EXHIBIT
10.2


 


GUARANTY


 


GUARANTY,
dated as of June 30, 2004, by WEIDER
NUTRITION INTERNATIONAL, INC., a Delaware corporation (the
“Guarantor”) in favor of (a) KEYBANK NATIONAL
ASSOCIATION, as agent (hereinafter, in such capacity, the “Agent”)
for itself and the other financial institutions (hereinafter, collectively, the
“Banks”) which are or may become parties to that certain Revolving Credit
Agreement dated as of even date herewith among Weider Nutrition Group, Inc., a
Utah corporation, as borrower thereunder (the “Borrower”), the Banks and the
Agent (as amended and in effect from time to time, the “Credit Agreement”) and
(b) each of the Banks.


 


WHEREAS,
the Borrower is a wholly-owned subsidiary of the Guarantor;


 


WHEREAS,
pursuant to the Credit Agreement, the Banks, upon the terms and subject to the
conditions contained therein, have agreed to make loans and otherwise extend
credit to the Borrower;


 


WHEREAS,
the Guarantor expects to receive substantial direct and indirect benefits from
the extensions of credit to the Borrower by the Banks pursuant to the Credit
Agreement (which benefits are hereby acknowledged);


 


WHEREAS,
it is a condition precedent to the Banks and the Agent entering into the Credit
Agreement that the Guarantor execute and deliver to the Agent and the Banks a
guaranty substantially in the form hereof; and


 


WHEREAS,
the Guarantor wishes to guaranty the obligations of the Borrower to the Banks
and Agent under or in respect of the Credit Agreement as provided herein;


 


NOW,
THEREFORE, in consideration of the premises (the foregoing
recitals being part of this Guaranty), the Guarantor hereby agrees with the
Agent for the ratable benefit of the Banks as follows:


 


1.                                      Definitions.  All capitalized
terms used herein without definition shall have the respective meanings
provided therefor in the Credit Agreement.


 


2.                                      Guaranty of Payment and Performance. 
The Guarantor hereby guarantees to the Banks the full and punctual
payment when due (whether at stated maturity, by required pre-payment, by
acceleration or otherwise), as well as the performance, of all of the
Obligations under the Credit Agreement, including all Obligations that would
become due but for the operation of the automatic stay pursuant to §362(a) of
the Federal Bankruptcy Code and the operation of §§502(b) and 506(b) of the
Federal Bankruptcy Code.  This Guaranty
is an absolute, unconditional and continuing guaranty of the full and punctual
payment and performance of all of the Obligations and not of their
collectibility only and is in no way conditioned upon any requirement that the
Agent or any Bank first attempt to collect any of the Obligations from the
Borrower or resort to any collateral security or other means of obtaining
payment.  Should the Borrower default in
the payment or performance of any of the Obligations, the obligations of the
Guarantor hereunder with respect to such Obligations in default shall, upon
demand by the Agent, become immediately due and payable to the Agent, for the
benefit of the Banks and the Agent, without demand or notice of any nature, all
of which are expressly waived by the Guarantor.  Payments by the Guarantor hereunder may be required by the Agent,
for the benefit of the Banks and the Agent, on any number of occasions.  All payments by the Guarantor hereunder
shall be made to the Agent, in the manner and at the place of payment specified
therefor in the Credit Agreement, for the account of the Banks and the Agent.


 


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3.                                      Guarantor’s Agreement to Pay Enforcement
Costs, etc.  The
Guarantor further agrees, as the principal obligor and not as a guarantor only,
to pay to the Agent, on demand, all costs and expenses (including court costs
and legal expenses) incurred or expended by the Agent or any Bank in connection
with the Obligations, this Guaranty and the enforcement thereof, together with
interest on amounts recoverable under this §3 from the time when such amounts
become due until payment, whether before or after any judgment, at the rate of
interest for overdue principal set forth in the Credit Agreement; provided,
that if such interest exceeds the maximum amount permitted to be paid under
applicable law, then such interest shall be reduced to such maximum permitted
amount.


 


4.                                      Waivers by Guarantor; Banks’ Freedom to Act. 
The Guarantor agrees that the Obligations will be paid and performed
strictly in accordance with their respective terms, regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of the Agent or any Bank with respect thereto;
provided, however, that the Guarantor shall not be required to pay or perform
any Obligation prohibited by any applicable law, regulation or order of any
jurisdiction.  The Guarantor waives promptness,
diligences, presentment, demand, protest, notice of acceptance, notice of any
Obligations incurred and all other notices of any kind, all defenses which may
be available by virtue of any valuation, stay, moratorium law or other similar
law now or hereafter in effect, any right to require the marshalling of assets
of the Borrower or any other entity or other person primarily or secondarily
liable with respect to any of the Obligations, and all suretyship defenses
generally.  Without limiting the generality
of the foregoing, the Guarantor agrees to the provisions of any instrument
evidencing, securing or otherwise executed by the Guarantor or the Borrower in
connection with any Obligation and agrees that the obligations of the Guarantor
hereunder shall not be released or discharged, in whole or in part, or
otherwise affected by (a) the failure of the Agent or any Bank to assert any
claim or demand or to enforce any right or remedy against the Borrower or any
other entity or other person primarily or secondarily liable with respect to
any of the Obligations; (b) any extensions, compromise, refinancing,
consolidation or renewals of any Obligation; (c) any change in the time, place
or manner of payment of any of the Credit Agreement, the Notes, the other Loan
Documents or any other agreement evidencing, securing or otherwise executed in
connection with any of the Obligations; (d) the addition, substitution or
release of any entity or other person primarily or secondarily liable for any
Obligation, (e) the adequacy of any rights which the Agent or any Bank may have
against any collateral security or other means of obtaining repayment of any of
the Obligations; (f) the impairment of any collateral securing any of the
Obligations, including without limitation the failure to perfect or preserve
any rights which the Agent or any Bank might have in such collateral security
or the substitution, exchange, surrender, release, loss or destruction of any
such collateral security; or (g) any other act or omission which might in any
manner or to any extent vary the risk of the Guarantor or otherwise operate as
a release or discharge of the Guarantor, all of which may be done without
notice to the Guarantor.  To the fullest
extent permitted by law, the Guarantor hereby expressly waives any and all
rights or defenses arising by reason of (i) any “one action” or
“anti-deficiency” law which would otherwise prevent the Agent or any Bank from
bringing any action, including any claim for a deficiency, or exercising any
other right or remedy (including any right of set-off), against the Guarantor
before or after the Agent or such Bank’s commencement or completion of any
foreclosure action, whether judicially, by exercise of power of sale or
otherwise, or (ii) any other law which in any other way would otherwise require
any election of remedies by the Agent or any Bank.


 


5.                                      Unenforceability of Obligations Against
Borrower.  If for any reason the Borrower has no legal
existence or is under no legal obligation to discharge any of the Obligations,
or if any of the Obligations have become irrecoverable from the Borrower by
reason of the Borrower’s insolvency, bankruptcy or reorganization or by other
operation of law or for any other reason, this Guaranty shall nevertheless be
binding on the Guarantor to the same extent as if the Guarantor at all times
had been the principal obligor on all such Obligations.  In the event that acceleration of the time
for payment of any of 


 


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the Obligations is stayed
upon the insolvency, bankruptcy or reorganization of the Borrower, or for any
other reason, all such amounts otherwise subject to acceleration under the
terms of the Credit Agreement, the Notes, the other Loan Documents or any other
agreement evidencing, securing or otherwise executed in connection with any
Obligation shall be immediately due and payable by the Guarantor.


 


6.                                      Subrogation; Subordination.


 


6.1                               Waiver of Rights Against Borrower. 
Until the final payment and performance in full of all of the
Obligations, the Guarantor shall not exercise and hereby waives any rights
against the Borrower arising as a result of payment by the Guarantor hereunder,
by way of subrogation, reimbursement, restitution, contribution or otherwise,
and will not prove any claim in competition with the Agent or any Bank in
respect of any payment hereunder in any bankruptcy, insolvency or
reorganization case or proceedings of any nature; the Guarantor will not claim
any setoff, recoupment or counterclaim against the Borrower; and the Guarantor
waives any benefit of and any right to participate in any collateral security
which may be held by the Agent or any Bank.


 


6.2                               Subordination. 
The payment of any amounts due with respect to any indebtedness of the
Borrower for money borrowed or credit received now or hereafter owed to the
Guarantor is hereby subordinated to the prior payment in full of all of the
Obligations.  The Guarantor agrees that,
after the occurrence of any Default in the payment or performance of any of the
Obligations, the Guarantor will not demand, sue for or otherwise attempt to
collect any such indebtedness of the Borrower to the Guarantor until all of the
Obligations shall have been paid in full. 
If, notwithstanding the foregoing sentence, the Guarantor shall collect,
enforce or receive any amounts in respect of such indebtedness, such amounts
shall be collected, enforced and received by the Guarantor as trustee for the
Banks and the Agent and be paid over to the Agent, for the benefit of the Banks
and the Agent, on account of the Obligations without affecting in any manner
the liability of the Guarantor under the other provisions of this Guaranty.


 


6.3                               Provisions Supplemental. 
The provisions of this §6 shall be supplemental to and not in derogation
of any rights and remedies of the Banks or the Agent under any separate
subordination agreement which the Agent may at any time and from time to time
enter into with the Guarantor for the benefit of the Banks and the Agent.


 


7.                                      Security.  As collateral for the performance of all of
the Guarantor’s obligations and liabilities hereunder, the Guarantor shall and
hereby does grant to the Agent, for the ratable benefit of the Banks, a
continuing lien on and security interest in the following collateral:  one hundred percent of the outstanding and
issued stock (other than any margin stock (as such term is defined by
Regulation U of the Board of Governors of the Federal Reserve System) of the
Borrower now or hereafter held by the Guarantor.  Such security interest shall be further evidenced by and subject
to the terms of a Stock Pledge Agreement in a form satisfactory to the Agent,
financing statements, and such other documents as the Agent may request.


 


8.                                      Further Assurances.  The Guarantor agrees that it will from time
to time, at the request of the Agent, do all such things and execute all such
documents as the Agent may consider necessary or desirable to give full effect
to this Guaranty and to perfect and preserve the rights and powers of the Agent
and the Banks hereunder.  The Guarantor
acknowledges and confirms that the Guarantor itself has established its own
adequate means of obtaining from the Borrower on a continuing basis all
information desired by the Guarantor concerning the financial condition of the
Borrower and that the Guarantor will look to the Borrower and not to the Agent
or any Bank in order for the Guarantor to keep adequately informed of changes
in the Borrower’s financial condition.


 


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9.                                      Termination; Reinstatement.  This Guaranty shall remain in full force and
effect until the Agent is given written notice of the Guarantor’s intention to
discontinue this Guaranty, notwithstanding any intermediate or temporary
payment or settlement of the whole or any part of the Obligations.  No such notice shall be effective unless
received and acknowledged by an officer of the Agent at the address of the
Agent for notices set forth in §20 of the Credit Agreement.  No such notice shall affect any rights of
the Agent or any Bank or of any affiliate of the Agent or any Bank hereunder,
including without limitation the rights set forth in §§4 and 6 hereof, with
respect to any Obligations incurred or accrued prior to the receipt of such
notice or any Obligations incurred or accrued pursuant to any contract or
commitment in existence prior to such receipt. 
This Guaranty shall continue to be effective or re reinstated,
notwithstanding any such notice, if at any time any payment made or value
received with respect to any Obligation is rescinded or must otherwise be
returned by the Agent or any Bank upon the insolvency, bankruptcy or
reorganization of the Borrower, or otherwise, all as though such payment had
not been made or value received. 
Subject to the foregoing and unless terminated earlier in accordance
with this Section 9, this Guaranty shall terminate only upon (i) full
performance and final satisfaction and payment to the Agent, for the ratable
benefit of the Banks, of all Obligations owed by the Borrower to the Agent or
the Banks under the Loan Documents, (ii) full performance of all of the
Guarantor’s other obligations under this Guaranty, and (iii) the termination of
any obligation on the Part of the Agent or any Bank to make Revolving Credit
Loans or issue Letters of Credit to or for the benefit of the Borrower.


 


10.                               Successors and Assigns.  This Guaranty shall be binding upon the
Guarantor, its successors and assigns, and shall insure to the benefit of and
be enforceable by the Agent and the Banks and their successors, transferees and
assigns.  Without limiting the
generality of the foregoing sentence, each Bank may assign or otherwise
transfer the Credit Agreement, the Notes, the other Loan Documents or any other
agreement or note held by it evidencing, securing or otherwise executed in
connection with the Obligations, or sell participations in any interest
therein, to any other entity or other person, and such other entity or other
person shall thereupon become vested, to the extent set forth in the agreement
evidencing such assignment, transfer or participation, with all the rights in
respect thereof granted to such Bank herein, as permitted under the Credit
Agreement.  Guarantor may not assign any
of its obligations hereunder.


 


11.                               Amendments and Waivers.  No amendment or waiver of any provision of
this Guaranty nor consent to any departure by the Guarantor therefrom shall be
effective unless the same shall be in writing and signed by the Guarantor and
by the Agent with the consent of the Majority Banks.  No failure on the part of the Agent or any Bank 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.


 


12.                               Notices.  All notices and other communications called for hereunder shall
be made in writing and, unless otherwise specifically provided herein, shall be
deemed to have been duly made or given when delivered by hand or mailed first
class, postage prepaid, or, in the case of telegraphic or telexed notice, when
transmitted, answer back received, addressed as follows:  if to the Guarantor, at the address set
forth beneath its signature hereto, and if to the Agent, at the address for
notices to the Agent set forth in §20 of the Credit Agreement, or at such
address as either party may designate in writing to the other.


 


13.                               Governing Law; Consent to Jurisdiction.  THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF UTAH.  The Guarantor agrees that any suit for the
enforcement of this Guaranty may be brought in the courts of the State of Utah
or any federal court sitting therein and consents to the nonexclusive


 


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jurisdiction of such
court and to service of process in any such suit being made upon the Guarantor
by mail at the address specified by reference in §12.  The Guarantor hereby waives any objection that it may now or
hereafter have to the venue of any such suit or any such court or that such
suit was brought in an inconvenient court.


 


14.                               Waiver of Jury Trial.  THE GUARANTOR HEREBY WAIVES ITS RIGHT TO A
JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN
CONNECTION WITH THIS GUARANTY, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE
PERFORMANCE OF ANY OF SUCH RIGHTS OR OBLIGATIONS.  Except as prohibited by law, the Guarantor hereby waives any
right which it may have to claim or recover in any litigation referred to in
the preceding sentence any special, exemplary, punitive or consequential
damages or any damages other than or in addition to, actual damages.  The Guarantor (a) certifies that neither the
Agent or any Bank nor any representative, agent or attorney of the Agent or any
Bank has represented, expressly or otherwise, that the Agent or any Bank would
not, in the event of litigation, seek to enforce the foregoing waivers and (b)
acknowledges that, in entering into the Credit Agreement and the other Loan
Documents to which the Agent or any Bank is a party, the Agent and the Banks
are relying upon, among other things, the waivers and certifications contained
in this §14.


 


15.                               Miscellaneous.  This Guaranty constitutes the entire
agreement of the Guarantor with respect to the matters set forth herein.  The rights and remedies herein provided are
cumulative and not exclusive of any remedies provided by law or any other
agreement, and this Guaranty shall be in addition to any other guaranty of or
collateral security for any of the Obligations.  The invalidity or enforceability of any one or more sections of
this Guaranty shall not affect the validity or enforceability of its remaining
provisions.  Captions are for the ease
of reference only and shall not affect the meaning of the relevant
provisions.  The meanings of all defined
terms used in this Guaranty shall be equally applicable to the singular and
plural forms of the terms defined.


 


IT WITNESS WHEREOF, the
Guarantor has caused this Guaranty to be executed and delivered as of the date
first above written.


 


	
   

  	
  WEIDER
  NUTRITION INTERNATIONAL, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Joseph Baty

  
	
   

  	
  Its:  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  Weider Nutrition
  International, Inc.

  
	
   

  	
  2002 South 5070 West

  
	
   

  	
  Salt Lake City, Utah
  84104-4726

  
	
   

  	
  Attn: Chief Financial
  Officer

  



 


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