Document:

EX-10.94

  Exhibit 10.94

   

  GUARANTY

  This Guaranty (“Guaranty”), dated as of January 20, 2022, is made by Precision Affiliated Holdings LLC, a Delaware limited liability company (the “Guarantor”), for the benefit of Fifth Third Bank, National Association (with its participants, successors and permitted assigns, “Lender”).

  Lender and Precision Industries, Inc., a Pennsylvania corporation (“Borrower”) are parties to a Credit and Security Agreement of even date herewith (as the same may be amended, supplemented or restated from time to time, the “Credit Agreement”) pursuant to which Lender may make advances and extend other financial accommodations to the Borrower. 

  As a condition to extending such credit to the Borrower, Lender has required the execution and delivery of this Guaranty.

  ACCORDINGLY, the Guarantor, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby agrees as follows:

  1.Definitions. All terms defined in the Credit Agreement that are not otherwise defined herein shall have the meanings given them in the Credit Agreement.

  2.Obligations Guaranteed. The Guarantor hereby absolutely and unconditionally guarantees to Lender the full and prompt payment and performance when due, whether at maturity or earlier by reason of acceleration or otherwise, of the Obligations.

  3.Guarantor’s Representations and Warranties. The Guarantor represents and warrants to Lender that (a) the Guarantor is duly incorporated or organized as applicable and existing in good standing under the laws of the jurisdiction of its incorporation or organization, the Guarantor is duly qualified and in good standing in all states where the nature and extent of the business transacted by Guarantor or the ownership of Guarantor’s assets make such qualification necessary or, if Guarantor is not so qualified, Guarantor may cure any such failure without losing any of its rights, incurring any liens or material penalties, or otherwise affecting Lender’s rights, and the Guarantor has full power and authority to make and deliver this Guaranty; (b) the execution, delivery and performance of this Guaranty by the Guarantor have been duly authorized and does not and will not violate the provisions of, or constitute a default under, any presently applicable law or its constituent documents or any agreement presently binding on it, except for conflicts with agreements, contracts or other documents which would not have a Material Adverse Effect; (c) this Guaranty has been duly executed and delivered by the authorized officers of the Guarantor and is the legal, valid and binding obligation of Guarantor and is enforceable against Guarantor in accordance with its terms subject to limitations as to enforceability which might result from bankruptcy, insolvency, moratorium and other similar laws affecting creditors’ rights generally and subject to limitations on the availability of equitable remedies; (d) the authorization, 

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  execution, delivery and performance of this Guaranty do not require notification to, registration with, or consent or approval by, any federal, state or local regulatory body or administrative agency and (e) neither the Guarantor nor any of its Subsidiaries is an “investment company”, as such term is defined in the Investment Company Act of 1940 (the “1940 Act”), nor is subject to any regulation under the 1940 Act. The Guarantor represents and warrants to Lender that the Guarantor has a direct and substantial economic interest in the Borrower and expects to derive substantial benefits therefrom and from any loans, credit transactions, financial accommodations, discounts, purchases of property and other transactions and events resulting in the creation of the Obligations guarantied hereby, and that this Guaranty is given for a corporate purpose. Lender may rely conclusively on a continuing warranty, hereby made, that the Guarantor continues to be benefited by this Guaranty and Lender shall have no duty to inquire into or confirm the receipt of any such benefits, and this Guaranty shall be effective and enforceable by Lender without regard to the receipt, nature or value of any such benefits.

  4.Unconditional Nature. No act or thing need occur to establish the Guarantor’s liability hereunder, and no act or thing, except full payment, performance, and discharge of all of the Obligations (other than contingent Obligations which expressly survive termination of this Agreement and for which no claim has been made), shall in any way exonerate the Guarantor hereunder or modify, reduce, limit or release the Guarantor’s liability hereunder. This is an absolute, unconditional and continuing guaranty of payment and performance of the Obligations and shall continue to be in force and be binding upon the Guarantor, until all of the Obligations are paid in full (other than contingent Obligations which expressly survive termination of this Agreement and for which no claim has been made), at which time, subject to Section 10, this Guaranty shall immediately and automatically terminate, without the consent of or action by any other Person. 

  5.Dissolution or Insolvency of Guarantor. The dissolution or adjudication of bankruptcy of the Guarantor will not revoke this Guaranty, except upon actual receipt of written notice thereof by Lender and only prospectively, as to future transactions, as herein set forth. If the Guarantor dissolves or becomes insolvent (however defined), then Lender will have the right to declare immediately due and payable, and the Guarantor shall pay to Lender the full amount of all of the Obligations, whether due and payable or unmatured. If the Guarantor voluntarily commences or there is commenced involuntarily against the Guarantor a case under the United States Bankruptcy Code, the full amount of all Obligations, whether due and payable or unmatured, will be immediately due and payable without demand or notice thereof.

  6.Subrogation, etc. The Guarantor hereby waives all rights that the Guarantor may now have or hereafter acquire, whether by subrogation, contribution, reimbursement, recourse, exoneration, contract or otherwise, to recover from the Borrower or from any property of the Borrower any sums paid under this Guaranty, unless and until Lender shall have received payment in full of all of the Obligations (other than contingent Obligations which expressly survive termination of this Agreement and for which no claim has been made). The Guarantor will not exercise or enforce any right of contribution to recover any such sums from any person who is a co-obligor with the Borrower or a guarantor or surety of the Obligations or from any property of any such person until all of the Obligations shall have been fully paid and discharged (other than contingent Obligations which expressly survive termination of this Agreement and for which no claim has been made).

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  7.Enforcement Expenses. The Guarantor will pay or reimburse Lender for all costs, expenses and reasonable and documented outside attorneys’ fees paid or incurred by Lender in endeavoring to collect and enforce the Obligations and in enforcing this Guaranty.

  8.Lender’s Rights. Lender shall not be obligated by reason of its acceptance of this Guaranty to engage in any transactions with or for the Borrower. Whether or not any existing relationship between the Guarantor and the Borrower has been changed or ended and whether or not this Guaranty has been revoked, Lender may enter into transactions resulting in the creation or continuance of the Obligations and may otherwise agree, consent to or suffer the creation or continuance of any of the Obligations, without any consent or approval by the Guarantor and without any prior or subsequent notice to the Guarantor. The Guarantor’s liability shall not be affected or impaired by any of the following acts or things (which Lender is expressly authorized to do, omit or suffer from time to time, both before and after revocation of this Guaranty, without consent or approval by or notice to the Guarantor): (a) any acceptance of collateral security, guarantors, accommodation parties or sureties for any or all of the Obligations; (b) one or more extensions or renewals of the Obligations (whether or not for longer than the original period) or any modification of the interest rates, maturities, if any, or other contractual terms applicable to any of the Obligations or any amendment or modification of any of the terms or provisions of any loan agreement or other agreement under which the Obligations or any part thereof arose; (c) any waiver or indulgence granted to the Borrower, any delay or lack of diligence in the enforcement of the Obligations or any failure to institute proceedings, file a claim, give any required notices or otherwise protect any of the Obligations; (d) any full or partial release of, compromise or settlement with, or agreement not to sue, the Borrower or any guarantor or other person liable in respect of any of the Obligations; (e) any release, surrender, cancellation or other discharge of any evidence of the Obligations or the acceptance of any instrument in renewal or substitution therefor; (f) any failure to obtain collateral security (including rights of setoff) for the Obligations, or to see to the proper or sufficient creation and perfection thereof, or to establish the priority thereof, or to preserve, protect, insure, care for, exercise or enforce any collateral security; or any modification, alteration, substitution, exchange, surrender, cancellation, termination, release or other change, impairment, limitation, loss or discharge of any collateral security; (g) any collection, sale, lease or disposition of, or any other foreclosure or enforcement of or realization on, any collateral security; (h) any assignment, pledge or other transfer of any of the Obligations or any evidence thereof; (i) any manner, order or method of application of any payments or credits upon the Obligations; and (j) any election by Lender under Section 1111(b) of the United States Bankruptcy Code. Subject to Section 9, the Guarantor waives any and all defenses and discharges available to a surety, guarantor or accommodation co-obligor.

  9.Waivers by Guarantor. The Guarantor waives any and all defenses, claims, setoffs and discharges of the Borrower, or any other obligor, pertaining to the Obligations, except the defense of discharge by payment in full of the Obligations. Without limiting the generality of the foregoing, the Guarantor will not assert, plead or enforce against Lender any defense of waiver, release, discharge or disallowance in bankruptcy, statute of limitations, res judicata, statute of frauds, anti-deficiency statute, fraud, incapacity, minority, usury, illegality or unenforceability which may be available to the Borrower or any other person liable in respect of any of the Obligations, or any setoff available against Lender to the Borrower or any other such person. The Guarantor expressly agrees that the Guarantor shall be and remain liable for any deficiency remaining after foreclosure of any mortgage or security interest securing the Obligations, whether 

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  or not the liability of the Borrower or any other obligor for such deficiency is discharged pursuant to statute or judicial decision. The liability of the Guarantor shall not be affected or impaired by any voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all of the assets, marshalling of assets and liabilities, receivership, insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of, or other similar event or proceeding affecting, the Borrower or any of its assets. Except as expressly set forth herein, the Guarantor will not assert, plead or enforce against Lender any claim, defense or setoff available to the Guarantor against the Borrower. The Guarantor waives presentment, demand for payment, notice of dishonor or nonpayment and protest of any instrument evidencing the Obligations. Lender shall not be required first to resort for payment of the Obligations to the Borrower or other persons, or their properties, or first to enforce, realize upon or exhaust any collateral security for the Obligations, before enforcing this Guaranty.

  10.If Payments Set Aside, etc. If any payment applied by Lender to the Obligations is thereafter set aside, recovered, rescinded or required to be returned for any reason (including, without limitation, the bankruptcy, insolvency or reorganization of the Borrower or any other obligor), the Obligations to which such payment was applied shall for the purpose of this Guaranty be deemed to have continued in existence, notwithstanding such application, and this Guaranty shall be enforceable as to such Obligations as fully as if such application had never been made.

  11.Additional Obligations of Guarantor. The Guarantor’s liability under this Guaranty is in addition to and shall be cumulative with all other liabilities of the Guarantor to Lender as guarantor, surety, endorser, accommodation co-obligor or otherwise of any of the Obligations or obligation of the Borrower, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary.  Guarantor hereby covenants and agrees to not engage in any business activities, hold any assets or incur any Indebtedness other than (a) acting as a holding company for Borrower and transactions incidental thereto, (b) entering into the Loan Documents, the Management Agreement and the Subordinated Debt Documents, (c) entering into the agreements related to and consummating the acquisition by the Guarantor of the Borrower, (d) receiving and distributing the dividends, distributions and payments permitted to be made to Holdings pursuant to Section 11.05 of the Credit Agreement, and (e) owning the Equity Interests of Borrower. Guarantor shall preserve, renew and keep in full force and effect its existence. Guarantor shall not merge or consolidate with or into any other Person or transfer the Equity Interests of Borrower to any Person.

  12.Financial Information. The Guarantor will deliver to Lender all financial information concerning the Guarantor (but excluding financial statements) as may be reasonably requested from time to time by Lender.

  13.No Duties Owed by Lender. The Guarantor acknowledges and agrees that Lender (a) has not made any representations or warranties with respect to, (b) does not assume any responsibility to the Guarantor for, and (c) has no duty to provide information to the Guarantor regarding, the enforceability of any of the Obligations or the financial condition of the Borrower or any guarantor. The Guarantor has independently determined the creditworthiness of the Borrower and the enforceability of the Obligations and until the Obligations is paid in full will independently and without reliance on Lender continue to make such determinations.

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  14.Notices.  All written notices and other written communications with respect to this Guaranty shall be sent by ordinary, certified or overnight mail, by email, or delivered in person, to the following addresses or email addresses:

  Guarantor:	Precision Affiliated Holdings LLC

  	99 Berry Road

  	Washington, PA 15301
Attn: Eric Althofer

   

  With a copy to:

   

  K&L Gates LLP

  300 South Tryon Street, Suite 1000

  Charlotte, North Carolina 28202

  Attn: Aaron S. Rothman, Esq.

  Email: Aaron.Rothman@klgates.com

   

  Lender:	Fifth Third Bank, National Association 

  6111 N. River Road

  Rosemont, IL 60018

  Attn: Mr. Richard Sitz

  Email: Richard.Sitz@53.com

   

  With a copy to:

   

  Thompson Coburn LLP

  55 E. Monroe Street, 37th Floor

  Chicago, Illinois 60603

  Attn: Mr. Victor A. DesLaurier, Esq.

  Email:  vdeslaurier@thompsoncoburn.com

   

  Guarantor agrees that notices and other communications to it hereunder may be delivered or furnished by electronic communication (including e‐mail and Internet or intranet websites) pursuant to procedures approved by Lender and such electronic communication shall have the same force and effect that the same submissions would have had if they had been submitted in any other applicable form authorized, required or contemplated by this Guaranty.  All notices shall be deemed received upon actual receipt thereof or refusal of delivery.

  15.Miscellaneous. This Guaranty shall be effective upon execution by all parties hereto, shall be binding upon the Guarantor and the successors and assigns of the Guarantor and shall inure to the benefit of Lender and its participants, successors and assigns. Any invalidity or unenforceability of any provision or application of this Guaranty shall not affect other lawful provisions and application thereof, and to this end the provisions of this Guaranty are declared to be severable. This Guaranty may not be waived, modified, amended, terminated, released or otherwise changed except by a writing signed by the Guarantor and Lender. This Guaranty shall be governed by and construed in accordance with the substantive laws (other than conflict laws) of the State of Illinois.  The Guarantor hereby (a) consents to the personal jurisdiction of the state 

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  and federal courts located in the State of Illinois, in connection with any controversy related to this Guaranty; (b) waives any argument that venue in any such forum is not convenient, (c) agrees that any litigation initiated by Lender or the Guarantor in connection with this Guaranty may be venued in either the state or federal courts located in the City of Chicago, Illinois; and (d) agrees that a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

  16.Waiver of Jury Trial. THE GUARANTOR AND THE LENDER EACH IRREVOCABLY WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF, BASED ON OR PERTAINING TO THIS GUARANTY.

  [Signature page to follow]

   

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  This Guaranty has been duly executed by the Guarantor as of the date set forth above.

  Precision Affiliated Holdings LLC,

  a Delaware limited liability company

   

  By: ______________________________

  Name: _____________________________

  Title: ______________________________

   

   

   

   DOCPROPERTY "DocID" \* MERGEFORMAT 567930313.4

  

  Acknowledged and Agreed:

   

  Lender: 

   

  FIFTH THIRD BANK, NATIONAL ASSOCIATION

   

   

  By: ______________________

  Name: ___________________

  Title: ____________________

   DOCPROPERTY "DocID" \* MERGEFORMAT 567930313.4EX-10.95

   

  Exhibit 10.95

   

  GUARANTOR SECURITY AGREEMENT

  This Guarantor Security Agreement, dated as of January 20, 2022 (“Agreement”), is made by and between Precision Affiliated Holdings LLC, a Delaware limited liability company (the “Guarantor”), and Fifth Third Bank, National Association (“Lender”).

  Pursuant to a Credit and Security Agreement of even date herewith (as the same may be amended, supplemented or restated from time to time, the “Credit Agreement”), Lender may extend credit accommodations to Precision Industries, Inc., a Pennsylvania corporation (the “Borrower”).

  As a condition to extending credit to the Borrower, Lender has required the execution and delivery of the Guarantor’s Guaranty of even date herewith, guaranteeing the payment and performance of all obligations of the Borrower arising under or pursuant to the Credit Agreement (the “Guaranty”).

  As a further condition to extending credit to the Borrower under the Credit Agreement, Lender has required the execution and delivery of this Agreement by the Guarantor.

  In consideration of the mutual covenants contained in the Credit Agreement, the Guaranty and herein, the parties hereby agree as follows:

  1.Definitions. All terms defined in the recitals hereto and the Credit Agreement that are not otherwise defined herein shall have the meanings given them in the recitals and the Credit Agreement. All terms defined in the UCC and not otherwise defined herein have the meanings assigned to them in the UCC. In addition, the following terms have the meanings set forth below or in the referenced Section of this Agreement:

  “Collateral” means, whether now owned or existing or hereafter acquired or arising or in which the Guarantor now has or hereafter acquires any rights, all of the Guarantor’s Accounts, chattel paper, deposit accounts, documents, Equipment, General Intangibles, goods, instruments, Inventory, Investment Property, letter-of-credit rights, letters of credit, all sums on deposit in any Collection Account, and any items in any Lockbox; together with (i) all substitutions and replacements for and products of any of the foregoing; (ii) in the case of all goods, all accessions; (iii) all accessories, attachments, parts, equipment and repairs now or hereafter attached or affixed to or used in connection with any goods; (iv) all warehouse receipts, bills of lading and other documents of title now or hereafter covering such goods; (v) all collateral subject to the Lien of Lender; (vi) any money, or other assets of the Guarantor that now or hereafter come into the possession, custody, or control of Lender; and (vii) proceeds of any and all of the foregoing.

  “Event of Default” has the meaning given in Section 6.

  “Intellectual Property Rights” means all actual or prospective rights arising in connection with any intellectual property or other proprietary rights, including all rights arising in connection with copyrights, patents, service marks, trade dress, trade secrets, trademarks, trade names or mask works.

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  “Permitted Liens” means (i) the Security Interest, (ii) covenants, restrictions, rights, easements and minor irregularities in title which do not materially interfere with the Guarantor’s business or operations as presently conducted, (iii) Liens in existence on the date hereof and described on Exhibit C hereto, (iv) Liens or security interests in favor of Lender, (v) Liens specifically permitted by Lender in writing, (vi) involuntary Liens securing amounts less than $250,000 and which are released or for which a bond acceptable to Lender, in its sole discretion, has been posted within ten (10) days of its creation, (vii) Liens for taxes, assessments and other government charges or levies not yet due and payable or which are being contested in good faith and by appropriate proceedings and for which the Guarantor has maintained adequate reserves in accordance with GAAP, (viii) Liens of collecting banks under the UCC on items in the course of collection, statutory Liens and rights of set-off of banks, (ix) pledges and deposits in the ordinary course of business securing insurance premiums or reimbursement obligations or indemnification obligations under insurance policies or self-insurance arrangements, in each case payable to insurance carriers that provide insurance to the Guarantor or any or any Subsidiary of the Guarantor, and (x) Liens on cash and cash equivalents on deposit with Lender and Affiliates of Lender securing obligations owing to such Persons under any treasury, depository, overdraft or other cash management services agreements or arrangements with the Guarantor or any Subsidiary of Guarantor.

  “Security Interest” has the meaning given in Section 2.

  “UCC” means the Uniform Commercial Code as in effect from time to time in the State of Illinois.

  2.Security Interest. The Guarantor hereby grants Lender a security interest (the “Security Interest”) in the Collateral to secure payment of the Obligations.

  3.Representations, Warranties and Agreements. The Guarantor hereby represents, warrants and agrees as follows:

  (a)Title. The Guarantor (i) has absolute title to each item of Collateral in existence on the date hereof, free and clear of all Liens except the Permitted Liens, (ii) will have, at the time the Guarantor acquires any rights in Collateral hereafter arising, absolute title to each such item of Collateral free and clear of all Liens except Permitted Liens and (iii) will keep all Collateral free and clear of all Liens except Permitted Liens. The Guarantor will not sell or otherwise dispose of the Collateral or any interest therein, outside the ordinary course of business, without the prior written consent of Lender.

  (b)Chief Executive Office; Identification Number. The Guarantor’s chief executive office and principal place of business is located at the address set forth under its signature below. The Guarantor’s federal employer identification number and organization identification number is correctly set forth under its signature below.

  (c)Location of Collateral. As of the date hereof, the tangible Collateral is located only in the states and at the address, as identified on Exhibit A attached hereto. The Guarantor will not permit any tangible Collateral to be located in any state (and, if county 

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  filing is required, in any county) in which a financing statement covering such Collateral is required to be, but has not in fact been, filed in order to perfect the Security Interest.

  (d)Changes in Name, Constituent Documents, Location. The Guarantor shall not amend its organizational documents in an manner adverse to the Lender’s interest in any respect unless (a) such amendment would not have a Material Adverse Effect; (b) such amendment would not adversely affect Lender; and (c) Lender has received ten (10) days prior written notice of such amendment. The Guarantor will not change its name, business address or jurisdiction of organization, without prior written notice to Lender.

  (e)Fixtures. The Guarantor will not permit any tangible Collateral to become part of or to be affixed to any real property without first assuring to the reasonable satisfaction of Lender that the Security Interest will be prior and senior to any Lien then held or thereafter acquired by any mortgagee of such real property or the owner or purchaser of any interest therein. If any part or all of the tangible Collateral is now or will become so related to particular real estate as to be a fixture, the real estate concerned and the name of the record owner are accurately set forth in Exhibit B hereto.

  (f)Rights to Payment. Each right to payment and each instrument, document, chattel paper and other agreement constituting or evidencing Collateral is (or will be when arising, issued or assigned to Lender) the valid, genuine and legally enforceable obligation, subject to no defense, setoff or counterclaim (other than those arising in the ordinary course of business), of the account debtor or other obligor named therein or in the Guarantor’s records pertaining thereto as being obligated to pay such obligation. The Guarantor will neither agree to any material modification or amendment nor agree to any forbearance, release or cancellation of any such obligation, and will not subordinate any such right to payment to claims of other creditors of such account debtor or other obligor.

  (g)Commercial Tort Claims. Promptly upon knowledge thereof, the Guarantor will deliver to Lender notice of any commercial tort claims it may bring in an aggregate value in excess of $100,000 against any Person, including the name and address of each defendant, a summary of the facts, an estimate of the Guarantor’s damages, copies of any complaint or demand letter submitted by the Guarantor, and such other information as Lender may request. Upon request by Lender, the Guarantor will grant Lender a security interest in all commercial tort claims it may have against any Person.

  (h)Miscellaneous Covenants. The Guarantor will:

  (i)keep all tangible Collateral in good condition, repair and order, ordinary wear and tear excepted, and shall make all required repairs to the Equipment and replacements thereof in a manner that Guarantor reasonably believes will cause the operating efficiency and the value thereof to be preserved and maintained in all material respects;

  (ii)promptly pay all taxes and other governmental charges levied or assessed upon or against any Collateral or upon or against the creation, perfection 

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  or continuance of the Security Interest; provided, that Guarantor shall have the right to contest the payment of such taxes in good faith by appropriate proceedings, pursuant to the conditions set forth in Section 10.08 of the Credit Agreement;

  (iii)permit Lender, or any Persons designated by it, upon reasonable advance notice to Guarantor if no Default Period then exists, to call at Guarantor’s places of business at any reasonable times, and, without hindrance or delay, to inspect the Collateral and to inspect, audit, check and make extracts from Guarantor’s books, records, journals, orders, receipts and any correspondence and other data relating to Guarantor’s business, the Collateral or any transactions between the parties hereto, and shall have the right to make such verification concerning Guarantor’s business as Lender may consider reasonable under the circumstances. Guarantor shall furnish to Lender such information relevant to Lender’s rights under the Loan Documents as Lender shall at any time and from time to time reasonably request. Lender, through its officers, employees or agents shall have the right, at any time and from time to time, in Lender’s name, to verify the validity, amount or any other matter relating to any of Guarantor’s Accounts, by mail, telephone, telecopy, electronic mail, or otherwise, provided that prior to the occurrence of an Event of Default, Lender shall conduct such verification in the name of a nominee of Lender or in Guarantor’s name;

  (iv)keep accurate and complete records pertaining to the Collateral and pertaining to the Guarantor’s business and financial condition and submit to Lender such periodic reports concerning the Collateral and the Guarantor’s business and financial condition as Lender may from time to time reasonably request;

  (v)promptly notify Lender of any loss of or material damage to any Collateral or of any adverse change, known to the Guarantor, in the prospect of payment of any sums due on or under any instrument, chattel paper, or account constituting Collateral;

  (vi)if Lender at any time so requests (after the occurrence and during the continuance of an Event of Default), promptly deliver to Lender any instrument, document or chattel paper constituting Collateral, duly endorsed or assigned by the Guarantor;

  (vii)at all times keep all tangible Collateral insured against risks of fire (including so-called extended coverage), theft, collision (in case of Collateral consisting of motor vehicles) and such other risks and in such amounts as Lender may reasonably request, and all policies of such insurance shall contain a lender’s loss payable endorsement for the Lender’s benefit or an endorsement showing Lender as additional insured;

  (viii)from time to time authorize or execute such financing statements as Lender may reasonably require in order to perfect the Security Interest and, if any Collateral consists of a motor vehicle, execute such documents as may be required to have the Security Interest properly noted on a certificate of title;

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  (ix)pay when due or reimburse Lender on demand for all costs of collection of any of the Obligations and all other reasonable and documented costs and expenses (including in each case all reasonable attorneys’ fees for outside counsel) incurred by Lender in connection with the creation, perfection, satisfaction, protection, defense or enforcement of the Security Interest or the creation, continuance, protection, defense or enforcement of this Agreement or any or all of the Obligations, including expenses incurred in any litigation or bankruptcy or insolvency proceedings;

  (x)authorize, execute, deliver or endorse any and all instruments, documents, assignments, security agreements and other agreements and writings which Lender may at any time reasonably request in order to secure, protect or perfect the Security Interest and Lender’s rights under this Agreement; and

  (xi)not use or keep any Collateral, or permit it to be used or kept, for any unlawful purpose or in violation of any federal, state or local law, statute or ordinance.

  (i)Lender’s Right to Take Action. The Guarantor authorizes Lender to file from time to time where permitted by law, such financing statements against collateral described as “all personal property” as Lender deems necessary or useful to perfect the Security Interest. The Guarantor will not amend any financing statements in favor of Lender except as permitted by law. Further, if the Guarantor at any time fails to perform or observe any agreement contained in Section 3(h), and if such failure continues for a period of ten (10) days after Lender gives the Guarantor written notice thereof (or, in the case of the agreements contained in clauses (vii) and (viii) of Section 3(h), immediately upon the occurrence of such failure, without notice or lapse of time), Lender may (but need not) perform or observe such agreement on behalf and in the name, place and stead of the Guarantor (or, at Lender’s option, in Lender’s own name) and may (but need not) take any and all other actions which Lender may reasonably deem necessary to cure or correct such failure (including, without limitation the payment of taxes, the satisfaction of security interests, liens, or encumbrances, the performance of obligations under contracts or agreements with account debtors or other obligors, the procurement and maintenance of insurance, the execution of financing statements, the endorsement of instruments, the qualification and licensing of the Guarantor to do business in any jurisdiction, and the procurement of repairs or transportation); and, except to the extent that the effect of such payment would be to render any loan or forbearance of money usurious or otherwise illegal under any applicable law, the Guarantor shall thereupon pay Lender on demand the amount of all moneys expended and all reasonable and documented costs and expenses (including reasonable and documented outside attorneys’ fees) incurred by Lender in connection with or as a result of Lender’s performing or observing such agreements or taking such actions, together with interest thereon from the date expended or incurred by Lender at the highest rate then applicable to any of the Obligations. To facilitate the performance or observance by Lender of such agreements of the Guarantor, the Guarantor hereby irrevocably appoints (which appointment is coupled with an interest) Lender, or its delegate, as the attorney-in-fact of the Guarantor with the right (but not the duty) from time to time to create, prepare, complete, execute, deliver, endorse or file, in the name and on behalf of the Guarantor, any and all instruments, documents, financing statements, applications for insurance and other 

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  agreements and writings required to be obtained, executed, delivered or endorsed by the Guarantor under this Section 3 and Section 4.

  4.Rights of Lender. At any time and from time to time, whether before or after an Event of Default, Lender may take any or all of the following actions:

  (a)Account Verification. Lender may at any time and from time to time send or require the Guarantor to send requests for verification of accounts or notices of assignment to account debtors and other obligors. Lender may also at any time and from time to time telephone account debtors and other obligors to verify accounts.

  (b)Collection Account. Lender may establish a collateral account for the deposit of checks, drafts and cash payments made by the Guarantor’s account debtors. If a collateral account is so established, the Guarantor shall promptly deliver to Lender, for deposit into said collateral account, all payments on Accounts and chattel paper received by it. All such payments shall be delivered to Lender in the form received (except for the Guarantor’s endorsement where necessary). Until so deposited, all payments on Accounts and chattel paper received by the Guarantor shall be held in trust by the Guarantor for and as the property of Lender and shall not be commingled with any funds or property of the Guarantor. All deposits in said collateral account shall constitute proceeds of Collateral and shall not constitute payment of any Obligation. Unless otherwise agreed in writing, the Guarantor shall have no right to withdraw amounts on deposit in any collateral account.

  (c)[Reserved].

  (d)Direct Collection. Lender may notify any account debtor, or any other Person obligated to pay any amount due, that such chattel paper, Account, or other right to payment has been assigned or transferred to Lender for security and shall be paid directly to Lender. At any time after Lender or the Guarantor gives such notice to an account debtor or other obligor, Lender may (but need not), in its own name or in the Guarantor’s name, demand, sue for, collect or receive any money or property at any time payable or receivable on account of, or securing, any such chattel paper, Account, or other right to payment, or grant any extension to, make any compromise or settlement with or otherwise agree to waive, modify, amend or change the obligations (including collateral obligations) of any such account debtor or other obligor.

  5.Assignment of Insurance. The Guarantor hereby assigns to Lender, as additional security for the payment of the Obligations, any and all moneys (including but not limited to proceeds of insurance and refunds of unearned premiums) due or to become due under, and all other rights of the Guarantor under or with respect to, any and all policies of insurance covering the Collateral, and the Guarantor hereby directs the issuer of any such policy to pay any such moneys directly to Lender. After the occurrence of an Event of Default, Lender may (but need not), in its own name or in the Guarantor’s name, execute and deliver proofs of claim, receive all such moneys, endorse checks and other instruments representing payment of such moneys, and adjust, litigate, compromise or release any claim against the issuer of any such policy.

  6.Events of Default. Each of the following occurrences shall constitute an event of default under this Agreement (herein called “Event of Default”):  (i) an Event of Default shall 

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  occur under the Credit Agreement; or (ii) the Guarantor shall fail to pay any or all of the Obligations when due or (if payable on demand) on demand; or (iii) the Guarantor shall fail to observe or perform any covenant or agreement herein or in the Guaranty binding on it; provided that any such failure by Guarantor under preceding clause (iii) shall not constitute an Event of Default under: (a) Sections 3(b), 3(c), 3(d) and 3(h)(xi) of this Agreement until the 30th day following Guarantor obtaining knowledge thereof; (b) Section 3(h)(ii) of this Agreement until the 5th day following Guarantor obtaining knowledge thereof and (c), Sections 3(a) and 3(h)(i) of this Agreement, until the 10th day following Guarantor obtaining knowledge thereof.

  7.Remedies upon Event of Default. Upon the occurrence of an Event of Default and at any time thereafter, Lender may exercise any one or more of the following rights and remedies: (i) declare all unmatured Obligations to be immediately due and payable, and the same shall thereupon be immediately due and payable, without presentment or other notice or demand; (ii) exercise and enforce any or all rights and remedies available upon default to a secured party under the UCC, including but not limited to the right to take possession of any Collateral, proceeding without judicial process or by judicial process, and the right to sell, lease or otherwise dispose of any or all of the Collateral, and in connection therewith, Lender may require the Guarantor to make the Collateral available to Lender at a place to be designated by Lender which is reasonably convenient to both parties, and if notice to the Guarantor of any intended disposition of Collateral or any other intended action is required by law in a particular instance, such notice shall be deemed commercially reasonable if given (in the manner specified in Section 9) at least ten (10) days prior to the date of intended disposition or other action; (iii) exercise or enforce any or all other rights or remedies available to Lender by law or agreement against the Collateral, against the Guarantor or against any other Person or property. Lender is hereby granted a nonexclusive, worldwide and royalty-free license to use or otherwise exploit all Intellectual Property Rights owned by or licensed to the Guarantor that Lender deems necessary or appropriate to the disposition of any Collateral.

  8.Other Personal Property. Unless at the time Lender takes possession of any tangible Collateral, or within seven days thereafter, the Guarantor gives written notice to Lender of the existence of any goods, papers or other property of the Guarantor, not affixed to or constituting a part of such Collateral, but which are located or found upon or within such Collateral, describing such property, Lender shall not be responsible or liable to the Guarantor for any action taken or omitted by or on behalf of Lender with respect to such property.

  9.Notices; Requests for Accounting. All notices and other communications hereunder shall be in writing and shall be (a) personally delivered, (b) sent by first class United States mail, or (c) sent by overnight courier of national reputation, in each case addressed to the party to whom notice is being given at its address as set forth below its signature or, as to each party, at such other address as may hereafter be designated by such party in a written notice to the other party complying as to delivery with the terms of this Section. All such notices, requests, demands and other communications shall be deemed to have been given on (i) the date received if personally delivered, (ii) when deposited in the mail if delivered by mail, or (iii) the date sent if sent by overnight courier. All requests under Section 9-210 of the UCC (i) shall be made in a writing signed by an authorized Person, (ii) shall be personally delivered, sent by registered or certified mail, return receipt requested, or by overnight courier of national reputation (iii) shall be deemed to be sent when received by Lender and (iv) shall otherwise comply with the requirements of Section 9-210. The Guarantor requests that Lender respond to all such requests which on their 

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  face appear to come from an authorized individual and releases Lender from any liability for so responding. The Guarantor shall pay Lender the maximum amount allowed by law for responding to such requests.

  10.Miscellaneous. This Agreement has been duly and validly authorized by all necessary corporate action. This Agreement does not contemplate a sale of accounts, or chattel paper. This Agreement can be waived, modified, amended, terminated or discharged, and the Security Interest can be released, only explicitly in a writing signed by Lender, and, in the case of amendment or modification, in a writing signed by the Guarantor. A waiver signed by Lender shall be effective only in the specific instance and for the specific purpose given. Mere delay or failure to act shall not preclude the exercise or enforcement of any of Lender’s rights or remedies. All rights and remedies of Lender shall be cumulative and may be exercised singularly or concurrently, at Lender’s option, and the exercise or enforcement of any one such right or remedy shall neither be a condition to nor bar the exercise or enforcement of any other. Lender’s duty of care with respect to Collateral in its possession (as imposed by law) shall be deemed fulfilled if Lender exercises reasonable care in physically safekeeping such Collateral or, in the case of Collateral in the custody or possession of a bailee or other third person, exercises reasonable care in the selection of the bailee or other third person, and Lender need not otherwise preserve, protect, insure or care for any Collateral. Lender shall not be obligated to preserve any rights the Guarantor may have against prior parties, to realize on the Collateral at all or in any particular manner or order, or to apply any cash proceeds of Collateral in any particular order of application. This Agreement shall be binding upon and inure to the benefit of the Guarantor and Lender and their respective successors and assigns and shall take effect when signed by the Guarantor and delivered to Lender, and the Guarantor waives notice of Lender’s acceptance hereof. A carbon, photographic or other reproduction of this Agreement or of any financing statement signed by the Guarantor shall have the same force and effect as the original for all purposes of a financing statement. This Agreement shall be governed by and construed in accordance with the substantive laws (other than conflict laws) of the State of Illinois.  If any provision or application of this Agreement is held unlawful or unenforceable in any respect, such illegality or unenforceability shall not affect other provisions or applications which can be given effect and this Agreement shall be construed as if the unlawful or unenforceable provision or application had never been contained herein or prescribed hereby. All representations and warranties contained in this Agreement shall survive the execution, delivery and performance of this Agreement and the creation and payment of the Obligations. The parties hereto hereby (i) consent to the personal jurisdiction of the state and federal courts located in the State of Illinois in connection with any controversy related to this Agreement; (ii) waive any argument that venue in any such forum is not convenient, (iii) agree that any litigation initiated by Lender or the Guarantor in connection with this Agreement or the other Loan Documents may be venued in either the state or federal courts located in the City of Chicago, Illinois; and (iv) agree that a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

  11.THE PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR PERTAINING TO THIS AGREEMENT.

  [Signature page to follow]

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  The parties hereto have executed this Agreement as of the date and year first above written.

   

  		
	FIFTH THIRD BANK, NATIONAL ASSOCIATION
 
 
 
By: 
Name:  Jeffrey Seiden
Title:  Senior Vice President
 
Address:
6111 N. River Road
Rosemont, IL 60018
Attention: Mr. Richard Sitz
 
	Precision Affiliated Holdings LLC, 
a Delaware limited liability company
 
 
 
By: 
Name: 
Title: 
 
Address:
 
c/o Live Ventures Incorporated
325 E. Warm Springs Rd., #102
Las Vegas, NV 89119
Attention: Eric Althofer

   

   

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  EXHIBIT A

   

  LOCATION OF COLLATERAL

   

  1.325 E. Warm Springs Rd., #102, Las Vegas, NV 89119

   

   

   

   

   

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  EXHIBIT B

   

  LEGAL DESCRIPTION

   

  None.

   

   

   

   

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  EXHIBIT C

  PERMITTED LIENS

   

  None. 

   

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