Document:

exv10w11

 

EXHIBIT 10.11

GUARANTY DATED JUNE 1, 2004 BETWEEN UGI

CORPORATION AND VIKING RESOURCES CORP.

 

 

BOX 858 VALLEY FORGE, PA 19482 o 610-337-1000

GRAPHIC

UGI

CORPORATION

June 8, 2004

VIA REGULAR MAIL

Atlas America, Inc.

Attention: Michael Brecko

311 Rouser Road

P.O. Box 611

Moon Township, PA 15108

RE. GUARANTY FOR UGI ENERGY SERVICES, INC.

Dear Mr. Brecko:

Enclosed is the executed original Guaranty made by UGI Corporation in favor of Viking Resources,
Corp., effective as of March 1, 2004. This Guaranty is intended as credit assurance for the
transactions of UGI Energy Services Inc., and is given in the amount of $7,000,000. This Guaranty
supercedes the prior Guaranty between the parties, which was dated effective March 1, 2004.

If you have any questions concerning the foregoing, please contact me at
(610) 337-1000, extension 3148.

Very truly yours,

graphic

Frank H.
Markle
 Counsel

Attachment

Cc: Andrew Koehler

graphic

RECEIVED JUN 10 2004

460 NORTH GULPH ROAD, KING OF PRUSSIA, PA 19406

 

 

GUARANTY

This Guaranty (the “Guaranty”) is made by UGI Corporation (“Guarantor”), a Pennsylvania
corporation, effective as of June 1, 2004 (the “Effective Date”), in favor of Viking Resources
Corp. (“Creditor”), a Pennsylvania corporation.

WHEREAS, UGl Energy Services, Inc. d/b/a GASMARK (“Debtor”), a Pennsylvania corporation and
Creditor are parties to various agreements for the purchase, sale and/or transportation of natural
gas (whether one or more, the “Agreement”); and

WHEREAS, the execution and delivery of this Guaranty is a condition to Creditor’s further
performance of its obligations under the terns of the Agreement and Guarantor has agreed to provide
assurance for the performance of Debtor’s obligations in connection with the Agreement

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the
adequacy, receipt and sufficiency of which are hereby acknowledged, Guarantor hereby agrees as
follows:

1. GUARANTY. Guarantor hereby unconditionally and absolutely guarantees the punctual payment when
due of Debtor’s payment obligations arising under the Agreement, as may be amended or modified from
time to time, together with any interest thereon (collectively, the “Guaranteed Obligations”);
provided, however, that the total liability of Guarantor hereunder, regardless of any amendment or
modification to the Agreement, is limited to the lesser of (a) all amounts owed by Debtor to
Creditor under the Agreement or Seven Million Dollars or ($7,000,000.00). Guarantor’s obligations
and liability under this Guaranty shall be limited to payment obligations of Debtor and Guarantor
shall have no obligation to sell, deliver, supply or transport gas and/or electricity.

2. WAIVER. This is a guaranty of payment and not of collection. Guarantor hereby waives:

(a) notice of acceptance of this Guaranty, of the creation or existence of any of the Guaranteed
Obligations and of any action by Creditor in reliance hereon or in connection herewith; and

(b) any requirement that suit be brought against, or any other action by Creditor be taken against,
or any notice of default or other notice be given to, or any demand be made on, Debtor or any other
person, or that any other action be taken or not taken as a condition to Guarantor’s liability for
the Guaranteed Obligations or as a condition to the enforcement of this Guaranty against Guarantor,
except as expressly defined herein.

 

 

3. TERM: TERMINATION. This Guaranty shall continue in full force and effect for a term commencing
on the Effective Date and continuing until April 30, 2006. Notwithstanding the foregoing, this
Guaranty may be terminated at any time by the Guarantor by providing at least forty-five (45) days
prior written notice to Creditor; provided, however, upon termination hereof, Guarantor agrees that
the obligations and liabilities hereunder shall continue in full force and effect with respect to
any obligations incurred prior to the termination date, plus any interest thereon, and any fees and
costs of enforcement in connection herewith.

This Guaranty shall continue to be effective or be restated, as the case may be, if at any time any
payment of any of the Guaranteed Obligations are annulled, set aside, invalidated, declared to be
fraudulent or preferential, rescinded or must otherwise be returned, refunded or repaid by Creditor
upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of Debtor or any other
guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, a
trustee or similar officer for, Debtor or any other guarantor or any substantial part of its
property or otherwise, all as though such payment or payments had not been made.

4. DEMAND. Prior to commencing any legal proceeding to enforce this Guaranty, the Creditor shall
provide the Guarantor with written demand (“Demand”) setting forth Debtors obligation and providing
the Guarantor or the Debtor three (3) business days in which to satisfy the obligation and thereby
avoid enforcement of the Guaranty. Any Demand by Creditor hereunder shall be in writing, signed by
a duly authorized officer of Creditor and delivered to the Guarantor pursuant to Section 4 hereof,
and shall (a) reference this Guaranty, (b) specifically identify the Debtor, the Guaranteed
Obligations to be paid and the amount of such Guaranteed Obligations and (c) set forth payment
instructions. Guarantor shall pay, or cause to be paid, such Guaranteed Obligations within three
(3) business days of receipt of such Demand.

There are no other conditions precedent to the enforcement of this Guaranty except as set forth
above. It shall not be necessary for Creditor, in order to enforce payment by Guarantor under this
Guaranty, to show any proof of Debtor’s default, to exhaust its remedies against Debtor, any other
guarantor, or any other person liable for the payment or performance of the Guaranteed Obligations.
Creditor shall not be required to mitigate damages or take any other action to reduce, collect, or
enforce the Guaranteed Obligations.

5. SUBROGATION. Guarantor shall be subrogated to all rights of Creditor against Debtor in respect
of any amounts paid by Guarantor pursuant to the Guaranty, provided that Guarantor waives any
rights it may acquire by way of subrogation under this Guaranty, by any payment made hereunder or
otherwise, until all of the Guaranteed Obligations shall have been irrevocably paid to Creditor in
full. If any amount shall be paid to the Guarantor on account of such subrogation rights at any
time when all the Guaranteed Obligations shall not have been paid in full, such amount shall be
held

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in trust for the benefit of Creditor and shall forthwith be paid to Creditor to be applied to the
Guaranteed Obligations.

6. NOTICES. All demands, notices and other communications provided for hereunder shall. unless
otherwise specifically provided herein, (a) be in writing addressed to the party receiving the
notice at the address set forth below or at such other address as may be designated by written
notice from effective upon delivery, when mailed by U.S. mail, registered or certified, return
receipt requested, postage prepaid, or personally delivered Notices shall be sent to the following
addresses:

IF TO CREDITOR:

Atlas America, Inc.

Attention : Michael Brecko

311 Rouser Road

P.O. Box 611

Moon Township, PA 15108

IF TO GUARANTOR:

UGI Corporation

Attention: Robert Krick, Treasurer P.O. Box 858

Valley Forge, PA 19482

7. NO WAIVER; REMEDIES. Except as to applicable statutes of limitation, no failure on the part of
Creditor to exercise, and no delay in exercising, any right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

8. ASSIGNMENT; SUCCESSORS AND ASSIGNS. Creditor may, upon notice to Guarantor, assign its rights
hereunder without the consent of Guarantor. Guarantor may assign its rights hereunder with the
prior written consent of Creditor, which consent shall not be unreasonably withheld. Subject to the
foregoing, this Guaranty shall be binding upon and inure to the benefit of the parties hereto and
their respective successors, permitted assigns, and legal representatives.

9. GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA AND APPLICABLE FEDERAL LAW.

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10. ENTIRE AGREEMENT. This Guarantee sets forth the entire understanding and agreement between the
parties as to matters covered herein and expressly supersedes all prior guarantees, agreements and
understandings between the parties with respect to the subject matter hereof. Any change,
modification, amendment, or alteration of this Guaranty shall be in writing and no course of
dealing between the parties prior or subsequent to the date of this Guaranty shall be construed to
change, modify, amend, alter or waive the terms thereof

IN WITNESS WHEREOF, UGI Corporation has caused this Guaranty to be duly executed and delivered by
its duly authorized officer effective as of the Effective Date first written above.

UGI CORPORATION

By: /s/
Robert W. Krick

Name:
Robert W. Krick

Title: Treasurer

4exv10w12

 

Exhibit 10.12

GUARANTY AS OF DECEMBER 7, 2004 BETWEEN

FIRSTENERGY CORP. AND ATLAS RESOURCES, INC.

 

 

	 	 	 	 	 
	 

	 	[GRAPHIC OMITTED]
	 	76 South Main St.
	 

	 	 	 	Akron, Ohio 44308
	 

	 	 	 	1-800-533-4758

Guaranty dated as of December 7, 2004 by and between FirstEnergy Corp., an Ohio corporation,
with its principal place of business at 76 South Main Street, Akron, OH 44308 (“Guarantor”) and
Atlas Resources Inc., a Pennsylvania corporation, with its principal place of business at 311
Rousar Rd., Coranpolls, PA 15108 (“Seller”). Seller, together with its affiliates Atlas Energy
Group, Inc., an Ohio Corporation, Resource Energy, Inc., a Delaware corporation, and Viking
Resources Corporation, an Ohio Corporation, entered into a Gas Purchase Agreement for the purchase
and sale of natural gas (“Sales Agreement”) to FirstEnergy Solutions Corp., (“Customer”), a
subsidiary of the Guarantor.

In consideration thereof, and as an inducement for the extension of credit by the Seller to the
Customer, the Guarantor hereby absolutely and unconditionally guarantees to the Seller, its
permitted successors and assigns pursuant to this letter (this “Guaranty”), the prompt payment
(within three (3) business days of demand by the Seller) of any and all amounts that are or may hereafter become
due and payable (taking into account all applicable grace periods) from the Customer to the Seller
by reason of the Sales Agreement (the “Obligations”), to fully perform the Sales Agreement, as well
as any indebtedness under the Sales Agreement (regardless of whether such indebtedness be in the
form of book accounts, promissory notes, trade acceptances, checks, drafts, or other evidence of
indebtedness, together with late fees, service charges or liquidated damages (but only if, and to
the extent, provided for in the Sales Agreement) and Interest at the rate specified therein). This
Guaranty shall be a guaranty of payment, and not of collection, and the Seller shall not be
required to take any proceedings or exhaust its remedies against the Customer prior to the exercise
of its rights and remedies against the Guarantor, as guarantor.

The Guarantor hereby agrees to reimburse the Seller for all sums paid to it by the Customer under
the Sales Agreement, which must subsequently be returned by the Seller to the Customer as a
preference or fraudulent transfer under the Federal Bankruptcy Code, any applicable state law and
for any other reason.

Notwithstanding anything else in this Guaranty to the contrary, the obligation and liability of
Guarantor hereunder shall not (i) be effective or enforceable with respect to any Obligation,
liability or claim relating in any way to consequential, indirect, punitive or exemplary damages of
any kind whatsoever, whether owing by Company or otherwise, and (ii) exceed Fifteen Million Dollars
($15,000,000) in the aggregate. This Guaranty is a continuing guaranty and shall remain in full
force and effect until at least March 31, 2007, and shall continue on a monthly basis thereafter,
unless terminated by either party with thirty (30) days written notice to the other party.

If the Guarantor shall be adjudicated bankrupt under the Federal Bankruptcy Laws, or if any
petition for any relief under any of such laws shall be filed by or against the Guarantor, or if
the Guarantor shall make an assignment for the benefit of creditors or shall apply for a receiver
for all or any part of its property, or if the Guarantor shall become insolvent or unable to pay
its debts as they mature, then and in any such event all of the Obligations shall forthwith become
and be immediately due and payable by the Guarantor.

Notice of demand by the Seller shall be sent by either certified mail, return receipt requested, or
hand delivery, to the respective addresses specified above, with notices to the Guarantor sent to
the attention of the Credit Manager and notices to the Seller sent to the attention of both John
Ranieri and Nancy McGurk, and shall be deemed to be received on the day that such writing is
delivered to the intended recipient thereof.

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The Guarantor hereby acknowledges that any modification of the Sales Agreement shall not affect the
liability of the Guarantor with respect hereto. Except as provided above with respect to the
requirement of notice from the Seller to the Guarantor of a payment demand, the Guarantor hereby
waives, to the extent permitted by law, the requirements of the giving of any notice, including,
but not limited to, (a) notice of the acceptance of this Guaranty by the Seller; (b) notice of the
entry into the Sales Agreements between the Customer and the Seller and of any modifications
thereto; (c) notice of any extension of time for the payment of any sums due and payable to the
Seller under the Sales Agreement; (d) with respect to any notes or evidence of indebtedness
received by the Seller from the Customer, notice of presentment, notice of adverse facts, protest
or notice of protest; and (e) notice of any defaults by or disputes with the Customer.

This Guaranty shall not be affected by the taking of any checks, notes or other obligations,
secured or unsecured, in any amount, purportedly in payment of the whole or any part of any
Obligations or by reason of any extension of time given to, or any indulgences shown to, the
Customer by the Seller, or by the making, execution and delivery of any oral or written agreement
or agreements affecting said Obligations. The Guarantor’s liability hereunder shall not be impaired
or discharged by reason of any reorganization, insolvency, bankruptcy or similar proceeding
(whether voluntary or involuntary) modifying the Seller’s rights and remedies against the Customer
with regard to any Obligation or liability of the Customer to the Seller under the Sales Agreement.

The Guarantor also waives diligence, presentment, protest to or upon Customer with respect to the
Obligations. This Guaranty shall be construed as a continuing, absolute and unconditional guarantee
of payment without regard to (a) the validity, regularity or enforceability of the Sales Agreement,
any of the Obligations or any other collateral security therefor or guarantee a right of offset
with respect thereto at any time or from time to time by Seller, (b) until Seller shall have been
paid in full, any right by Guarantor to subrogation of indemnification, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the Seller or Guarantor) which
constitutes, or might be construed to constitute, an equitable or legal discharge of the Customer
for the Obligations, or of Guarantor under this Guaranty, in bankruptcy or in any other instance.
When pursuing its rights and remedies hereunder against Guarantor, the Seller may, but shall be
under no obligation to, pursue such rights and remedies as it may have against Customer or any
other party or against any collateral security or guarantee for the Obligations or any right to
offset with respect thereto, and any failure by Seller to pursue such other rights or remedies or
to collect any payments from the Customer or any such other party or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or any release of
Customer or any such other party or of any such collateral security, guarantee or right of offset,
shall not relieve Guarantor of any liability hereunder, and shall not impair or affect the rights
and remedies, whether express, implied or available as a matter of law, of Seller against
Guarantor.

Notwithstanding anything else in this Guaranty to the contrary, Guarantor shall be permitted and
entitled to raise all defenses to payment hereunder that are available to Company, other than those
defenses available to the Company solely as a result of bankruptcy, insolvency, reorganization and
other similar proceedings.

This Guaranty shall bind the Guarantor for any and all of the Customer’s purchases of natural gas
from the Seller, or the Seller’s production affiliates, Resource Energy, Inc., Viking Resources
Corporation, and Atlas Energy Group, Inc.

This Guaranty shall remain in full force and effect and be binding in accordance with and to the
extent of its terms upon Guarantor and its successors and assigns thereof, and shall inure to the
benefits of the Seller, and its respective successors, transferees, affiliates and assigns, until
all Obligations and the obligations of Guarantor under this Guaranty shall been satisfied by
payment in full.

The Guarantor represents and warrants, as the date hereof, that this Guaranty has been duly
authorized, executed and delivered by the Guarantor.

2

 

This Guaranty shall not be assigned or modified without the written consent of each of the
Guarantor and the Seller and shall not be affected by any change in the relationship between
Guarantor and the Customer. This Guaranty shall not be relied upon, or enforced, by any person
other than the Guarantor, the Customer, and the Seller.

This Guaranty shall be governed by and construed in accordance with the laws of the State of Ohio,
without regard to the conflict of law rules thereof. The Guarantor and the Seller, by accepting
this Guaranty, submit to the non- exclusive jurisdiction of the Courts of the State of Ohio and the
United States District Court of Northern District of Ohio.

This Guaranty revokes any prior guaranty issued by the Guarantor to the Seller for the obligations
of the customer.

IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed by its duly authorized
officer as of the date first above written.

	 	 	 	 	 
	 	FIRSTENERGY CORP.

 	 
	 	/s/ Thomas C. Navin
 	 
	 	Thomas C. Navin 	 
	 	Treasurer 	 
	 

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