n)            Ownership of Buyer .  In the case of Ferrellgas only, such Originator owns, directly or indirectly, 100% of the issued and outstanding Equity Interests of Buyer, free and clear of any Adverse Claim.  Such Equity Interests are validly issued, fully paid and nonassessable, and there are no options, warrants or other rights to acquire securities of Buyer.

 

(o)            Not a Regulated Entity .  Such Originator is not an “ investment company ” within the meaning of the Investment Company Act of 1940, as amended, or any successor statute.  Such Originator is not subject to regulation under the Federal Power Act, the

 

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Interstate Commerce Act, any state public utilities code, or any other Federal or state statute or regulation limiting its ability to incur indebtedness or to sell interests in the Receivables originated by it.

 

(p)            Compliance with Law .  Such Originator has complied with all applicable laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject, except where the failure to so comply could not reasonably be expected to have a Material Adverse Effect.  Each Receivable originated by such Originator, together with the Contract related thereto, does not contravene any laws, rules or regulations applicable thereto (including, without limitation, laws, rules and regulations relating to truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy), and no part of such Contract is in violation of any such law, rule or regulation, except where such contravention or violation could not reasonably be expected to have a Material Adverse Effect.

 

(q)            Compliance with Credit and Collection Policy .  Such Originator has complied in all material respects with the Credit and Collection Policy with regard to each Receivable originated by it and the related Contract, and has not made any material change to such Credit and Collection Policy, except as to which Buyer (or its assigns) has been notified in accordance with Section 5.13(a).

 

(r)             Eligible Receivables .  Each of the Receivables originated by such Originator that is included in the Net Receivables Balance (as defined in the Purchase Agreement) in any Monthly Report or Interim Report (each, as defined in the Purchase Agreement) on any day prior to the Termination Date is an Eligible Receivable (as defined in the Purchase Agreement) as of the date specified in such report.

 

(s)            Non-Voidability .  Neither the sale nor the contribution by such Originator of the Receivables originated by it is voidable under any section of the Federal Bankruptcy Code.

 

(t)             Enforceability of Contracts .  Each Contract with respect to each Receivable originated by such Originator is effective to create, and has created, a legal, valid and binding obligation of the related Obligor to pay the Outstanding Balance of the Receivable created thereunder and any accrued interest thereon, enforceable against the Obligor in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).

 

(u)            Accounting .  The manner in which such Originator accounts for the sale and the contribution of the Receivables originated by it does not jeopardize its characterization as being a true sale or a true contribution, as applicable.

 

(v)            Tax Status .  Ferrellgas is subject to taxation under the Code only as a partnership and not as a corporation.

 

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ARTICLE IV
CONDITIONS OF PURCHASE

 

Section 4.1.             Conditions Precedent to Purchase .  Effectiveness of this Agreement is subject to the conditions precedent that (a) the Administrative Agent shall have received on or before the date of such purchase those documents listed on Schedule A hereto, (b) all conditions precedent to the Purchase Agreement as provided in and pursuant to the Purchase Agreement shall have been satisfied, (c) the representations and warranties set forth in Section 3.1 are true and correct in all material respects on the date hereof, and (d) no event has occurred and is continuing that will constitute a Termination Event, and no event has occurred and is continuing that would constitute a Potential Termination Event.

 

ARTICLE V
COVENANTS

 

Section 5.1.             Financial Reporting .  Ferrellgas shall deliver to Buyer and the Administrative Agent (as Buyer’s assignee), in form and detail satisfactory to Buyer and the Administrative Agent (as Buyer’s assignee) and consistent with the form and detail of financial statements and projections provided to Buyer and the Administrative Agent (as Buyer’s assignee) by Ferrellgas and its Affiliates prior to the date of this Agreement:

 

(a)            Ferrellgas’ Annual Financial Statements .  As soon as available, but not later than 100 days after the end of each fiscal year, a copy of the audited consolidated balance sheet of Ferrellgas and its Subsidiaries as at the end of such year and the related consolidated statements of income or operations, partners’ or shareholders’ equity and cash flows for such year, setting forth in each case in comparative form the figures for the previous fiscal year, and accompanied by the opinion of a nationally-recognized independent public accounting firm ( “Independent Auditor” ) which report shall state that such consolidated financial statements present fairly the financial position for the periods indicated in conformity with GAAP applied on a basis consistent with prior years.  Such opinion shall not be qualified or limited in any manner, including on account of any limitation on it because of a restricted or limited examination by the Independent Auditor of any material portion of Ferrellgas’ or any Subsidiary’s records; and

 

(b)            Ferrellgas’ Quarterly Financial Statements .  As soon as available, but not later than 45 days after the end of each of the first three fiscal quarters of each fiscal year, a copy of the unaudited consolidated balance sheet of Ferrellgas and its Subsidiaries as of the end of such quarter and the related consolidated statements of income, partners’ or shareholders’ equity and cash flows for the period commencing on the first day and ending on the last day of such quarter, and certified by a Responsible Officer of Ferrellgas as fairly presenting, in accordance with GAAP (subject to ordinary, good faith year-end audit adjustments), the financial position and the results of operations of Ferrellgas and the Subsidiaries.

 

Documents required to be delivered pursuant to Section 5.1 or Section 5.2(c ) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which Ferrellgas or the General Partner posts such documents, or provides a link thereto on its website on the internet at www.ferrellgas.com; or (ii) on which such documents are

 

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posted on Ferrellgas’ or the General Partner’s behalf on IntraLinks/IntraAgency or another relevant website, if any, to which each party hereto has access (whether a commercial, a third-party website, or whether sponsored by Buyer) provided that: (i) upon request by Buyer, Ferrellgas shall deliver paper copies of such documents to Buyer until a written request to cease delivering paper copies is given by Buyer to Ferrellgas and (ii) Ferrellgas shall notify (which notification may be by facsimile or electronic mail) Buyer of the posting of any such documents and provide to Buyer by electronic mail electronic versions (i.e., soft copies) of such documents.

 

Section 5.2.             Certificates; Other Information .  Ferrellgas (or, in the case of clause (d) below only, Blue Rhino) shall furnish to Buyer and the Administrative Agent (as Buyer’s assignee):

 

(a)            Independent Auditor’s Certificate .  Concurrently with the delivery of the financial statements referred to in Section 5.1(a), a certificate of the Independent Auditor stating that in making the examination necessary therefor no knowledge was obtained of any Termination Event or Potential Termination Event, except as specified in such certificate;

 

(b)            Compliance Certificate .  Concurrently with the delivery of the financial statements referred to in Sections 5.1(a) and (b), a Compliance Certificate with respect to the periods covered by such financial statements together with supporting calculations and such other supporting detail as Buyer and the Administrative Agent (as Buyer’s assignee) shall require;

 

(c)            SEC Reports .  Promptly, copies of all financial statements and reports that the MLP sends to its partners, and copies of all financial statements and regular, periodic or special reports (including Forms 10-K, 10-Q and 8-K) that Ferrellgas or any Affiliate of Ferrellgas, the General Partner, the MLP or any Subsidiary may make to, or file with, the SEC; and

 

(d)            Other Information .  Promptly, such additional information regarding the Receivables or the business, financial or partnership or corporate affairs of either Originator, the General Partner, the MLP or any Subsidiary as Buyer or the Administrative Agent (as Buyer’s assignee) may from time to time request.

 

Section 5.3.             Notices .  Each Originator shall promptly notify Buyer and the Administrative Agent (as Buyer’s assignee):

 

(a)            Of the occurrence of any Potential Termination Event or Termination Event with respect to such Originator;

 

(b)            Of any matter that has resulted or may reasonably be expected to result in a Material Adverse Effect, including (i) breach or non-performance of, or any default under, a Contractual Obligation of such Originator, the General Partner, the MLP or any Subsidiary; (ii) any dispute, litigation, investigation, proceeding or suspension between an Originator, the General Partner, the MLP or any Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting an Originator, the General Partner, the MLP or any Subsidiary of such Originator, including

 

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pursuant to any applicable Environmental Laws, in each case to the extent that any of the foregoing has resulted or may reasonably be expected to result in a Material Adverse Effect;

 

(c)            The occurrence of a default or an event of default under any other financing arrangement pursuant to which such Originator, the General Partner or the MLP is a debtor or an obligor;

 

(d)            At least thirty (30) days prior to the effectiveness of any material change in or material amendment to its Credit and Collection Policy, a copy of its Credit and Collection Policy then in effect and a notice (a) indicating such change or amendment, and (b) if such proposed change or amendment would be reasonably likely to adversely affect the collectability of the Receivables or decrease the credit quality of any newly created Receivables, requesting Buyer’s consent thereto;

 

(e)            Of any material change in accounting policies or financial reporting practices by such Originator or any of its consolidated Subsidiaries; and

 

(f)             If any of the representations and warranties made by such Originator in Article III ceases to be true and correct.

 

Each notice under this Section 5.3 shall be accompanied by a written statement by a Responsible Officer of the applicable Originator setting forth details of the occurrence referred to therein, and stating what action such Originator or any affected Affiliate proposes to take with respect thereto and at what time.  Each notice under Section 5.3(a)  shall describe with particularity any and all clauses or provisions of this Agreement or other Transaction Document that have been breached or violated.

 

Section 5.4.             Compliance with Laws .  Each Originator shall comply with all Requirements of Law of any Governmental Authority having jurisdiction over it or its business (including the Federal Fair Labor Standards Act), except such as may be contested in good faith or as to which a bona fide dispute may exist or the failure of which to comply with could not reasonably be expected to have a Material Adverse Effect.

 

Section 5.5.             Preservation of Existence, Etc .  Each Originator shall:

 

(a)            Preserve and maintain in full force and effect its partnership existence and good standing under the laws of its state or jurisdiction of organization except in connection with transactions permitted by the Credit Agreement;

 

(b)            Preserve and maintain in full force and effect all governmental rights, privileges, qualifications, permits, licenses and franchises necessary or desirable in the normal conduct of its business except in connection with transactions permitted by the Credit Agreement, or except where the failure to so preserve or maintain such governmental rights, privileges, qualifications, permits, licenses and franchises could not reasonably be expected to have a Material Adverse Effect;

 

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(c)            Preserve its business organization and goodwill, except where the failure to so preserve its business organization or goodwill could not reasonably be expected to have a Material Adverse Effect; and

 

(d)            Preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect.

 

Section 5.6.             Payment of Obligations .  Each Originator shall pay and discharge as the same shall become due and payable (except to the extent the failure to so pay and discharge could not reasonably be expected to have a Material Adverse Effect), all of its obligations and liabilities, including:

 

(a)            All tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings and adequate reserves in accordance with GAAP are being maintained by such Originator or such Subsidiary; and

 

(b)            All lawful claims which, if unpaid, would by law become a Adverse Claim upon its property, unless such claims are being contested in good faith by appropriate proceedings and adequate reserves in accordance with GAAP are being maintained by such Originator or such Subsidiary.

 

Section 5.7.             Audits .  Each Originator will furnish to Buyer (or its assigns) from time to time such information with respect to it and the Receivables originated by it as Buyer (or its assigns) may reasonably request.  Each Originator will, from time to time during regular business hours as requested by Buyer (or its assigns), upon reasonable notice and at the sole cost of such Originator, permit Buyer (or its assigns) or their respective agents or representatives (i) to examine and make copies of and abstracts from all Records in the possession or under the control of such Originator relating to the Receivables and the associated Related Security, including, without limitation, the related Contracts, and (ii) to visit the offices and properties of such Originator for the purpose of examining such materials described in clause (i) above, and to discuss matters relating to such Originator’s financial condition or the Receivables and the associated Related Security or such Originator’s performance under any of the Transaction Documents or such Originator’s performance under the Contracts and, in each case, with any of the officers or employees of such Originator having knowledge of such matters.

 

Section 5.8.             Keeping of Records and Books .  Each Originator will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Receivables originated by it in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the collection of all Receivables originated by it (including, without limitation, records adequate to permit the immediate identification of each new Receivable originated by it and all Collections of and adjustments to each existing Receivable originated by it).  Each Originator will give Buyer (or its assigns) notice of any material change in the administrative and operating procedures referred to in the previous sentence.

 

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Section 5.9.             Compliance with Contracts and Credit and Collection Policy .  Each Originator will timely and fully (i) perform and comply with all provisions, covenants and other promises required to be observed by it under the Contracts related to the Receivables originated by it, except where the failure to so comply could not reasonably be expected to have a material adverse impact on the overall collectability of the Receivables originated by it, and (ii) comply in all respects with its Credit and Collection Policy in regard to each Receivable originated by it and the related Contract, except where the failure to so comply could not reasonably be expected to have a material adverse impact on the overall collectability of the Receivables originated by it.

 

Section 5.10.           Ownership .  Each Originator will take all necessary action to establish and maintain, irrevocably in Buyer, legal and equitable title to the Receivables originated by such Originator, free and clear of any Adverse Claims other than Adverse Claims arising under the Transaction Documents.  Each Originator authorizes Buyer to file all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect Buyer’s interest in the Receivables and such other action to perfect, protect or more fully evidence the interest of Buyer as Buyer (or its assigns).

 

Section 5.11.           Purchasers’ Reliance .  Each Originator acknowledges that the Agents and the Purchasers are entering into the transactions contemplated by the Purchase Agreement in reliance upon Buyer’s identity as a legal entity that is separate from each Originator and any Affiliates thereof.  Therefore, from and after the date of execution and delivery of this Agreement, each Originator will take all reasonable steps including, without limitation, all steps that Buyer or any assignee of Buyer may from time to time reasonably request to maintain Buyer’s identity as a separate legal entity and to make it manifest to third parties that Buyer is an entity with assets and liabilities distinct from those of such Originator and any Affiliates thereof and not just a division of such Originator or any such Affiliate.  Without limiting the generality of the foregoing and in addition to the other covenants set forth herein, such Originator (i) will not hold itself out to third parties as liable for the debts of Buyer nor purport to own the Receivables, (ii) will take all other actions necessary on its part to ensure that Buyer is at all times in compliance with the covenants set forth in Section 7.10 of the Purchase Agreement and (iii) will cause all tax liabilities arising in connection with the transactions contemplated herein or otherwise to be allocated between such Originator and Buyer on an arm’s-length basis and in a manner consistent with the procedures set forth in U.S. Treasury Regulations §§1.1502-33(d) and 1.1552-1.

 

Section 5.12.           Collections .  Each Originator, individually or (in the case of Ferrellgas) as Servicer, will cause all Collections on the Receivables to be concentrated each Business Day into the Servicer’s Concentration Account; provided, however, that solely with respect to each account listed on Schedule C to the Purchase Agreement (as such Schedule C may be updated by the Servicer with a delivery of a revised Schedule C concurrent with the delivery of the Monthly Report pursuant to Article VIII of the Purchase Agreement provided that no account may be added to such Schedule C without the consent of Buyer and the Agents if, after giving effect to such account’s addition and any prior or concurrent account closures and deletions, the aggregate Collections flowing through all accounts listed on Schedule C could reasonably be expected to exceed 5% of total weekly Collections on a pro forma basis), so long as the daily balance therein does not exceed $2,500, each Originator, individually or (in the case of Ferrellgas) as Servicer, will concentrate the Collections therein into the Servicer’s Concentration Account not less than

 

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once per calendar week. Originator, individually or (in the case of Ferrellgas) as Servicer, will sweep all such Collections from the Servicer’s Concentration Account no less than daily into the Facility Account and, unless the Termination Date has occurred, immediately thereafter transferred to the applicable Originator’s Account.

 

Section 5.13.           Negative Covenants of Originators .  Until the date on which this Agreement terminates in accordance with its terms, and all Aggregate Unpaids have been paid in full, each Originator hereby covenants that:

 

(a)            Name Change, Offices and Records .  Such Originator will not change its name, identity or legal structure (within the meaning of Article 9 of any applicable enactment of the UCC) or relocate any office where Records are kept unless it shall have given Buyer (or its assigns) at least fifteen (15) days’ prior written notice thereof.  Furthermore, such Originator authorizes Buyer (or its assigns) to file all financing statements, instruments and other documents in connection with such change or relocation.

 

(b)            Change in Payment Instructions to Obligors .  Such Originator will not authorize any Obligor to make payment to any account other than a Lock-Box or Collection Account (each, as defined in the Purchase Agreement) which is swept into the Servicer’s Concentration Account in accordance with Section 5.12.

 

(c)            Modifications to Contracts and Credit and Collection Policy .  Such Originator will not make any change to its Credit and Collection Policy that could adversely affect the collectability of the Receivables originated by it or decrease the credit quality of any newly created Receivables originated by it.  Except, in the case of Ferrellgas, as otherwise permitted in its capacity as Servicer pursuant to Article VIII of the Purchase Agreement, no Originator will extend, amend or otherwise modify the terms of any Receivable originated by it or any Contract related thereto other than in accordance with its Credit and Collection Policy.

 

(d)            Sales, Adverse Claims .  Such Originator will not sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, or create or suffer to exist any Adverse Claim upon (including, without limitation, the filing of any financing statement) or with respect to, the Receivables originated by it, or the Servicer’s Concentration Account, or assign any right to receive income with respect thereto (other than, in each case, the creation of the interests therein in favor of Buyer provided for herein), and such Originator will defend the right, title and interest of Buyer in, to and under any of the foregoing property, against all claims of third parties claiming through or under such Originator.

 

(e)            Accounting for Purchase .  Such Originator will not, and will not permit any Affiliate to, account for or treat (whether in financial statements or otherwise) the transactions contemplated hereby in any manner other than the sale and contribution of the Receivables originated by it from such Originator to Buyer except to the extent that either such transaction is not recognized on account of consolidated financial reporting in accordance with generally accepted accounting principles.

 

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(f)             Change in Business .  Such Originator shall not engage in any material line of business substantially different from those lines of business carried on by such Originator and the Restricted Subsidiaries on the date of this Agreement.

 

(g)            Accounting Changes .  Such Originator shall not, and, in the case of Ferrellgas only, shall not suffer or permit any Restricted Subsidiary to, make any significant change in accounting treatment or reporting practices, except as required by GAAP, or change the fiscal year of such Originator or, in the case of Ferrellgas only, of any Restricted Subsidiary, except as required by the Code.

 

ARTICLE VI
ADMINISTRATION AND COLLECTION

 

Section 6.1.             Designation of Servicer .  The servicing, administration and collection of the Receivables shall be conducted by such Person (the “Servicer” ) so designated from time to time in accordance with this Section 6.1.  Ferrellgas, L.P. is hereby designated as, and hereby agrees to perform the duties and obligations of, the Servicer pursuant to the terms of this Agreement and the Purchase Agreement.  The Administrative Agent (as Buyer’s assignee) may at any time designate as Servicer any Person to succeed Ferrellgas, L.P. or any successor Servicer; provided, however, that unless a Termination Event has occurred, replacement of the Servicer shall not result in the occurrence of the Termination Date.

 

Section 6.2.             Duties of Servicer.

 

(a)            The Servicer shall take or cause to be taken all such actions as may be necessary or advisable to collect each Receivable from time to time, all in accordance with applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and Collection Policy applicable to such Receivable.

 

(b)            The Servicer shall administer the Collections in accordance with the procedures described in this Agreement and the Purchase Agreement.

 

(c)            Any payment by an Obligor in respect of any indebtedness owed by it to an Originator shall, except as otherwise specified by such Obligor or otherwise required by contract or law and unless otherwise instructed by the Administrative Agent, be applied as a Collection of any Receivable of such Obligor (starting with the oldest such Receivable) to the extent of any amounts then due and payable thereunder before being applied to any other receivable or other obligation of such Obligor.

 

Section 6.3.             Servicing Fee .  In consideration of Ferrellgas, L.P.’s agreement to act as Servicer hereunder and under the Purchase Agreement, the parties hereby agree that, so long as Ferrellgas, L.P. shall continue to perform as Servicer hereunder and under the Purchase Agreement, as compensation for its servicing activities, Ferrellgas, L.P. shall be entitled to a per annum fee (the “Servicing Fee” ), payable monthly in arrears on the 20th day of each month hereafter (or, if any such date is not a Business Day, on the next succeeding Business Day), determined between the Servicer and Buyer on an arms’-length basis (at any time while Ferrellgas, L.P. or one of its Affiliates is acting as Servicer).

 

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ARTICLE VII
TERMINATION EVENTS

 

Section 7.1.             Termination Events .  The occurrence of any one or more of the following events shall constitute a Termination Event:

 

(a)            Non-Payment .  An Originator fails to pay, within 5 days after the same becomes due, any interest, fee or any other amount payable under this Agreement or under any other Transaction Document; or

 

(b)            Representation or Warranty .  Any representation or warranty by an Originator made or deemed made in this Agreement, in any other Transaction Document, or which is contained in any certificate, document or financial or other statement by Originator or any Responsible Officer furnished at any time under this Agreement, or in or under any other Transaction Document, is incorrect in any material respect on or as of the date made or deemed made; or

 

(c)            Specific Defaults .  An Originator fails to perform or observe any term, covenant or agreement contained in any of Section 5.3(a), 5.12 or 5.13; or

 

(d)            Other Defaults .  An Originator fails to perform or observe any other term or covenant contained in this Agreement or any other Transaction Document, and such default shall continue unremedied for a period of 30 days after the earlier of (i) the date upon which a Responsible Officer knew or reasonably should have known of such failure or (ii) the date upon which written notice thereof is given to an Originator by Buyer or the Administrative Agent (as Buyer’s assignee); or

 

(e)            [Reserved];

 

(f)             Insolvency; Voluntary Proceedings .  The General Partner or an Originator (i) ceases or fails to be solvent, or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any, whether at stated maturity or otherwise; (ii) voluntarily ceases to conduct its business in the ordinary course; (iii) commences any Insolvency Proceeding with respect to itself; or (iv) takes any action to effectuate or authorize any of the foregoing; or

 

(g)            Involuntary Proceedings .  (i) Any involuntary Insolvency Proceeding is commenced or filed against the General Partner or an Originator, or any writ, judgment, warrant of attachment, execution or similar process, is issued or levied against a substantial part of any such Person’s properties, and any such proceeding or petition shall not be dismissed, or such writ, judgment, warrant of attachment, execution or similar process shall not be released, vacated or fully bonded within 60 days after commencement, filing or levy; (ii) the General Partner or an Originator admits the material allegations of a petition against it in any Insolvency Proceeding, or an order for relief (or similar order under non-U.S. law) is ordered in any Insolvency Proceeding; or (iii) the General Partner or an Originator acquiesces in the appointment of a receiver, trustee, custodian, conservator, liquidator, mortgagee in possession (or agent therefor), or other similar Person for itself or a substantial portion of its property or business; or

 

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(h)            ERISA .  (i) An ERISA Event occurs with respect to a Pension Plan which has resulted or could reasonably be expected to result in liability of an Originator or the General Partner under Title IV of ERISA to the Pension Plan or the PBGC in an aggregate amount in excess of $25,000,000; or (ii) the commencement or increase of contributions to, or the adoption of or the amendment of a Pension Plan by an Originator, the General Partner or any of their Affiliates which has resulted or could reasonably be expected to result in an increase in Unfunded Pension Liability among all Pension Plans in an aggregate amount in excess of $25,000,000; or

 

(i)             Monetary Judgments .  One or more judgments, orders, decrees or arbitration awards is entered against an Originator or the General Partner involving in the aggregate a liability (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage) as to any single or related series of transactions, incidents or conditions, of more than $25,000,000; or

 

(j)             Non-Monetary Judgments .  Any non-monetary judgment, order or decree is entered against an Originator or the General Partner which does or would reasonably be expected to have a Material Adverse Effect, and there shall be any period of 60 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

 

(k)            Adverse Change .  There occurs a Material Adverse Effect; or

 

(l)             Change of Control .  A Change of Control shall occur.

 

Section 7.2.             Remedies .  Upon the occurrence and during the continuation of a Termination Event, Buyer may take any of the following actions: (i) declare the Termination Date to have occurred, whereupon the Termination Date shall forthwith occur, without demand, protest or further notice of any kind, all of which are hereby expressly waived by the Originators; provided, however, that upon the occurrence of a Termination Event described in Section 7.1(f) or (g), or of an actual or deemed entry of an order for relief with respect to Originator under the Federal Bankruptcy Code, the Termination Date shall automatically occur, without demand, protest or any notice of any kind, all of which are hereby expressly waived by the Originators and (ii) to the fullest extent permitted by applicable law, declare that the Default Fee shall accrue with respect to any amounts then due and owing by either Originator to Buyer.  The aforementioned rights and remedies shall be without limitation and shall be in addition to all other rights and remedies of Buyer and its assigns otherwise available under any other provision of this Agreement, by operation of law, at equity or otherwise, all of which are hereby expressly preserved, including, without limitation, all rights and remedies provided under the UCC, all of which rights shall be cumulative.

 

ARTICLE VIII
INDEMNIFICATION

 

Section 8.1.             Indemnities by Originators .  Without limiting any other rights that Buyer may have hereunder or under applicable law, each of the Originators, jointly and severally, hereby agrees to indemnify (and pay upon demand to) Buyer and its assigns, officers, directors,

 

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agents and employees (each, an “Indemnified Party” ) from and against any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts payable, including reasonable attorneys’ fees (which attorneys may be employees of Buyer or any such assign) and disbursements (all of the foregoing being collectively referred to as “Indemnified Amounts” ) awarded against or incurred by any of them arising out of or as a result of this Agreement or the acquisition, either directly or indirectly, by Buyer of the Receivables , excluding, however :

 

(a)            Indemnified Amounts to the extent that a final judgment of a court of competent jurisdiction holds that such Indemnified Amounts resulted from gross negligence or willful misconduct on the part of the Indemnified Party seeking indemnification;

 

(b)            Indemnified Amounts to the extent the same includes losses in respect of Receivables that are uncollectible on account of the insolvency, bankruptcy or lack of creditworthiness of the related Obligor; or

 

(c)            taxes imposed by the jurisdiction in which such Indemnified Party’s principal executive office is located, on or measured by the overall net income of such Indemnified Party to the extent that the computation of such taxes is consistent with the characterization for income tax purposes of the acquisition by the Purchasers of Purchaser Interests under the Purchase Agreement as a loan or loans by the Purchasers to Buyer secured by, among other things, the Receivables;

 

provided, however, that nothing contained in this sentence shall limit the liability of the Originators or limit the recourse of Buyer to the Originators for amounts otherwise specifically provided to be paid by either Originator under the terms of this Agreement.  Without limiting the generality of the foregoing indemnification, the Originators, jointly and severally, shall indemnify Buyer for Indemnified Amounts (including, without limitation, losses in respect of uncollectible Receivables, regardless of whether reimbursement therefore would constitute recourse to the Originators) relating to or resulting from:

 

(i)             any representation or warranty made by an Originator (or any officers of such Originator) under or in connection with this Agreement, any other Transaction Document or any other information or report delivered by an Originator pursuant hereto or thereto that shall have been false or incorrect when made or deemed made;

 

(ii)            the failure by an Originator, to comply with any applicable law, rule or regulation with respect to any Receivable or Contract related thereto, or the nonconformity of any Receivable or Contract included therein with any such applicable law, rule or regulation or any failure of an Originator to keep or perform any of its obligations, express or implied, with respect to any Contract;

 

(iii)           any failure of an Originator to perform its duties, covenants or other obligations in accordance with the provisions of this Agreement or any other Transaction Document;

 

(iv)           any products liability, personal injury or damage suit or other similar claim arising out of or in connection with merchandise, insurance or services that are the subject of any Contract or any Receivable;

 

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(v)            any dispute, claim, offset or defense (other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Receivable (including, without limitation, a defense based on such Receivable or the related Contract not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms), or any other claim resulting from the sale of the merchandise or service related to such Receivable or the furnishing or failure to furnish such merchandise or services;

 

(vi)           the commingling of Collections allocable to the Receivables at any time with other funds;

 

(vii)          any investigation, litigation or proceeding related to or arising from this Agreement or any other Transaction Document, the transactions contemplated hereby, the use of the proceeds of any Purchase Price payment, the ownership of the Receivables and the associated Related Security, or any other investigation, litigation or proceeding relating to an Originator in which any Indemnified Party becomes involved as a result of any of the transactions contemplated hereby;

 

(viii)         any inability to litigate any claim against any Obligor in respect of any Receivable as a result of such Obligor being immune from civil and commercial law and suit on the grounds of sovereignty or otherwise from any legal action, suit or proceeding;

 

(ix)            any Termination Event described in Section 7.1(f) or (g);

 

(x)             any failure to vest and maintain vested in Buyer, or to transfer to Buyer, legal and equitable title to, and ownership of, the Receivables and the associated Related Security free and clear of any Adverse Claim;

 

(xi)            the failure to have filed, or any delay in filing, financing statements or other similar instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with respect to the Receivables, and the proceeds of any thereof, whether at the time of the Purchase or at any subsequent time;

 

(xii)           any action or omission by an Originator which reduces or impairs the rights of Buyer with respect to any Receivable or the value of any such Receivable; and

 

(xiii)          any attempt by any Person to void the Purchase hereunder under statutory provisions or common law or equitable action.

 

Section 8.2.             Other Costs and Expenses .  The Originators, jointly and severally, shall pay all reasonable costs and out-of-pocket expenses in connection with the preparation, execution and delivery of this Agreement.  The Originators, jointly and severally, shall pay to Buyer on demand any and all costs and expenses of Buyer, if any, including reasonable counsel fees and expenses in connection with the enforcement of this Agreement and the other documents delivered hereunder and in connection with any restructuring or workout of this Agreement or such documents, or the administration of this Agreement following a Termination Event.

 

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ARTICLE IX
MISCELLANEOUS

 

Section 9.1.             Waivers and Amendments .

 

(a)            No failure or delay on the part of Buyer (or its assigns) in exercising any power, right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other further exercise thereof or the exercise of any other power, right or remedy.  The rights and remedies herein provided shall be cumulative and nonexclusive of any rights or remedies provided by law.  Any waiver of this Agreement shall be effective only in the specific instance and for the specific purpose for which given.

 

(b)            No provision of this Agreement or any Subordinated Note may be amended, supplemented, modified or waived except in writing signed by the Originators party thereto and Buyer and, to the extent required under the Purchase Agreement, the Agents.

 

Section 9.2.             Notices .  All communications and notices provided for hereunder shall be in writing (including bank wire, telecopy, electronic mail, facsimile transmission or similar writing) and shall be given to the other parties hereto at their respective addresses or telecopy numbers set forth on the signature pages hereof or at such other address or telecopy number as such Person may hereafter specify for the purpose of notice to the other party hereto.  Each such notice or other communication shall be effective (a) if given by telecopy, upon the receipt thereof, (b) if given by mail, three (3) Business Days after the time such communication is deposited in the mail with first class postage prepaid or (c) if given by any other means, when received at the address specified in this Section 9.2.

 

Section 9.3.             Protection of Ownership Interest of Buyer.

 

(a)            Each Originator agrees that from time to time, at its expense, it will promptly execute and deliver all instruments and documents, and take all actions, that may be necessary or desirable, or that Buyer (or its assigns) may request, to perfect, protect or more fully evidence the ownership interest of Buyer hereunder and ownership of the Receivables and the associated Related Security, or to enable Buyer (or its assigns) to exercise and enforce their rights and remedies hereunder.  At any time, Buyer (or its assigns) may, at such Originator’s sole cost and expense, direct each Originator to notify the Obligors of the Receivables originated by it of the ownership interests of Buyer under this Agreement and may also, at any time after the occurrence and continuation of a Termination Event, direct that payments of all amounts due or that become due under any or all Receivables be made directly to Buyer or its designee.

 

(b)            If any Originator fails to perform any of its obligations hereunder, Buyer (or its assigns) may (but shall not be required to) perform, or cause performance of, such obligations, and Buyer’s (or such assigns’) costs and expenses incurred in connection therewith shall be payable by the Originators as provided in Section 8.2.  Each Originator irrevocably authorizes Buyer (and its assigns) at any time and from time to time in the sole discretion of Buyer (or its assigns), and appoints Buyer (and its assigns) as its attorney(ies)-in-fact, to act on behalf of such Originator (i) to, after the occurrence and continuance of a Termination Event execute on behalf

 

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of such Originator as debtor and to file financing statements necessary or desirable in Buyer’s (or its assigns’) sole discretion to perfect and to maintain the perfection and priority of the interest of Buyer in the Receivables and (ii) after the occurrence and continuance of a Termination Event, to file a carbon, photographic or other reproduction of this Agreement or any financing statement with respect to the Receivables as a financing statement in such offices as Buyer (or its assigns) in their sole discretion deem necessary or desirable to perfect and to maintain the perfection and priority of Buyer’s interest in the Receivables.  This appointment is coupled with an interest and is irrevocable.

 

Section 9.4.             Confidentiality .

 

(a)            Each Originator shall maintain and shall cause each of its employees and officers to maintain the confidentiality of the Fee Letter and the other confidential or proprietary information with respect to the Agents and the Purchasers and their respective businesses obtained by it or them in connection with the structuring, negotiating and execution of the transactions contemplated herein, except that each Originator and its officers and employees may disclose such information to an Originator’s external accountants and attorneys and as required by any applicable law or order of any judicial or administrative proceeding.

 

(b)            Each Originator hereby consents to the disclosure of any nonpublic information with respect to it (i) to Buyer, the Agents or the Purchasers, (ii) to any prospective or actual assignee or participant of any of the Persons described in clause (i), (iii) to any rating agency that rates its deposits or securities, and (iv) to any officers, directors, employees, outside accountants and attorneys of any of the foregoing, provided each such Person is informed of the confidential nature of such information and, in the case of a Person described in clause (ii), agrees in writing to keep such information confidential.  In addition, the Purchasers and the Agents may disclose any such nonpublic information pursuant to any law, rule, regulation, direction, request or order of any judicial, administrative or regulatory authority or proceedings (whether or not having the force or effect of law).

 

(c)            Buyer shall maintain and shall cause each of its employees and officers to maintain the confidentiality of the confidential or proprietary information with respect to each Originator, the Obligors and their respective businesses obtained by it in connection with the due diligence evaluations, structuring, negotiating and execution of the Transaction Documents, and the consummation of the transactions contemplated herein and any other activities of Buyer arising from or related to the transactions contemplated herein provided, however, that each of Buyer and its employees and officers shall be permitted to disclose such confidential or proprietary information: (i) to the Persons described in clause (b) above, and (ii) to the extent required pursuant to any applicable law, rule, regulation, direction, request or order of any judicial, administrative or regulatory authority or proceedings with competent jurisdiction (whether or not having the force or effect of law) so long as such required disclosure is made under seal to the extent permitted by applicable law or by rule of court or other applicable body.

 

Section 9.5.             Bankruptcy Petition .  Each of the Originators covenants and agrees that, prior to the date that is one year and one day after the payment in full of all outstanding obligations of Buyer under the Purchase Agreement, it will not institute against, or join any other Person in instituting against, Buyer any bankruptcy, reorganization, arrangement, insolvency or

 

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liquidation proceedings or other similar proceeding under the laws of the United States or any state of the United States.

 

Section 9.6.             Limitation of Liability .  Except with respect to any claim arising out of the willful misconduct or gross negligence of any of the Purchasers or Agents, no claim may be made by an Originator or any other Person against any of the Purchasers or Agents or their respective Affiliates, directors, officers, employees, attorneys or agents for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith; and each Originator hereby waives, releases, and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

 

Section 9.7.             CHOICE OF LAW .  THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF (EXCEPT IN THE CASE OF THE OTHER TRANSACTION DOCUMENTS, TO THE EXTENT OTHERWISE EXPRESSLY STATED THEREIN) AND EXCEPT TO THE EXTENT THAT THE PERFECTION OF THE OWNERSHIP INTERESTS OR SECURITY INTERESTS OF BUYER OR THE ADMINISTRATIVE AGENT IN THE RECEIVABLES AND THE ASSOCIATED RELATED SECURITY IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF TEXAS.

 

Section 9.8.             CONSENT TO JURISDICTION .  NOTWITHSTANDING THE CHOICE OF TEXAS LAW PURSUANT TO SECTION 9.7, EACH ORIGINATOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK COUNTY, NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH ORIGINATOR PURSUANT TO THIS AGREEMENT AND EACH ORIGINATOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF BUYER (OR ITS ASSIGNS) TO BRING PROCEEDINGS AGAINST AN ORIGINATOR IN THE COURTS OF ANY OTHER JURISDICTION.

 

Section 9.9.             WAIVER OF JURY TRIAL .  EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, ANY DOCUMENT EXECUTED BY AN ORIGINATOR PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

 

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Section 9.10.           Integration; Binding Effect; Survival of Terms.

 

(a)            This Agreement and each other Transaction Document contain the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof superseding all prior oral or written understandings.

 

(b)            This Agreement shall be binding upon and inure to the benefit of each Originator, Buyer and their respective successors and permitted assigns (including any trustee in bankruptcy).  No Originator may assign any of its rights and obligations hereunder or any interest herein without the prior written consent of Buyer.  Buyer may assign at any time its rights and obligations hereunder and interests herein to any other Person without the consent of the Originators.  Without limiting the foregoing, each Originator acknowledges that Buyer, pursuant to the Purchase Agreement, may assign to the Administrative Agent, for the benefit of the Purchasers, its rights, remedies, powers and privileges hereunder and that the Administrative Agent may further assign such rights, remedies, powers and privileges to the extent permitted in the Purchase Agreement.  Each Originator agrees that the Administrative Agent, as the assignee of Buyer, shall, subject to the terms of the Purchase Agreement, have the right to enforce this Agreement and to exercise directly all of Buyer’s rights and remedies under this Agreement (including, without limitation, the right to give or withhold any consents or approvals of Buyer to be given or withheld hereunder) and each Originator agrees to cooperate fully with the Administrative Agent in the exercise of such rights and remedies.  This Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms and shall remain in full force and effect until terminated in accordance with its terms; provided, however, that the rights and remedies with respect to (i) any breach of any representation and warranty made by an Originator pursuant to Article III; (ii) the indemnification and payment provisions of Article VIII; and (iii) Section 9.5 shall be continuing and shall survive any termination of this Agreement.

 

Section 9.11.           Counterparts; Severability; Section References .  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same Agreement.  Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Unless otherwise expressly indicated, all references herein to “ Article, ” “ Section, ” “ Schedule ” or “ Exhibit ” shall mean articles and sections of, and schedules and exhibits to, this Agreement.

 

Section 9.12.           No Novation as to Ferrellgas .  Insofar as Ferrellgas is concerned, this Agreement shall not constitute a novation or a satisfaction and accord of the Existing Sale Agreement and/or other Transaction Documents, but shall constitute an amendment and restatement thereof from and after the effective date hereof.

 

[ Remainder of page intentionally left blank ]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their duly authorized officers as of the date hereof.

 

FERRELLGAS, L.P.
BY:	FERRELLGAS, INC., its General Partner
By:	/s/ J. Ryan VanWinkle
	Name:	J. Ryan VanWinkle
	Title:	Senior Vice President and Chief
		Financial Officer
Address:
Ferrellgas, L.P.
7500 College Blvd., Suite 1000
Overland Park, Kansas 66210
Attention: Chief Financial Officer
Telephone: (913) 661-1500
Facsimile: (913) 661-1537
BLUE RHINO GLOBAL SOURCING, INC.
By:	/s/ J. Ryan VanWinkle
	Name:	J. Ryan VanWinkle
	Title:	Chief Financial Officer and Vice
		President of Corporate Development
Address:
Blue Rhino Global Sourcing, Inc.
470 West Hanes Mill Road Ste 200
Winston-Salem, NC 27105
Attention:  Tod Brown
Telephone: (336) 659-6740
Facsimile: (336) 331-6740

 

Amended and Restated Receivable Sale Agreement

 

 

FERRELLGAS RECEIVABLES, LLC
By:	/s/ J. Ryan VanWinkle
	Name:		J. Ryan VanWinkle
	Title:		Senior Vice President and Chief
			Financial Officer
Address:
One Liberty Plaza
Liberty, MO 64068
Attention: Cathy Brown
Phone:		(816 ) 407-2403
|Fax:		(816) 792-6887

 

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EXHIBIT I

 

DEFINITIONS

 

This is Exhibit I to the Agreement (as hereinafter defined).   As used in the Agreement and the Exhibits, Schedules and Annexes thereto, capitalized terms have the meanings set forth in this Exhibit I (such meanings to be equally applicable to the singular and plural forms thereof).  If a capitalized term is used in the Agreement, or any Exhibit, Schedule or Annex thereto, and not otherwise defined therein or in this Exhibit I, such term shall have the meaning assigned thereto in Exhibit I to the Purchase Agreement.

 

“Administrative Agent” has the meaning set forth in the Preliminary Statements to the Agreement.

 

“Adverse Claim” means any security interest, mortgage, deed of trust, pledge, hypothecation, assignment, charge or deposit arrangement, encumbrance, lien (statutory or other) or preferential arrangement of any kind or nature whatsoever in respect of any property (including those created by, arising under or evidenced by any conditional sale or other title retention agreement, the interest of a lessor under a capital lease, any financing lease having substantially the same economic effect as any of the foregoing, or the filing of any financing statement naming the owner of the asset to which such lien relates as debtor, under the UCC or any comparable law) and any contingent or other agreement to provide any of the foregoing, but not including the interest of a lessor under an operating lease.

 

“Affiliate” means, as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person.  A Person shall be deemed to control another Person if the controlling Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of the other Person, whether through the ownership of voting securities, by contract, or otherwise.

 

“Aggregate Unpaids” has the meaning set forth in the Purchase Agreement.

 

“Agreement” means this Amended and Restated Receivable Sale Agreement, dated as of January 19, 2012, among the Originators and Buyer, as the same may be amended, restated or otherwise modified.

 

“ Alternate Base Rate ” has the meaning set forth and shall be computed as specified in the Purchase Agreement.

 

“Applicable Closing Date” means (a) as to Ferrellgas, April 6, 2010, and (b) as to Blue Rhino, January 19, 2012.

 

“Business Day” means any day on which banks are not authorized or required to close in Charlotte, North Carolina, Cincinnati, Ohio or Atlanta, Georgia.

 

“Buyer” has the meaning set forth in the preamble to the Agreement.

 

Exhibit I-1

 

“Calculation Period” means each period beginning on a Monthly Payment Date and ending on the day preceding the next succeeding Monthly Payment Date.

 

“Capital Interests” means (a) with respect to any corporation, any and all shares, participations, rights or other equivalent interests in the capital of the corporation, (b) with respect to any partnership or limited liability company, any and all partnership interests (whether general or limited) or limited liability company interests, respectively, and other interests or participations that confer on a Person the right to receive a share of the profits and losses of, or distributions of assets of, such partnership or limited liability company, and (c) with respect to any other Person, ownership interests of any type in such Person.

 

“ Change of Control ” means (a) the sale, lease, conveyance or other disposition of all or substantially all  assets of Ferrellgas to any Person or group (as such term is used in Section 13(d)(3) of the Exchange Act) other than James E. Ferrell, the Related Parties and any Person of which James E. Ferrell and the Related Parties beneficially own in the aggregate 51% or more of the voting Equity Interests (or if such Person is a partnership, 51% or more of the general partner interests), (b) the liquidation or dissolution of an Originator or the General Partner, (c) the occurrence of any transaction, the result of which is that James E. Ferrell and the Related Parties beneficially own in the aggregate, directly or indirectly, less than 51% of the total voting power entitled to vote for the election of directors of the General Partner, or (d) the occurrence of any transaction, the result of which is that (i) the General Partner is no longer the sole general partner of Ferrellgas, or (ii) Ferrellgas is no longer the owner, directly or indirectly, beneficially and of record, of 100% of the outstanding shares of voting stock of Blue Rhino.

 

“Code” means the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder.

 

“Collections” means, with respect to any Receivable, all cash collections and other cash proceeds in respect of such Receivable, including, without limitation, all cash proceeds of Related Security with respect to such Receivable and all Deemed Collections (if any) with respect to such Receivable.

 

“Compliance Certificate” means a certificate in the form of Exhibit III hereto duly executed by a Responsible Officer of Ferrellgas.

 

“Contract” means, with respect to any Receivable, any and all instruments, agreements, invoices or other writings pursuant to which such Receivable arises or which evidences such Receivable.

 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of trust or other instrument, document or agreement to which such Person is a party or by which it or any of its property is bound.

 

“Credit Agreement” means that certain Fifth Amended and Restated Credit Agreement dated as of November 2, 2009, among Ferrellgas, as borrower, the General Partner, the lenders from time to time party thereto, and Bank of America, N.A., as administrative agent and swing line lender, Société Générale and BNP Paribas, as documentation agents and Wells

 

Exhibit I-2

 

Fargo Bank, National Association and JPMorgan Chase Bank, N.A., as syndication agents, as amended by Amendment No. 1 to Credit Agreement dated as of September 23, 2011 and as further amended from time to time in accordance with the terms thereof.

 

“Credit and Collection Policy” means, as to an Originator, such Originator’s credit and collection policies and practices relating to Contracts and Receivables originated by it existing on the date hereof and summarized in Exhibit IV , as modified from time to time in accordance with the Agreement.

 

“Deemed Collections” means Collections deemed to be received by an Originator in accordance with Section 1.3 of the Agreement.

 

“Default Fee” means a per annum rate of interest equal to the sum of (i) the Alternate Base Rate, plus (ii) 2.00%.

 

“Discount Factor” means a percentage calculated to provide Buyer with a reasonable return on its investment in the Receivables purchased hereunder after taking account of (i) the time value of money based upon the anticipated dates of collection of the Receivables and the cost to Buyer of financing its investment in the Purchased Receivable during such period and (ii) the risk of nonpayment by the Obligors.  Each Originator and Buyer may agree from time to time to change the Discount Factor based on changes in one or more of the items affecting the calculation thereof, provided that any change to the Discount Factor shall take effect as of the commencement of a Calculation Period, shall apply only prospectively and shall not affect the Purchase Price payment made prior to the Calculation Period during which such Originator and Buyer agree to make such change.

 

“Dollars,” “dollars” and “$” each mean lawful money of the United States.

 

“Environmental Laws” means all federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authorities, in each case relating to environmental, health, safety and land use matters.

 

“Equity Interests” means Capital Interests and all warrants, options or other rights to acquire Capital Interests (but excluding any debt security that is convertible into, or exchangeable for, Capital Interests).

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and regulations promulgated thereunder.

 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by an Originator or the General Partner from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations which is treated as such a withdrawal under Section 4062(e) of ERISA; (c) the filing of a notice of intent to terminate, the treatment of a plan amendment as a termination under Section 4041 or 4041A of ERISA or the commencement of proceedings by the PBGC to terminate a Pension Plan subject to Title IV of

 

Exhibit I-3

 

ERISA; (d) a failure by an Originator or the General Partner to make required contributions to a Pension Plan or other Plan subject to Section 412 of the Code; (e) an event or condition which might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (f) the imposition of any liability under Title IV of ERISA, other than PBGC premiums due but not delinquent under Section 4007 of ERISA, upon an Originator or the General Partner; or (g) an application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code with respect to any Pension Plan.

 

“Exchange Act” means the Securities Exchange Act of 1934, and regulations promulgated thereunder.

 

“Facility Account” means the account in the name of the Buyer at Wells Fargo Bank in Dallas, Texas designated on Schedule C to the Purchase Agreement as the “Facility Account” or such other account designated in writing from time to time by the Buyer or the Servicer to the Administrative Agent as being the “Facility Account”.

 

“FCI ESOT” means the employee stock ownership trust of Ferrell Companies, Inc. organized under Section 4975(e)(7) of the Code.

 

“Finance Charges” means, with respect to a Contract, any finance, interest, late payment charges or similar charges owing by an Obligor pursuant to such Contract.

 

“GAAP” means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination.

 

“General Partner” means Ferrellgas, Inc., a Delaware corporation and the sole general partner of Ferrellgas.

 

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

 

“Indemnified Amounts” has the meaning specified in Section 8.1 .

 

“Indemnified Party” has the meaning specified in Section 8.1 .

 

“Independent Auditor” has the meaning specified in Section 5.1(a) .

 

“Insolvency Proceeding” means (a) any case, action or proceeding before any court or other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general

 

Exhibit I-4

 

assignment for the benefit of creditors, composition, marshalling of assets for creditors, or other similar arrangement in respect of a Person’s creditors generally or any substantial portion of a Person’s creditors; undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code.

 

“Material Adverse Effect” means (i) a material adverse change in, or a material adverse effect upon, the operations, business, properties, condition (financial or otherwise) or prospects of the Originators; (ii) a material impairment of the ability of an Originator or any Subsidiary to perform under any Transaction Document to which it is a party; (iii) a material adverse effect upon the legality, validity, binding effect or enforceability against an Originator or any Subsidiary of any Transaction Document to which it is a party; (iv) a material adverse effect upon an Originator’s, Buyer’s, the Administrative Agent’s or any Purchaser’s interest in the Receivables generally or in any significant portion of the Receivables, or (v) a material adverse effect upon the collectability of the Receivables generally or of any material portion of the Receivables.

 

“MLP” means Ferrellgas Partners, L.P., a Delaware limited partnership and the sole limited partner of Ferrellgas.

 

“Monthly Payment Date” has the meaning set forth in the Purchase Agreement.

 

“Net Worth” means as of the last Business Day of each Calculation Period preceding any date of determination, the excess, if any, of (a) the aggregate Outstanding Balance of the Receivables at such time, over (b) the sum of (i) the Aggregate Capital outstanding at such time, plus (ii) the aggregate outstanding principal balance of the Subordinated Loans (including any Subordinated Loan proposed to be made on the date of determination).

 

“Non-Recourse Subsidiary” has the meaning specified in the Credit Agreement.

 

“Obligor” means a Person obligated to make payments pursuant to a Contract.

 

“Organization Documents” means, (a) for any corporation, the certificate or articles of incorporation, the bylaws, any certificate of determination or instrument relating to the rights of preferred shareholders of such corporation, any shareholder rights agreement, and all applicable resolutions of the board of directors (or any committee thereof) of such corporation, (b) for any general or limited partnership, the partnership agreement of such partnership and all amendments thereto and any agreements otherwise relating to the rights of the partners thereof, and (c) for any limited liability company, the limited liability, operating or similar agreement and all amendments thereto and any agreements otherwise relating to the rights of the members thereof.

 

“Originator” has the meanings set forth in the preamble to the Agreement.

 

“Originator’s Account” means (a) with respect to Ferrellgas, Ferrellgas’ account no. 4518054085 at Wells Fargo Bank, N.A., in San Francisco, California, ABA No. 121000248, and (b) with respect to Blue Rhino, Blue Rhino’s account no. 8188093079 at Bank of America, in San Francisco, California, ABA No. 121000358.

 

Exhibit I-5

 

“Outstanding Balance” of any Receivable at any time means the then outstanding principal balance thereof.

 

“PBGC” means the Pension Benefit Guaranty Corporation, or any Governmental Authority succeeding to any of its principal functions under ERISA.

 

“Pension Plan” means a pension plan (as defined in Section 3(2) of ERISA) subject to Title IV of ERISA which an Originator or the General Partner sponsors, maintains, or to which it makes, is making, or is obligated to make contributions, or in the case of a multiple employer plan (as described in Section 4064(a) of ERISA) has made contributions at any time during the immediately preceding five (5) plan years.

 

“Person” means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture or Governmental Authority.

 

“Plan” means an employee benefit plan (as defined in Section 3(3) of ERISA) which an Originator sponsors or maintains or to which an Originator or the General Partner makes, is making, or is obligated to make contributions and includes any Pension Plan.

 

“Potential Termination Event” means an event which, with the passage of time or the giving of notice, or both, would constitute a Termination Event.

 

“Purchase” means the purchase by Buyer from an Originator, or contribution by Ferrellgas to Buyer, of Receivables originated by such Originator pursuant to Section 1.2(a)  of the Agreement, together with all related rights in connection therewith.

 

“Purchase Agreement” has the meaning set forth in the Preliminary Statements to the Agreement.

 

“Purchase Price” means, on any date of determination, the aggregate price to be paid by Buyer to an Originator for Receivables originated by such Originator, which price shall equal (i)   the Outstanding Balance of such Receivables as of the close of business on the Business Day preceding the date of determination, multiplied by (ii) one minus the Discount Factor in effect on such date.

 

“Purchaser” has the meaning set forth in the Purchase Agreement.

 

“Receivable” means each account receivable owed to an Originator (at the time it arises, and before giving effect to any transfer or conveyance under the Agreement), arising in connection with the sale of propane or propane appliances or the provision of related services by such Originator, including, without limitation, the obligation to pay any Finance Charges with respect thereto.  Accounts receivable arising from any one transaction, including, without limitation, accounts receivable represented by a single invoice, shall constitute a Receivable separate from a Receivable consisting of the accounts arising from any other transaction; provided , further , that any account receivable referred to in the immediately preceding sentence shall be a Receivable regardless of whether the account debtor or the applicable Originator treats such obligation as a separate payment obligation.

 

Exhibit I-6

 

“Records” means, with respect to any Receivable, (i) any and all customer information regarding payment history of the applicable Obligor, propane gallons or propane appliances delivered to the applicable Obligor, timing of propane gallons or propane appliances delivered to the applicable Obligor, payment terms and prices charged to the applicable Obligor, and (ii) any and all invoices evidencing all or any portion of the amount owing under such Receivable, whether each of the foregoing is in paper or electronic form.

 

“Related Party” means (a) the spouse or any lineal descendant of James E. Ferrell, (b) any trust for his benefit or for the benefit of his spouse or any such lineal descendants, (c) any corporation, partnership or other entity in which James E. Ferrell and/or such other Persons referred to in the foregoing clauses (a) and (b) are the direct record and beneficial owners of all of the voting and nonvoting Equity Interests, (d) the FCI ESOT or (e) any participant in the FCI ESOT whose ESOT account has been allocated shares of Ferrell Companies, Inc.

 

“Related Security” means, with respect to any Receivable:

 

(i)            all Records related to such Receivable, and

 

(ii)           all proceeds of such Receivable or Records.

 

“Reportable Event” means any of the events set forth in Section 4043(b) of ERISA or the regulations thereunder, other than any such event for which the 30-day notice requirement under ERISA has been waived in regulations issued by the PBGC.

 

“Required Capital Amount” means, as of any date of determination, an amount equal to the greater of (i) 3% of the aggregate Outstanding Balance of the Receivables as of such date and (ii) $3,000,000.

 

“Requirement of Law” means, as to any Person, any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or of a Governmental Authority, in each case applicable to or binding upon the Person or any of its property or to which the Person or any of its property is subject.

 

“Responsible Officer” means (a) with respect to Ferrellgas, the chief executive officer, the president, the chief financial officer, vice president of finance, manager of finance, the treasurer or assistant treasurer of the General Partner or any other officer having substantially the same authority and responsibility to act for the General Partner on behalf of Ferrellgas, and (b) with respect to Blue Rhino, the chief executive officer, the president, the chief financial officer, vice president of finance, manager of finance, the treasurer or assistant treasurer of Blue Rhino or any other officer having substantially the same authority and responsibility to act on behalf of Blue Rhino.

 

“Restricted Subsidiary” has the meaning provided in the Credit Agreement.

 

“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

Exhibit I-7

 

“Servicer” has the meaning specified in Section 6.1 .

 

“Servicer’s Concentration Account” means the account in the name of the Buyer at Wells Fargo Bank in Dallas, Texas and designated on Schedule C to the Purchase Agreement as the “Servicer Concentration Account” or otherwise designated in writing from time to time by the Servicer or Buyer to the Administrative Agent as being the “Servicer’s Concentration Account”.

 

“Servicing Fee” has the meaning set forth in Section 6.3 .

 

“Subordinated Loan” means a loan from an Originator to Buyer of a portion of the Purchase Price that is evidenced by and payable as provided in its Subordinated Note.

 

“Subordinated Note” means, with respect to an Originator, a subordinated promissory note of Buyer payable to the order of such Originator in substantially the form of Exhibit V hereto, which promissory note shall evidence a portion of the Purchase Price owing by Buyer to such Originator at any time in respect of the Receivables originated by such Originator.

 

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which more than 50% of the total voting power of shares of Capital Interests entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof (or, in the case of a limited partnership, more than 50% of either the general partners’ Capital Interests or the limited partners’ Capital Interests) is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof.  Unless otherwise indicated in this Agreement, “Subsidiary” shall mean a Subsidiary of an Originator.  Notwithstanding the foregoing, any Subsidiary of Ferrellgas that is designated a “Non-Recourse Subsidiary” pursuant to the definition thereof in this Agreement shall, for so long as all of the statements in the definition thereof remain true, not be deemed a Subsidiary of Ferrellgas.

 

“Termination Date” means the earliest to occur of (i) the Facility Termination Date under and as defined in the Purchase Agreement, (ii) the Business Day immediately prior to the occurrence of a Termination Event set forth in Section 7.1(f) or (g)  with respect to either Originator, (iii) the Business Day specified in a written notice from Buyer (or the Administrative Agent, as Buyer’s assignee) to the Originators following the occurrence of any other Termination Event, and (iv) the date which is 30 Business Days after receipt by the Administrative Agent (as Buyer’s assignee) of written notice from either Originator that it wishes to terminate the facility evidenced by this Agreement.

 

“Termination Event” has the meaning set forth in Section 7.1 of the Agreement.

 

“Transaction Documents” means, collectively, this Agreement, the Purchase Agreement, the Subordinated Notes and all other instruments, documents and agreements executed and delivered by an Originator in connection herewith or therewith.

 

“UCC” means the Uniform Commercial Code as from time to time in effect in the specified jurisdiction.

 

Exhibit I-8

 

“Unfunded Pension Liability” means the excess of a Plan’s benefit liabilities under Section 4001(a)(16) of ERISA, over the current value of that Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

 

All accounting terms not specifically defined herein shall be construed in accordance with GAAP.  All terms used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article 9.

 

Exhibit I-9

 

Exhibit II

 

Principal Place of Business and Chief Executive Office; Locations of Records; Federal Employer Identification Number; Other Names

 

Chief Executive Office and Principal Place of Business:

 

Ferrellgas:

 

7500 College Blvd., Suite 1000
Overland Park, Kansas 66210

 

Blue Rhino:

 

Blue Rhino Global Sourcing, Inc.

470 West Hanes Mill Road Ste 200

Winston-Salem, NC  27105

 

Location of Records:

 

Ferrellgas:

 

Same as above and One Liberty Plaza, Liberty, Missouri 64068

 

Blue Rhino:

 

Blue Rhino Global Sourcing, Inc.

470 West Hanes Mill Road Ste 200

Winston-Salem, NC  27105

 

Federal Employer Identification Number:

 

Ferrellgas: 43-1698481

 

Blue Rhino: 48-1022301

 

Partnership, Trade and Assumed Names:

 

Ferrellgas:

 

Ferrellgas
Ferrell North America
American Energy
NRG
Econogas
Blue Rhino
Ferrell Transport

 

Crow’s LP Gas
Elk Grove Gas & Oil

Lorensen Propane

Town & Country Propane

Best Propane

Vanson LLC

Go-Gas Propane

Illinois Propane

Champion

MPC Energy

Nu-Gas

Van Andel Propane

Jebb’s Propane

Lafayette Bottled Gas

Nu-Gas

Skelgas

Beatty Gas

Kings River Propane

Bennett Gas

Ram Propane

Everready Gas

Williams Panhandle Propane

Economy Propane

Federal Petroleum Co

Polar Gas Company

Welch Propane

Rio Grande Valley Gas

 

Blue Rhino:

 

Uniflame

Qwik Ship

Global Sourcing

Blue Rhino

 

 

Exhibit III

 

Form of Compliance Certificate

 

This Compliance Certificate is furnished pursuant to that certain Amended and Restated Receivable Sale Agreement, dated as of January 19, 2012, among Ferrellgas, L.P. ( “Ferrellgas” ), Blue Rhino Global Sourcing, Inc. ( “Blue Rhino” and, together with Ferrellgas, the “Originators” ) and Ferrellgas Receivables, LLC (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement” ).  Capitalized terms used and not otherwise defined herein are used with the meanings attributed thereto in the Agreement.

 

THE UNDERSIGNED HEREBY CERTIFIES THAT:

 

1.             I am the duly elected                              of Ferrellgas.

 

2.             I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of Ferrellgas and its Subsidiaries during the accounting period covered by the attached financial statements.

 

3.             The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes a Termination Event or a Potential Termination Event, as each such term is defined under the Agreement, during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate[, except as set forth below].

 

4.             Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Originators have taken, are taking, or propose to take with respect to each such condition or event:

 

The foregoing certifications, together with the computations set forth in Schedule I hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this          day of                     , 20    .

 

	[ Name ]

 

 

Exhibit IV

 

Credit and Collection Policy

 

 

[To be attached]

 

 

Exhibit V

 

Form of Subordinated Note

 

[ AMENDED AND RESTATED] SUBORDINATED NOTE

 

[DATE]

 

1.             Note .  FOR VALUE RECEIVED, the undersigned, Ferrellgas Receivables, LLC, a Delaware limited liability company ( “Buyer” ), hereby unconditionally promises to pay to the order of [Ferrellgas, L.P., a Delaware limited partnership/Blue Rhino Global Sourcing, Inc., a Delaware corporation] ( “Seller” ), in lawful money of the United States of America and in immediately available funds, on or before the date following the Termination Date which is one year and one day after the date on which all indemnities, adjustments and other amounts which may be owed under the Receivable Sale Agreement hereinafter described in connection with the Receivables (as defined in the Receivable Sale Agreement hereinafter described) have been paid (the “Collection Date” ), the aggregate unpaid principal sum outstanding of all Subordinated Loans (as defined in the Receivable Sale Agreement hereinafter described) made from time to time by Seller to Buyer pursuant to and in accordance with the terms of that certain Amended and Restated Receivable Sale Agreement, dated as of January 19, 2012, among Ferrellgas, L.P., Blue Rhino Global Sourcing, Inc. and Buyer (as amended, restated, supplemented or otherwise modified from time to time, the “Receivable Sale Agreement” ).  Reference to Section 1.2 of the Receivable Sale Agreement is hereby made for a statement of the terms and conditions under which the loans evidenced hereby have been and will be made.  [This Amended and Restated Subordinated Note amends and restates in its entirety that certain Subordinated Note dated April 6, 2010 made by Buyer in favor of Ferrellgas, L.P.]  Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Receivable Sale Agreement.

 

2.             Interest .  Buyer further promises to pay interest on the outstanding unpaid principal amount hereof from the date on which each advance hereunder is made until payment in full hereof at a rate equal to LMIR (as defined in the Receivables Purchase Agreement hereinafter described), changing on the first business day of each month; provided, however, that if Buyer shall default in the payment of any principal hereof, Buyer promises to pay, on demand, interest at a rate per annum equal to the sum of LMIR plus 2.00% per annum on any such unpaid amounts, from the date such payment is due to the date of actual payment.  Interest shall be payable on the first Business Day of each month in arrears; provided, however, that Buyer may elect on the date any interest payment is due hereunder to defer such payment and upon such election the amount of interest due but unpaid on such date shall constitute principal under this Subordinated Note.  The outstanding principal of any loan made under this Subordinated Note shall be due and payable on the Collection Date and may be repaid or prepaid at any time without premium or penalty.

 

3.             Principal Payments .  Seller is authorized and directed by Buyer to enter in its books and records, the date and amount of each loan made by it which is evidenced by this Subordinated Note and the amount of each payment of principal made by Buyer, and absent manifest error, such entries shall constitute prima facie evidence of the accuracy of the

 

Exhibit V-1

 

information so entered; provided that neither the failure of Seller to make any such entry or any error therein shall expand, limit or affect the obligations of Buyer hereunder.

 

4.             Subordination .  Seller shall have the right to receive, and Buyer shall have the right to make, any and all payments and prepayments relating to the loans made under this Subordinated Note.  Seller hereby agrees that at any time, Seller shall be subordinate in right of payment to the prior payment of any indebtedness or obligation of Buyer owing to any Agent or Purchaser (each, as defined below) under that certain Receivables Purchase Agreement, dated as of January 19, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Receivables Purchase Agreement” ), by and among Buyer, Ferrellgas, L.P., as Servicer, various “Purchasers” and “Co-Agents” from time to time party thereto, and Wells Fargo Bank, N.A., as the “Administrative Agent” (together with the Co-Agents, the “Agents” ).  The subordination provisions contained herein are for the direct benefit of, and may be enforced by, the Agents and the Purchasers and/or any of their respective assignees (collectively, the “Senior Claimants” ) under the Receivables Purchase Agreement.  Until the date on which the “Aggregate Capital” outstanding under the Receivables Purchase Agreement has been repaid in full and all obligations of Buyer and/or the Servicer thereunder and under the “Fee Letters” referenced therein (all such obligations, collectively, the “Senior Claim” ) have been indefeasibly paid and satisfied in full, Seller shall not institute against Buyer any proceeding of the type described in Section 7.1(f)  or (g)  of the Receivable Sale Agreement unless and until the Collection Date has occurred.  Should any payment, distribution or security or proceeds thereof be received by Seller in violation of this Section 4 , Seller agrees that such payment shall be segregated, received and held in trust for the benefit of, and deemed to be the property of, and shall be immediately paid over and delivered to the Administrative Agent for the benefit of the Senior Claimants.

 

5.             Bankruptcy; Insolvency .  Upon the occurrence of any proceeding of the type described in Section 7.1(f)  or (g)  of the Receivable Sale Agreement involving Buyer as debtor, then and in any such event the Senior Claimants shall receive payment in full of all amounts due or to become due on or in respect of the Aggregate Capital and the Senior Claim (including “Yield” as defined and as accruing under the Receivables Purchase Agreement after the commencement of any such proceeding, whether or not any or all of such Yield is an allowable claim in any such proceeding) before Seller is entitled to receive payment on account of this Subordinated Note, and to that end, any payment or distribution of assets of Buyer of any kind or character, whether in cash, securities or other property, in any applicable insolvency proceeding, which would otherwise be payable to or deliverable upon or with respect to any or all indebtedness under this Subordinated Note, is hereby assigned to and shall be paid or delivered by the Person making such payment or delivery (whether a trustee in bankruptcy, a receiver, custodian or liquidating trustee or otherwise) directly to the Administrative Agent for application to, or as collateral for the payment of, the Senior Claim until such Senior Claim shall have been paid in full and satisfied.

 

6.             Amendments .  The terms of this Subordinated Note may not be amended or otherwise modified without the prior written consent of the Administrative Agent for the benefit of the Purchasers.

 

Exhibit V-2

 

7.             GOVERNING LAW .  THIS SUBORDINATED NOTE HAS BEEN MADE AND DELIVERED AT HOUSTON, TEXAS, AND SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS AND DECISIONS OF THE STATE OF TEXAS.  WHEREVER POSSIBLE EACH PROVISION OF THIS SUBORDINATED NOTE SHALL BE INTERPRETED IN SUCH MANNER AS TO BE EFFECTIVE AND VALID UNDER APPLICABLE LAW, BUT IF ANY PROVISION OF THIS SUBORDINATED NOTE SHALL BE PROHIBITED BY OR INVALID UNDER APPLICABLE LAW, SUCH PROVISION SHALL BE INEFFECTIVE TO THE EXTENT OF SUCH PROHIBITION OR INVALIDITY, WITHOUT INVALIDATING THE REMAINDER OF SUCH PROVISION OR THE REMAINING PROVISIONS OF THIS SUBORDINATED NOTE.

 

8.             Waivers .  All parties hereto, whether as makers, endorsers, or otherwise, severally waive presentment for payment, demand, protest and notice of dishonor.  Seller additionally expressly waives all notice of the acceptance by any Senior Claimant of the subordination and other provisions of this Subordinated Note and expressly waives reliance by any Senior Claimant upon the subordination and other provisions herein provided.

 

9.             Assignment .  This Subordinated Note may not be assigned, pledged or otherwise transferred to any party without the prior written consent of the Administrative Agent, and any such attempted transfer shall be void; provided, that, the Seller may pledge or otherwise grant a security interest in this Subordinated Note to any lender or other creditor of the Seller.

 

	FERRELLGAS RECEIVABLES, LLC
	By:
		Name:
		Title:

 

Exhibit V-3

 

Schedule A

 

DOCUMENTS TO BE DELIVERED TO BUYER
ON OR PRIOR TO THE EFFECTIVENESS OF THIS AGREEMENT

 

1.                                        Executed copies of the Receivable Sale Agreement, duly executed by the parties thereto.

 

2.                                        Certificate of the Secretary or Assistant Secretary of each Originator (or, in the case of Ferrellgas, the General Partner) certifying the incumbency and signatures of its officers who are authorized to execute the Transaction Documents on its behalf and to which it is a party and attaching each of the following:

 

(a)           Copy of the Resolutions of its Board of Directors, authorizing its execution, delivery and performance of the Receivable Sale Agreement and the other documents to be delivered by it thereunder.

 

(b)           Certificate of Limited Partnership or Incorporation of such Originator certified by the Secretary of State of Delaware on or within thirty (30) days prior to the date of the Receivable Sale Agreement.

 

(c)                                   A copy of its partnership agreement or by-laws, as applicable.

 

3.                                        Good Standing Certificates for the applicable Originator issued by the Secretaries of State of each jurisdiction listed below:

 

i.              Delaware (Ferrellgas and Blue Rhino)

ii.             Kansas (Ferrellgas)

iii.            Texas (Ferrellgas)

iv.            Missouri (Ferrellgas)

v.             North Carolina (Blue Rhino)

vi.            California (Blue Rhino - to include tax certificate)

vii.           Ohio (Blue Rhino)

 

4.                                        Pre-filing federal tax lien and UCC lien searches against Blue Rhino from the following jurisdictions:

 

a.             Delaware SOS and New Castle County, DE (judgment and tax liens)

b.             San Bernardino County, California and SOS (judgment and tax liens)

c.             Marion County, Ohio and SOS (judgment and tax liens)

d.             Forsyth County, North Carolina and SOS (judgment and tax liens)

 

5.                                        Evidence that UCC-1 (or UCC-3) financing statements have been or, contemporaneously with closing, will be filed in all jurisdictions as may be necessary or, in the opinion of Buyer (or its assigns), desirable, under the UCC of all appropriate jurisdictions or any comparable law in order to perfect the ownership interests contemplated by the Receivable Sale Agreement.

 

Schedule A-1

 

6.                                        Evidence that proper UCC termination statements, if any, necessary to release all security interests and other rights of any Person (other than the security interests contemplated by the Receivable Sale Agreement) in the Receivables, Contracts or Related Security previously granted by each Originator.

 

7.                                        A favorable opinion of legal counsel for each Originator reasonably acceptable to Buyer (or its assigns) which addresses such matters as Buyer (or its assigns) may reasonably request.

 

8.                                        A “true sale/true contribution” opinion and “substantive consolidation” opinion of counsel for the Originators with respect to the transactions contemplated by the Receivable Sale Agreement.

 

9.                                        A Certificate of a Responsible Officer of each Originator certifying that no Termination Event or Potential Termination Event exists as of the date of the Purchase or will result therefrom, and that each of the representations and warranties made by such Originator in any of the Transaction Documents to which it is a party is true and correct as of such date.

 

10.                                  Executed copies of (i) all consents from and authorizations by any Persons and (ii) all waivers and amendments to existing credit facilities, that are necessary in connection with the Receivable Sale Agreement.

 

Schedule A-2

Exhibit 10.2

 

Execution Version

 

RECEIVABLES PURCHASE AGREEMENT

 

DATED AS OF JANUARY 19, 2012

 

AMONG

 

FERRELLGAS RECEIVABLES, LLC, AS SELLER,

 

FERRELLGAS, L.P., AS SERVICER,

 

 

THE PURCHASERS FROM TIME TO TIME PARTY HERETO,

 

 

FIFTH THIRD BANK AND SUNTRUST BANK, AS CO-AGENTS

 

AND

 

WELLS FARGO BANK, N.A., AS ADMINISTRATIVE AGENT

 

 

TABLE OF CONTENTS

 

				Page
ARTICLE I PURCHASE ARRANGEMENTS				2
SECTION 1.1.		PURCHASE FACILITY		2
SECTION 1.2.		INCREASES		2
SECTION 1.3.		DECREASES		3
SECTION 1.4.		FUNDING AND PAYDOWN SETTLEMENTS		4
SECTION 1.5.		OBLIGATIONS SEVERAL; INDEPENDENT NATURE OF PURCHASERS’ RIGHTS		6
SECTION 1.6.		PAYMENT REQUIREMENTS		6
SECTION 1.7.		PURCHASE ACCOUNT		7
ARTICLE II PAYMENTS AND COLLECTIONS				7
SECTION 2.1.		MONTHLY PAYMENT DATES		7
SECTION 2.2.		REINVESTMENT PROCEDURES		8
SECTION 2.3.		LIQUIDATION SETTLEMENT PROCEDURES		8
SECTION 2.4.		PAYMENT RESCISSION		9
SECTION 2.5.		MAXIMUM PURCHASER INTERESTS		9
SECTION 2.6.		CLEAN-UP CALL		9
ARTICLE III [RESERVED]				9
ARTICLE IV PURCHASER FUNDING				9
SECTION 4.1.		PURCHASER FUNDING		9
SECTION 4.2.		YIELD PAYMENTS		10
SECTION 4.3.		SUSPENSION OF LMIR		10
ARTICLE V REPRESENTATIONS AND WARRANTIES				10
SECTION 5.1.		REPRESENTATIONS AND WARRANTIES OF THE SELLER		10
(a)	Existence and Power			10
(b)	Power and Authority; Due Authorization, Execution and Delivery			10
(c)	No Conflict			11
(d)	Governmental Authorization			11
(e)	Actions, Suits			11
(f)	Binding Effect			11
(g)	Accuracy of Information			11
(h)	Use of Proceeds			12
(i)	Good Title			12
(j)	Perfection			12
(k)	Places of Business and Locations of Records			12
(l)	Collections			12

 

i

 

(m)	Material Adverse Effect			12
(n)	Names			13
(o)	Ownership of Seller			13
(p)	Not a Regulated Entity			13
(q)	Compliance with Law			13
(r)	Compliance with Credit and Collection Policy			13
(s)	Payments to Originator			13
(t)	Enforceability of Contracts			13
(u)	Eligible Receivables			14
(v)	Net Receivables Balance			14
(w)	Accounting			14
ARTICLE VI CONDITIONS OF PURCHASES				14
SECTION 6.1.		CONDITIONS PRECEDENT		14
SECTION 6.2.		CONDITIONS PRECEDENT TO ALL PURCHASES AND REINVESTMENTS		14
ARTICLE VII COVENANTS				15
SECTION 7.1.		FINANCIAL REPORTING		15
(a)	Annual Financial Statements			15
(b)	Quarterly Financial Statements			15
(c)	Receivable Sale Agreement Financial Statements			15
(d)	Credit Agreement Financial Statements			16
SECTION 7.2.		CERTIFICATES; OTHER INFORMATION		16
(a)	Receivable Sale Agreement Certificates			16
(b)	Compliance Certificates			16
SECTION 7.3.		NOTICES		16
SECTION 7.4.		COMPLIANCE WITH LAWS		17
SECTION 7.5.		PRESERVATION OF EXISTENCE, ETC.		17
SECTION 7.6.		PAYMENT OF OBLIGATIONS		17
SECTION 7.7.		AUDITS		18
SECTION 7.8.		KEEPING OF RECORDS AND BOOKS		18
SECTION 7.9.		COMPLIANCE WITH CONTRACTS AND CREDIT AND COLLECTION POLICY		18
SECTION 7.10.		PURCHASERS’ RELIANCE		18
SECTION 7.11.		PERFORMANCE AND ENFORCEMENT OF RECEIVABLE SALE AGREEMENT		21
SECTION 7.12.		COLLECTIONS		21
SECTION 7.13.		OWNERSHIP		21
SECTION 7.14.		TAXES		22
SECTION 7.15.		NEGATIVE COVENANTS OF THE SELLER PARTIES		22
(a)	Name Change, Offices and Records			22
(b)	Change in Payment Instructions to Obligors			22

 

ii

 

(c)	Modifications to Contracts and Credit and Collection Policy			22
(d)	Sales, Adverse Claims			23
(e)	Net Receivables Balance			23
(f)	Termination Date Determination			23
(g)	Restricted Junior Payments			23
ARTICLE VIII ADMINISTRATION AND COLLECTION				23
SECTION 8.1.		DESIGNATION OF SERVICER		23
SECTION 8.2.		CERTAIN DUTIES OF SERVICER		23
SECTION 8.3.		COLLECTION NOTICES		24
SECTION 8.4.		RESPONSIBILITIES OF SELLER		25
SECTION 8.5.		REPORTS		25
ARTICLE IX AMORTIZATION EVENTS				25
SECTION 9.1.		AMORTIZATION EVENTS		25
SECTION 9.2.		REMEDIES		28
ARTICLE X INDEMNIFICATION				29
SECTION 10.1.		INDEMNITIES BY THE SELLER PARTIES		29
SECTION 10.2.		INCREASED COST AND REDUCED RETURN		31
SECTION 10.3.		OTHER COSTS AND EXPENSES		32
ARTICLE XI THE AGENTS				32
SECTION 11.1.		AUTHORIZATION AND ACTION		32
SECTION 11.2.		DELEGATION OF DUTIES		33
SECTION 11.3.		EXCULPATORY PROVISIONS		33
SECTION 11.4.		RELIANCE BY AGENTS		34
SECTION 11.5.		NON-RELIANCE ON AGENTS AND OTHER PURCHASERS		34
SECTION 11.6.		REIMBURSEMENT AND INDEMNIFICATION		34
SECTION 11.7.		AGENTS IN THEIR INDIVIDUAL CAPACITY		34
SECTION 11.8.		SUCCESSOR ADMINISTRATIVE AGENT		35
ARTICLE XII ASSIGNMENTS; PARTICIPATIONS				35
SECTION 12.1.		ASSIGNMENTS		35
SECTION 12.2.		PARTICIPATIONS		35
SECTION 12.3.		FEDERAL RESERVE		36
ARTICLE XIII [RESERVED]				36
ARTICLE XIV MISCELLANEOUS				36
SECTION 14.1.		WAIVERS AND AMENDMENTS		36

 

iii

 

SECTION 14.2.	NOTICES		37
SECTION 14.3.	RATABLE PAYMENTS		37
SECTION 14.4.	PROTECTION OF OWNERSHIP INTERESTS OF THE PURCHASERS		38
SECTION 14.5.	CONFIDENTIALITY		38
SECTION 14.6.	[RESERVED]		39
SECTION 14.7.	LIMITATION OF LIABILITY		39
SECTION 14.8.	CHOICE OF LAW		39
SECTION 14.9.	CONSENT TO JURISDICTION		39
SECTION 14.10.	WAIVER OF JURY TRIAL		40
SECTION 14.11.	INTEGRATION; BINDING EFFECT; SURVIVAL OF TERMS		40
SECTION 14.12.	COUNTERPARTS; SEVERABILITY; SECTION REFERENCES		40
SECTION 14.13.	CHARACTERIZATION		40

 

EXHIBITS AND SCHEDULES

 

Exhibit I		Definitions
Exhibit II-A		Form of Purchase Notice
Exhibit II-B		Form of Reduction Notice
Exhibit III		Principal Places of Business and Chief Executive Offices of the Seller Parties; Locations of Records; Federal Employer Identification Number(s)
Exhibit IV		Form of Compliance Certificate
Exhibit V		[Intentionally Deleted]
Exhibit VI		Form of Monthly Report
Exhibit VII		Form of Interim Report
Schedule A		Commitments
Schedule B		Closing Documents
Schedule C		List of Accounts with Balances That Can Be Concentrated on a Weekly Basis if Daily Balances are under $2,500
Schedule D		Blocked Account Agreements

 

iv

 

RECEIVABLES PURCHASE AGREEMENT

 

THIS RECEIVABLES PURCHASE AGREEMENT , dated as of January 19, 2012 (this “ Agreement ” ), is among:

 

(a)           Ferrellgas Receivables, LLC, a Delaware limited liability company (“ Seller ”),

 

(b)           Ferrellgas, L.P., a Delaware limited partnership (“ Ferrellgas ”), as initial Servicer (the initial Servicer together with Seller, the “ Seller Parties ” and each a “ Seller Party ”),

 

(c)           Wells Fargo Bank, N.A., individually (“ Wells” or a “Purchaser” ),

 

(d)           Fifth Third Bank, individually (“ Fifth Third” or a “Purchaser” ) and as a co-agent (a “Co-Agent” ),

 

(e)           SunTrust Bank, individually ( “SunTrust” or a “Purchaser” ) and as a co-agent (a “Co-Agent” ), and

 

(f)            Wells, as administrative agent for the Purchasers (hereinafter defined) (together with its successors and assigns hereunder, the “ Administrative Agent ” and, together with the Co-Agents, the “Agents” ).

 

Unless defined elsewhere herein, capitalized terms used in this Agreement shall have the meanings assigned to such terms in Exhibit I and, if not defined therein, the meanings assigned to such terms in the Receivable Sale Agreement referenced therein.

 

PRELIMINARY STATEMENTS

 

A.            The Seller desires to transfer and assign Purchaser Interests to the Administrative Agent for the benefit of the Purchasers from time to time prior to the Facility Termination Date.

 

B.            Each of the Purchasers, or the Administrative Agent on behalf of the Purchasers, shall purchase Purchaser Interests from Seller from time to time prior to the Facility Termination Date.

 

C.            Wells Fargo Bank, N.A. has been requested and is willing to act as Administrative Agent on behalf of the Purchasers in accordance with the terms hereof.

 

NOW , THEREFORE , in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto hereby further agree as follows: