EXHIBIT 10.9
SECOND AMENDED AND RESTATED GUARANTY AGREEMENT
This SECOND AMENDED AND RESTATED GUARANTY AGREEMENT (this "Guaranty"),
dated as of January 8, 2004, is made by ALEXANDER CITY CASTING COMPANY, INC., a
corporation organized and existing under the laws of the State of Alabama,
CAST-MATIC CORPORATION, a corporation organized and existing under the laws of
the State of Michigan, COLUMBUS FOUNDRY L.P., a limited partnership organized
and existing under the laws of the State of Delaware, DIVERSIFIED DIEMAKERS,
INC., a corporation organized and existing under the laws of the State of
Delaware, GANTON TECHNOLOGIES INC., a corporation organized and existing under
the laws of the State of Illinois, INTERMET HOLDING COMPANY, a corporation
organized and existing under the laws of the State of Delaware, INTERMET
ILLINOIS, INC., formerly known as Xxxxxx P.M.C., Incorporated, a corporation
organized and existing under the laws of the State of Illinois, INTERMET
INTERNATIONAL, INC., a corporation organized and existing under the laws of the
State of Georgia, INTERMET U.S. HOLDING, INC., a corporation organized and
existing under the laws of the State of Delaware, IRONTON IRON INC., a
corporation organized and existing under the laws of the State of Ohio,
LYNCHBURG FOUNDRY COMPANY, a corporation organized and existing under the laws
of the Commonwealth of Virginia, NORTHERN CASTINGS CORPORATION, a corporation
organized and existing under the laws of the State of Georgia, SUDBURY, INC., a
corporation organized and existing under the laws of the State of Delaware,
SUDM, INC., a corporation organized and existing under the laws of the State of
Michigan, TOOL PRODUCTS, INC., a corporation organized and existing under the
laws of the State of Delaware, XXXXXX CASTINGS COMPANY, a corporation organized
and existing under the laws of the State of Delaware and XXXXXX HAVANA, INC., a
corporation organized and existing under the laws of the State of Delaware, and
the other subsidiaries of Intermet Corporation (the "Borrower") that execute and
deliver a supplement hereto from time to time (the foregoing Persons
individually a "Guarantor" and collectively the "Guarantors"), in favor of THE
BANK OF NOVA SCOTIA, a Canadian chartered bank acting through its Atlanta Agency
(in such capacity, the "Administrative Agent"), in its capacity as
administrative and collateral agent for the banks and other lending institutions
parties to the Credit Agreement (as hereinafter defined) and each assignee
thereof becoming a "Lender" as provided therein (the "Lenders"; the Lenders and
the Administrative Agent, their respective Affiliates, each counterparty to a
Rate Protection Agreement that is (or at the time such Rate Protection Agreement
was entered into, was) a Lender or an Affiliate thereof and any other Person
entitled to indemnification pursuant to Section 10.04 of the Credit Agreement
referred to below being collectively referred to herein as the "Guaranteed
Parties").
S-1
W I T N E S S E T H:
WHEREAS, the Borrower, certain Lenders, and the Administrative Agent, are
parties to that certain Five-Year Credit Agreement dated as of November 5, 1999
(as amended through the Eighth Amendment dated as of December 19, 2003, the
"Existing Loan Agreement");
WHEREAS, in connection with the Existing Loan Agreement each of the
initial Guarantors hereunder has previously guaranteed all obligations of the
Borrower under the Existing Loan Agreement and certain other obligations of the
Borrower and its Subsidiaries pursuant to the First Amended and Restated
Guaranty Agreement dated July 17, 2001 (the "Existing Guaranty Agreement");
WHEREAS, the Borrower, the Lenders and the Administrative Agent are
amending and restating the Existing Loan Agreement pursuant to a First Amended
and Restated Credit Agreement dated as of January 8, 2004 (as the same may
hereafter be further amended, restated, supplemented or otherwise modified from
time to time, the "Credit Agreement");
WHEREAS, the Borrower owns, directly or indirectly, all or a majority of
the outstanding Capital Securities of each of the Guarantors;
WHEREAS, the Borrower and Guarantors share an identity of interest as
members of a consolidated group of companies engaged in substantially similar
businesses with the Borrower providing certain centralized financial, accounting
and/or management services to each of the Guarantors;
WHEREAS, consummation of the transactions pursuant to the Credit Agreement
will enhance the overall financial strength and stability of the Borrower's
entire corporate group, including the Guarantors;
WHEREAS, it is a condition precedent to the effectiveness of the Lenders'
obligations to make extensions of credit under the Credit Agreement that the
Guarantors execute and deliver this Guaranty, and the Guarantors desire to
execute and deliver this Guaranty to satisfy such condition precedent;
WHEREAS, the Guarantors, the Lenders and the Administrative Agent wish to
amend and restate the Existing Guaranty Agreement in its entirety with the terms
contained in this Guaranty; and
WHEREAS, the Guarantors intend that this Guaranty not effect a novation of
their obligations under the Existing Guaranty Agreement, but merely a
restatement, and where applicable, an amendment to the terms governing such
obligations.
NOW, THEREFORE, in consideration of the premises and in order to induce
the Guaranteed Parties to enter into and perform their obligations under the
Credit Agreement and the other Credit Documents, the Guarantors hereby jointly
and severally agree that the Existing Guaranty Agreement shall be amended and
restated in its entirety to read as follows:
S-2
SECTION 1. DEFINITIONS. Capitalized terms used but not otherwise defined
herein shall have the respective meanings assigned to such terms in the Credit
Agreement (such definitions to be equally applicable to the singular and plural
forms thereof).
SECTION 2. GUARANTY. The Guarantors hereby jointly and severally,
irrevocably and unconditionally, guarantee the punctual payment when due,
whether at stated maturity, by acceleration or otherwise, of all Loans and all
other Obligations owing by the Borrower and its Subsidiaries (the Borrower or
Subsidiary being primarily obligated under such Loans or other Obligations being
each a "Primary Obligor") to the Guaranteed Parties, or any of them, under the
Credit Agreement, the Notes and the other Credit Documents, including, without
limitation, all renewals, extensions, modifications and refinancings thereof and
all Rate Protection Obligations, now or hereafter owing, whether for principal,
interest, fees, expenses, indemnification and reimbursement payments or
otherwise, and any and all reasonable out-of-pocket expenses (including
reasonable attorneys' fees actually incurred) and expenses incurred by the
Administrative Agent in enforcing any rights under this Guaranty (the
"Guaranteed Obligations"), including without limitation, all interest which, but
for the filing of a petition in bankruptcy with respect to a Primary Obligor,
would accrue on any principal portion of the Guaranteed Obligations. Any and all
payments by the Guarantors hereunder shall be made free and clear of and without
deduction for any set-off, counterclaim, or withholding so that, in each case,
each Guaranteed Party will receive, after giving effect to any Taxes (as such
term is defined in the Credit Agreement, but excluding Taxes imposed on overall
net income of the Guaranteed Party to the same extent as excluded pursuant to
the Credit Agreement), the full amount that it would otherwise be entitled to
receive with respect to the Guaranteed Obligations (but without duplication of
amounts for Taxes already included in the Guaranteed Obligations). The
Guarantors acknowledge and agree that this is a guarantee of payment when due,
and not of collection, and that this Guaranty may be enforced up to the full
amount of the Guaranteed Obligations without proceeding against a Primary
Obligor, against any security for the Guaranteed Obligations, against any other
Guarantor or under any other guaranty covering any portion of the Guaranteed
Obligations.
SECTION 3. GUARANTY ABSOLUTE. The Guarantors guarantee that the Guaranteed
Obligations will be paid strictly in accordance with the terms of the Credit
Documents, regardless of any law, regulation or order now or hereafter in effect
in any jurisdiction affecting any of such terms or the rights of any Guaranteed
Party with respect thereto. The liability of each Guarantor under this Guaranty
shall be absolute and unconditional in accordance with its terms and shall
remain in full force and effect without regard to, and shall not be released,
suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever, including, without limitation, the following (whether or
not such Guarantor consents thereto or has notice thereof):
(a) any change in the time, place or manner of payment of, or in any
other term of, all or any of the Guaranteed Obligations, any waiver,
indulgence, renewal, extension, amendment or modification of, or addition,
consent or supplement to, or deletion from, or any other action or
inaction under or in respect of, the Credit Agreement, the other Credit
Documents, or any other documents, instruments or agreements relating to
the Guaranteed Obligations or any other instrument or agreement referred
to therein or any assignment or transfer of any thereof;
S-3
(b) any lack of validity or enforceability of the Credit Agreement,
the other Credit Documents, or any other document, instrument or agreement
referred to therein or any assignment or transfer of any thereof;
(c) any furnishing to the Guaranteed Parties of any additional
security for the Guaranteed Obligations, or any sale, exchange, release or
surrender of, or realization on, any security for the Guaranteed
Obligations;
(d) any settlement or compromise of any of the Guaranteed
Obligations, any security therefor, or any liability of any other party
with respect to the Guaranteed Obligations, or any subordination of the
payment of the Guaranteed Obligations to the payment of any other
liability of a Primary Obligor;
(e) any bankruptcy, insolvency, reorganization, composition,
adjustment, dissolution, liquidation or other like proceeding relating to
any Guarantor or a Primary Obligor, or any action taken with respect to
this Guaranty by any trustee or receiver, or by any court, in any such
proceeding;
(f) any nonperfection of any security interest or lien on any
collateral, or any amendment or waiver of, consent to, or departure from,
any guaranty or security for all or any of the Guaranteed Obligations;
(g) any application of sums paid by a Primary Obligor or any other
Person with respect to the Guaranteed Obligations of such Primary Obligor
to the Guaranteed Parties, regardless of what Guaranteed Obligations of
such Primary Obligor remain unpaid;
(h) any act or failure to act by any Guaranteed Party which may
adversely affect a Guarantor's subrogation rights, if any, against a
Primary Obligor to recover payments made under this Guaranty; and
(i) any other circumstance which might otherwise constitute a
defense available to, or a discharge of, any Guarantor.
If claim is ever made upon any Guaranteed Party for repayment or recovery of any
amount or amounts received in payment or on account of any of the Guaranteed
Obligations, and any Guaranteed Party repays all or part of said amount by
reason of (a) any judgment, decree or order of any court or administrative body
having jurisdiction over such Guaranteed Party or any of its property, or (b)
any settlement or compromise of any such claim effected by such Guaranteed Party
with any such claimant (including a Primary Obligor or a trustee in bankruptcy
for such Primary Obligor), then and in such event the Guarantors agree that any
such judgment, decree, order, settlement or compromise shall be binding on it,
notwithstanding any revocation hereof or the cancellation of the Credit
Agreement, the other Credit Documents, or any other instrument evidencing any
liability of a Primary Obligor, and the Guarantors shall be and remain liable to
such Guaranteed Party for the amounts so repaid or recovered to the same extent
as if such amount had never originally been paid to such Guaranteed Party.
S-4
SECTION 4. WAIVER. The Guarantors hereby waive notice of acceptance of
this Guaranty, notice of any Guaranteed Obligations to which it may apply, and
further waive presentment, demand of payment, protest, notice of dishonor or
nonpayment of any such Obligations, suit or taking of other action by the
Guaranteed Parties against, and any other notice to, a Primary Obligor or any
other party liable with respect to the Guaranteed Obligations (including the
Guarantors or any other Person executing a guaranty of the obligations of such
Primary Obligor).
SECTION 5. WAIVER OF SUBROGATION; CONTRIBUTION. No Guarantor will exercise
any rights against any Primary Obligor which it may acquire by way of
subrogation or contribution, by any payment made hereunder or otherwise and each
of the Guarantors hereby expressly waives any claim, right or remedy which the
Guarantors may now have or hereafter acquire against any Primary Obligor that
arises hereunder and/or from the performance by the Guarantors hereunder,
including, without limitation, any claim, right or remedy of any Guaranteed
Party against any Primary Obligor or any security which any Guaranteed Party now
has or hereafter acquires, whether or not such claim, right or remedy arises in
equity, under contract, by statute, under color of law or otherwise unless and
until the Guaranteed Obligations have been indefeasibly paid in full.
In the event that any Guarantor (the "Funding Guarantor") shall make any
payment or payments under this Guaranty or shall suffer any loss as a result of
any realization upon any collateral granted by it to secure its obligations
hereunder, each other Guarantor (each, a "Contributing Guarantor") hereby agrees
to contribute to the Funding Guarantor an amount equal to such Contributing
Guarantor's pro rata share of such payment or payments made, or losses suffered,
by such Funding Guarantor determined by reference to the ratio of (a) the dollar
amount of the percentage of each such Contributing Guarantor's Net Assets
(without giving effect to any right to receive any contribution or subrogation
or obligation to make any contribution hereunder), to (b) the sum of the Net
Assets of all Guarantors (including the Funding Guarantor) hereunder (without
giving effect to any right to receive contribution or subrogation hereunder or
any obligation to make any contribution hereunder); provided, that the
Contributing Guarantor shall not be obligated to make any such payment to the
Funding Guarantor if the Contributing Guarantor is not solvent at the time of
such contribution or if the Contributing Guarantor would be rendered not solvent
as a result thereof. Nothing in this Section shall affect each Guarantor's
several liability for the entire amount of the Guaranteed Obligations, subject
only to the limitations set forth in Section 16. For the purposes of this
Section 5, (x) the "Net Assets" of any Guarantor shall mean the highest amount,
as of any Determination Date, by which (A) the aggregate present fair saleable
value of the assets of such Guarantor exceeds (B) the amount of all the debts
and liabilities of such Guarantor (including contingent, subordinated, unmatured
and unliquidated liabilities, but excluding the obligations of such Guarantor
hereunder), and (y) "Determination Date" shall mean each of (1) the Effective
Date, (2) the date of commencement of a case under the Bankruptcy Code in which
a Guarantor is a debtor, and (3) the date enforcement hereunder is sought with
respect to such Guarantor. Each Funding Guarantor covenants and agrees that its
right to receive any contribution from any Contributing Guarantor hereunder
shall be subordinated and junior in right of payment in full of all of the
Guaranteed Obligations.
S-5
SECTION 6. SEVERABILITY. Any provision of this Guaranty which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
SECTION 7. AMENDMENTS, ETC. No amendment or waiver of any provision of
this Guaranty nor consent to any departure by a Guarantor therefrom shall in any
event be effective unless the same shall be in writing executed by the
Administrative Agent.
SECTION 8. NOTICES. All notices and other communications provided for
hereunder shall be given in the manner specified in the Credit Agreement (i) in
the case of the Administrative Agent, at the address specified for the
Administrative Agent in the Credit Agreement, and (ii) in the case of the
Guarantors, at the respective addresses specified for such Guarantors in this
Guaranty (or as otherwise specified to the Administrative Agent in writing given
in the manner specified in the Credit Agreement).
SECTION 9. NO WAIVER; REMEDIES. No failure on the part of the
Administrative Agent or other Guaranteed Parties to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right. No notice to or demand on
any Guarantor in any case shall entitle such Guarantor to any other further
notice or demand in any similar or other circumstances or constitute a waiver of
the rights of the Administrative Agent or other Guaranteed Parties to any other
or further action in any circumstances without notice or demand. The remedies
herein provided are cumulative and not exclusive of any remedies provided by
law.
SECTION 10. RIGHT OF SET OFF. In addition to and not in limitation of all
rights of offset that the Administrative Agent or other Guaranteed Parties may
have under applicable law, the Administrative Agent and the other Guaranteed
Parties shall, upon the occurrence of any Event of Default and whether or not
the Administrative Agent or other Guaranteed Parties have made any demand or the
Guaranteed Obligations are matured, have the right to appropriate and apply to
the payment of the Guaranteed Obligations, all deposits of any Guarantor
(general or special, time or demand, provisional or final) then or thereafter
held by and other indebtedness or property, then or thereafter owing by the
Administrative Agent or other Guaranteed Parties to any Guarantor, whether or
not related to this Guaranty or any transaction hereunder. The Guaranteed
Parties shall promptly notify the relevant Guarantor of any offset hereunder.
SECTION 11. CONTINUING GUARANTY; TRANSFER OF OBLIGATIONS. This Guaranty is
a continuing guaranty and shall (i) remain in full force and effect until
payment in full of the Guaranteed Obligations and all other amounts payable
under this Guaranty, and the termination of the Revolving Loan Commitments, (ii)
be binding upon each Guarantor, its successors and assigns, and (iii) inure to
the benefit of and be enforceable by the Administrative Agent, its successors,
transferees and assigns, for the benefit of the Guaranteed Parties. Without
limiting the foregoing, any Guaranteed Party may assign or otherwise transfer
all or any portion of the Guaranteed Obligations held by it to any other Person,
and such other Person shall thereupon become vested with all the rights and
benefits in respect thereof granted to such Guaranteed
S-6
Party under this Guaranty or otherwise, subject, however, to any contrary
provisions in such assignment or transfer, and to the applicable provisions of
the Credit Agreement.
SECTION 12. GOVERNING LAW; APPOINTMENT OF AGENT FOR SERVICE OF PROCESS;
SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.
(a) THIS GUARANTY WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH
PURPOSE SECTION 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE
STATE OF NEW YORK).
(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR
OTHERWISE RELATED HERETO MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW
YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW
YORK, AND, BY EXECUTION AND DELIVERY OF THIS GUARANTY, EACH GUARANTOR
HEREBY CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
JURISDICTION OF THE AFORESAID COURTS SOLELY FOR THE PURPOSE OF
ADJUDICATING ITS RIGHTS OR THE RIGHTS OF THE ADMINISTRATIVE AGENT AND
OTHER GUARANTEED PARTIES WITH RESPECT TO THIS GUARANTY OR ANY DOCUMENT
RELATED HERETO. EACH GUARANTOR HEREBY IRREVOCABLY DESIGNATES UNITED STATES
CORPORATION COMPANY AS THE DESIGNEE, APPOINTEE AND AGENT OF SUCH GUARANTOR
TO RECEIVE, FOR AND ON BEHALF OF SUCH GUARANTOR, SERVICE OR PROCESS IN
SUCH JURISDICTION IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
GUARANTY OR ANY DOCUMENT RELATED HERETO AND SUCH SERVICE SHALL BE DEEMED
COMPLETED THIRTY DAYS AFTER MAILING THEREOF TO SAID AGENT. IT IS
UNDERSTOOD THAT A COPY OF SUCH PROCESS SERVED ON SUCH AGENT WILL BE
PROMPTLY FORWARDED BY SUCH LOCAL AGENT AND BY THE SERVER OF PROCESS BY
MAIL TO THE RESPECTIVE GUARANTOR AT ITS ADDRESS SET FORTH HEREIN, BUT THE
FAILURE OF SUCH GUARANTOR TO RECEIVE SUCH COPY SHALL NOT, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, AFFECT IN ANY WAY THE SERVICE OF SUCH
PROCESS. EACH GUARANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION,
INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR
BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
RESPECTIVE JURISDICTIONS IN RESPECT OF THIS GUARANTY OR ANY DOCUMENT
RELATED THERETO. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE
ADMINISTRATIVE AGENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW
OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY
GUARANTOR IN ANY OTHER JURISDICTION. TO THE EXTENT THAT ANY GUARANTOR HAS
OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR
FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT
PRIOR TO JUDGMENT,
S-7
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS
PROPERTY, SUCH GUARANTOR HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT
PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
GUARANTY AND THE OTHER CREDIT DOCUMENTS TO WHICH IT IS A PARTY.
(c) TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH GUARANTOR HEREBY
IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH THIS GUARANTY OR ANY
OTHER CREDIT DOCUMENT OR ANY MATTER ARISING IN CONNECTION HEREUNDER OR
THEREUNDER. EACH GUARANTOR ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED
FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER
PROVISION OF EACH OTHER CREDIT DOCUMENT TO WHICH IT IS A PARTY) AND THAT
THIS PROVISION IS A MATERIAL INDUCEMENT FOR SUCH GUARANTOR ENTERING INTO
THE CREDIT DOCUMENTS.
SECTION 13. SUBORDINATION OF EACH PRIMARY OBLIGOR'S OBLIGATIONS TO THE
GUARANTORS. As an independent covenant, each Guarantor hereby expressly
covenants and agrees for the benefit of the Administrative Agent and other
Guaranteed Parties that all obligations and liabilities of each Primary Obligor
to such Guarantor of whatsoever description including, without limitation, all
intercompany receivables of such Guarantor from such Primary Obligor ("Junior
Claims") shall be subordinate and junior in right of payment to all Obligations
of such Primary Obligor to the Administrative Agent and other Guaranteed Parties
under the terms of the Credit Agreement and the other Credit Documents ("Senior
Claims").
If an Event of Default shall occur, then, unless and until such Event of
Default shall have been cured, waived, or shall have ceased to exist, no direct
or indirect payment (in cash, property, securities, by setoff or otherwise)
shall be made by any Primary Obligor to any Guarantor on account of or in any
manner in respect of any Junior Claim except such payments and distributions the
proceeds of which shall be applied to the payment of Senior Claims on a pro rata
basis.
In the event of a Proceeding (as hereinafter defined), all Senior Claims
shall first be paid in full before any direct or indirect payment or
distribution (in cash, property, securities, by setoff or otherwise) shall be
made to any Guarantor on account of or in any manner in respect of any Junior
Claim except such payments and distributions the proceeds of which shall be
applied to the payment of Senior Claims. For the purposes of the previous
sentence, "Proceeding" means any Primary Obligor or any Guarantor shall commence
a voluntary case concerning itself under the Bankruptcy Code or any other
applicable bankruptcy laws; or any involuntary case is commenced against any
Primary Obligor or any Guarantor; or a custodian (as defined in the Bankruptcy
Code or any other applicable bankruptcy laws) is appointed for, or takes charge
of, all or any substantial part of the property of any Primary Obligor or any
Guarantor, or any Primary Obligor or any Guarantor commences any other
proceedings under any reorganization arrangement, adjustment of debt, relief of
debtor, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to any Primary Obligor
or any
S-8
Guarantor, or any such proceeding is commenced against any Primary Obligor or
any Guarantor, or any Primary Obligor or any Guarantor is adjudicated insolvent
or bankrupt; or any order of relief or other order approving any such case or
proceeding is entered; or any Primary Obligor or any Guarantor suffers any
appointment of any custodian or the like for it or any substantial part of its
property; or any Primary Obligor or any Guarantor makes a general assignment for
the benefit of creditors; or any Primary Obligor or any Guarantor shall fail to
pay, or shall state that it is unable to pay, or shall be unable to pay, its
debts generally as they become due; or any Primary Obligor or any Guarantor
shall call a meeting of its creditors with a view to arranging a composition or
adjustment of its debts; or any Primary Obligor or any Guarantor shall by any
act or failure to act indicate its consent to, approval of or acquiescence in
any of the foregoing; or any corporate action shall be taken by any Primary
Obligor or any Guarantor for the purpose of effecting any of the foregoing.
In the event any direct or indirect payment or distribution is made to a
Guarantor in contravention of this Section 13, such payment or distribution
shall be deemed received in trust for the benefit of the Administrative Agent
and other Guaranteed Parties and shall be immediately paid over to the
Administrative Agent for application against the Guaranteed Obligations in
accordance with the terms of the Credit Agreement.
Each Guarantor agrees to execute such additional documents as the
Administrative Agent may reasonably request to evidence the subordination
provided for in this Section 13.
SECTION 14. JUDGMENT CURRENCY. (a) The Guarantors' obligations hereunder
to make payments in a particular currency (the "Obligation Currency") shall not
be discharged or satisfied by any tender or recovery pursuant to any judgment
expressed in or converted into any currency other than the Obligation Currency,
except to the extent that such tender or recovery results in the effective
receipt by the Guaranteed Parties of the full amount of the Obligation Currency
expressed to be payable under this Guaranty or the Credit Agreement. If for the
purpose of obtaining or enforcing judgment against any Guarantor in any court or
in any jurisdiction, it becomes necessary to convert into or from any currency
other than the Obligation Currency (such other currency being hereinafter
referred to as the "Judgment Currency") an amount due in the Obligation
Currency, the conversion shall be made, at the currency equivalent determined,
in each case, as on the Business Day immediately preceding the day on which the
judgment is given (such Business Day being hereafter referred to as the
"Judgment Currency Conversion Date").
(b) If there is a change in the rate of exchange prevailing between the
Judgment Currency Conversion Date and the date of actual payment of the amount
due, the Guarantors covenant and agree to pay, or cause to be paid, such
additional amounts, if any (but in any event not a lesser amount), as may be
necessary to ensure that the amount paid in the Judgment Currency, when
converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of Judgment Currency stipulated in the judgment or judicial
award at the rate of exchange prevailing on the Judgment Currency Conversion
Date.
S-9
(c) For purposes of determining the currency equivalent for this Section,
such amounts shall include any premium and costs payable in connection with the
purchase of the Obligation Currency.
SECTION 15. AUTOMATIC ACCELERATION IN CERTAIN EVENTS. Upon the occurrence
of an Event of Default specified in Section 8.07 of the Credit Agreement, all
Guaranteed Obligations shall automatically become immediately due and payable by
the Guarantors, without notice or other action on the part of the Administrative
Agent or other Guaranteed Parties, and regardless of whether payment of the
Guaranteed Obligations by any Primary Obligor has then been accelerated. In
addition, if any event of the types described in Section 8.07 of the Credit
Agreement should occur with respect to any Guarantor, then the Guaranteed
Obligations shall automatically become immediately due and payable by such
Guarantor, without notice or other action on the part of the Administrative
Agent or other Guaranteed Parties, and regardless of whether payment of the
Guaranteed Obligations by any Primary Obligor has then been accelerated.
SECTION 16. SAVINGS CLAUSE. (a) It is the intent of each Guarantor and the
Guaranteed Parties that each Guarantor's maximum obligations hereunder shall be,
but not in excess of:
(i) in a case or proceeding commenced by or against such Guarantor
under the Bankruptcy Code on or within one year from the date on which any
of the Guaranteed Obligations are incurred, the maximum amount which would
not otherwise cause the Guaranteed Obligations (or any other obligations
of such Guarantor to the Guaranteed Parties) to be avoidable or
unenforceable against such Guarantor under (A) Section 548 of the
Bankruptcy Code or (B) any state fraudulent transfer or fraudulent
conveyance act or statute applied in such case or proceeding by virtue of
Section 544 of the Bankruptcy Code; or
(ii) in a case or proceeding commenced by or against such Guarantor
under the Bankruptcy Code subsequent to one year from the date on which
any of the Guaranteed Obligations are incurred, the maximum amount which
would not otherwise cause the Guaranteed Obligations (or any other
obligations of the Guarantor to the Guaranteed Parties) to be avoidable or
unenforceable against such Guarantor under any state fraudulent transfer
or fraudulent conveyance act or statute applied in any such case or
proceeding by virtue of Section 544 of the Bankruptcy Code; or
(iii) in a case or proceeding commenced by or against such Guarantor
under any law, statute or regulation other than the Bankruptcy Code
(including, without limitation, any other bankruptcy, reorganization,
arrangement, moratorium, readjustment of debt, dissolution, liquidation or
similar debtor relief laws), the maximum amount which would not otherwise
cause the Guaranteed Obligations (or any other obligations of such
Guarantor to the Guaranteed Parties) to be avoidable or unenforceable
against such Guarantor under such law, statute or regulation including,
without limitation, any state fraudulent transfer or fraudulent conveyance
act or statute applied in any such case or proceeding.
S-10
(The substantive laws under which the possible avoidance or unenforceability of
the Guaranteed Obligations (or any other obligations of such Guarantor to the
Guaranteed Parties) shall be determined in any such case or proceeding shall
hereinafter be referred to as the "Avoidance Provisions").
(b) To the end set forth in Section 16(a), but only to the extent
that the Guaranteed Obligations would otherwise be subject to avoidance
under the Avoidance Provisions, if such Guarantor is not deemed to have
received valuable consideration, fair value or reasonably equivalent value
for the Guaranteed Obligations, or if the Guaranteed Obligations would
render the Guarantor insolvent, or leave the Guarantor with an
unreasonably small capital to conduct its business, or cause the Guarantor
to have incurred debts (or to have intended to have incurred debts) beyond
its ability to pay such debts as they mature, in each case as of the time
any of the Guaranteed Obligations are deemed to have been incurred under
the Avoidance Provisions and after giving effect to contribution as among
Guarantors, the maximum Guaranteed Obligations for which such Guarantor
shall be liable hereunder shall be reduced to that amount which, after
giving effect thereto, would not cause the Guaranteed Obligations (or any
other obligations of such Guarantor to the Guaranteed Parties), as so
reduced, to be subject to avoidance under the Avoidance Provisions. This
Section 16(b) is intended solely to preserve the rights of the Guaranteed
Parties hereunder to the maximum extent that would not cause the
Guaranteed Obligations of any Guarantor to be subject to avoidance under
the Avoidance Provisions, and neither such Guarantor nor any other Person
shall have any right or claim under this Section 16 as against the
Guaranteed Parties that would not otherwise be available to such Person
under the Avoidance Provisions.
(c) None of the provisions of this Section 16 are intended in any manner
to alter the obligations of any holder of Subordinated Debt or the rights of the
holders of "senior indebtedness" as provided by the terms of the Subordinated
Debt. Accordingly, it is the intent of each of the Guarantors that in the event
that any payment or distribution is made with respect to the Subordinated Debt
prior to the payment in full of the Guaranteed Obligations by virtue of the
provisions of this Section 16, in any case or proceeding of the kinds described
in clauses (i)-(iii) of Section 16(a), the holders of the Subordinated Debt
shall be obligated to pay or deliver such payment or distribution to or for the
benefit of the Guaranteed Parties. Furthermore, in respect of the Avoidance
Provisions, it is the intent of each Guarantor that the subrogation rights of
the holders of Subordinated Debt with respect to the obligations of the
Guarantor under this Guaranty, be subject in all respects to the provisions of
Section 16(b).
SECTION 17. INFORMATION. Each of the Guarantors assumes all responsibility
for being and keeping itself informed of each Primary Obligor's financial
condition and assets, and of all other circumstances bearing upon the risk of
nonpayment of the Guaranteed Obligations and the nature, scope and extent of the
risks that such Guarantor assumes and incurs hereunder, and agrees that none of
the Guaranteed Parties will have any duty to advise any of the Guarantors of
information known to it or any of them regarding such circumstances or risks.
SECTION 18. REPRESENTATIONS AND WARRANTIES. Each Guarantor represents and
warrants as to itself that all representations and warranties relating to it
contained in Sections 5.01 through 5.06 of the Credit Agreement are true and
correct.
S-11
SECTION 19. SURVIVAL OF AGREEMENT. All agreements, representations and
warranties made herein shall survive the execution and delivery of this Guaranty
and the Credit Agreement, the making of the Loans and the execution and delivery
of the Notes and the other Credit Documents.
SECTION 20. COUNTERPARTS. This Guaranty and any amendments, waivers,
consents or supplements hereto may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.
SECTION 21. CURRENCY OF PAYMENT. All payments to be made by the Guarantors
hereunder shall be made in the relevant currency or currencies in which the
Guaranteed Obligations are denominated in immediately available funds. If any
Guarantor is unable for any reason to effect payment of any of the Guaranteed
Obligations in the currency in which such Guaranteed Obligations are
denominated, the Guaranteed Parties may, at their option, require such payment
to be made in the Dollar Equivalent of such currency. If in any case where any
of the Guarantors shall make any such payment in the Dollar Equivalent, the
Guarantors agree to hold the Guaranteed Parties harmless from any loss incurred
by the Lenders arising from any change in the value of Dollars in relation to
such currency between the date such payment became due and the date of payment
thereof. As used "Dollar Equivalent" in this Section means, in relation to an
amount denominated in a currency other than Dollars, the amount of Dollars which
could be purchased with such amount at the prevailing foreign exchange spot rate
of the Administrative Agent at 11:00 am (local time for the Administrative
Agent) on the date of determination.
SECTION 22. ADDITIONAL GUARANTORS. Upon execution and delivery by any
Subsidiary of the Borrower of an instrument in the form of Annex 1, such
Subsidiary of the Borrower shall become a Guarantor hereunder with the same
force and effect as if originally named a Guarantor herein (each an "Additional
Guarantor"). The execution and delivery of any such instrument shall not require
the consent of any Guarantor hereunder. The rights and obligations of each
Guarantor hereunder shall remain in full force and effect notwithstanding the
addition of any Additional Guarantor as a party to this Guaranty.
SECTION 23. APPLICATION OF PROCEEDS. All cash proceeds received by the
Administrative Agent from the Guarantors shall be applied by the Administrative
Agent to payment of the Guaranteed Obligations in the following order unless a
court of competent jurisdiction shall otherwise direct:
FIRST, to payment of all reasonable costs and expenses of the
Administrative Agent incurred in connection with the collection and
enforcement of the Guaranteed Obligations;
SECOND, to payment of that portion of the Guaranteed Obligations
constituting accrued and unpaid interest and fees, pro rata among the
Guaranteed Parties in accordance with the amount of such accrued and
unpaid interest and fees owing to each of them;
S-12
THIRD, to payment of the principal of the Guaranteed Obligations
(including without limitation the Rate Protection Obligations included in
the Guaranteed Obligations), pro rata among the Guaranteed Parties in
accordance with the amount of such principal owing to each of them;
FOURTH, to payment of any other Guaranteed Obligations (other than those
listed above) pro rata among the Guaranteed Parties in accordance with the
amounts owing to each of them; and
FIFTH, the balance, if any, after all of the Guaranteed Obligations have
been satisfied, to the applicable Guarantor or to whosoever may be
lawfully entitled to receive them; provided, that prior to the date on
which all Guaranteed Obligations have been paid in full and all
commitments to make loans, issue letters of credit or otherwise extend
credit pursuant to the Credit Agreement have been terminated, such balance
may, in the discretion of the Administrative Agent, be held by the
Administrative Agent as collateral to be applied at any time thereafter
pursuant to this Section 23.
SECTION 24. REFERENCES TO EXISTING GUARANTY AGREEMENT. All references to
the Existing Guaranty Agreement in the "Credit Documents" (as defined in the
Existing Loan Agreement) or in any other documents delivered in connection with
the Existing Loan Agreement shall be deemed to refer to this Guaranty.
[Signatures Follow on Next Page]
S-13
ANNEX 1
FORM OF
SUPPLEMENT
TO SECOND AMENDED AND RESTATED
GUARANTY AGREEMENT
THIS SUPPLEMENT TO SECOND AMENDED AND RESTATED GUARANTY AGREEMENT (this
"Supplement to Guaranty Agreement"), dated as of _________, ____, made by
_________________________, a _____________ corporation (the "Additional
Guarantor"), in favor of THE BANK OF NOVA SCOTIA, a Canadian chartered bank
acting through its Atlanta Agency (in such capacity, the "Administrative
Agent"), in its capacity as administrative agent and collateral agent for the
banks and other lending institutions parties to the Credit Agreement (as
hereinafter defined) and each assignee thereof becoming a "Lender" as provided
therein (the "Lenders"; the Lenders and the Administrative Agent, their
respective Affiliates and each counterparty to a Rate Protection Agreement that
is (or at the time such Rate Protection Agreement was entered into, was) a
Lender or an Affiliate thereof, being collectively referred to herein as the
"Guaranteed Parties").
W I T N E S S E T H:
WHEREAS, Intermet Corporation (the "Borrower"), the Lenders and the
Administrative Agent are parties to that certain First Amended and Restated
Credit Agreement, dated as of January 8, 2004, as amended (as the same may
hereafter be amended, restated, supplemented or otherwise modified from time to
time, the "Credit Agreement") pursuant to which the Lenders have made
commitments to make loans to the Borrower;
WHEREAS, certain Subsidiaries (the "Subsidiary Guarantors") of the
Borrower have executed and delivered that certain Second Amended and Restated
Guaranty Agreement dated as of January 8, 2004 (the "Subsidiary Guaranty")
pursuant to which the Subsidiary Guarantors have agreed to guarantee all of the
obligations of the Borrower and its Subsidiaries under the Credit Agreement and
the other Credit Documents (as defined in the Credit Agreement);
WHEREAS, the Borrower, the Subsidiary Guarantors and the Additional
Guarantor share an identity of interests as members of a consolidated group of
companies engaged in substantially similar businesses; the Borrower provides
certain centralized financial, accounting and/or management services to the
Additional Guarantor; and the making of the loans has enhanced and will enhance
the overall financial strength and stability of the Borrower's corporate group,
including the Additional Guarantor;
WHEREAS, it is a condition subsequent to the Lenders' obligation to make
loans to the Borrower under the Credit Agreement that the Additional Guarantor
execute and deliver to the Administrative Agent this Supplement to Guaranty
Agreement, and the Additional Guarantor desires to execute and deliver this
Supplement to Guaranty Agreement to satisfy such condition subsequent;
A-1
NOW, THEREFORE, in consideration of the premises and in order to induce
the Guaranteed Parties to enter into and perform their obligations under the
Credit Agreement, the Additional Guarantor hereby agrees as follows:
SECTION 1. DEFINED TERMS. Capitalized terms not otherwise defined herein
are used herein with the meanings specified for such terms in the Credit
Agreement.
SECTION 2. ADDITIONAL GUARANTOR. The Additional Guarantor agrees that it
shall be and become a Guarantor for all purposes of the Subsidiary Guaranty and
shall be fully liable thereunder to the Administrative Agent and other
Guaranteed Parties to the same extent and with the same effect as though the
Additional Guarantor had been one of the Guarantors originally executing and
delivering the Subsidiary Guaranty. Without limiting the foregoing, the
Additional Guarantor hereby jointly and severally (with respect to the
guaranties made by the Subsidiary Guarantors under the Subsidiary Guaranty),
irrevocably and unconditionally, guarantees the punctual payment when due,
whether at stated maturity by acceleration or otherwise, of all Loans and all
other Obligations (as defined in the Credit Agreement), owing by the Borrower
and its Subsidiaries to the Guaranteed Parties, or any of them, under the Credit
Agreement, the Notes and the other Credit Documents including, without
limitation, all renewals, extensions, modifications and refinancings thereof and
all Rate Protection Obligations, now or hereafter owing, whether for principal,
interest, fees, expenses, indemnification and reimbursement payments or
otherwise, and any and all reasonable out-of-pocket expenses (including
reasonable attorneys' fees actually incurred) and expenses incurred by the
Administrative Agent in enforcing any rights under the Subsidiary Guaranty (as
supplemented hereby), subject, however, to the limitations expressly provided in
the Subsidiary Guaranty in Section 16 thereof. All references in the Subsidiary
Guaranty to "Guarantors" or any "Guarantor" shall be deemed to include and to
refer to the Additional Guarantor.
SECTION 3. GOVERNING LAW; APPOINTMENT OF AGENT FOR SERVICE OF PROCESS;
SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.
(a) THIS SUPPLEMENT TO GUARANTY AGREEMENT WILL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW
YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK).
(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS SUPPLEMENT
TO GUARANTY AGREEMENT RELATED HERETO MAY BE BROUGHT IN THE COURTS OF THE
STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS SUPPLEMENT TO
GUARANTY AGREEMENT, THE ADDITIONAL GUARANTOR HEREBY CONSENTS, FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, TO THE JURISDICTION OF THE AFORESAID
COURTS SOLELY FOR THE PURPOSE OF ADJUDICATING ITS RIGHTS OR THE RIGHTS OF
THE ADMINISTRATIVE AGENT AND OTHER GUARANTEED PARTIES WITH RESPECT TO THIS
SUPPLEMENT TO GUARANTY AGREEMENT OR ANY DOCUMENT RELATED
A-2
HERETO. THE ADDITIONAL GUARANTOR HEREBY IRREVOCABLY DESIGNATES UNITED
STATES CORPORATION COMPANY AS THE DESIGNEE, APPOINTEE AND AGENT OF THE
ADDITIONAL GUARANTOR TO RECEIVE, FOR AND ON BEHALF OF THE ADDITIONAL
GUARANTOR, SERVICE OF PROCESS IN SUCH JURISDICTION IN ANY LEGAL ACTION OR
PROCEEDING WITH RESPECT TO THIS SUPPLEMENT TO GUARANTY AGREEMENT OR ANY
DOCUMENT RELATED HERETO AND SUCH SERVICE SHALL BE DEEMED COMPLETED THIRTY
(30) DAYS AFTER MAILING THEREOF TO SAID AGENT. IT IS UNDERSTOOD THAT A
COPY OF SUCH PROCESS SERVED ON SUCH AGENT WILL BE PROMPTLY FORWARDED BY
SUCH LOCAL AGENT AND BY THE SERVER OF PROCESS BY MAIL TO THE ADDITIONAL
GUARANTOR AT ITS ADDRESS SET FORTH HEREIN, BUT THE FAILURE OF THE
ADDITIONAL GUARANTOR TO RECEIVE SUCH COPY SHALL NOT, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, AFFECT IN ANY WAY THE SERVICE OF SUCH
PROCESS. THE ADDITIONAL GUARANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION,
INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR
BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
RESPECTIVE JURISDICTIONS IN RESPECT OF THIS SUPPLEMENT TO GUARANTY
AGREEMENT OR ANY DOCUMENT RELATED THERETO. NOTHING HEREIN SHALL AFFECT THE
RIGHT OF THE ADMINISTRATIVE AGENT TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED
AGAINST THE ADDITIONAL GUARANTOR IN ANY OTHER JURISDICTION. TO THE EXTENT
THAT THE ADDITIONAL GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE
ADDITIONAL GUARANTOR HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT
PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
SUPPLEMENT TO GUARANTY AGREEMENT AND THE OTHER CREDIT DOCUMENTS TO WHICH
IT IS A PARTY.
(c) TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE ADDITIONAL
GUARANTOR HEREBY IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN CONNECTION WITH
THIS SUPPLEMENT TO GUARANTY AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR ANY
MATTER ARISING IN CONNECTION HEREUNDER OR THEREUNDER. THE ADDITIONAL
GUARANTOR ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER
CREDIT DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE GUARANTEED PARTIES ENTERING INTO THE CREDIT
DOCUMENTS.
A-3
IN WITNESS WHEREOF, the Additional Guarantor has caused this Supplement to
Guaranty to be duly executed and delivered by its duly authorized officer as of
the date first above written.
Address for Notices: ADDITIONAL GUARANTOR:
By:___________________________
Name:_________________________
Title:________________________
A-4
