EXHIBIT
4.8
GUARANTEE
(“ this Guarantee ”)
THIS GUARANTEE is dated as of February 9, 2007, and made by
LANDER CO. CANADA LIMITED , a corporation amalgamated
under the laws of Ontario (the “ Guarantor ”),
to and in favour of WELLS FARGO FOOTHILL, INC. (the “
Collateral Agent ”), a California corporation, as
collateral agent on behalf of the Lender Group (collectively, the
“ Beneficiaries ”) under the Credit Agreement
(as defined herein).
WHEREAS:
A. Pursuant
to the terms of a second lien credit agreement (as amended,
restated, renewed, supplemented or otherwise modified from time to
time, the “ Credit Agreement ”) dated as of
February 9, 2007 by and among Ascendia Brands, Inc. (the “
Parent ”) and each of its Subsidiaries that are party
thereto (collectively, the “ Borrowers ”), as
borrowers, and, on the other hand, Watershed Administrative, LLC,
as administrative agent for the Lenders, Collateral Agent, as
collateral agent for the benefit of the Lenders, and the lenders
that are from time to time party thereto (collectively, the “
Lenders ”), as lenders, the Lenders have agreed to
make available to the Borrowers certain credit facilities on the
terms and conditions set out in the Credit Agreement.
B. The
Guarantor is an indirect Subsidiary of the Parent and is
accordingly a part of the corporate and operational group of the
Borrowers (the “ Borrower Group ”). By virtue of
it being part of the Borrower Group, the Guarantor derives economic
benefit from the Term Loans and any other extension of credit by
the Lenders to the Borrowers.
C. As
a condition of the extension of credit by the Lenders to the
Borrowers, the Lenders require the Guarantor to guarantee the due
payment and performance by each of the Borrowers of all the
Obligations (collectively, the “ Guaranteed
Obligations ”);
D. All
capitalized terms used but not defined herein have the meaning
ascribed to such terms in the Credit Agreement.
FOR VALUABLE CONSIDERATION, the receipt and sufficiency of
which are hereby acknowledged, the Guarantor hereby agrees with the
Collateral Agent as follows:
1. The
Guarantor irrevocably, absolutely and unconditionally guarantees to
the Collateral Agent, for the benefit of the Beneficiaries, (a) the
due payment and performance by the Borrowers to the Collateral
Agent, for the benefit of the Beneficiaries, of the Guaranteed
Obligations, and (b) the punctual and faithful performance, keeping
and observance, and fulfillment by the Borrowers of all agreements,
conditions, covenants and obligations of the Borrowers contained in
the Credit Agreement and each of the other Loan
Documents.
2. This
Guarantee is a continuing guarantee and is not limited by amount,
time or otherwise.
3. The
Guarantor hereby acknowledges that certain of the rates of interest
applicable as to the Guaranteed Obligations may be computed on the
basis of a year of 360 days or 365 days, as the case may be, and
paid for the actual number of days elapsed. For the purposes of the
Interest Act (Canada), as the same may be amended, replaced
or re-enacted from time to time, whenever any interest is
calculated using a rate based on a year of 360 days or 365 days, as
the case may be, such rate determined pursuant to such calculation,
when expressed as an annual rate is equivalent to:
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(a)
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the applicable rate based on a year of 360 days or 365 days, as the
case may be,
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(b)
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multiplied by the actual number of days in a calendar year in which
the period for such interest is payable (or compounded),
and
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(c)
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divided by 360 days or 365 days, as the case may be.
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4. If
any provision of this Guarantee would oblige the Guarantor to make
any payment of interest or other amount payable to the Collateral
Agent in an amount or calculated at a rate which would be
prohibited by law or would result in a receipt by the Collateral
Agent of “interest” at a “criminal rate”
(as such terms are construed under the Criminal Code
(Canada)), then, notwithstanding such provision, such amount or
rate shall be deemed to have been adjusted with retroactive effect
to the maximum amount or rate of interest, as the case may be, as
would not be so prohibited by law or so result in a receipt by the
Collateral Agent of “interest” at a “criminal
rate”, such adjustment to be effected, to the extent
necessary (but only to the extent necessary), as
follows:
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(a)
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first, by reducing the amount or rate of interest required to be
paid to the Collateral Agent; and
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(b)
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thereafter, by reducing any fees, commissions, premiums and other
amounts required to be paid to the Collateral Agent which would
constitute interest for purposes of Section 347 of the
Criminal Code (Canada).
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5. The
liability of the Guarantor hereunder shall bear interest from the
date written demand for payment is deemed to have been given by the
Collateral Agent to the Guarantor at the applicable rate or rates
set out in the Credit Agreement.
6. The
Guarantor will provide and grant forthwith to the Collateral Agent
the security required to be granted by it as described in the
Credit Agreement and the other Loan Documents, including, without
limitation, a general security agreement as security for the
Guaranteed Obligations. The Collateral Agent may, from time to
time, without exonerating or releasing the Guarantor in any way
under this Guarantee, (i) take such further or other security
or collateral for the Guaranteed Obligations or any part thereof as
it may reasonably deem proper, (ii) release, discharge,
abandon or otherwise deal with or fail to deal with any other
guarantor of the Guaranteed Obligations or any collateral, security
or securities therefor or any part thereof now or hereafter held by
the Collateral Agent, (iii) amend, increase the amount owing
under, modify, extend, accelerate or waive in any manner any of the
provisions, terms, or conditions of the Loan Documents, all as it
may consider expedient or appropriate in its sole discretion or
(iv) act or fail to act in any manner referred to in this
Guarantee without regard to whether such
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action
or inaction may deprive the Guarantor of its right to subrogation
against the Borrowers to recover full indemnity for any payments
made pursuant to this Guarantee. Without limiting the generality of
the foregoing, or of Section 7 hereof, it is understood that
the Collateral Agent may, without exonerating or releasing the
Guarantor, give up, or modify or abstain from perfecting or taking
advantage of any security or Collateral in respect of the
Guaranteed Obligations and accept or make any compositions or
arrangements, and realize upon any security for the Guaranteed
Obligations when, and in such manner, and with or without notice,
all as the Collateral Agent may deem expedient.
7. Without
releasing, discharging, limiting or otherwise affecting in whole or
in part the obligations and liabilities of the Guarantor hereunder
and without the consent of or notice to the Guarantor, the
Collateral Agent, the Beneficiaries or any of them, may, as they
see fit and regardless of whether the Guarantor’s risk is
increased:
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(a)
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grant time, renewals, extensions, indulgences, releases and
discharges to the Borrowers or any other Person or Persons now or
hereafter liable to the Collateral Agent, the Beneficiaries or any
of them, in respect of the Guaranteed Obligations,
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(b)
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take or refrain from taking security or collateral from the
Borrowers or any other Person or Persons or from perfecting such
security or collateral in connection with the Guaranteed
Obligations,
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(c)
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give up, modify, exchange, renew, release, discharge, compromise,
realize, enforce or otherwise deal with or do any act or thing in
respect of (with or without consideration) any and all collateral,
mortgages or other security given by the Borrowers or any other
Person or Persons with respect to the Guaranteed
Obligations,
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(d)
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accept compromises, settlements or arrangements from the Borrowers
or any other Person or Persons,
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(e)
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exercise any right or remedy which they may have against the
Borrowers or any other Person or Persons or with respect to any
security for the Guaranteed Obligations, including judicial and
non-judicial foreclosure,
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(f)
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apply money at any time received from the Borrowers or any Person
or Persons or from security upon such part of the Guaranteed
Obligations as they may see fit or change any such application in
whole or in part from time to time as they may see fit,
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(g)
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give credit or make advances to the Borrowers, including, without
limitation, the Guarantor, or any other Person, and discontinue,
release, increase or otherwise vary such credit, and
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(h)
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otherwise deal with, or waive or modify its right to deal with the
Borrowers and any other Person or Persons as they may see
fit,
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and
in no case shall the Collateral Agent, the Beneficiaries or any of
them, be responsible for, nor the Guarantor be released from, its
obligations hereunder by any neglect or omission of the Collateral
Agent, the Beneficiaries or any of them, with respect to any of the
foregoing.
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8. The
Guarantor renounces all benefits of discussion and
division.
9. Regardless
of whether any proposed guarantor, surety or any other Person or
Persons is or are or shall become in any other way responsible to
the Collateral Agent for or in respect of the Guaranteed
Obligations or any part thereof, and regardless of whether or not
any Person now or hereafter responsible to the Collateral Agent for
the Guaranteed Obligations or any part thereof, whether under this
Guarantee or otherwise, shall cease to be so liable, the Guarantor
hereby declares and agrees that this Guarantee shall be a
continuing guarantee and shall be operative and binding and that,
subject to the terms of the Credit Agreement, nothing but the
performance and payment in full of the Guaranteed Obligations shall
release the Guarantor of its liability under this
Guarantee.
10. All
monies, advances, renewals and credits in fact borrowed or obtained
by the Borrowers from the Collateral Agent, the Beneficiaries or
any of them, under the Credit Agreement or any other Loan Document
or under any security held from time to time by the Collateral
Agent for the Guaranteed Obligations will be deemed to form part of
the Guaranteed Obligations, notwithstanding any lack or limitation
of status or of power, incapacity or disability of the Borrowers or
of the directors, partners or agents thereof, or that the Borrowers
may not be a legal or suable entity, or any irregularity, defect or
informality in the borrowing or obtaining of such money, advances,
renewals or credits, the whole whether known to the Collateral
Agent or not, and any sum which may not be recoverable from the
Guarantor as guarantor shall be recoverable from the Guarantor as
sole or principal debtor in respect thereof and vice versa and
shall be paid to the Collateral Agent as aforesaid and the
Guarantor shall indemnify the Collateral Agent in respect of the
due payment of such amount.
11. This
Guarantee is in addition to and not in substitution for any other
guarantee by any other Person(s), at any time held by the
Collateral Agent, and any present or future obligation to the
Collateral Agent incurred or arising otherwise than under a
guarantee provided by the Guarantor or of any other obligant,
whether bound with or apart from the Borrowers.
12. The
Guarantor will be bound by any account settled between the
Collateral Agent and the Borrowers, and if no such account has been
so settled any account stated by the Collateral Agent will be
accepted by the Guarantor as prima facie evidence of the amount
which at the date of the account so stated is due by the Borrowers
to the Collateral Agent, the Beneficiaries or any of them, or
remains unpaid by the Borrowers to the Collateral Agent, the
Beneficiaries or any of them, in the absence of manifest
error.
13. The
Guarantor will not at any time claim to be subrogated in any manner
to the rights and position of the Collateral Agent and will not
claim the benefit of any security at any time held by the
Collateral Agent until the Collateral Agent has received
irrevocable and unconditional payment in full in cash of all
monies, interest and other amounts due to the Collateral Agent, the
Beneficiaries or any of them, under or relating to the Guaranteed
Obligations.
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14. The
Collateral Agent, the Beneficiaries or any of them, will not be
bound to exhaust their recourse against the Borrowers or any other
Person or Persons or the security or other securities they may
hold, before requiring payment by the Guarantor, and the Collateral
Agent, the Beneficiaries or any of them, may enforce the various
remedies available to them and may realize upon the various
security or any part of such security in such order as they may
determine.
15. No
suit based upon this Guarantee shall be instituted until demand for
payment has been made, and demand for payment shall be deemed to
have been effectively made upon the Guarantor by delivery of
written demand from the Collateral Agent to the Guarantor at the
address of the Guarantor set out on the signature page of this
Guarantee or as last provided to the Collateral Agent in writing by
the Guarantor. Moreover, when demand for payment has been made by
the
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