Document:

EX-10.1

 

Exhibit 10.1

PROMISSORY NOTE

			
	US$23,501,513.71
	 	February 21, 2007

     FOR VALUE RECEIVED, CAPETRONIC DISPLAY LIMITED, a British Virgin Islands corporation, with
offices located at Grande Building, No. 5 Zhongshan Road, Zhongshan, Guandong, P.R.C., China,
NAKAMICHI CORPORATION, a Japanese corporation, with offices located at 23-3 Higashi 2-chome
Shibuya-ku, Tokyo Japan, AKAI ELECTRIC (CHINA) CO. LTD., a Peoples’ Republic of China corporation,
with offices located at Grande Building, No. 5 Zhongshan Road, Zhongshan, Guandong, P.R.C., China,
and SANSUI ELECTRIC (CHINA) CO. LTD., a Peoples’ Republic of China corporation, with offices
located at Grande Building, No. 5 Zhongshan Road, Zhongshan, Guandong, P.R.C., China (each an
“Issuer”, and collectively, the “Issuers”), hereby, jointly and severally, promise to pay to
EMERSON RADIO CORP., a Delaware corporation, or its successors and/or assigns (the “Holder”), the
sum of TWENTY-THREE MILLION FIVE HUNDRED ONE THOUSAND FIVE HUNDRED THIRTEEN and 71/100 Dollars
($23,501,513.71) in lawful money of the United States of America, together with interest thereon at
the rate set forth in Section 2 below and payable in accordance with the provisions of this
Promissory Note.

     1. PAYMENTS. Except as otherwise provided herein, payments of principal and interest
shall be made in installments (each, an “Installment”) in such amounts and on such dates as set
forth on Schedule 1 to this Promissory Note, with all amounts of interest due hereunder
scheduled to be paid in the final Installment. All of the foregoing payments and any other
payments under this Promissory Note shall be made by wire transfer of immediately available funds
pursuant to the following instructions:

	 	 	 	 	 	 	 
	 

	 	To:
	 	Emerson Radio Corp.

	 

	 	 	 	5101 Statesman Dr

	 

	 	 	 	Irving, Texas 75063

	 
	 	 	 	 	 	 
	 

	 	Account #:
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	SWIFT Code:
	 	 

	 
	 	 	 	 	 	 
	 

	 	ABA #:
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Bank:
	 	 

	 

	 	 	 	 

     2. INTEREST. Interest on the unpaid principal balance hereof shall accrue at a rate
equal to EIGHT and 25/100th percent (8.25%) per annum, commencing on February 20, 2007,
until all obligations hereunder shall have been paid and satisfied in full; provided,
however, that upon the occurrence of an Event of Default (as defined below), the interest
rate shall automatically increase by TWO percent (2%) per annum until such time as such Event of
Default shall be cured or waived by the Holder.

 

 

     3. OPTIONAL PREPAYMENT. The Issuers may prepay the principal amount outstanding
hereunder, together with all accrued and unpaid interest, in whole or in part, at any time or from
time to time without premium or penalty. All payments made hereunder, including prepayments, shall
first be applied to accrued and unpaid interest, and the balance, if any, towards reduction of the
principal amount owed hereunder.

     4. EVENTS OF DEFAULT.

          (a) The occurrence of any one or more of the following events shall constitute an event of
default (hereinafter, an “Event of Default”) under this Promissory Note:

          (i) the Issuers’ failure to pay all or any part of the principal or interest
hereunder when due;

          (ii) any Issuer shall deny any of its obligations under this Promissory Note,
or any Issuer or any other person acting on behalf of an Issuer shall challenge the
effectiveness or enforceability of this Promissory Note;

          (iii) The Grande Holdings Limited, a Bermuda corporation (the “Parent
Guarantor”), shall deny any of its obligations under, or challenge the effectiveness
or enforceability of the Guaranty, dated as of February 21, 2007, executed and
delivered by the Parent Guarantor for the benefit of the Holder (the “Guaranty”);

          (iv) the invalidity or unenforceability of the Guaranty; and/or

          (v) any Issuer or the Parent Guarantor shall have applied for or consented to
the appointment of a custodian, receiver, trustee or liquidator, or other
court-appointed fiduciary of all or a substantial part of its properties; or a
custodian, receiver, trustee or liquidator or other court appointed fiduciary shall
have been appointed for any Issuer or the Parent Guarantor with or without the
consent of such person; any Issuer or the Parent Guarantor is generally not paying
its debts as they become due by means of available assets or is insolvent, or has
made a general assignment for the benefit of creditors; any Issuer or the Parent
Guarantor files a voluntary petition in bankruptcy, or a petition or an answer
seeking reorganization or an arrangement with creditors or seeking to take advantage
of any insolvency law (including, without limitation, Title 11 of the United States
Code entitled “Bankruptcy,” as now and hereafter in effect, or any successor
statute, or any other federal, state or foreign bankruptcy, reorganization,
moratorium or insolvency law relating to or affecting the enforcement of creditors’
rights generally (any of the foregoing, an “Insolvency Law”)), or an answer
admitting the material allegations of a petition in any bankruptcy, reorganization
or insolvency proceeding or has taken action for the purpose of effecting any of the
foregoing; or the appointment of any trustee, receiver, custodian, liquidator, or
other court-appointed fiduciary of such Issuer or the Parent Guarantor, as the case
may be, or of all or any substantial part of such person’s properties, after the
commencement of any proceeding against any Issuer

-2-

 

or the Parent Guarantor seeking any reorganization, rehabilitation,
arrangement, composition, readjustment, liquidation, dissolution or similar relief
under any Insolvency Law.

          (b) Upon the occurrence of any Event of Default, the Holder may declare all amounts due
hereunder to be due and payable immediately and, upon any such declaration, the same shall become
and be immediately due and payable. If an Event of Default specified in clause (vi) occurs, then
all amounts due hereunder shall become immediately due and payable without any declaration or other
act on the part of the Holder. Upon the occurrence of any Event of Default, the Holder may, in
addition to declaring all amounts due hereunder to be immediately due and payable, pursue any
available remedy, whether at law or in equity. The Holder shall be deemed to have made such
declaration to the Issuers under this Section 4(b) by (i) providing written notice to any Issuer at
the address set forth in the first paragraph of this Promissory Note by any method reasonably
selected by the Holders, which notice shall be deemed to be received by both Issuers upon receipt
by the Holder of a confirmation of delivery to any Issuer, (ii) upon the Holder or a person acting
on its behalf making a public announcement setting forth the Holder’s intention to accelerate the
obligations under this Promissory Note (including, without limitation, by including such
information in a report filed with the U.S. Securities and Exchange Commission by the Holder), or
(iii) providing notice of such declaration to the Parent Guarantor in accordance with the notice
provisions under the Guaranty.

     5. FEES AND EXPENSES. Upon the occurrence of an Event of Default, the Issuers shall
pay all reasonable costs that the Holder incurs in enforcing this Promissory Note, including,
without limitation, reasonable attorneys fees and expenses.

     6. WAIVER OF PRESENTMENT, DEMAND AND DISHONOR. No delay on the part of the Holder in
exercising any power or right hereunder shall operate as a waiver of any such power or right; nor
shall any single or partial exercise of any power or right preclude any other or further exercise
of such power or right, or the exercise of any other power or right, and no waiver whatsoever shall
be valid unless in writing, signed by the Holder, and then only to the extent expressly set forth
therein. No remedy is exclusive of any other remedy and all remedies shall be cumulative to the
maximum extent permitted by applicable law. Each Issuer hereby waives presentment, demand for
payment, diligence, notice of dishonor and all other notices or demands in connection with the
delivery, acceptance, performance, default or indorsement of this Promissory Note.

     7. AMENDMENTS AND ASSIGNMENT. This Promissory Note can be amended only by an
instrument signed by the Holder and the Issuers. Neither this Promissory Note nor any of the
obligation of the Issuers under this Promissory Note may not be assigned or transferred without the
prior written consent of the Holder. The Holder may sell, assign, transfer, pledge, hypothecate or
otherwise dispose of this Promissory Note or any of its rights hereunder without the consent of the
Issuers.

     8. GOVERNING LAW. This Promissory Note has been delivered in the State of New York
and is to be construed and enforced according to, and governed by, the laws of the State of New
York without regard to the choice of law principles thereof.

-3-

 

     9. CONSENT TO JURISDICTION; CONSENT TO JURISDICTION. Each Issuer hereby irrevocably
submits to the jurisdiction of the courts of the State of New York and to the jurisdiction of the
United States District Court for the Southern District of New York, in each case, located in the
Borough of Manhattan in The City of New York, for the purposes of any suit, action or other
proceeding brought by Holder arising out of or based upon this Promissory Note. EACH ISSUER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES AND AGREES NOT TO ASSERT, BY WAY OF MOTION, AS A
DEFENSE, OR OTHERWISE, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY CLAIM THAT ISSUER IS NOT SUBJECT
PERSONALLY TO THE JURISDICTION OF THE ABOVE-NAMED COURTS, THAT SUCH ISSUER’S PROPERTY IS EXEMPT OR
IMMUNE FROM ATTACHMENT OR EXECUTION, THAT THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN
INCONVENIENT FORUM, THAT VENUE OF THE SUIT, ACTION OR PROCEEDING IS IMPROPER OR THAT THIS
PROMISSORY NOTE MAY NOT BE ENFORCED IN OR BY SUCH COURT.

     10. JURY WAIVER. EACH ISSUER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES
ANY RIGHT TO REQUEST OR TO HAVE A TRIAL BY JURY IN ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF THIS
PROMISSORY NOTE OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN AND REPRESENTS THAT COUNSEL HAS BEEN
CONSULTED SPECIFICALLY AS TO THIS WAIVER.

[Signature Page Follows.]

-4-

 

     IN WITNESS WHEREOF, each Issuer has caused this Promissory Note to be duly executed and
delivered by its duly authorized officer as of the day and year first above written.

	 	 	 	 	 	 	 
	ATTEST	 	 	 	CAPETRONIC DISPLAY LIMITED
	 
	 	 	 	 	 	 
	/s/ Ruby Lee

	 	 	 	By:
	 	/s/ Paul Law Fwok Fai
	 

	 	 	 	 	 	 
	Name: Ruby Lee

	 	 	 	 	 	Name: Paul Law Fwok Fai

Title: Authorised Signatory
	 
	 	 	 	 	 	 
	ATTEST	 	 	 	NAKAMICHI CORPORATION
	 
	 	 	 	 	 	 
	/s/ Ruby Lee

	 	 	 	By:
	 	/s/ Michael Binney
	 

	 	 	 	 	 	 
	Name: Ruby Lee

	 	 	 	 	 	Name: Michael Binney

Title: Director
	 
	 	 	 	 	 	 
	ATTEST	 	 	 	AKAI ELECTRIC (CHINA) CO. LTD.
	 
	 	 	 	 	 	 
	/s/ Ruby Lee

	 	 	 	By:
	 	/s/ Paul Law Fwok Fai
	 

	 	 	 	 	 	 
	Name: Ruby Lee

	 	 	 	 	 	Name: Paul Law Fwok Fai

Title: Authorised Signatory
	 
	 	 	 	 	 	 
	ATTEST	 	 	 	SANSUI ELECTRIC (CHINA) CO. LTD.
	 
	 	 	 	 	 	 
	/s/ Ruby Lee

	 	 	 	By:
	 	/s/ Paul Law Fwok Fai
	 

	 	 	 	 	 	 
	Name: Ruby Lee

	 	 	 	 	 	Name: Paul Law Fwok Fai

Title: Authorised Signatory

Signature Page To Promissory Note

 

SCHEDULE 1

INSTALLMENTS

	 	 	 	 	 	 	 	 	 
	Installment	 	 	 	 	 	Installment Amount
	Number	 	Payment Date	 	(in US Dollars)
	 
	 	 	 	 	 	 	 	 
	1.
	 	April 1, 2007	 	$	672,000.00	 
	2.
	 	April 7, 2007	 	$	4,626,800.00	 
	3.
	 	April 26, 2007	 	$	4,785,246.38	 
	4.
	 	May 4, 2007	 	$	4,543,664.18	 
	5.
	 	May 5, 2007	 	$	1,780,790.62	 
	6.
	 	May 10, 2007	 	$	120,271.88	 
	7.
	 	May 17, 2007	 	$	4,225,894.55	 
	8.
	 	May 26, 2007	 	$	1,056,729.53	 
	9.
	 	June 3, 2007	 	$	2,060,348.47	 

Schedule 1 To Promissory NoteEX-10.2

 

Exhibit 10.2

GUARANTY

			
	Parsippany, New Jersey
	 	February 21, 2007

     FOR VALUE RECEIVED, and in consideration of the issuance of and/or drawings under letters of
credit issued by Wachovia Bank, National Association under the applications by Emerson Radio Macao
Commercial Offshore Limited, a subsidiary of EMERSON RADIO CORP., a Delaware corporation
(“Lender”), for the benefit of CAPETRONIC DISPLAY LIMITED, NAKAMICHI CORPORATION, AKAI ELECTRIC
(CHINA) CO. LTD. and/or SANSUI ELECTRIC (CHINA) CO. LTD., each of which is a wholly owned
subsidiary of the undersigned (each, a “Borrower”, and, collectively, “Borrowers”), under Letter of
Credit Nos. IC611935H, IC611936H, IC611982H, IC612205H, IC612206H, IC612968H, IC613030H, IC613031H,
IC613372H and IC613373H (the “Letters of Credit”), the obligations of Borrowers to repay such
amounts is evidenced by the Promissory Note, dated as of February 21, 2007, issued by the Borrowers
to Lender (as the same may be amended, restated, supplemented or otherwise modified from time to
time, the “Promissory Note”), and for other good and valuable consideration, the undersigned
(hereinafter referred to as “Guarantor” or “the undersigned”) unconditionally guarantees to Lender,
its successors, endorsees and assigns the prompt payment when due (whether by acceleration or
otherwise) of all present and future obligations and liabilities of any and all kinds of Borrowers
to Lender and of all instruments of any nature evidencing or relating to any such obligations and
liabilities upon which any Borrower or one or more parties and any Borrower is or may become liable
to Lender, whether incurred by any Borrower as maker, endorser, drawer, acceptor, guarantor,
issuer, accommodation party or otherwise, and whether due or to become due, secured or unsecured,
absolute or contingent, joint or several, and however or whenever acquired, directly or indirectly,
by Lender, whether arising under, out of, or in connection with the Promissory Note or any
documents, instruments or agreements relating to or executed in connection with the Promissory Note
or any documents, instruments or agreements referred to in the Promissory Note (together with the
Promissory Note, as each may be amended, modified, restated or supplemented from time to time, the
“Loan Documents”), or otherwise (all of which are herein collectively referred to as the
“Obligations”), and irrespective of the genuineness, validity, regularity or enforceability of such
Obligations, or of any instrument evidencing any of the Obligations or of any collateral therefor
or of the existence or extent of such collateral, and irrespective of the allowability, allowance
or disallowance of any or all of the Obligations in any case commenced by or against any Borrower
under any Insolvency Law (as defined in Section 2 hereof), including, without limitation,
obligations or indebtedness of any Borrower for post-petition interest, fees, costs and charges
that would have accrued or been added to the Obligations but for the commencement of such case. In
furtherance of the foregoing, the undersigned hereby agrees as follows:

     1. No Impairment. Lender may at any time and from time to time, either before or
after the maturity thereof, without notice to or further consent of the undersigned, extend the
time of payment of, exchange or surrender any collateral for, renew or extend any of the
Obligations or increase or decrease the interest rate thereon, and may also make any agreement with
any Borrower or with any other party to or person liable on any of the Obligations, or interested
therein, for the extension, renewal, payment, compromise, discharge or release thereof, in whole or
in part, or for any modification of the terms thereof or of any agreement between

 

 

Lender and any Borrower or any such other party or person, or make any election of rights
Lender may deem desirable under Title 11 of the United States Code entitled “Bankruptcy,” as now
and hereafter in effect, or any successor statute, or any other federal, state or foreign
bankruptcy, reorganization, moratorium or insolvency law relating to or affecting the enforcement
of creditors’ rights generally (any of the foregoing, an “Insolvency Law”) without in any way
impairing or affecting this Guaranty. This instrument shall be effective regardless of the
subsequent merger or consolidation of Borrower, or any change in the composition, nature,
personnel, jurisdiction or organization or location of Borrower and shall extend to any successor
entity to Borrower, including a debtor in possession or the like under any Insolvency Law.

     2. Guaranty Absolute. The undersigned guarantees that the Obligations will be paid
strictly in accordance with the terms of the Promissory Note and/or any other document, instrument
or agreement creating or evidencing the Obligations, regardless of any law, regulation or order now
or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any
Borrower with respect thereto. Guarantor hereby knowingly accepts the full range of risk
encompassed within a contract of “continuing guaranty” which risk includes the possibility that one
or more Borrowers will contract additional indebtedness for which Guarantor may be liable hereunder
after any such Borrower’s financial condition or ability to pay its lawful debts when they fall due
has deteriorated, whether or not any such Borrower has properly authorized incurring such
additional indebtedness. The undersigned acknowledges that (i) no oral representations, including
any representations to extend credit or provide other financial accommodations to the Borrowers,
have been made by Lender to induce the undersigned to enter into this Guaranty and (ii) any
extension of credit to the Borrowers shall be governed solely by the provisions of the Promissory
Note. The liability of the undersigned under this Guaranty shall be absolute and unconditional, in
accordance with its terms, and shall remain in full force and effect without regard to, and shall
not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever, including, without limitation: (a) any waiver, indulgence, renewal,
extension, amendment or modification of or addition, consent or supplement to or deletion from or
any other action or inaction under or in respect of the Loan Documents or any other instruments or
agreements relating to the Obligations or any assignment or transfer of any thereof, (b) any lack
of validity or enforceability of any Loan Document or other documents, instruments or agreements
relating to the Obligations or any assignment or transfer of any thereof, (c) any furnishing of any
additional security to Lender or its assignees or any acceptance thereof or any release of any
security by Lender or its assignees, (d) any limitation on any party’s liability or obligation
under the Loan Documents or any other documents, instruments or agreements relating to the
Obligations or any assignment or transfer of any thereof or any invalidity or unenforceability, in
whole or in part, of any such document, instrument or agreement or any term thereof, (e) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other
like proceeding relating to Borrower, or any action taken with respect to this Guaranty by any
trustee or receiver, or by any court, in any such proceeding, whether or not the undersigned shall
have notice or knowledge of any of the foregoing, (f) any exchange, release or nonperfection of any
collateral, or any release, or amendment or waiver of or consent to departure from any guaranty or
security, for all or any of the Obligations or (g) any other circumstance which might otherwise
constitute a defense available to, or a discharge of, the undersigned. Any amounts due from the
undersigned to Lender shall bear interest until such amounts are paid in full at the highest rate
then applicable to the Obligations. Obligations include post-petition interest whether or not
allowed or allowable.

2

 

     3. Waivers. (a) This Guaranty is a guaranty of payment and not of collection. Lender
shall be under no obligation to institute suit, exercise rights or remedies or take any other
action against any Borrower or any other person liable with respect to any of the Obligations or
resort to any collateral security held by it to secure any of the Obligations as a condition
precedent to the undersigned being obligated to perform as agreed herein and Guarantor hereby
waives any and all rights which it may have by statute or otherwise which would require Lender to
do any of the foregoing. Guarantor further consents and agrees that Lender shall be under no
obligation to marshal any assets in favor of Guarantor, or against or in payment of any or all of
the Obligations. The undersigned hereby waives all suretyship defenses and any rights to interpose
any defense, counterclaim or offset of any nature and description which the undersigned may have or
which may exist between and among Lender, any Borrower and/or the undersigned with respect to the
undersigned’s obligations under this Guaranty, or which any Borrower may assert on the underlying
debt, including but not limited to failure of consideration, breach of warranty, fraud, payment
(other than cash payment in full of the Obligations), statute of frauds, bankruptcy, infancy,
statute of limitations, accord and satisfaction, and usury.

          (b) The undersigned further waives (i) notice of the acceptance of this Guaranty, of the
making of any such loans or extensions of credit, and of all notices and demands of any kind to
which the undersigned may be entitled, including, without limitation, notice of adverse change in
any Borrower’s financial condition or of any other fact which might materially increase the risk of
the undersigned and (ii) presentment to or demand of payment from anyone whomsoever liable upon any
of the Obligations, protest, notices of presentment, non-payment or protest and notice of any sale
of collateral security or any default of any sort.

          (c) Notwithstanding any payment or payments made by the undersigned hereunder, or any setoff
or application of funds of the undersigned by Lender, the undersigned shall not be entitled to be
subrogated to any of the rights of Lender against any Borrower or against any collateral or
guarantee or right of offset held by Lender for the payment of the Obligations, nor shall the
undersigned seek or be entitled to seek any contribution or reimbursement from any Borrower in
respect of payments made by the undersigned hereunder, until all amounts owing to Lender by any
Borrower on account of the Obligations are paid in full and the Promissory Note has been
terminated. If, notwithstanding the foregoing, any amount shall be paid to the undersigned on
account of such subrogation rights at any time when all of the Obligations shall not have been paid
in full and the Promissory Note shall not have been terminated, such amount shall be held by the
undersigned in trust for Lender, segregated from other funds of the undersigned, and shall
forthwith upon, and in any event within two (2) business days of, receipt by the undersigned, be
turned over to Lender in the exact form received by the undersigned (duly endorsed by the
undersigned to Lender, if required), to be applied against the Obligations, whether matured or
unmatured, in such order as Lender may determine, subject to the provisions of the Promissory Note.
Any and all present and future debts and obligations of any Borrower to the undersigned are hereby
waived and postponed in favor of, and subordinated to the full payment and performance of, all
present and future debts and obligations of Borrowers to Lender.

     4. Security. All sums at any time to the credit of the undersigned and any property
of the undersigned in Lender’s possession or in the possession of any bank, financial institution
or other entity that directly or indirectly, through one or more intermediaries, controls or is

3

 

controlled by, or is under common control with, Lender (each such entity, an “Affiliate”)
shall be deemed held by Lender or such Affiliate, as the case may be, as security for any and all
of the undersigned’s obligations to Lender and to any Affiliate of Lender, no matter how or when
arising and whether under this or any other instrument, agreement or otherwise.

     5. Representations and Warranties. The undersigned hereby represents and warrants
(all of which representations and warranties shall survive until all Obligations are indefeasibly
satisfied in full and the Promissory Note has been irrevocably terminated), that:

     (a) Corporate Status. The undersigned is a corporation duly organized, validly
existing and in good standing under the laws of Bermuda and has full power, authority and
legal right to own its property and assets and to transact the business in which it is
engaged.

     (b) Authority and Execution. The undersigned has full power, authority and
legal right to execute and deliver, and to perform its obligations under, this Guaranty and
has taken all necessary corporate and legal action to authorize the execution, delivery and
performance of this Guaranty.

     (c) Legal, Valid and Binding Character. This Guaranty constitutes the legal,
valid and binding obligation of the undersigned enforceable in accordance with its terms,
except as enforceability may be limited by applicable Insolvency Law.

     (d) Violations. The execution, delivery and performance of this Guaranty will
not violate any requirement of law applicable to the undersigned or any material contract,
agreement or instrument to which the undersigned is a party or by which the undersigned or
any property of the undersigned is bound or result in the creation or imposition of any
mortgage, lien or other encumbrance other than to Lender on any of the property or assets of
the undersigned pursuant to the provisions of any of the foregoing.

     (e) Consents or Approvals. No consent of any other person or entity
(including, without limitation, any creditor of the undersigned) and no consent, license,
permit, approval or authorization of, exemption by, notice or report to, or registration,
filing or declaration with, any governmental authority is required in connection with the
execution, delivery, performance, validity or enforceability of this Guaranty.

     (f) Litigation. No litigation, arbitration, investigation or administrative
proceeding of or before any court, arbitrator or governmental authority, bureau or agency is
currently pending or, to the best knowledge of the undersigned, threatened (i) with respect
to this Guaranty or any of the transactions contemplated by this Guaranty or (ii) against or
affecting the undersigned, or any of property or assets of the undersigned, which, if
adversely determined, would have a material adverse effect on the business, operations,
assets or condition, financial or otherwise, of the undersigned.

     (g) Financial Benefit. The undersigned has derived or expects to derive a
financial or other advantage from the benefits derived by Borrowers under the Letters of
Credit or any other Obligation incurred by Borrower to Lender.

4

 

     6. Acceleration. (a) If any breach of any covenant or condition or other event of
default shall occur and be continuing under any agreement made by any Borrower or the undersigned
to Lender, or any Borrower or the undersigned should at any time become insolvent, or make a
general assignment, or if a proceeding in or under any Insolvency Law shall be filed or commenced
by, or in respect of, the undersigned, or if a notice of any lien, levy, or assessment is filed of
record with respect to any assets of the undersigned by the United States of America or any
department, agency, or instrumentality thereof, or if any taxes or debts owing at any time or times
hereafter to any one of them becomes a lien or encumbrance upon any assets of the undersigned in
Lender’s possession, or otherwise, any and all Obligations shall for purposes hereof, at Lender’s
option, be deemed due and payable without notice notwithstanding that any such Obligation is not
then due and payable by Borrower.

          (b) The undersigned will promptly notify Lender of any default by the undersigned in the
performance or observance of any term or condition of any agreement to which the undersigned is a
party if the effect of such default is to cause, or permit the holder of any obligation under such
agreement to cause, such obligation to become due prior to its stated maturity and, if such an
event occurs, Lender shall have the right to accelerate the undersigned’s obligations hereunder.

     7. Payments from Guarantor. Lender, in its sole and absolute discretion, with or
without notice to the undersigned, may apply on account of the Obligations any payment from the
undersigned or any other guarantor, or amounts realized from any security for the Obligations, or
may deposit any and all such amounts realized in a non-interest bearing cash collateral deposit
account to be maintained as security for the Obligations.

     8. Costs. The undersigned shall pay on demand, all costs, fees and expenses
(including expenses for legal services of every kind) relating or incidental to the enforcement or
protection of the rights of Lender hereunder or under any of the Obligations.

     9. No Termination. This is a continuing irrevocable guaranty and shall remain in full
force and effect and be binding upon the undersigned, and the undersigned’s successors and assigns,
until all of the Obligations have been paid in full and the Promissory Note has been irrevocably
terminated.

     10. Recapture. Anything in this Guaranty to the contrary notwithstanding, if Lender
receives any payment or payments on account of the liabilities guaranteed hereby, which payment or
payments or any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to a trustee, receiver, or any other party
under any Insolvency Law, common law or equitable doctrine, then to the extent of any sum not
finally retained by Lender, the undersigned’s obligations to Lender shall be reinstated and this
Guaranty shall remain in full force and effect (or be reinstated) until payment shall have been
made to Lender, which payment shall be due on demand.

     11. Books and Records. The books and records of Lender showing the account between
Lender and Borrower shall be admissible in evidence in any action or proceeding, shall be binding
upon the undersigned for the purpose of establishing the items therein set forth and shall
constitute prima facie proof thereof.

5

 

     12. No Waiver. No failure on the part of Lender to exercise, and no delay in
exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise by Lender of any right, remedy or power hereunder preclude any other or
future exercise of any other legal right, remedy or power. Each and every right, remedy and power
hereby granted to Lender or allowed it by law or other agreement shall be cumulative and not
exclusive of any other, and may be exercised by Lender at any time and from time to time.

     13. Waiver of Jury Trial. THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR WITH RESPECT
TO THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR RELATING OR INCIDENTAL HERETO.
THE UNDERSIGNED DOES HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF LENDER HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS
WAIVER OF RIGHT TO JURY TRIAL PROVISION.

     14. Governing Law; Jurisdiction; Amendments. THIS INSTRUMENT CANNOT BE CHANGED OR
TERMINATED ORALLY, AND SHALL BE GOVERNED, CONSTRUED AND INTERPRETED AS TO VALIDITY, ENFORCEMENT AND
IN ALL OTHER RESPECTS IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. THE UNDERSIGNED
EXPRESSLY CONSENTS TO THE JURISDICTION AND VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK,
COUNTY OF NEW YORK, AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK
FOR ALL PURPOSES IN CONNECTION HEREWITH. ANY JUDICIAL PROCEEDING BY THE UNDERSIGNED AGAINST LENDER
INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED TO OR
CONNECTED HEREWITH SHALL BE BROUGHT ONLY IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF
NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. THE
UNDERSIGNED FURTHER CONSENTS THAT ANY SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING,
WITHOUT LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF THE AFOREMENTIONED
COURTS OR A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY BE
SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT OF NEW YORK BY
REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE PROVIDED A
REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER MANNER AS MAY BE PERMISSIBLE UNDER
THE RULES OF SAID COURTS. THE UNDERSIGNED WAIVES ANY OBJECTION TO JURISDICTION AND VENUE OF ANY
ACTION INSTITUTED HEREON AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR
BASED UPON FORUM NON CONVENIENS.

     15. Severability. To the extent permitted by applicable law, any provision of this
Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the

6

 

remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction.

     16. Amendments, Waivers. No amendment or waiver of any provision of this Guaranty nor
consent to any departure by the undersigned therefrom shall in any event be effective unless the
same shall be in writing executed by the undersigned and Lender.

     17. Notices. All notices, requests and demands to or upon (a) the undersigned, shall
be in writing and shall be deemed to have been duly given or made (i) when delivered, if by hand,
(ii) three (3) days after being sent, postage prepaid, if by registered or certified mail, (iii)
when confirmed electronically, if by facsimile or by e-mail of a Portable Document Format (PDF)
file, (iv) when delivered, if by a recognized overnight delivery service (in the case of the events
described in clauses (i) through (iv), inclusive, to the number and/or address set forth beneath
the signature of the undersigned), or (v) upon Lender or a person acting on its behalf making a
public announcement relating to this Guaranty and/or the Obligations (including, without
limitation, by including such information in a report filed with the U.S. Securities and Exchange
Commission by Lender), or (b) Lender, shall be deemed duly given or made (i) when delivered, if by
hand, or (ii) when delivered, if by a recognized overnight delivery service, in each case to the
principal offices of Lender located at 9 Entin Road, Parsippany, New Jersey 07054.

     18. Successors. Lender may, from time to time, without notice to the undersigned,
sell, assign, transfer, pledge, hypothecate or otherwise dispose of all or any part of the
Obligations and/or rights under this Guaranty. In each such event, Lender, its Affiliates and each
and every immediate and successive purchaser, assignee, transferee or holder of all or any part of
the Obligations shall have the right to enforce this Guaranty, by legal action or otherwise, for
its own benefit as fully as if such purchaser, assignee, transferee or holder were herein by name
specifically given such right. Lender shall have an unimpaired right to enforce this Guaranty for
its benefit with respect to that portion of the Obligations which Lender has not disposed of, sold,
assigned, or otherwise transferred.

     19. Release. Nothing except cash payment in full in lawful money of the United States
of America of the Obligations shall release the undersigned from liability under this Guaranty.

[Signature Page Follows.]

7

 

     IN WITNESS WHEREOF, this Guaranty has been executed by the undersigned this 21st day of
February, 2007.

	 	 	 	 	 
	 	THE GRANDE HOLDINGS LIMITED,

a Bermuda corporation

 	 
	 	By:  	/s/ Michael Binney
 	 
	 	 	Name:  	Michael Binney 	 
	 	 	Title:  	Director 	 
	 

Notice Address:

146 Robinson Road

#01-01

Singapore 068909

Attention: Ruby Lee Yen Kee, Esq., Managing Director, Legal

Telephone No.: 011-65-6221-0010

Facsimile No.:

E-mail Address: ryk@grande.com.sg

Signature Page to Guaranty of

The Grande Holdings Limited

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]