EXECUTION VERSION
U.S. GUARANTY
dated as of
June 9, 2008
among
PLY GEM INDUSTRIES, INC.,
PLY GEM HOLDINGS, INC.,
the Subsidiaries of the Specified
U.S. Borrower
from time to time party
hereto
and
GENERAL ELECTRIC CAPITAL
CORPORATION,
as Collateral Agent
TABLE OF CONTENTS
Page
ARTICLE I
Guarantee
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SECTION
1.01.
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Guarantee
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1
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SECTION
1.02.
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Guarantee of
Payment
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2
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SECTION
1.03.
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No Limitations,
Etc
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2
|
|
SECTION
1.04.
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Reinstatement
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3
|
|
SECTION
1.05
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Agreement To
Pay; Subrogation
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3
|
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SECTION
1.06.
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Information
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3
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ARTICLE II
Indemnity, Subrogation and
Subordination
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SECTION
2.01
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Indemnity and
Subrogation
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3
|
|
SECTION
2.02
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Contribution
and Subrogation
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4
|
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SECTION
2.03
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Subordination
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4
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ARTICLE III
Miscellaneous
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SECTION
3.01
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Notices
|
4
|
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SECTION
3.02.
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Survival of
Agreement
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5
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SECTION
3.03
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Binding Effect;
Several Agreement
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5
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SECTION
3.04
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Successors and
Assigns
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5
|
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SECTION
3.05
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Collateral
Agent’s Fees and Expenses; Indemnification
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5
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SECTION
3.06
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Applicable
Law
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6
|
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SECTION
3.07
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Waivers;
Amendment
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6
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SECTION
3.08
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WAIVER OF JURY
TRIAL
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7
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SECTION
3.09
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.Severability
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7
|
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SECTION
3.10
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Counterparts
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7
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SECTION
3.11
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Headings
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7
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SECTION
3.12
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Jurisdiction;
Consent to Service of Process
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7
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SECTION
3.13
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. Termination
or Release
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8
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SECTION
3.14
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Additional
Subsidiaries
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9
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SECTION
3.15.
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Right of
Setoff
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9
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Schedules
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|
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Schedule
I
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Subsidiary
Guarantors
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|
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Exhibits
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Exhibt
A
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Form of
Supplement
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U.S. GUARANTY dated as of June 9, 2008 (this
“ Guaranty ”), among PLY GEM INDUSTRIES,
INC., a Delaware corporation (the “ Specified U.S.
Borrower ”), PLY GEM HOLDINGS, INC., a Delaware
corporation (“ Holdings ”), the
Subsidiaries of the Specified U.S. Borrower listed on Schedule I
hereto (the “ Subsidiary Guarantors ”)
(the Specified U.S. Borrower, Holdings, and the Subsidiary
Guarantors being, collectively, the “
Guarantors ” and, individually, each a “
Guarantor ”) and GENERAL ELECTRIC CAPITAL
CORPORATION, as collateral agent (in such capacity, the “
Collateral Agent ”).
PRELIMINARY
STATEMENT
Reference is made to the Credit Agreement dated
as of June 9, 2008 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”
), among the Specified U.S. Borrower, Holdings, CWD Windows and
Doors, Inc., the lenders from time to time party thereto (the
“ Lenders ”), the Collateral Agent and
Credit Suisse, as administrative agent (in such capacity, the
“ Administrative Agent
”). Capitalized terms used in this Guaranty and
not otherwise defined herein have the meanings set forth in the
Credit Agreement.
The Lenders and the L/C Issuers have agreed to
extend credit to the Borrowers pursuant to, and upon the terms and
conditions specified in, the Credit Agreement. The
obligations of the Lenders and the L/C Issuers to extend credit to
the Borrowers, the Hedge Banks to enter into Secured Hedge
Agreements and the Cash Management Banks to enter into Secured Cash
Management Agreements, are conditioned upon, among other things,
the execution and delivery of this Guaranty by the Borrowers and
each Guarantor. Each Guarantor is an affiliate of each
Borrower, will derive substantial benefits from the extension of
credit to the Borrowers pursuant to the Credit Agreement and is
willing to execute and deliver this Guaranty in order to induce the
Lenders and the L/C Issuers to extend such credit and the Hedge
Banks and the Cash Management Banks to enter into Secured Hedge
Agreements and Secured Cash Management
Agreements. Accordingly, the parties hereto agree as
follows:
ARTICLE I
Guarantee
SECTION 1.01.
Guarantee. Each Guarantor unconditionally
guarantees, jointly with the other Guarantors and severally, as a
primary obligor and not merely as a surety, the due and punctual
payment and performance of the Obligations. Each
Guarantor further agrees that the Obligations may be extended or
renewed, in whole or in part, without notice to or further assent
from it, and that it will remain bound upon its
guarantee
notwithstanding any extension or renewal of any
Obligation. Each Guarantor waives presentment to, demand
of payment from and protest to any Borrower or any other Loan Party
of any Obligation, and also waives notice of acceptance of its
guarantee and notice of protest for nonpayment.
SECTION 1.02. Guarantee of
Payment. Each Guarantor further agrees that its
guarantee hereunder constitutes a guarantee of payment when due and
not of collection, and waives any right to require that any resort
be had by the Collateral Agent or any other Secured Party to any
security held for the payment of the Obligations or to any balance
of any Deposit Account or credit on the books of the Collateral
Agent or any other Secured Party in favor of any Borrower or any
other person.
SECTION 1.03. No
Limitations, Etc. (a) Except for
termination of a Guarantor’s obligations hereunder as
expressly provided in Section 3.13, the obligations of each
Guarantor hereunder shall not be subject to any reduction,
limitation, impairment or termination for any reason, including any
claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity,
illegality or unenforceability of the Obligations or
otherwise. Without limiting the generality of the
foregoing, the obligations of each Guarantor hereunder shall not be
discharged or impaired or otherwise affected by (i) the
failure of the Collateral Agent or any other Secured Party to
assert any claim or demand or to enforce any right or remedy under
the provisions of any Loan Document or otherwise, (ii) 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 Guarantor
under this Guaranty, (iii) the release of, or any impairment
of or failure to perfect any Lien on or security interest in, any
security held by the Collateral Agent or any other
Secured Party for the Obligations or any of them, (iv) any
default, failure or delay, wilful or otherwise, in the performance
of the Obligations, or (v) any other act or omission that may
or might in any manner or to any extent vary the risk of any
Guarantor or otherwise operate as a discharge of any Guarantor as a
matter of law or equity (other than the indefeasible payment in
full in cash of all the Obligations). Each Guarantor
expressly authorizes the Collateral Agent to take and hold security
for the payment and performance of the Obligations, to exchange,
waive or release any or all such security (with or without
consideration), to enforce or apply such security and direct the
order and manner of any sale thereof in its sole discretion or to
release or substitute any one or more other guarantors or obligors
upon or in respect of the Obligations, all without affecting the
obligations of any Guarantor hereunder.
(b) To the fullest extent permitted by
applicable law, each Guarantor waives any defense based on or
arising out of any defense of any Borrower or any other Loan Party
or the unenforceability of the Obligations or any part thereof from
any cause, or the cessation from any cause of the liability of any
Borrower or any other Loan Party, other than the indefeasible
payment in full in cash of all the Obligations. The
Collateral Agent and the other Secured Parties may, at their
election, foreclose on any security held by one or more of them by
one or more judicial or nonjudicial sales, accept an assignment of
any such security in lieu of foreclosure, compromise or adjust any
part of
the
Obligations, make any other accommodation with any Borrower or any
other Loan Party or exercise any other right or remedy available to
them against any Borrower or any other Loan Party, without
affecting or impairing in any way the liability of any Guarantor
hereunder except to the extent the Obligations have been fully and
indefeasibly paid in full in cash. To the fullest extent
permitted by applicable law, each Guarantor waives any defense
arising out of any such election even though such election
operates, pursuant to applicable law, to impair or to extinguish
any right of reimbursement or subrogation or other right or remedy
of such Guarantor against any Borrower or any other Loan Party, as
the case may be, or any security.
SECTION 1.04.
Reinstatement. Each Guarantor agrees that
its guarantee hereunder shall continue to be effective or be
reinstated, as the case may be, if at any time payment, or any part
thereof, of any Obligation is rescinded or must otherwise be
restored by the Collateral Agent or any other Secured Party upon
the bankruptcy or reorganization of any Borrower, any other Loan
Party or otherwise.
SECTION 1.05. Agreement To
Pay; Subrogation. In furtherance of the
foregoing and not in limitation of any other right that the
Collateral Agent or any other Secured Party has at law or in equity
against any Guarantor by virtue hereof, upon the failure of any
Borrower or any other Loan Party to pay any Obligation when and as
the same shall become due, whether at maturity, by acceleration,
after notice of prepayment or otherwise, each Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the
Collateral Agent for distribution to the applicable Secured Parties
in cash the amount of such unpaid Obligation. Upon
payment by any Guarantor of any sums to the Collateral Agent as
provided above, all rights of such Guarantor against any Borrower
or any other Guarantor arising as a result thereof by way of right
of subrogation, contribution, reimbursement, indemnity or otherwise
shall in all respects be subject to Article II.
SECTION 1.06.
Information. Each Guarantor assumes all
responsibility for being and keeping itself informed of each
Borrower’s and each other Loan Party’s financial
condition and assets and of all other circumstances bearing upon
the risk of nonpayment of the Obligations and the nature, scope and
extent of the risks that such Guarantor assumes and incurs
hereunder, and agrees that neither the Collateral Agent nor any
other Secured Party will have any duty to advise such Guarantor of
information known to it or any of them regarding such circumstances
or risks.
ARTICLE II
Indemnity, Subrogation and
Subordination
SECTION 2.01. Indemnity
and Subrogation. In addition to all such rights
of indemnity and subrogation as the Guarantors may have under
applicable law (but subject to Section 2.03), each Borrower agrees
that (a) in the event a payment shall be made by any Guarantor
under this Guaranty, the Borrowers shall indemnify such Guarantor
for the full amount of such payment and such Guarantor shall be
subrogated to
the rights of
the person to whom such payment shall have been made to the extent
of such payment and (b) in the event any assets of any
Guarantor shall be sold pursuant to this Guaranty or any other
Collateral Document to satisfy in whole or in part a claim of any
Secured Party, the Borrowers shall indemnify such Guarantor in an
amount equal to the greater of the book value or the fair market
value of the assets so sold.
SECTION 2.02. Contribution
and Subrogation. Each Guarantor (a “
Contributing Guarantor ”) agrees (subject to
Section 2.03) that, in the event a payment shall be made by
any other Guarantor hereunder in respect of any Obligation, or
assets of any other Guarantor shall be sold pursuant to any
Collateral Document to satisfy any Obligation owed to any Secured
Party, and such other Guarantor (the “ Claiming
Guarantor ”) shall not have been fully indemnified by
the Borrowers as provided in Section 2.01, the Contributing
Guarantor shall indemnify the Claiming Guarantor in an amount equal
to (i) the amount of such payment or (ii) the greater of
the book value or the fair market value of such assets, as the case
may be, in each case multiplied by a fraction of which the
numerator shall be the net worth of the Contributing Guarantor on
the date hereof and the denominator shall be the aggregate net
worth of all the Guarantors on the date hereof (or, in the case of
any Guarantor becoming a party hereto pursuant to
Section 3.14, the date of the supplement hereto executed and
delivered by such Guarantor). Any Contributing Guarantor
making any payment to a Claiming Guarantor pursuant to this
Section 2.02 shall be subrogated to the rights of such
Claiming Guarantor under Section 2.01 to the extent of such
payment.
SECTION 2.03.
Subordination. (a) Notwithstanding any
provision of this Guaranty to the contrary, all rights of the
Guarantors under Sections 2.01 and 2.02 and all other rights
of indemnity, contribution or subrogation under applicable law or
otherwise shall be fully subordinated to the indefeasible payment
in full in cash of the Obligations. No failure on the
part of any Borrower or any Guarantor to make the payments required
by Sections 2.01 and 2.02 (or any other payments required
under applicable law or otherwise) shall in any respect limit the
obligations and liabilities of any Guarantor with respect to its
obligations hereunder, and each Guarantor shall remain liable for
the full amount of its obligations hereunder.
(b) Each Borrower and
each Guarantor hereby agree that all Indebtedness and other
monetary obligations owed by it to any Borrower or any Subsidiary
shall be fully subordinated to the indefeasible payment in full in
cash of the Obligations.
ARTICLE III
Miscellaneous
SECTION 3.01.
Notices. All communications and notices
hereunder shall (except as otherwise expressly permitted herein) be
in writing and given as provided in Section 10.02 of the
Credit Agreement. All communications and notices
hereunder to any Subsidiary Guarantor shall be given to it in care
of Specified U.S. Borrower as provided in Section 10.02 of the
Credit Agreement.
SECTION 3.02. Survival of
Agreement. All covenants, agreements,
representations and warranties made by the Loan Parties in the Loan
Documents and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Guaranty or any
other Loan Document shall be considered to have been relied upon by
the Lenders and the L/C Issuers and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and
issuance of any Letters of Credit, regardless of any investigation
made by any Lender or L/C Issuer or on their behalf and
notwithstanding that the Collateral Agent, any L/C Issuer or any
Lender may have had notice or knowledge of any Default or incorrect
representation or
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