Document:

ex_102276.htm

Exhibit 10.2

 

EXECUTION VERSION

 

SECURED PROMISSORY NOTE

 

	
			$5,750,000

				
			December 13, 2017

			

 

FOR VALUE RECEIVED, and intending to be legally bound, CBC Holdings LLC, a Delaware limited liability company (“CBC Holdings” or the “Maker”) hereby promises to pay to ASTA FUNDING, INC., a Delaware corporation or its assignee (the “Holder”), the sum of FIVE MILLION SEVEN HUNDRED AND FIFTY THOUSAND DOLLARS ($5,750,000) (the “Principal Amount”) in lawful money of the United States of America, on the terms and conditions set forth in this Note (the “Note”).

 

1.     Background. Pursuant to that certain Securities Purchase Agreement (the “Purchase Agreement”), dated as of December 13, 2017 by and among CBC Holdings, CBC Settlement Funding, LLC, a Delaware limited liability company (the “Company”), and Holder, CBC Holdings purchased from Holder, and Holder sold to CBC Holdings, all of the issued and outstanding equity capital (collectively, the “Company Interest”) of the Company. All capitalized terms used but not defined herein shall have the respective meanings given to them in the Purchase Agreement. CBC Holdings is executing this Note in partial payment of the Purchase Price for the Company Interest and this Note is the Promissory Note referenced in Section 2.2(a) of the Purchase Agreement. The Note shall be secured pursuant to that certain Security Agreement, dated December 13, 2017, by and between SuttonPark Servicing LLC, a Delaware limited liability company, an affiliate of CBC Holdings, and the Holder and by that certain joint and several Guarantee of even date herewith, which Guarantee in favor of Holder is being provided as additional security by SuttonPark Capital LLC and 777 Partners LLC.

 

2.     Interest. Interest shall accrue on the outstanding Principal Amount from time to time remaining unpaid under this Note from the date of this Note through the date of repayment at the rate of seven percent (7%) per annum. All computations of interest shall be made on the basis of a year of 360 days and the actual number of days elapsed.

 

3.     Payments; Prepayments.

 

(a)     Subject to the last sentence of clause (c) below, commencing on March 8, 2018, on the 8th day of each calendar quarter (each, a “Payment Date”), the Maker shall make quarterly payments of principal and interest on the Note, calculated on the basis of the level three (3) year amortization schedule attached hereto as Schedule I. All Obligations shall be due and payable on December 13, 2020. If any Payment Date does not fall on a Business Day, the related payment will be made on the next Business Day thereafter. 

 

(b)     Each payment shall be made by Maker on the applicable Payment Date by wire transfer of immediately available funds to such account as shall be designated by Holder.

 

(c)     At any time, Maker may prepay this Note in part or in full, without penalty or fee. Notwithstanding the foregoing, on the date hereof, the Maker shall prepay, without penalty or fee, the related interest and principal payment that is due hereunder on the initial Payment Date.

 

(d)     To the extent that the Guarantors (as defined in the Guarantee) experience (i) an initial public offering or (ii) a private sale of substantially all of the ownership interests in the Guarantors or the Guarantors sell all or substantially all of their assets, in each case, other than a sale to an affiliate (each of (i) and (ii), a “Liquidity Event”), then the balance of all principal and accrued interest due under this Note shall be paid in full within thirty (30) days of the Liquidity Event.

 

 

 

 

4.     Security.

 

(a)     The obligations of Maker hereunder and its performance thereof will be secured by a first priority security interest in, to and under all the Collateral (as defined in that certain Security Agreement to be entered into between SuttonPark Servicing LLC and Holder).

 

(b)     All payments shall be applied first to accrued interest on the unpaid Principal Amount and then to the reduction of the unpaid Principal Amount. All payments shall be made in lawful money of the United States of America at the principal offices of Holder.

 

5.     Events of Default. The occurrence of any of the following shall constitute an “Event of Default” under this Note:

 

(a)     Maker fails to make any required payment of the Principal Amount or interest when due hereunder, and such failure is not cured within five (5) Business Days;

 

(b)     Maker fails to satisfy any of the other covenants, terms or conditions of this Note and such failure continues unwaived for more than thirty (30) days after Holder has notified Maker in writing of such failure and demanded a cure thereof;

 

(c)     Maker shall: (i) apply for or consent to the appointment of a receiver, trustee or liquidator of itself or of its property; (ii) be unable, or admit in writing its inability, to pay its debts as they mature; (iii) make a general assignment for the benefit of creditors; (iv) be adjudicated a bankrupt or insolvent; (v) file a voluntary petition in bankruptcy, or a petition or answer seeking reorganization or an arrangement with creditors to take advantage of any insolvency law, or an answer admitting the material allegations of a bankruptcy, reorganization or insolvency petition filed against it; (vi) take company action for the purpose of effecting any of the foregoing; or (vii) have an order for relief entered against it in any proceeding under the United States Bankruptcy Code which shall continue unstayed and in effect for any period of 60 consecutive calendar days; or

 

(d)     an order, judgment or decree shall be entered, without the application, approval or consent of Maker, by any court of competent jurisdiction, approving a petition seeking reorganization of Maker or appointing a receiver, trustee or liquidator of Maker or of all or a substantial part of its assets, and such order, judgment or decree shall continue unstayed and in effect for any period of 60 consecutive calendar days.

 

6.     Remedies.

 

(a)     If there shall occur any Event of Default, upon delivery of written notice by Holder to Maker, the entire unpaid balance of the Principal Amount, together with all other sums due and payable under this Note (collectively, the “Obligations”) shall be immediately due and payable and Holder shall be entitled to foreclose on, and exercise all remedies available under applicable law, including without limitation, with respect to the Collateral.

 

 

 

 

(b)     All rights and remedies of Holder under this Note and any applicable law are separate and cumulative, and the exercise of one shall not limit or prejudice the exercise of any other such rights or remedies. No delay or omission by Holder in exercising any right or remedy shall operate as a waiver thereof. No waiver of any rights and remedies hereunder, and no modification or amendment of this Note, shall be deemed made by Holder unless in writing and duly signed by Holder. Any such written waiver shall apply only to the particular instance specified therein and shall not impair the further exercise of such right or remedy or of any other right or remedy of Holder, and no single or partial exercise of any right or remedy under this Note shall preclude any other or further exercise thereof or any other right or remedy.

 

7.     Attorneys’ Fees and Collection Costs. Maker agrees to pay all of Holder’s reasonable attorneys’ fees and collection costs and expenses associated with the enforcement of this Note to the fullest extent permitted by applicable law.

 

8.     Waiver. Maker expressly, explicitly and unconditionally waives presentment, demand, protest, notice of protest and any and all other notices and defenses, claims and counterclaims in connection with this Note, except as specifically provided for herein. Maker acknowledges that this Note constitutes an instrument for the payment of money only within the meaning of CPLR Section 3213.

 

9.     Offsets. Holder hereby acknowledges and agrees that any payment owing by Maker under this Note may be reduced by the amount of any Losses (each as defined in the Purchase Agreement) under Section 7.2 (Tax Matters) and Section 8.2 (Indemnification) of the Purchase Agreement, subject to the limitations set forth in Section 8.3 (Limitations on Liability) of the Purchase Agreement.

 

10.     Governing Law. This Note and all matters arising out of or in any way related to this Note shall be governed by and construed in accordance with the laws of the State of New York (including Section 5-1401 of the General Obligations Law but otherwise without regard to conflict of law provisions).

 

11.     Waiver of Jury Trial. MAKER AGREES THAT ANY SUIT, ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM, BROUGHT OR INSTITUTED BY HOLDER ON OR WITH RESPECT TO THIS NOTE OR THE DEALING OF THE PARTIES WITH RESPECT THERETO, SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY. MAKER HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING AND ACKNOWLEDGES AND AGREES THAT HOLDER WOULD NOT EXTEND CREDIT TO MAKER IF THIS WAIVER OF JURY TRIAL WERE NOT A PART HEREOF. WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER AGREE THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS NOTE OR ANY PROVISIONS HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE.

 

 

 

 

12.     Submission to Jurisdiction. ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF NEW YORK IN EACH CASE LOCATED IN THE COUNTY OF NEW YORK, AND MAKER IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO MAKER’S ADDRESS SET FORTH IN THE PURCHASE AGREEMENT SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT. THE MAKER IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

13.     Severability. If any provision of this Note is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Note will remain in full force and effect. Any provision of this Note held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable. The parties consent to the reformation of any invalid or unenforceable provision so that it is enforceable to the maximum extent permitted by law.

 

14.     Certain Tax Matters

 

(a)     The Maker shall maintain a register for the recordation of the name(s) and address(es) of the Holder (or any assignee of the Holder), and principal amount (and stated interest) of the Note owing to the Holder (or any assignee of the Holder) pursuant to the terms hereof (the “Register”). The entries in the Register shall be conclusive absent manifest error and the Maker and the Holder (or any assignee of the Holder) shall treat each person whose name is recorded on the Register pursuant to the terms hereof as a lender for all purposes of this Note. This Note may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register. Any assignment or sale of all or part of the Note may be effected only by registration of such assignment or sale on the Register.

 

(b)     For the avoidance of doubt, payments made by the Maker pursuant to this Note shall be subject to Section 2.5 of the Purchase Agreement.

 

15.     Miscellaneous.

 

(a)     This Note shall be binding upon Maker and its successors and assigns and shall inure to the benefit of Holder and Holder’s successors and assigns.

 

(b)     Any notice or other communication required or permitted to be given hereunder shall be in writing and given as provided in the Purchase Agreement.

 

 

 

 

(c)     Maker shall not be obligated to pay and Holder shall not collect interest at a rate in excess of the maximum permitted by law or the maximum that will not subject Holder to any civil or criminal penalties. If, because of the acceleration of maturity, the payment of interest in advance or any other reason, Maker is required, under the provision of this Note or any other document evidencing or securing the indebtedness evidenced by this Note, or otherwise, to pay interest at a rate in excess of such maximum rate, the rate of interest under such provisions shall immediately and automatically be reduced to such maximum rate, and any payment made in excess of such maximum rate, together with interest earned at the rate provided herein from the date of such payment, shall immediately and automatically be applied (in inverse order of maturity) to reduce the unpaid principal balance of this Note as of the date on which such excess payment was made. If the amount to be so applied to reduce the unpaid principal balance exceeds the unpaid principal balance, the amount of such excess shall be refunded by Holder to Maker.

 

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IN WITNESS WHEREOF, the undersigned have caused this Note to be duly executed and delivered by an authorized officer, as of the date first above written.

 

	 	
			CBC HOLDINGS LLC

			
	 	 
	 	
			By: 600 Partners LLC, its Sole Member

			
	 	 
	 	
			By:

				
			/s/ Steven W. Pasko

			
	 	
			Name:

				
			Steven W. Pasko

			
	 	
			Title:

				
			Manager of the Sole Member

			
	 	 	 
	 	 	 
	 	
			ASTA FUNDING, INC.

			
	 	 
	 	 	 
	 	
			By:

				
			/s/ Gary Stern

			
	 	
			Name:

				
			Gary Stern

			
	 	
			Title:

				
			Chief Executive Officerex_102277.htm

Exhibit 10.3

 

EXECUTION VERSION

 

GUARANTEE

 

This Guarantee, dated as of December 13, 2017 (this “Guarantee”), is made among 777 Partners LLC, a Delaware limited liability company, and SuttonPark Capital LLC, a Delaware limited liability company (collectively, the “Guarantors”), on a joint and several basis, for and on behalf of Asta Funding, Inc., a Delaware corporation (the “Payee”), in respect of the Obligations (as defined below) of CBC Holdings LLC, a Delaware limited liability company (the “Guaranteed Party”).

 

RECITALS

 

WHEREAS, reference is hereby made to the Securities Purchase Agreement dated as of December 13, 2017 (the “Purchase Agreement”) by and among CBC Holdings LLC, Asta Funding, Inc. and CBC Settlement Funding, LLC and the Promissory Note, dated as of December 13, 2017 (the “Note”), issued by the Guaranteed Party in favor of the Payee;

 

WHEREAS, this Guarantee is being delivered to the Payee on the Closing Date under the Purchase Agreement to support the payment obligations of the Guaranteed Party;

 

WHEREAS, the Guaranteed Party is an affiliate of the Guarantors, and the Guarantors expect to derive substantial indirect benefits from the transactions contemplated by the Purchase Agreement;

 

WHEREAS, capitalized terms used herein but not defined herein have the meaning set forth in the Purchase Agreement;

 

WHEREAS, any reference to a Guarantor, the Guaranteed Party, or the Payee in this Guarantee also refers to their respective successors in title, permitted assigns and permitted transferees.

 

NOW THEREFORE, in consideration of the foregoing and intending to be legally bound hereby, the parties hereto agree as follows:

 

1.     Guarantee. To induce the Payee to enter into the Note, for the duration of this Guarantee as set forth in Section 3 below, the Guarantors, on a joint and several basis, absolutely, irrevocably and unconditionally guarantee to the Payee and to any of its successors, heirs and permitted assigns (each, a “Beneficiary” and collectively the “Beneficiaries”), the prompt payment, when due and payable, subject to any applicable grace period, of any and all outstanding payment obligations of the Guaranteed Party arising under the Note (collectively, the “Obligations”).

 

2.     Nature of Guarantee. This Guarantee constitutes a guarantee of payment when due and payable, and not of collection, and shall not be conditioned upon the pursuit of any remedies against the Guaranteed Party.

 

3.     Duration of the Guarantee. This Guarantee is continuing and shall remain in full force and effect until the payment in full of all the Obligations, shall be binding upon the Guarantors, and shall inure to the benefit of and be enforceable by the Beneficiaries. The parties hereto acknowledge and agree that all Obligations have been created in reliance hereon.

 

 

 

 

4.     Preservation of Rights. The obligations of each Guarantor under this Guarantee shall, to the fullest extent permitted under applicable law, be absolute, irrevocable and unconditional irrespective of:

 

(a)     any failure, omission or delay on the part of the Guaranteed Party to conform or comply with any term of the Note, or any acceleration, extension, renewal, settlement, compromise, waiver or release in any respect of the Obligations, by operation of law or otherwise;

 

(b)     any voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement, assignment for the benefit of creditors, composition, receivership, liquidation or similar proceedings with respect to the Guarantor, Guaranteed Party or any other person or any of their respective properties or creditors, or any action taken by any trustee or receiver or by any court in any such proceeding; 

 

(c)     any merger or consolidation of the Guaranteed Party into or with any other person, or sale, lease or transfer of any of the assets of the Guaranteed Party to any other Person; or

 

(d)     any change in ownership of the Guaranteed Party or any change in relationship between the Guarantor and the Guaranteed Party, or any termination of any such relationship.

 

5.     Extensions, Waivers and Renewals. The Guarantors agree that the Beneficiaries may, at any time and from time to time, without notice to or consent of the Guarantors, make any agreement with the Guaranteed Party for the extension, renewal, payment, compromise, discharge or release of any Obligation, in whole or in part, or for any modification of the terms of the Note, which may modify the Obligations without in any way impairing the validity of this Guarantee.

 

6.     Attorneys’ Fees and Collection Costs. Guarantors agree to pay all of Payee’s reasonable attorneys’ fees and collection costs and expenses associated with the enforcement of this Guarantee to the fullest extent permitted by applicable law.

 

7.     No Waiver; Cumulative Rights. No amendment or waiver of any provision of this Guarantee will be valid and binding unless it is in writing and signed by the Guarantors and the Beneficiaries. No failure on the part of the Beneficiaries to exercise, or delay in exercising, any right, remedy or power hereunder, whether intentional or not, shall operate as a waiver thereof, nor shall any single or partial exercise by the Beneficiaries of any such right, remedy or power preclude any other or future exercise by the Beneficiaries thereof. Each and every right, remedy and power hereby granted to the Beneficiaries or allowed to them by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by the Beneficiaries.

 

8.     Waiver of Notice; Waiver of Defenses. To the fullest extent permitted by Law, the Guarantors hereby waive notice of the acceptance of this Guarantee, presentment, demand, notice of dishonor, protest and all other notices, including notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Beneficiaries upon this Guarantee or acceptance of this Guarantee, and hereby irrevocably and expressly waive any and all rights, defenses, offsets or counterclaims. Guarantors acknowledge and agree that this Guarantee is an unconditional guaranty of payment and an instrument for the payment of money only within the meaning of CPLR Section 3213.

 

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9.     No Subrogation. Upon performance in full by the Guarantors of all Obligations, the Guarantors shall be subrogated to the rights of the Beneficiaries only upon the complete satisfaction of the underlying obligations of the Guaranteed Party to the Beneficiaries under the Note.

 

10.     Representations and Warranties. Each Guarantor as of the date hereof represents that:

 

(a)     it is duly organized and validly existing under the applicable law of the jurisdiction of its incorporation and has full power and legal right to execute and deliver this Guarantee and to perform the provisions of this Guarantee on its part to be performed;

 

(b)     its execution, delivery and performance of this Guarantee have been duly authorized by all necessary corporate action, and all material consents, approvals, authorizations, permits of, filings with and notifications to, any Governmental Entity necessary for the due execution, delivery and performance of this Guarantee by such Guarantor have been obtained or made and all conditions thereof have been duly complied with, and no other material action by, and no material notice to or material filing with, any Governmental Entity, is required in respect of the execution, delivery or performance of this Guarantee; 

 

(c)     this Guarantee constitutes the valid and binding obligation of such Guarantor enforceable against such Guarantor in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, reorganization, and other laws of general applicability relating to or affecting creditors’ rights and to general equity principles;

 

(d)     the execution, delivery and performance by such Guarantor of this Guarantee does not (i) violate the organizational documents of such Guarantor or (ii) violate any applicable Law; and

 

(e)     the Guarantors are solvent, and not in default in any material payment obligation due to any secured lenders, and the execution of this Guarantee does not and will not render the Guarantors insolvent.

 

11.     Assignment. No Guarantor may (i) assign and transfer its rights and obligations hereunder pursuant to a consolidation or merger or by operation of law or sell all or substantially all of its assets; provided that such Guarantor may, with the consent of the Beneficiaries, which consent shall not be unreasonably withheld, conditioned or delayed, assign and transfer its rights and obligations under this Guarantee pursuant to a consolidation or merger or by operation of law or any reorganization, or sell all or substantially all of its assets, if, upon the effectiveness of such assignment and transfer or sale, the successor entity or acquirer of such assets, as applicable, assumes by operation of law or expressly assumes in writing, in form and substance reasonably acceptable to the Beneficiary (an “Assumption Agreement”) all such obligations hereunder; or (ii) otherwise assign or transfer its rights, interests, or obligations hereunder to any Person with the prior written consent of the Beneficiaries, such consent not to be unreasonably withheld, conditioned or delayed and any attempted assignment or transfer without such consent shall be null and void.

 

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(b)     The Beneficiaries may not assign or transfer their rights, interests or obligations hereunder to any Person without the prior written consent of the Guarantors, and any attempted assignment or transfer without such consent shall be null and void; provided, that any Beneficiary may, with the consent of the Guarantors, which consent shall not be unreasonably withheld, conditioned or delayed, assign and transfer all of its rights and obligations under this Guarantee to any Person to which such Beneficiary makes a permitted assignment and transfer of its rights and obligations under the Note.

 

12.     Notices. All notices or other communications to the Guarantors or the Beneficiaries shall be in writing and shall be given as follows:

 

if to the Guarantors:

 

777 Partners LLC

600 Brickell Avenue, 19th Floor

Miami, Florida 33131

Attn:            Joshua Wander

Facsimile:    [       ]

E-mail:         [       ]

 

SuttonPark Capital LLC

777 Brickell Ave. Suite 1100

Miami, Florida 33131

Attn:             Steven W. Pasko

Facsimile:     [      ]

E-mail:          [      ]

 

with copies to:

 

Schulte Roth & Zabel

919 Third Avenue

New York, New York 10022

Attn:           Peter Halasz

Facsimile:   (212) 593-5955

Email:         peter.halasz@srz.com

 

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if to any Beneficiary:

 

Asta Funding, Inc.

210 Sylvan Avenue

Englewood Cliff, New Jersey 07632

Attn:            Gary Stern

Facsimile:    [      ]

Email:          [      ]

     

with copies to:

 

Edward Stone Law, P.C.

175 West Putnam Avenue, 2nd Floor

Greenwich, Connecticut 06830

Attn:            Eddie Stone

Facsimile:   (203) 348-8477

Email:         eddie@edwardstonelaw.com

 

13.     Disputes. Any suit, action or other proceeding arising out of or relating to this Guarantee or any transaction contemplated hereby shall be brought exclusively in courts of the State of New York located in New York County, or in the event (but only in the event) that such court does not have subject matter jurisdiction over such action, the United States District Court for the Southern District of New York and each of the parties hereto hereby submits to the exclusive jurisdiction of such courts for the purpose of any such suit, action or other proceeding. A final judgment in any such suit, action or other proceeding may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each party irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Guarantee or the transactions contemplated hereby in such courts, and hereby irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. Each party further agrees that service of any process, summons, notice or document by U.S. registered mail to such party’s respective address set forth herein shall be effective service of process for any such action, suit or proceeding. Each party hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Guarantee, the transactions contemplated hereby or the actions of such party in the negotiation, administration, performance and enforcement hereof.

 

14.     Governing Law. All issues and questions concerning the construction, validity, interpretation and enforceability of this Guarantee, and all claims and disputes arising hereunder or thereunder or in connection herewith or therewith, whether purporting to sound in contract or tort, or at law or in equity, shall be governed by, and construed in accordance with, the Laws of the State of New York, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of New York.

 

15.     Interpretation. The headings contained in this Guarantee are for reference purposes only and shall not affect in any way the meaning or interpretation of this Guarantee. Unless the context of this Guarantee otherwise requires (i) words of any gender are deemed to include each other gender, (ii) words using singular or plural number also include the plural or singular, respectively, (iii) the terms “hereof”, “herein”, “hereby”, “hereto”, and derivative or similar words refer to this entire Guarantee, and (iv) the words “include”, “includes” or “including” shall be deemed to be followed by “without limitation.”

 

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16.     Counterparts. This Guarantee may be executed in counterparts, each of which shall be deemed an original and each of which shall constitute one and the same instrument.

 

17.     Entire Agreement. This Guarantee, including the agreements referred to herein, any documents executed by the parties simultaneously herewith or pursuant thereto, and the covenants and other agreements set forth herein and therein, constitute the entire understanding and agreement of the parties hereto with respect to the subject matter hereof and supersedes all other prior agreements and understandings, written or oral, between the parties with respect to such subject matter.

 

18.     Severability. If any provision of this Guarantee, or the application thereof to any Person or circumstance, is invalid or unenforceable in any jurisdiction, (a) a substitute and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable in such jurisdiction, the intent and purpose of the invalid or unenforceable provision; and (b) the remainder of this Guarantee and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability of such provision affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Guarantee to be executed and delivered as of the date first above written.

 

	 	
			GUARANTORS:

			
	 	 
	 	
			777 PARTNERS LLC

			
	 	 
	 	 
	 	
			By:

				
			/s/ Joshua Wander

			
	 	
			Name:

				
			Joshua Wander

			
	 	
			Title:

				
			Managing Partner

			
	 	 
	 	
			SUTTONPARK CAPITAL LLC

			
	 	 
	 	 
	 	
			By:

				
			/s/ Steven W. Pasko

			
	 	
			Name:

				
			Steven W. Pasko

			
	 	
			Title:

				
			Chief Executive Officer

			
	 	 
	 	
			By:

				
			/s/ Paul Kosinski

			
	 	
			Name:

				
			Paul Kosinski

			
	 	
			Title:

				
			Chief Financial Officer and Chief Operating Officer

			
	 	 
	 	
			BENEFICIARY:

			
	 	 
	 	
			ASTA FUNDING, INC.

			
	 	 
	 	
			By:

				
			/s/ Gary Stern

			
	 	
			Name:

				
			Gary Stern

			
	 	
			Title:

				
			Chief Executive Officer

			

 

 

[Signature Page to Guarantee]

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