Document:

Exhibit 10.23

 

CONTINUING
GUARANTY AGREEMENT

 

THIS CONTINUING GUARANTY
AGREEMENT (this “Guaranty”) is made on August 5, 2008, by SUPERIOR ESSEX COMMUNICATIONS LP, a Delaware limited
partnership with a mailing address at 6120 Powers Ferry Road, Suite 150, Atlanta,
Georgia 30339, and ESSEX GROUP, INC.,
a Michigan corporation with a mailing address at 1601 Wall Street, Fort Wayne,
Indiana 46802 (each herein called a “Guarantor” and collectively, “Guarantors”),
in favor of each of the financial institutions (collectively, “Lenders”)
now or hereafter parties to the Loan Agreement (as defined below) and BANK OF AMERICA, N.A.,  a national
banking association with a mailing address at 300 Galleria Parkway, N.W., Suite 800,
Atlanta, Georgia 30339, as administrative and collateral  agent
(in such capacity, together with its successors in such capacity, “Agent”)
for each of Lenders and the other Credit Parties (as defined in the Loan
Agreement) (Agent and each other Credit Party being referred to individually as
a “Guaranteed Party” and collectively as the “Guaranteed Parties”).

 

Recitals:

 

Guaranteed Parties are
parties with Guarantors and ESSEX GROUP CANADA INC., a Nova Scotia
company (“Canadian Borrower”; together with Guarantors, referred to
herein collectively as “Borrowers” and individually as “Borrower”),
to a certain Second Amended and Restated Loan and Security Agreement dated the
date hereof (as at any time amended, restated, modified or supplemented, the “Loan
Agreement”).  Pursuant to the Loan
Agreement, Guaranteed Parties have agreed, subject to all the terms and
conditions thereof, to make loans and other extensions of credit to Borrowers
from time to time secured by security interests in and liens upon certain
assets of each Borrower.

 

A condition set forth in the
Loan Agreement to Guaranteed Parties’ obligation to make loans or other
extensions of credit to Borrowers, is Guarantors’ execution and delivery of
this Guaranty.

 

To induce Guaranteed Parties
to make loans or otherwise extend credit or other financial accommodations from
time to time to Borrowers under the Loan Agreement, Guarantors are willing to
execute this Guaranty.

 

Agreement:

 

NOW,
THEREFORE, for Ten Dollars ($10) in hand paid and in consideration of the
premises and the mutual covenants and agreements set forth herein, each
Guarantor hereby agrees as follows:

 

1.             Definitions;
Rules of Construction.  Capitalized terms used herein, unless
otherwise defined, shall have the meanings ascribed to them in the Loan
Agreement.  As used herein, the words “herein,”
“hereof,” “hereunder,” and “hereon” shall have reference
to this Guaranty taken as a whole and not to any particular provision hereof;
and the word “including” shall mean “including, without limitation.”

 

2.             Guaranty. 
(a)  In addition
to Guarantors’ Obligations as U.S. Borrowers under the Loan Agreement, each
Guarantor hereby unconditionally and absolutely, jointly and severally,
guarantees to each Guaranteed Party the due and punctual payment, performance
and discharge (whether upon stated maturity, demand, acceleration or otherwise
in accordance with the terms thereof) of all of the Canadian Obligations,
whether direct or indirect, absolute or contingent, secured or unsecured, due
or to become due, joint or several, primary or secondary, liquidated or
unliquidated, now existing or hereafter incurred, created or arising, and
howsoever evidenced, whether created directly to or acquired by assignment or
otherwise by any Guaranteed Party, and whether Borrowers may be liable
individually or jointly with others, and regardless of whether recovery upon
any of such Obligations becomes barred by any statute of limitations, is void
or voidable under any law relating to fraudulent obligations or otherwise or is
or

 

 

becomes invalid or unenforceable for any other reason (all of such
Obligations being jointly referred to herein as the “Guaranteed Obligations”).  Without limiting the generality of the
foregoing, the term “Guaranteed Obligations” as used herein shall
include all debts, liabilities and obligations incurred by a Borrower to any of
Guaranteed Parties in any bankruptcy case or Insolvency Proceeding of such
Borrower and any interest, fees or other charges accrued in any such
bankruptcy, whether or not any such interest, fees or other charges are recoverable
from such Borrower or its estate under 11 U.S.C. § 506 or other Applicable Law.

 

(b)           No Guaranteed Party shall be under any obligation to marshal any assets
in favor of any Guarantor or in payment of any of the Guaranteed
Obligations.  If and to the extent any
Guaranteed Party receives any payment on account of any of the Guaranteed
Obligations (whether from Borrowers, any Guarantor or a third party obligor or
from the sale or other disposition of any Collateral) and such payment or any
part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, receiver or any
other Person under any state, federal or foreign bankruptcy or other insolvency
law, common law or equitable cause, then the part of the Guaranteed Obligations
intended to be satisfied shall be revived and continued in full force and
effect as if said payment had not been made. 
The foregoing provisions of this paragraph shall survive Full Payment of
the Obligations and the termination of this Guaranty.

 

(c)            Agent, for and on behalf of the Guaranteed
Parties, shall have the right to seek recourse against Guarantors to the full
extent provided for herein and against Borrowers to the full extent provided
for in any of the Loan Documents.  No
election to proceed in one form of action or proceeding, or against any Person,
or on any obligation, shall constitute a waiver of any Guaranteed Party’s right
to proceed in any other form of action or proceeding or against any other Person
unless such Guaranteed Party has expressly waived such right in writing.  Specifically, but without limiting the
generality of the foregoing, no action or proceeding by Guaranteed Parties
against Borrowers under the Loan Documents or any other instrument or agreement
evidencing or securing Guaranteed Obligations shall serve to diminish the
liability of Guarantors for the balance of the Guaranteed Obligations.

 

3.             Nature of Guaranty. 
This Guaranty is a
primary, immediate and original obligation of each Guarantor; is an absolute,
unconditional, continuing and irrevocable guaranty of payment of the Guaranteed
Obligations and not of collectibility only; is not contingent upon the exercise
or enforcement by Guaranteed Parties of whatever rights or remedies Guaranteed
Parties may have against Borrowers or others, or the enforcement of any Lien or
realization upon any Collateral or other security that any of Guaranteed
Parties may at any time possess; and shall remain in full force and effect
without regard to future changes in conditions, including change of law or any
invalidity or unenforceability of any Guaranteed Obligations or agreements
evidencing same.  This Guaranty shall be
in addition to any other present or future guaranty or other security for any
of the Guaranteed Obligations, shall not be prejudiced or unenforceable by the
invalidity of any such other guaranty or security, and is not conditioned upon
or subject to the execution by any other Person of this Guaranty or any other
guaranty or suretyship agreement.  This
Guaranty is secured by security interests and other Liens granted by each
Guarantor to Agent pursuant to the Security Documents executed by such
Guarantor.

 

4.             Payment and Enforcement of
Guaranteed Obligations.
 (a)  If any Guarantor should dissolve or become insolvent (within the
meaning of the UCC), or if a petition for an order for relief with respect to
any Guarantor should be filed by or against any Guarantor under any chapter of
the Bankruptcy Code, or if a receiver, trustee, conservator or other custodian
should be appointed for any Guarantor or any of any Guarantor’s property, or if
an Event of Default shall occur and be continuing, then, in any such event
and whether or not any of the Guaranteed Obligations are then due and
payable or the maturity thereof has been accelerated or demand for payment
thereof has been made, Agent, on behalf of Guaranteed Parties, may, without
notice to any Guarantor, make the Guaranteed Obligations immediately due and
payable hereunder as to each Guarantor, and Agent, on behalf of Guaranteed
Parties, shall be

 

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entitled to enforce the obligations of each Guarantor hereunder as if
the Guaranteed Obligations were then due and payable in full.  If any of the Guaranteed Obligations are
collected by or through an attorney at law, Guarantors agree to jointly and
severally pay to Guaranteed Parties reasonable attorneys’ fees and court
costs.  Guarantors shall be jointly and
severally obligated to make payments under this Guaranty, with respect to
Canadian Obligations in Canadian Dollars, or in an amount that is the Dollar
Equivalent of such Canadian Obligations. 
Guarantors shall be obligated to make multiple payments under this
Guaranty to the extent necessary to cause Full Payment of the Guaranteed
Obligations.

 

(b)           Any and all payments by any Guarantor hereunder shall be made free and
clear of and without deduction for any setoff, counterclaim, or withholding so
that, in each case, Guaranteed Parties shall receive, after giving effect to
any taxes (excluding taxes imposed on the overall net income of Guaranteed
Parties to the extent excluded pursuant to the Loan Agreement), the full amount
that they 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).  If for any
reason any Borrower has no legal existence or is under no legal obligation to
discharge any of the Guaranteed Obligations, or if any of the Guaranteed
Obligations become unrecoverable from any Borrower by reason of such Borrower’s
insolvency, bankruptcy or reorganization or by other operation of law or for
any other reason, this Guaranty shall nevertheless be binding on each Guarantor
to the same extent as if such Guarantor had at all times been the principal
obligor on all such Guaranteed Obligations. 
If acceleration of the time for payment of any of the Guaranteed
Obligations is stayed upon the insolvency, bankruptcy, dissolution or
reorganization of debt or for any other reason, all such amounts otherwise
subject to acceleration under the terms of any Loan Documents or other
instrument or agreement evidencing or securing the payment of the Guaranteed
Obligations shall nevertheless be immediately due and payable by Guarantors.

 

(c)            The books and records of Agent showing the
amounts owed to Guaranteed Parties by Borrowers shall be admissible in evidence
in any action or proceeding against or involving any Guarantor as prima facie proof of the items therein set
forth, and the monthly statements of Agent rendered to Borrowers, to the extent
no written objection thereto is made within 30 days from the date of sending
thereof to Borrowers, shall be deemed conclusively correct and shall constitute
an account stated between Guaranteed Parties and Borrowers and shall be binding
on Guarantors.

 

(d)           Each Guarantor acknowledges that Agent is
authorized and empowered to enforce this Guaranty for the benefit of all of the
Guaranteed Parties and to collect from Guarantors the amount of the Guaranteed
Obligations from time to time, in Agent’s own name and without the necessity of
joining any other Guaranteed Party in any action, suit or other proceeding to
enforce this Guaranty.

 

5.             Specific Waivers of Each
Guarantor.  (a)  To the fullest extent permitted by Applicable Law, each
Guarantor does hereby waive notice of each Guaranteed Party’s acceptance hereof
and reliance hereon; notice of the extension of credit from time to time by
Guaranteed Parties to any Borrower and the creation, existence or acquisition
of any Guaranteed Obligations; notice of the amount of Guaranteed Obligations
of Borrowers to Guaranteed Parties from time to time (subject, however, to such
Guarantor’s right to make inquiry of Agent to ascertain the amount of
Guaranteed Obligations at any reasonable time); notice of any adverse change in
any Borrower’s financial condition or of any other fact which might increase
such Guarantor’s risk; notice of presentment for payment, demand, protest and
notice thereof as to any instrument; notice of default or acceleration; all
other notices and demands to which such Guarantor might otherwise be entitled
(except those notices or demands Agent has expressly agreed to provide in the
Loan Agreement); any right such Guarantor may have, by statute or otherwise, to
require Agent or the other Guaranteed Parties to institute suit against any
Borrower after notice or demand from such Guarantor or to seek recourse first
against Borrowers or otherwise, or to realize upon any security for the
Guaranteed Obligations, as a condition to enforcing such Guarantor’s liability
and obligations hereunder; any defense that any Borrower may at any time have
or assert based upon the statute of limitations, the statue of frauds, failure
of consideration, fraud, bankruptcy, insolvency, receivership, lack

 

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of legal capacity, usury, or accord and satisfaction; any defense that
other indemnity, guaranty, or security was to be obtained; any defense or claim
that any Person purporting to bind any Borrower to the payment of any of the
Guaranteed Obligations did not have actual or apparent authority to do so; any
right to contest the commercial reasonableness of the disposition of any
Collateral; any defense or claim that any other act or failure to act by any
Guaranteed Party had the effect of increasing such Guarantor’s risk of payment;
and any other legal or equitable defense to payment hereunder.  Without limiting the generality of the
foregoing, each Guarantor waives all rights to require Agent or the other
Guaranteed Parties to proceed against Borrowers.

 

(b)           To the fullest extent permitted by Applicable
Law, each Guarantor also hereby waives
and renounces (for itself and its successors) any and all rights or
defenses arising by reason of any “one action” or “anti-deficiency” law which
would otherwise prevent Agent or the other Guaranteed Parties from bringing any
action, including any claim for a deficiency, or exercising any other right or
remedy (including any right of setoff) against such Guarantor before or after
any Guaranteed Party’s commencement or completion of any foreclosure action,
whether by judicial action, by exercise of power of sale or otherwise, or any
other law which in any other manner would otherwise require any election of
remedies by Agent or any other Guaranteed Party; and any right that such
Guarantor may have to claim or recover in any litigation arising out of this
Guaranty or any of the other Loan Documents, any special, exemplary, punitive
or consequential damages or any damages other than, or in addition to, actual
damages.

 

6.             Guarantors’ Consents and
Acknowledgments.  (a)  Each Guarantor consents and agrees that, without notice to or
by such Guarantor and without reducing, releasing, diminishing, impairing or
otherwise affecting the liability or obligations of such Guarantor hereunder,
Agent, on behalf of the Guaranteed Parties, may (with or without consideration)
compromise or settle any of the Guaranteed Obligations; accelerate the time for
payment of any of the Guaranteed Obligations following the occurrence and
during the continuation of an Event of Default; extend the period of duration
or the time for the payment, discharge or performance of any of the Guaranteed
Obligations; increase the amount of the Guaranteed Obligations; refuse to
enforce, or release all or any Persons liable for the payment of, any of the
Guaranteed Obligations; increase, decrease or otherwise alter the rate of
interest payable with respect to the principal amount of any of the Guaranteed
Obligations or grant other indulgences to Borrowers in respect thereof; amend,
modify, terminate, release, or waive any Loan Documents or any other documents
or agreements evidencing, securing or otherwise relating to the Guaranteed
Obligations (other than this Guaranty); release, surrender, exchange, modify or
impair, or consent to the sale, transfer or other disposition of, any
Collateral or other property at any time securing (directly or indirectly) any
of the Guaranteed Obligations or on which Guaranteed Parties may at any time
have a Lien; fail or refuse to perfect (or to continue the perfection of) any
Lien granted or conveyed to any Guaranteed Party with respect to any
Collateral, or to preserve rights to any Collateral, or, except to the extent
otherwise provided in the Loan Documents, to exercise care with respect to any
Collateral in any Guaranteed Party’s possession; extend the time of payment of
any Collateral consisting of accounts, notes, chattel paper, payment
intangibles or other rights to the payment of money; refuse to enforce or
forbear from enforcing its rights or remedies with respect to any Collateral or
any Person liable for any of the Guaranteed Obligations or make any compromise
or settlement or agreement therefor in respect of any Collateral or with any
party to the Guaranteed Obligations; release or substitute any one or more of
the endorsers or guarantors of the Guaranteed Obligations, whether parties to
this Guaranty or not; subordinate payment of any of the Guaranteed Obligations
to the payment of any other liability of any Borrower; or apply any payments or
proceeds of Collateral received to the liabilities of any Borrower to any
Guaranteed Party regardless of whether such liabilities consist of Guaranteed
Obligations and regardless of the manner order or of any such application.

 

(b)           Each Guarantor is fully aware of the financial condition of each
Borrower.  Each Guarantor delivers this
Guaranty based solely upon such Guarantor’s own independent investigation and

 

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in
no part upon any representation or statement of any Guaranteed Party with
respect thereto.  Each Guarantor is in a
position to and hereby assumes full responsibility for obtaining any additional
information concerning each Borrower’s financial condition as such Guarantor
may deem material to such Guarantor’s obligations hereunder; and such Guarantor
is not relying upon, nor expecting any Guaranteed Party to furnish such
Guarantor with, any information in any Guaranteed Party’s possession concerning
any Borrower’s financial condition.  If
Agent, in its sole discretion, undertakes at any time or from time to time to
provide any information to any Guarantor regarding Borrowers, any of the
Collateral or any transaction or occurrence in respect of any of the Loan
Documents, neither Agent nor any of the other Guaranteed Parties shall be under
any obligation to update any such information or to provide any such information
to such Guarantor on any subsequent occasion.  Each  Guarantor
hereby knowingly accepts the full range of risks encompassed within a contract
of “Guaranty,” which risks include, without limitation, the possibility that
Borrowers will contract additional indebtedness for which such Guarantor may be
liable hereunder after Borrowers’ financial condition or ability to pay their
lawful debts when they fall due has deteriorated.

 

7.             Continuing Nature of Guaranty. 
(a)  This
Guaranty shall continue in full force and effect until Full Payment of the
Guaranteed Obligations.  Each Guarantor
acknowledges that there may be future advances by Guaranteed Parties to
Borrowers (although Guaranteed Parties may be under no obligation to make such
advances) and that the number and amount of the Guaranteed Obligations are
unlimited and may fluctuate from time to time hereafter, and this Guaranty
shall remain in force at all times hereafter, whether there are any Guaranteed
Obligations outstanding from time to time or not until Full Payment of the
Guaranteed Obligations.

 

(b)           To the fullest extent permitted by Applicable Law, each Guarantor
waives any right that such Guarantor may have to terminate or revoke this
Guaranty.  If, notwithstanding the
foregoing waiver, any Guarantor shall nevertheless have any right under
Applicable Law to terminate or revoke this Guaranty, which right cannot be
waived by such Guarantor, such termination or revocation shall not be effective
until a written notice of such termination or revocation, specifically
referring to this Guaranty and signed by such Guarantor, is actually received
by an officer of Agent who is familiar with Borrowers’ account with Guaranteed
Parties and this Guaranty; but any such termination or revocation shall not
affect the obligation of any Guarantor or any Guarantor’s successors or assigns
with respect to any of the Guaranteed Obligations owing to Guaranteed Parties
and existing at the time of the receipt by Agent of such revocation or to arise
out of or in connection with any transactions theretofore entered into by
Guaranteed Parties with or for the account of Borrowers.  If any Guaranteed Party grants loans or other
extensions of credit to or for the benefit of any Borrower or takes other
action after the termination or revocation by any Guarantor but prior to Agent’s
receipt of such written notice of termination or revocation, then the rights of
such Guaranteed Party hereunder with respect thereto shall be the same as if
such termination or revocation had not occurred.

 

8.             Subordination; Postponement of
Subrogation Rights.  (a) 
Any and all present and future debts and obligations of Borrowers to Guarantors
are hereby subordinated to the full payment of the Guaranteed Obligations by
Borrowers to Guaranteed Parties.  If any
payment shall be made to any Guarantor on account of any indebtedness owing by
Borrowers to such Guarantor during any time that any Guaranteed Obligations are
outstanding, such Guarantor shall hold such payment in trust for the benefit of
Guaranteed Parties and shall make such payments to Agent to be credited and
applied against the Guaranteed Obligations, whether matured or unmatured, in
accordance with the discretion of Agent, pursuant to the terms of the Loan
Agreement.  The provisions of this Guaranty
shall be supplemental to and not in derogation of any rights and remedies of
any Guaranteed Party or any affiliate of any Guaranteed Party under any
separate subordination agreement that such Guaranteed Party or such affiliate
may at any time or from time to time enter into with any Guarantor.

 

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(b)           Until Full Payment of the Guaranteed Obligations, no Guarantor shall
have any claim, right or remedy (whether or not arising in equity, by contract
or Applicable Law) against Borrowers or any other Person by reason of any
Guarantor’s payment or other performance hereunder.  Without limiting the generality of the
foregoing, each Guarantor hereby subordinates to the Full Payment of the
Guaranteed Obligations any and all legal or equitable rights or claims that
such Guarantor may have to reimbursement, subrogation, indemnity and
exoneration and agrees that until Full Payment of all of the Guaranteed
Obligations, such Guarantor shall have no recourse to any assets or property of
Borrowers (including any Collateral) and no right of recourse against or
contribution from any other Person in any way directly or contingently liable
for any of the Guaranteed Obligations, whether any of such rights arise under
contract, in equity or under Applicable Law.

 

9.             Other Guaranties.  If
on the date of Guarantors’ execution of this Guaranty or at any time thereafter
any Guaranteed Party receives any other guaranty from any Guarantor or from any
other Person of any of the Guaranteed Obligations, the execution and delivery
to such Guaranteed Party and such Guaranteed Party’s acceptance of any such
additional guaranty shall not be deemed in lieu of or to supersede, terminate
or diminish this Guaranty, but shall be construed as an additional or
supplementary guaranty unless otherwise expressly provided in such additional
or supplementary guaranty; and if, prior to the date hereof, any Guarantor or
any other Person has given to any Guaranteed Party a previous guaranty or
guaranties, this Guaranty shall be construed to be an additional or
supplementary guaranty and not to be in lieu thereof or to supersede, terminate
or diminish such previous guaranty or guaranties.

 

10.          Application of Payments.  Unless otherwise required by
Applicable Law or a specific agreement to the contrary, all payments received
by Guaranteed Parties from Borrowers, Guarantors or any other Person with
respect to the Guaranteed Obligations or from proceeds of the Collateral may be
applied (or reversed and reapplied) by Agent to the Guaranteed Obligations in
accordance with the Loan Agreement, without affecting in any manner any
Guarantor’s liability hereunder.

 

11.          Limitation on Guaranty.  To the extent any performance of this
Guaranty would violate any applicable usury statute or other Applicable Law,
the obligation to be fulfilled shall be reduced to the limit legally permitted,
so that this Guaranty shall not require any performance in excess of the limit
legally permitted, but such obligations shall be fulfilled to the limit of
legal validity.  Nothing in this Guaranty
shall be construed to authorize Guaranteed Parties to collect from Guarantors
any interest that has not yet accrued, is unearned or subject to rebate or is
otherwise not entitled to be collected by Guaranteed Parties under Applicable
Law.   The provisions of this paragraph shall control
every other provision of this Guaranty.

 

12.          Notices.  All notices, demands, requests, consents,
approvals and other communications required or permitted hereunder must be in
writing and shall be effective upon receipt by the noticed party.  Acceptable methods for giving notices
hereunder shall include first-class U.S. mail, facsimile transmission and
commercial courier service.  Regardless
of the manner in which notice is provided, notices may be sent to the addresses
for Agent and Guarantors as set forth above or to such other address as any
party may give to the others for such purpose in accordance with this Section.

 

13.          Governing Law; Venue.  This Guaranty, all acts and
transactions hereunder and the rights and obligations of the parties hereto
shall be governed, construed and interpreted according to the internal laws of
the State of Georgia.  All actions, suits
or proceedings arising directly or indirectly hereunder may, at the option of
Agent, be litigated in courts having situs within the State of Georgia, and
each Guarantor hereby expressly consents to the jurisdiction of any state or
federal court located within said state and agrees that any service of process
in such action or proceedings may be made by personal service upon such
Guarantor wherever such Guarantor may be then located, or by certified or
registered mail directed to such Guarantor at such Guarantor’s last known
address; provided, however, that the foregoing shall not prevent
Agent or any of the other Guaranteed Parties from bringing any action, 

 

6

 

enforcing any Lien  or
judgment or exercising any rights or remedies against any Guarantor, against
any Collateral, or against any property of any Guarantor, within any other
county, state or other foreign or domestic jurisdiction.  Each Guarantor waives any objection to venue
and any objection based on a more convenient form in any action instituted
under this Guaranty.

 

14.          Successors and Assigns.  All the rights, benefits and privileges of
Guaranteed Parties shall vest in, and be enforceable by Guaranteed Parties and
their respective successors, transferees and assigns.  This Guaranty shall be binding upon each
Guarantor and each Guarantor’s successors and assigns.  Without limiting the generality of the
foregoing, any Guaranteed Party may assign, in accordance with the terms of the
Loan Agreement, to one or more banks or other entities all or any part of the
Guaranteed Obligations, whereupon each such bank or other entity shall become
vested with all of the rights in respect thereof granted to such Guaranteed
Party herein or otherwise in respect hereof.

 

15.          Miscellaneous.  This Guaranty expresses the entire understanding of the parties with
respect to the subject matter hereof and may not be changed orally, and no
obligation of any Guarantor can be released or waived by any Guaranteed Party
or any officer or agent of any Guaranteed Party, except by a writing signed by
a duly authorized officer of Agent.  If
any part of this Guaranty is determined to be invalid, the remaining provisions
of this Guaranty shall be unaffected and shall remain in full force and effect.  No delay or omission on any Guaranteed Party’s
part to exercise any right or power arising hereunder will impair any such
right or power or be considered a waiver of any such right or power, nor will
any Guaranteed Party’s action or inaction impair any such right or power, and
all of Guaranteed Parties’ rights and remedies hereunder are cumulative and not
exclusive of any other rights or remedies that Guaranteed Parties may have
under other agreements, at law or in equity.  Time is of the essence of this
Guaranty and of each provision hereof. 
The section headings in this Guaranty are inserted for convenience of
reference only and shall in no way alter, modify or define, or be used in
construing, the text of this Guaranty. 
This Guaranty may be executed in multiple counterparts, all of which
taken together shall constitute one and the same Guaranty and the signature page of
any counterpart may be removed therefrom and attached to any other counterpart.

 

16.          Jury Trial Waiver.  Guarantors and Guaranteed Parties (by their
acceptance hereof) each hereby waives the right to a jury trial in any action,
suit, proceeding or counterclaim arising out of or related to this Guaranty,
and each Guarantor further waives rights arising under applicable statutes or
otherwise to require any Guaranteed Party to institute suit against any
Borrower or to exhaust any Guaranteed Party’s rights and remedies against any
Borrower or any Collateral, each Guarantor being bound to the payment of any
and all Guaranteed Obligations to Guaranteed Parties, whether now existing or
hereafter accruing as fully as if such indebtedness were directly owing to
Guaranteed Parties by such Guarantor.

 

[Remainder
of page intentionally left blank; signatures begin on following page.]

 

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IN WITNESS WHEREOF, each
Guarantor has caused this Guaranty to be signed, sealed and delivered by its
duly authorized officers, on the day and year first written above.

 

	
   

  	
  SUPERIOR ESSEX COMMUNICATIONS,

  
	
   

  	
  LP

  
	
   

  	
  (“Guarantor”)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ESSEX GROUP, INC.

  
	
   

  	
  (“Guarantor”)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

Continuing Guaranty AgreementExhibit 10.1

 

LOAN
AMENDMENT AGREEMENT

 

This Loan Amendment Agreement dated as of May 16,
2008 (this “Agreement”), is made by and among General Electric Capital
Corporation (“GE Capital”), Oxford Finance Corporation (“Oxford” and, together
with GE Capital, “Lenders”) and Favrille, Inc. a Delaware corporation
(“Borrower”).

 

WITNESSETH:

 

WHEREAS, GE Capital and Borrower are parties to
that certain Master Security Agreement dated as of December 30, 2005 as
amended by an Amendment No. 1 dated as of December 30, 2005, pursuant
to which GE Capital made a series of loans (the “GE Loans”) to Borrower arising
under and evidenced by a series of promissory notes delivered by Borrower to GE
Capital (the foregoing Master Security Agreement, the promissory notes, this Agreement,
and any other documents evidencing or relating to the obligations arising
thereunder, as any such documents may have been amended, restated, modified or
supplemented from time to time, are hereafter referred to as the “GE Loan
Documents”), which GE Loans are secured by a security interest in certain
property owned by Borrower (the “GE Collateral”); and

 

WHEREAS, Oxford and Borrower are parties to that
certain Master Security Agreement dated as of July 26, 2004, as amended by
an Amendment No.1 dated December 29, 2004, and further amended by
Amendment No.2 dated as of June 16, 2005, and further amended by Amendment
No. 3 dated as of December 30, 2005, pursuant to which Oxford made a
series of loans (the “Oxford Loans”) to Borrower arising under and evidenced by
a series of promissory notes delivered by Borrower to Oxford (the foregoing
Master Security Agreement, the promissory notes, this Agreement, and any other
documents evidencing or relating to the obligations arising thereunder, as any
such documents may have been amended, restated, modified or supplemented from
time to time, are hereafter referred to as the “Oxford Loan Documents”), which
Oxford Loans are secured by a security interest in certain property owned by
Borrower (the “Oxford Collateral”); and

 

WHEREAS, the GE Loan Documents Master Security
Agreement dated as of July 26, 2004, as amended by an Amendment No.1 dated
December 29, 2004, and further amended by Amendment No.2 dated as of June 16,
2005, and further amended by Amendment No. 3 dated as of December 30,
2005 (the “GE Letter of Credit Covenant”); and

 

WHEREAS, the Oxford Loan Documents include a
covenant that requires Borrower to cause the issuance of a standby letter of
credit to Oxford in the event that Borrower’s unrestricted cash equivalents in
certain deposit accounts fall below $15,000,000 (the “Oxford Letter of Credit
Covenant”); and

 

WHEREAS, Borrower has requested that each Lender agree to
reduce the $15,000,000 figure in its respective covenant to $14,500,000; and

 

WHEREAS, each Lender is willing to do so on the terms and
conditions set forth herein.

 

NOW, THEREFORE, in consideration of the premises, the
covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties do hereby agree as follows:

 

STATEMENT OF TERMS

 

.1             Amendment of GE
Letter of Credit Covenant; Payment of Amendment Fee.  GE Capital and Borrower hereby agree that the GE
Letter of Credit Covenant is hereby amended to delete the reference to
“$15,000,000” and to replace it with “$14,500,000.”  Other than such specific amendment, all of
the terms and conditions applicable to 

 

 

the GE Letter of Credit Covenant remain in full
force and effect and are not modified by this Agreement.  In consideration of GE Capital agreeing to
the foregoing, Borrower agrees to pay GE Capital a fee in the amount of
$16,693.42 (the “GE Capital Amendment Fee”). 
The GE Capital Amendment Fee shall be fully-earned upon the execution
and delivery of this Agreement and shall constitute part of the obligations of
Borrower to GE Capital secured by the GE Capital Collateral.  The GE Capital Amendment Fee shall be paid by
Borrower to GE Capital by wire transfer on June 2, 2008.

 

.2             Amendment of
Oxford Letter of Credit Covenant; Payment of Amendment Fee.  Oxford and Borrower hereby agree that the Oxford
Letter of Credit Covenant is hereby amended to delete the reference to
“$15,000,000” and to replace it with “$14,500,000.”  Other than such specific amendment, all of
the terms and conditions applicable to the Oxford Letter of Credit Covenant
remain in full force and effect and are not modified by this Agreement.  In consideration of Oxford agreeing to the
foregoing, Borrower agrees to pay Oxford a fee in the amount of $13,306.58 (the
“Oxford Amendment Fee”).  The Oxford
Amendment Fee shall be fully-earned upon the execution and delivery of this
Agreement and shall constitute part of the obligations of Borrower to Oxford
secured by the Oxford Collateral.  The
Oxford Amendment Fee shall be paid by Borrower to Oxford by wire transfer on June 2,
2008.

 

.3             GE Loan
Documents and Oxford Loan Documents Are Separate and Distinct.  The parties acknowledge that they are entering into
a single agreement modifying the GE Loan Documents and the Oxford Loan
Documents solely for administrative convenience.  By entering into this Agreement, neither GE
Capital nor Oxford is acquiring or undertaking any rights or obligations under
the loan documents of the other Lender. 
The parties hereto agree that the GE Loan Documents and the Oxford Loan
Documents shall remain separate and distinct legal obligations of the parties
thereto.  Nothing herein shall prevent or
inhibit either GE Capital or Oxford from entering into any future amendment,
waiver, consent, or other agreement with Borrower under its respective loan
documents and each Lender reserves its rights to do so; provided that nothing
herein is intended to alter the terms of the Intercreditor Agreement between GE
Capital and Oxford which shall continue in effect on the terms set forth
therein.

 

.4             Acknowledgement of Obligations.  Except as expressly modified, consented to, or
waived under this Agreement, Borrower hereby acknowledges, confirms, and
ratifies all of the terms and conditions set forth in, and all of its
obligations under, each of the GE Loan Documents and the Oxford Loan
Documents.  All amounts owed by Borrower
to the respective Lender thereunder are unconditionally owing by Borrower,
without offset, defense, or counterclaim of any kind.

 

.5             Binding Effect of Documents.  Borrower hereby acknowledges, confirms, and agrees
that: (a) except as otherwise modified by the terms of this Agreement,
each of the GE Loan Documents and the Oxford Loan Documents has been duly executed
and delivered by Borrower, and each is in full force and effect as of the date
hereof; (b) the agreements and obligations of Borrower contained in such
documents and in this Agreement constitute the legal, valid, and binding
obligations of Borrower, enforceable against it in accordance with their
respective terms, and Borrower has no valid defense to the enforcement of such
obligations; and (c) each Lender is and shall be entitled to the rights,
remedies, and benefits provided in its loan documents and applicable law.

 

.6             Expenses.  Borrower agrees to reimburse each Lender for
all reasonable costs and expenses, including reasonable attorneys fees,
incurred by such Lender in connection with (a) Borrower’s request for an
amendment or waiver with respect to the GE Capital Letter of Credit Covenant
and the Oxford Letter of Credit Covenant, (b) the negotiation,
documentation, and implementation of this Agreement, and (c) any
subsequent request by Borrower for a further amendment or waiver with respect
to the GE Capital Letter of Credit Covenant and the Oxford Letter of Credit
Covenant or any other provision of the GE Capital Loan Documents or the Oxford
Loan Documents.  The costs and expenses
referred to in the foregoing clauses (a) and (b) are hereafter referred
to as the “Current Lender Costs.”  The
costs and expenses referred to in the foregoing clause (c) are hereafter
referred to as the “Future Lender Costs.” 
Borrower agrees to pay to each Lender its Current Lender Costs by wire
transfer on June 2, 2008; provided that the applicable Lender has invoiced
Borrower for such Current Lender Costs on or before May 28, 2008.  Any other Current Lender Costs and all Future
Lender Costs shall be paid to the applicable Lender within five business days
of such Lender invoicing Borrower therefor.

 

.7             Further
Assurances.  Borrower agrees that it shall, at its own
expense and upon the reasonable written request of a Lender, duly execute and
deliver, or cause to be duly executed and delivered, to such Lender such
further documents and do and cause to be done such further acts as may be
necessary or proper in the reasonable opinion of such Lender to carry out more
effectively the provisions and purposes of this Agreement and the other Loan
Documents.

 

 

.8             General Representations and Warranties.  To induce each Lender to enter into this Agreement,
Borrower hereby represents and warrants to each Lender that: (a) each
representation and warranty of Borrower set forth in the GE Loan Documents and
the Oxford Loan Documents is true and correct in all material respects on and
as of the date hereof (except to the extent that any such representation or
warranty expressly relates to a prior specific date or period, in which case it
is true and correct as of such prior date or period); (b) no default has
occurred and is continuing as of this date under the GE Loan Documents or the
Oxford Loan Documents; (c) Borrower has the power and is duly authorized
to enter into, deliver and perform its obligations under this Agreement and to
perform its obligations under the GE Loan Documents and the Oxford Loan
Documents; and (d) this Agreement and each of the GE Loan Documents and
the Oxford Loan Documents is the legal, valid and binding obligation of
Borrower enforceable against it in accordance with its terms.

 

.9             Conditions Precedent to Effectiveness of this Agreement.  This
Agreement shall become effective upon the satisfaction (or waiver by both
Lenders in the sole discretion of each) of each of the following conditions
precedent (the “Agreement Effective Date”):

 

.A                                   Each Lender shall have received one or more
counterparts of this Agreement duly executed and delivered by Borrower and each
other person party hereto, together with such other documents, if any, as
either Lender shall specify.

 

.10           Release.  Borrower hereby releases, remises, acquits and
forever discharges each Lender and each of their employees, agents,
representatives, consultants, attorneys, fiduciaries, officers, directors,
partners, predecessors, successors and assigns, subsidiary corporations, parent
corporations, and related corporate divisions (collectively, the “Released
Parties”), from any and all actions and causes of action, judgments,
executions, suits, debts, claims, demands, liabilities, obligations, damages
and expenses of any and every character, known or unknown, direct and/or
indirect, at law or in equity, of whatsoever kind or nature, for or because of
any matter or things done, omitted or suffered to be done by any of the
Released Parties prior to and including the Agreement Effective Date, which
arises out of or is connected to the GE Loan Documents and the Oxford Loan
Documents (collectively, the “Released Matters”).  Borrower acknowledges that the agreements in
this Section are intended to be in full satisfaction of all or any alleged
injuries or damages arising in connection with the Released Matters.

 

Without limiting the generality of the foregoing,
Borrower hereby waives the provisions of any statute that prevents a general
release from extending to claims unknown by the releasing party.  By entering into this release, Borrower
recognizes that no facts or representations are ever absolutely certain and it
may hereafter discover facts in addition to or different from those which it
presently knows or believes to be true, but that it is the intention of
Borrower to hereby to fully, finally and forever settle and release all
matters, disputes and differences, known or unknown, suspected or
unsuspected.  Accordingly, if Borrower
should subsequently discover that any fact that it relied upon in delivering
this release was untrue, or that any understanding of the facts was incorrect,
Borrower shall not be entitled to set aside this release by reason thereof,
regardless of any claim of mistake of fact or law or any other circumstances
whatsoever.  Borrower acknowledges that
it is not relying upon and has not relied upon any representation or statement
made by either Lender with respect to the facts underlying this release or with
regard to Borrower’s rights or asserted rights.

 

This release may be pleaded as a full and complete
defense and/ or as a cross-complaint or counterclaim against any action, suit,
or other proceeding that may be instituted, prosecuted or attempted in breach
of this release.  Borrower acknowledges that
the release contained herein constitutes a material inducement to each Lender
to enter into this Agreement and that neither Lender would not have done so but
for its expectation that such release is valid and enforceable in all events.

 

.11           Continuing Effect of Documents.  Except as
expressly modified, amended, or waived hereby, the provisions of each of the GE
Loan Documents and the Oxford Loan Documents, and the liens granted thereunder,
are and shall remain in full force and effect.

 

 

.12           Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be
deemed to be an original and all of which when taken together shall constitute
one and the same document.  Any signature
delivered by a party via facsimile or electronic transmission shall be deemed
to be an original signature hereto.

 

.13           Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF DELAWARE
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT REGARD TO THE
PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.

 

[Remainder of Page Intentionally Left Blank; Signatures Begin on
Next Page]

 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed and delivered as of the day and year
specified at the beginning hereof.

 

 

	
   

  	
  FAVRILLE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tamara A. Seymour

  
	
   

  	
  Name:

  	
    Tamara A.
  Seymour

  
	
   

  	
  Title:

  	
    Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC
  CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Towers

  
	
   

  	
  Name:

  	
    Scott
  Towers

  
	
   

  	
  Title:

  	
    Duly
  Authorized Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  OXFORD FINANCE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ T. A. Lex

  
	
   

  	
  Name:

  	
    T. A. Lex

  
	
   

  	
  Title:

  	
      COO

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