Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Aegis Industries , Inc. - Exhibit 10.3

Exhibit 10.3 

[FORM OF] TERM LOAN NOTE

	$5,000,000 	June __, 2007 

          FOR
VALUE RECEIVED, the undersigned, AEGIS INDUSTRIES, INC., a Nevada
corporation (“Maker”), does hereby promise to pay to the order of
THOMAS KEENAN VENTURES, LLC (“Holder”), at its office at
_______________________________ , or at such other place as the holder hereof
(including Holder, hereinafter referred to as “Holder”) may designate,
the principal sum of FIVE MILLION DOLLARS ($5,000,000), in Dollars and in
immediately available funds, together with interest on the unpaid principal
under this Note beginning on the date hereof, before and after maturity (by
acceleration or otherwise) or judgment (but subject to the default rate of
interest set forth below), at the per annum rates described below, and to pay
all taxes (except taxes on the overall net income or gross receipts of Holder)
levied or assessed on this Note or the debt evidenced hereby against Holder, and
together with all costs, expenses and attorneys' and other professional fees
incurred in any action to collect and/or enforce this Note or other agreement
relating to this Note or in any litigation or controversy arising from or
connected with this Note. 

          This
Note has been executed and delivered subject to the following terms and
conditions: 

1.       
Definitions.

          As
used above, in this Paragraph 1 and elsewhere in this Note, the following terms
shall have the following meanings (such meanings to be equally applicable to
both the singular and plural forms of the terms defined): 

          “Business
Day” means any day that is not a Saturday, Sunday or a day on which commercial
banks located in Hartford, Connecticut are required or authorized by law to
close. 

          “Change
of Control” means any one of the following events: (i) the consummation of a
merger, reorganization, consolidation or sale or other transfer of all or
substantially all of the assets of the Maker or all or substantially all of the
combined voting power of the Maker’s then outstanding voting securities
(“Outstanding Voting Securities”) (each a “Corporate
Transaction”), excluding, however, such a Corporate Transaction pursuant
to which all or substantially all of the persons who are the beneficial owners
of the Outstanding Voting Securities immediately prior to such Corporate
Transaction will beneficially own, directly or indirectly, more than 50% of the
Outstanding Voting Securities of the corporation or other entity resulting from
such Corporate Transaction. 

          “Default
Rate” shall have the meaning assigned to it in Section 2(b) hereof. 

          “Dollar”
and the sign “$” mean lawful money of the United States of America. 

          “Event
of Default” shall have the meaning assigned to that term in Paragraph 7 hereof.

          “Federal
Funds Rate” means, for any day, the rate per annum equal to the weighted average
of the rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal
Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and
(b) if no such rate is so published on such next succeeding Business Day, the
Federal Funds Rate for such day shall be the average rate (rounded upward, if
necessary, to a whole multiple of 1/100 of 1%) charged to banking institutions
on such day on such transactions as determined by Holder. 

          “Guaranty”
means that certain Continuing Guaranty Agreement of Guarantor dated as of even
date herewith in favor of Holder. 

          “Guarantor”
means Aegis Merger Corporation.

          “Loan”
means the loan evidenced by this Note. 

          “Loan
Documents” means this Note, the Guaranty and any other documents relating
thereto. 

          “Maturity
Date” means March 31, 2008. 

          “Merger
Documents” means that certain Agreement and Plan of Merger dated as of even date
herewith by and among Z5 Technologies LLC, Aegis Merger Corporation, Aegis
Industries, Inc. and Thomas Keenan Ventures, LLC, and any other related document
including, but not limited to, the Related Documents, the New Employment
Agreements and the Registration Rights Agreement. 

          “Obligations”
means all advances to, and debts, liabilities, obligations, covenants and duties
of, Maker arising under any Loan Document or otherwise with respect to any loan
by Holder to Maker or under the Merger Documents, whether direct or indirect
(including those acquired by assumption), absolute or contingent, due or to
become due, now existing or hereafter arising and including interest and fees
that accrue after the commencement by or against Maker or any affiliate thereof
of any proceeding under any debtor relief laws naming such person as the debtor
in such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding, and all reasonable out-of-pocket costs, expenses,
fees, charges and attorneys’, paralegals’ and professional fees incurred in
connection with any of the foregoing, or in any way connected with, involving or
relating to the preservation, enforcement, protection or defense of, or
realization under this Agreement, the Note, any of the other Loan Documents or
the Merger Documents, any related agreement, document or instrument, and the
rights and remedies hereunder or thereunder. 

          “Principal
Repayment Date” means each date a payment of principal is due pursuant to
Section 3(b).

          2.           Interest
Rates, Interest Periods, Default Rate, Calculation of Interest, Lawful
Interest. 

2 

          (a)           Pre-default
Rates. Subject to the terms of Paragraph 2(b), the Loan shall bear interest
at a rate per annum equal to five percent (5%).

           (b)           Default
Rate. Upon the occurrence of an Event of Default or after maturity (by
acceleration or otherwise) or after judgment has been rendered on this Note, the
unpaid principal balance of this Note shall automatically and without notice
bear interest at the lesser of (i) thirteen percent (13%), or (ii) the maximum
rate per annum permitted by applicable law, if any (the “Default Rate”).

          (c)           Calculation
of Interest. All computations of interest under this Note shall be made on
the basis of a 360 day year and the actual number of days elapsed.

          (d)          
Lawful Interest. Notwithstanding any provisions of this Note, it is the
understanding and agreement of Maker and Holder that the maximum rate of
interest to be paid by Maker to Holder shall not exceed the highest or the
maximum rate of interest permissible to be charged under the laws of the State
of Connecticut. In this regard, it is expressly agreed that it is the intent of
Maker and Holder in the execution, delivery and acceptance of this Note to
contract in strict accordance with the laws of the State of Connecticut (without
regards to its conflict of laws provisions) from time to time in effect. If, at
any time, the rate of interest, together with all amounts which constitute
interest and which are reserved, charged or taken by Holder as compensation for
fees, services or expenses incidental to the making, negotiating or collection
of the Loan, shall be deemed by any competent court of law or other governmental
authority to exceed the maximum rate of interest permitted to be charged by
Holder to Maker, then, during such time as such rate of interest would be deemed
excessive, that portion of each sum paid attributable to that portion of such
interest rate that exceeds the maximum rate of interest so permitted shall be
deemed a voluntary prepayment of principal. 

3.        Payments.

          (a)           Interest.
Interest on the Loan shall be due and payable in Dollars in immediately
available funds on each Principal Repayment Date. 

          (b)          
Principal. Principal shall be due and payable in Dollars in immediately
available funds as follows: (i) one million two hundred fifty thousand dollars
($1,250,000) on August 15, 2007; (ii) one million two hundred fifty thousand
dollars ($1,250,000) on November 15, 2007; (iii) one million two hundred fifty
thousand dollars ($1,250,000) on February 15, 2008; and (iv) one (1) final
installment in an amount equal to the then outstanding principal on the Maturity
Date. Notwithstanding anything herein to the contrary, unless sooner accelerated
as a result of the occurrence of an Event of Default, the entire outstanding
indebtedness under this Note, including, but not limited to, outstanding
principal together with any and all accrued and unpaid interest and any other
amounts due hereunder, shall be due and payable in full, in Dollars and in
immediately available funds on the Maturity Date. 

          (c)           Method
of Payment. Maker shall make each payment due under this Note to Holder not
later than 3:00 P.M., Stamford, Connecticut time on the date when due in Dollars
in immediately available funds, without setoff, defense or counterclaim.
Whenever any payment to be made under this Note shall be stated to be due on a
day which is not a Business Day, such 

3 

payment shall be made on the next succeeding Business Day, and
such extension of time shall be included in the computation of the payment of
interest. 

4.      Late Charge.
Holder may collect a late charge not to exceed five (5) percent of any
installment of interest or payment of principal or any other amount due to
Holder, which is not paid or reimbursed in full, in Dollars and in immediately
available funds by Maker within ten (10) days of the due date thereof. 

5.      Prepayment. 

          (a)           Voluntary.
Maker may, at its option and upon ten (10) Business Days' prior written notice,
prepay principal evidenced by this Note, in whole or in part, on the condition
that Maker shall pay all accrued interest on the principal being paid to the
date of such prepayment. 

          (b)          
Partial Prepayments. Any and all partial prepayments of the Loan shall be
applied to principal installments due hereunder in the inverse order of maturity
and shall not relieve Maker's obligation to make regularly-scheduled principal
and other payments hereunder. 

6.      RESERVED 

7.      Events of Default;
Remedies. Each of the following shall constitute an “Event of
Default” hereunder: 

          (a)           Maker
shall fail to pay the principal of, premium, if any, or interest on this Note,
or any amount of any fee, or any other indebtedness owing to Holder when and as
the same shall become due and payable, whether at the due date thereof or at a
date fixed for prepayment thereof or by acceleration thereof or otherwise; or

          (b)           immediately
upon the termination of the employment of Brendan Reilly without Cause or for
Good Reason (as such terms are defined in the Employment Agreement by and
between Brendan Reilly and the Maker, dated as of the date hereof); or

          (c)           Maker
and/or Guarantor shall admit to Holdings its inability to pay its debts as they
mature, shall fail generally to pay its debts as they become due, or shall make
an assignment for the benefit of its or any of its creditors; or 

          (d)           Proceedings
in bankruptcy or for reorganization of Maker and/or Guarantor or for the
readjustment, arrangement, composition or adjustment of any of Maker's or
Guarantor's debts under the federal bankruptcy act, as amended, or any part
thereof, or under any other laws, whether state or federal, for the relief of
debtors, now or hereafter existing, (i) shall be commenced by Maker and/or
Guarantor, or (ii) shall be commenced against Maker and/or Guarantor and shall
not be discharged, vacated, dismissed, or stayed within forty-five (45) calendar
days of their commencement, or Maker and/or Guarantor shall discontinue its
business or materially change the nature of its business; or 

          (e)          
A receiver, liquidator or trustee shall be appointed by Maker and/or Guarantor
or by Maker and/or Guarantor for any substantial part of the assets of Maker or
Guarantor, or any proceedings shall be instituted by Maker and/or Guarantor for
the dissolution or the full or partial 

4 

liquidation of Maker and/or Guarantor, or Maker and/or
Guarantor shall discontinue its business or materially change the nature of its
business; or 

          (f)           Guarantor
shall revoke its Guaranty or the Guaranty is otherwise terminated for any reason
whatsoever; or 

          (g)          
In the event of a Change of Control of the Maker. 

          Upon
the occurrence and during the continuance of any Event of Default which is not
cured in a period of seven (7) calendar days, Holder may declare all outstanding
indebtedness hereunder to be forthwith due and payable, whereupon all
indebtedness hereunder shall become and be forthwith due and payable, without
presentment, demand, protest, or any other notice of any kind, all of which are
hereby expressly waived by Maker, anything contained herein or in any other Loan
Document to the contrary notwithstanding; provided, however, that upon
the occurrence of any Event of Default described in Paragraphs 7(c), Paragraph
7(d), and Paragraph 7(e) herein, all outstanding indebtedness hereunder,
including all interest, and all such other amounts payable under this Note and
the other Loan Documents shall become automatically due and payable, without
presentment, demand, protest, or any other notice of any kind, all of which are
hereby expressly waived by Maker, anything contained herein or in any Loan
Document to the contrary notwithstanding. 

          The
occurrence of an Event of Default under this Note shall constitute an event of
default under or within the meaning of any other Loan Documents and vice versa,
and shall also entitle Holder to initiate and pursue, in Holder's sole
discretion exercised on one or more occasions, and all and any rights and
remedies available to Holder hereunder and under any of the other Loan
Documents, without notice to Maker (except as otherwise provided in any Loan
Document). 

8.      Prejudgment Remedy and
Other Waivers. TO INDUCE HOLDER TO ENTER INTO THE COMMERCIAL LOAN
TRANSACTIONS EVIDENCED BY THIS NOTE, AND THE OTHER LOAN DOCUMENTS, MAKER AGREES
THAT THIS IS A COMMERCIAL TRANSACTION AND NOT A CONSUMER TRANSACTION, AND
WAIVES ANY RIGHT TO NOTICE AND A HEARING UNDER CHAPTER 903a OF THE CONNECTICUT
GENERAL STATUTES, AS AMENDED, OR UNDER ANY OTHER FEDERAL OR STATE STATUTE OR
STATUTES OR FOREIGN LAWS AFFECTING PREJUDGMENT REMEDIES, AND AUTHORIZES HOLDER'S
ATTORNEY TO ISSUE A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER, PROVIDED
THE COMPLAINT SHALL SET FORTH A COPY OF THIS WAIVER, AND WAIVES ANY CLAIM IN
TORT, CONTRACT OR OTHERWISE AGAINST HOLDER'S ATTORNEY WHICH MAY ARISE OUT OF
SUCH ISSUANCE OF A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER. FURTHER,
IN THE EVENT HOLDER SEEKS TO TAKE POSSESSION OF ANY OR ALL OF THE COLLATERAL BY
COURT PROCESS OR OTHER METHOD AVAILABLE UNDER THE LAW, MAKER IRREVOCABLY WAIVES
ANY BOND AND ANY SURETY OR SECURITY RELATING THERETO REQUIRED BY ANY STATUTE,
COURT RULE OR OTHERWISE AS AN INCIDENT TO SUCH POSSESSION, AND WAIVES ANY DEMAND
FOR POSSESSION PRIOR TO THE COMMENCEMENT OF ANY SUIT OR ACTION TO RECOVER WITH
RESPECT 

5 

THERETO. SPECIFICALLY, MAKER RECOGNIZES AND UNDERSTANDS THAT
THE EXERCISE OF HOLDER'S RIGHTS DESCRIBED ABOVE MAY RESULT IN THE ATTACHMENT OF
OR LEVY AGAINST MAKER'S PROPERTY, AND SUCH WRIT FOR A PREJUDGMENT REMEDY WILL
NOT HAVE THE PRIOR WRITTEN APPROVAL OR SCRUTINY OF A COURT OF LAW OR OTHER
JUDICIAL OFFICER AND MAKER WILL NOT HAVE THE RIGHT TO ANY NOTICE OR PRIOR
HEARING WHERE MAKER MIGHT CONTEST SUCH A PROCEDURE. THE INTENT OF MAKER IS TO
GRANT TO HOLDER FOR GOOD AND VALUABLE CONSIDERATION THE RIGHT TO OBTAIN SUCH A
PREJUDGMENT REMEDY AND TO EXPRESS ITS BELIEF THAT ANY SUCH PREJUDGMENT REMEDY
OBTAINED IS VALID AND CONSTITUTIONAL UNLESS A COURT OF COMPETENT JURISDICTION
SHOULD DETERMINE OTHERWISE. FURTHER, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, MAKER HEREBY WAIVES DEMAND, PRESENTMENT FOR PAYMENT, PROTEST,
NOTICE OF PROTEST, NOTICE OF DISHONOR, DILIGENCE IN COLLECTION, NOTICE OF
NONPAYMENT OF THIS NOTE AND ANY AND ALL NOTICES OF A LIKE NATURE. FURTHER, TO
THE EXTENT NOT OTHERWISE EXPRESSLY PROVIDED HEREIN, MAKER EXPRESSLY WAIVES ALL
DEFENSES BASED UPON SURETYSHIP OR IMPAIRMENT OF COLLATERAL. MAKER CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF HOLDER HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT HOLDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
ANY OF THE WAIVERS GRANTED ABOVE. MAKER ACKNOWLEDGES AND STIPULATES THAT THE
WAIVERS AND AUTHORIZATIONS GRANTED ABOVE ARE MADE KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY AND AFTER FULL CONSULTATION WITH COUNSEL AND CONSTITUTE A MATERIAL
INDUCEMENT FOR HOLDER TO MAKE THE LOANS. 

9.      Jury Trial Waiver.
MAKER AND HOLDER MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE OR ANY OTHER LOAN DOCUMENTS OR ANY
COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT,
COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF HOLDER RELATING TO THE
ADMINISTRATION OF ANY OF THE LOANS OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND
AGREE THAT NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER
ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS
PROHIBITED BY LAW, MAKER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER
IN ANY LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR
ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. MAKER CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF HOLDER HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT HOLDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
ANY OF THE WAIVERS GRANTED ABOVE. MAKER ACKNOWLEDGES AND STIPULATES THAT THE
WAIVERS AND 

6 

AUTHORIZATIONS GRANTED ABOVE ARE MADE KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY AND AFTER FULL CONSULTATION WITH COUNSEL AND CONSTITUTE A
MATERIAL INDUCEMENT FOR HOLDER TO MAKE THE LOANS. 

10.      No Waiver. Failure by
Holder to insist upon the strict performance by Maker of any terms and
provisions herein shall not be deemed to be a waiver of any terms and provisions
herein, and Holder shall retain the right thereafter to insist upon strict
performance by Maker of any and all terms and provisions of this Note or any
other Loan Documents. 

11.      General. No
course of dealing on the part of Holder nor any delay on the part of Holder in
exercising any right hereunder or under any other Loan Documents shall operate
as a waiver of any such right, and any waiver granted for one occasion shall not
operate as a waiver in the event of a subsequent default. The rights and
remedies of Holder hereof shall be cumulative and not in the alternative, and
shall include all rights and remedies granted herein, in any other Loan
Documents and under all applicable laws. This Note is the final, complete and
exclusive statement of the terms governing the Loan. 

12.      Acknowledgment
of Copy, Replacement Note. Maker acknowledges receipt of a copy of this
Note. Upon receipt of any affidavit of an officer of Holder as to the loss,
theft, destruction or mutilation of this Note or any other Loan Document which
is not of public record, if any, and, in the case of any such loss, theft,
destruction or mutilation, upon surrender and cancellation of such Note or other
Loan Document, Maker will issue, in lieu thereof, a replacement of this Note or
other Loan Document in the same principal amount thereof and otherwise of like
tenor. 

13.      Assignments.
Maker hereby agrees that Holder, in its sole discretion, shall have the
unrestricted right at any time and from time to time, and without Maker's or any
Guarantor's consent, to assign all or a portion of its rights and obligations
under this Note and other Loan Documents to one or more banks, other financial
institutions, or any other person or entity (each, an “Assignee”). In the
event of any such assignment to an Assignee, Maker and each Guarantor agrees
that it shall execute, or cause to be executed, such documents, including
without limitation, amendments to this Note and to any other Loan Document, as
Holder shall deem reasonably necessary to effect the foregoing (provided,
however, that such documents and amendments do not substantively affect the
terms of the Loan). In addition, at the request of Holder and any such Assignee,
Maker shall issue one or more new Notes, as applicable, to any such Assignee
and, if Holder has retained any of its rights and obligations following such
assignment, to Holder, which new Notes shall be issued in replacement of, but
not in discharge of, the Obligations evidenced by this Note prior to such
assignment and shall reflect the amount of the respective Loans held by such
Assignee and Holder after giving effect to such assignment. Upon the execution
and delivery of appropriate assignment documentation, amendments and any other
documentation required by Holder in connection with such assignment, such
Assignee shall be a party to this Note and shall have all of the rights and
obligations of Holder hereunder (and under any and all other Loan Documents) to
the extent that such rights and obligations have been assigned by Holder
pursuant to the assignment documentation between Holder and such Assignee, and
Holder shall be released form its obligations hereunder to a corresponding
extent. Holder may furnish any information concerning Maker in its possession
from time to time to Assignees and prospective Assignees, provided that
Holder shall require any such Assignees 

7 

and prospective Assignees to agree in writing to maintain the
confidentiality of such information, except as required by applicable laws or
governmental authorities. 

14.      Governing Law.
This Note shall be governed by the laws of the State of Connecticut (without
regard to its conflicts of law provisions). 

15.      Severability. If
any provision of this Note is deemed void, invalid or unenforceable under
applicable law, such provision is and will be deemed to be totally ineffective
to that extent, but the remaining provisions shall be deemed unaffected and
shall remain in full force and effect. 

16.      Successors and
Assigns. The provisions of this Note shall bind the assigns and successors
of Maker and shall inure to the benefit of Holder, its successors and assigns.

           
IN WITNESS WHEREOF, Maker has caused this Note to be duly executed as a sealed
instrument. 

AEGIS INDUSTRIES, INC.

By:
__________________________________________

      
Its_____________________________

8Filed by Automated Filing Services Inc. (604) 609-0244 - Aegis Industries , Inc. - Exhibit 10.4

Exhibit 10.4 

[FORM OF] CONTINUING GUARANTY AGREEMENT 

          This
CONTINUING GUARANTY AGREEMENT (the “Guaranty”), dated as of May __, 2007
by AEGIS MERGER CORPORATION, a Delaware corporation (the
“Guarantor”), in favor of THOMAS KEENAN VENTURES, LLC
(“TKV”). 

PREAMBLE 

          Reference
is made to that certain $5,000,000 term loan (the “Loan”) from TKV to
Aegis Industries, Inc., a Nevada corporation (the “Company”), which Loan
is evidenced by, among other things, a Term Loan Note of the Company in favor of
TKV (as the same may be amended, supplemented, modified or replaced from time to
time, the “Note”). 

          The
Company owns 100% of the issued and outstanding capital stock of the Guarantor
and as such the Guarantor will receive a direct material benefit from the
extension of the Loan by TKV to the Company. 

          In
consideration of and as a material inducement for TKV having extended the Loan
to the Company, the Guarantor does hereby represent, warrant, covenant and agree
as follows: 

          1.
Definitions. 

          The
term “Obligations” and all other capitalized terms used herein without
definition shall have the respective meanings provided therefor in the Note.

          2.
Guaranty of Payment and Performance. 

          The
Guarantor hereby guarantees to TKV the full and punctual payment when due
(whether at stated maturity, by required pre-payment, by acceleration or
otherwise), of (a) the principal of and premium, if any, and interest on the
Loan, (b) obligations of the Company under the Note, and (c) all other monetary
Obligations of the Company to TKV, including, without limitation, all fees,
costs, expenses and indemnities, whether primary, secondary, direct, contingent,
fixed or otherwise, in each case whether now in existence or hereafter incurred
or arising, including all such Obligations which would become due but for the
operation of the automatic stay pursuant to §362(a) of the Federal Bankruptcy
Code and the operation of §§502(b) and 506(b) of the Federal Bankruptcy Code
(collectively, the “Guaranteed Obligations”). This Guaranty is an
absolute, unconditional and continuing guaranty of the full and punctual payment
and performance of all of the Guaranteed Obligations and not of their
collectibility only and is in no way conditioned upon any requirement that TKV
first attempt to collect any of the Guaranteed Obligations from the Company or
any other entity or other person primarily or secondarily liable with respect to
any of the Guaranteed Obligations or resort to any collateral security or other
means of obtaining payment. Should the Company default in the payment or
performance of any of the Guaranteed Obligations, the obligations of the
Guarantor 

hereunder with respect to such Guaranteed Obligations in
default shall become immediately due and payable to the TKV, without demand or
notice of any nature, all of which are expressly waived by the Guarantor.
Payments by the Guarantor hereunder may be required by TKV on any number of
occasions. 

          2.1.
Guarantor’s Agreement to Pay Enforcement Costs, etc. 

          The
Guarantor further agrees, as the principal obligor and not as a guarantor only,
to pay to TKV, on demand, all costs and expenses (including court costs and
legal expenses) incurred or expended by TKV following the occurrence and during
the continuation of an Event of Default in connection with the Guaranteed
Obligations, this Guaranty and the enforcement thereof, together with interest
on amounts recoverable under this §3 from the time when such amounts become due
until payment, whether before or after judgment, at the Default Rate,
provided that if such interest exceeds the maximum amount permitted to be
paid under applicable law, then such interest shall be reduced to such maximum
permitted amount. 

          3.
Waivers by Guarantor; TKV’s Freedom to Act. 

          The
Guarantor agrees that the Guaranteed Obligations will be paid and performed
strictly in accordance with their respective terms, regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of TKV with respect thereto. The Guarantor waives
promptness, diligences, presentment, demand, protest, notice of acceptance,
notice of any Guaranteed Obligations incurred and all other notices of any kind,
all defenses which may be available by virtue of any valuation, stay, moratorium
law or other similar law now or hereafter in effect, any right to require the
marshalling of assets of the Company or any other entity or other person
primarily or secondarily liable with respect to any of the Guaranteed
Obligations, and all suretyship defenses generally. Without limiting the
generality of the foregoing, the Guarantor agrees to the provisions of all Loan
Documents evidencing, securing or otherwise executed in connection with any
Guaranteed Obligation and agrees that the obligations of the Guarantor hereunder
shall not be released or discharged, in whole or in part, or otherwise affected
by (i) the failure of TKV to assert any claim or demand or to enforce any right
or remedy against the Company or any other entity or other person primarily or
secondarily liable with respect to any of the Guaranteed Obligations; (ii) any
extensions, compromise, refinancing, consolidation or renewals of any Guaranteed
Obligation; (iii) any change in the time, place or manner of payment of any of
the Guaranteed Obligations or any rescissions, waivers, compromise, refinancing,
consolidation, amendments or modifications of any of the terms or provisions of
any Loan Document evidencing, securing or otherwise executed in connection with
any of the Guaranteed Obligations; (iv) the addition, substitution or release of
any entity or other person primarily or secondarily liable for any Guaranteed
Obligation, (v) the adequacy of any rights which TKV may have against any
collateral security or other means of obtaining repayment of any of the
Guaranteed Obligations; (vi) the impairment of any collateral securing any of
the Guaranteed Obligations, including without limitation the failure to perfect
or preserve any rights which TKV might have in such collateral security or the
substitution, exchange, surrender, release, loss or destruction of any such
collateral security; or (vii) any other act or omission (other than wrongful
acts or omissions of TKV that affect the validity or enforceability of the
Obligations against the Company) which might in any manner or to any extent vary
the risk of the Guarantor or otherwise operate as a release or discharge of the

-2-

Guarantor, all of which may be done without notice to the
Guarantor. To the fullest extent permitted by law, the Guarantor hereby
expressly waives any and all rights or defenses arising by reason of (A) any
“one action” or “anti-deficiency” law which would otherwise prevent TKV from
bringing any action, including any claim for a deficiency, or exercising any
other right or remedy (including any right of set-off), against the Guarantor
before or after TKV’s commencement or completion of any foreclosure action,
whether judicially, by exercise of power of sale or otherwise, or (B) any other
law which in any other way would otherwise require any election of remedies by
TKV. 

          4.
Unenforceability of Guaranteed Obligations Against Company. 

          If
for any reason the Company has no legal existence or is under no legal
obligation to discharge any of the Guaranteed Obligations, or if any of the
Guaranteed Obligations have become irrecoverable from the Company by reason of
the Company’s insolvency, bankruptcy or reorganization or by other operation of
law or for any other reason, this Guaranty shall nevertheless be binding on the
Guarantor to the same extent as if the Guarantor at all times had been the
principal obligor on all such Guaranteed Obligations. In the event that
acceleration of the time for payment of any of the Guaranteed Obligations is
stayed upon the insolvency, bankruptcy or reorganization of the Company, or for
any other reason, all such amounts otherwise subject to acceleration under the
terms of any Loan Document evidencing, securing or otherwise executed in
connection with any Guaranteed Obligation shall be immediately due and payable
by the Guarantor. 

          5.
Subrogation; Subordination. 

          5.1.
Waiver of Rights Against Company. 

          Until
the final payment and performance in full of all of the Guaranteed Obligations
and any and all other obligations of the Company to TKV or any affiliate of TKV,
the Guarantor shall not exercise any rights against the Company arising as a
result of payment by the Guarantor hereunder, by way of subrogation,
reimbursement, restitution, contribution or otherwise, and will not prove any
claim in competition with TKV or such affiliate in respect of any payment
hereunder in any bankruptcy, insolvency or reorganization case or proceedings of
any nature; the Guarantor will not claim any setoff, recoupment or counterclaim
against the Company in respect of any liability of the Guarantor to the Company;
and the Guarantor waives any benefit of and any right to participate in any
collateral security which may be held by TKV or any such affiliate.

          5.2.
Subordination. 

          The
payment of any amounts due with respect to any indebtedness of the Company now
or hereafter owed to the Guarantor is hereby subordinated to the prior payment
in full of all of the Guaranteed Obligations and any and all other obligations
of the Company to TKV or any affiliate of TKV. The Guarantor agrees that, after
the occurrence of any default in the payment or performance of any of the
Guaranteed Obligations, the Guarantor will not demand, sue for or otherwise
attempt to collect any such indebtedness of the Company to the Guarantor until
all of the Guaranteed 

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Obligations shall have been paid in full. If, notwithstanding
the foregoing sentence, the Guarantor shall collect, enforce or receive any
amounts in respect of such indebtedness, such amounts shall be collected,
enforced and received by the Guarantor as trustee for the TKV and be paid over
to TKV on account of the Guaranteed Obligations without affecting in any manner
the liability of the Guarantor under the other provisions of this Guaranty. 

          6.
Further Assurances. 

          The
Guarantor agrees to do all such things and execute all such documents as TKV may
reasonably consider necessary or desirable to give full effect to this Guaranty
and to perfect and preserve the rights and powers of TKV hereunder. The
Guarantor acknowledges and confirms that the Guarantor itself has established
its own adequate means of obtaining from the Company on a continuing basis all
information desired by the Guarantor concerning the financial condition of the
Company and that the Guarantor will look to the Company and not to TKV in order
for the Guarantor to keep adequately informed of changes in the Company’s
financial condition. 

          7.
Termination; Reinstatement. 

          This
Guaranty shall remain in full force and effect notwithstanding any attempt by
the Guarantor to revoke this Guaranty. This Guaranty shall continue to be
effective or be reinstated, notwithstanding any such attempted revocation, if at
any time any payment made or value received with respect to any Guaranteed
Obligation is rescinded or must otherwise be returned by TKV upon the
insolvency, bankruptcy or reorganization of the Company, or otherwise, all as
though such payment had not been made or value received. 

          8.
Successors and Assigns. 

          This
Guaranty shall (i) be binding upon the Guarantor and the Guarantor’s permitted
successors and assigns, provided that the Guarantor shall have no right
to assign or transfer any of the Guarantor’s obligations hereunder, and (ii)
inure to the benefit of, and be enforceable by, TKV, its successors, transferees
and assigns, and any person who shall from time to time be the owner or holder
of any of the Guaranteed Obligations. Without limiting the generality of the
foregoing sentence, TKV may assign or otherwise transfer any Loan Document held
by it evidencing, securing or otherwise executed in connection with the
Guaranteed Obligations, or sell participations in any interest therein, to any
other entity or other person, and such other entity or other person shall
thereupon become vested, to the extent set forth in the agreement evidencing
such assignment, transfer or participation, with all the rights in respect
thereof granted to the TKV herein. 

          9.
Amendments and Waivers. 

          No
amendment or waiver of any provision of this Guaranty nor consent to any
departure by the Guarantor therefrom shall be effective unless the same shall be
in writing and signed by TKV. No failure on the part of TKV to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right hereunder preclude any other
or further exercise thereof or the exercise of any other right. 

-4-

          10.
Notices. 

          All
notices and other communications called for hereunder shall be made in writing
and, unless otherwise specifically provided herein, shall be made or given in
the manner set forth in the Security Agreement. 

          11.
Governing Law; Consent to Jurisdiction. 

          THIS
GUARANTY IS INTENDED TO TAKE EFFECT AND SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF CONNECTICUT. The Guarantor agrees
that any suit for the enforcement of this Guaranty may be brought in the courts
of the State of Connecticut or any federal court sitting therein and consents to
the nonexclusive jurisdiction of such court and to service of process in any
such suit being made upon the Guarantor by registered or certified mail, return
receipt requested, at the address set forth in the Security Agreement. The
Guarantor hereby waives any objection that it may now or hereafter have to the
venue of any such suit or any such court or that such suit was brought in an
inconvenient court. 

          12.
Waiver of Jury Trial. 

          THE
GUARANTOR AND TKV (BY ITS ACCEPTANCE OF THIS GUARANTY) HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF
ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
GUARANTY OR ANY OTHER LOAN DOCUMENTS OR ANY COURSE OF CONDUCT, COURSE OF
DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY,
INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF DEALINGS,
STATEMENTS OR ACTIONS OF TKV RELATING TO THE ADMINISTRATION OF THE LOANS OR
ENFORCEMENT OF THIS GUARANTY OR THE OTHER LOAN DOCUMENTS, AND AGREE THAT NEITHER
PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A
JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, THE
GUARANTOR HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY
LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY
DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. The Guarantor (i)
certifies that neither TKV nor any representative, agent or attorney of TKV has
represented, expressly or otherwise, that TKV would not, in the event of
litigation, seek to enforce the foregoing waivers and (ii) acknowledges that, in
entering into the Loan Documents to which TKV is a party, TKV is relying upon,
among other things, the waivers and certifications contained in this §13. 

          13.
Miscellaneous. 

          This
Guaranty constitutes the entire agreement of the Guarantor with respect to the
matters set forth herein. The rights and remedies herein provided are cumulative
and not exclusive of any remedies provided by law or any other agreement, and
this Guaranty shall be in addition to any other guaranty of or collateral
security for any of the Guaranteed Obligations.

-5-

The invalidity or unenforceability of any one or more sections
of this Guaranty shall not affect the validity or enforceability of its
remaining provisions. Captions are for the ease of reference only and shall not
affect the meaning of the relevant provisions. The meanings of all defined terms
used in this Guaranty shall be equally applicable to the singular and plural
forms of the terms defined. 

          14.
Prejudgment Remedy Waiver. 

          TO
INDUCE TKV TO ENTER INTO THE COMMERCIAL LOAN TRANSACTIONS EVIDENCED BY THE
CREDIT AGREEMENT, THE NOTES, AND ANY OTHER LOAN DOCUMENTS, GUARANTOR AGREES THAT
THIS IS A COMMERCIAL TRANSACTION AND NOT A CONSUMER TRANSACTION, AND
WAIVES ANY RIGHT TO NOTICE AND A HEARING UNDER CHAPTER 903a OF THE CONNECTICUT
GENERAL STATUTES, AS AMENDED, OR UNDER ANY OTHER FEDERAL OR STATE STATUTE OR
STATUTES OR FOREIGN LAWS AFFECTING PREJUDGMENT REMEDIES, AND AUTHORIZES TKV’S
ATTORNEY TO ISSUE A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER, PROVIDED
THE COMPLAINT SHALL SET FORTH A COPY OF THIS WAIVER, AND WAIVES ANY CLAIM IN
TORT, CONTRACT OR OTHERWISE AGAINST TKV’S ATTORNEY WHICH MAY ARISE OUT OF SUCH
ISSUANCE OF A WRIT FOR A PREJUDGMENT REMEDY WITHOUT COURT ORDER. FURTHER, IN THE
EVENT TKV SEEKS TO TAKE POSSESSION OF ANY OR ALL OF GUARANTOR’S PROPERTIES OR
OTHER ASSETS BY COURT PROCESS OR OTHER METHOD AVAILABLE UNDER THE LAW, GUARANTOR
IRREVOCABLY WAIVES ANY BOND AND ANY SURETY OR SECURITY RELATING THERETO REQUIRED
BY ANY STATUTE, COURT RULE OR OTHERWISE AS AN INCIDENT TO SUCH POSSESSION, AND
WAIVES ANY DEMAND FOR POSSESSION PRIOR TO THE COMMENCEMENT OF ANY SUIT OR ACTION
TO RECOVER WITH RESPECT THERETO. SPECIFICALLY, GUARANTOR RECOGNIZES AND
UNDERSTANDS THAT THE EXERCISE OF TKV’S RIGHTS DESCRIBED ABOVE MAY RESULT IN THE
ATTACHMENT OF OR LEVY AGAINST GUARANTOR’S PROPERTY, AND SUCH WRIT FOR A
PREJUDGMENT REMEDY WILL NOT HAVE THE PRIOR WRITTEN APPROVAL OR SCRUTINY OF A
COURT OF LAW OR OTHER JUDICIAL OFFICER AND GUARANTOR WILL NOT HAVE THE RIGHT TO
ANY NOTICE OR PRIOR HEARING WHERE GUARANTOR MIGHT CONTEST SUCH A PROCEDURE. THE
INTENT OF GUARANTOR IS TO GRANT TO TKV FOR GOOD AND VALUABLE CONSIDERATION THE
RIGHT TO OBTAIN SUCH A PREJUDGMENT REMEDY AND TO EXPRESS ITS BELIEF THAT ANY
SUCH PREJUDGMENT REMEDY OBTAINED IS VALID AND CONSTITUTIONAL UNLESS A COURT OF
COMPETENT JURISDICTION SHOULD DETERMINE OTHERWISE. FURTHER, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, GUARANTOR HEREBY WAIVES DEMAND, PRESENTMENT
FOR PAYMENT, PROTEST, NOTICE OF PROTEST, NOTICE OF DISHONOR, DILIGENCE IN
COLLECTION, NOTICE OF NONPAYMENT OF ANY NOTES AND ANY AND ALL NOTICES OF A LIKE
NATURE. FURTHER, TO THE EXTENT NOT OTHERWISE EXPRESSLY PROVIDED HEREIN,
GUARANTOR EXPRESSLY WAIVES ALL DEFENSES OF SURETYSHIP OR IMPAIRMENT OF
COLLATERAL. 

-6-

          GUARANTOR
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF TKV HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT TKV WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVERS. GUARANTOR ACKNOWLEDGES AND STIPULATES THAT THE
WAIVERS GRANTED ABOVE ARE MADE KNOWINGLY, VOLUNTARILY AND INTENTIONALLY AND
AFTER FULL CONSULTATION WITH COUNSEL AND CONSTITUTE A MATERIAL INDUCEMENT FOR
TKV TO MAKE THE LOAN. 

          15.
Other Guarantors. 

          The
Guarantor acknowledges that other individuals or entities have or may also from
time to time become primarily or secondarily liable with respect to any of the
Guaranteed Obligations (including each other guarantor, the “Other
Guarantors”), in which event the liability of the Guarantor hereunder shall
be joint and several. The Guarantor further acknowledges that the failure of any
of the Other Guarantors, if any, to execute and deliver their respective
guarantees shall not discharge the liability of the Guarantor under this
Guaranty. 

[THE NEXT PAGE IS THE SIGNATURE PAGE] 

-7-

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

AEGIS MERGER CORPORATION

By_______________________________
             
Authorized Representative 

 

-8-

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