Document:

Amended and Restated Cash Deposti Agreement between James Scoroposki  & GMAC

 
Exhibit
10.41 
 
GMAC COMMERCIAL FINANCE LLC

1290 Avenue of the Americas 
New York, New York 10104 
 
March 31, 2003 
 
Mr. James Scoroposki 
237 Centre Island Road 
Centre Island, New York 11771 
 
Re: Amended and Restated Cash Deposit Agreement 
 
Gentlemen: 
 
Reference is made to the Revolving Credit and Security Agreement, dated as of January 1, 1993, by and among
ACCLAIM ENTERTAINMENT, INC. (“AEI”), ACCLAIM DISTRIBUTION INC. (“ADI”), LJN TOYS, LTD. (“LJN”), ACCLAIM ENTERTAINMENT CANADA, LTD. (“Canada”) and ARENA ENTERTAINMENT INC. (“Arena”; together with AEI,
ADI, LJN and Canada, individually, a “Borrower” and collectively, the “Borrowers”) and GMAC Commercial Finance LLC, successor by merger with GMAC Commercial Credit LLC, formerly known as BNY Factoring LLC, as successor by merger
to BNY Financial Corporation (“Lender”), as amended and restated on February 28, 1995 (as so amended and as the same now exists or may hereafter be amended, restated, renewed, replaced, substituted, supplemented, extended, or otherwise
modified, the “Credit Agreement”) and to the Limited Guaranty dated February 13, 2003 executed by Gregory E. Fischbach (“Pledgor”) in favor of the Lender (the “February Guaranty”) and to the Letter Re: Cash Deposit
dated February 13, 2003 executed by Pledgor (the “February Pledge Letter”). All capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Credit Agreement. This letter amends,
restates, supercedes and replaces in its entirety, without a break in continuity, the February Pledge Letter. 
 
Reference is also made to that certain Limited Guaranty, (“Guaranty”) dated as of the date hereof executed by Pledgor in favor
of Lender pursuant to which Pledgor has guaranteed the Obligations (as defined in the Guaranty) of the Borrowers to Lender not to exceed the aggregate principal amount of One Million ($1,000,000) Dollars, plus (b) interest thereon at the
Default Rate from and after the date of demand thereunder, plus (c) any and all costs, fees and expenses of collection thereunder, including, without limitation, attorneys’ fees and expenses. 
 
Pledgor hereby acknowledges, confirms and agrees that,
concurrently with the execution of this Cash Deposit Letter, Pledgor has made an additional cash deposit in the aggregate amount of Five Hundred Thousand ($500,000) Dollars with Lender to be held by Lender as collateral security for the obligations
of the Pledgor under the Guaranty (collectively, the “Cash Deposit”; 
 

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and together with the $500,000
cash deposit made pursuant to the February Pledge Letter, the “Cash Deposits”). 
 
Pledgor is depositing the Cash Deposit with Lender in his personal capacity as a shareholder of the Borrowers. The Cash Deposit is being made by Pledgor on behalf of and for the benefit of the
Borrowers. 
 
Pledgor hereby grants to Lender a
(and with respect to the cash deposit made pursuant to the February Pledge Letter, ratifies the) continuing first security interest in and right of setoff with respect to the Cash Deposits, securing payment and performance of all of the obligations
of Pledgor under the Guaranty. In the event of a default by Borrowers in payment or performance of the Obligations, when due, or in the event of any other Event of Default under the Credit Agreement or under any other agreement among Lender and any
Borrower or executed by any Borrower in Lender’s favor or guaranteeing, evidencing or standing as collateral security for the Obligations, or in the event of the termination for any reason of any guarantee of the Obligations, then Lender may
immediately apply the Cash Deposits to payment of the Obligations without notice or demand and in such order as Lender shall determine. Pledgor agrees that Lender need not attempt to exercise any of Lender’s rights or remedies with respect to
any other collateral for the Obligations or against any other obligor or guarantor of the Obligations (which rights and remedies may be exercised by Lender in such order and manner as Lender shall elect, and which shall be cumulative and not
exclusive) before applying the Cash Deposits to payment of the Obligations. Lender may add or release any collateral for the Obligations or any party primarily or secondarily liable for the Obligations without affecting Lender’s rights or
recourse with respect to the Cash Deposits. 
 
Any
rights and remedies granted to Lender under the Credit Agreement with respect to collateral security for the Obligations shall apply with equal force to the Cash Deposits. 
 
While held by Lender, the Cash Deposits shall bear interest in Pledgor’s favor at the rate applicable to
“Matured Funds” established by Lender from time to time. 
 
The Cash Deposit made hereunder is in addition to and not in limitation of the Five Hundred Thousand ($500,000) Dollar cash deposit made under the February Pledge Letter. 
 
Notwithstanding anything to the contrary set forth herein, the
Cash Deposits shall be returned to Pledgor (to the extent not previously applied to the Obligations) on September 30, 2003, provided, that, (i) no Event of Default has occurred and is continuing; and (ii) on September 30, 2003: (A) the
Overformula Amount shall not exceed Zero ($0) Dollars; (B) the Permitted Overformula Amount shall not exceed Zero ($0) Dollars; and (C) the aggregate amount of outstanding Obligations under the Credit Agreement shall not exceed Eighteen Million
($18,000,000) Dollars. If, however, at September 30, 2003, Lender has determined, in Lender’s sole and absolute discretion, that any of the foregoing conditions has not been satisfied, then the Cash Deposits shall not be returned to Pledgor at
that time; provided, however, that if at any time after September 30, 2003 Lender has determined, in its sole and absolute discretion, that each of the foregoing conditions has been satisfied (which for purposes of this proviso
shall mean, with respect to the conditions set forth in subclauses (ii)(A), (ii)(B) and (ii)(C) above, that 
 

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such conditions shall each be
satisfied as of the same five (5) consecutive Business Day period for any such period commencing on or after September 30, 2003), then the Cash Deposits shall be returned to Pledgor (to the extent not previously applied to the Obligations) within
five (5) days after such determination by Lender. Satisfaction of each of the foregoing conditions shall be determined by Lender, in Lender’s sole and absolute discretion in accordance with the terms and provisions of the Credit Agreement.

 
If you are in agreement with all of the
foregoing, please so indicate by signing and returning to us the enclosed copy of this letter. 
 

	 Very truly yours,
  
 GMAC COMMERCIAL FINANCE LLC

	
	 By:
	 	 /s/    FRANK
IMPEROLI                   

	 Title:
	 	 Senior Vice
President            

 
AGREED: 
 

	
	 /s/    JAMES R. SCOROPOSKI
          

	 James R. Scoroposki

 

3Amended and Restated Limited Guaranty by Gregory E. Fischbach in favor of GMAC

 
Exhibit
10.42 
 
AMENDED AND RESTATED LIMITED
GUARANTY 
 

	TO:	 	GMAC COMMERCIAL FINANCE LLC 

 
Reference is made to the Revolving Credit and Security Agreement, dated as of January 1, 1993, by and among ACCLAIM ENTERTAINMENT, INC. (“AEI”),
ACCLAIM DISTRIBUTION INC. (“ADI”), LJN TOYS, LTD. (“LJN”), ACCLAIM ENTERTAINMENT CANADA, LTD. (“Canada”) and ARENA ENTERTAINMENT INC. (“Arena”; together with AEI, ADI, LJN and Canada, individually, a
“Borrower” and collectively, the “Borrowers”) and GMAC Commercial Finance LLC, successor by merger with GMAC Commercial Credit LLC, formerly known as BNY Factoring LLC, as successor by merger to BNY Financial Corporation
(together with its successors and assigns, the “Lender”), as amended and restated on February 28, 1995 (as heretofore amended, and as the same now exists or may hereafter be amended, restated, renewed, replaced, substituted, supplemented,
extended, or otherwise modified, the “Credit Agreement”), and to the Limited Guaranty dated February 13, 2003 executed by the undersigned in favor of Lender (the “February Guaranty”), which is amended and restated hereby. The
undersigned hereby guarantees to Lender, its successors and assigns, the prompt payment at maturity, or whenever they may become due in accordance with any of their terms, of all now existing and hereafter arising liabilities, indebtedness and
obligations of the Borrowers to the Lender (including “Obligations,” as defined in the Credit Agreement), arising or acquired in connection with the Credit Agreement, or any transactions arising thereunder or related thereto, by the
Lender, whether direct or indirect, absolute or contingent and whether arising after the commencement of any case with respect to the undersigned or any Borrower under the United States Bankruptcy Code or any similar statute (including, without
limitation, the payment of interest and other amounts which would accrue and become due but for the commencement of such case) (collectively, the “Obligations”) and whether the same may now be or hereafter become due from any Borrower or
the executors, administrators, successors or assigns of any Borrower, including the cost of protest and all legal expenses of or for collection, or for realization upon the collateral (“Collateral”) or other guaranty. If this guaranty
and/or any Obligation is placed with an attorney for collection, the undersigned further agrees to pay an attorney’s fee of fifteen percent of any principal and interest due and demanded, which is hereby agreed to be just and reasonable and
which shall be recoverable with the amount due under this guaranty. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement. 
 
Demand of payment, presentment, protest and notice of dishonor or nonpayment
are hereby expressly waived, and if any of the Obligations are payable on demand, the Lender may, in its sole and absolute discretion, determine the reasonableness of the period, if any, to elapse prior to the making of demand. 
 

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The undersigned hereby
consents and agrees that, without notice to or further assent from the undersigned, the time of payment of all or any of the Obligations, or any other provisions of the Obligations, may be extended, changed or modified, the parties thereto
discharged, any or all Collateral released without obtaining other Collateral in substitution therefor, and any composition or settlement consummated and accepted, and that the undersigned will remain bound upon this guaranty notwithstanding one or
more such extensions, changes, modifications, discharges, releases, compositions or settlements. The undersigned further consents and agrees that this guaranty shall not be impaired or otherwise affected by any failure to call for, take, hold,
protect or perfect, continue the perfection of or enforce any security interest in or other lien upon, any Collateral or by any failure to exercise, delay in the exercise, exercise or waiver of, or forbearance or other indulgence with respect to,
any right or remedy available to the Lender. Any statement of account which is binding on the Borrowers under the Credit Agreement shall be binding on the undersigned for all purposes under this guaranty. 
 
The undersigned assigns, pledges and grants a security interest to the Lender
in any money or property belonging to the undersigned at any time in the possession of the Lender or in the possession of any parent, affiliate or subsidiary of the Lender (hereinafter called a “Related Lender”), including any deposit
balances and all property held by the Lender or a Related Lender for any purpose including safekeeping, custody, transmission, collection, or pledge, and all proceeds of the foregoing, as security for the performance by the undersigned of the
obligations under this guaranty, whether due or not, with full power and authority to apply any such money, property and proceeds to the extinguishment of any such obligations and to sell, enforce, collect or otherwise realize on said money,
property or proceeds in accordance with applicable law. 
 
The
undersigned agrees that the Lender is not to be obligated in any manner to inquire into the powers of any Borrower, or its successors, its or their directors, officers, or agents, acting or purporting to act on its or their behalf, and any
liabilities purporting to be contracted for any Borrower, or its successors, by its or their directors, officers, or agents, in the professed exercise of such powers, shall be deemed to form a part of the liabilities guaranteed hereunder even though
the incurrence of such liabilities be in excess of the powers of any such Borrower, its successors, or its or their directors, officers, or agents aforesaid, or shall be in any way irregular, defective or informal. 
 
The liability of the undersigned on this guaranty shall be immediate, absolute
and continuing, and shall at all times be valid and enforceable irrespective of any other agreements or circumstances of any nature whatsoever which might otherwise constitute a defense hereto. Such liability shall not be conditional or contingent
upon the pursuit by the Lender of whatever remedies it may have against the Borrowers or the Borrowers’ respective successors, executors, administrators or assigns, or the security or liens it may possess on the Borrowers’ property, and
this guaranty shall be and shall be construed as being and intended to be, a continuing guaranty of the payment of any and all Obligations either made, endorsed or contracted by the Borrower, or any respective successor of any of the Borrowers,
prior to the receipt by the Lender of written notice of the revocation of this guaranty by the undersigned, and of all extensions or renewals thereof in whole or in part; and notwithstanding the death of, or the revocation of this guaranty by, the
undersigned guarantor, the liability of the guarantor so revoking and of the estate of the guarantor who dies shall continue as to Obligations incurred or contracted by any of the 
 

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Borrowers, or any respective
successor of the Borrowers, prior to such revocation or death and as to all extensions and renewals thereof, in whole or in part. 
 
If any payment of the Obligations is made by or for the benefit of any of the Borrowers and is repaid by the Lender to any such Borrower or any other
party pursuant to any federal, state or other law, including those relating to bankruptcy, insolvency, preference or fraudulent transfer, then to the extent of such repayment, the liability of the undersigned with respect to such Obligation shall
continue in full force and effect. The undersigned agrees that if the Lender gives to the undersigned written notice of the institution of any action or proceeding with respect to the Obligations, legal or otherwise between the Lender and any
Borrowers, the undersigned shall be conclusively bound by the adjudication in any such legal or other proceeding, or by any judgment or award or decree entered therein. 
 
Until such time as the Obligations have been fully and indefeasibly paid, the undersigned waives any claim or other right
which the undersigned may now have or hereafter acquire against any Borrower or any other person that is primarily or contingently liable on any obligation that arises from the existence or performance of the undersigned’s obligations under
this guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification. 
 
The undersigned also waives the right to assert in any action or proceeding upon this guaranty any defense, offsets or counterclaims which the undersigned
may have with respect thereto. This guaranty shall be governed by and construed and interpreted in accordance with the laws of the State of New York and all actions and proceedings arising out of or in connection therewith shall be litigated in the
federal or state courts of such State or, at the Lender’s option, in any other courts as the Lender may select and the undersigned agrees that such courts are convenient forums and the undersigned submits to the personal jurisdiction of such
courts. This guaranty cannot be altered or discharged orally. Notice of the acceptance of this guaranty is hereby waived. 
 
This guaranty amends, restates, supercedes and replaces in its entirety, without a break in continuity, the February Guaranty. 
 
The continuing liability of the undersigned hereunder is in addition to and
not in limitation of the undersigned’s liability under that certain Limited Recourse Guaranty, dated July 17, 2001 executed by the undersigned in favor of the Lender. 
 
THE UNDERSIGNED WAIVES THE RIGHT TO TRIAL BY JURY IN ALL ACTIONS BROUGHT BY OR AGAINST THE LENDER. 
 
Notwithstanding anything to the contrary contained herein, (1) the continuing
liability of the undersigned hereunder shall not exceed the sum of (a) One Million ($1,000,000) Dollars being held by Lender as cash collateral pursuant to that certain letter re: Cash Deposit dated the date hereof executed by the undersigned in
favor of Lender, plus (b) interest thereon at the Default Rate from and after the date of demand hereunder, plus (c) any and all costs, expenses and reasonable fees of collection hereunder, including, without limitation, attorneys fees
and 
 

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expenses, and (2) the
continuing liability of the undersigned hereunder shall be released effective on September 30, 2003, provided, that, (a) no Event of Default has occurred and is continuing; and (b) on September 30, 2003: (i) the Overformula Amount
shall not exceed Zero ($0) Dollars; (ii) the Permitted Overformula Amount shall not exceed Zero ($0) Dollars; and (iii) the aggregate amount of outstanding Obligations under the Credit Agreement is equal to an amount less than Eighteen Million
($18,000,000) Dollars. If however, at September 30, 2003 Lender has determined in Lender’s sole and absolute discretion, that any of the foregoing conditions has not been satisfied, then the continuing liability of the undersigned hereunder
shall not be terminated at that time; provided however that, if at any time after September 30, 2003, Lender determines, in its sole and absolute discretion, that each of the foregoing conditions have been satisfied (which for
purposes of this proviso shall mean, with respect to the conditions set forth in subclauses (2)(b)(i), (2)(b)(ii), and (2)(b)(iii) above, that such conditions shall each be satisfied as of the same five (5) consecutive Business Day period for any
such period commencing on or after September 30, 2003), then the continuing liability of the undersigned hereunder shall be terminated within five (5) days after such determination by Lender. Satisfaction of each of the foregoing conditions shall be
determined by Lender, in Lender’s sole and absolute discretion in accordance with the terms and provisions of the Credit Agreement. 
 
IN WITNESS WHEREOF, the undersigned has duly executed these presents this 31st day of March, 2003. 
 

	
	 /s/    GREGORY
FISCHBACH             

	 Gregory Fischbach

 

	
	 Address:
	 	 740 Park Avenue, Apartment 17B

	 	 	 New York, New York 10021

 

	 STATE OF NEW YORK
	 	 )

	 	 	 ) ss.

	 COUNTY OF NEW YORK      
	 	 )

 
On this
31st day of March, 2003, before me personally came GREGORY FISCHBACH to me known and known to me to be the individual described in and who executed the foregoing instrument and acknowledged to be that he/she executed same. 
 

	
	 /s/    MARION
WEISFELNER        

	 	 [Notary Seal]

	 Notary Public
	 	 

 

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