Document:

Exhibit 10.8

 

SUBSIDIARY GUARANTY

 

This SUBSIDIARY
GUARANTY (as amended, restated, supplemented, or otherwise modified and in effect from time to time, this “Guaranty”)
is made as of this 13 day of January, 2017, jointly and severally, by usell.com, Inc., a Delaware corporation (“usell”),
BST Distribution, Inc., a New York corporation (“BST”), WE SELL CELLULAR LLC, a Delaware limited liability company
(“We Sell” and together with usell and BST, each a “Company” and collectively the “Companies”),
HD Capital Holdings LLC, a Delaware limited liability company (“HD Capital”), Upstream Phone Company USA, Inc.,
a Delaware corporation (“Upstream”), and Upstream Phone Holdings, Inc., a Delaware corporation (“Upstream
Holdings” and together with HD Capital, Upstream, and with each other person or entity who becomes a party to this Guaranty
by execution of a joinder in the form of Exhibit A attached hereto, each referred to individually as a “Guarantor”
and collectively as the “Guarantors”); in favor of XXXXXXXXXXX, a Delaware limited liability company, in its
capacity as agent (together with its successors and assigns in such capacity, the “Agent”) for the benefit of
the Purchasers (as defined below).

 

WITNESSETH:

 

WHEREAS, XXXX
(“Purchaser”, and together with its successors and assigns and each other purchaser of a Note (as defined below)
and their respective successors and assigns, individually and collectively, the “Purchasers”) have made, and
may make, loans and certain other financial accommodations (collectively, the “Loans”) the Companies, as evidenced
by those certain senior secured notes dated as of the Closing Date in an original aggregate principal amount of $8,660,000 (such
notes, together with any promissory notes or other securities issued in exchange or substitution therefor or replacement thereof,
and as any of the same may be amended, supplemented, restated or modified and in effect from time to time, the “Notes”);

 

WHEREAS, the
Notes are being acquired by each Purchaser, together with their successors and assigns and each other purchaser of a Note and their
respective successors and assigns, individually and collectively, the “Purchasers”, pursuant to a Note Purchase
Agreement dated as of the date hereof among the Purchasers, the Companies and the Agent (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the “Note Purchase Agreement”);

 

WHEREAS, pursuant
to a Pledge Agreement dated as of the Closing Date by the usell, BST and Upstream Holdings in favor of the Agent, usell, BST and
Upstream Holdings have pledged a lien on and security interest in all of the issued and outstanding equity interests owned by usell,
BST and Upstream Holdings;

 

WHEREAS, pursuant
to a Security Agreement dated as of the Closing Date (as the same may be amended, restated, supplemented or otherwise modified
and in effect from time to time, the “Security Agreement”) by the “Debtors” (as defined therein)
in favor of the Agent, such Debtors have granted the Agent, for its benefit and the benefit of the Purchasers, a first priority
security interest in, lien upon and pledge of each of their rights in the Collateral (as defined in the Security Agreement); and

 

     

     

    

  

WHEREAS, the
Guarantors are direct or indirect subsidiaries of the Companies and, as such, will derive substantial benefit and advantage from
the Loans and other financial accommodations available to the Companies set forth in the Note Purchase Agreement, the Notes and
the other Related Agreements (together, the “Transaction Documents”), and it will be to each Guarantor’s
direct interest and economic benefit to assist the Companies in procuring said Loans and other financial accommodations from Purchasers.

 

NOW, THEREFORE,
for and in consideration of the premises and in order to induce Purchasers to make the Loans, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Guarantor hereby jointly and severally agrees
as follows:

 

1.            Definitions:
Capitalized terms used herein without definition and defined in the Note Purchase Agreement are used herein as defined therein.
In addition, as used herein:

 

“Bankruptcy
Code” shall mean the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended and
in effect from time to time thereunder.

 

“Obligations”
shall mean (i) all obligations, liabilities and indebtedness of every nature of each Company from time to time owed or owing to
the Purchasers and Agent arising under, out of or in connection with the Note Purchase Agreement, the Notes, the Loans and the
other Transaction Documents, including, without limitation, the principal amount of all debts, claims and indebtedness, accrued
and unpaid interest and all fees, taxes, indemnities, costs and expenses, whether primary, secondary, direct, contingent, fixed
or otherwise, heretofore, now and/or from time to time hereafter owing, due or payable, whether before or after the filing of a
bankruptcy, insolvency or similar proceeding under applicable federal, state, foreign or other law and whether or not an allowed
claim in any such proceeding, and (ii) all obligations, liabilities and indebtedness of every nature of any subsequent Guarantor
from time to time owed or owing to the Purchasers and/or Agent, under or in respect of this Guaranty, the Pledge Agreement, the
Security Agreement, the Note Purchase Agreement, the Notes, the Loans and the other Transaction Documents, as the case may be,
including, without limitation, the principal amount of all debts, claims and indebtedness, accrued and unpaid interest and all
fees, taxes, indemnities, costs and expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now
and/or from time to time hereafter owing, due or payable, whether before or after the filing of a bankruptcy, insolvency or similar
proceeding under applicable federal, state, foreign or other law and whether or not an allowed claim in any such proceeding.

 

2.            Guaranty
of Payment.

 

(a)          Each
Guarantor, jointly and severally, hereby unconditionally and irrevocably guarantees the full and prompt payment and performance
to Purchasers and Agent, on behalf of itself and in its capacity as agent for the benefit of Purchasers, when due, upon demand,
at maturity or by reason of acceleration or otherwise and at all times thereafter, of any and all of the Obligations.

 

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(b)          Each
Guarantor acknowledges that valuable consideration supports this Guaranty, including, without limitation, the consideration set
forth in the recitals above, as well as any commitment to lend, extension of credit or other financial accommodation, whether heretofore
or hereafter made by Purchasers to any Company; any extension, renewal or replacement of any of the Obligations; any forbearance
with respect to any of the Obligations or otherwise; any cancellation of an existing guaranty; any purchase of any Company’s
assets by any Purchaser or Agent; or any other valuable consideration.

 

(c)          Each
Guarantor agrees that all payments under this Guaranty shall be made in United States currency and in the same manner as provided
for the Obligations.

 

(d)          Notwithstanding
any provision of this Guaranty to the contrary, it is intended that this Guaranty, and any interests, liens and security interests
granted by Guarantors as security for this Guaranty, not constitute a “Fraudulent Conveyance” (as defined below) in
the event that this Guaranty or such interest is subject to the Bankruptcy Code or any applicable fraudulent conveyance or fraudulent
transfer law or similar law of any state. Consequently, Guarantors, Agent and Purchasers agree that if this Guaranty, or any such
interests, liens or security interests securing this Guaranty, would, but for the application of this sentence, constitute a Fraudulent
Conveyance, this Guaranty and each such lien and security interest shall be valid and enforceable only to the maximum extent that
would not cause this Guaranty or such interest, lien or security interest to constitute a Fraudulent Conveyance, and this Guaranty
shall automatically be deemed to have been amended accordingly at all relevant times. For purposes hereof, “Fraudulent
Conveyance” means a fraudulent conveyance under Section 548 of the Bankruptcy Code or a fraudulent conveyance or fraudulent
transfer under the provisions of any applicable fraudulent conveyance or fraudulent transfer law or similar law of any state, as
in effect from time to time.

 

3.          Costs
and Expenses. Each Guarantor, jointly and severally, agrees to pay on demand, all reasonable costs and expenses of every kind
incurred by any Purchaser or Agent: (a) in enforcing this Guaranty, (b) in collecting any of the Obligations from any Company or
any Guarantor, (c) in realizing upon or protecting or preserving any collateral for this Guaranty or for payment of any of the
Obligations, and (d) in connection with any amendment of, modification to, waiver or forbearance granted under, or enforcement
or administration of any Transaction Document or for any other purpose in connection with any Transaction Document, in each case,
to the extent Purchaser or Agent may take such action pursuant to the terms and conditions of this Agreement. “Costs and
expenses” as used in the preceding sentence shall include, without limitation, reasonable attorneys’ fees incurred
by any Purchaser or Agent in retaining legal counsel for advice, suit, appeal, any insolvency or other proceedings under the Bankruptcy
Code or otherwise, or for any purpose specified in the preceding sentence.

 

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		4.	Nature of Guaranty: Continuing, Absolute and Unconditional.

 

(a)          This
Guaranty is and is intended to be a continuing guaranty of payment of the Obligations, and not of collectibility, and is intended
to be independent of and in addition to any other guaranty, endorsement, collateral or other agreement held by Purchasers or Agent
therefor or with respect thereto, whether or not furnished by a Guarantor. None of Purchasers and Agent shall be required to prosecute
collection, enforcement or other remedies against any Company, any other Guarantor or guarantor of the Obligations or any other
person or entity, or to enforce or resort to any of the Collateral or other rights or remedies pertaining thereto, before calling
on a Guarantor for payment. The obligations of each Guarantor to repay the Obligations hereunder shall be unconditional. Guarantor
shall have no right to exercise any right of subrogation, reimbursement, indemnity, exoneration, contribution or any other claim
which it may now or hereafter have against any Company in connection with this Guaranty until the termination of this Guaranty
in accordance with Section 8 below, and hereby waives any benefit of, and any right to participate in, any security or collateral
given to Purchasers to secure payment of the Obligations, and each Guarantor agrees that it will not take any action to enforce
any obligations of any Company to such Guarantor prior to the Obligations being finally and irrevocably paid in full in cash, provided
that, in the event of the bankruptcy or insolvency of any Company, to the extent the Obligations have not been finally and irrevocably
paid in full in cash, Agent, for the benefit of itself and Purchasers, and Purchasers shall be entitled notwithstanding the foregoing,
to file in the name of any Guarantor or in its own name a claim for any and all indebtedness owing to a Guarantor by such Company
(exclusive of this Guaranty), vote such claim and to apply the proceeds of any such claim to the Obligations.

 

(b)          For
the further security of Purchasers and without in any way diminishing the liability of the Guarantors, following the occurrence
and during the continuance of an Event of Default, all debts and liabilities, present or future of the Companies to the Guarantors
and all monies received from any Company or for its account by the Guarantors in respect thereof shall be received in trust for
Purchasers and Agent and promptly following receipt shall be paid over to Agent, for its benefit and in its capacity as Agent for
the benefit of Purchasers, until all of the Obligations have been paid in full in cash. This assignment and postponement is independent
of and severable from this Guaranty and shall remain in full effect whether or not any Guarantor is liable for any amount under
this Guaranty.

 

(c)          This
Guaranty is absolute and unconditional and shall not be changed or affected by any representation, oral agreement, act or thing
whatsoever, except as herein provided. This Guaranty is intended by the Guarantors to be the final, complete and exclusive expression
of the guaranty agreement among the Companies (as limited by the express terms of this Guaranty), the Guarantors, the Agent and
Purchasers. No modification or amendment of any provision of this Guaranty shall be effective against any party hereto unless in
writing and signed by a duly authorized officer of such party. This Guaranty, together with the other Transaction Documents, supersedes
all other prior oral or written agreements between each Purchaser, the Guarantors, the Agent, their Affiliates and Persons acting
on their behalf with respect to the matters discussed herein, and this Guaranty, together with the other Transaction Documents
and the other instruments referenced herein and therein, contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or therein, neither any Guarantor, the Agent nor any Purchaser
makes any representation, warranty, covenant or undertaking with respect to such matters. As of the date of this Guaranty, there
are no unwritten agreement between the parties with respect to the matters discussed herein. No provision of this Guaranty may
be amended, modified or supplemented other than by an instrument in writing signed by the parties hereto.

 

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(d)          Each
Guarantor hereby releases each Company from all, and agrees not to assert or enforce (whether by or in a legal or equitable proceeding
or otherwise) any “claims” (as defined in Section 101(5) of the Bankruptcy Code), whether arising under any law, ordinance,
rule, regulation, order, policy or other requirement of any domestic or foreign Governmental Authority or any instrumentality or
agency thereof, having jurisdiction over the conduct of its business or assets or otherwise, to which the Guarantors are or would
at any time be entitled by virtue of its obligations hereunder, any payment made pursuant hereto or the exercise by any Purchaser
or Agent of its rights with respect to the Collateral, including any such claims to which such Guarantors may be entitled as a
result of any right of subrogation, exoneration or reimbursement.

 

		5.	Certain Rights and Obligations.

 

(a)          Each
Guarantor acknowledges and agrees that Purchasers and Agent, for its benefit and as agent for the benefit of Purchasers, may, without
notice, demand or any reservation of rights against such Guarantor and without affecting such Guarantor’s obligations hereunder,
from time to time:

 

(i)          renew,
extend, increase, accelerate or otherwise change the time for payment of, the terms of or the interest on the Obligations or any
part thereof or grant other indulgences to any Company or others;

 

(ii)         accept
from any person or entity and hold collateral for the payment of the Obligations or any part thereof, and modify, exchange, enforce
or refrain from enforcing, or release, compromise, settle, waive, subordinate or surrender, with or without consideration, such
collateral or any part thereof;

 

(iii)        accept
and hold any endorsement or guaranty of payment of the Obligations or any part thereof, and discharge, release or substitute any
such obligation of any such endorser or guarantor, or discharge, release or compromise any Guarantor, or any other person or entity
who has given any security interest in any collateral as security for the payment of the Obligations or any part thereof, or any
other person or entity in any way obligated to pay the Obligations or any part thereof, and enforce or refrain from enforcing,
or compromise or modify, the terms of any obligation of any such endorser, guarantor, or person or entity;

 

(iv)        dispose
of any and all collateral securing the Obligations in its reasonable discretion, as it may deem appropriate, and direct the order
or manner of such disposition and the enforcement of any and all endorsements and guaranties relating to the Obligations or any
part thereof as Agent in its reasonable discretion may determine;

 

(v)         subject
to the terms of the Notes, determine the manner, amount and time of application of payments and credits, if any, to be made on
all or any part of any component or components of the Obligations (whether principal, interest, fees, costs, and expenses, or otherwise),
including, without limitation, the application of payments received from any source to the payment of indebtedness other than the
Obligations even though Purchasers might lawfully have elected to apply such payments to the Obligations or to amounts which are
not covered by this Guaranty; and

 

(vi)        take
advantage or refrain from taking advantage of any security or accept or make or refrain from accepting or making any compositions
or arrangements when and in such manner as Agent, in its sole discretion, may deem appropriate;

 

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and generally do or refrain from doing
any act or thing which might otherwise, at law or in equity, release the liability of such Guarantor as a guarantor or surety in
whole or in part, and in no case shall Purchasers or Agent be responsible or shall any Guarantor be released either in whole or
in part for any act or omission in connection with Purchasers or Agent having sold any security at less than its value.

 

(b)          Following
the occurrence and during the continuance of an Event of Default, and upon demand by Agent, each Guarantor, jointly and severally,
hereby agrees to pay the Obligations to the extent hereinafter provided and to the extent unpaid:

 

(i)          without
deduction by reason of any setoff, defense (other than payment) or counterclaim of any Company or any other Guarantor;

 

(ii)         without
requiring presentment, protest or notice of nonpayment or notice of default to any Guarantor, to any Company or to any other person
or entity;

 

(iii)        without
demand for payment or proof of such demand or filing of claims with a court in the event of receivership, bankruptcy or reorganization
of any Company or any other Guarantor;

 

(iv)        without
requiring Purchasers or Agent to resort first to any Company (this being a guaranty of payment and not of collection), to any other
Guarantor, or to any other guaranty or any collateral which Purchasers or Agent may hold;

 

(v)         without
requiring notice of acceptance hereof or assent hereto by any Purchaser or Agent; and

 

(vi)        without
requiring notice that any of the Obligations has been incurred, extended or continued or of the reliance by any Purchaser or Agent
upon this Guaranty;

 

all of which each Guarantor hereby waives.

 

(c)          Each
Guarantor’s obligation hereunder shall not be affected by any of the following, all of which such Guarantor hereby waives:

 

(i)          any
failure to perfect or continue the perfection of any security interest in or other lien on any collateral securing payment of any
of the Obligations or any Guarantor’s obligation hereunder;

 

(ii)         the
invalidity, unenforceability, propriety of manner of enforcement of, or loss or change in priority of any document or any such
security interest or other lien or guaranty of the Obligations;

 

(iii)        any
failure to protect, preserve or insure any such collateral;

 

(iv)        failure
of a Guarantor to receive notice of any intended disposition of such collateral;

 

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(v)         any
defense arising by reason of the cessation from any cause whatsoever of liability of any Company including, without limitation,
any failure, negligence or omission by any Purchaser or Agent in enforcing its claims against any Company;

 

(vi)        any
release, settlement or compromise of any obligation of any Company, any other Guarantor or any other guarantor of the Obligations;

 

(vii)       the
invalidity or unenforceability of any of the Obligations;

 

(viii)      any
change of ownership of any Company, any other Guarantor or any other guarantor of the Obligations or the insolvency, bankruptcy
or any other change in the legal status of any Company, any other Guarantor or any other guarantor of the Obligations;

 

(ix)         any
change in, or the imposition of, any law, decree, regulation or other governmental act which does or might impair, delay or in
any way affect the validity, enforceability or the payment when due of the Obligations;

 

(x)          the
existence of any claim, setoff or other rights which the Guarantor, any Company, any other Guarantor or guarantor of the Obligations
or any other person or entity may have at any time against any Purchaser, Agent or any Company in connection herewith or any unrelated
transaction;

 

(xi)         any
Purchaser’s or Agent’s election in any case instituted under chapter 11 of the Bankruptcy Code, of the application
of section 1111(b)(2) of the Bankruptcy Code;

 

(xii)        any
use of cash collateral, or grant of a security interest by any Company, as debtor in possession, under sections 363 or 364 of the
Bankruptcy Code;

 

(xiii)       the
disallowance of all or any portion of any of any Purchaser’s or Agent’s claims for repayment of the Obligations under
sections 502 or 506 of the Bankruptcy Code;

 

(xiv)      any
stay or extension of time for payment by any Company or any other Guarantor resulting from any proceeding under the Bankruptcy
Code or any similar law; or

 

(xv)       any
other fact or circumstance which might otherwise constitute grounds at law or equity for the discharge or release of a Guarantor
from its obligations hereunder, all whether or not such Guarantor shall have had notice or knowledge of any act or omission referred
to in the foregoing clauses (i) through (xiv) of this Section 5(c).

 

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6.          Representations
and Warranties. Each Guarantor further represents and warrants to Purchasers and Agent
that: (a) such Guarantor is a corporation or other entity duly incorporated or organized, as applicable, validly existing and
in good standing under the laws of the jurisdiction of its incorporation or formation, as applicable, and has full power, authority
and legal right to own its property and assets and to transact the business in which it is presently engaged; (b) such Guarantor
has full power, authority and legal right to execute and deliver, and to perform its obligations under, this Guaranty, and has
taken all necessary action to authorize the guarantee hereunder on the terms and conditions of this Guaranty and to authorize
the execution, delivery and performance of this Guaranty; (c) this Guaranty has been duly executed and delivered by such Guarantor
and constitutes a legal, valid and binding obligation of such Guarantor enforceable against such Guarantor in accordance with
its terms, except to the extent that such enforceability is subject to applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance and moratorium laws and other laws of general application affecting enforcement of creditors’ rights generally,
or the availability of equitable remedies, which are subject to the discretion of the court before which an action may be brought;
and (d) the execution, delivery and performance by each Guarantor of this Guaranty do not require any action by or in respect
of, or filing with, any governmental body, agency or official and do not violate, conflict with or cause a breach or a default
under any provision of (i) applicable law or regulation, (ii) the organizational documents of any Guarantor, (iii) any judgment,
injunction, order, decree or other instrument binding upon it, or (iv) any agreement binding upon it.

 

7.          Negative
Covenants. Each Guarantor covenants with Purchasers and Agent that such Guarantor shall
not grant any security interest in or permit any lien, claim or encumbrance upon any of its assets in favor of any person or entity
other than liens and security interests in favor of Purchasers and Agent and Permitted Encumbrances. Each Guarantor agrees that
it shall not take any action or engage in any transaction that such Guarantor is prohibited from taking or engaging in pursuant
to the terms of the Note Purchase Agreement. In addition, each Guarantor agrees to comply with the terms of Section 8 of the Note
Purchase Agreement to the same extent that any Company is required to cause the Guarantors to comply with such Section of the
Note Purchase Agreement. Each Company, by its signature hereto, hereby acknowledges and agrees that any breach by a Guarantor
of any term or provision of this Guaranty or the Security Agreement, which is not cured to the Agent’s reasonable satisfaction
within any applicable cure or grace period, shall constitute an “Event of Default” under the Note.

 

8.          Termination.
This Guaranty shall not terminate until such time, if any, as (i) all Obligations shall be finally and irrevocably paid in full
in cash, (ii) no Notes shall remain outstanding, (iii) all commitments to lend under the Note Purchase Agreement shall have terminated
and (iv) there shall exist no other outstanding payment or reimbursement obligations (other than contingent indemnification obligations
for which no claims shall have been asserted) of the Borrower or the Guarantors to the Agent under any of the Transaction Documents.
Thereafter, but subject to the following, Agent, on its behalf and as agent for Purchasers, shall take such action and execute
such documents as the Guarantors may request (and at the Guarantors’ cost and expense) in order to evidence the termination
of this Guaranty. Payment of all of the Obligations owing from time to time shall not operate as a discontinuance of this Guaranty.
Each Guarantor further agrees that, to the extent that any Company makes a payment or payments to Purchasers or Agent on the Obligations,
or Purchasers or Agent receive any proceeds of collateral securing the Obligations or any other payments with respect to the Obligations,
which payment or receipt of proceeds or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required to be returned or repaid to any Company, its estate, trustee, receiver, debtor in possession or any other
person or entity, including, without limitation, the Guarantors, under any insolvency or bankruptcy law, state or federal law,
common law or equitable cause, then to the extent of such payment, return or repayment, the obligation or part thereof which has
been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect as of the date when
such initial payment, reduction or satisfaction occurred, and this Guaranty shall continue in full force notwithstanding any contrary
action which may have been taken by any Purchaser or Agent in reliance upon such payment, and any such contrary action so taken
shall be without prejudice to any Purchaser’s or Agent’s rights under this Guaranty and shall be deemed to have been
conditioned upon such payment having become final and irrevocable.

 

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9.          Guaranty
of Performance. Each Guarantor also guarantees the full, prompt and unconditional performance
of all obligations and agreements of every kind owed or hereafter to be owed by the Companies and the Guarantors to Purchasers
and Agent under the Note Purchase Agreement, the Notes, and the other Transaction Documents. Every provision for the benefit of
Purchasers and Agent contained in this Guaranty shall apply to the guaranty of performance given in this paragraph.

 

10.         Assumption
of Liens and Obligations. To the extent that a Guarantor has received or shall hereafter
receive distributions or transfers from any Company of property or cash that are subject, at the time of such contribution, to
liens and security interests in favor of Purchasers and/or the Agent in accordance with the Notes, the Security Agreement or any
other Transaction Document, such Guarantor hereby expressly agrees that (i) it shall hold such assets subject to such liens and
security interests, and (ii) it shall be liable for the payment of the Obligations secured thereby. Each Guarantor’s obligations
under this Section 10 shall be in addition to its obligations as set forth in other sections of this Guaranty and not in
substitution therefor or in lieu thereof.

 

		11.	Miscellaneous.

 

(a)          The
terms “Company” and “Guarantor” as used in this Guaranty shall include: (i) any successor individual or
individuals, association, partnership, limited liability company or corporation to which all or substantially all of the business
or assets of such Company or such Guarantor shall have been transferred and (ii) any other association, partnership, limited liability
company, corporation or entity into or with which such Company or such Guarantor shall have been merged, consolidated, reorganized,
or absorbed.

 

(b)          Without
limiting any other right of any Purchaser or Agent, whenever any Purchaser or Agent has the right to declare any of the Obligations
to be immediately due and payable (whether or not it has been so declared), Agent, on its behalf and in its capacity as agent for
the benefit of Purchasers, at its sole election without notice to the undersigned may appropriate and set off against the Obligations:

 

(i)          any
and all indebtedness or other moneys due or to become due to any Guarantor by any Purchaser or Agent in any capacity; and

 

(ii)         any
credits or other property belonging to any Guarantor (including all account balances, whether provisional or final and whether
or not collected or available) at any time held by or coming into the possession of any Purchaser or Agent, or any affiliate of
any Purchaser or Agent, whether for deposit or otherwise;

 

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whether or not the Obligations or the obligation
to pay such moneys owed by any Purchaser or Agent is then due, and the applicable Purchaser or Agent shall be deemed to have exercised
such right of set off immediately at the time of such election even though any charge therefor is made or entered on such Purchaser’s
or Agent’s records subsequent thereto. Agent agrees to notify such Guarantor in a reasonably practicable time of any such
set-off; however, failure to so notify such Guarantor shall not affect the validity of any set-off.

 

(c)          Each
Guarantor’s obligation hereunder is to pay the Obligations in full in cash when due according to the Notes, the other Transaction
Documents, this Guaranty and the other agreements, documents and instruments governing the Obligations to the extent provided herein,
and shall not be affected by any stay or extension of time for payment by any Company or any other Guarantor resulting from any
proceeding under the Bankruptcy Code or any similar law.

 

(d)          No
course of dealing between any Company or any Guarantor and Purchasers or Agent and no act, delay or omission by Purchasers or Agent
in exercising any right or remedy hereunder or with respect to any of the Obligations shall operate as a waiver thereof or of any
other right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise
of any other right or remedy. Any Purchaser or Agent may remedy any default by any Company under any agreement with any Company
or with respect to any of the Obligations in any reasonable manner without waiving the default remedied and without waiving any
other prior or subsequent default by any Company. All rights and remedies of Purchasers and Agent hereunder are cumulative.

 

(e)          This
Guaranty shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

(f)          Agent
may assign its rights hereunder without the consent of Guarantors, in which event such assignee shall be deemed to be Agent hereunder
with respect to such assigned rights.

 

(g)          Captions
of the sections of this Guaranty are solely for the convenience of the parties hereto, and are not an aid in the interpretation
of this Guaranty and do not constitute part of the agreement of the parties set forth herein.

 

(h)          If
any provision of this Guaranty is unenforceable in whole or in part for any reason, the remaining provisions shall continue to
be effective.

 

(i)          All
questions concerning the construction, validity, enforcement and interpretation of this Guaranty shall be governed by the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (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. Each Guarantor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in
the City of New York, borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action
or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding
is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each Guarantor hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing by registered
or certified mail a copy thereof to such party at the address for such notices to it under this Guaranty and agrees that such service
shall constitute good and sufficient service of process and notice thereof as of the date that is five (5) business days after
the mailing thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted
by law.

 

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(j)          Notices.
All notices, approvals, requests, demands and other communications hereunder shall be delivered or made in the manner set forth
in, and shall be effective in accordance with the terms of, the Note Purchase Agreement or, in the case of communications to the
Agent, directed to the notice address set forth in the Security Agreement; provided, that any communication shall be effective
as to any Guarantor if made or sent to the Company in accordance with the foregoing.

 

		12.	WAIVERS.

 

(a)          EACH
GUARANTOR WAIVES THE BENEFIT OF ALL VALUATION, APPRAISAL AND EXEMPTION LAWS.

 

(b)          UPON
THE OCCURRENCE OF A DEFAULT OR EVENT OF DEFAULT, EACH GUARANTOR HEREBY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR
TO THE EXERCISE BY ANY PURCHASER OR AGENT, ON ITS BEHALF AND IN ITS CAPACITY AS AGENT FOR THE BENEFIT OF PURCHASERS, OF ITS RIGHTS
TO REPOSSESS THE COLLATERAL WITHOUT JUDICIAL PROCESS OR TO REPLEVY, ATTACH OR LEVY UPON THE COLLATERAL WITHOUT PRIOR NOTICE OR
HEARING. EACH GUARANTOR ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY COUNSEL OF ITS CHOICE WITH RESPECT TO THIS TRANSACTION AND THIS
GUARANTY.

 

(c)          EACH
GUARANTOR WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
GUARANTY, OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY PURCHASER
OR AGENT. EACH GUARANTOR AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
LIMITING THE FOREGOING, EACH GUARANTOR FURTHER AGREES THAT ITS 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 GUARANTY OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
TO THIS GUARANTY.

 

13.         Agent.
The terms and provisions of Section 5.11 of the Security Agreement which set forth the appointment of the Agent are hereby
incorporated by reference herein as if fully set forth therein.

 

    11

     

    

 

		14.	Payments Free of Taxes.

 

		(a)	Definitions. In this Section 14:

 

(i)          “Excluded
Taxes” means, with respect to the Agent or the Purchasers, or any other recipient of any payment to be made by or on
account of any obligations of any Guarantor under this Guaranty, or under any other Security Document, income or franchise taxes
imposed on (or measured by) its net income by the United States of America or such other jurisdiction under the laws of which such
recipient is organized or in which its principal office is located.

 

(ii)         “Governmental
Authority” means the government of the United States of America or any other nation, or any political subdivision thereof,
whether state or local, or any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government over
the Company or any of its Subsidiaries, or any of their respective properties, assets or undertakings.

 

(iii)        “Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

(iv)        “Taxes”
means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

 

(b)          Any
and all payments by or on account of any obligation of any of the Guarantors under this Guaranty or any other Security Document
shall be made without any set-off, counterclaim or deduction and free and clear of and without deduction for any Indemnified Taxes;
provided that if any Guarantor shall be required to deduct any Indemnified Taxes from such payments, then (i) the sum payable shall
be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable
under this Section 14(b)), the Agent or Purchasers, as applicable, receives an amount equal to the sum it would have received
had no such deductions been made, (ii) such Guarantor shall make such deductions and (iii) such Guarantor shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law.

 

(c)          Indemnification
by the Guarantors. Each Guarantor shall indemnify the Agent and the Purchasers, within ten (10) days after written demand therefor,
for the full amount of any Indemnified Taxes paid by the Agent or Purchasers, as applicable, on or with respect to any payment
by or on account of any obligation of such Guarantor under this Guaranty and the other Transaction Documents (including Indemnified
Taxes or imposed or asserted on or attributable to amounts payable under this Section 14) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate of the Agent or any Purchaser as to the amount of such
payment or liability under this Section 14 shall be delivered to such Guarantor and shall be conclusive absent manifest
error.

 

    12

     

    

 

15.         Counterparts;
Headings. This Guaranty may be executed in two or more identical counterparts, all
of which together shall be considered one and the same agreement and shall become effective when counterparts have been signed
by each party and delivered to each other party; provided that a facsimile, .pdf or similar electronically transmitted signature
shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature
were an original signature. The headings in this Guaranty are for convenience of reference only and shall not alter or otherwise
affect the meaning hereof.

 

16.         Rights
of Contribution. The Guarantors hereby agree as among themselves that, if any Guarantor
shall make an Excess Payment (as defined below), such Guarantor shall have a right of contribution from each other Guarantor in
an amount equal to such other Guarantor’s Contribution Share (as defined below) of such Excess Payment. The payment obligations
of any Guarantor under this Section 16 shall be subordinate and subject in right of payment to the Obligations until such
time as the Obligations have been paid in full in cash and all commitments to lend under the Note Purchase Agreement have expired
or terminated, and none of the Guarantors shall exercise any right or remedy under this Section 16 against any other Guarantor
until such Obligations have been paid in full in cash and all commitments to lend under the Note Purchase Agreement have expired
or terminated. For purposes of this Section 16, (a) “Excess Payment” shall mean the amount paid by any
Guarantor in excess of its Ratable Share of any Obligations; (b) “Ratable Share” shall mean, for any Guarantor
in respect of any payment of Obligations, the ratio (expressed as a percentage) as of the date of such payment of Obligations
of (i) the amount by which the aggregate present fair salable value of all of its assets and properties exceeds the amount of
all debts and liabilities of such Guarantor (including contingent, subordinated, unmatured, and unliquidated liabilities, but
excluding the obligations of such Guarantor hereunder) to (ii) the amount by which the aggregate present fair salable value of
all assets and other properties of Companies and Guarantors exceeds the amount of all of the debts and liabilities (including
contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Guarantors hereunder)
of the Companies and Guarantors, provided, however, that, for purposes of calculating the Ratable Shares of the Guarantors in
respect of any payment of Obligations, any Guarantor that became a Guarantor subsequent to the date of any such payment shall
be deemed to have been a Guarantor on the date of such payment and the financial information for such Guarantor as of the date
such Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such payment; and (c) “Contribution
Share” shall mean, for any Guarantor in respect of any Excess Payment made by any other Guarantor, the ratio (expressed
as a percentage) as of the date of such Excess Payment of (i) the amount by which the aggregate present fair salable value of
all of its assets and properties exceeds the amount of all debts and liabilities of such Guarantor (including contingent, subordinated,
unmatured, and unliquidated liabilities, but excluding the Obligations) of Companies and Guarantors other than the maker of such
Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the Guarantors in respect of any
Excess Payment, any Guarantor that became a Guarantor subsequent to the date of any such Excess Payment shall be deemed to have
been a Guarantor on the date of such Excess Payment and the financial information for such Guarantor as of the date such Guarantor
became a Guarantor shall be utilized for such Guarantor in connection with such Excess Payment. This Section 16 shall not
be deemed to affect any right of subrogation, indemnity, reimbursement or contribution that any Guarantor may have under law against
any Company in respect of any payment of Obligations.

 

[rest of page intentionally left blank;
signature page follows]

 

    13

     

    

 

IN WITNESS WHEREOF,
each Company and the Guarantors have executed this Guaranty as of the date first written above.

 

	USELL.COM, INC., 

a Delaware corporation	 	BST DISTRIBUTION, INC., a New York corporation
	 	 	 	 	 
	By:	 	 	By:	 
	 	Name:  Nikhil Raman	 	 	Name:  Brian Tepfer
	 	Title:  Chief Executive Officer	 	 	Title:  Chief Executive Officer
	 	 	 	 
	WE SELL CELLULAR LLC, 

a Delaware limited liability company	 	Upstream Phone Company USA, Inc., a Delaware corporation
	 	 	 	 	 
	By:	 	 	By:	 
	 	Name:  Nikhil Raman	 	 	Name: Nikhil Raman
	 	Title:  Manager	 	 	Title:  Chief Executive Officer
	 	 	 
	UPSTREAM PHONE HOLDINGS, INC., a Delaware corporation	 	HD CAPITAL HOLDINGS LLC, 

a Delaware limited liability company
	 	 	 	 	 
	By:	 	 	By:	 
	 	Name: Nikhil Raman	 	 	Name:  Daniel Brauser
	 	Title:  Chief Executive Officer	 	 	Title:  Manager

 

SIGNATURE PAGE TO

SUBSIDIARY GUARANTYExhibit 10.9

TRADEMARK SECURITY AGREEMENT

 

THIS TRADEMARK SECURITY
AGREEMENT (the “Agreement”) made as of this 13 day of January, 2017 by USELL.COM, INC., a Delaware corporation
(“Grantor”), in favor of XXXX, a Delaware limited liability company, in its capacity as agent (together with
its successors and assigns in such capacity, the “Agent”) for the benefit of itself and Purchasers (as defined
in the Purchase Agreement described below) (together with its successors and assigns in such capacity, “Grantee”):

 

WITNESSTH

 

WHEREAS, XXXX (“Purchaser”,
and together with its successors and assigns and each other purchaser of a Note (as defined below) and their respective successors
and assigns, individually and collectively, the “Purchasers”) have made, and may make, loans and certain other
financial accommodations to Grantor and the other Companies (as defined in the Note Purchase Agreement described below), as evidenced
by those certain senior secured notes dated as of the date hereof in an original aggregate principal amount of $8,660,000 (such
notes, together with any promissory notes or other securities issued in exchange or substitution therefor or replacement thereof,
and as any of the same may be amended, supplemented, restated or modified and in effect from time to time, each a “Note”,
and collectively, the “Notes”);

 

WHEREAS, the Notes
are being acquired by each Purchaser, pursuant to a Note Purchase Agreement dated as of the date hereof among the Purchasers, the
Grantor, the other Companies (as defined therein) and the Agent (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the “ Purchase Agreement”);

 

WHEREAS, pursuant
to a Security Agreement dated as of the date hereof (as the same may be amended, restated, supplemented or otherwise modified and
in effect from time to time, the “Security Agreement”) by the “Debtors” (as defined therein)
in favor of the Agent, such Debtors have granted the Agent, for its benefit and the benefit of the Purchasers, a security interest
in substantially all of the assets of the Debtors including all right, title and interest of Grantor in, to and under all now owned
and hereafter acquired Trademarks (as defined in the Security Agreement), Trademark registrations, Trademark applications and Trademark
licenses, together with the goodwill of the business symbolized by Grantor’s Trademarks, and all products and proceeds thereof;
and

 

WHEREAS, to
induce Purchasers to make financial accommodations to the Companies under and as defined in the Purchase Agreement and the Note,
Grantor has agreed to pledge and grant a security interest in all of its right, title and interest in and to the Trademark Collateral
(as hereinafter defined) as security for its Liabilities (as defined in the Security Agreement) for the benefit of the Grantee,
Purchasers and their respective successors and assigns.

 

NOW, THEREFORE, in
consideration of the premises set forth herein and for other good and valuable consideration, receipt and sufficiency of which
are hereby acknowledged, Grantor agrees as follows:

  

1.             Incorporation
of Security Agreement. The Security Agreement and the terms and provisions thereof are hereby incorporated herein in their
entirety by this reference thereto. All terms capitalized but not otherwise defined herein shall have the same meanings herein
as in the Security Agreement.

 

     

     

    

 

2.             Grant
and Reaffirmation of Grant of Security Interests. To secure the payment and performance of the Liabilities, Grantor hereby
grants to Grantee, for its benefit and the benefit of Purchasers, and hereby reaffirms its prior grant pursuant to the Security
Agreement of, a continuing security interest in Grantor’s entire right, title and interest in and to the following (all of
the following items or types of property being herein collectively referred to as the “Trademark Collateral”),
whether now owned or existing or hereafter created, acquired or arising:

 

(a)          each
Trademark, Trademark registration and Trademark application, including, without limitation, the Trademarks, Trademark registrations
(together with any reissues, continuations or extensions thereof) and Trademark applications referred to in Schedule 1 annexed
hereto, and all of the goodwill of the business connected with the use of, and symbolized by, each Trademark, Trademark registration
and Trademark application;

 

(b)          each
Trademark license and all of the goodwill of the business connected with the use of, and symbolized by, each Trademark license;
and

 

(c)          all
products and proceeds of the foregoing, including without limitation, any claim by Grantor against third parties for past, present
or future (a) infringement or dilution of any Trademark or Trademark registration including, without limitation, the Trademarks
and Trademark registrations referred to in Schedule 1 annexed hereto, the Trademark registrations issued with respect to the Trademark
applications referred in Schedule 1 and the Trademarks licensed under any Trademark license, or (b) injury to the goodwill associated
with any Trademark, Trademark registration or Trademark licensed under any Trademark license.

 

This security interest
is granted in conjunction with the security interests granted to Grantee pursuant to the Security Agreement and is not intended
to increase the rights of Grantee or the obligations of Grantor beyond the rights and obligations contained in the Security Agreement.
Grantor hereby acknowledges and affirms that the rights and remedies of Grantee with respect to the security interest in the Trademark
Collateral made and granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated
by reference herein as if fully set forth herein. In the event of any conflict between any provision of this Trademark Security
Agreement and the Security Agreement, the Security Agreement shall govern.

 

[Signature Page Follows]

 

    	 	2	 

     

    

 

IN WITNESS WHEREOF,
Grantor has duly executed this Agreement as of the date first written above.

 

	 	USELL.COM, INC., a Delaware corporation
	 	 
	 	By:	 
	 	 	Name:  Nikhil Raman
	 	 	Title:  Chief Executive Officer

 

	Agreed and Accepted	 
	As of the Date First Written Above	 
	 	 
	XXXX, a Delaware limited	 
	liability company, in its capacity as Agent for Purchasers	 
	 	 
	By:	 	 
	 	Name:  	 
	 	Title:  	 

 

SIGNATURE PAGE TO
 TRADEMARK SECURITY AGREEMENT

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