Document:

Amended and Restated Limited Guaranty by James Scoroposki  in favor of GMAC

 
Exhibit
10.43 
 
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/    JAMES
SCOROPOSKI        

	 James Scoroposki

 

	
	 Address:
	 	 237 Centre Island Road

	 	 	 Centre Island, New York 11771

 
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
	 	 

 

4Leter of Agreement  between the Company Audit Commitee and Grefory E. Fischbach

 
Exhibit
10.44 
 
[Letterhead] 
 
March 31, 2003 
 
Gregory Fischbach 
Co-Chairman 
Acclaim Entertainment, Inc. 
One Acclaim Plaza 
Glen Cove, New York 11542 
 
James Scoroposki 
Co-Chairman 
Acclaim Entertainment, Inc. 
One Acclaim Plaza 
Glen Cove, New York 11542 
 
Re: Deposit of Cash Collateral and Delivery of Guaranty 
 
Gentlemen: 
 
The purpose of this letter is to memorialize the agreement between Acclaim Entertainment, Inc. (the “Company”) and each of
Gregory Fischbach and James Scoroposki (each a “Guarantor” and collectively, the “Guarantors”) with regard to each of the Guarantors’ guarantee (the “Guaranty”) of the Company’s obligations under a revolving
credit and security agreement dated as of January 1, 1993, as amended (the “Loan Agreement”) by and between the Company and GMAC Commercial Finance LLC (the “Lender”). In furtherance of the Guaranty requested by the Lender each
of the Guarantors has deposited with and pledged to Lender the sum of One Million ($1,000,000) Dollars (the “Cash Collateral”), pursuant to (i) a Cash Deposit Letter, dated March 31, 2003, between each Guarantor and Lender, a copy of which
is attached hereto as Exhibit A, (ii) a Limited Guaranty, dated March 31, 2003, between each Guarantor and Lender, a copy of which is attached hereto as Exhibit B, and (iii) an Amendment and Modification to the Loan Agreement, dated March 31, 2003,
between each Guarantor and Lender (the “Modification Agreement”, and together with the Cash Deposit Letter and the Limited Guaranty, collectively, the “Transaction Documents”). A copy of the Modification Agreement is attached
hereto as Exhibit C. 
 
Each of the parties to the
transaction acknowledge and agree that the Lender would not have entered into the Modification Agreement with the Company without the material inducement of each of the Guarantor’s Guaranty and each of the Guarantor’s deposit of the Cash
Collateral. 
 
Upon written notification from the
Lender to the Guarantors and/or to the Company, that, due to a failure by the Company to comply with the applicable terms and conditions of the Transaction Documents, Lender has, pursuant to the Loan Agreement, applied the Cash Collateral to the
Company’s outstanding obligations with Lender, then the Company hereby irrevocably, 

 
unconditionally, and
absolutely agrees that the total dollar amount of the Cash Collateral, as so applied by Lender to the Company’s outstanding obligations, shall be immediately repaid by the Company to the Guarantors, in an equal amount among the Guarantors,
without notice or demand for payment being made by the Guarantors, and if such amount is not repaid to the Guarantors, then such amount may be offset, dollar for dollar to the extent permissible under applicable law, against any monetary obligations
which the Guarantors may have to the Company. 
 

	 Very truly yours,
  

	 ACCLAIM ENTERTAINMENT, INC. 
  
  

	
	 By:
	 	 /s/    JAMES
SCIBELLI            

	 	 	 James Scibelli
 Chairman, Audit Committee

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