Document:

Blueprint

160204-V2

  Exhibit
10.3

 

	

 

 

	

Continuing Guaranty

 

	

Name of Guarantor:

	

BK
Technologies Corporation

	
 

	
 

	

Guarantor's Address:

	

7100
Technology Drive

	
 

	

West
Melbourne, FL 32904

 

Dated
as of January 13, 2020

 

Guaranty. To induce JPMorgan Chase Bank, N.A., whose address
is 450 S Orange Ave, Floor 10, Orlando, FL 32801-3383 (together with its
successors and assigns, the "Bank"), at its option, to make financial
accommodations, make or acquire loans, extend or continue credit or
some other benefit, including letters of credit and foreign
exchange contracts, present or future, direct or indirect, and
whether several, joint or joint and several, to BK Technologies,
Inc. (whether one or more, the "Borrower", individually and
collectively, if more than one), and because BK Technologies
Corporation (the "Guarantor") has determined that
executing this Guaranty is in its interest and to its financial
benefit, the Guarantor absolutely and unconditionally guarantees to
the Bank the performance of and full and prompt payment of the
Liabilities when due, whether at stated maturity, by acceleration
or otherwise, provided however, that the Liabilities shall not
include any Excluded Swap Obligations (as defined below). The
Guarantor will not only pay the Liabilities, but will also
reimburse the Bank for any fees, charges, costs and expenses,
including reasonable attorneys' fees (including fees and expenses
of counsel for the Bank that are employees of the Bank or its
affiliates) and court costs, that the Bank may pay in collecting
from the Borrower or the Guarantor, and for liquidating any
Collateral (collectively, "Collection Amounts"), both before and
after judgment. The Guarantor's obligations under this Guaranty
shall be payable in lawful money of the United States of
America.

 

"Excluded
Swap Obligation" means any Swap Obligation (as defined
below) as to which it is or becomes unlawful under the Commodity
Exchange Act (as defined below) for the Guarantor to guaranty
hereunder because the Guarantor is not an "eligible contract
participant" (as defined in the Commodity Exchange Act) at the time
this Guaranty becomes or would become effective with respect to
such related Swap Obligation. "Commodity Exchange Act" means the
Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from
time to time, and any successor statute and/or any rule, regulation
or order of the Commodity Futures Trading Commission (or the
application or official interpretation of any thereof).
"Swap Obligation" means any
obligation to pay or perform under any agreement, contract or
transaction that constitutes a "swap" within the meaning of section
1a(47) of the Commodity Exchange Act.

 

Liabilities. The term "Liabilities" means all debts,
obligations, indebtedness and liabilities of every kind and
character of the Borrower, whether individual, joint and several,
contingent or otherwise, now or hereafter existing in favor of the
Bank, including, without limitation, all liabilities, interest,
costs and fees, arising under or from any note, open account,
overdraft, credit card, lease, Rate Management Transaction, letter
of credit application, endorsement, surety agreement, guaranty,
acceptance, foreign exchange contract or depository service
contract, whether payable to the Bank or to a third party and
subsequently acquired by the Bank, any monetary obligations
(including interest) incurred or accrued during the pendency of any
bankruptcy, insolvency, receivership or other similar
proceedings, regardless of whether allowed or allowable in such
proceedings, and all renewals, extensions, modifications,
consolidations, rearrangements, restatements, replacements or
substitutions of any of the foregoing. The Guarantor and the Bank
specifically contemplate that Liabilities include indebtedness
hereafter incurred by the Borrower to the Bank. The term
"Rate Management
Transaction" means (i) any transaction (including an
agreement with respect thereto) now existing or hereafter entered
into between the Borrower and the Bank and/or its affiliates, which
is a rate swap, swap option, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap,
equity or equity index option, bond option, interest rate option,
foreign exchange transaction, cap, floor, collar, currency swap, cross-currency rate swap,
currency option, credit protection transaction, credit swap, credit
default swap, credit default option, total return swap, credit
spread, repurchase transaction, reverser repurchase transaction,
buy/sell-back transaction, securities lending transaction, weather
index transaction or forward purchase or sale of a security,
commodity or other financial instrument or interest or (ii) any
type of transaction that is similar to any transaction referred to
in clause (i) above that is currently, or in the future becomes,
recurrently entered into in the financial markets and which is
forward, swap, future, option or other derivative on one or more
rates, currencies, commodities, equity securities or other equity
instruments, debt securities or other debt instruments, economic
indices or measures of economic risk or value, or other benchmarks
against which payments or deliveries are to be made, or any
combination of the foregoing transactions.

 

Limitation. The Guarantor's obligation under this Guaranty
is UNLIMITED.

 

 

 

Continued Reliance. This Guaranty shall remain in effect
until payment in full of the Remaining Liabilities, as defined
below, following termination of this Guaranty by the Guarantor in accordance with
this paragraph. This Guaranty will
continue to be in effect until final payment and performance in
full of all Liabilities and the termination of any commitment of
the Bank to make loans or other financial accommodations to the
Borrower. The Guarantor may terminate the Guarantor's liability for
Liabilities not in existence or for which the Bank has no
commitment to advance or acquire by delivering written notice to
the Bank as set forth in the paragraph below captioned "Notice."
After the Guarantor's termination of this Guaranty, the Guarantor
will continue to be liable for the following amounts (the
"Remaining Liabilities"):
(i) all Liabilities existing on the effective date of termination,
(ii) all Liabilities to which the Bank has committed to advance or
acquire prior to the effective termination date (whether or not the
Bank is contractually obligated to advance or acquire the loans or
extensions of credit), (iii)
all subsequent renewals, extensions, modifications, consolidations,
rearrangements, restatements, replacements and amendments (but not
increases) of those Liabilities, (iv)
all interest accruing on those Liabilities after the effective
termination date and (v) all Collection Amounts incurred
with respect to those Liabilities, on
or after the effective termination date. The Bank may
continue to permit the Borrower to incur Liabilities and to issue
commitments to the Borrower to advance or acquire Liabilities in
reliance on this Guaranty until the effective date of termination,
regardless of whether at any time or from time to time there are no
existing Liabilities nor commitment by the Bank to advance or
acquire Liabilities.

 

Security. The term "Collateral" means all real or personal
property described in all security agreements, pledge agreements,
mortgages, deeds of trust, assignments, or other instruments now or
hereafter executed in connection with any of the Liabilities. If
applicable, the Collateral secures the payment of the
Liabilities.

 

Bank's Right of
Setoff. In addition to the Collateral, if any, the Guarantor
grants to the Bank a security interest in the Accounts, and the
Bank is authorized to setoff and apply, all Accounts, Securities and Other Property,
and Bank Debt against any and all Liabilities of the Borrower and
all obligations of the Guarantor under this Guaranty. This right of
setoff may be exercised at any time and from time to time after the
occurrence of any default, and without prior notice to the
Guarantor. This security interest in the Accounts and right of
setoff may be enforced or exercised by the Bank regardless of
whether or not the Bank has made any demand under this paragraph or
whether the Liabilities are contingent, matured, or unmatured. Any
delay, neglect or conduct by the Bank in exercising its rights
under this paragraph will not be a waiver of the right to exercise
this right of setoff or enforce this security interest in the
Accounts. The rights of the Bank under this paragraph are in
addition to other rights the Bank may have by law. In this
paragraph: (a) the term "Accounts" means any and all accounts and
deposits of the Guarantor (whether general, special, time, demand,
provisional or final) at any time held by the Bank (including all
Accounts held jointly with another, but excluding any IRA or Keogh
Account, or any trust Account in which a security interest would be
prohibited by law); (b) the term "Securities and Other Property" means any
securities entitlements, securities accounts, investment property,
financial assets and all securities and other property of the
Guarantor in the custody, possession or control of the Bank,
JPMorgan Chase & Co. and their respective subsidiaries and
affiliates (other than property held by the Bank in a fiduciary
capacity); and (c) the term "Bank
Debt" means all indebtedness at any time owing by the Bank
to or for the credit or account of the Guarantor and any claim of
the Guarantor (whether individual, joint and several or otherwise)
against the Bank now or hereafter existing.

 

Remedies/Acceleration. If the Guarantor fails to pay any
amount owing under this Guaranty, the Bank shall have all of the
rights and remedies provided by law or under any other agreement.
The Bank is authorized to cause all or any part of the Collateral
to be transferred to or registered in its name or in the name of
any other person or business entity with or without designation of
the capacity of that nominee. The Guarantor is liable for any
deficiency in payment of any Liabilities whether of principal,
interest, fees, costs or expenses remaining after the disposition
of any Collateral. The Guarantor is liable to the Bank for all
reasonable costs and expenses of any kind incurred in the making
and collection of this Guaranty, both before and after judgment,
including without limitation reasonable attorneys' fees and court
costs. These costs and expenses include without limitation any
costs or expenses incurred by the Bank in any bankruptcy,
reorganization, insolvency or other similar proceeding. All amounts
payable under the terms of this Guaranty shall be paid without
relief from valuation and appraisement laws All obligations of the
Guarantor to the Bank under this Guaranty, whether or not then due
or absolute or contingent, shall, at the option of the Bank,
without notice or demand, become due and payable immediately upon
the occurrence of any default or event of default under the terms
of any of the Liabilities or otherwise with respect to any
agreement related to the Liabilities (or any other event that
results in acceleration of the maturity of any Liabilities,
including without limitation, demand for payment of any Liabilities
constituting demand obligations or automatic acceleration in a
legal proceeding) or the occurrence of any default under this
Guaranty.

 

2

 

 

Permissible Actions. If any monies become available from any
source other than the Guarantor that the Bank can apply to the
Liabilities, the Bank may apply them in any manner it chooses,
including but not limited to applying them against obligations,
indebtedness or liabilities which are not covered by this Guaranty.
The Bank may take any action against the Borrower, the Collateral,
or any other person liable for any of the Liabilities. The Bank may
release the Borrower or anyone else from the Liabilities, either in
whole or in part, or release the Collateral, and need not perfect a
security interest in the Collateral. The Bank does not have to
exercise any rights that it has against the Borrower or anyone
else, or make any effort to realize on the Collateral or any other
collateral for the Liabilities, or exercise any right of set-off.
The Guarantor authorizes the Bank, without notice or demand and
without affecting the Guarantor's obligations hereunder, from time
to time, to: (a) renew, modify, increase, compromise, rearrange,
restate, consolidate, extend, accelerate, postpone, grant any
indulgence or otherwise change the time for payment of, or
otherwise change the terms of the Liabilities or any part thereof,
including increasing or decreasing the rate of interest thereon;
(b) release, substitute or add any one or more endorsers, sureties,
Guarantor or other guarantors; (c) take and hold Collateral for the
payment of this Guaranty or the Liabilities, and enforce, exchange,
impair, substitute, subordinate, waive or release any Liabilities
or any Collateral for the Liabilities; (d) proceed against such
Collateral and direct the order or manner of sale of such
Collateral as the Bank in its discretion may determine; (e) apply
any and all payments from the Borrower, the Guarantor or any other
obligor on the Liabilities, or recoveries from such Collateral, in
such order or manner as the Bank in its discretion may determine;
and (f) to accept any partial payment of Liabilities or collateral
for the Liabilities. The Guarantor's obligations under this
Guaranty shall not be released, diminished or affected by (i) any
act or omission of the Bank, (ii) the voluntary or involuntary
liquidation, sale or other disposition of all or substantially all
of the assets of the Borrower, or any receivership, insolvency,
bankruptcy, reorganization, or other similar proceedings affecting
the Borrower, any other obligor or any of their respective assets,
(iii) any change in the composition or structure of the Borrower,
the Guarantor or any other obligor on the Liabilities, including a
merger or consolidation with any other person or entity, or (iv)
any payments made upon the Liabilities. The Guarantor hereby
expressly consents to any impairment of Collateral, including, but
not limited to, failure to perfect a security interest and release
Collateral and any such impairment or release shall not affect the
Guarantor's obligations hereunder.

 

Nature of Guaranty. This Guaranty is an absolute guaranty of
payment and performance and not of collection. Therefore, the Bank
may insist that the Guarantor pay immediately, and the Bank is not
required to attempt to collect first from the Borrower, the
Collateral, or any other person liable for the Liabilities. The
obligation of the Guarantor shall be unconditional and absolute
even if all or any part of any agreement between the Bank and the
Borrower is unenforceable, void, voidable or illegal or
uncollectible due to incapacity, lack of power or authority,
discharge or for any reason whatsoever, and regardless of the
existence of any defense, setoff, discharge or counterclaim (in any
case, whether based on contract, tort or any other theory) which
the Borrower may assert. If the Borrower is a corporation, limited
liability company, partnership or trust, it is not necessary for
the Bank to inquire into the powers of the Borrower or the
officers, directors, members, managers, partners, trustees or
agents acting or purporting to act on its behalf, and any of the
Liabilities made or created in reliance upon the professed exercise
of such powers shall be guaranteed hereunder. Without limiting the
foregoing, the Guarantor's liability is absolute and unconditional
irrespective of and shall not be released, diminished or affected
by: (a) any present or future law, regulation or order of any
jurisdiction (whether of right or in fact) or of any agency thereof
purporting to reduce, amend, restructure, render unenforceable or
otherwise affect any term of any Liabilities; or (b) any war, riot
or revolution impacting multinational companies or any act of
expropriation, nationalization or currency inconvertibility or
nontransferability arising from governmental, legislative or
executive measures affecting any obligor or the property of any
obligor on the Liabilities.

 

Other Guarantors. If there is more than one Guarantor, the
obligations under this Guaranty are joint and several. In addition,
each Guarantor under this Guaranty shall be jointly and severally
liable with any other guarantor of the Liabilities. If the Bank
elects to enforce its rights against fewer than all guarantors of
the Liabilities, that election does not release the Guarantor from
its obligations under this Guaranty. The compromise or release of
any of the obligations of any of the other guarantors or the
Borrower shall not serve to impair, waive, alter or release the
Guarantor's obligations.

 

Each
Qualified ECP Guarantor (as defined below) hereby jointly and
severally absolutely, unconditionally and irrevocably undertakes to
provide such funds or other support as may be needed from time to
time by the Borrower, any other obligor with respect to the
Borrower's obligations to the Bank, or any guarantor of the
Borrower's obligations to the Bank (each an "Obligor") to honor all of such Obligor's
obligations under this Guarantee in respect of Swap Obligations
(provided, however, that each Qualified ECP Guarantor shall only be
liable under this section for the maximum amount of such liability
that can be hereby incurred without rendering its obligations under
this section or otherwise under this Guarantee voidable under
applicable law relating to fraudulent conveyance or fraudulent
transfer, and not for any greater amount). The obligations of each
Qualified ECP Guarantor under this section shall remain in full
force and effect until the payment of all Liabilities and Remaining
Liabilities. Each Qualified ECP Guarantor intends that this section
constitute, and be deemed to constitute, a "keepwell, support, or
other agreement" for the benefit of each other Obligor for all
purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
"Qualified ECP Guarantor" means, in
respect of any Swap Obligation, each Obligor that has total assets
exceeding $10,000,000 at the time the relevant Guarantee or grant
of the relevant security interest becomes or would become effective
with respect to such Swap Obligation or such other person as
constitutes an "eligible contract participant" under the Commodity
Exchange Act or any regulations promulgated thereunder and can
cause another person to qualify as an "eligible contract
participant" at such time by entering into a keepwell under Section
1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

Rights of Subrogation. The Guarantor waives and agrees not
to enforce any rights of subrogation, contribution, reimbursement,
exoneration or indemnification that it may have against the
Borrower, any person liable on the Liabilities, or the Collateral,
until the Borrower and the Guarantor have fully performed all their
obligations to the Bank, even if those obligations are not covered
by this Guaranty.

 

3

 

 

Waivers. To the maximum extent not prohibited by applicable
law, the Guarantor waives:

 

1. 

All rights and
benefits under any laws or statutes regarding sureties, as may be
amended; and

 

2. 

Any right the
Guarantor may have to receive notice of the following matters
before the Bank enforces any of its rights: (a) the Bank's
acceptance of this Guaranty, (b) incurrence or acquisition of any
Liabilities (including, without limitation, any material alteration
of the Liabilities), any credit that the Bank extends to the
Borrower, Collateral received or delivered, default by any party to
any agreement related to the Liabilities or other action taken in
reliance on this Guaranty, and all notices and other demands of any
description, (c) diligence and promptness in preserving liability
against any obligor on the Liabilities, and in collecting or
bringing suit to collect the Liabilities from any obligor on the
Liabilities or to pursue any remedy in the Bank’s power to
pursue; (d) notice of extensions, renewals, modifications,
rearrangements, restatements and substitutions of the Liabilities
or any Collateral for the Liabilities; (e) notice of failure to pay
any of the Liabilities as they mature, any other default, adverse
facts that would affect the Guarantor’s risk, any adverse
change in the financial condition of any obligor on the
Liabilities, release or substitution of any Collateral,
subordination of the Bank’s rights in any Collateral, and
every other notice of every kind that may lawfully be waived; (f)
the Borrower's default, (g) any demand, intent to accelerate, diligence,
presentment, dishonor and protest, or (h) any action that the Bank
takes regarding the Borrower, anyone else, the Collateral, or any
of the Liabilities, which it might be entitled to by law or under
any other agreement;

 

3. 

Any right it may
have to require the Bank to proceed against the Borrower, any other
obligor or guarantor of the Liabilities, or the Collateral for the
Liabilities or the Guarantor's obligations under this Guaranty, or
pursue any remedy in the Bank's power to pursue;

 

4. 

Any defense based
on any claim that the Guarantor's obligations exceed or are more
burdensome than those of the Borrower;

 

5. 

The benefit of any
statute of limitations affecting the Guarantor's obligations
hereunder or the enforcement hereof;

 

6. 

Any defense arising
by reason of any disability or other defense of the Borrower or by
reason of the cessation from any cause whatsoever (other than
payment in full) of the obligation of the Borrower for the
Liabilities;

 

7. 

Any defense based
on or arising out of the Bank's negligent administration of the
Liabilities;

 

8. 

Any defense based
on or arising out of any defense that the Borrower may have to the
payment or performance of the Liabilities or any portion thereof;
and

 

9. 

The Bank may waive
or delay enforcing any of its rights without losing them. Any
waiver affects only the specific terms and time period stated in
the waiver. No modification or waiver of this Guaranty is effective
unless it is in writing and signed by the party against whom it is
being enforced. The Guarantor acknowledges that it has made these
waivers knowingly and voluntarily and after having the opportunity
to consider the ramifications of these waivers with its
attorneys.

 

Cooperation. The Guarantor agrees to fully cooperate with
the Bank and not to delay, impede or otherwise interfere with the
efforts of the Bank to secure payment from the assets which secure
the Liabilities including actions, proceedings, motions, orders,
agreements or other matters relating to relief from automatic stay,
abandonment of property, use of cash collateral and sale of the
Bank's collateral free and clear of all liens.

 

Reinstatement. The Guarantor agrees that to the extent any
payment or transfer is received by the Bank in connection with the
Liabilities, and all or any part of the payment or transfer is
subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be transferred or repaid by
the Bank or transferred or paid over to a trustee, receiver or any
other entity, whether under any bankruptcy act or otherwise (any of
those payments or transfers is hereinafter referred to as a
"Preferential Payment"),
then this Guaranty shall continue to be effective or shall be
reinstated, as the case may be, and whether or not the Bank is in
possession of this Guaranty, or whether the Guaranty has been
marked paid, released or canceled, or returned to the Guarantor
and, to the extent of the payment, repayment or other transfer by
the Bank, the Liabilities or part intended to be satisfied by the
Preferential Payment shall be revived and continued in full force
and effect as if the Preferential Payment had not been
made.

 

Information. The Guarantor assumes all responsibility for
being and keeping itself informed of the Borrower's financial
condition and assets, and of all other circumstances bearing upon
the risk of nonpayment of the Liabilities and the nature, scope and
extent of the risks that the Guarantor assumes and incurs under
this Guaranty, and agrees that the Bank does not have any duty to
advise the Guarantor of information known to it regarding those
circumstances or risks.

 

4

 

 

Financial Information. The Guarantor further agrees that the
Guarantor shall provide to the Bank
the financial statements and other information relating to the
financial condition, properties and affairs of the Guarantor as the
Bank requests from time to time.

 

Severability. The provisions of this Guaranty are severable,
and if any one or more of the obligations of the Guarantor under
this Guaranty or the provisions of this Guaranty is held to be
invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining obligations
of the Guarantor and the remaining provisions shall not in any way
be affected or impaired; and the invalidity, illegality or
unenforceability in one jurisdiction shall not affect the validity,
legality or enforceability of such obligation(s) or provision(s) in
any other jurisdiction; provided, however, notwithstanding the
foregoing, in any action or proceeding involving any state
corporate law, or any state, federal or foreign bankruptcy,
insolvency, reorganization or other law affecting the rights of
creditors generally, if the obligations of the Guarantor under this
Guaranty would otherwise be held or determined to be avoidable,
invalid or unenforceable on account of the amount of the
Guarantor's liability under this Guaranty, then, notwithstanding
any other provision of this Guaranty to the contrary, the amount of
such liability shall, without any further action by the Guarantor
or the Bank, be automatically limited and reduced to the highest
amount that is valid and enforceable as determined in such action
or proceeding.

 

Representations and Warranties by Guarantor. The Guarantor
represents and warrants that the following statements are true and
will remain true until termination of this Guaranty and payment in
full of all Liabilities: (a) the execution and delivery of this
Guaranty and the performance of the obligations it imposes do not
violate any law, do not conflict with any agreement by which it is
bound, or require the consent or approval of any governmental
authority or any third party; (b) this Guaranty is a valid and
binding agreement, enforceable according to its terms; (c) all
balance sheets, profit and loss statements, and other financial
statements furnished to the Bank in connection with the Liabilities
are accurate and fairly reflect the financial condition of the
organizations and persons to which they apply on their effective
dates, including contingent liabilities of every type, which
financial condition has not changed materially and adversely since
those dates; (d) the Guarantor has filed all federal and state tax
returns that are required to be filed, has paid all due and payable
taxes and assessments against the property and income of the
Guarantor and all payroll, excise and other taxes required to be
collected and held in trust by the Guarantor for any governmental
authority; (e) the Guarantor has determined that this Guaranty will
benefit the Guarantor directly or indirectly; (f) the Guarantor has
(i) without reliance on the Bank or any information received from
the Bank and based upon the records and information the Guarantor
deems appropriate, made an independent investigation of the
Borrower, the business, assets, operations, prospects and
condition, financial or otherwise, of the Borrowers and any
circumstances that may bear upon those transactions, the Borrower
or the obligations, liabilities and risks undertaken in this
Guaranty with respect to the Liabilities; (ii) adequate means to
obtain from the Borrower on a continuing basis information
concerning the Borrower and the Bank has no duty to provide any
information concerning the Borrower or any other obligor to the
Guarantor; (iii) full and complete access to the Borrower and any
and all records relating to any Liabilities now and in the future
owing by the Borrower; (iv) not relied and will not rely upon any
representations or warranties of the Bank not embodied in this
Guaranty or any acts taken by the Bank prior to and after execution
or other authentication and delivery of this Guaranty (including
but not limited to any review by the Bank of the business, assets,
operations, prospects and condition, financial or otherwise, of the
Borrower); and (v) determined that the Guarantor will receive
benefit, directly or indirectly, and has or will receive fair and
reasonably equivalent value for, the execution and delivery of this
Guaranty; (g) by entering into this Guaranty, the Guarantor does
not intend to incur or believe that the Guarantor will incur debts
that would be beyond the Guarantor’s ability to pay as those
debts mature; (h) the execution and delivery of this Guaranty are
not intended to hinder, delay or defraud any creditor of the
Guarantor; and (i) the Guarantor is neither engaged in nor about to
engage in any business or transaction for which the remaining
assets of the Guarantor are unreasonably small in relation to the
business or transaction, and any property remaining with the
Guarantor after the execution or other authentication of this
Guaranty is not unreasonably small capital. Each Guarantor, other
than a natural person, further represents that: (1) it is duly
organized, validly existing and in good standing under the laws of
the state where it is organized and in good standing in each state
where it is doing business; and (2) the execution and delivery of
this Guaranty and the performance of the obligations it imposes (A)
are within its powers and have been duly authorized by all
necessary action of its governing body, and (B) do not contravene
the terms of its articles of incorporation or organization, its
by-laws, or any agreement or document governing its
affairs.

 

Notice. Except as otherwise provided in this Guaranty, any
notices and demands under or related to this document shall be in
writing and delivered to the Guarantor at its address stated in
this agreement and if to the Bank, shall be addressed to Manager
Wholesale Lending Services, JPMorgan Chase Bank, N.A., 10 S.
Dearborn, IL1-1145 (Floor L2), Chicago, IL 60603-2300 with a copy
addressed to Amine Radi, JPMorgan Chase Bank, N.A., 450 S Orange
Ave, Floor 10, Orlando, FL 32801-3383, and if to the Bank, at its
main office if no other address of the Bank is specified herein, by
one of the following means: (a) by hand, (b) by a nationally
recognized overnight courier service, or (c) by certified mail,
postage prepaid, with return receipt requested. Notice shall be
deemed given: (i) upon receipt if delivered by hand, (ii) on the
Delivery Day after the day of deposit with a nationally recognized
courier service, or (iii) on the third Delivery Day after the
notice is deposited in the mail. "Delivery Day" means a day other than a
Saturday, a Sunday, or any other day on which national banking
associations are authorized to be closed. Any party may change its
address for purposes of the receipt of notices and demands by
giving notice of such change in the manner provided in this
provision. Notice of terminations, as provided above, will not be
deemed received until actually received by the Manager Wholesale
Lending Services, JPMorgan Chase Bank, N.A., 10 S. Dearborn,
IL1-1145 (Floor L2), Chicago, IL 60603-2300 under written receipt
and shall be effective at the opening of the Bank for business on
the third Delivery Day after receipt of the notice.

 

 

5

 

 

Governing Law and Venue. This Guaranty and (unless stated
otherwise therein) all Related Documents shall be governed by and
construed in accordance with Applicable Law. "Applicable Law" means the laws of the
State of Florida (without giving effect to its laws of conflicts).
The Guarantor agrees that any legal action or proceeding with
respect to any of its obligations under this Guaranty may be
brought by the Bank in any state or federal court located in the
State of Florida, as the Bank in its sole discretion may elect. By
the execution and delivery of this Guaranty, the Guarantor submits
to and accepts, for itself and in respect of its property,
generally and unconditionally, the non-exclusive jurisdiction of
those courts. The Guarantor waives any claim that the State of
Florida is not a convenient forum or the proper venue for any such
suit, action or proceeding.

 

Miscellaneous. The Guarantor's liability under this Guaranty
is independent of its liability under any other guaranty previously
or subsequently executed by the Guarantor or any one of them,
singularly or together with others, as to all or any part of the
Liabilities, and may be enforced for the full amount of this
Guaranty regardless of the Guarantor's liability under any other
guaranty. This Guaranty binds the Guarantor and the Guarantor's
heirs, successors and assigns, and benefits the Bank and its
successors and assigns. The Bank may assign this Guaranty in whole
or in part without notice. The Guarantor agrees that the Bank and
its affiliates may at any time work together and share any
information about the Guarantor, the Guarantor’s affiliates,
the relationships of the Guarantor and the Guarantor's affiliates
with the Bank or any of its affiliates or their successors, or
about any matter relating to this Guaranty or any of the
Liabilities guaranteed hereby, with and among JPMorgan Chase &
Co., or any of its subsidiaries or affiliates or their successors,
any purchaser or potential purchaser of any of the Liabilities
guaranteed hereby, or any representative of any of the parties
described in this sentence. The use of headings does not limit the
provisions of this Guaranty. Any reference to a particular statute,
rule or regulation includes all amendments, revisions or
replacements of such statute, rule or regulation hereafter enacted.
Time is of the essence under this Guaranty and in the performance
of every term, covenant and obligation contained
herein.

 

WAIVER OF SPECIAL DAMAGES. WITH RESPECT TO THIS AGREEMENT
AND ALL RELATED DOCUMENTS, THE GUARANTOR WAIVES, TO THE MAXIMUM
EXTENT NOT PROHIBITED BY LAW, ANY RIGHT THE UNDERSIGNED MAY HAVE TO
CLAIM OR RECOVER FROM THE BANK IN ANY LEGAL ACTION OR PROCEEDING
ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL
DAMAGES.

 

JURY WAIVER. THE GUARANTOR AND THE BANK (BY ITS ACCEPTANCE HEREOF)
HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE MAXIMUM EXTENT NOT PROHIBITED BY APPLICABLE LAW, ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER
BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN THE GUARANTOR AND
THE BANK ARISING OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT.
THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE
FINANCING DESCRIBED HEREIN.

 

 

	
 

	
 

	
 

	

Guarantor:

	
 

	
 

	
 

	
 

	
 

	

BK
Technologies Corporation

 

	
 

	
 

	
 

	

By:

	

/s/
William
P. Kelly

	
 

	
 

	
 

	
 

	
 

	

William P. Kelly,
EVP and CFO  
 

	
 

	
 

	
 

	
 

	
 

	

Printed
Name

	

Title

	
 

	
 

	
 

	
 

	
 

	

 

	

 

	
 

	
 

	

Date
Signed:

	
1/30/20

	
 

 

 

 

6

 

 

	
 

	
 

	
 

	

Guarantor:

	
 

	
 

	
 

	
 

	
 

	

Relm
Communications, Inc.

 

	
 

	
 

	
 

	

By:

	

/s/
William
P. Kelly

	
 

	
 

	
 

	
 

	
 

	

William P. Kelly,
EVP and CFO  

	
 

	
 

	
 

	
 

	
 

	
 

	

Printed
Name

	

Title

	
 

	
 

	
 

	
 

	
 

	

 

	

 

	
 

	
 

	

Date
Signed:

	
1/30/20

	
 

 

 

 

7Blueprint

161108-V4

  Exhibit
10.4

 

	

 

 

	

 

 

Continuing
Security Agreement

 

Dated
as of January 13, 2020

 

Grant of Security Interest. To secure the payment and
performance of the Liabilities, BK Technologies, Inc. (whether one
or more, the "Borrower", individually and collectively if more than
one) pledges, assigns and grants to JPMorgan Chase Bank, N.A.,
whose address is 450 S Orange Ave, Floor 10, Orlando, FL 32801-3383 (together with its
successors and assigns, the "Bank") a continuing security interest
in, all of its right, title and interest in the Collateral (as
hereinafter defined), whether now owned or hereafter acquired and
whether now existing or hereafter arising.

 

"Liabilities"
means all obligations, indebtedness and liabilities of the Borrower whether individual,
joint and several, absolute or contingent, direct or
indirect, liquidated or unliquidated, now or hereafter existing in
favor of the Bank, including
without limitation, all liabilities, all interest, costs and fees
arising under or from any note, open account, overdraft, letter of
credit application, endorsement, surety agreement, guaranty, credit
card, lease, Rate Management Transaction, acceptance, foreign
exchange contract or depository service contract, whether payable
to the Bank or to a third party and subsequently acquired by the
Bank, any monetary obligations (including interest) incurred or
accrued during the pendency of any bankruptcy, insolvency,
receivership or other similar proceedings, regardless of whether
allowed or allowable in such proceeding, and all renewals,
extensions, modifications, consolidations, rearrangements,
restatements, replacements or substitutions of any of the
foregoing. "Rate Management
Transaction" means any transaction (including an agreement with
respect thereto) that is a rate swap, basis swap, forward rate
transaction, commodity swap, commodity option, equity or equity
index swap, equity or equity index option, bond option, interest
rate option, foreign exchange transaction, cap transaction, floor
transaction, collar transaction, forward transaction, currency swap
transaction, cross-currency rate swap transaction, currency option,
derivative transaction or any other similar transaction (including
any option with respect to any of these transactions) or any
combination thereof, whether linked to one or more interest rates,
foreign currencies, commodity prices, equity prices or other
financial measures. The Borrower and the Bank specifically contemplate that
Liabilities include indebtedness hereafter incurred by the Borrower
to the Bank.

 

The
term "Collateral" means all of the Borrower's "accounts"; "chattel paper"; "deposit
accounts" and other payment obligations of financial institutions
(including the Bank); "documents"; "equipment", including any
documents and certificates of title issued with respect to any of
the equipment; "general intangibles" and any right to a refund of
taxes paid at any time to any governmental entity; "instruments";
"inventory", including any documents and certificates of title
issued with respect to any of the inventory; "investment property";
"financial assets"; "letter of credit rights"; all as defined in
the UCC, whether owned or consigned by or to, or leased from or to
the Borrower, and wherever located. In addition, the term
"Collateral" includes all "proceeds", "products" and "supporting
obligations" (as such terms are defined in the UCC) of the
Collateral, including but not limited to all stock rights,
subscription rights, dividends, stock dividends, stock splits, or
liquidating dividends, and all cash, accounts, chattel paper,
"instruments," "investment property," "financial assets," and
"general intangibles" (as such terms are defined in the UCC)
arising from the sale, rent, lease, casualty loss or other
disposition of the Collateral, and any Collateral returned to,
repossessed by or stopped in transit by the Borrower, and all
insurance claims relating to any of the Collateral. The term
"Collateral" further includes all of the Borrower's right, title
and interest in and to all books, records and data relating to the
Collateral, regardless of the form of media containing such
information or data, and all software necessary or desirable to use
any of the Collateral or to access, retrieve, or process any of
such information or data. Where the Collateral is in the possession
of the Bank or the Bank's agent, the Borrower agrees to deliver to
the Bank any property that represents an increase in the Collateral
or profits or proceeds of the Collateral.

 

The
term "UCC" means the Uniform Commercial Code of Florida, as in
effect from time to time.

 

Representations, Warranties and Covenants. The Borrower
represents, warrants, and covenants to the Bank that each of the
following is true and will remain true until termination of this
agreement and payment in full of all Liabilities and agrees with
the Bank that:

 

1.

At its own expense,
it shall maintain comprehensive casualty insurance on the
Collateral against such risks, in such amounts, with such
deductibles and with such companies as may be satisfactory to the
Bank. Each insurance policy on the Collateral shall contain a
lender's loss payable endorsement satisfactory to the Bank and a
prohibition against cancellation or amendment of the policy or
removal of the Bank as loss payee without at least thirty (30)
days' prior written notice to
the Bank. In all events, the amounts of such insurance coverages on
the Collateral shall be in such minimum amounts that the Borrower
will not be deemed a co-insurer. The policies on the Collateral, or
certificates evidencing them, shall, if the Bank so requests, be
deposited with the Bank.

2.

It shall permit the
Bank, at the Borrower's expense, to inspect and examine the
Collateral and to check and test the same as to quality, quantity,
value, and condition.

 

 

 

 

 

3.

It shall maintain
the Collateral in good repair; use the Collateral in accordance
with law and in compliance with any policy of insurance thereon;
and exhibit the Collateral to the Bank on demand.

4.

Until the Bank
gives notice to the Borrower to the contrary or until the Borrower
is in default, it may use the funds collected in its business. Upon
notice from the Bank or upon default, the Borrower agrees that all
sums of money it receives on account of or in payment or settlement
of the accounts, chattel paper, certificated securities, negotiable
certificates of deposit, documents, general intangibles and
instruments shall be held by it as trustee for the Bank without
commingling with any of the Borrower's other funds, and shall
immediately be delivered to the Bank with endorsement to the Bank's
order of any check or similar instrument. It is agreed that, at any
time the Bank so elects, the Bank shall be entitled, in its own
name or in the name of the Borrower or otherwise, but at the
expense and cost of the Borrower, to collect, demand, receive, sue
for or compromise any and all accounts, chattel paper, certificated
securities, negotiable certificates of deposit, documents, general
intangibles, and instruments, and to give good and sufficient
releases, to endorse any checks, drafts or other orders for the
payment of money payable to the Borrower and, in the Bank's
discretion, to file any claims or take any action or proceeding
which the Bank may deem necessary or advisable. It is expressly
understood and agreed, however, that the Bank shall not be required
or obligated in any manner to make any demand or to make any
inquiry as to the nature or sufficiency of any payment received by
it or to present or file any claim or take any other action to
collect or enforce the payment of any amounts which may have been
assigned to the Bank or to which the Bank may be entitled at any
time or times. All notices required in this paragraph will be
immediately effective when sent. Such notices need not be given
prior to the Bank's taking action. The Borrower irrevocably
appoints the Bank or the Bank's designee as the Borrower's
attorney-in-fact to do all things with reference to the Collateral
as provided for in this agreement including without limitation (1)
to sign the Borrower's name on any invoice or bill of lading
relating to any Collateral, on assignments and verifications of
account and on notices to the Borrower's customers, and (2) to do
all things necessary to carry out this agreement or to perform any
of the Borrower's obligations under this agreement, (3) to notify
the post office authorities to change the Borrower's mailing
address to one designated by the Bank, and (4) to receive, open and
dispose of mail addressed to the Borrower. The Borrower ratifies
and approves all acts of the Bank as attorney-in-fact. This power
of attorney appointment is irrevocable, coupled with an interest,
and shall survive the death or disability of Borrower. The Bank shall not be liable for any act
or omission, nor any error of judgment or mistake of fact or law,
but only for its gross negligence or willful misconduct. This power
being coupled with an interest is irrevocable until all of the
Liabilities have been fully satisfied. Immediately upon its receipt
of any Collateral evidenced by an agreement, "instrument," "chattel
paper," certificated "security" or "document" (as such terms are
defined in the UCC) (collectively, "Special Collateral"), it shall
mark the Special Collateral to show that it is subject to the
Bank's security interest, pledge and assignment and shall deliver
the original to the Bank together with appropriate endorsements and
other specific evidence of assignment or transfer in form and
substance satisfactory to the Bank.

5.

It will not, sell,
lease, license or offer to sell, lease, license, grant as security
to anyone other than the Bank, or otherwise transfer the Collateral
or any rights in or to the Collateral, without the written consent
of the Bank, except for the sale of inventory in the ordinary
course of business; or change the location of the Collateral from
the locations of the Collateral disclosed to the Bank, without
providing at least ten (10) days' prior written notice to the
Bank.

6.

No financing
statement or similar record covering all or any part of the
Collateral or any proceeds is on file in any public office, unless
the Bank has approved that filing.

7.

When the Collateral is located at, used in or attached
to a facility leased by the Borrower, the Borrower will, at
the request of the Bank, obtain from the lessor a consent to the
granting of this security interest and a release or subordination
of the lessor's interest in any of the Collateral, in form and
substance satisfactory to the Bank.

 

 

2

 

Remedies Regarding Collateral. The Bank shall have the right
to require the Borrower to assemble the Collateral and make it
available to the Bank at a place to be designated by the Bank which
is reasonably convenient to both parties, the right to take
possession of the Collateral with or without demand and with or
without process of law, and the right to sell and dispose of it and
distribute the proceeds according to law. The Borrower agrees that
upon default the Bank may dispose of any of the Collateral in its
then present condition, that the Bank has no duty to repair or
clean the Collateral prior to sale, and that the disposal of the
Collateral in its present condition or without repair or clean-up
shall not affect the commercial reasonableness of such sale or
disposition. The Bank's compliance with any applicable state or
federal law requirements in connection with the disposition of the
Collateral will not adversely affect the commercial reasonableness
of any sale of the Collateral. The Bank may disclaim warranties of
title, possession, quiet enjoyment, and the like, and the Borrower
agrees that any such action shall not affect the commercial
reasonableness of the sale. In connection with the right of the
Bank to take possession of the Collateral, the Bank may take
possession of any other items of property in or on the Collateral
at the time of taking possession, and hold them for the Borrower
without liability on the part of the Bank. The Borrower expressly
agrees that the Bank may enter upon the premises where the
Collateral is believed to be located without any obligation of
payment to the Borrower, and that the Bank may, without cost, use
any and all of the Borrower's "equipment" (as defined in the UCC)
in the manufacturing or processing of any "inventory" (as defined
in the UCC) or in growing, raising, cultivating, caring for,
harvesting, loading and transporting of any of the Collateral that
constitutes "farm products" (as defined in the UCC). If there is
any statutory requirement for notice, that requirement shall be met
if the Bank sends notice to the Borrower at least ten (10) days
prior to the date of sale, disposition or other event giving rise
to the required notice, and such notice shall be deemed
commercially reasonable. Without limiting any other remedy, the
Borrower is liable for any deficiency remaining after disposition
of the Collateral. The Bank is authorized to cause all or any part
of the Collateral to be transferred to or registered in its name or
in the name of any other person or business entity, with or without
designating the capacity of that nominee. The Bank shall be entitled to the appointment of a
receiver as a matter of right, without notice and without regard to
the value of the Collateral. Without limitation, the receiver shall
have the power to (i) protect and preserve the Collateral, (ii)
operate the business of the Borrower, (iii) collect and apply the
proceeds, over and above the costs of the receivership, to the
Liabilities, (iv) close the business of the Borrower and liquidate
all Collateral, and/or (v) sell the business of the Borrower as a
going concern. The receiver shall serve without bond, if permitted
by law. At its option the Bank may, but shall be under no
duty or obligation to, discharge taxes, liens, security interests
or other encumbrances at any time levied or placed on the
Collateral, pay for insurance on the Collateral, and pay for the
maintenance and preservation of the Collateral, and the Borrower
agrees to reimburse the Bank on demand for any such payment made or
expense incurred by the Bank with interest at the highest rate at
which interest may accrue under any of the instruments evidencing
the Liabilities. The Borrower authorizes the Bank to endorse on the
Borrower's behalf and to negotiate drafts reflecting proceeds of
insurance of the Collateral, provided that the Bank shall remit to
the Borrower such surplus, if any, as remains after the proceeds
have been applied, at the Bank's option, to the satisfaction of all
of the Liabilities (in such order of application as the Bank may
elect) or to the establishment of a cash collateral account for the
Liabilities. The Bank shall have the right now, and at any time in
the future in its sole and absolute discretion, without notice to
the Borrower to (a) prepare, file and sign the Borrower's name on
any proof of claim in bankruptcy or similar document against any
owner of the Collateral and (b) prepare, file and sign the
Borrower's name on any notice of lien, assignment or satisfaction
of lien or similar document in connection with the
Collateral.

 

Miscellaneous. A carbon, photographic or other reproduction
of this agreement is sufficient as, and can be filed as, a
financing statement or similar record. The Borrower authorizes the
Bank to file one or more financing statements or similar records
covering the Collateral or such lesser amount of assets as the Bank
may determine, or the Bank may, at its option, file financing
statements or similar records containing any collateral description
which reasonably describes the Collateral, and the Borrower will
pay the cost of filing them in all public offices where filing is
deemed by the Bank to be necessary or desirable. In addition, the
Borrower shall execute and deliver, or cause to be executed and
delivered, such other documents as the Bank may from time to time
request to perfect or to further evidence the pledge, security
interest and assignment created in the Collateral by this
agreement. If any provision of this agreement cannot be enforced,
the remaining portions of this agreement shall continue in effect.
The provisions of this agreement are severable, and if any one or
more of the provisions of this agreement are held to be invalid,
illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions shall not
in any way be affected or impaired; and the invalidity, illegality
or unenforceability in one jurisdiction shall not affect the
validity, legality or enforceability of such provision(s) in any
other jurisdiction. Time is of the essence under this agreement and
in the performance of every term, covenant and obligation contained
herein. Any notices and demands under
or related to this agreement shall be in writing and delivered to
the Borrower at 7100 Technology Drive, West Melbourne, FL
32904 and if to the Bank, shall be
addressed to Manager Wholesale Lending Services, JPMorgan
Chase Bank, N.A., 10 S. Dearborn, IL1-1145 (Floor L2), Chicago, IL
60603-2300 with a copy addressed to Amine Radi, JPMorgan Chase
Bank, N.A., 450 S Orange Ave, Floor 10, Orlando, FL 32801-3383
by one of the following means: (a) by
hand; (b) by a nationally recognized overnight courier service; or
(c) by certified mail, postage prepaid, with return receipt
requested. Notice (other than any Subordinated Creditor Termination
Notice) shall be deemed given: (i) upon receipt if delivered by
hand; (ii) on the Delivery Day after the day of deposit with a
nationally recognized courier service; or (iii) on the third
Delivery Day after the notice is deposited in the mail.
"Delivery
Day" means a day other than a
Saturday, a Sunday, or any other day on which national banking
associations are authorized to be closed. Any party may change the
party’s address for purposes of the receipt of notices and
demands by giving notice of the change in the manner provided in
this provision.

 

 

	
 

	

Borrower:

	
 

	
 

	
 

	

BK
Technologies, Inc.

	
 

	
 

	
 

	

By:

	
/s/ William P. Kelly,
EVP and CFO   

	
 

	
 

	
 

	
 

	

William P. Kelly,
EVP and CFO  

	
 

	
 

	
 

	
 

	

Printed
Name

	

Title

	
 

	
 

	
 

	
 

	

 

	

 

	
 

	

Date
Signed:

	
1/30/20

 

 

 

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]