|
~' s . a.rst,t., ~omp.a„ III IIIIIIIIIIIII III ~~~~, r
<br />CONTINL'iNG GUARANTY .4ND wA:VER
<br />November ., Ig 90
<br />THlS CONTINCING GGARANTY AND WAIVER Ihereinaher called "Guannry") ~s executed by the undenrtned rhernnafter jointly and
<br />severally called "Gwrantor'") ~n favor of CONGRESS FINANCIAL CORPORATION (WESTERN) Ihemnafter called "Contms"), whose address
<br />is 225 South Lake Avenue, Pasadena Calsfornla 91101 wish respect to the Indebtedness of.CF.6l STEEL. CO.RPORATSON.. Oebtor
<br />.an4.OeDtor-ln-POSSessiorr ......... ... ........ ..... Ihereinaftet:allcd "Debtor").
<br />I. Continwnt Guaranty. For valuable comrdmnon, Guarantor hereby uncondi[ionally tuaransm and promises to pay on demand to
<br />Contms at the address indicated above, or err such o[ha addms u Contms may direct, in lawful money of she United Sutra, and to perform
<br />for [he benefit of Contms, all Indebtedness of Debtor now or hemftet owsnt to or held by Contms. As used herein. the term "Indebtedness"
<br />is used in its most comprehensive sense and shall mean and include wrthou[ liauutron: la) any and W debts, dosses oblitations, liabrlrtret..n•
<br />deb[edness atmments rapmenu[ions warranties and tuaranaes of Debtor or any one or mole of them, hemofore now. or hereafter made
<br />incurred. or crated. whether direttly to Contms or acgWred by Contms by asrtnmen[ or otherwise, or held by Contms on behalf of others.
<br />however arisrnt or evidenced, whethet volunury or~snvolunury, due or not due, absolute or contintent, IigWdated or uNiqurdatM. certasn or
<br />uncertain, determined or undetermined. monetary or nonmonesary, written or oral, whether a principal. suety. endorser, tuanntor err other
<br />wi1R whethet now exisunt or hercafur annn(.~rhether dvect or indirect, joint or several. pnmay of secondary, soured or unsaured, ontrnal.
<br />ranewed or extended. whether arissnt under any tuanntY. mdonement or undenakint which Contms may make or issue to other for Debtor's
<br />amount and whether Debtor may be liable thersron individually or loin[ly wuh others, and ratardleu of whether recovery thereon may be or
<br />htmha become barred by aaY suture of limiuuons discharted in mY bankrvDtcy, insolvenq or whet proceadint, or oNerwise unenforceable
<br />includint without limsuaan any of the same which asst from or in connenion with Contms' acquisition of a secunty interns or other intemt
<br />in Debtor's equipment, inventory, accounts conditional sale or lease atsemm[s, chats) papa, dnf[s notes. bills, imtrvmmn, attepunces.
<br />trot receipts, contracts tmml sntantibles or other obGµtions or chosn•in•attion, or say other property. or the hetorin{ of the accounts
<br />of Debtor. or in any other manner, and Ibl any accommodaton extended to Oebror with mpect to Contms' rtiakint or loinint is applicatsons
<br />for Iettm of credi[, acceptance of dnfn or mdorxmen[ of no[et or other iaswmmn by Conpess for Debtor's ucount and benefi[, and wheth•
<br />et arifint directly or acquired from othets Iwhetha acquired outritht or by assiµmm[ as eolla[eral security from another and includint, without
<br />limiutioa. Contms' Daniciw[iom or in[etatt se Debtor's oblituions to o[het71: and Icl all ammdmm[s mddifiwdons ranewah and exten•
<br />siom of a~ or all of she foretoint, ircudint without Gmiuaon amendments madifieaaoos renewals add extemiom which arc evidenced by
<br />any her or additional instrvmmt, documm[ or atnemmt; and Id) any sad all at[enoenu, documents and imwmm[s evidencint any of the
<br />foretoint or under which any of the foretoiat may have been suut4 crea[t4 assumed or tuarmteed: Iel all Contsess' charter commiuions.
<br />intemts, expettses, and fees: and (f1 any aM all a[torneys' fees court cm[s and eoGeetion ehartes meurted is mdeawant m collet[ or enforce
<br />my of the foretoint ataim[ Debtor, Guarantor, or say other person liable [hereon (whether or no[ sW[ be brouth[) and my othet expenses
<br />of, for or sncidennl w mllecuon thereof. Ace used herein the tetm "Debtor" shW include say suaeswr to the buaaess slid assets of Debtor.
<br />and shag also include any trustee or otMr 11due1ary Aarufter appointed as a legal reprasentatlw of Borrorer or with
<br />rasDett to DroDerty of the estate of Debtor, whether under Chapter 11 of the Bankruptcy Coda or any sub Sequent
<br />Chapter 7 • and all sndebtedaess GabiGtia, sad oblitaaom intoned by any such person shall be included in the Indebtedness tuaranteen
<br />hereby. Guarantor hereby ackaowledta and sera thu acceptance by Congas of tNS Guaranty shall not tomtituu a commitmm[ of any kind
<br />by Contms ro permit Debtor ro incur Indeb[rdetss ro Contms. All sums due under this Guaranty shall bear sn[emt from the date due anal
<br />the date paid at the Iathat nu charted wnN mpett to any of the indebtedness. • case and the successor of Debtor upon coot luston
<br />of Debtor's pending Chapter 11 case:
<br />2. tA'aiven. Giratemr hereby waive: (al ptesm[mm[ for paymen[, notice of duhonoc demaa4 prouss and antis thereof as to any
<br />inssrvment, and all other aoacet add demands to which Guannror m,Nt De msisled, includint wi[hou[ limiuaoa noaa of all of the followint:
<br />the acceptance hereof: tba aeea0a !•i "• or as:pYisiuon of say Indebtednets; the amount of the Indebtedness Isom time ro lime outsundsnt;
<br />non•paymm[ o! my Iddebtadana: sWt or ukiat oNa action by Contress atainn, and soy oNa ootiss s4 say party Gable oe accoun[ of [he
<br />Indebtedness )includint wiNou[ Gitduaod Guarantotl: say foreelosun sale or athet duposi[ioa of soy property whie6 setvres any or all of
<br />she Indebtednoa or which secures the obhtaaom of any o[ha tuannror of any or all of Nt ladebtednesa: any Wverfe chaaµ is Debor's finan•
<br />sal poadoa: any other fan wNCh adth[ itrcrease Guoansor's ruk: soy defaWS partial payrrsd[ or roe-paymm[ of all or soy pan of [he In•
<br />deb[edaesa: the accvr[ma of my o[ha Event of DefaW[ (v heraaafla de[iaedl: say and aV apeemedu sad arrant®mu between Contrcss
<br />sad Debtor sad say eharyes madifitatiods amessdmmu, or aaeeaom [hereof, and any tevxuioo, rbadifiwaoa amendment or release of
<br />say tuertntY of say or all of she Indebudrsas by soy penoa (includint nthow Giaitadoe airy aNa pmoo sitniet skis Guano[YI: Ibl the
<br />rich[ m a jury vial in asry sauna Drat err eounsssrLim brdutht by or ataiast Guenator ad say moon whetaoever ariaint ou[ of or
<br />N soy way coeriected wdh this Guataa[y; (e) say rith[ m requue Coopass ro imams sWt eta;•.. or m tahauu iu rithu add remedia aµinst.
<br />Debtor of airy other penod, or so proceed etaina say Ptopaty of esry kind whiN retina all or soy pan of the lada4redaas or ro turcise
<br />arty tithe of offset or other rich[ wiN mpea m a[ry manes ersdiu or deposit aaomv hdd by or maintained riN Coopers or airy Indebtedness
<br />of Contms to Debtor, or [o eaereix say other nth[ or power, or Dunne any other remedy Coatrsu may have: Id) ary defedse arisint by reason
<br />of any imalidi[Y. isretulasitY or uamforeeabiGry of aG or soy pan of she Indeb[edness or of say seeuriry therdor, lei say defense arismt D.
<br />rason of esry disability or other defense of Debtor or soy usher tuaranmr or any endone4 co-maker or ether paws or by reason of the cessa~
<br />tiod from any rouse rhetsoevet of arty GabOiry of Debtor or any oNa tuanntor or any mdoner, w•maket Ot oNa Dawn wish mpect ro
<br />all or soy pat of the [ndebsedness err by reason of asry acs or omission of Contress or o[hen which diredY or iadireetly mule in the diseharte
<br />err raltaaa of Debmr or asry other tuanatar or say other perwa or say Indebtednns or mY security therefor. whether by operuion of law or
<br />otherrise; (f) W rithu of subroµ[ioa raimbursemms ncoursa sad indemairy whatsoever wiN mpeet m the [odebtedna, say suer or Dro0-
<br />eny at Debtor or aey coDaural or seturiry few my or all of the liulebudaesa or arty tuaiaetea Natof: W say defense wine by Hawn of
<br />airy failure of Contms to ab,.ia, perfect, rtiaiataio or keep is forte any secirty intemt in, or Gm or mmmDnece upon say proDertY of Debar
<br />or aaY other person, or tb Drown such DroDertY. lhl arty defenx arissat fmm the failure by Coapas m petfeet or con[saue tram petfetnon ~i
<br />arty lien or sewn[y intent N say sacuritY or other coWtenl for Ne ladebtednen err any deuY by Congas in pafec[iat or mfarnnt any w:n
<br />Gm or security iasrar, (i) any defense bated upon arty failure of Contms to pee Guanm[dr. Debtor, m ahem entice of any ale or other
<br />dispoaaon of airy property secvnnt ern' or zV of the frtdebtedeas or say defects in airy such m[ia [ha may Dc grad. or any failure of Contress
<br />to mmplY with say provision of appGwbk far id mfordat any savritY intern[ m or Gm upon aaY properly secvnat soy or W of the In~
<br />debtednen includint, but not limited tq say failure by Contms m dispose of say proDertY ftturirit any Or W of she lodebtedna W a timely
<br />or commercially reawnable rtuaaer. (j) arty defense based upon or grant out of arty bmkrvDtcy, iewlvedry, reortaaiaation, artantemmt, nad-
<br />jw[mmt of debt, liquida[ron or diswlu[ion proteedint commenced by or atainst Debtor or arty other tuaranmr or any mdorsa, to•maka or
<br />other person, iriclirdint wuhout limitation any diaeharte of. or ba aµinst co0ectint, arty of the ladebredaesa (iadudint ritAOW Gmiutlae any
<br />interest the[eonl, in or a a molt of aaY such prmceedint; lkl any defense, other or eoueterclaim m say GrNili[Y under Nis GuerantY, ll) aaY
<br />countetclaim atunu Debror. Iml say defame based upon airy whet nrcumsmw which with[ o[hersrise cowituu ^ defense aniLble sa or
<br />1eµ1 or egwtaDle diacharta of. Debtor in mpen of any the Indebtedness or of any security therefor or Ilse Gvanotor is mpeet of thu Guarnn•
<br />ry; and Inl Ne beneRt of any and W sututa of lirmuaoa with mpeet to airy anwn based upon arsine out of or teWed m the Ii[dabtedneu
<br />and thu Guaranty. Unul all of Ne Indebtedsien has been pu4 petforme0. and diacharted in full. mthint shW dischat{e or satis[Y the liability
<br />of Guatarrwr heraundet euryr the full performance and payment of sU of the ladebtedneta.
<br />•• rhether artslnq before, durfng or after the conversion or dtsmtssal of DeDtar's pending Chapter 11
<br />ease or the conffrmatton of any plan of reorgantzetlon of Debtor
<br />
|