Exhibit 10.13
GUARANTY
dated as of March 26,
2008
among
SBARRO HOLDINGS,
LLC,
and
THE SUBSIDIARY GUARANTORS FROM
TIME TO TIME PARTY HERETO,
and
NATIXIS, NEW YORK
BRANCH,
as Administrative
Agent
TABLE OF CONTENTS
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Page
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ARTICLE I
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GUARANTY
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SECTION 1.01
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THE
GUARANTY
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1
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SECTION 1.02
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GUARANTY
ABSOLUTE
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2
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SECTION 1.03
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PAYMENTS
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4
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SECTION 1.04
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DISCHARGE;
REINSTATEMENT IN CERTAIN CIRCUMSTANCES
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5
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SECTION 1.05
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WAIVER BY
THE GUARANTORS
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5
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SECTION 1.06
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AGREEMENT TO
PAY; SUBORDINATION OF SUBROGATION CLAIMS
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8
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SECTION 1.07
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STAY OF
ACCELERATION
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9
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SECTION 1.08
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NO
SET-OFF
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9
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ARTICLE II
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INDEMNIFICATION, SUBROGATION AND
CONTRIBUTION
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SECTION 2.01
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INDEMNITY
AND SUBROGATION
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9
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SECTION 2.02
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CONTRIBUTION
AND SUBROGATION
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10
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ARTICLE III
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REPRESENTATIONS, WARRANTIES AND
COVENANTS
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SECTION 3.01
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REPRESENTATIONS AND WARRANTIES; CERTAIN
AGREEMENTS
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10
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SECTION 3.02
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INFORMATION
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11
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SECTION 3.03
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SUBORDINATION BY GUARANTORS
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11
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ARTICLE IV
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[INTENTIONALLY
OMITTED]
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ARTICLE V
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MISCELLANEOUS
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SECTION 5.01
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NOTICES
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11
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SECTION 5.02
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BENEFIT OF
AGREEMENT
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12
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SECTION 5.03
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NO WAIVERS;
NON-EXCLUSIVE REMEDIES
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12
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SECTION 5.04
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EXPENSES;
INDEMNIFICATION
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12
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SECTION 5.05
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ENFORCEMENT
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13
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SECTION 5.06
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AMENDMENTS
AND WAIVERS
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13
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SECTION 5.07
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GOVERNING
LAW; SUBMISSION TO JURISDICTION
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13
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SECTION 5.08
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LIMITATION
OF LAW; SEVERABILITY
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14
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SECTION 5.09
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COUNTERPARTS; INTEGRATION;
EFFECTIVENESS
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15
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SECTION 5.10
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WAIVER OF
JURY TRIAL
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15
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Page
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SECTION 5.11
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ADDITIONAL
GUARANTORS
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15
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SECTION 5.12
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TERMINATION;
RELEASE OF GUARANTORS
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15
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SECTION 5.13
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CONFLICT
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16
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-ii-
GUARANTY dated as of March 26, 2008 (as amended,
restated, modified or supplemented from time to time, this “
Agreement ”) among SBARRO HOLDINGS, LLC, a Delaware
limited liability company (“ Holdings ”), the
Subsidiary Guarantors from time to time party hereto (the “
Subsidiary Guarantors ” and, together with Holdings,
the “ Guarantors ”) and Natixis, New York
Branch, as Administrative Agent for the benefit of the Credit
Parties referred to herein.
Holdings and Sbarro, Inc., a New
York corporation (the “ Borrower ”), propose to
enter into a second lien credit agreement dated as of
March 26, 2009 (as amended, restated, modified, supplemented,
restructured or refinanced from time to time, the “ Credit
Agreement ”) among Holdings, the Borrower, the banks and
other lending institutions from time to time party thereto (each a
“ Lender ” and, collectively, the “
Lenders ”), and Natixis, New York Branch, as
Administrative Agent and Collateral Agent. Capitalized terms used
but not defined herein shall have the meanings assigned thereto in
the Credit Agreement.
The Lenders, the Administrative
Agent and the Collateral Agent and their respective successors and
assigns, are herein referred to individually as a “ Credit
Party ” and collectively as the “ Credit
Parties ”.
To induce the Credit Parties to
enter into the Credit Agreement and the other Loan Documents
referred to therein (collectively with the Credit Agreement, the
“ Loan Documents ”), and as a condition
precedent to the obligations of the Credit Parties under the Credit
Agreement, Holdings and each of the Subsidiaries of the Borrower
which shall become parties hereto from time to time in accordance
with Section 5.11 (each a “ Subsidiary
Guarantor ” and, collectively, the “ Subsidiary
Guarantors ” and, together with Holdings, the “
Guarantors ”), have agreed, jointly and severally, to
provide a guaranty of all obligations of Holdings, the Borrower and
the other Loan Parties under and in respect of the Loan Documents.
Holdings, the Borrower and the Subsidiary Guarantors are referred
to herein individually as a “ Loan Party ” and,
collectively, as the “ Loan Parties ”). As used
herein, “ Other Loan Parties ” means, with
respect to any Guarantor, any and all of the Loan Parties other
than such Guarantor.
Holdings, and the Subsidiary
Guarantors will receive not insubstantial benefits from the
financial accommodation to be provided by the Credit Parties under
the Loan Documents. Accordingly, the Guarantors hereby agree with
the Administrative Agent for the benefit of the Credit Parties as
follows:
ARTICLE I
GUARANTY
Section 1.01
The Guaranty . Each
Guarantor unconditionally guarantees, jointly with the other
Guarantors, and severally, as a primary obligor and not merely as a
surety: (x) the due and punctual payment of all Second Lien
Credit Obligations of the Borrower whether now or hereafter due,
owing or incurred in any manner, whether actual or contingent,
whether incurred solely or jointly with any other Person and
whether as principal or surety (and including all liabilities in
connection with any notes, bills or other instruments accepted by
any Credit Party in connection therewith), together in each case
with all renewals, modifications, consolidations or extensions
thereof, and (y) the due and punctual performance of all
covenants, agreements,
obligations and liabilities of Holdings, the
Borrower and the Other Loan Parties under or pursuant to the Loan
Documents (all such monetary and other obligations being herein
collectively referred to as the “ Guaranteed
Obligations ”).
Anything contained in this Agreement
to the contrary notwithstanding, the obligations of each Subsidiary
Guarantor hereunder shall be limited to a maximum aggregate amount
equal to the greatest amount that would not render such Subsidiary
Guarantor’s obligations hereunder subject to avoidance as a
fraudulent transfer or conveyance under Section 548 of Title
11 of the United States Code or any provisions of applicable state
law (collectively, the “ Fraudulent Transfer Laws
”), in each case after giving effect to all other liabilities
of such Subsidiary Guarantor, contingent or otherwise, that are
relevant under the Fraudulent Transfer Laws (specifically
excluding, however, any liabilities of such Subsidiary Guarantor
(i) in respect of intercompany indebtedness to the Borrower or
any of its Affiliates to the extent that such indebtedness
(A) would be discharged or would be subject to a right of
set-off in an amount equal to the amount paid by such Subsidiary
Guarantor hereunder or (B) has been pledged to, and is
enforceable by, the Collateral Agent on behalf of the Credit
Parties and (ii) under any guaranty of Indebtedness
subordinated in right of payment to the Guaranteed Obligations
which guaranty contains a limitation as to a maximum amount similar
to that set forth in this paragraph pursuant to which the liability
of such Subsidiary Guarantor hereunder is included in the
liabilities taken into account in determining such maximum amount)
and after giving effect as assets of such Subsidiary Guarantor to
the value (as determined under the applicable provisions of the
Fraudulent Transfer Laws) of any rights to subrogation,
contribution, reimbursement, indemnity or similar rights of such
Subsidiary Guarantor pursuant to (i) applicable Law or
(ii) any agreement providing for an equitable allocation among
such Subsidiary Guarantor and other Affiliates of the Borrower of
obligations arising under guaranties by such parties (including the
agreements in Article II of this Agreement). If any
Subsidiary Guarantor’s liability hereunder is limited
pursuant to this paragraph to an amount that is less than the total
amount of the Guaranteed Obligations, then it is understood and
agreed that the portion of the Guaranteed Obligations for which
such Subsidiary Guarantor is liable hereunder shall be the last
portion of the Guaranteed Obligations to be repaid.
Section 1.02 Guaranty
Absolute . Each
Guarantor guarantees that the Guaranteed Obligations will be paid
strictly in accordance with the terms of the Loan Documents,
including the Intercreditor Agreement, regardless of any Law now or
hereafter in effect in any jurisdiction affecting any of such terms
or the rights of the Credit Parties with respect thereto. The
obligations of the Guarantors under this Agreement are independent
of the Guaranteed Obligations, and a separate action or actions may
be brought and prosecuted against each Guarantor to enforce this
Agreement, irrespective of whether any action is brought against
the Borrower or any Other Loan Party or whether the Borrower or any
Other Loan Party is joined in any such action or actions. This
Agreement is an absolute and unconditional guaranty of payment when
due, and not of collection, by each Guarantor, jointly and
severally with each other Guarantor of the Guaranteed Obligations
in each and every particular. The obligations of each Guarantor
hereunder are several from those of the Other Loan Parties and are
primary obligations concerning which each Guarantor is the
principal obligor. The Credit Parties shall not be required to
mitigate damages or take any action to reduce, collect or enforce
the Guaranteed Obligations.
The obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason, including the existence
of any claim, set-off
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or other right which any Guarantor may have at
any time against any Other Loan Party, any Agent or other Credit
Party or any other Person, whether in connection herewith or any
unrelated transactions. Without limiting the generality of the
foregoing, each Guarantor’s liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and
would be owed by any Other Loan Party to any Credit Party under the
Loan Documents but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving the Borrower or such Other Loan
Party.
Without limiting the generality of
the foregoing, the obligations of each Guarantor hereunder shall
not be released, discharged or otherwise affected or impaired
by:
(i) any extension, renewal,
settlement, compromise, acceleration, waiver or release in respect
of any obligation of any Other Loan Party under the Credit
Agreement, the Notes, any other Loan Document or any other
agreement or instrument evidencing or securing any Guaranteed
Obligation, by operation of Law or otherwise;
(ii) any change in the manner,
place, time or terms of payment of any Guaranteed Obligation or any
other amendment, supplement or modification to the Credit
Agreement, the Notes, any other Loan Document or any other
agreement or instrument evidencing or securing any Guaranteed
Obligation;
(iii) any release, non-perfection or
invalidity of any direct or indirect security for any Guaranteed
Obligation, any sale, exchange, surrender, realization upon, offset
against or other action in respect of any direct or indirect
security for any Guaranteed Obligation or any release of any Other
Loan Party or any other guarantor or guarantors of any Guaranteed
Obligation;
(iv) any change in the existence,
structure or ownership of any Other Loan Party or any insolvency,
bankruptcy, reorganization, arrangement, readjustment, composition,
liquidation or other similar proceeding affecting any Other Loan
Party or its assets or any resulting disallowance, release or
discharge of all or any portion of any Guaranteed
Obligation;
(v) the existence of any claim,
set-off or other right which any Guarantor may have at any time
against any Other Loan Party, any Agent, any other Credit Party or
any other Person, whether in connection herewith or any unrelated
transaction; provided that nothing herein shall prevent the
assertion of any such claim by separate suit or compulsory
counterclaim;
(vi) any invalidity or
unenforceability relating to or against any Other Loan Party for
any reason of the Credit Agreement, any Note, any other Loan
Document or any other agreement or instrument evidencing or
securing any Guaranteed Obligation or any provision of applicable
Law purporting to prohibit the payment by any Other Loan Party of
any Guaranteed Obligation;
(vii) any failure by any Agent or
any other Credit Party: (A) to file or enforce a claim against
any Other Loan Party or its estate (in a bankruptcy or other
proceeding); (B) to give notice of the existence, creation or
incurrence by any Other Loan
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Party of any new or additional
indebtedness or obligation under or with respect to the Guaranteed
Obligations; (C) to commence any action against any Other Loan
Party; (D) to disclose to any Guarantor any facts which such
Agent or such other Credit Party may now or hereafter know with
regard to any Other Loan Party; or (E) to proceed with due
diligence in the collection, protection or realization upon any
collateral securing the Guaranteed Obligations;
(viii) any direction as to
application of payment by any other Loan Party or any other
Person;
(ix) any subordination by any Credit
Party of the payment of any Guaranteed Obligation to the payment of
any other liability (whether matured or unmatured) of any Other
Loan Party to its creditors;
(x) any act or failure to act by the
Administrative Agent, any other Credit Party under this Agreement
or otherwise which may deprive any Guarantor of any right to
subrogation, contribution or reimbursement against any Other Loan
Party or any right to recover full indemnity for any payments made
by such Guarantor in respect of the Guaranteed Obligations;
or
(xi) any other act or omission to
act or delay of any kind any Other Loan Party, the Administrative
Agent or any Credit Party or any other Person or any other
circumstance whatsoever which might, but for the provisions of this
clause, constitute a legal or equitable discharge of any
Guarantor’s obligations hereunder (except that a Guarantor
may assert the defense of final payment in full of the Guaranteed
Obligations).
Each Guarantor irrevocably and
unconditionally has delivered this Agreement to the Administrative
Agent for the benefit of the Credit Parties, and the failure by any
Other Loan Party or any other Person to sign this Agreement or a
guaranty similar to this Agreement or otherwise shall not discharge
the obligations of any Guarantor hereunder. The irrevocable and
unconditional liability of each Guarantor hereunder applies whether
it is jointly and severally liable for the entire amount of the
Guaranteed Obligations, or only for a pro-rata portion, and without
regard to any rights (or the impairment thereof) of subrogation,
contribution or reimbursement that such Guarantor may now or
hereafter have against any Other Loan Party or any other Person.
This Agreement is and shall remain fully enforceable against each
Guarantor irrespective of any defenses that any Other Loan Party
may have or assert in respect of the Guaranteed Obligations,
including, without limitation, failure of consideration, breach of
warranty, payment, statute of frauds, statute of limitations,
accord and satisfaction and usury, except that a Guarantor may
assert the defense of final payment in full of the Guaranteed
Obligations.
Section 1.03
Payments .
(a) Payments to be Made Upon
Default . If the Borrower or any Other Loan Party fails to
pay or perform any Guaranteed Obligation when due in accordance
with its terms (whether at stated maturity, by acceleration or
otherwise) or if any Event of Default specified in
Section 8.01(f ) of the Credit Agreement occurs with
respect to the Borrower, the Guarantors shall, in accordance with
the terms of the Intercreditor Agreement and forthwith on demand of
the Administrative Agent, pay the aggregate amount of all
Guaranteed Obligations owed respectively to the Administrative
Agent.
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(b) General Provisions as to
Payments . Each payment hereunder shall be made without
set-off, counterclaim or other deduction, in Federal or other funds
immediately available in New York City, to the Administrative Agent
at the addresses referred to in Section 5.01 (it being
understood that a Guarantor may assert the defense of final payment
in full of the Guaranteed Obligations).
(c) Application of
Payments . All payments received by the Administrative
Agent hereunder shall be applied as provided in
Section 8.03 of the Credit Agreement.
Section 1.04
Discharge; Reinstatement in
Certain Circumstances . Each Guarantor’s obligations
hereunder shall remain in full force and effect until (i) the
principal of and interest (including interest accruing on or after
the commencement of Insolvency or Liquidation Proceeding, whether
or not a claim for such interest is, or would be, allowed in such
Insolvency or Liquidation Proceeding) and premium, if any, on all
Indebtedness outstanding under the Loan Documents and termination
of all commitments to lend or otherwise extend credit under the
Loan Documents, (ii) payment in full of all other Second Lien
Credit Obligations that are due and payable or otherwise accrued
and owing at or prior to the time such principal and interest are
paid (including legal fees and other expenses, costs or charges
accruing on or after the commencement of any Insolvency or
Liquidation Proceeding, whether or not a claim for such fees,
expenses, costs or charges is, or would be, allowed in such
Insolvency or Liquidation Proceeding but excluding contingent
indemnification obligations), (the occurrence of all of the
foregoing subclauses (i) and (ii) being referred to
herein as “ Discharge of Second Lien Credit
Obligations ”) and (iii) such time as such Guarantor
is no longer required to be a Guarantor under the Credit Agreement.
No payment or payments made by the Borrower, any Other Loan Party
or any other Person or received or collected by any Credit Party
from the Borrower, any Other Loan Party or any other Person by
virtue of any action or proceeding or any set-off or appropriation
or application at any time or from time to time in reduction of or
in payment of the Guaranteed Obligations shall be deemed to modify,
reduce, release or otherwise affect the liability of any Guarantor
hereunder, it being understood that each Guarantor shall,
notwithstanding any such payment or payments, remain liable for the
Guaranteed Obligations until Discharge of Second Lien Credit
Obligations. If at any time any payment by the Borrower, any Other
Loan Party or any other Person of any Guaranteed Obligation is
rescinded or must otherwise be restored or returned upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization
of the Borrower or such Other Loan Party or other Person or upon or
as a result of the appointment of a receiver, intervener or
conservator of, or trustee or similar officer for, the Borrower or
such Other Loan Party or other Person or any substantial part of
its respective property or otherwise, each Guarantor’s
obligations hereunder with respect to such payment shall be
reinstated as though such payment had been due but not made at such
time. Each Guarantor agrees that payment or performance of any of
the Guaranteed Obligations or other acts which toll any statute of
limitations applicable to the Guaranteed Obligations shall also
toll the statute of limitations applicable to each
Guarantor’s liability hereunder.
Section 1.05
Waiver by the
Guarantors . Each Guarantor hereby waives, only to the
extent permitted by applicable Law, presentment to, demand of
payment from and
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protest to the Other Loan Parties of any of the
Guaranteed Obligations, and also waives to the extent permitted by
applicable Law, promptness, diligence, notice of acceptance of its
guarantee, any other notice with respect to any of the Guaranteed
Obligations and this Agreement and any requirement that any Agent
or any other Credit Party protect, secure, perfect or insure any
Lien or any property subject thereto. Each Guarantor further waives
to the extent permitted by applicable Law, any right to require
that resort be had by any Agent or any other Credit Party to any
security held for payment of the Guaranteed Obligations or to any
balance of any deposit, account or credit on the books of any Agent
or any other Credit Party in favor of any Loan Party or any other
Person. Each Guarantor hereby consents and agrees to each of the
following to the fullest extent permitted by Law, and agrees that
such Guarantor’s obligations under this Agreement shall not
be released, diminished, impaired, reduced or adversely affected by
any of the following, and waives to the extent permitted by
applicable Law, any rights (including rights to notice) which such
Guarantor might otherwise have as a result of or in connection with
any of the following:
(i) any renewal, extension,
modification, increase, decrease, alteration or rearrangement of
all or any part of the Guaranteed Obligations or any instrument
executed in connection therewith, or any contract or understanding
with any Other Loan Party, any Agent, the other Credit Parties, or
any of them, or any other Person, pertaining to the Guaranteed
Obligations;
(ii) any adjustment, indulgence,
forbearance or compromise that might be granted or given by any
Agent or any other Credit Party to any Other Loan Party or any
other Person liable on the Guaranteed Obligations; or the failure
of any Agent or any other Credit Party to assert any claim or
demand or to exercise any right or remedy against any Other Loan
Party under the provisions of any Loan Document or otherwise; or
any rescission, waiver, amendment or modification of, or any
release from any of the terms or provisions of, any Loan Document
or any other agreement, including with respect to any Other Loan
Party under this Agreement;
(iii) the insolvency, bankruptcy,
arrangement, adjustment, composition, liquidation, disability,
dissolution or lack of power of any Other Loan Party or any other
Person at any time liable for the payment of all or part of the
Guaranteed Obligations; or any dissolution of any Other Loan Party,
or any change, restructuring or termination of the corporate
structure or existence of any Other Loan Party, or any sale, lease
or transfer of any or all of the assets of any Other Loan Party, or
any change in the shareholders, partners, or members of any Other
Loan Party; or any default, failure or delay, willful or otherwise,
in the performance of the Guaranteed Obligations;
(iv) the invalidity, illegality or
unenforceability of all or any part of the Guaranteed Obligations,
or any document or agreement executed in connection with the
Guaranteed Obligations, for any reason whatsoever, including the
fact that the Guaranteed Obligations, or any part thereof, exceed
the amount permitted by Law, the act of creating the Guaranteed
Obligations or any part thereof is ultra vires , the
officers or representatives executing the documents or otherwise
creating the Guaranteed Obligations acted in excess of their
authority, the Guaranteed Obligations violate applicable usury
Laws, any Other Loan Party has valid defenses, claims or offsets
(whether at Law, in equity
-6-
or by agreement) which render the
Guaranteed Obligations wholly or partially uncollectible from such
Other Loan Party, the creation, performance or repayment of the
Guaranteed Obligations (or the execution, delivery and performance
of any document or instrument representing part of the Guaranteed
Obligations or executed in connection with the Guaranteed
Obligations or given to secure the repayment of the Guaranteed
Obligations) is illegal, uncollectible, legally impossible or
unenforceable, or the documents or instruments pertaining to the
Guaranteed Obligations have been forged or otherwise are irregular
or not genuine or authentic;
(v) any full or partial release of
the liability of any Other Loan Party or of any other Person now or
hereafter liable, whether directly or indirectly, jointly,
severally, or jointly and severally, to pay, perform, guarantee or
assure the payment of the Guaranteed Obligations or any part
thereof, it being recognized, acknowledged and agreed by each
Guarantor that such Guarantor may be required to pay the Guaranteed
Obligations in full without assistance or support of any other
Person, and such Guarantor has not been induced to enter into this
Agreement on the basis of a contemplation, belief, understanding or
agreement that any party other than the Borrower will be liable to
perform the Guaranteed Obligations, or that the Credit Parties will
look to any other party to perform the Guaranteed
Obligations;
(vi) the taking or accepting of any
other security, collateral or guarantee, or other assurance of
payment, for all or any part of the Guaranteed
Obligations;
(vii) any release, surrender,
exchange, subordination, deterioration, waste, loss or impairment
(including negligent, willful, unreasonable or unjustifiable
impairment) of any collateral, property or security, at any time
existing in connection with, or assuring or securing payment of,
all or any part of the Guaranteed Obligations;
(viii) any right that any Guarantor
may now or hereafter have under Section 3-606 of the UCC or
otherwise to unimpaired collateral;
(ix) the failure of any Agent, any
other Credit Party or any other Person to exercise diligence or
reasonable care in the preservation, protection, enforcement, sale
or other handling or treatment of all or any part of such
collateral, property or security;
(x) the fact that any collateral,
security, security interest or lien contemplated or intended to be
given, created or granted as security for the repayment of the
Guaranteed Obligations shall not be properly perfected or created,
or shall prove to be unenforceable or subordinate to any other
security interest or lien, it being recognized and agreed by each
Guarantor that such Guarantor is not entering into this Agreement
in reliance on, or in contemplation of the benefits of, the
validity, enforceability, collectibility or value of any of the
Collateral;
(xi) any payment by any Other Loan
Party to the Administrative Agent, any other Agent or any other
Credit Party being held to constitute a preference under Title 11
of the United States Code or any similar Federal, foreign or state
Law, or for any reason any Agent or any other Credit Party being
required to refund such payment or pay such amount to any Other
Loan Party or someone else;
-7-
(xii) any other action taken or
omitted to be taken with respect to the Guaranteed Obligations, or
the security and collateral therefor, whether or not such action or
omission prejudices any Guarantor or increases the likelihood that
any Guarantor will be required to pay the Guaranteed Obligations
pursuant to the terms hereof, it being the unambiguous and
unequivocal intention of each Guarantor that such Guarantor shall
be obligated to pay the Guaranteed Obligations when due, subject to
the terms of the Intercreditor Agreement, notwithstanding any
occurrence, circumstance, event, action or omission whatsoever,
whether or not contemplated, and whether or not otherwise or
particularly described herein, except for the full payment and
satisfaction of the Guaranteed Obligations in cash;
(xiii) the fact that all or any of
the Guaranteed Obligations cease to exist by operation of Law,
including by way of a discharge, limitation or tolling thereof
under applicable bankruptcy Laws;
(xiv) the existence of any claim,
set-off or other right which any Guarantor may have at any time
against any Other Loan Party, the Administrative Agent, any other
Credit Party or any other Person, whether in connection herewith or
any unrelated transactions; provided that nothing herein
shall prevent the assertion of any such claim by separate suit or
compulsory counterclaim; and
(xv) any other circumstance that
might in any manner or to any extent otherwise constitute a defense
available to, vary the risk of, or operate as a discharge of, such
Guarantor as a matter of Law or equity (it being understood that a
Guarantor may assert the defense of final payment in full of the
Guaranteed Obligations).
All waivers herein contained shall
be without prejudice to the right of the Administrative Agent at
its option to proceed against any Loan Party or any other Person,
whether by separate action or by joinder.
Section 1.06
Agreement to Pay;
Subordination of Subrogation Claims . In furtherance of the
foregoing and not in limitation of any other right that the
Administrative Agent, any other Agent or any other Credit Party has
at Law or in equity against any Guarantor by virtue hereof, upon
the failure of any Other Loan Party to pay any Guaranteed
Obligation when and as the same shall become due, whether at
maturity, by acceleration, after notice of prepayment or otherwise,
subject to the terms of the Intercreditor Agreement, each Guarantor
hereby promises to and will forthwith pay, or cause to be paid, to
the Administrative Agent, such other Credit Party as designated
thereby in cash the amount of such unpaid Guaranteed Obligations.
Upon payment by any Guarantor of any sums to the Administrative
Agent or any Credit Party as provided above, all rights of such
Guarantor against any Other Loan Party arising as a result thereof
by way of right of subrogation, contribution, reimbursement,
indemnity or otherwise shall (including, without limitation, in the
case of any Guarantor, any rights of such Guarantor arising under
Article II of this Agreement) in all respects be
subordin