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Contribution Agreement

 

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Title:

Contribution Agreement

Entities:

Ferrellgas Finance Corp; Ferrellgas Partners LP

Date:

2004

Size:

Preview shows 5KB of 40KB total

Price:

$43

ID:

#1596055

 

 

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                             CONTRIBUTION AGREEMENT


This Contribution Agreement ("Agreement") is made and entered into as of
the 8th day of February, 2004, by and among FCI Trading Corp., a Delaware
corporation ("Parent"), Ferrellgas, Inc., a Delaware corporation (the "General
Partner "), Ferrellgas Partners, L.P., a Delaware limited partnership (the
"Partnership") and Ferrellgas, L.P., a Delaware limited partnership (the
"Operating Partnership").

WHEREAS, the General Partner is the general partner of both the Partnership
and the Operating Partnership;

WHEREAS, Ferrell Companies, Inc., a Kansas corporation ("Ultimate Parent"),
is the sole stockholder of Parent and Parent is the sole member of Diesel
Acquisition LLC ("Merger Sub"); and

WHEREAS, Parent, Merger Sub, Ultimate Parent and Blue Rhino Corporation, a
Delaware corporation (the "Company") have entered into an Agreement and Plan of
Merger dated as of the date hereof (the "Plan"), pursuant to which Merger Sub
will merge with and into the Company with the Company being the surviving entity
(the "Surviving Entity") in the merger (the "Merger"), thereby becoming a direct
wholly-owned subsidiary of Parent;

NOW, THEREFORE, in consideration of the foregoing and the respective
representations, warranties, mutual covenants and agreements herein contained
and intending to be legally bound hereby, the parties hereto agree as follows:

1. Deposit of Funds. Prior to the Closing, as defined in the Plan, the
Operating Partnership shall deliver an amount equal to the aggregate Merger
Consideration payable to all holders of Company Common Stock, as both such terms
are defined in the Plan, as the Parent's designee for the delivery of such funds
as described in the Escrow Agreement, as such term is defined in the Plan.

2. Post-Merger Transactions. After the consummation of the Merger pursuant
to the terms of the Plan, the parties hereto shall take the following actions:

(a) Parent shall have converted the Company into a Delaware limited
liability company (the "Converted Entity") and shall contribute

(i) a portion of the membership interests in the Converted Entity
("Parent Contribution"), which together with any portion of the
membership interests of the Converted Entity that were distributed to
the Ultimate Parent, contributed to the General Partner and are to be
contributed by the General Partner to the Partnership or the Operating
Partnership to maintain the General Partner's interest in those
partnerships as set forth in those partnerships respective partnership
agreements, shall constitute all of the membership interests of the
Converted Entity; and

1



(ii) Parent's obligation to pay the Merger Consideration as set
forth in Section 2.1(b) of the Plan and Parent's obligations under the
paying agent agreement, as described in the Plan (collectively, the
"Assumed Debt"), which obligations are hereby assumed in full by the
Partnership;

(b) the Partnership and the General Partner shall contribute all of
the membership interests of the Converted Entity to the Operating
Partnership, in accordance with the terms of the Operating Partnership's
partnership agreement, and the Partnership shall contribute to the
Operating Partnership the Assumed Debt, which obligations in respect of the
Assumed Debt are hereby assumed in full by the Operating Partnership; and

(c) the Operating Partnership shall cause the Converted Entity to be
merged with and into the Operating Partnership by filing a Certificate of
Ownership and Merger with the Secretary of State of Delaware, which
certificate shall be filed with the Secretary of State of the State of
Delaware immediately after the Effective Time (as defined in the Plan) but
shall not be effective, pursuant to its terms and in accordance with
Delaware law, until no later than two business days after the Effective
Time.

3. Consideration for Parent Contribution. In consideration for the Parent
Contribution, the Partnership shall issue to Parent, on the date of the Parent
Contribution, common units representing limited partner interests in the
Partnership ("Common Units") with a value equal to $8,704,815 less the value of
the contribution by the General Partner to the Partnership and the Operating
Partnership in connection with the issuance of Common Units pursuant to an
anticipated public offering of Common Units and private offerings of Common
Units to be consummated prior to or simultaneously with the consummation of the

 

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