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EXHIBIT 10.2 (e)
CONTINUING GUARANTY
TO: BANK ONE, ARIZONA, NA, a national banking association
1. For valuable consideration, the undersigned ("Guarantors"), jointly and
severally, unconditionally guarantee and promise to pay to BANK ONE, ARIZONA, NA
("Bank"), or order, on demand, in lawful money of the United States, any and all
Indebtedness of XXXXXX STEEL COMPANY, an Arizona corporation ("Borrower"), to
Bank. The word "Indebtedness" includes any and all loans, debts, obligations and
liabilities of whatever nature of Borrower owed to Bank whenever and however
made, incurred or created, whether recovery upon such Indebtedness may be barred
by any statue of limitations, whether such Indebtedness may be otherwise
unenforceable, and whether Borrower is liable individually or jointly with
others.
2. The liability of Guarantors shall not exceed at any one time the total
of (i) the principal sum of TEN MILLION AND NO/100THS Dollars ($10,000,000.00)
plus (ii) all interest owed thereon plus (iii) all costs, attorneys' fees,
losses and expenses which may be incurred by Bank by reason of Borrower's
default in the payment of the Indebtedness.
3. This Guaranty shall bind and obligate the undersigned and their
successors and assigns with Borrower, jointly and severally, for the payment of
the Indebtedness. A separate action may be commenced against Guarantors whether
action is brought against Borrower or whether Borrower may be joined in any such
action. Guarantors waive any defenses Borrower may now or hereafter have to
payment of the Indebtedness.
4. Guarantors authorize Bank, without notice or demand and without
affecting Guarantors' liability hereunder, to, from time to time: (a) renew,
compromise, extend, revise, accelerate or otherwise change the time for payment
of, or otherwise change the terms of, the Indebtedness or any part thereof (
including the rate of interest thereon); (b) take security for the payment of
this Guaranty or the Indebtedness, and exchange, enforce, waive, or release any
such security, or take additional security; (c) apply any proceeds from such
security or take additional security; (d) apply any proceeds from such security
and direct the order or manner of sale of such security as Bank, in its
discretion, may determine; and (e) release or substitute any one or more of the
Guarantors or additional Guarantors.
5. The obligation of the Guarantors shall remain in full force and effect
until the entire Indebtedness shall have been paid, and shall not be affected
upon the happening of any event, including without limitation, any of the
following: (a) the Bank's failure to give notice to the Guarantors of the
occurrence of any event of default in the payment of the Indebtedness or
performance of the Borrower; (b) the Bank's waiver of the payment, performance
or observance by the Borrower of any obligations, covenants or agreements
related in any way to the Indebtedness; (c) the Bank's impairment, modification,
release or amendment of any obligation, covenant or term of any agreement
related to the Indebtedness; (d) the voluntary or involuntary liquidation,
dissolution, sale or other disposition of any of the Borrower's assets or any
insolvency, bankruptcy, reorganization or other similar proceedings affecting
Borrower; or (e) any event or action that would, in the absence of this clause,
result as a matter of law in the release or discharge of the Guarantors from the
performance or observance of any obligation, covenant or agreement contained
herein other than payment in full of the Indebtedness.
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6. Guarantors waive any right to require Bank to (a) proceed against
Borrowers, Guarantors, or other guarantors; (b) proceed against or exhaust any
security held from Guarantor or Borrowers; or (c) pursue any other remedy in
Bank's power whatsoever. Guarantors waive the benefits of Arizona Revised
Statues Section 33-814. Guarantors agree that if the Indebtedness is secured in
whole or part by a deed of trust on real property, Bank may proceed to foreclose
any other collateral first or may proceed against Guarantors, Borrower or any
obligor without waiving its right to exercise its remedies and foreclose its
lien under such deed of trust at a later time. Bank may, without notice, assign
this Guaranty in whole or in part.
7. Guarantors shall have no right of indemnity, reimbursement ,
contribution or subrogation as to Borrower unless Bank, at its option, so
elects. Guarantors hereby waive any right to enforce any remedy which Bank now
has, or may hereafter have, against Borrower, and hereby waive any benefit of,
any right to participate in, any security now or hereafter held by Bank.
Guarantors acknowledge that Borrower may owe other sums and obligations to Bank.
Guarantors agree that any payments received by Bank, other than from Guarantors
under this Guaranty, whether from the Borrower or from the proceeds of any
collateral or otherwise, may be applied by Bank upon any amounts owned to Bank
in such order and manner as Bank may determine in its sole discretion.
Guarantors waive all presentments, demands for performance, notices of
nonperformance, protests, notices of protest, notices of dishonor and notices of
acceptance of this Guaranty and of the existence, creation , or incurring of new
or additional Indebtedness. Guarantors waive the benefits of Arizona Revised
Statute Sections 12-1641 and 12-1642.
8. Guarantors agree to pay reasonable attorney's fees and all other costs
and expenses which may be incurred by Bank in the enforcement of this Guaranty.
Guarantors hereby indemnify Bank against all costs or repayments incurred by
Bank or required of Bank as a result of payment hereunder being challenged as a
preference.
9. Bank shall have a lien upon, and a right of set-off against, all
monies, securities and other property of Guarantors now or hereafter in the
possession of or on deposit with Bank, whether held in a general or special
account, or for safekeeping or otherwise; and every such lien and right of
set-off may be exercised without demand upon, or notice to Guarantors until the
Indebtedness is paid in full.
10. This Guaranty is cumulative as to amounts and does not revoke or alter
any guaranty previously delivered to Bank or any guaranty subsequently deliver
to Bank. This Guaranty does not in any manner limit the amount of any borrowing
or other financing arrangement between Bank and Borrower.
11. Guarantors acknowledge that the execution of this Guaranty shall not
entitle Guarantors to rely on the Bank to preserve or maintain any collateral or
other security that Bank may now have or hereafter acquire in connection with
the Indebtedness. Guarantors hereby release Bank from any obligation to inspect,
preserve or maintain any collateral or other security that Bank may now have or
hereafter acquire in connection with the Indebtedness, and any obligation to
monitor, control or see to the use of any monies advanced to the Borrower.
Guarantors further waive any and all rights to receive reports or other
information Bank may have relating to Borrower.
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12. If Guarantor is a corporation or a partnership, Guarantor represents
and warrants that: (a) it has the necessary power under law and its governing
documents to make the agreements on its part herein contained; (b) the execution
of this Guaranty has been authorized by all necessary and proper actions; (c)
the execution and delivery of this Guaranty, the consummation of the
transactions contemplated hereby, and the fulfillment of or compliance with the
terms and conditions of this Guaranty do not conflict with or result in a breach
of any of the terms, conditions or provisions of any agreement or instrument to
which it is a party or by which it is bound; and (d) Guarantor agrees that
during the term of this Guaranty it will maintain its separate existence, and
will not dissolve, terminate, merge or consolidate.
13. Any married person who is a Guarantor hereby expressly agrees that
recourse may be had against their separate property as well as all community
property for all their obligations under this Guaranty.
14. Guarantors agree that during the term of this Guaranty they will not
transfer or dispose of any material part of their assets except in the ordinary
course of business for a full and fair consideration. Guarantors agree that
during the term of this Guaranty they will furnish annually, within 90 days
after the close of each year or fiscal year, as the case may be, a financial
statement consisting of a balance sheet and such other financial information as
Bank may reasonably request.
15. This Guaranty applies to, is binding upon, and insures to the benefit
of all parties hereto, and their successors and assigns.
16. If any part or parts of this Guaranty shall at any time be held to be
invalid or unenforceable by binding arbitration or by a court of competent
jurisdiction, the remaining part or parts of the Guaranty shall be and remain in
full force and effect.
17. This Guaranty shall be construed in accordance with the laws of the
State of Arizona.
18. Guarantors acknowledge the Bank would not have allowed the
Indebtedness to exist except for the consideration received from Guarantor's
promise to pay pursuant to this Guaranty.
19. All words used herein in the plural shall be deemed to have been used
in the singular where the context and construction so requires; and when there
is more than one Borrower named herein, the word "Borrower" shall mean all of
them.
INDIVIDUAL GUARANTOR
Dated:JUNE 30, 1995
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XXXXX X. XXXXXX
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