Document:

Exhibit 10.4

 

GUARANTEE AGREEMENT

THIS GUARANTEE AGREEMENT,
dated as of September 29, 2006, is entered into by J.B. HUNT TRANSPORT
SERVICES, INC. (the “Guarantor”) and SUNTRUST BANK, a Georgia banking
corporation as administrative agent (the “Administrative Agent”) for the
Lenders (as defined in the Credit Agreement referred to below).

A.   Reference is made to the Term Loan Agreement dated as of September
29, 2006 (as amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among the Borrower, the lenders from time to time
party thereto (the “Lenders”) and SunTrust Bank, as Administrative Agent
for the Lenders, and a Lender. Capitalized terms used herein and not defined
herein shall have the meanings assigned to such terms in the Credit Agreement.

B.   The Lenders have agreed to make Loans to the Borrower pursuant to,
and upon the terms and subject to the conditions specified in, the Credit
Agreement. The Guarantor is the parent of the Borrower and acknowledges that it
will derive substantial benefit from the making of the Loans by the Lenders.
The obligations of the Lenders to make the Loans are conditioned on, among
other things, the execution and delivery by the Guarantor of this Guarantee
Agreement. As consideration therefore and in order to induce the Lenders to
make the Loans, the Guarantor is willing to execute this Guarantee Agreement.

Accordingly, the parties
hereto agree as follows:

SECTION 1.  Guarantee. The Guarantor
unconditionally guarantees, as a primary obligor and not merely as a surety,
(a) the due and punctual payment of (i) the principal of and premium, if any,
and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise, and (ii) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of
any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), of the Loan
Parties to the Administrative Agent and the Lenders under the Credit Agreement
and the other Loan Documents, (b) the due and punctual performance of all
covenants, agreements, obligations and liabilities of the Loan Parties under or
pursuant to the Credit Agreement and the other Loan Documents; and (c) the due
and punctual payment and performance of all obligations of the Borrower,
monetary or otherwise, under each Hedging Agreement entered into with a
counterparty that was a Lender or an Affiliate of a Lender at the time such
Hedging Agreement was entered into (all the monetary and other obligations
referred to in the preceding clauses (a) through (c) being collectively called
the “Obligations”). The Guarantor further agrees that the Obligations
may be extended or renewed, in whole or in part, without notice to or further
assent from it, and that it will remain bound upon its guarantee
notwithstanding any extension or renewal of any Obligation.

 

SECTION 2.  Obligations Not Waived. To the fullest
extent permitted by applicable law, the Guarantor waives presentment to, demand
of payment from and protest to the Borrower of any of the Obligations, and also
waives notice of acceptance of its guarantee and notice of protest for
nonpayment. To the fullest extent permitted by applicable law, the obligations
of the Guarantor hereunder shall not be affected by (a) the failure of the
Administrative Agent or any Lender to assert any claim or demand or to enforce
or exercise any right or remedy against the Borrower or any other Guarantor
under the provisions of the Credit Agreement, any other Loan Document or
otherwise, (b) any rescission, waiver, amendment or modification of, or any
release from any of the terms or provisions of, this Agreement, any other Loan
Document, any Guarantee or any other agreement, including with respect to any
other Guarantor under this Agreement, or (c) the failure to perfect any
security interest in, or the release of, any of the security held by or on
behalf of the Administrative Agent or any Lender.

SECTION 3.  Guarantee of Payment. The Guarantor
further agrees that its guarantee constitutes a guarantee of payment when due
and not of collection, and waives any right to require that any resort be had
by the Administrative Agent or any Lender to any of the security held for
payment of the Obligations or to any balance of any deposit account or credit
on the books of the Administrative Agent or any Lender in favor of the Borrower
or any other person.

SECTION 4.  No Discharge or Diminishment of Guarantee.
The obligations of the Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason (other than the
indefeasible payment in full in cash of the Obligations), including any claim
of waiver, release, surrender, alteration or compromise of any of the
Obligations, and shall not be subject to any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of the Guarantor hereunder shall
not be discharged or impaired or otherwise affected by the failure of the
Administrative Agent or any Lender to assert any claim or demand or to enforce
any remedy under the Credit Agreement, any other Loan Document or any other
agreement, by any waiver or modification of any provision of any thereof, by
any default, failure or delay, willful or otherwise, in the performance of the
Obligations, or by any other act or omission that may or might in any manner or
to the extent vary the risk of the Guarantor or that would otherwise operate as
a discharge of the Guarantor as a matter of law or equity (other than the
indefeasible payment in full in cash of all the Obligations).

SECTION 5.  Defenses of Borrower Waived. To the
fullest extent permitted by applicable law, the Guarantor waives any defense
based on or arising out of any defense of the Borrower or the unenforceability
of the Obligations or any part thereof from any cause, or the cessation from
any cause of the liability of the Borrower, other than the final and
indefeasible payment in full in cash of the Obligations. The Administrative
Agent and the Lenders may, at their election, foreclose on any security held by
one or more of them by one or more judicial or nonjudicial sales, accept an
assignment of any such security in lieu of foreclosure, compromise or adjust
any part of the Obligations, make any other accommodation with the Borrower or
any other guarantor, without affecting or impairing in any way the liability of
the Guarantor hereunder except to the extent the Obligations have been fully,
finally and indefeasibly paid in cash.

 2
 

 

Pursuant to applicable law, the
Guarantor waives any defense arising out of any such election even though such
election operates, pursuant to applicable law, to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of the Guarantor
against the Borrower or any other Guarantor or guarantor, as the case may be,
or any security.

SECTION 6.  Agreement to Pay; Subordination. In
furtherance of the foregoing and not in limitation of any other right that the
Administrative Agent or any Lender has at law or in equity against the Guarantor
by virtue hereof, upon the failure of the Borrower or any other Loan Party to
pay any Obligation when and as the same shall become due, whether at maturity,
by acceleration, after notice of prepayment or otherwise, the Guarantor hereby
promises to and will forthwith pay, or cause to be paid, to the Administrative
Agent for the benefit of the Lenders in cash the amount of such unpaid
Obligations. Upon payment by the Guarantor of any sums to the Administrative
Agent, all rights of the Guarantor against the Borrower arising as a result
thereof by way of right of subrogation, contribution, reimbursement, indemnity
or otherwise shall in all respects be subordinate and junior in right of
payment to the prior indefeasible payment in full in cash of all the Obligations.
In addition, any indebtedness of the Borrower now or hereafter held by the Guarantor
is hereby subordinated in right of payment to the prior payment in full in cash
of the Obligations. If any amount shall erroneously be paid to the Guarantor on
account of (i) such subrogation, contribution, reimbursement, indemnity or
similar right or (ii) any such indebtedness of the Borrower, such amount shall
be held in trust for the benefit of the Administrative Agent and the Lenders
and shall forthwith be paid to the Administrative Agent to be credited against
the payment of the Obligations, whether matured or unmatured, in accordance
with the terms of the Loan Documents.

SECTION 7.  Information. The Guarantor assumes all
responsibility for being and keeping itself informed of the Borrower’s
financial condition and assets, and of all other circumstances bearing upon the
risk of nonpayment of the Obligations and the nature, scope and extent of the
risks that the Guarantor assumes and incurs hereunder, and agrees that none of
the Administrative Agent or the Lenders will have any duty to advise the
Guarantor of information known to it or any of them regarding such
circumstances or risks.

SECTION 8.  Representations and Warranties. The Guarantor
represents and warrants as to itself that all representations and warranties
relating to it (as the parent of the Borrower) contained in the Credit
Agreement are true and correct.

SECTION 9.  Termination. The guarantees made
hereunder (a) shall terminate when all the Obligations have been paid in full
in cash and the Lenders have no further commitment to lend under the Credit
Agreement, and (b) shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of any Obligation is
rescinded or must otherwise be restored by any Lender or any Guarantor upon the
bankruptcy or reorganization of the Borrower, any Guarantor or otherwise. In
connection with the foregoing, the Administrative Agent shall execute and
deliver to the Guarantor or Guarantor’s designee, at the Guarantor’s expense,
any documents or instruments which the Guarantor shall reasonably request from
time to time to evidence such termination and release.

 3
 

 

SECTION 10.  Binding Effect; Several Agreement;
Assignments. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors
and assigns of such party; and all covenants, promises and agreements by or on
behalf of the Guarantor that is contained in this Agreement shall bind and
inure to the benefit of each party hereto and their respective successors and
assigns. This Agreement shall become effective as to the Guarantor when a
counterpart hereof executed on behalf of the Guarantor shall have been delivered
to the Administrative Agent, and a counterpart hereof shall have been executed
on behalf of the Administrative Agent, and thereafter shall be binding upon the
Guarantor and the Administrative Agent and their respective successors and
assigns, and shall inure to the benefit of the Guarantor, the Administrative
Agent and the Lenders, and their respective successors and assigns, except that
Guarantor shall not have the right to assign its rights or obligations
hereunder or any interest herein (and any such attempted assignment shall be
void). If all of the capital stock (or membership interest, as the case may be)
of Guarantor is sold, transferred or otherwise disposed of pursuant to a
transaction permitted by the Credit Agreement, the Guarantor shall be released
from its obligations under this Agreement without further action.

SECTION 11.  Waivers; Amendment.

(a)           No failure or delay
of the Administrative Agent in exercising any power or right hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights of the Administrative Agent
hereunder and of the Lenders under the other Loan Documents are cumulative and
are not exclusive of any rights or remedies that they would otherwise have. No
waiver of any provision of this Agreement or consent to any departure by
Guarantor therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) below, and then such waiver and consent shall be
effective only in the specific instance and for the purpose for which given. No
notice or demand on the Guarantor in any case shall entitle Guarantor to any
other or further notice in similar or other circumstances.

(b)           Neither this
Agreement nor any provision hereof may be waived, amended or modified except
pursuant to a written agreement entered into between the Guarantor with respect
to which such waiver, amendment or modification relates and the Administrative
Agent, with the prior written consent of the Required Lenders (except as
otherwise provided in the Credit Agreement).

SECTION 12.  Governing Law. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TENNESSEE.

SECTION 13.  Notices. All communications and
notices hereunder shall be in writing and given as provided in Section 10.1 of
the Credit Agreement. All communications and notices hereunder to each
Guarantor shall be given to it at its address set forth on Schedule I attached
hereto.

 4
 

 

SECTION 14.  Survival of Agreement: Severability.

(a)           All covenants,
agreements representations and warranties made by the Guarantors herein and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement or the other Loan Document shall be considered to
have been relied upon by the Administrative Agent and the Lenders and shall
survive the making by the Lenders of the Loans regardless of any investigation
made by any of them or on their behalf, and shall continue in full force and
effect as long as the principal of or any accrued interest on the Loans or any
other fee or amount payable under this Agreement or any other Loan Document is
outstanding and unpaid.

(b)           In the event one or
more of the provisions contained in this Agreement or in any other Loan
Document should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and therein shall not in any way be affected or impaired thereby (it
being understood that the invalidity of a particular provision in a particular
jurisdiction shall not in and of itself affect the validity of such provision
in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to
that of the invalid, illegal or unenforceable provisions.

SECTION 15.  Counterparts. This Agreement may be
executed in counterparts, each of which shall constitute an original, but all
of which when taken together shall constitute a single contract (subject to
Section 10), and shall become effective as provided in Section 10. Delivery of
an executed signature page to this Agreement by facsimile transmission shall be
as effective as delivery of a manually executed counterpart of this Agreement.

SECTION 16.  Rules of Interpretation. The rules of
interpretation specified in Section 1.3 of the Credit Agreement shall be
applicable to this Agreement.

SECTION 17.  Jurisdiction; Consent to Service of
Process.

(a)           The Guarantor hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of the Chancery Court in Davidson County,
Tennessee or Federal court of the United States of America sitting in the
Middle District of Tennessee,
and any appellate court from any thereof, in any action or proceeding arising
out of or relating to this Agreement or the other Loan Documents, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such Tennessee state
court or, to the extent permitted by law, in such federal court. Each of the
parties hereto agrees that a final judgment in any such 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. Nothing in this Agreement
shall affect any right that the Administrative Agent or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement

 5
 

 

or
the other Loan Documents against the Guarantor or its properties in the courts
of any jurisdiction.

(b)           The Guarantor hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection that it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or the other Loan Documents in any Tennessee state or federal
court. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

(c)           Each party to this
Agreement irrevocably consents to service of process in the manner provided for
notices in Section 13. Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

SECTION 18.  Waiver of Jury Trial. EACH PARTY
HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION 18.

SECTION 19.  Affirmative Covenants;
Negative Covenants; Financial Covenants. All of the provisions of Article
V, Article VI and Article VII of the Credit Agreement are by this reference
incorporated herein as if set forth in full herein, and the Guarantor agrees
and covenants that all of the provisions of such Articles V, VI and VII are applicable
to it. Any and all references to the Borrower in such Articles V, VI and VII
are and shall be deemed to be references to the Guarantor.

SECTION 20.  Right
of Setoff. If an Event of Default shall have occurred and be continuing,
each Lender is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other Indebtedness at any time owing by such Lender or the Issuing Bank to or
for the credit or the account of the Guarantor against any or all the
obligations of Guarantor now or hereafter existing under this Agreement and the
other Loan Documents held by such Lender, irrespective of whether or not such
Person shall have made any demand under this Agreement or any other Loan
Document and although such obligations may be unmatured. The rights of each
Lender under this Section 20 are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

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IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement as of the day and year first above written.

 

	
   

  	
  J.B. HUNT TRANSPORT
  SERVICES,

  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kirk Thompson

  	
   

  
	
   

  	
   

  
	
   

  	
  Name

  	
  Kirk Thompson

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUNTRUST BANK, as
  Administrative

  Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William H. Crawford

  	
   

  
	
   

  	
   

  
	
   

  	
  Name

  	
  William H. Crawford

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Director

  	
   

  
						

 

 7Exhibit
10.1

AMENDMENT
TO CREDIT AGREEMENT

by and between

INFOSONICS
CORPORATION, a Maryland corporation

and

WELLS
FARGO HSBC TRADE BANK, N.A.

Dated as of

September 29, 2006

 

 

September 29, 2006

Mr. Jeff Klausner

InfoSonics Corporation

5880 Pacific Center Blvd.

San Diego, CA 92121

Dear Jeff:

This letter is to
confirm that Wells Fargo HSBC Trade Bank, National Association (“Trade Bank”)
has agreed to extend the maturity date of that certain credit accommodation
granted by Trade Bank to InfoSonics Corporation, a Maryland corporation (“Borrower”)
in the maximum principal amount of Twenty-Five Million Dollars ($25,000,000),
pursuant to the terms and conditions of that certain Credit Agreement between
Trade Bank and Borrower dated as of October 6, 2005 as amended from time to
time (the “Agreement”).

The maturity date
of said credit accommodation is hereby extended until November 1, 2006. Until
such date, all terms and conditions of the Agreement, which pertain to said
credit accommodation, shall remain in full force and effect, except as
expressly modified hereby.  The
promissory note dated as of October 6, 2005 executed by Borrower and payable to
the order of Trade Bank which evidences said credit accommodation (the “Note”),
shall be deemed modified as of the date this letter is acknowledged by Borrower
to reflect the new maturity date set forth above. All other terms and
conditions of the Note remain in full force and effect, without waiver or
modification.

Borrower
acknowledges that Trade Bank has not committed to make any renewal or further
extension of the maturity date of the above-described credit accommodation
beyond the new maturity date specified herein, and that any such renewal or
further extension remains in the sole discretion of Trade Bank.  This letter constitutes the entire agreement
between Trade Bank and Borrower with respect to the maturity date extension for
the above-described credit accommodation, and supersedes all prior
negotiations, discussions and correspondence concerning said extension.

Please acknowledge
your acceptance of the terms and conditions contained herein by dating and
signing one copy below and returning it to my attention at the above address on
or before September 29, 2006.

	
  

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO HSBC TRADE BANK,

  	
   

  
	
   

  	
  NATIONAL
  ASSOCIATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Naseem Aboudaher

  	
   

  
	
   

  	
  Name:

  	
  Naseem Aboudaher

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  	
   

  	
  Relationship Manager

  
					

 

 

 

	
  Acknowledged and accepted as of September 29,
  2006:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  InfoSonics
  Corporation

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Jeff Klausner

  	
   

  	
   

  	
   

  
	
  Name:

  	
    Jeff Klausner

  	
   

  	
   

  
	
  Title:

  	
    Chief Financial Officer

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