Document:

Exhibit 10.4

 

DG FASTCHANNEL, INC.

 

2006 LONG-TERM STOCK INCENTIVE PLAN

 

RESTRICTED STOCK UNIT AWARD GRANT NOTICE AND
 RESTRICTED STOCK UNIT AWARD AGREEMENT

 

DG FastChannel, Inc., a Delaware corporation (the “Company”), pursuant to its 2006 Long-Term Stock Incentive Plan, as amended (the “Plan”), hereby grants to the individual listed below (“Grantee”), an award of restricted stock units (“Restricted Stock Units” or “RSUs”) with respect to the number of shares of the Company’s Common Stock (the “Shares”).  This award for Restricted Stock Units (this “Award”) is subject to all of the terms and conditions as set forth herein and in the Restricted Stock Unit Award Agreement attached hereto as Exhibit A (the “Restricted Stock Unit Agreement”) and the Plan, each of which are incorporated herein by reference.  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Restricted Stock Unit Agreement.

 

	
Grantee:
    	
 
    	
Neil   Nguyen
    
	
 
    	
 
    	
 
    
	
Grant Date:
    	
 
    	
March 29,   2011
    
	
 
    	
 
    	
 
    
	
Total Number of RSUs:
    	
 
    	
33,000
    
	
 
    	
 
    	
 
    
	
Distribution Schedule:
    	
 
    	
Subject   to the terms of the Restricted Stock Unit Agreement, the RSUs shall be   distributable in accordance with Section 1.1(d).
    
	
 
    	
 
    	
 
    
	
Vesting Schedule:
    	
 
    	
Subject   to the terms of the Restricted Stock Unit Agreement, the Shares subject to   the Award shall vest as follows:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)           one-third (1/3) of the Shares shall   vest on the first anniversary of the Grant Date;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b)           one-third (1/3) of the Shares shall   vest on the second anniversary of the Grant Date; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(c)           one-third (1/3) of the Shares shall   vest on the third anniversary of the Grant Date;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
in   each case subject to Grantee’s Continuous Service through each applicable   vesting date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In   the event that the aggregate Fair Market Value of the total number of Shares   subject to this Award as of December 31, 2011 exceeds seven percent (7%)   of the Company’s EBITDA for 2011, the total number of Shares eligible for   vesting under this Award shall be automatically reduced accordingly and any   excess Shares subject to the Award shall terminate automatically without any   further action by the Company and be forfeited without further notice and at   no cost to the Company; provided, however, that in the event the Shares subject to the Award   vest on an accelerated basis pursuant to the following paragraph prior to   December 31, 2011, this sentence shall not apply.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   Shares subject to the Award shall vest on an accelerated basis upon the   occurrence of any of the following events:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)           the termination of Grantee’s   employment by the Company without Cause (as such term is defined in that   certain Amended and Restated Employment Agreement dated as of January 11,   2010, between Grantee and the Company, as in effect on the Grant Date (the   “Employment Agreement”);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b)           Grantee’s voluntary termination of   employment for Good 
    

 

 

	
 
    	
 
    	
Reason   (as such term is defined in the Employment Agreement);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(c)           Grantee’s death;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(d)           Grantee’s Disability (as defined   below); or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(e)           a Change in Control.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For   purposes of this Grant Notice and the Restricted Stock Unit Agreement,   “Disability” shall mean that Grantee is, by reason of any   medically-determinable physical or mental impairment which can be expected to   result in death or can be expected to last for a continuous period of not   less than twelve months, (i) unable to engage in any substantial gainful   activity, or (ii) receiving income replacement benefits for a period of   not less than three months under an accident and health plan covering   employees of the Company.  The   Committee shall determine whether Grantee is “Disabled” in accordance with   Section 409A of the Code.
    
	
 
    	
 
    	
 
    

 

By his signature and the Company’s signature below, Grantee agrees to be bound by the terms and conditions of the Plan, the Restricted Stock Unit Agreement and this Grant Notice.  Grantee has reviewed the Restricted Stock Unit Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Restricted Stock Unit Agreement and the Plan.  Grantee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan, this Grant Notice or the Restricted Stock Unit Agreement.  Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice. The Award is subject to the terms and conditions of the Plan which are incorporated herein by reference. In the event of any inconsistency between the Plan and the Restricted Stock Unit Agreement, the terms of the Plan shall control.

 

Grantee understands and agrees that this Award does not alter the at-will nature of his employment relationship with the Company and is not a promise of continued employment or service for the vesting period of the Award or any portion of it.

 

The Plan, this Grant Notice and the Restricted Stock Unit Agreement constitute the entire agreement of the parties and supersede in their entirety all oral, implied or written promises, statements, understandings, undertakings and agreements between the Company and Grantee with respect to the subject matter hereof, including without limitation, the provisions of any employment agreement or offer letter regarding equity awards to be awarded to Grantee by the Company, or any other oral, implied or written promises, statements, understandings, undertakings or agreements by the Company or any of its representatives regarding equity awards to be awarded to Grantee by the Company.

 

	
DG   FASTCHANNEL, INC.
    	
 
    	
GRANTEE
    

 

	
By:
    	
 
    	
/s/   John R. Harris
    	
 
    	
By:
    	
/s/   Neil Nguyen
    
	
Print   Name:
    	
 
    	
John   R. Harris
    	
 
    	
Print   Name:
    	
Neil   Nguyen
    
	
Title:
    	
 
    	
Compensation   Committee Chairman
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
750   West John Carpenter Freeway,
    	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
Suite 700
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Irving,   Texas 75039
    	
 
    	
 
    	
 
    

 

 

EXHIBIT A

 

TO RESTRICTED STOCK UNIT AWARD GRANT NOTICE

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

Pursuant to the Restricted Stock Unit Award Grant Notice (the “Grant Notice”) to which this Restricted Stock Unit Award Agreement (this “Agreement”) is attached, the Company has granted to Grantee the right to receive the number of RSUs set forth in the Grant Notice, subject to all of the terms and conditions set forth in this Agreement, the Grant Notice and the Plan.

 

ARTICLE I.

 

AWARD OF RESTRICTED STOCK UNITS

 

1.1           Award of Restricted Stock Units.

 

(a)           Award.  In consideration of Grantee’s continued employment with the Company or any Affiliate thereof and for other good and valuable consideration, the Company hereby grants to Grantee the right to receive the number of RSUs set forth in the Grant Notice, subject to all of the terms and conditions set forth in this Agreement, the Grant Notice and the Plan.  Prior to actual issuance of any Shares, the RSUs and the Award represent an unsecured obligation of the Company, payable only from the general assets of the Company.

 

(b)           Vesting.  The RSUs subject to the Award shall vest in accordance with the Vesting Schedule set forth in the Grant Notice.  Unless and until the RSUs have vested in accordance with the Vesting Schedule set forth in the Grant Notice, Grantee will have no right to any distribution with respect to such RSUs.  In the event of the termination of the Grantee’s Continuous Service prior to the vesting of all of the RSUs, any unvested RSUs will terminate automatically without any further action by the Company and be forfeited without further notice and at no cost to the Company.

 

(c)           Distribution of Shares.

 

(i)            Except as provided in Section 1.1(d), shares of Common Stock shall be distributed to Grantee (or in the event of Grantee’s death, to his estate) with respect to such Grantee’s vested RSUs following the vesting date of the RSUs as specified in the Vesting Schedule set forth in the Grant Notice, subject to the terms and provisions of the Plan and this Agreement.

 

(ii)           All distributions shall be made by the Company in the form of whole shares of Common Stock.

 

(iii)          Neither the time nor form of distribution of Common Stock with respect to the RSUs may be changed, except as may be permitted by the Committee in accordance with the Plan and Section 409A of the Code and the Treasury Regulations thereunder.

 

(d)           Deferral Election.

 

(i)            If Grantee makes a valid deferral election within the time period specified by the Company in the deferral election form, then Grantee may elect to change the timing of receipt of the Common Stock otherwise distributable under Section 1.1(c).  Any such deferral election must comply with the requirements of Section 409A of the Code and the Treasury Regulations or other 

 

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guidance issued thereunder as well as any Plan rules on deferrals and must be made on a form approved by the Company.

 

(ii)           If Grantee is a “specified employee” (as determined in accordance with Section 409A(a)(2)(B)(i) of the Code and Treasury Regulation Section 1.409A-1(i)) on the date of his “separation from service” (as defined in Section 1.409A-1(h) of the Treasury Regulations), the delivery of any shares of Common Stock to be delivered to Grantee upon and as a result of such “separation from service” shall be delayed to the extent necessary to avoid a prohibited distribution under Section 409A(2)(B)(i) of the Code, and such shares of Common Stock shall be distributed to Grantee on the earlier of (A) the expiration of the six-month period measured from the date of Grantee’s “separation from service,” (B) the date of Grantee’s death, or (C) such earlier date as is permitted under Section 409A of the Code and the Treasury Regulations thereunder.

 

(iii)          Notwithstanding any deferral election made by Grantee pursuant to this Section 1.1(d), all shares of Common Stock will be distributed to Grantee in satisfaction of the vested portion of the RSU Award upon a Change in Control (so long as such Change in Control also constitutes a change in the ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A(a)(2)(A)(v) of the Code and Section 1.409A-3(i)(5) of the Treasury Regulations) (and any distribution of shares of Common Stock upon a Change in Control shall occur immediately prior to the Change in Control) or upon the date of Grantee’s death.

 

(e)           Generally. Shares issued under the Award shall be issued to Grantee or Grantee’s beneficiaries, as the case may be, at the sole discretion of the Committee, in either (i) uncertificated form, with the Shares recorded in the name of Grantee in the books and records of the Company’s transfer agent with appropriate notations regarding the restrictions on transfer imposed pursuant to this Agreement; or (ii) certificate form.

 

1.2           Tax Withholding.  Notwithstanding any other provision of this Agreement (including, without limitation, Section 1.1(b) hereof):

 

(a)           The Company has the authority to deduct or withhold, or require Grantee to remit to the Company, an amount sufficient to satisfy applicable federal, state, local and foreign taxes (including any FICA obligation) required by law to be withheld with respect to any taxable event arising from vesting of the RSUs or the receipt of the Shares upon settlement of the RSUs.  The Company may permit, but shall not be obligated to allow, Grantee to make such payment in one or more of the forms specified below:

 

(i)            by cash or check made payable to the Company;

 

(ii)           by the deduction of such amount from other compensation payable to Grantee;

 

(iii)          by requesting that the Company withhold a net number of vested Shares otherwise issuable pursuant to the RSUs having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding obligation of the Company and its Affiliates based on the minimum applicable statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes;

 

(iv)          by tendering vested shares of Common Stock owned by the Grantee having a then current Fair Market Value not exceeding the amount necessary to satisfy the withholding 

 

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obligation of the Company and its Affiliates based on the minimum applicable statutory withholding rates for federal, state, local and foreign income tax and payroll tax purposes; or

 

(v)           in any combination of the foregoing.

 

(b)           In the event Grantee fails to provide timely payment of all sums required pursuant to Section 1.2(a), the Company shall have the right and option, but not the obligation, to treat such failure as an election by Grantee to satisfy all or any portion of Grantee’s required payment obligation pursuant to Section 1.2(a)(ii) or Section 1.2(a)(iii) above, or any combination of the foregoing as the Company may determine to be appropriate. The Company shall not be obligated to deliver any certificate representing Shares issuable with respect to the RSUs to Grantee or his legal representative unless and until Grantee or his legal representative shall have paid or otherwise satisfied in full the amount of all federal, state, local and foreign taxes applicable with respect to the taxable income of Grantee resulting from the grant of the RSUs, the distribution of the Shares issuable with respect thereto, or any other taxable event related to the RSUs.

 

(c)           In the event Grantee’s tax withholding obligation will be satisfied under Section 1.2(a)(iii) above, then the Company may elect to instruct any brokerage firm determined acceptable to the Company for such purpose to sell on Grantee’s behalf a whole number of shares from those Shares issuable to Grantee upon settlement of the RSUs as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy Grantee’s tax withholding obligation.  Grantee’s acceptance of this Award constitutes Grantee’s instruction and authorization to the Company and such brokerage firm to complete the transactions described above, including the transactions described in the previous sentence, as applicable.  Any Shares to be sold at the Company’s direction through a broker-assisted sale will be sold on the day the tax withholding obligation arises (i.e., the date Common Stock is delivered) or as soon thereafter as practicable.  The Shares may be sold as part of a block trade with other participants of the Plan in which all participants receive an average price.  Grantee will be responsible for all broker’s fees and other costs of sale, and Grantee agrees to indemnify and hold the Company harmless from any losses, costs, damages, or expenses relating to any such sale. To the extent the proceeds of such sale exceed Grantee’s tax withholding obligation, the Company agrees to pay such excess in cash to Grantee as soon as practicable. Grantee acknowledges that the Company or its designee is under no obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy Grantee’s tax withholding obligation.  The Company may refuse to issue any Shares in settlement of the Award to Grantee until the foregoing tax withholding obligations are satisfied.

 

ARTICLE II.

 

RESTRICTIONS

 

2.1           Award and Interests Not Transferable.  This Award and the rights and privileges conferred hereby, including the RSUs awarded hereunder, shall not be transferable or assignable by the Grantee and may not be made subject to execution, attachment, or similar process, otherwise than by will or the laws of decent and distribution.

 

2.2           Rights as Stockholder.  Neither Grantee nor any person claiming under or through Grantee shall have any of the rights or privileges of a stockholder of the Company in respect of any Shares issuable hereunder unless and until certificates representing such Shares (which may be in uncertificated form) will have been issued and recorded on the books and records of the Company or its transfer agents or registrars, and delivered to Grantee (including through electronic delivery to a brokerage account).   After such issuance, recordation and delivery, Grantee shall have all the rights of a 

 

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stockholder of the Company, including with respect to the right to vote the Shares and the right to receive any cash or share dividends or other distributions paid to or made with respect to the Shares.

 

2.3           Forfeiture Provisions.  Grantee hereby agrees that the Committee may provide that the Award shall terminate and any unvested RSUs shall be forfeited, if the Grantee at any time prior to the vesting of the Award engages in any activity which is inimical, contrary or harmful to the interests of the Company, as determined by the Committee, including, without limitation, any violation of any written Company policy, or the Grantee’s employment is terminated for Cause.

 

ARTICLE III.

 

OTHER PROVISIONS

 

3.1           Adjustments.  The Grantee acknowledges that the Award, including the vesting of the Award and the number of Shares subject to the Award, is subject to adjustment in the discretion of the Committee upon the occurrence of certain events as provided in this Agreement and Section 14 of the Plan.

 

3.2           Conformity to Securities Laws.  Grantee acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated thereunder by the U.S. Securities and Exchange Commission, including, without limitation, Rule 16b-3 under the Exchange Act.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Awards are granted, only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

3.3           Amendment, Suspension and Termination.  To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board; provided, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely effect the RSU in any material way without the prior written consent of the Grantee.

 

3.4           Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the address given beneath the signature of an authorized officer of the Company on the Grant Notice, and any notice to be given to Grantee shall be addressed to Grantee at the address given beneath Grantee’s signature on the Grant Notice.  By a notice given pursuant to this Section 3.4, either party may hereafter designate a different address for notices to be given to that party.  Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

 

3.5           Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Grantee and his heirs, executors, administrators, successors and assigns.

 

3.6           Section 409A.

 

(a)           Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and 

 

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incorporate the terms and conditions required by, Section 409A of the Code (together with any Treasury Regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Grant Date, “Section 409A”).  The Committee may, in its discretion, adopt such amendments to the Plan, this Agreement or the Grant Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Committee determines are necessary or appropriate to comply with the requirements of Section 409A.

 

(b)           Unless a deferral election is made by Grantee pursuant to Section 1.1(d) above, this Agreement is not intended to provide for any deferral of compensation subject to Section 409A of the Code, and, accordingly, the Shares issuable pursuant to the RSUs hereunder shall be distributed to Grantee no later than the later of: (i) the fifteenth (15th) day of the third month following Grantee’s first taxable year in which such RSUs are no longer subject to a substantial risk of forfeiture, and (ii) the fifteenth (15th) day of the third month following first taxable year of the Company in which such RSUs are no longer subject to substantial risk of forfeiture, as determined in accordance with Section 409A and any Treasury Regulations and other guidance issued thereunder.

 

(c)           For purposes of Section 409A of the Code (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), each payment that Grantee may be eligible to receive under this Agreement shall be treated as a separate and distinct payment.

 

3.7           Tax Representations.  Grantee has reviewed with Grantee’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by the Grant Notice and this Agreement.  Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. Grantee understands that Grantee (and not the Company) shall be responsible for Grantee’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

3.8           Recoupment.  To the extent required by applicable law or any applicable securities exchange listing standards, any amounts paid or payable under this Agreement (including, without limitation, amounts paid prior to the effectiveness of such law or listing standards) shall be subject to forfeiture, repayment or recapture as determined by the Company in its discretion.

 

3.9           Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 

3.10         Governing Law; Severability.  The Plan and this Agreement are to be construed in accordance with and governed by the internal laws of the State of Texas, without giving effect to any choice-of-law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Texas to the rights and duties of the parties.

 

A-5Exhibit 10.1

 

SUBSIDIARIES GUARANTY

 

among

 

CERTAIN SUBSIDIARIES OF GLOBAL CASH ACCESS HOLDINGS, INC.

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as ADMINISTRATIVE AGENT

 

 

Dated as of March 1, 2011

 

 

 

 

 

SUBSIDIARIES GUARANTY

 

SUBSIDIARIES GUARANTY (as amended, modified, restated and/or supplemented from time to time, this “Guaranty”), dated as of March 1, 2011, made by and among each of the undersigned guarantors (each, a “Guarantor” and, together with any other entity that becomes a guarantor hereunder pursuant to Section 22 hereof, collectively, the “Guarantors”) in favor of DEUTSCHE BANK TRUST COMPANY AMERICAS, as Administrative Agent (together with any successor administrative agent, the “Administrative Agent”), for the benefit of the Secured Creditors (as defined below).  Except as otherwise defined herein, all capitalized terms used herein and defined in the Credit Agreement (as defined below) shall be used herein as therein defined.

 

W  I  T  N  E  S  S  E  T  H :

 

WHEREAS,  Global Cash Access Holdings, Inc., Global Cash Access, Inc. (the “Borrower”), the lenders from time to time party thereto (the “Lenders”), and the Administrative Agent have entered into a Credit Agreement, dated as of the date hereof (as amended, modified, restated and/or supplemented from time to time, the “Credit Agreement”), providing for the making of Loans to, and the issuance of, and participation in, Letters of Credit for the account of the Borrower, all as contemplated therein (the Lenders, each Issuing Lender, the Administrative Agent and the Collateral Agent are herein called the “Lender Creditors”);

 

WHEREAS, the Borrower and/or one or more other Credit Parties may at any time and from time to time enter into one or more Interest Rate Protection Agreements and/or Other Hedging Agreements with one or more Lenders or any affiliate thereof (each such Lender or affiliate, even if the respective Lender subsequently ceases to be a Lender under the Credit Agreement for any reason, together with such Lender’s or affiliate’s successors and assigns, if any, collectively, the “Other Creditors” and, together with the Lender Creditors, the “Secured Creditors”, with each such Interest Rate Protection Agreement and/or Other Hedging Agreement with an Other Creditor being herein called a “Secured Hedging Agreement”);

 

WHEREAS, each Guarantor is a direct or indirect Subsidiary of the Borrower;

 

WHEREAS, it is a condition precedent to the making of Loans to the Borrower and the issuance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and to the Other Creditors entering into Secured Hedging Agreements that each Guarantor shall have executed and delivered to the Administrative Agent this Guaranty; and

 

WHEREAS, each Guarantor will obtain benefits from the incurrence of Loans by the Borrower and the issuance of, and participation in, Letters of Credit for the account of the Borrower under the Credit Agreement and the entering into by the Borrower and/or one or more other Credit Parties of Secured Hedging Agreements and, accordingly, desires to execute this Guaranty in order to satisfy the condition described in the preceding paragraph and to induce the Lenders to make Loans to the Borrower and issue, and/or participate in, Letters of Credit for the account of the Borrower and the Other Creditors to enter into Secured Hedging Agreements with the Borrower and/or one or more other Credit Parties;

 

NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each Guarantor, the receipt and sufficiency of which are hereby acknowledged, each Guarantor hereby makes the following representations and warranties to the Administrative Agent for the benefit of the Secured Creditors and hereby covenants and agrees with each other Guarantor and the Administrative Agent for the benefit of the Secured Creditors as follows:

 

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GUARANTY. (a)  Each Guarantor, jointly and severally, irrevocably, absolutely and unconditionally guarantees as a primary obligor and not merely as surety:

 

to the Lender Creditors the full and prompt payment when due (whether at the stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) of (x) the principal of, premium, if any, and interest on the Notes issued by, and the Loans made to, the Borrower under the Credit Agreement, and all reimbursement obligations and Unpaid Drawings with respect to Letters of Credit and (y) all other obligations (including, without limitation, obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness owing by the Borrower to the Lender Creditors under each Credit Document to which the Borrower is a party (including, without limitation, indemnities, Fees and interest thereon (including, without limitation, any interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided for in the Credit Agreement, whether or not such interest is an allowed claim in any such proceeding)), whether now existing or hereafter incurred under, arising out of or in connection with each such Credit Document and the due performance and compliance by the Borrower with all of the terms, conditions, covenants and agreements contained in all such Credit Documents (all such principal, premium, interest, liabilities, indebtedness and obligations under this clause (i), except to the extent consisting of obligations or liabilities with respect to Secured Hedging Agreements, being herein collectively called the “Credit Document Obligations”); and

 

to each Other Creditor the full and prompt payment when due (whether at the stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) of all obligations (including, without limitation, obligations which, but for the automatic stay under Section 362(a) of the Bankruptcy Code, would become due), liabilities and indebtedness (including, without limitation, any interest accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding at the rate provided for in the respective Secured Hedging Agreements, whether or not such interest is an allowed claim in any such proceeding) owing by the Borrower and each other Guaranteed Party under each Secured Hedging Agreement to which it is a party, whether now in existence or hereafter arising, and the due performance and compliance by the Borrower and each such other Guaranteed Party with all of the terms, conditions, covenants and agreements contained therein (all such obligations, liabilities and indebtedness being herein collectively called the “Other Obligations”, and together with the Credit Document Obligations are herein collectively called the “Guaranteed Obligations”).

 

As used herein, the term “Guaranteed Party” shall mean the Borrower and each Subsidiary of the Borrower that is a Credit Party. Each Guarantor understands, agrees and confirms that the Secured Creditors may enforce this Guaranty up to the full amount of the Guaranteed Obligations against such Guarantor without proceeding against any other Guarantor, the Borrower or any other Guaranteed Party, or against any security for the Guaranteed Obligations, or under any other guaranty covering all or a portion of the Guaranteed Obligations.  This Guaranty is a guaranty of prompt payment and performance and not of collection.

 

Additionally, each Guarantor, jointly and severally, unconditionally, absolutely and irrevocably, guarantees the payment of any and all Guaranteed Obligations whether or not due or payable by the Borrower or any other Guaranteed Party upon the occurrence in respect of the Borrower or any other Guaranteed Party of any of the events specified in Section 11.05 of the Credit Agreement, and unconditionally, absolutely and irrevocably, jointly and severally, promises to pay such Guaranteed Obligations to the Secured Creditors, or order, on demand.

 

LIABILITY OF GUARANTORS ABSOLUTE.  the liability of each guarantor hereunder is primary, absolute, joint and several, and unconditional and is exclusive and independent of any security for or other guaranty of the

 

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indebtedness of the borrower or any other guaranteed party whether executed by such guarantor, any other guarantor, any other guarantor or by any other party, and the liability of each guarantor hereunder shall not be affected or impaired by any circumstance or occurrence whatsoever, including, without limitation:  (a) any direction as to application of payment by the borrower, any other guaranteed party or any other party, (b) any other continuing or other guaranty, undertaking or maximum liability of a guarantor or of any other party as to the guaranteed obligations, (c) any payment on or in reduction of any such other guaranty or undertaking, (d) any dissolution, termination or increase, decrease or change in personnel by the borrower or any other guaranteed party, (e) the failure of the guarantor to receive any benefit from or as a result of its execution, delivery and performance of this guaranty, (f) any payment made to any secured creditor on the indebtedness which any secured creditor repays the borrower or any other guaranteed party pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or other debtor relief proceeding, and each guarantor waives any right to the deferral or modification of its obligations hereunder by reason of any such proceeding, (g) any action or inaction by the secured creditors as contemplated in section 5 hereof or (h) any invalidity, rescission, irregularity or unenforceability of all or any part of the guaranteed obligations or of any security therefor.

 

OBLIGATIONS OF GUARANTORS INDEPENDENT.  the obligations of each guarantor hereunder are independent of the obligations of any other guarantor, any other guarantor, the borrower or any other guaranteed party, and a separate action or actions may be brought and prosecuted against each guarantor whether or not action is brought against any other guarantor, any other guarantor, the borrower or any other guaranteed party and whether or not any other guarantor, any other guarantor, the borrower or any other guaranteed party be joined in any such action or actions.  each guarantor waives (to the fullest extent permitted by applicable law) the benefits of any statute of limitations affecting its liability hereunder or the enforcement thereof.  any payment by the borrower or any other guaranteed party or other circumstance which operates to toll any statute of limitations as to the borrower or such other guaranteed party shall operate to toll the statute of limitations as to each guarantor.

 

WAIVERS BY GUARANTORS. (a)  Each Guarantor hereby waives (to the fullest extent permitted by applicable law) notice of acceptance of this Guaranty and notice of the existence, creation or incurrence of any new or additional liability to which it may apply, and waives promptness, diligence, presentment, demand of payment, demand for performance, protest, notice of dishonor or nonpayment of any such liabilities, suit or taking of other

 

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action by the Administrative Agent or any other Secured Creditor against, and any other notice to, any party liable thereon (including such Guarantor, any other Guarantor, any other guarantor, the Borrower or any other Guaranteed Party) and each Guarantor further hereby waives any and all notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice or proof of reliance by any Secured Creditor upon this Guaranty, and the Guaranteed Obligations shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended, modified, supplemented or waived, in reliance upon this Guaranty.

 

(b)           Each Guarantor waives any right to require the Secured Creditors to:  (i) proceed against the Borrower, any other Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any other party; (ii) proceed against or exhaust any security held from the Borrower, any other Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any other party; or (iii) pursue any other remedy in the Secured Creditors’ power whatsoever.  Each Guarantor waives any defense based on or arising out of any defense of the Borrower, any other Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any other party other than payment in full in cash of the Guaranteed Obligations, including, without limitation, any defense based on or arising out of the disability of the Borrower, any other Guaranteed Party, any other Guarantor, any other guarantor of the Guaranteed Obligations or any other party, or the unenforceability of the Guaranteed Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower or any other Guaranteed Party other than payment in full in cash of the Guaranteed Obligations.  The Secured Creditors may, at their election, foreclose on any collateral serving as security held by the Administrative Agent, the Collateral Agent or the other Secured Creditors by one or more judicial or nonjudicial sales, whether or not every aspect of any such sale is commercially reasonable (to the extent such sale is permitted by applicable law), or exercise any other right or remedy the Secured Creditors may have against the Borrower, any other Guaranteed Party or any other party, or any security, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Guaranteed Obligations have been paid in full in cash.  Each Guarantor waives any defense arising out of any such election by the Secured Creditors, even though such election operates to impair or extinguish any right of reimbursement, contribution, indemnification or subrogation or other right or remedy of such Guarantor against the Borrower, any other Guaranteed Party, any other guarantor of the Guaranteed Obligations or any other party or any security.

 

(c)           Each Guarantor has knowledge and assumes all responsibility for being and keeping itself informed of the Borrower’s, each other Guaranteed Party’s and each other Guarantor’s financial condition, affairs 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 which such Guarantor assumes and incurs hereunder, and has adequate means to obtain from the Borrower, each other Guaranteed Party and each other Guarantor on an ongoing basis information relating thereto and the Borrower’s, each other Guaranteed Party’s and each other Guarantor’s ability to pay and perform its respective Guaranteed Obligations, and agrees to assume the responsibility for keeping, and to keep, so informed for so long as this Guaranty is in effect.  Each Guarantor acknowledges and agrees that (x) the Secured Creditors shall have no obligation to investigate the financial condition or affairs of the Borrower, any other Guaranteed Party or any other Guarantor for the benefit of such Guarantor nor to advise such Guarantor of any fact respecting, or any change in, the financial condition, assets or affairs of the Borrower, any other Guaranteed Party or any other Guarantor that might become known to any Secured Creditor at any time, whether or not such Secured Creditor knows or believes or has reason to know or believe that any such fact or change is unknown to such Guarantor, or might (or does) increase the risk of such Guarantor as guarantor hereunder, or might (or would) affect the willingness of such Guarantor to continue as a guarantor of the Guaranteed Obligations hereunder and (y) the

 

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Secured Creditors shall have no duty to advise any Guarantor of information known to them regarding any of the aforementioned circumstances or risks.

 

(d)           Each Guarantor hereby acknowledges and agrees that no Secured Creditor nor any other Person shall be under any obligation (i) to marshal any assets in favor of such Guarantor or in payment of any or all of the liabilities of any Guaranteed Party under the Credit Documents or the obligation of such Guarantor hereunder or (ii) to pursue any other remedy that such Guarantor may or may not be able to pursue itself any right to which such Guarantor hereby waives.

 

(e)           Each Guarantor warrants and agrees that each of the waivers set forth in Section 3 and in this Section 4 is made with full knowledge of its significance and consequences and that if any of such waivers are determined to be contrary to any applicable law or public policy, such waivers shall be effective only to the maximum extent permitted by applicable law.

 

RIGHTS OF SECURED CREDITORS.  any secured creditor may (except as shall be required by applicable statute and cannot be waived) at any time and from time to time without the consent of, or notice to, any guarantor, without incurring responsibility to such guarantor, without impairing or releasing the obligations or liabilities of such guarantor hereunder, upon or without any terms or conditions and in whole or in part:

 

change the manner, place or terms of payment of, and/or change, increase or extend the time of payment of, renew, increase, accelerate or alter, any of the Guaranteed Obligations (including, without limitation, any increase or decrease in the rate of interest thereon or the principal amount thereof), any security therefor, or any liability incurred directly or indirectly in respect thereof, and the guaranty herein made shall apply to the Guaranteed Obligations as so changed, extended, increased, accelerated, renewed or altered;

 

take and hold security for the payment of the Guaranteed Obligations and sell, exchange, release, surrender, impair, realize upon or otherwise deal with in any manner and in any order any property or other collateral by whomsoever at any time pledged or mortgaged to secure, or howsoever securing, the Guaranteed Obligations or any liabilities (including any of those hereunder) incurred directly or indirectly in respect thereof or hereof, and/or any offset thereagainst;

 

exercise or refrain from exercising any rights against the Borrower, any other Guaranteed Party, any other Credit Party, any Subsidiary thereof, any other guarantor of the Borrower or others or otherwise act or refrain from acting;

 

release or substitute any one or more endorsers, Guarantors, other guarantors, the Borrower, any other Guaranteed Party or other obligors;

 

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settle or compromise any of the Guaranteed Obligations, any security therefor or any liability (including any of those hereunder) incurred directly or indirectly in respect thereof or hereof, and may subordinate the payment of all or any part thereof to the payment of any liability (whether due or not) of the Borrower or any other Guaranteed Party to creditors of the Borrower or such other Guaranteed Party other than the Secured Creditors;

 

apply any sums by whomsoever paid or howsoever realized to any liability or liabilities of the Borrower or any other Guaranteed Party to the Secured Creditors regardless of what liabilities of the Borrower or such other Guaranteed Party remain unpaid;

 

consent to or waive any breach of, or any act, omission or default under, any of the Secured Hedging Agreements, the Credit Documents or any of the instruments or agreements referred to therein, or otherwise amend, modify or supplement any of the Secured Hedging Agreements, the Credit Documents or any of such other instruments or agreements;

 

act or fail to act in any manner which may deprive such Guarantor of its right to subrogation against the Borrower or any other Guaranteed Party to recover full indemnity for any payments made pursuant to this Guaranty; and/or

 

take any other action or omit to take any other action which would, under otherwise applicable principles of common law, give rise to a legal or equitable discharge of such Guarantor from its liabilities under this Guaranty (including, without limitation, any action or omission whatsoever that might otherwise vary the risk of such Guarantor or constitute a legal or equitable defense to or discharge of the liabilities of a guarantor or surety or that might otherwise limit recourse against such Guarantor).

 

No invalidity, illegality, irregularity or unenforceability of all or any part of the Guaranteed Obligations, the Credit Documents or any other agreement or instrument relating to the Guaranteed Obligations or of any security or guarantee therefor shall affect, impair or be a defense to this Guaranty, and this Guaranty shall be primary, absolute and unconditional notwithstanding the occurrence of any event or the existence of any other circumstances which might constitute a legal or equitable discharge of a surety or guarantor except payment in full in cash of the Guaranteed Obligations.

 

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CONTINUING GUARANTY.  this guaranty is a continuing one and all liabilities to which it applies or may apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon.  no failure or delay on the part of any secured creditor in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  the rights and remedies herein expressly specified are cumulative and not exclusive of any rights or remedies which any secured creditor would otherwise have.  no notice to or demand on any guarantor in any case shall entitle such guarantor to any other further notice or demand in similar or other circumstances or constitute a waiver of the rights of any secured creditor to any other or further action in any circumstances without notice or demand.  it is not necessary for any secured creditor to inquire into the capacity or powers of the borrower or any other guaranteed party or the officers, directors, partners or agents acting or purporting to act on its or their behalf, and any indebtedness made or created in reliance upon the professed exercise of such powers shall be guaranteed hereunder.

 

SUBORDINATION OF INDEBTEDNESS HELD BY GUARANTORS.  any indebtedness of the borrower or any other guaranteed party now or hereafter held by any guarantor is hereby subordinated to the indebtedness of the borrower or such other guaranteed party to the secured creditors; and such indebtedness of the borrower or such other guaranteed party to any guarantor, if the administrative agent or the collateral agent, after an event of default has occurred and is continuing, so requests, shall be collected, enforced and received by such guarantor as trustee for the secured creditors and be paid over to the secured creditors on account of the indebtedness of the borrower or such other guaranteed party to the secured creditors, but without affecting or impairing in any manner the liability of such guarantor under the other provisions of this guaranty.  prior to the transfer by any guarantor of any note or negotiable instrument evidencing any indebtedness of the borrower or any other guaranteed party to such guarantor, such guarantor shall mark such note or negotiable instrument with a legend that the same is subject to this subordination.  without limiting the generality of the foregoing, each guarantor hereby agrees with the secured creditors that it will not exercise any right of subrogation which it may at any time otherwise have as a result of this guaranty (whether contractual, under section 509 of the bankruptcy code or otherwise) until all guaranteed obligations have been irrevocably paid in full in cash; provided, that if any amount shall be paid to such guarantor on account of such subrogation rights at any time prior to the irrevocable payment in full in cash of all the

 

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guaranteed obligations, such amount shall be held in trust for the benefit of the secured creditors and shall forthwith be paid to the secured creditors to be credited and applied upon the guaranteed obligations, whether matured or unmatured, in accordance with the terms of the credit documents or, if the credit documents do not provide for the application of such amount, to be held by the secured creditors as collateral security for any guaranteed obligations thereafter existing.

 

GUARANTY ENFORCEABLE BY ADMINISTRATIVE AGENT OR COLLATERAL AGENT.  notwithstanding anything to the contrary contained elsewhere in this guaranty, the secured creditors agree (by their acceptance of the benefits of this guaranty) that this guaranty may be enforced only by the action of the administrative agent or the collateral agent, in each case acting upon the instructions of the required lenders (or, after the date on which all credit document obligations have been paid in full, the holders of at least a majority of the outstanding other obligations) and that no other secured creditor shall have any right individually to seek to enforce or to enforce this guaranty or to realize upon the security to be granted by the security documents, it being understood and agreed that such rights and remedies may be exercised by the administrative agent or the collateral agent or, after all the credit document obligations have been paid in full, by the holders of at least a majority of the outstanding other obligations, as the case may be, for the benefit of the secured creditors upon the terms of this guaranty and the security documents.  the secured creditors further agree that this guaranty may not be enforced against any director, officer, employee, partner, member or stockholder of any guarantor (except to the extent such partner, member or stockholder is also a guarantor hereunder).  it is understood and agreed that the agreement in this section 8 is among and solely for the benefit of the secured creditors and that, if the required lenders (or, after the date on which all credit document obligations have been paid in full, the holders of at least a majority of the outstanding other obligations) so agree (without requiring the consent of any guarantor), this guaranty may be directly enforced by any secured creditor.

 

REPRESENTATIONS, WARRANTIES AND COVENANTS OF GUARANTORS.  in order to induce the lenders to make loans to, and issue letters of credit for the account of, the borrower pursuant to the credit agreement, and in order to induce the other creditors to execute, deliver and perform the secured hedging agreements to which they are a party, each guarantor represents, warrants and covenants that as of the date of each credit event:

 

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such Guarantor (i) is a duly organized and validly existing corporation, partnership or limited liability company, as the case may be, in good standing under the laws of the jurisdiction of its organization, (ii) has the corporate, partnership or limited liability company power and authority, as the case may be, to own its property and assets and to transact the business in which it is engaged and presently proposes to engage and (iii) is duly qualified and is authorized to do business and is in good standing in each jurisdiction where the nature of its business requires such qualification, except for failures to be so qualified which, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect;

 

such Guarantor has the corporate, partnership or limited liability company power and authority, as the case may be, to execute, deliver and perform the terms and provisions of this Guaranty and each other Document (such term, for purposes of this Guaranty, to mean each Document (as defined in the Credit Agreement) and each Secured Hedging Agreement) to which it is a party and has taken all necessary corporate, partnership or limited liability company action, as the case may be, to authorize the execution, delivery and performance by it of this Guaranty and each such other Document;

 

such Guarantor has duly executed and delivered this Guaranty and each other Document to which it is a party, and this Guaranty and each such other Document constitutes the legal, valid and binding obligation of such Guarantor enforceable in accordance with its terms, except to the extent that the enforceability hereof or thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law);

 

neither the execution, delivery or performance by such Guarantor of this Guaranty or any other Document to which it is a party, nor compliance by it with the terms and provisions hereof and thereof, will (i) contravene any provision of any applicable law, statute, rule or regulation or any applicable order, writ, injunction or decree of any court or governmental instrumentality, (ii) conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien (except pursuant to the Security Documents) upon any of the property or assets of such Guarantor or any of its Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust, loan agreement, credit agreement, or any other material agreement, contract or instrument to which such Guarantor or any of its Subsidiaries is a party or by which it or any of its property or assets is bound or to which it may be subject or (iii) violate any provision of the certificate or articles of incorporation, by-laws, partnership agreement or limited liability company agreement (or equivalent organizational documents), as the case may be, of such Guarantor or any of its Subsidiaries;

 

no order, consent, approval, license, authorization or validation of, or filing, recording or registration with (except as have been obtained or made prior to the date when required and which remain in full force and effect), or exemption by, any governmental or public body or authority, or any subdivision thereof, is required to authorize, or is required in connection with, (i) the execution, delivery and performance of this Guaranty by such Guarantor or any other Document to which such Guarantor is a party or (ii) the legality, validity, binding effect or enforceability of this Guaranty or any other Document to which such Guarantor is a party;

 

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there are no actions, suits or proceedings pending or, to such Guarantor’s knowledge, threatened (i) with respect to this Guaranty or any other Document to which such Guarantor is a party, (ii) with respect to such Guarantor or any of its Subsidiaries that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or (iii) that could reasonably be expected to have a material adverse effect on the rights or remedies of the Secured Creditors or on the ability of such Guarantor to perform its obligations to the Secured Creditors hereunder and under the other Credit Documents to which it is a party;

 

until the termination of the Total Commitment and all Secured Hedging Agreements and until such time as no Letter of Credit remains outstanding and all Guaranteed Obligations have been paid in full (other than indemnities described in Section 13.01 of the Credit Agreement and analogous provisions in the Security Documents which are not then due and payable), such Guarantor will comply, and will cause each of its Subsidiaries to comply, with all of the applicable provisions, covenants and agreements contained in Sections 9 and 10 of the Credit Agreement, and will take, or will refrain from taking, as the case may be, all actions that are necessary to be taken or not taken so that no violation of any provision, covenant or agreement contained in Sections 9 and 10 of the Credit Agreement, and so that no Default or Event of Default, is caused by the actions of such Guarantor or any of its Subsidiaries; and

 

an executed (or conformed) copy of each of the Credit Documents, the Secured Hedging Agreements has been made available to a senior officer of such Guarantor and such officer is familiar with the contents thereof.

 

EXPENSES.  the guarantors hereby jointly and severally agree to pay all reasonable and documented out-of-pocket costs and expenses of the collateral agent, the administrative agent and each other secured creditor in connection with the enforcement of this guaranty and the protection of the secured creditors’ rights hereunder and any amendment, waiver or consent relating hereto (including, in each case, without limitation, the reasonable fees and disbursements of counsel employed by the collateral agent, the administrative agent and each other secured creditor).

 

BENEFIT AND BINDING EFFECT.  this guaranty shall be binding upon each guarantor and its successors and assigns and shall inure to the benefit of the secured creditors and their successors and assigns.

 

AMENDMENTS; WAIVERS.  neither this guaranty nor any provision hereof may be changed, waived, discharged or terminated except with the written consent of each guarantor directly affected thereby (it being understood that the addition or release of any guarantor hereunder shall not constitute a change, waiver, discharge or termination affecting any guarantor other than the guarantor so added or released) and with the written consent of either (x) the

 

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required lenders (or, to the extent required by section 13.12 of the credit agreement, with the written consent of each lender) at all times prior to the time at which all credit document obligations have been paid in full or (y) the holders of at least a majority of the outstanding other obligations at all times after the time at which all credit document obligations have been paid in full; provided, that any change, waiver, modification or variance affecting the rights and benefits of a single class (as defined below) of secured creditors (and not all secured creditors in a like or similar manner) shall also require the written consent of the requisite creditors (as defined below) of such class of secured creditors.  for the purpose of this guaranty, the term “class” shall mean each class of secured creditors, i.e., whether (x) the lender creditors as holders of the credit document obligations or (y) the other creditors as the holders of the other obligations.  for the purpose of this guaranty, the term “requisite creditors” of any class shall mean (x) with respect to the credit document obligations, the required lenders (or, to the extent required by section 13.12 of the credit agreement, each lender) and (y) with respect to the other obligations, the holders of at least a majority of all other obligations outstanding from time to time under the secured hedging agreements.

 

SET OFF.  in addition to any rights now or hereafter granted under applicable law (including, without limitation, section 151 of the new york debtor and creditor law) and not by way of limitation of any such rights, upon the occurrence and during the continuance of an event of default (such term to mean and include any “event of default” as defined in the credit agreement and any payment default under any secured hedging agreement continuing after any applicable grace period), each secured creditor is hereby authorized, at any time or from time to time, without notice to any guarantor or to any other person, any such notice being expressly waived, to set off and to appropriate and apply any and all deposits (general or special) and any other indebtedness at any time held or owing by such secured creditor to or for the credit or the account of such guarantor, against and on account of the obligations and liabilities of such guarantor to such secured creditor under this guaranty, irrespective of whether or not such secured creditor shall have made any demand hereunder and although said obligations, liabilities, deposits or claims, or any of them, shall be contingent or unmatured.  notwithstanding anything to the contrary contained in this guaranty, at any time that the guaranteed obligations shall be secured by any real property located in the state of california, no secured creditor shall exercise any right of set-off, lien or counterclaim or take any court or administrative action or institute any proceedings to enforce any provision of this guaranty without the prior consent of the administrative agent or the required lenders or, to the extent required by section 13.12 of the credit agreement, all of the lenders, if

 

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such setoff or action or proceeding would or might (pursuant to sections 580a, 580b, 580d and 726 of the california code of civil procedure or section 2924 of the california civil code, if applicable, or otherwise) affect or impair the validity, priority, or enforceability of the liens granted to the collateral agent pursuant to the security documents or the enforceability of the guaranteed obligations hereunder, and any attempted exercise by any secured creditor or the administrative agent of any such right without obtaining such consent of the required lenders or the administrative agent shall be null and void. it is understood and agreed that the foregoing sentence of this section 13 is for the sole benefit of the secured creditors and may be amended, modified or waived in any respect by the required lenders (without any requirement of prior notice to or consent by any credit party or any other person) and does not constitute a waiver of any rights against any credit party or against any collateral.   each secured creditor (by its acceptance of the benefits hereof) acknowledges and agrees that the provisions of this section 13 are subject to the sharing provisions set forth in section 13.06 of the credit agreement.

 

NOTICE.  except as otherwise specified herein, all notices, requests, demands or other communications to or upon the respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by courier, be effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the administrative agent or any guarantor shall not be effective until received by the administrative agent or such guarantor, as the case may be.  all notices and other communications shall be in writing and addressed to such party at (i) in the case of any lender creditor, as provided in the credit agreement, (ii) in the case of any guarantor, at its address set forth opposite its signature page below, and (iii) in the case of any other creditor, at such address as such other creditor shall have specified in writing to the guarantors; or in any case at such other address as any of the persons listed above may hereafter notify the others in writing.

 

REINSTATEMENT.  if any claim is ever made upon any secured creditor for repayment or recovery of any amount or amounts received in payment or on account of any of the guaranteed obligations and any of the aforesaid payees repays all or part of said amount by reason of (i) any judgment, decree or order of any court or administrative body having jurisdiction over such payee or any of its property or (ii) any settlement or compromise of any such claim

 

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effected by such payee with any such claimant (including, without limitation, the borrower or any other guaranteed party), then and in such event each guarantor agrees that any such judgment, decree, order, settlement or compromise shall be binding upon such guarantor, notwithstanding any revocation hereof or the cancellation of any note, any secured hedging agreement or any other instrument evidencing any liability of the borrower or any other guaranteed party, and such guarantor shall be and remain liable to the aforesaid payees hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally been received by any such payee.

 

CONSENT TO JURISDICTION; SERVICE OF PROCESS; AND WAIVER OF TRIAL BY JURY. (a)     this guaranty and the rights and obligations of the secured creditors and of the undersigned hereunder shall be governed by and construed in accordance with the law of the state of new york.  Any legal action or proceeding with respect to this Guaranty or any other Credit Document to which any Guarantor is a party 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, in each case located within the City of New York, and, by execution and delivery of this Guaranty, each Guarantor hereby irrevocably accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.  Each Guarantor hereby further irrevocably waives any claim that any such courts lack jurisdiction over such Guarantor, and agrees not to plead or claim, in any legal action or proceeding with respect to this Guaranty or any other Credit Document to which such Guarantor is a party brought in any of the aforesaid courts, that any such court lacks jurisdiction over such Guarantor.  Each Guarantor further irrevocably consents to the service of process out of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to each Guarantor at its address set forth opposite its signature below, such service to become effective 30 days after such mailing.  Each Guarantor hereby irrevocably waives any objection to such service of process and further irrevocably waives and agrees not to plead or claim in any action or proceeding commenced hereunder or under any other Credit Document to which such Guarantor is a party that such service of process was in any way invalid or ineffective. Nothing herein shall affect the right of any of the Secured Creditors to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed against each Guarantor in any other jurisdiction.

 

(b)           Each Guarantor hereby irrevocably waives (to the fullest extent permitted by applicable law) any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions or proceedings arising out of or in connection with this Guaranty or any other Credit Document to which such Guarantor is a party brought in the courts referred to in clause (a) above and hereby further irrevocably waives and agrees not to plead or claim in any such court that such action or proceeding brought in any such court has been brought in an inconvenient forum.

 

(c)           each guarantor and each secured creditor (by its acceptance of the benefits of this guaranty) hereby irrevocably waives all rights to a trial by jury in any action, proceeding or counterclaim arising out of or relating to this guaranty, the other credit documents to which such guarantor is a party or the transactions contemplated hereby or thereby.

 

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RELEASE OF LIABILITY OF GUARANTOR UPON SALE OR DISSOLUTION.  in the event that all of the capital stock or other equity interests of one or more guarantors is sold or otherwise disposed of or liquidated in compliance with the requirements of section 10.02 of the credit agreement (or such sale, other disposition or liquidation has been approved in writing by the required lenders (or all the lenders if required by section 13.12 of the credit agreement)) and the proceeds of such sale, disposition or liquidation are applied in accordance with the provisions of the credit agreement, to the extent applicable, such guarantor shall, upon consummation of such sale or other disposition (except to the extent that such sale or disposition is to holdings or another subsidiary thereof), be released from this guaranty automatically and without further action and this guaranty shall, as to each such guarantor or guarantors, terminate, and have no further force or effect (it being understood and agreed that the sale of one or more persons that own, directly or indirectly, all of the capital stock or other equity interests of any guarantor shall be deemed to be a sale of such guarantor for the purposes of this section 17).

 

CONTRIBUTION.  at any time a payment in respect of the guaranteed obligations is made under this guaranty, the right of contribution of each guarantor against each other guarantor shall be determined as provided in the immediately following sentence, with the right of contribution of each guarantor to be revised and restated as of each date on which a payment (a “relevant payment”) is made on the guaranteed obligations under this guaranty.  at any time that a relevant payment is made by a guarantor that results in the aggregate payments made by such guarantor in respect of the guaranteed obligations to and including the date of the relevant payment exceeding such guarantor’s contribution percentage (as defined below) of the aggregate payments made by all guarantors in respect of the guaranteed obligations to and including the date of the relevant payment (such excess, the “aggregate excess amount”), each such guarantor shall have a right of contribution against each other guarantor who has made payments in respect of the guaranteed obligations to and including the date of the relevant payment in an aggregate amount less than such other guarantor’s contribution percentage of the aggregate payments made to and including the date of the relevant payment by all guarantors in respect of the guaranteed obligations (the aggregate amount of such deficit, the “aggregate deficit amount”) in an amount equal to (x) a fraction the numerator of which is the aggregate excess amount of such guarantor and the denominator of which is the aggregate excess amount of all guarantors multiplied by (y) the aggregate deficit amount of such other guarantor.  a guarantor’s right of contribution pursuant to the preceding sentences shall arise at the time of each computation, subject to adjustment to

 

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the time of each computation; provided that no guarantor may take any action to enforce such right until the guaranteed obligations have been irrevocably paid in full in cash and the total commitment and all letters of credit have been terminated, it being expressly recognized and agreed by all parties hereto that any guarantor’s right of contribution arising pursuant to this section 18 against any other guarantor shall be expressly junior and subordinate to such other guarantor’s obligations and liabilities in respect of the guaranteed obligations and any other obligations owing under this guaranty.  as used in this section 18:  (i) each guarantor’s “contribution percentage” shall mean the percentage obtained by dividing (x) the adjusted net worth (as defined below) of such guarantor by (y) the aggregate adjusted net worth of all guarantors; (ii) the “adjusted net worth” of each guarantor shall mean the greater of (x) the net worth (as defined below) of such guarantor and (y) zero; and (iii) the “net worth” of each guarantor shall mean the amount by which the fair saleable value of such guarantor’s assets on the date of any relevant payment exceeds its existing debts and other liabilities (including contingent liabilities, but without giving effect to any guaranteed obligations arising under this guaranty) on such date.  notwithstanding anything to the contrary contained above, any guarantor that is released from this guaranty pursuant to section 17 hereof shall thereafter have no contribution obligations, or rights, pursuant to this section 18, and at the time of any such release, if the released guarantor had an aggregate excess amount or an aggregate deficit amount, same shall be deemed reduced to $0, and the contribution rights and obligations of the remaining guarantors shall be recalculated on the respective date of release (as otherwise provided above) based on the payments made hereunder by the remaining guarantors.  all parties hereto recognize and agree that, except for any right of contribution arising pursuant to this section 18, each guarantor who makes any payment in respect of the guaranteed obligations shall have no right of contribution or subrogation against any other guarantor in respect of such payment until all of the guaranteed obligations have been irrevocably paid in full in cash.  each of the guarantors recognizes and acknowledges that the rights to contribution arising hereunder shall constitute an asset in favor of the party entitled to such contribution.  in this connection, each guarantor has the right to waive its contribution right against any guarantor to the extent that after giving effect to such waiver such guarantor would remain solvent, in the determination of the required lenders.

 

LIMITATION ON GUARANTEED OBLIGATIONS.  each guarantor and each secured creditor (by its acceptance of the benefits of this guaranty) hereby confirms that it is its intention that this guaranty not constitute a fraudulent transfer or conveyance for purposes of the bankruptcy code, the uniform fraudulent conveyance act of any similar

 

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federal or state law.  to effectuate the foregoing intention, each guarantor and each secured creditor (by its acceptance of the benefits of this guaranty) hereby irrevocably agrees that the guaranteed obligations guaranteed by such guarantor shall be limited to such amount as will, after giving effect to such maximum amount and all other (contingent or otherwise) liabilities of such guarantor that are relevant under such laws and after giving effect to any rights to contribution pursuant to any agreement providing for an equitable contribution among such guarantor and the other guarantors, result in the guaranteed obligations of such guarantor in respect of such maximum amount not constituting a fraudulent transfer or conveyance.

 

COUNTERPARTS.  this guaranty may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  a set of counterparts executed by all the parties hereto shall be lodged with the borrower and the administrative agent.

 

PAYMENTS.  all payments made by any guarantor hereunder will be made without setoff, counterclaim or other defense and on the same basis as payments are made by the borrower under sections 5.03 and 5.04 of the credit agreement.

 

ADDITIONAL GUARANTORS.  it is understood and agreed that any subsidiary of holdings that is required to execute a counterpart of this guaranty after the date hereof pursuant to the credit agreement shall become a guarantor hereunder by (x) executing and delivering a counterpart hereof to the administrative agent or executing a joinder agreement and delivering same to the administrative agent, in each case as may be requested by (and in form and substance satisfactory to) the administrative agent and (y) taking all actions as specified in this guaranty as would have been taken by such guarantor had it been an original party to this guaranty, in each case with all documents and actions required to be taken above to be taken to the reasonable satisfaction of the administrative agent.

 

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HEADINGS DESCRIPTIVE.  the headings of the several sections of this guaranty are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this guaranty.

 

APPLICATION OF PROCEEDS.  all monies collected by the administrative agent hereunder shall be applied in the manner provided in the security agreement.

 

*  *  *

 

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

 

	
 
    	
 
    	
CENTRAL   CREDIT, LLC,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
as   a Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Central Credit, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Central   Credit, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WESTERN   MONEY SYSTEMS
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
as   a Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Western Money Systems
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Western   Money Systems
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
CASH   SYSTEMS, INC.,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
as   a Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Cash Systems, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Cash   Systems, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ARRIVA   CARD, INC.,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
as   a Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Arriva Card, Inc.
    

 

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Arriva   Card, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Guarantor
    

 

Accepted and Agreed to:

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,
 as Administrative Agent

 

	
 
    	
By:
    	
/s/   Deutsche Bank Trust Company Americas
    	
 
    
	
 
    	
 
    	
Deutsche   Bank Trust Company Americas
    
	
 
    	
 
    	
Administrative   Agent
    

 

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