Document:

EX-10.27

 Exhibit 10.27 
  

 
  

NOTE PURCHASE AGREEMENT 

Among 
 THE
BANK OF NEW YORK MELLON, 
 as Trustee 

And 
 [Redacted] 

as Purchaser 
 Dated as of
December 20, 2013 
 RE: 

HASI SYB 2013-1 TRUST 
  

 
  

 TABLE OF CONTENTS 

 

							
	SECTION	 	HEADING	  	PAGE	 
			
	 Parties
	 		  	 	1	 
			
	 SECTION 1.
	 	 AUTHORIZATION OF NOTES; DEFINITIONS
	  	 	1	 
			
	 Section 1.1.
	 	 Authorization of Notes
	  	 	1	 
	 Section 1.2.
	 	 Definitions
	  	 	1	 
			
	 SECTION 2.
	 	 SALE AND PURCHASE OF NOTES
	  	 	2	 
			
	 SECTION 3.
	 	 CLOSING
	  	 	2	 
			
	 SECTION 4.
	 	 CONDITIONS TO THE CLOSING
	  	 	2	 
			
	 SECTION 5.
	 	 REPRESENTATIONS AND WARRANTIES OF BORROWERS
	  	 	3	 
			
	 SECTION 6.
	 	 REPRESENTATIONS, WARRANTIES AND COVENANTS OF
THE PURCHASERS
	  	 	3	 
			
	 SECTION 7.
	 	 REPRESENTATIONS AND WARRANTIES OF TRUSTEE
	  	 	5	 
			
	 SECTION 8.
	 	 ADDITIONAL AGREEMENTS
	  	 	5	 
			
	 SECTION 9.
	 	 SURVIVAL OF REPRESENTATIONS AND WARRANTIES
	  	 	5	 
			
	 SECTION 10.
	 	 NOTICES, ETC.
	  	 	6	 
			
	 SECTION 11.
	 	 MISCELLANEOUS
	  	 	6	 

 ATTACHMENTS TO NOTE PURCHASE AGREEMENT

  

					
	SCHEDULE I	 	—	    	Name and Address of Purchaser
			
	EXHIBIT A	 	—	    	Representations and Warranties of Trustee
			
	EXHIBIT B	 	—	    	Form of Trust Agreement

  
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 NOTE PURCHASE AGREEMENT 

INTRODUCTORY 

THIS NOTE PURCHASE AGREEMENT (the “Agreement”) is dated as of
December 20, 2013, and is between The Bank of New York Mellon, as trustee under that Trust Agreement Relating to the HASI SYB 2013-1 Trust dated as of December 20, 2013 (in such capacity, the “Trustee”),
[Redacted]                                        
(the “Purchaser”). 
 Whereas, HASI SYB I LLC, a Maryland limited liability company (“HASYB”), HAT SYB I
LLC, a Maryland limited liability company (“HATSYB”, and together with HASYB, the “Borrowers”), Hannon Armstrong Capital, LLC, a Maryland limited liability company (the “Servicer”) and the Trustee
are parties to that certain Trust Agreement Relating to HASI SYB 2013-1 Trust (the “Trust Agreement”), dated as of even date herewith, with respect to the formation and administration of the HASI SYB 2013-1 Trust (the
“Trust”) as set forth therein; and 
 Whereas, pursuant to the terms of the Trust Agreement, the Trustee will issue to the
Purchaser the HA SI SYB 2013-1 Trust Collateralized Debt Note (the “Note”) in the amount of the Purchase Price as further described herein. The Trustee will use the net proceeds from the issuance of the Note to simultaneously fund a
loan to the each Borrower pursuant to a secured Promissory Note dated as of December 20, 2013 issued by each such Borrower to the Trustee (each, a “Promissory Note”). 

NOW, THEREFORE, in consideration of and for the mutual benefit of the parties hereto, each of the undersigned
does hereby agree as follows: 
  

	SECTION 1.	AUTHORIZATION OF NOTES; DEFINITIONS. 

Section 1.1. Authorization of Notes. The Note will be issued under and pursuant to the Trust Agreement. The Note shall be issued in
the aggregate amount of the Purchase Price therefor and shall mature on the date set forth in the Note, subject to prior redemption and amortizing principal payments as provided in the Trust Agreement. Payments on the Note shall commence on the date
and in the amounts set forth in the Payment Schedule attached thereto. 
 Section 1.2. Definitions. Terms initially capitalized
in this Agreement and not defined herein have the meanings given to such terms in the Trust Agreement. In this Agreement, the following terms shall have the meanings set forth below: 

“Investment Company Act” shall mean the Investment Company Act of 1940, as amended. 

“Purchase Price” shall have the meaning set forth in Section 2. 

“Securities Act” shall mean the Securities Act of 1933, as amended. 

	SECTION 2.	PURCHASE OF NOTES. 

 (a) For the benefit of each of
the other parties hereto, the Trustee agrees, subject to the terms and conditions of this Agreement, the Trust Agreement and the delivery direction set forth in Section 3 below, and in reliance upon the representations and warranties set
forth herein and therein, that the Trust will issue and the Trustee will authenticate and deliver the Note to the Purchaser, on the Closing Date upon receipt in immediately available funds of the aggregate amount of the Original Note Principal
Balance (collectively, the “Purchase Price”) due with respect to the Note. The Note shall be registered in the name and denomination set forth for the Purchaser on Schedule I hereto. 

 

	SECTION 3.	CLOSING. 

 Upon the Closing Date, and subject to the provisions of
Section 2 and the satisfaction of the conditions set forth in this Section 3 and in Section 4, the Borrowers will direct the Trustee to deliver to the Purchaser the Note in the principal amount to be purchased by the
Purchaser, dated as of the Closing Date and duly executed by the Trustee on behalf of the Trust and authenticated by the Trustee, as provided in the Trust Agreement, against delivery by the Purchaser, by wire transfer, to the Trustee or its order of
immediately available funds in the amount of the related Purchase Price. 
  

	SECTION 4.	CONDITIONS TO THE CLOSING. 

 The
obligation of the Purchaser herein to purchase and pay for the Notes to be sold to the Purchaser on the Closing Date, and the obligation of each party to consummate the transactions contemplated hereby is subject to the fulfillment, on or prior to
the Closing Date, of the following conditions: 
 (a) Each Borrower, shall have each performed and complied with all of its
obligations contained in this Agreement and the other Transaction Documents required to be performed or complied with by it prior to or upon the Closing Date, and at the time thereof, after giving effect to the issuance and sale of the Notes, the
Trust Agreement and the other Transaction Documents shall be in full force and effect and no condition or event shall exist that constitutes or that, after notice or lapse of time or both, would constitute an Event of Default thereunder. 

(b) All corporate and other proceedings in connection with the transactions contemplated by the Transaction Documents, all
documents and instruments incident to such transactions and all proceedings under the Trust Agreement, shall be satisfactory to the Purchaser and the Trustee, and the Purchaser and the Trustee shall have received all such counterpart originals or
certified or other copies of such documents as the Purchaser and the Trustee may reasonably request. 
 (c) The Purchaser,
the Borrowers and the Trustee shall have each received executed copies of the Transaction Documents in a form acceptable to such Purchaser, the Borrowers and the Trustee. 
  

  
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 (d) The Purchaser shall have received opinions from counsel for the Trustee with
respect to matters as the Purchaser may reasonably request, addressed to such Purchaser, dated as of the Closing Date and otherwise reasonably satisfactory in substance and form to such Purchaser. 

(e) The Purchaser shall have received such additional certificates, instruments and other documents, including without
limitation certified copies of resolutions adopted by the Borrowers and the Trustee as such Purchaser may reasonably request, including, without limitation, to evidence the authority of the Trustee to act under the Trust Agreement. 

(f) All fees, charges and taxes in connection with the execution, delivery, registration, recordation, filing or publication of
any Transaction Document and any other agreement or instrument, financing statement or any publication of notice required to be executed, delivered, registered, recorded, filed or published to protect the validity and priority of the assignments,
liens and pledges in the Transaction Documents shall have been paid in full by the Borrowers. 
 (g) A PPN issued by
Standard & Poor’s CUSIP Service Bureau shall have 
 been obtained for the Note by the Borrowers. 

 

	SECTION 5.	REPRESENTATIONS AND WARRANTIES OF BORROWERS. 

Each Borrower represents and warrants that as of the Closing Date, the representations and warranties of such Borrower contained in the
Promissory Note and Security Agreement are true and correct on such date and are incorporated by reference with the same force and effect as though set forth herein in full. 
  

	SECTION 6.	REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER. 

(a) Purchaser acknowledges that the Notes have not been registered under the Securities Act and that the Trust has not and does not propose to
make a public offering of any Notes or other securities issued by the Trust. Purchaser further represents that it is acquiring the Notes not with a view to the distribution thereof, and that such Purchaser has no present intention of disposing of
the Notes in a distribution; it being understood, however, that the disposition of such Purchaser’s property shall at all times be and remain within its control. 

(b) Purchaser understands that the Trustee will not register the Trust created under the Trust Agreement as an investment company under the
Investment Company Act by reason of the exclusion under Section 3(c)(7) of the Investment Company Act, and, therefore, the protections of the Investment Company Act are not available to such Purchaser. 

(c) Purchaser represents and warrants that it is a “qualified purchaser” as that term is defined under the Investment Company Act and
the rules and regulations promulgated thereunder and its taxpayer identification number, legal name and jurisdiction of organization as provided on Schedule I hereto are true and correct. No Purchaser shall transfer all or any part of 

  
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its interest in the Notes issued by the Trustee (i) to any Person unless such Person is a “qualified purchaser” as that term is defined under the Investment Company Act and the
rules and regulations promulgated thereunder, (ii) to an investment company registered or required to be registered under the Investment Company Act or a private investment company relying on the exceptions from the definition of investment
company under Sections 3(c)(1) or 3(c)(7) of the Investment Company Act, (iii) to a Person formed for the specific purpose of purchasing the Notes, or (iv) in any manner that will result in the Trust or any party to this Agreement being
required to register as an investment company under the Investment Company Act. 
 (d) Purchaser represents and warrants that it is a
“qualified institutional buyer” as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act”. Purchaser is aware that the sale to it is being made in reliance on Rule 144A. Purchaser is
acquiring the Note for its own account or for the account of a qualified institutional buyer, and understands that such Note may be resold, pledged or transferred only (i) to a Person reasonably believed to be a qualified institutional buyer
that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or (ii) pursuant to another exemption from registration
under the Securities Act. 
 (e) Purchaser agrees not to sell, transfer, assign, participate, pledge or otherwise dispose of any portion of
its interest in any Note (or any interest therein) except in a transaction exempt from registration under the Securities Act, and in compliance with the provisions of §§2.09(b), 2.09(c) and 3.03(b) of the Trust Agreement. 

(f) Any transfer of a Note by a Purchaser in contravention of this section shall be void and ineffective and shall not bind or be recognized
by the Trustee or any other Person. No such purported transfer shall give any purported transferee any right to any net profits, net losses or distributions of the Trust Estate or any other rights of a Noteholder. 

(g) Purchaser acknowledges that the Notes have been issued in certificated form and are not eligible to be deposited with the Depository Trust
Company or any other book-entry or certificateless system. 
 (h) Purchaser acknowledges that the Trust Agreement and the Note have been
structured with the intention that the Notes will be treated as debt for all purposes, including federal income tax purposes. The Purchaser by its acquisition of the Note agrees for all purposes to treat the Note consistently with such intent. The
Purchaser agrees to treat the Note as debt for all tax and non-tax purposes, including regulatory and financial accounting purposes, and for applicable federal, state and local income and franchise tax law purposes and for purposes of any other tax
imposed on, or measured by, income. 
 (i) Purchaser acknowledges and agrees that, except as set forth in the Trust Agreement, no subsequent
transfer of the Note is permitted unless we cause our proposed transferee to provide to the Trustee, on behalf of the Trust, a written statement with certifications consistent with the representations and warranties set forth in this section in form
acceptable to the Trustee. 

  
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	SECTION 7.	REPRESENTATIONS AND WARRANTIES OF TRUSTEE. 

The representations and warranties of the Trustee contained in the Trust Agreement are true and correct on the date of this Agreement and are
incorporated by reference with the same force and effect as though set forth herein in full and, additionally, the Trustee represents and warrants that the representations and warranties of the Trustee set forth in Exhibit A hereto and the
following representations and warranties of the Trustee are true and correct on the date hereof: 
 1. The Notes issued on
the date hereof have been duly (i) executed by the Trustee on behalf of the Trust and (ii) authenticated by the Trustee in accordance with the terms of the Trust Agreement. 

2. The Notes being issued on the Closing Date hereof are entitled to the benefits accorded to the Notes under the Trust
Agreement. 
 The Trustee (a) will not be responsible for, and, except as set forth above, makes no representation or warranty as to,
the validity or adequacy of the Transaction Documents or the Notes and (b) will not be accountable for the Trust’s use of the proceeds from the Notes, or responsible for any statement of the Trust in any document issued in connection with
the sale of the Notes or in the Notes other than the Trustee’s certificate of authentication. 
  

	SECTION 8.	ADDITIONAL AGREEMENTS. 

 In no event shall the Trustee be required
to qualify the Notes for offering and sale under the laws of any state. Purchaser pursuant to this Agreement acknowledges and agrees that it is the intent that the Notes shall be treated as debt for United States federal income tax purposes and
further agrees to treat such Notes as debt for United States federal income tax purposes and prepare and file its own tax returns and forms consistently with such treatment. 
  

	SECTION 9.	SURVIVAL OF REPRESENTATIONS AND WARRANTIES. 

All representations and warranties contained in this Agreement or in the other Transaction Documents in connection with the transactions
contemplated by this Agreement shall survive the execution and delivery of this Agreement and such other Transaction Documents, any investigation at any time made by the Purchaser or on the Purchaser’ behalf, the purchase of any Notes under
this Agreement and any disposition or payment of the Notes. 

  
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	SECTION 10.	NOTICES, ETC. 

 All notices, requests, and other communications to
any party hereunder shall be in writing and shall be given to such party at its physical or electronic address set forth below, or such other address as such party may hereafter specify by notice to the other parties. Each such notice, request, or
other communication shall be effective (a) if given by mail, four days after such communication is deposited in the U.S. mail, first-class postage prepaid, in certified form, addressed as specified below, or (b) if given by any other means
(including, without limitation, by overnight courier service or electronic transmission), when receipt has been confirmed at the address specified below. 

Addresses for Notices: 
 To the
Purchaser: 
 [Redacted] 
  

 
 To the Trustee: 

The Bank of New York Mellon 

Corporate Trust - Asset-Backed Securities 

101 Barclay Street, Floor 7W 

New York, New York 10286 
 P:
212-815-8159 
 Attn: Jonathan Kaplan, Associate 

jonathan.kaplan@bnymellon.com 

To a Borrower: 
 c/o Hannon
Armstrong Capital, LLC 
 1906 Towne Centre Boulevard, Suite 370 

Annapolis, Maryland 21401 

Attention: Asset Management Department 

lhale@hannonarmstrong.com 
  

	SECTION 11.	MISCELLANEOUS. 

 (a) This Agreement shall inure to the benefit of and be binding
upon the successors and permitted assigns of each of the parties hereto. 

  
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 (b) This Agreement embodies the entire agreement and understanding among the parties hereto
regarding the purchase of the Notes and supersedes all prior agreements and understandings relating to the subject matter hereof. 
 (c)
This Agreement shall be governed by and construed in accordance with the laws of the State of New York (including Section 5-1401 of the General Obligations Law), without giving effect to the principles of conflict of laws other than
Section 5-1401. 
 (d) The headings in this Agreement are for purposes of reference only and shall not limit or otherwise affect the
meaning hereof. 
 (e) This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument. A signed and delivered facsimile copy of this Agreement, or a signed copy transmitted electronically in either a tagged image format file (TIFF) or a portable document format (PDF), shall be binding on the
party signing the facsimile or electronically transmitted copy, and such copy shall have the same effect as the original. Any party who delivers such a signature page agrees to later deliver an original counterpart to any party which requests it.

 (f) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR
DEFEND ANY RIGHTS (A) UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT HERETO, OR (B) ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY. 
 (g) This Agreement is being entered to and the Notes are issued pursuant and subject to the Trust Agreement incorporated
by reference herein as Exhibit B. The Trustee shall be entitled to all of the rights, protections and indemnities provided for in the Trust Agreement. 

[Signature pages omitted] 

  
 -7-EX-10.1

 Exhibit 10.1 

GUARANTY 

THIS GUARANTY, dated as of March 17, 2014 (this “Guaranty”),
is entered into by Joel Weinshanker (the “Guarantor”) in favor of Hastings Entertainment, Inc., a Texas corporation (the “Company”). Capitalized terms used herein and not otherwise defined shall have
the respective meanings assigned to such terms in the Merger Agreement (as defined below). 
 RECITAL 

Draw Another Circle, LLC, a Delaware corporation (“Parent”), Hendrix Acquisition Corp., a Texas corporation and a
wholly owned subsidiary of Parent (“Merger Sub”), and the Company are entering into that certain Agreement and Plan of Merger dated as of the date hereof (as amended, modified or supplemented from time to time, the
“Merger Agreement”), and the Guarantor is entering into this Guaranty as a condition and inducement to the Company’s willingness to enter into the Merger Agreement. 

NOW, THEREFORE, in consideration of the premises set forth above and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantor hereby consents and agrees as follows: 

AGREEMENT 
 1. Guaranty. Subject to
the terms and conditions contained herein, the Guarantor, intending to be legally bound, hereby absolutely, irrevocably and unconditionally guarantees, as a primary obligor and not merely a surety, to the Company the due, punctual and complete
discharge of all obligations of Parent and/or Merger Sub to (a) cause the Merger Consideration to be paid to holders of Company Common Stock, as provided in Section 1.5(a)(iii) of the Merger Agreement; (b) cause the payments to be
made to the holders of Company Options, as provided in Section 1.8 of the Merger Agreement, provided, for the avoidance of doubt, that the obligations in this clause “(b)” shall only apply to the extent the holder of a Company Option
is entitled to receive a payment pursuant to such Section and (c) cause the Company Expenses to be paid to the Company as provided in Section 7.3(d) of the Merger Agreement (the foregoing clauses “(a)”, “(b)” and
“(c)”, the “Obligations”). All payments hereunder shall be made in lawful money of the United States, by wire transfer of immediately available funds to an account designated by the Company. 

2. Nature of Guaranty. During the term hereof, this Guaranty is an unconditional, irrevocable and continuing guaranty of payment, and the Obligations
to which it applies or may apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon. Notwithstanding the foregoing, (i) any failure of a condition contained in the Merger Agreement or of the Company to
comply with the Merger Agreement (whether such breach results from fraud or misrepresentation of the Company or otherwise) that would relieve Parent and Merger Sub of their obligations under the Merger Agreement shall likewise relieve the Guarantor
of his obligations hereunder and (ii) the Guarantor shall be entitled to the benefit of any defenses or limitations of damages that may be available to Parent and Merger Sub under the 

 
Merger Agreement (other than those that may arise in consequence of any bankruptcy, insolvency, reorganization or similar proceedings affecting Parent or Merger Sub or any other Person interested
in the transactions contemplated by the Merger Agreement). 
 3. Certain Waivers and Acknowledgments. 

(a) To the fullest extent permitted by applicable Legal Requirements, the Guarantor hereby expressly and unconditionally waives any and
all rights or defenses arising by reason of any Legal Requirement which would otherwise require any election of remedies by the Company, promptness, diligence, notice of the acceptance of this Guaranty and of the Obligations, presentment, demand for
payment, notice of non-performance, default, dishonor and protest, notice of the Obligations incurred and all other notices of any kind (other than notices to Parent pursuant to the Merger Agreement or this Guaranty), all defenses which may be
available by virtue of any valuation, stay, moratorium law or other similar Legal Requirement now or hereafter in effect, any right to require the marshalling of assets of Parent or Merger Sub or any other Person interested in the transactions
contemplated by the Merger Agreement and all suretyship defenses generally (other than: (i) fraud by the Company or (ii) defenses to the payment of the Obligations under the Merger Agreement that are available to Parent).  

(b) That Guarantor acknowledges that it will receive substantial direct and indirect benefits from the transactions contemplated by the
Merger Agreement and that the waivers set forth in this Guaranty are knowingly made in contemplation of such benefits. 
 4. No Waiver; Exclusive
Remedy. 
 (a) No failure on the part of the Company to exercise, and no delay in exercising, any right, remedy or power
hereunder or under the Merger Agreement shall operate as a waiver thereof, nor shall any single or partial exercise by the Company of any right, remedy or power hereunder or under the Merger Agreement preclude any other or future exercise of any
right, remedy or power hereunder. The Company shall not have any obligation to proceed at any time or in any manner against, or exhaust any or all of the Company’s rights against, Parent or Merger Sub or any other Person liable for any of the
Obligations prior to proceeding against the Guarantor hereunder. 
 (b) The Company’s remedies against the Guarantor
under this Guaranty shall, and are intended to be, the sole and exclusive direct or indirect remedies available to the Company against the Guarantor.  

5. Representations and Warranties. The Guarantor hereby represents and warrants that: 

(a) the execution, delivery and performance of this Guaranty has been duly authorized by all necessary action and does not violate any
Legal Requirement or contractual restriction binding on the Guarantor or its assets, except any such violations that would not impair in any material respect the Guarantor’s obligations under this Agreement; 

 (b) except as set forth in the Merger Agreement, all consents, approvals, authorizations,
permits of, filings with and notifications to, any Governmental Body necessary for the due execution, delivery and performance of this Guaranty by the Guarantor have been obtained or made and all conditions thereof have been duly complied with, and
no other action by, and no notice to or filing with, any Governmental Body is required in connection with the execution, delivery or performance of this Guaranty; 

(c) this Guaranty constitutes a legal, valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance
with its terms, subject to (i) laws of general application relating to bankruptcy, insolvency and the relief of debtors, and (ii) rules of law governing specific performance, injunctive relief and other equitable remedies; 

(d) the Guarantor is solvent and the execution of this Agreement does not and will not render the Guarantor insolvent; and 

(e) the financial information included in the “Personal Financial Statement” of the Guarantor
furnished to the Special Committee of the Company’s Board of Directors in connection with this Guaranty (the “Financial Information”) present fairly the financial condition of the Guarantor as at the dates thereof.

 6. Covenants. The Guarantor covenants and agrees that, until the termination of this Guaranty pursuant to Section 9(b): 

(a) the Guarantor will not permit his tangible net worth, as determined by GAAP, to be less than four (4) times the amount of the
Obligations contemplated by Sections 1(a) and 1(b); and 
 (b) in the event all conditions to effect the Merger set forth in
Sections 6.1 and 6.2 of the Merger Agreement are satisfied and/or waived in accordance with the terms thereof and Parent is unable to obtain financing in an amount sufficient to permit it to satisfy the Obligations upon consummation of the Merger,
Guarantor shall use commercially reasonable efforts to promptly take, or cause to be taken, all actions necessary to provide Parent with financing in an amount sufficient to permit Parent to so satisfy the Obligations. 

7. Successors and Assigns. 
 (a)
Subject to the provisions of Section 7(b), this Guaranty shall inure to the benefit of the successors or permitted assigns of the parties who shall have, to the extent of their interests, the rights of the assigning party hereunder. 

 (b) This Guaranty is binding upon the parties’ successors and assigns. The Guarantor shall not assign its obligations
hereunder to any other Person without the prior written consent of the Company. The Company shall not assign this Guaranty (or its rights or obligations hereunder) to any other Person without the prior written consent of the Guarantor. Any purported
assignment in violation of this provision shall be void. 

 8. Notices. Any notice or other communication required or permitted to be delivered to any party under
this Guaranty shall be in writing and shall be deemed properly delivered, given and received (a) upon receipt when delivered by hand, (b) two business days after sent by registered mail or by courier or express delivery service,
(c) if sent by email transmission prior to 6:00 p.m. recipient’s local time, upon transmission when receipt is confirmed, or (d) if sent by email transmission after 6:00 p.m. recipient’s local time and receipt is confirmed, the
business day following the date of transmission; provided that in each case the notice or other communication is sent to the physical address or email address set forth beneath the name of such party below (or to such other physical address
or email address as such party shall have specified in a written notice given to the other parties hereto): 
 If to the Guarantor, to: 

Joel Weinshanker 
 c/o National
Entertainment Collectibles Association, Inc. 
 603 Sweetland Avenue 

Hillside, NJ 07205 
 E-mail:
joelw@necaonline.com 
 With a copy (which shall not constitute notice) to: 

Cooley LLP 
 Attn:
Cathy Hershcopf, Esq. 
 1114 Avenue of Americas 

New York, NY 10036 
 Email:
chershcopf@cooley.com 
 Cooley LLP 

Attn: Barbara Borden, Esq. 
 4401
Eastgate Mall 
 San Diego, CA 92121 

Email: bordenbl@cooley.com 
 If
to the Company, to: 
 Hastings Entertainment, Inc. 

Attn: John H. Marmaduke 
 3601
Plains Boulevard 
 Amarillo, Texas 79102 

Email: John.Marmaduke@goHastings.com 

with a copy to (which shall not constitute notice): 

Kelly Hart & Hallman LLP 

Attn: S. Benton Cantey 
 201 Main
Street, Suite 2500 
 Fort Worth, Texas 76102 

Email: benton.cantey@kellyhart.com 

 and 

Haynes and Boone, LLP 
 Attn: W.
Scott Wallace 
 2323 Victory Avenue, Suite 700 

Dallas, Texas 75219 
 Email:
scott.wallace@haynesboone.com 
 9. Continuing Guaranty; Termination. 

(a) Continuing Guaranty. Except as set forth in Section 9(b), this Guaranty may not be revoked or terminated and shall remain in
full force and effect and shall be binding on the Guarantor and his successors and assigns until the payment or satisfaction in full of all of the Obligations. 

(b) Termination. Notwithstanding anything to the contrary contained herein, this Guaranty shall terminate and be of no further force or
effect as of the earlier of (i) the irrevocable deposit of funds with the Paying Agent pursuant to Section 1.6(a) of the Merger Agreement along with the payment to the holders of Company Options pursuant to Section 1.8(b) of the
Merger Agreement and (ii) the termination of the Merger Agreement in accordance with its terms; provided, however, if, upon the termination of the Merger Agreement, Parent is obligated to pay the Company Expenses to the Company in accordance
with Section 7.3(d) of the Merger Agreement, this Guaranty shall survive the termination of the Merger Agreement with respect to the Obligations described in Section 1(c) until the payment to the Company of the Company Expenses as provided
in Section 7.3(d) of the Merger Agreement, at which time this Guaranty shall terminate and be of no further force or effect with respect to such Obligations.  

10. No Recourse. Notwithstanding anything that may be expressed or implied in this Guaranty or any document or instrument delivered in connection
herewith, the Company, by its acceptance of the benefits hereof, covenants, agrees and acknowledges that no Person (including, without limitation, National Entertainment Collectibles Association, Inc., a New Jersey corporation) other than the
Guarantor shall have any obligation hereunder and that this Guaranty shall not create any recourse or right of recovery against any Person other than Guarantor, whether by or through attempted piercing of the corporate veil, by or through a claim by
or on behalf of Parent against any Person, whether by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any Legal Requirement, or otherwise. 

11. Enforcement. Notwithstanding anything to the contrary contained herein, nothing in this Guaranty shall prevent the Company from seeking to enforce
the Merger Agreement in accordance with its terms against Parent and Merger Sub. 
 12. Governing Law; Jurisdiction; Service of Process. This
Guaranty shall be governed by, and construed in accordance with, the laws of the State of Texas, regardless of the laws that 

 
might otherwise govern under applicable principles of conflicts of laws thereof. Subject to Section 8.5(c) of the Merger Agreement, in any action or proceeding arising out of or relating to
this Guaranty: (i) each of the parties irrevocably and unconditionally consents and submits to the exclusive jurisdiction and venue of the state and federal courts located in the Potter County, Texas and irrevocably waives, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such action or proceeding in any such court or that any such action or proceeding brought in any such court has been brought in an
inconvenient forum; (ii) if any such action is commenced in a state court, then, subject to applicable Legal Requirements, any party may petition for the removal of such action to any federal court located in the Northern District of Texas; and
(iii) each of the parties irrevocably consents to service of process by first class certified mail, return receipt requested, postage prepaid, to the address at which such party is to receive notice in accordance with Section 8. 

13. Attorneys’ Fees. In any action at law or suit in equity to enforce this Guaranty or the rights of any of the parties hereunder, the prevailing
party in such action or suit shall be entitled to receive a sum for its reasonable attorneys’ fees and all other reasonable costs and expenses incurred in such action or suit. 

14. Severability. Any term or provision of this Guaranty that is invalid or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions of this Guaranty or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction. If a final judgment of a court of competent
jurisdiction declares that any term or provision of this Guaranty is invalid or unenforceable, the parties hereto agree that the court making such determination shall have the power to limit such term or provision, to delete specific words or
phrases or to replace such term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Guaranty shall be valid and
enforceable as so modified. In the event such court does not exercise the power granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable term or provision with a valid and enforceable term or provision
that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term or provision. 
 15. Entire
Agreement; Amendments. This Guaranty constitutes the entire agreement, and supersedes all other prior agreements and understandings, both written and oral, between the parties hereto with respect to the subject matter hereof. No amendment,
modification or waiver of any provision hereof shall be enforceable unless approved in writing by each of the Company and the Guarantor. 
 16.
Headings. The descriptive headings herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Guaranty. 

17. No Third Party Beneficiaries. Nothing set forth in this Guaranty shall be construed to confer upon or give to any Person other than the Company any
rights or remedies under or by reason of this Guaranty or to confer upon or give to any Person any rights or remedies against any Person other than the Guarantor under or by reason of this Guaranty. 

 18. Counterparts. This Guaranty may be executed in several counterparts, each of which shall be deemed an
original and all of which shall constitute one and the same instrument. The exchange of a fully executed Guaranty (in counterparts or otherwise) by PDF shall be sufficient to bind the parties to the terms and conditions of this Guaranty. 

[Remainder of Page Intentionally Left Blank] 

 IN WITNESS WHEREOF, the undersigned have caused this Guaranty to be duly executed and delivered
as of the date first written above. 
  

					
	GUARANTOR
	
	 /s/ Joel Weinshanker

	Joel Weinshanker
	
	HASTINGS ENTERTAINMENT, INC.
		
	By:	 	 /s/ Dan Crow

		 	Name:	 	Dan Crow
		 	Title:	 	Chief Financial Officer

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