Document:

Exhibit 10.10

 

THIS NOTE IS SUBJECT TO THE TERMS OF THAT CERTAIN SUBORDINATION
AGREEMENT BETWEEN WELLS FARGO BUSINESS CREDIT, INC., A MINNESOTA CORPORATION,
AND HOLDER DATED OF EVEN DATE HEREWITH.

 

 

PROMISSORY NOTE

 

	
  US$1,000,000

  	
   

  	
  Burlingame, California

  
	
   

  	
   

  	
  July 26, 2005

  

 

FOR VALUE RECEIVED,
OPTA SYSTEMS, LLC, a Delaware limited liability company (“Maker”) with its
principal office in Scottdale, Arizona, USA hereby promises to pay to TCL
MULTIMEDIA TECHNOLOGY HOLDINGS LIMITED, a Cayman Islands company (“Holder”)
with its principal office in Hong Kong, at 13/F, TCL Tower, 8 Tai Chung Road,
Tsuen Wan, N.T., Hong Kong, or at such other place as Holder may from time to
time designate, the principal sum of one million United States dollars
($1,000,000), plus interest at the rate of 0.257% per month.

 

The principal sum and any then accrued but unpaid
interest hereunder shall be due and payable in full on January 26,
2006.  Any and all payments due hereunder
shall be payable in lawful money of the United States and shall be credited
first to accrued interest and then to principal.  Failure to make any timely payment shall be
deemed an event of default hereunder Presentment for payment, notice of
dishonor, protest and notice of protest are expressly waived.  Maker may pay any part or all of the amount
due hereunder at any time or from time to time without penalty, premium or
bonus.

 

Maker agrees to secure its obligations to Holder under
this Note pursuant to a Security Agreement entered into herewith between Holder
and Maker on the effective date of this Note.

 

This Note may not be assigned without prior written
consent of the other party.

 

This Note shall be
governed by and the provisions herein to be construed in accordance with the
laws of the State of California without regard to any conflict of law
principles.

 

	
   

  	
  MAKER:

  
	
   

  	
   

  
	
   

  	
  Opta Systems,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ David Xiong,
  CEOExhibit 10.11

 

GUARANTY

 

THIS GUARANTY (“Guaranty”) is entered into by and
between OPTA CORPORATION,
a Delaware corporation (“Guarantor”), in favor of TCL MULTIMEDIA TECHNOLOGY HOLDINGS LIMITED, a Cayman Islands
company (“Beneficiary”), as of July 26, 2005.

 

RECITALS

 

A.                                   Pursuant
to the Purchase and Sale Agreement of even date herewith (the “Purchase
Agreement”) among OPTA SYSTEMS, LLC, a Delaware limited liability company doing
business as “GoVideo” (“Borrower”), Guarantor, Beneficiary, TCL INDUSTRIES (H.K.)
HOLDINGS LIMITED, a Hong Kong company and ASIA FOCUS INDUSTRIAL LTD., a Hong
Kong company, Borrower issued to Beneficiary a promissory note dated of even
date herewith (the “Note”), in the initial aggregate principal amount of
$1,000,000.  The aggregate principal
amount under the Note is subject to increase or decrease as set forth in the
Purchase Agreement.

 

B.                                     In
order to induce Beneficiary to accept the Note, Guarantor is delivering this
Guaranty.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, Guarantor hereby agrees as follows:

 

1.                                       Guaranty.

 

(a)                                  Guarantor
hereby guarantees as primary obligor and not merely as surety, to Beneficiary,
its successors and assigns, the full and faithful payment of all amounts owed
and performance of each and every one of the obligations, responsibilities and
undertakings to be carried out, performed or observed by Borrower under the
Note.

 

(b)                                 If
at any time Borrower, its successors or permitted assigns, fails, neglects or
refuses to pay amounts or perform any of its obligations, responsibilities or
undertakings as expressly provided pursuant to the terms and conditions of the
Note, then Guarantor shall pay such amounts or perform or cause to be performed
such obligation, responsibility or undertaking as required pursuant to the
terms and conditions of the Note.

 

2.                                       Absolute.  This Guaranty is irrevocable, absolute,
present and unconditional.  The obligations
of Guarantor under this Guaranty shall not be affected, reduced, modified or
impaired upon the happening from time to time of any of the following events,
whether or not with notice to (except as notice is otherwise expressly required
herein) or the consent of Guarantor:

 

(a)                                  The
failure to give notice to Guarantor of the occurrence of a default under the
terms and provisions of this Guaranty or the Note, as the case may be;

 

 

(b)                                 The
modification or amendment (in accordance with the terms of this Guaranty or the
Note) (whether material or otherwise) of any obligation, covenant or agreement
set forth herein or therein, as the case may be;

 

(c)                                  Any
failure, omission, delay by, or inability on the part of Beneficiary to assert
or exercise any right, power or remedy conferred on Beneficiary in this
Guaranty or the Note, as the case may be;

 

(d)                                 A
termination, dissolution, consolidation or merger of Borrower with or into any
other entity, the voluntary or involuntary liquidation, dissolution, sale or
other disposition of all or substantially all of Borrower’s assets, the
marshalling of Borrower’s assets and liabilities, the receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition with creditors, or readjustment of, or other similar
proceedings affecting Borrower, Guarantor, or any of the assets of either;

 

(e)                                  The
assignment (in accordance with the terms of this Guaranty or the Note, as the
case may be) of any right, title or interest of Beneficiary herein or therein
to any other person; or

 

(f)                                    Any
other cause or circumstance, foreseen or unforeseen, whether similar or
dissimilar to any of the foregoing; it being the intent of Guarantor that its
obligations hereunder shall not be discharged except by (i) payment of
amounts owing pursuant to this Guaranty and/or Note, and then only to the
extent of such payment or payments; or (ii) full performance of
obligations under this Guaranty and/or Note, then only to the extent of such
performed or discharged obligation or obligations.

 

3.                                       Guaranty of Payment.  The liability of Guarantor on this Guaranty
is a guaranty of payment and performance and not of collectibility, and is not
conditional or contingent on the genuineness, validity, regularity, or enforceability
of the Note or the pursuit by Beneficiary of any remedies that it now has or
may hereafter have with respect thereto.

 

4.                                       Authorization.  Guarantor hereby authorizes Beneficiary,
without notice or demand and without affecting its liability hereunder, and
without consent of Guarantor or prior notice to Guarantor, from time to time
to:

 

(a)                                  Make
any modifications to the Note with the consent of the parties thereto;

 

(b)                                 Assign
the Note and this Guaranty;

 

(c)                                  Take
and hold security for the performance of the obligations guaranteed herein with
the consent of the party providing such security; and

 

(d)                                 Accept
additional guarantors.

 

5.                                       Waiver and Release by Guarantor.

 

(a)                                  Guarantor
hereby waives the right to require Beneficiary to:

 

(i)                                     Proceed
or exhaust any security held from any person;

 

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(ii)                                  Proceed
against any other guarantor; or

 

(iii)                               Pursue
any other remedy available to Beneficiary.

 

(b)                                 Until
the obligations guaranteed hereby have been paid or otherwise discharged in
full, Guarantor does hereby waive all rights of subrogation and any right to
enforce any remedy which Beneficiary now has, or may have, against Borrower,
and Guarantor does hereby waive any benefit of, and any right to participate
in, any security now or hereafter held by Beneficiary.  Guarantor hereby waives any defense it may
have now or in the future based on any election of remedies by Beneficiary
which destroys Guarantor’s subrogation rights or Guarantor’s rights to proceed
against Borrower for reimbursement and Guarantor acknowledges that it will be
liable to Beneficiary even though Guarantor may well have no such recourse
against Borrower.

 

(c)                                  Guarantor
hereby waives notice of (i) acceptance and reliance on this Guaranty and (ii) notice
of default or demand in the case of default.

 

(d)                                 Guarantor
hereby waives any right or defense it may now or hereafter have based upon (i) Beneficiary’s
release of any party who may be obligated to Beneficiary; (ii) Beneficiary’s
release or impairment of any collateral for the obligations or agreements
guaranteed under this Guaranty; and (iii) the modification or extension of
the obligations or agreements guaranteed under this Guaranty.

 

(e)                                  Guarantor
hereby waives any and all suretyship defenses now or hereafter available to it
under the California Civil Code or the California Commercial Code.

 

(f)                                    Without
limiting the generality of any other waiver or other provision of this
Guaranty, Guarantor hereby waives, to the maximum extent such waiver is
permitted by law, any and all benefits or defenses arising directly or
indirectly under any one or more of:  (i) California
Civil Code Sections 2809, 2810, 2815, 2819, 2839, 2845, 2847, 2848, 2849, 2850,
2899 and 3433; (ii) Chapter 2 of Title 14 of the California Civil Code; (iii) California
Code of Civil Procedure Sections 580a, 580b, 580c, 580d and 726; or (iv) California
Commercial Code 3605.

 

(g)                                 Guarantor
hereby waives any duty on the part of Beneficiary to disclose to Guarantor any
facts Beneficiary may now or hereafter know about Borrower or Borrower
financial condition regardless of whether Beneficiary has reason to believe
that any such facts materially increase the risk beyond that which Guarantor
intends to assume, or has reason to believe that such facts are unknown to
Guarantor, or has a reasonable opportunity to communicate such facts to
Guarantor.

 

6.                                       Cessation of Liability.  The liability of Guarantor hereunder shall
not in any way be affected by the cessation of the liability of Borrower for
any reason other than full performance of all the obligations under the Note;
including, without limitation, any and all obligations to indemnify
Beneficiary.

 

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7.                                       Information.  Guarantor hereby represents that Guarantor is
fully aware of the financial condition and operation of Borrower and is in a
position by virtue of its relationship to Borrower to obtain all necessary
financial and operational information concerning Borrower.  Beneficiary need not disclose to Guarantor
any information about:

 

(a)                                  The
Note or any modification thereto, and any action or non-action in connection
therewith;

 

(b)                                 Any
other obligation guaranteed hereby;

 

(c)                                  The
financial condition or operation of Borrower; or

 

(d)                                 Any
other guaranties.

 

8.                                       Subordination.  Until the obligations guaranteed hereby have
been paid or otherwise discharged in full, Guarantor does hereby subordinate
any and all liability or indebtedness of Borrower owed to Guarantor to the
obligations of Borrower to Beneficiary which arise under the Note.

 

9.                                       Effect of Borrower’s Bankruptcy.  The liability of the Guarantor under this
Guaranty shall in no way be affected by:

 

(a)                                  The
release or discharge of Borrower in any creditor proceeding, receivership,
bankruptcy, or other proceeding;

 

(b)                                 The
impairment, limitation, or modification of the liability of Borrower or the
estate of Borrower, or of any remedy for the enforcement of Borrower’s
liability, which may result from the operation of any present or future provision
of the Bankruptcy Code (Title 11 of the United States Code, as amended; 11 USC
§§101 1301) or any bankruptcy, insolvency, debtor relief statute (state or
federal), or any other statute, or from the decision of any court;

 

(c)                                  The
rejection or disaffirmance of the indebtedness, or any portion of the
indebtedness, in any such proceeding; or

 

(d)                                 The
cessation, from any cause whatsoever, whether consensual or by operation of
law, of the liability of Borrower to Beneficiary resulting from any such
proceeding.

 

10.                                 Claims in Bankruptcy.  Guarantor will file all claims against
Borrower in any bankruptcy or other proceeding in which the filing of claims is
required by law on any indebtedness of Borrower to Guarantor, and will assign
to Beneficiary all rights of Guarantor on any such indebtedness. If Guarantor
does not file any such claim, Beneficiary, as attorney-in-fact for Guarantor,
is authorized to do so in the name of Guarantor, or, in Beneficiary’s
discretion, to assign the claim and to file a proof of claim in the name of
Beneficiary’s nominee. In all such cases, whether in bankruptcy or otherwise,
the person or persons authorized to pay such claim shall pay to Beneficiary the
full amount of any such claim, and, to the full extent necessary for that purpose,
Guarantor assigns to Beneficiary all of Guarantor’s rights to any such payments
or distributions to which Guarantor would otherwise be entitled.

 

4

 

11.                                 Revival of Guaranty.  All obligations of Guarantor under this
Guaranty shall remain in full force and effect notwithstanding any termination
of this Guaranty or the cancellation of any note or other document evidencing
any obligation guaranteed hereunder until such time that payment and
performance of such obligations has indefeasibly vested in Beneficiary.

 

12.                                 Miscellaneous.

 

(a)                                  Notices.  All notices, demands, or requests from one
party to another shall, unless otherwise specified herein, be delivered
personally, sent by mail, certified or registered, return receipt requested,
sent by overnight courier or sent by facsimile, to the persons and addresses
identified below.  Any such notice,
demand or request shall be deemed to have been received when personally delivered,
five (5) days after mailing, the day after deposit with an overnight
courier, or upon delivery by facsimile in the manner set forth below:

 

	
  GUARANTOR:

  	
  Opta Corporation

  
	
   

  	
  1350 Bayshore Highway, Suite 740

  
	
   

  	
  Burlingame, CA 94010

  
	
   

  	
  Attn: Chief Executive
  Officer

  
	
   

  	
  Facsimile: (650)
  579-3606

  
	
   

  	
   

  
	
  BENEFICIARY:

  	
  TCL Multimedia
  Technology Holdings Limited

  
	
   

  	
  13/F, TCL Tower

  
	
   

  	
  8 Tai Chung Road

  
	
   

  	
  Tsuen Wan, N.T., Hong
  Kong

  
	
   

  	
  Attn: Chairman

  
	
   

  	
  Facsimile: (852)
  2405-8411

  

 

or at such other address as such party may designate
by ten (10) days’ advance written notice to the other parties pursuant to
this paragraph.

 

(b)                                 No
Waiver.  Failure or delay by
Beneficiary or its assigns in exercising any right, power or privilege
hereunder shall not operate as a waiver thereof; nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.

 

(c)                                  California
Law.  This Guaranty shall be deemed
to be a contract made under and shall be construed in accordance with and
governed by the laws of the State of California.

 

(d)                                 Advice
of Counsel.  Guarantor expressly
declares that it knows and understands the contents of this Guaranty and has
had an opportunity to consult with an attorney regarding its form and content.

 

(e)                                  Assignability.  This Guaranty shall be binding upon Guarantor
and Guarantor’s representatives, successors and assigns and shall inure to the
benefit of Beneficiary, its successors and assigns, and their successors and
assigns and respective personal representatives, successors and assigns
according to the context hereof, except that Guarantor shall not have the right
to assign the obligations contained in this Guaranty.

 

5

 

(f)                                    Severability.  If any provision hereof is invalid and unenforceable
in any jurisdiction, then, to the fullest extent permitted by law, (i) the
other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in favor of Beneficiary in order
to carry out the intentions of the parties hereto as nearly as may be possible
and (ii) the invalidity or unenforceability of any provision hereof in any
jurisdiction shall not affect the validity or enforceability of such provision
in any other jurisdiction.

 

(g)                                 Entire
Agreement.  This Guaranty embodies
the entire agreement and understanding between Guarantor and Beneficiary
pertaining to the subject matter of this Guaranty, and supersedes all prior
agreements, understandings, negotiations, representations and discussions,
whether verbal or written, of the parties, pertaining to that subject matter.

 

(h)                                 Further
Assurances.  Guarantor will promptly
and duly execute and deliver to Beneficiary such further documents and
assurances and take such further action as Beneficiary may from time to time
reasonably request including, without limitation, any amendments hereto in
order to establish and protect the rights, interests and remedies created or
intended to be created in favor of Beneficiary hereunder.

 

(i)                                     Cumulative
Rights.  The extent of Guarantor’s
liability and all rights, powers, and remedies of Beneficiary hereunder and
under any other agreement now or at any time hereafter in force between
Beneficiary and Guarantor, shall be cumulative and not alternative, and such
rights, powers, and remedies shall be in addition to all rights, powers, and
remedies given to Beneficiary by law. This Guaranty is in addition to and
exclusive of the guaranty of any other guarantor of any indebtedness of
Borrower to Beneficiary.

 

[Reminder of this page left
intentionally blank.]

 

6

 

IN WITNESS WHEREOF, the undersigned Guarantor has
caused this Guaranty to be duly executed as of the day and year first above
written.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
  Opta Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Wang,
  Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
  ACCEPTED AND
  ACKNOWLEDGED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated: July 26,
  2005

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TCL Multimedia
  Technology Holdings Limited

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Li Dong
  Sheng, Chairman

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