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U.S. GUARANTY

Guarantee Agreement

U.S. GUARANTY | Document Parties: PLY GEM HOLDINGS INC | PLY GEM INDUSTRIES, INC You are currently viewing:
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PLY GEM HOLDINGS INC | PLY GEM INDUSTRIES, INC

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Title: U.S. GUARANTY
Governing Law: New York     Date: 8/11/2008

U.S. GUARANTY, Parties: ply gem holdings inc , ply gem industries  inc
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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

 

SECTION 1.01.

Guarantee

1

SECTION 1.02.

Guarantee of Payment

2

SECTION 1.03.

No Limitations, Etc

2

SECTION 1.04.

Reinstatement

3

SECTION 1.05

Agreement To Pay; Subrogation

3

SECTION 1.06.

Information

3

 

 

ARTICLE II

 

 

 

Indemnity, Subrogation and Subordination

 

SECTION 2.01

Indemnity and Subrogation

3

SECTION 2.02

Contribution and Subrogation

4

SECTION 2.03

Subordination

4

 

 

ARTICLE III

 

 

 

Miscellaneous

 

SECTION 3.01

Notices

4

SECTION 3.02.

Survival of Agreement

5

SECTION 3.03

Binding Effect; Several Agreement

5

SECTION 3.04

Successors and Assigns

5

SECTION 3.05

Collateral Agent’s Fees and Expenses; Indemnification

5

SECTION 3.06

Applicable Law

6

SECTION 3.07

Waivers; Amendment

6

SECTION 3.08

WAIVER OF JURY TRIAL

7

SECTION 3.09

.Severability

7

SECTION 3.10

Counterparts

7

SECTION 3.11

Headings

7

SECTION 3.12

Jurisdiction; Consent to Service of Process

7

SECTION 3.13

. Termination or Release

8

SECTION 3.14

Additional Subsidiaries

9

SECTION 3.15.

Right of Setoff

9

 

 

 


 

 

 

 

Schedules

 

Schedule I

Subsidiary Guarantors

 

 

Exhibits

 

Exhibt A

Form of Supplement

 

 

 

-ii-


 

 

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

 

 

 

-2-


 

 

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

 

 

 

-3-


 

 

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.

 

 

 

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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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