Document:

Unassociated Document

    

    
      EXECUTION
COPY

       

    

    AMENDED AND RESTATED
GUARANTY

     

    This
AMENDED AND RESTATED GUARANTY (the “Guaranty”), dated as
of September 21, 2009, is made by Houston Wire & Cable Company, a
Delaware corporation (the “Guarantor”), in favor
of Bank of America, N.A., a national banking association, as agent (“Agent”), for the
benefit of the Agent and each of the Lenders from time to time parties to the
hereinafter defined Loan Agreement (“Lenders”).

     

    W I T N E S S E T
H:

     

    WHEREAS, Guarantor (f/k/a HWC
Holding Corporation) executed a certain Guaranty (“2000 Guaranty”) in
favor of Fleet Capital Corporation (the predecessor-in-interest to Agent) in
connection with a certain Amended and Restated Loan and Security Agreement (as
amended, restate, supplemented or otherwise modified from time to time, the
“2000 Loan
Agreement”) dated May 22, 2000 by and among Fleet Capital Corporation
(predecessor-in-interest to Agent), the lenders signatory thereto (“Lenders”), Guarantor
and HWC Wire & Cable Company, a Delaware corporation (f/k/a Houston Wire
& Cable Company and herein “Borrower”);
and

     

    WHEREAS, Agent, Lenders,
Guarantor and Borrower wish to amend and restate the 2000 Loan Agreement
pursuant to that certain Second Amended and Restated Loan and Security Agreement
dated as of the date hereof (the same, as it may be amended, restated,
supplemented or otherwise modified and in effect from time to time, the “Loan Agreement”);
and

     

    WHEREAS, the Guarantor
continues to own all of the outstanding shares of capital stock of Borrower and,
as such, will derive direct and indirect economic benefits from the continuing
making of the “Loans” (as defined in
the Loan Agreement); and

     

    WHEREAS, in connection with
the making of the Loans under the Loan Agreement and as a condition precedent
thereto, Agent and Lenders require that the Guarantor shall have executed and
delivered this Amended and Restated Guaranty;

     

    NOW, THEREFORE, in
consideration of the premises and in order to induce Agent and Lenders to make
the Loans and to issue the Letters of Credit under the Loan Agreement, the
Guarantor hereby agrees with Agent and Lenders, for benefit of Agent and
Lenders:

     

    1.           Defined
Terms

     

    Capitalized
terms used herein which are not otherwise defined herein are used with the
meanings ascribed to such terms in the Loan Agreement.

     

    2.           Guaranty
of Payment

     

    (a)           The
Guarantor hereby unconditionally guaranties the full and prompt payment to
Agent, for its benefit and for the benefit of Lenders when due, upon demand, at
maturity or by reason of acceleration or otherwise and at all times thereafter,
of any and all of the Obligations.

    
      
         

      

      
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    (b)           The
Guarantor acknowledges that valuable consideration supports this Guaranty,
including, without limitation, the consideration set forth in the recitals
above.

     

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

     

    3.           Costs
and Expenses

     

    The
Guarantor agrees to pay on demand, if not paid by Borrower, all reasonable costs
and expenses of every kind incurred by Agent or any Lender; (a) in
enforcing this Guaranty; (b) in collecting any of the Obligations from
Borrower or the Guarantor; and (c) in realizing upon or protecting any
collateral for this Guaranty or for payment of any of the
Obligations.  “Costs and expenses” as used in the preceding sentence
shall include, without limitation, the actual reasonable attorneys’ fees
incurred by Agent or any Lender in retaining counsel for advice, suit, appeal,
any insolvency or other proceedings under the Bankruptcy Code or (as defined
below) otherwise, or for any purpose specified in the preceding
sentence.

     

    4.           Nature
of Guaranty:  Continuing, Absolute and Unconditional

     

    (a)           This
Guaranty is and is intended to be a continuing guaranty of payment of the
Obligations, independent of and in addition to any other guaranty, indorsement,
collateral or other agreement held by Agent or any Lender therefor or with
respect thereto, whether or not furnished by the Guarantor.  The
obligations of the Guarantor to repay the Obligations hereunder shall be
unlimited.  At all times prior to the final payment and performance in
full of the Obligations, the Guarantor shall have no right of subrogation with
respect to the Obligations or any payments made by the Guarantor hereunder and
hereby waives any right to enforce any remedy which Agent or any Lender now have
or may hereafter have against Borrower or any endorser or any other guarantor of
all or any part of the Obligations.  The Guarantor hereby waives any
benefit of, and any right to participate in, any security or collateral given to
Agent or Lenders to secure payment of the Obligations or any part thereof, and
the Guarantor agrees that it will not take any action to enforce any obligations
of Borrower to the Guarantor prior to the Obligations being paid in full; provided that, in the
event of the bankruptcy or insolvency of Borrower, Agent, and Lenders shall be
entitled notwithstanding the foregoing, to file in the name of the Guarantor or
in their own name a claim for any and all indebtedness owing to the Guarantor by
Borrower (exclusive of this Guaranty), to vote such claim and to apply the
proceeds of any such claim to the Obligations.

     

    (b)           For
the further security of Agent, for its benefit and the benefit of Lenders, and
without in any way diminishing the liability of the Guarantor, until all of the
Obligations have been paid in full, all debts and liabilities, present or future
of Borrower to the Guarantor and, except as otherwise permitted by the Loan
Agreement, all monies received from Borrower or for its account by the Guarantor
in respect thereof shall be received in trust for Agent, for its benefit and the
benefit of Lenders, and forthwith upon receipt shall be paid over to Agent, for
its benefit and the benefit of Lenders, to be credited and applied, whether the
Obligations are matured or unmatured, in accordance with the terms of the Loan
Agreement.  This assignment and postponement is independent of and
severable from this Guaranty and shall remain in full effect whether or not the
Guarantor is liable for any amount under this Guaranty.

    
      
         

      

      
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    (c)           This
Guaranty is absolute and unconditional and shall not be changed or affected by
any representation, oral agreement, act or thing whatsoever, except as herein
provided.  This Guaranty is intended by the Guarantor to be the final,
complete and exclusive expression of the guaranty agreement between the
Guarantor, Agent and Lenders.  No modification or amendment of any
provision of this Guaranty shall be effective unless in writing and signed by a
duly authorized officer of Agent and by the Guarantor.

     

    (d)           Until
final payment and performance in full of the Obligations, the Guarantor hereby
releases Borrower from all, and agrees not to assert or enforce (whether by or
in a legal or equitable proceeding or otherwise) any, “claims” (as defined in
Section 101(4) of the United States Bankruptcy Code, as amended (the “Bankruptcy Code”)),
whether arising under any law, ordinance, rule, regulation, order, policy or
other requirement of any domestic or foreign government, or any instrumentality
or agency thereof, having jurisdiction over the conduct of its business or
assets or otherwise, to which the Guarantor is or would at any time be entitled
by virtue of its obligations hereunder, any payment made pursuant hereto or the
exercise by Agent of its rights with respect to the Collateral, including any
such claims to which the Guarantor may be entitled as a result of any right of
subrogation, exoneration or reimbursement.

     

    5.           Certain
Rights and Obligations

     

    (a)           To
the extent permitted by applicable law, the Guarantor authorizes Agent, for its
benefit and the benefit of Lenders, without notice, demand or any reservation of
rights against the Guarantor and without affecting the Guarantor’s obligations
hereunder, from time to time:

     

    (i)           to
renew, extend, increase, accelerate or otherwise change the time for payment of,
the terms of or the interest on the Obligations or any part thereof or grant
other indulgences to Borrower or others as provided by an amendment(s) to the
Loan Agreement executed by Borrower, Agent and Lenders and/or Required Lenders,
the terms of the Loan Agreement with respect to acceleration or in any waiver or
consent executed by Agent, Lenders and/or Required Lenders, with respect to any
indulgence;

     

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

     

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

    
      
         

      

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

     

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

     

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

     

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

     

    (b)           If
any default shall be made in the payment of any of the Obligations and any grace
period has expired with respect thereto as provided in the Loan Agreement, the
Guarantor hereby agrees to pay the same in full to the extent hereinafter
provided:

     

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

     

    (ii)     
    without requiring presentment, protest or notice of
nonpayment or notice of default to the Guarantor, to Borrower or to any other
Person;

     

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

     

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

     

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

     

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

     

    all of
the foregoing which the Guarantor hereby waives.

    
      
         

      

      
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    (c)           To
the extent permitted by applicable law, the Guarantor’s obligation hereunder
shall not be affected by any of the following, all of which the Guarantor hereby
waives:

     

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

     

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

     

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

     

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

     

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

     

    (vi)         any
release, settlement or compromise of any obligation of Borrower;

     

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

     

    (viii)       any
change of ownership of Borrower or the insolvency, bankruptcy or any other
change in the legal status of Borrower;

     

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

     

    (x)         
the existence of any claim, setoff or other right which the Guarantor may have
at any time against, Agent or any Lender or Borrower in connection herewith
or any other transaction, related or unrelated;

     

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

     

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

     

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

    
      
         

      

      
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    (xiv)       any
other fact or circumstance which might otherwise constitute grounds at law or
equity for the discharge or release of the Guarantor from its obligations
hereunder (other than termination of this Guaranty in accordance with Section 8
hereof), all whether or not the Guarantor shall have had notice or knowledge of
any act or omission referred to in the foregoing clauses (i) through (xiii) of
this subsection 5(c).

     

    6.           Representations
and Warranties

     

    The
Guarantor further represents and warrants to Agent and Lenders
that:

     

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

     

    (b)           The
Guarantor has full power, authority and legal right to execute and deliver, and
to perform its obligations under, this Guaranty and each other Loan Document to
which it is a party and to carry out the related transactions to which it is a
party, and all necessary corporate action to authorize the guaranty hereunder,
such other Loan Documents and such related transactions on the terms and
conditions hereof and thereof and to authorize the execution, delivery and
performance of this Guaranty, such other Loan Documents and such related
transactions has been duly taken.

     

    (c)           This
Guaranty and the other Loan Documents and any other related transactions
documents to which the Guarantor is a party have been duly executed and
delivered by the Guarantor and constitute legal, valid and binding obligations
of the Guarantor enforceable against the Guarantor in accordance with their
respective terms, except to the extent that such enforceability is subject to
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance and
moratorium laws and other laws of general application affecting enforcement of
creditors’ rights generally, or the availability of equitable remedies, which
are subject to the discretion of the court before which an action may be
brought.

     

    (d)           As
of the Closing Date, the authorized capital structure of the Guarantor is as
forth in Guarantor’s public filings as required by the Securities Act of 1933,
as amended from time to time, and/or by the Exchange Act.

     

    (e)           The
Guarantor is duly qualified and in good standing wherever necessary to carry on
their present businesses and operations, except in jurisdictions in which the
failure to be qualified and in good standing could not reasonably be expected to
have a material adverse effect on the ability of the Guarantor to perform its
obligations under any Loan Document to which it is a party or of Agent or any
Lender to enforce or collect any of the Obligations.

     

    (f)           The
execution, delivery and performance by the Guarantor of this Guaranty and each
other related transactions document to which the Guarantor is a party, and the
consummation of the transactions contemplated by this Guaranty and each of the
related transactions documents to which it is a party do not and will not
violate, conflict with, result in a breach of, or constitute a default (with due
notice of lapse of time or both) under any contract of the Guarantor, except if
such violations, conflicts, breaches or defaults have either been waived on or
before the Closing Date or could not reasonably be expected to have a material
adverse effect on the ability of the Guarantor to perform its obligations under
any Loan Document to which it is a party or of Agent or any Lender to enforce or
collect any of the Obligations.

    
      
         

      

      
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    (g)           Any
representations and warranties set forth in the Loan Agreement relating to the
Guarantor are and, after giving effect to the related transactions, will be
true, correct and complete.

     

    7.           Covenants

     

    The
Guarantor covenants with Agent and Lenders that:

     

    (a)           The
Guarantor shall not grant any security interest in or permit any lien, claim or
encumbrance upon any of its assets in favor of any third party other than liens
and security interests in favor of Agent; provided that the
Guarantor may grant a mortgage lien on its real Property commonly known as 10201
North Loop East (10201 NLE), Houston, Texas.

     

    (b)           The
Guarantor will not engage in any type of business activity other than its
ownership of Borrower’s capital stock, the performance of its obligations under
the Loan Documents to which it is a party and the ownership of assets and
businesses (including, without limitation, the capital stock of Subsidiaries
other than Borrower) that are related to, or extensions of, the business of
Borrower.

     

    (c)           The
Guarantor shall not, nor shall the Guarantor permit any of its Subsidiaries to,
enter into any indenture, agreement, instrument or other arrangement which,
(i) directly or indirectly, prohibits or restrains, or has the effect of
prohibiting or restraining, or imposes materially adverse conditions upon, the
incurrence of the obligations of the Guarantor hereunder, or (ii) contains
any provisions which would be violated or breached by the performance by the
Guarantor of its obligations hereunder.

     

    (d)           The
Guarantor hereby assumes and adopts and agrees to perform, comply with and be
bound by all of the terms and conditions, including without limitation
affirmative and negative covenants, set forth in the Loan Agreement which relate
to the Guarantor, with such terms and conditions, including without limitation
such affirmative and negative covenants, being incorporated in this Guaranty by
reference.

     

    
      
        
        

      

      
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    8.           Termination

    This
Guaranty shall remain in full force and effect until all of the Obligations
shall be finally and irrevocably paid in full (other than continuing indemnity
obligations that are not pending or threatened) and the commitments of Agent and
Lenders under the Loan Agreement and the Letters of Credit shall have been
terminated.  Thereafter, but subject to the following, Agent shall
take such action and execute such documents as the Guarantor may request (and at
the Guarantor’s cost and expense) in order to evidence the termination of this
Guaranty.  Payment of all of the Obligations from time to time shall
not operate as a discontinuance of this Guaranty.  The Guarantor
further agrees that, to the extent that Borrower makes a payment or payments to
Agent or any Lender on the Obligations, or Agent or any Lender receives any
proceeds of collateral securing the Obligations which payment or receipt of
proceeds or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be returned or repaid to
Borrower, its estate, trustee, receiver, debtor in possession or any other
Person, including, without limitation, the Guarantor, under any insolvency or
bankruptcy law, state or federal law, common law or equitable cause, then to the
extent of such payment, return or repayment, the obligation or part thereof
which has been paid, reduced or satisfied by such amount shall be reinstated and
continued in full force and effect as of the date when such initial payment,
reduction or satisfaction occurred, and this Guaranty shall continue in full
force notwithstanding any contrary action which may have been taken by Agent or
any Lender in reliance upon such payment, and any such contrary action so taken
shall be without prejudice to Agent’s or any Lender’s rights under this Guaranty
and shall be deemed to have been conditioned upon such payment having become
final and irrevocable.

     

    9.           Guaranty
of Performance

     

    The
Guarantor also guaranties the full, prompt and unconditional performance of all
obligations and agreements of every kind owed or hereafter to be owed by
Borrower to Agent or any Lender under the Loan Agreement and the other Loan
Documents to which Borrower is a party.  Every provision for the
benefit of Agent and Lenders contained in this Guaranty shall apply to the
guaranty of performance given in this Section 9.

     

    10.           Assumption
of Liens and Obligations

     

    To the
extent that the Guarantor has received or shall hereafter receive distributions
or transfers from Borrower of property or cash (other than distributions
permitted by the Loan Agreement) that are subject, at the time of such
distribution or transfer, to liens and security interests in favor of Agent and
Lenders in accordance with the Loan Agreement or the other Loan Documents, the
Guarantor hereby expressly agrees that:

     

    (a)           it
shall hold such assets subject to such liens and security interests and subject
to the terms of the Loan Agreement and the other Loan Documents;
and

     

    (b)           it
shall be liable for the payment of the Obligations secured thereby.

     

    The
Guarantor’s obligations under this Section 10 shall
be in addition to its obligations as set forth in other sections of this
Guaranty and not in substitution therefor or in lieu thereof.

     

    11.           Taxes

     

    All
payments hereunder shall be made without any counter-claim or set-off, free and
clear of, and without reduction by reason of, any taxes, levies, imposts,
charges and withholdings, restrictions or conditions of any nature (“Taxes”), which are
now or may hereafter be imposed, levied or assessed by any country, political
subdivision or taxing authority, all of which will be for the account of and
paid by the Guarantor.  If for any reason, any such reduction is made
or any Taxes are paid by Agent or any Lender, the Guarantor will pay to Agent or
such Lender such additional amounts as may be necessary to ensure that Agent or
such Lender receives the same net amount which they would have received had not
reduction been made or Taxes paid.

    
      
         

      

      
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    12.           Miscellaneous

     

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

     

    (b)           Without
limiting any other right of Agent or any Lender, whenever Agent or any Lender
has the right to declare any of the Obligations to be immediately due and
payable (whether or not it has been so declared), Agent or any Lender at its
sole election without notice to the undersigned, may appropriate and set off
against the Obligations:

     

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

     

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

     

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

     

    (c)           The
Guarantor’s obligation hereunder is to pay the Obligations in full when due
according to the Loan Agreement to the extent provided herein, and shall not be
affected by any stay or extension of time for payment by Borrower resulting from
any proceeding under the Bankruptcy Code or any similar law.

     

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

     

    (e)           This
Agreement shall inure to the benefit of Agent and Lenders and their successors
and assigns under the Loan Agreement.

    
      
         

      

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

     

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

     

    (h)           THE
GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY
UNITED STATES FEDERAL OR ILLINOIS STATE COURT LOCATED WITHIN THE COUNTY OF COOK,
STATE OF ILLINOIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
GUARANTY AND THE GUARANTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT
OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT
AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE
VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT
SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE
RIGHT OF AGENT TO BRING PROCEEDINGS AGAINST THE GUARANTOR IN THE COURTS OF ANY
OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY THE GUARANTOR AGAINST
AGENT OR ANY LENDER OR ANY AFFILIATE THEREOF INVOLVING, DIRECTLY OR INDIRECTLY,
ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS
GUARANTY SHALL BE BROUGHT ONLY IN A COURT LOCATED WITHIN THE COUNTY OF COOK,
STATE OF ILLINOIS.

     

    (i)           THE
GUARANTOR AND AGENT HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS GUARANTY, OR ANY
DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
GUARANTY.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING
OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO
THE SUBJECT MATTER OF THIS GUARANTY, INCLUDING WITHOUT LIMITATION, CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND
STATUTORY CLAIMS.  THE GUARANTOR AND AGENT ACKNOWLEDGE THAT THIS WAIVER IS
A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS
ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL
CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS.  THE
GUARANTOR AND AGENT FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS
WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY
OR  IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
GUARANTY.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.  THE GUARANTOR AND
AGENT ALSO WAIVE ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT
FOR THIS WAIVER, BE REQUIRED OF AGENT AND THE GUARANTOR.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (j)           THE
GUARANTOR WAIVES THE BENEFIT OF ALL VALUATION, APPRAISAL AND EXEMPTION LAWS, TO
THE EXTENT PERMITTED BY LAW.

     

    (k)           TO
THE EXTENT PERMITTED BY LAW, IF AN EVENT OF DEFAULT SHALL HAVE OCCURRED AND BE
CONTINUING UNDER THE LOAN AGREEMENT, THE GUARANTOR HEREBY WAIVES ALL RIGHTS TO
NOTICE AND HEARING OF ANY KIND PRIOR TO THE EXERCISE BY AGENT OR ANY LENDER OF
ITS RIGHTS TO REPOSSESS THE COLLATERAL WITHOUT JUDICIAL PROCESS OR TO REPLEVY,
ATTACH OR LEVY UPON THE COLLATERAL WITHOUT PRIOR NOTICE OR
HEARING.  THE GUARANTOR ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY
COUNSEL OF ITS CHOICE WITH RESPECT TO THIS TRANSACTION AND THIS
GUARANTY.

     

    (l)           THIS
GUARANTY AND THE TRANSACTIONS EVIDENCED HEREBY SHALL BE CONSTRUED UNDER THE
INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISION) OF THE STATE OF
ILLINOIS.

     

    (m)           Any
notice or other communication required shall be in writing addressed to the
respective party as set forth below and may be personally served, telecopied,
sent by overnight courier service or U.S. mail and shall be deemed to have been
given:  (a) if delivered in person, when delivered; (b) if
delivered by telecopy, on the date of transmission if transmitted on a Business
Day and receipt is confirmed by the recipient on such date, or otherwise on the
next Business Day; (c) if delivered by overnight courier, two (2) days
after delivery to the courier properly addressed; or (d) if delivered by
U.S. mail, four (4) Business Days after deposit with postage prepaid and
properly addressed.

     

    Notices
shall be addressed as follows:

     

    
      
        
          
            
              
                
                  
                    	 	
                            If
      to Guarantor:

                          	
                            Houston
      Wire & Cable Company

                          
	 	 
      	
                            10201
      N. Loop East

                          
	 	 
      	
                            Houston,
      Texas  77029

                          
	 	 
      	
                            Attn:  Nicol
      G. Graham

                          
	 	 
      	
                            Telecopy
      No.:  (713) 609-2205

                          
	 	 	 
	 	
                            With
      copy to:

                          	
                            Sidley
      Austin LLP

                          
	 	 
      	
                            One
      South Dearborn

                          
	 	 
      	
                            Chicago,
      Illinois  60603

                          
	 	 
      	
                            Attn:  Nancy
      L. Kasko

                          
	 	 
      	
                            Telecopy
      No.:  (312 ) 853-7036

                          
	 	 	 
	 	
                            If
      to Agent:

                          	
                            Bank
      of America, N.A.

                          
	 	 
      	
                            135
      South LaSalle Street, 4th
      Floor

                          
	 	 
      	
                            Chicago,
      IL  60603

                          
	 	 
      	
                            Attn:  Loan
      Administration Manager

                          
	 	 
      	
                            Telecopy
      No.:  (312)
904-7190

                          

                  

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            	 	
                    With
      a copy to:

                  	
                    Vedder
      Price P.C.

                  
	 	 
      	
                    222
      North LaSalle Street

                  
	 	 
      	
                    Suite
      2600

                  
	 	 
      	
                    Chicago,
      IL  60601

                  
	 	 
      	
                    Attn:  John
      T. McEnroe, Esq.

                  
	 	 
      	
                    Telecopy
      No.:  (312)
609-5005

                  

          

        

      

    

     

    (n)           Each
of the agreements, representations and warranties made or incorporated herein
shall survive the execution and delivery of this Guaranty, the making of the
Loans and the issuance of the Letters of Credit under the Loan Agreement, the
execution and delivery of the other Loan Documents and the consummation of all
related transactions.

     

    (o)           This
Guaranty amends and restates the 2000 Guaranty.

     

    [signature
page follows]

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
      (Signature
Page to Amended and Restated Guaranty)

       

    

    IN WITNESS WHEREOF, the
undersigned has caused this Amended and Restated Guaranty to be duly executed
and delivered by its duly authorized officer on the date first above
written.

     

    
      
        
          
            
              	
                      HOUSTON
      WIRE & CABLE

                      COMPANY, a Delaware
      corporation

                    
	 	 
	
                      By:

                    	
                      /s/ Charles A.
Sorrentino

                    
	
                      Name:

                    	 
      
	
                      Title:

                    	
                      President &
  CEO

                    

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      (Signature
Page to Amended and Restated Guaranty)

       

    

    ACKNOWLEDGED
THIS 21st day of September, 2009.

    

    
      
        
          
            
              	
                      BANK OF AMERICA, N.A., a
      national

                      banking
      association

                    
	 	 
	
                      By:

                    	
                      /s/ Steven J. Chalmers

                    
	
                      Name:

                    	 
      
	
                      Title:

                    	
                      Vice
PresidentBridge
Loan Agreement

    

    Between

    

    Miralco Holding AG,
Hofackerstrasse 3a, CH-4132 Muttenz (Lender)

    

    And

    

    Qnective AG, Thurgauerstrasse
54, 8050 Zürich (Borrower)

    

    Whereas,

    

    The
Borrower is a corporation duly organized and validly existing under the laws of
Switzerland with business activities in the field of
Telecommunications;

    

    The
Lender is an investment corporation duly organized and validly existing under
the laws of Switzerland;

    

    The
Borrower has requested a bridge loan in an amount of $2’000’000.00 for working
capital and general corporate purposes until such time as it can complete an
overall debt or equity financing with the lender, and the Lender is willing to
grant the requested bridge loan on and subject to the terms and conditions
hereof.

    

    Accordingly, the parties hereto agree
as follows:

    

    
      	
              1.  

            	
              The
      Lender grants to the Borrower the amount of $2’000’000.00 as a bridge loan
      for working capital and general corporate
  purposes.

            

    

     

    
      	
              2.  

            	
              The
      amount shall be transferred to a bank account designated by the Borrower
      immediately after the execution of this
  agreement.

            

    

     

    
      	
              3.  

            	
              The
      loan is granted at a fixed interest rate of 4% (four percent) p.a. over
      the whole term of the loan.  The parties agree upon quarterly
      interest periods ending for the first time per December 31,
      2009.

            

    

     

    
      	
              4.  

            	
              The
      term of the loan is 12 months after the execution of this agreement or
      until the conclusion of the overall debt or equity financing mentioned
      above, whichever happens first.  Thereafter the loan is
      repayable in one installment.  The parties reserve to agree at
      that time upon the conversion of the present bridge loan agreement into an
      equity financing agreement at conditions yet to be
  defined.

            

    

     

    
      	
              5.  

            	
              This
      Agreement may be modified or amended only by a writing signed by the
      parties.

            

    

     

    
      	
              6.  

            	
              Should
      any term or provision hereof be deemed invalid, void or unenforceable
      either in its entirety or in part, the remainder of this Agreement shall
      nonetheless remain in full force and effect.  The invalid, void
      or unenforceable term or provision shall be replaced by a term or
      provision which comes as close as possible to the original intentions of
      the Parties regarding this
agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              7.  

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of Switzerland, subject to the jurisdiction of the courts of
      Zurich.

            

    

     

    
      	
              8.  

            	
              In
      case of any contradiction between the German and the English language
      version of this agreement, the German version shall
    prevail.

            

    

     

    
      Muttenz
and Zurich, dated September 15, 2009

    

     

    

    
      	
              Miralco
      AG

            	
              Qnective
      AG

            
	 
      	 
      
	 
      	 
      
	
              By:
       /s/ Dorothea Kunz
      Bürgin

            	
              By: 
      /s/ Oswald
      Ortiz

            
	
              Dorothea
      Kunz-Bürgin

            	
              Oswald
      Ortiz

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]