Document:

exv10w12

Exhibit 10.12

PLEDGE AND SECURITY AGREEMENT

     THIS PLEDGE AND SECURITY AGREEMENT is made this 29th day of March,
2006, by and among (i) GAIN CAPITAL HOLDINGS, INC. (“Pledgor”) and (ii) SILICON VALLEY
BANK, a California-chartered bank, with its principal place of business at 3003 Tasman
Drive, Santa Clara, California 95054 (“SVB”), as agent for the Lenders (“Agent”) and
JPMORGAN CHASE BANK, N.A. (“JPMORGAN”) (SVB and JPMORGAN each, individually, a “Lender”
and collectively, the “Lenders”).

Recitals

     Lenders agreed to make advances of money and to extend certain financial
accommodations to Pledgor pursuant to a Loan and Security Agreement dated as of March
29, 2006 (the “Loan Agreement”). To secure the obligations set forth in the Loan
Agreement, Pledgor has agreed to pledge to Agent and Lenders Pledgor’s membership
interest (the “Membership Interest”) in Gain Holdings, LLC (“Gain Holdings”). Any
capitalized terms used without definition herein shall have the meanings assigned to
them in the Loan Agreement.

     NOW, THEREFORE, Pledgor, Agent and Lenders agree as follows:

     1. Pledge of Membership Interest.

          (a) Pledgor hereby pledges, assigns and delivers to Agent for the ratable benefit
of Lenders and grants to Agent for the ratable benefit of Lenders a security interest in all
of the Pledgor’s right, title and interest
in and to the Membership Interest, together with all proceeds and substitutions
thereof, all cash, certificates and
other moneys and property paid thereon, all rights to subscribe for securities
declared or granted in connection
therewith, and all other cash and noncash proceeds of the foregoing (all
hereinafter called the “Pledged Collateral”),
as security for the prompt performance of all of the Obligations (the “Secured
Indebtedness”), and Pledgor’s obligations hereunder.

          (b) The term “Pledged Collateral” shall also include any securities, instruments or
distributions of any kind issuable, issued or received by Pledgor upon conversion of, in
respect of, or in exchange for any other Pledged Collateral, including, but not limited
to, those arising from a distribution, reclassification, reorganization, merger,
consolidation, sale of assets or other exchange of securities or any dividends or other
distributions of any kind upon or with respect to the Pledged Collateral.

          (c) The certificate or certificates for the Membership Interest included in the
Pledged Collateral, accompanied by an instrument of assignment duly executed in blank by
Pledgor, have been, or will be
immediately be, delivered by Pledgor to Agent. Pledgor shall cause the books of
Gain Holdings to reflect the pledge
of the Membership Interest. Upon the occurrence of an Event of Default hereunder,
Agent may effect the transfer of
any certificates included in the Pledged Collateral into the name of Agent and
cause new certificates representing
such securities to be issued in the name of Agent. Pledgor will execute and deliver
such documents, and take or
cause to be taken such actions, as Agent may reasonably request to perfect or
continue the perfection of Agent’s and Lenders’ security interest in the Pledged Collateral.

     2. Representations, Warranties and Covenants. Pledgor represents and
warrants to and covenants with Agent and each Lender that:

          (a) The Pledged Collateral is owned by Pledgor free and clear of any security
interests, liens or encumbrances;

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          (b) Pledgor has full power and authority to create a first lien on the Pledged
Collateral in favor of Agent and Lenders and no disability or contractual obligation exists which
would prohibit Pledgor from
pledging the Pledged Collateral pursuant to this Pledge Agreement, and Pledgor will
not assign, create or permit to
exist any other claim to, lien or encumbrance upon, or security interest in any of
the Pledged Collateral;

          (c) There arc no subscriptions or other options exercisable with respect to the
Membership Interest; and

          (d) The Membership Interest has been duly authorized and validly issued, and is
fully paid and non-assessable; and

          (e) The Pledged Collateral is not the subject of any present or threatened suit,
action, arbitration, administrative or other proceeding, and Pledgor knows of no reasonable
grounds for the institution of any such proceedings.

     All the above representations and warranties shall survive the making of this Agreement.

     3. Voting Prior to Demand. Unless an Event of Default (as defined below)
shall have occurred and be continuing, Pledgor shall be entitled to exercise any voting rights with respect
to the Pledged Collateral and to
give consents, waivers and ratifications in respect thereof, provided that
no vote shall be cast or consent, waiver or
ratification given or action taken which would be inconsistent with any of the
terms of this Agreement or which
would constitute or create any violation of any of such terms. All such rights of
Pledgor to vote and give consents,
waiver and ratifications shall upon notice to Pledgor cease in case such an Event
of Default hereunder shall occur and be continuing.

     4. Events of Default. Each of the following shall constitute an event of
default (“Event of Default”) hereunder:

          (a) The occurrence of an Event of Default, as defined in the Loan Agreement;

          (b) The breach of any provision of this Agreement by Pledgor or the failure by
Pledgor to observe or perform any of the provisions of this Agreement; or

          (c) The breach of any provision of the Loan Agreement by Pledgor or the failure by
Pledgor to observe or perform any of the provisions of the Loan Agreement.

     5. Remedies Upon Default.

          (a) Upon the occurrence and during the continuance of an Event of Default, Agent
and each Lender shall have the right to exercise all such rights as a secured party under
the Uniform Commercial Code of the
State of New Jersey as it, in its sole judgment, shall deem necessary or
appropriate, including the right to sell all or
any part of the Pledged Collateral at one or more public or private sales upon ten
(10) days’ written notice to
Pledgor, and any such sale or sales may be made for cash, upon credit, or for
future delivery, and in connection
therewith, Agent may grant options, provided that any such terms or options shall,
in the best judgment of Agent, be extended only in order to obtain the best possible price.

          (b) Pledgor recognizes that Agent may be unable to effect a public sale of all or a
part of the Pledged Collateral, but may be compelled to resort to one or more private sales to
a restricted group of purchasers
who will be obliged to agree, among other things, to acquire the Pledged Collateral
for their own account, for

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investment and without a view to the distribution or resale thereof. Pledgor understands
that private sales so made may be at prices and on other terms less favorable to the
seller than if the Pledged Collateral were sold at public sales. Pledgor agrees that
private sales made under the foregoing circumstances shall be deemed to have been made
in a commercially reasonable manner.

          (c) After the sale of any of the Pledged Collateral, Agent may deduct all
reasonable legal and other expenses and attorney’s fees for preserving, collecting,
selling and delivering the Pledged Collateral and for enforcing its rights with respect
to the Secured Indebtedness, and shall apply the residue of the proceeds to the Secured
Indebtedness in such manner as Agent in its reasonable discretion shall determine, and
shall pay the balance, if any to Pledgor.

     6. Amendment of Loan Documents. Pledgor authorizes Agent, without notice or
demand and without affecting its liability hereunder, from time to time to (a) renew, extend,
or otherwise change the terms of the
Loan Documents, as defined in the Loan Agreement, or any part thereof; (b) take and
hold security for the payment
of the Loan Documents, and exchange, enforce, waive and release any such security;
and (c) apply such security and
direct the order or manner of sale thereof as Agent in its sole discretion may
determine.

     7. Intentionally omitted.

     8. Intentionally omitted.

     9. Indemnification. Pledgor agrees to defend, indemnify and hold harmless
Agent and each Lender and its officers, employees, and agents against: (a) all obligations, demands,
claims, and liabilities claimed or
asserted by any other party in connection with the transactions contemplated by
this Agreement, and (b) all losses or
expenses in any way suffered, incurred, or paid by Agent or any Lender as a result
of or in any way arising out of,
following, or consequential to transactions between Agent or any Lender and
Pledgor, under this Agreement
(including without limitation attorneys’ fees and expenses), except for
obligations, demands, claims, liabilities,
losses and Agent and/or Lender expenses caused by Agent’s and or any Lender’s gross
negligence or willful misconduct.

     10. Notices. Unless otherwise provided in this Agreement, all notices or
demands by any party relating to this Agreement or any other agreement entered into in connection
herewith shall be in writing and (except
for financial statements and other informational documents which may be sent by
first-class mail, postage prepaid)
shall be personally delivered or sent by certified mail, postage prepaid, return
receipt requested, or by prepaid
telefacsimile to Pledgor or to Agent, as the case may be, at its addresses set
forth below. Such notice shall be
deemed effective three (3) days after deposit if sent by first class mail, upon
actual receipt if personally delivered or
sent by certified mail, or upon confirmed transmission if sent via telefacsimile.

	 	 If to Pledgor	 	GAIN CAPITAL HOLDINGS, INC.

550 Hills Drive

Bedminster, New Jersey 07921

Attn: Chief Executive Officer

 FAX: (908) 731-0701
	 
	 	 If to Agent	 	Silicon Valley Bank

400 Madison Avenue, Suite 15A

New York, New York 10017

Attn: Mr. Michael Moretti

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	 	 	 	Fax: (212) 688-5994
	 
	 	With copy to: 	 	Riemer & Braunstein LLP

Three Center Plaza

Boston, Massachusetts 02108

Attn: David A. Ephraim, Esquire

FAX: (617) 880-3456
	 
	 	If to JPMorgan:: 	 	JPMorgan Chase Bank, N.A.

695 Route 46 West

Suite 100

Fairfield, New Jersey 07004-1592

Attn: Charles Tamayo 

FAX: (973) 439-5011

     The parties hereto may change the address at which they are to receive
notices hereunder, by notice in writing in the foregoing manner given to the
other.

     11. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER

          The laws of the State of New Jersey shall apply to this Agreement. PLEDGOR
ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, UNCONDITIONALLY, THE
NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN
THE STATE OF NEW JERSEY IN ANY ACTION, SUIT, OR PROCEEDING OF ANY KIND, AGAINST IT WHICH
ARISES OUT OF OR BY REASON OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR ANY REASON
AGENT OR ANY LENDER CANNOT AVAIL ITSELF OF THE COURTS OF THE STATE OF NEW JERSEY,
PLEDGOR ACCEPTS JURISDICTION OF THE COURTS AND VENUE IN SANTA CLARA COUNTY, CALIFORNIA.

     PLEDGOR, AGENT AND EACH LENDER EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY
OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES
A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY REPRESENTS AND
WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY
AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

     12. This Agreement may not be amended or modified except by a written
instrument signed by Agent, each Lender and Pledgor.

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     13. This Agreement and the agreements and instruments executed in connection
therewith constitute the entire agreement between Agent, Lenders and Pledgor with respect to the subject
matter hereof and supersede all
prior agreements, understandings, offers and negotiations, oral or written.

     14. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which shall together constitute one and the same document.

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EXECUTED
as of this 29th day of March, 2006.

	 	 	 	 	 
	 	PLEDGOR:

GAIN CAPITAL HOLDINGS, INC.

 	 
	 	By  	/s/ Mark Galant
 	 
	 	 	Name:  	Mark Galant  	 
	 	 	Title:  	CEO 	 
	 
	 	LENDERS:

SILICON VALLEY BANK, as Agent and as a 

LENDER

 	 
	 	By  	/s/ Michael Moretti
 	 
	 	 	Name:  	Michael Moretti 	 
	 	 	Title:  	SVP 	 
	 
	 	JPMORGAN CHASE BANK, N.A., as LENDER

 	 
	 	By  	/s/
Bradley J. Thomson
 	 
	 	 	Name:  	Bradley J. Thomson	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Pledge Agreement

6exv10w13

Exhibit 10.13

UNCONDITIONAL GUARANTY

     This continuing Unconditional Guaranty (“Guaranty”) is entered into as of March
29, 2006, by Gain Holdings, LLC (“Guarantor”), in favor of Silicon Valley Bank
(“SVB”), as agent for the Lenders (“Agent”) and JPMorgan Chase Bank, N.A. (“JPMorgan”)
(SVB and JPMorgan are each a “Lender”, and collectively the “Lenders”).

Recitals

     A. Concurrently herewith, Agent, Lenders and Gain Capital Holdings, Inc., Inc., a
Delaware corporation (“Borrower”), are entering into that certain Loan and Security
Agreement dated as of March 29, 2006 (as amended, restated, or otherwise modified from time to time, the
“Loan Agreement”) pursuant to which Lenders have agreed to make certain advances of money and to extend
certain financial accommodations to Borrower (collectively, the “Loans”), subject to the terms and
conditions set forth therein. Capitalized terms used but not otherwise defined herein shall have the
meanings given them in the Loan Agreement.

     B. In consideration of the agreement of Lenders to make the Loans to Borrower
under the Loan Agreement, Guarantor is willing to guaranty the full payment and performance
by Borrower of all of its obligations thereunder and under the other Loan Documents, all as further set
forth herein.

     C. Guarantor is a wholly-owned subsidiary of Borrower and will obtain substantial
direct and indirect benefit from the Loans made by Lenders to Borrower under the Loan
Agreement.

     Now, Therefore, to induce Agent and Lenders to enter into the Loan
Agreement, and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, and intending to be legally bound, Guarantor hereby
represents, warrants, covenants and agrees as follows:

     Section 1. Guaranty.

          1.1 Unconditional Guaranty of Payment. In consideration of the foregoing,
Guarantor hereby irrevocably, absolutely and unconditionally guarantees to Agent and
Lenders the prompt and complete payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of all Obligations. Guarantor agrees that it shall execute such other documents
or agreements and take such action as Agent and any Lender shall reasonably request to effect the
purposes of this Guaranty. The obligations of Guarantor hereunder shall not be limited or otherwise affected
whatsoever by Section 5.10 of the Loan Agreement.

          1.2 Separate Obligations. These obligations are independent of
Borrower’s obligations and separate actions may be brought against Guarantor (whether action
is brought against Borrower or whether Borrower is joined in the action).

     Section 2. Representations and Warranties.

          Guarantor hereby represents and warrants that:

          (a) Guarantor (i) is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware; (ii) is duly
qualified to do business and is in good standing in every jurisdiction where the
nature of its business requires it to be so qualified (except where the failure to so
qualify would not have a material adverse effect on Guarantor’s condition, financial
or otherwise, or on Guarantor’s ability to pay or perform the obligations hereunder);
and (iii) has all requisite power and authority to execute and deliver this Guaranty
and each Loan Document executed and delivered by Guarantor pursuant to the Loan
Agreement or this Guaranty and to perform its obligations thereunder and hereunder.

 

 

          (b) The execution,
delivery and performance by Guarantor of this Guaranty (i) are
within Guarantor’s powers and have been duly authorized by all necessary action;
(ii) do not contravene Guarantor’s charter documents or any law or any contractual restriction binding
on or affecting Guarantor or by which Guarantor’s property may be affected; (iii) do not require any
authorization or approval or other action by, or any notice to or filing with, any governmental authority or
any other Person under any indenture, mortgage, deed of trust, lease, agreement or other instrument to which
Guarantor is a party or by which Guarantor or any of its property is bound, except such as have been
obtained or made; and (iv) do not result in the imposition or creation of any Lien upon any property of
Guarantor.

          (c) This Guaranty is a valid and binding obligation of Guarantor, enforceable
against Guarantor in accordance with its terms, except as the enforceability thereof may
be subject to or limited by bankruptcy, insolvency, reorganization, arrangement, moratorium or other
similar laws relating to or affecting the rights of creditors generally.

          (d) There is no action, suit or proceeding affecting Guarantor pending or
threatened before any court, arbitrator, or governmental authority, domestic or foreign,
which may have a material adverse effect on the ability of Guarantor to perform its obligations under this
Guaranty.

          (e) Guarantor’s obligations hereunder are not subject to any offset or
defense against Agent, any Lender, or Borrower of any kind.

          (f) The most recent audited and unaudited financial statements of
Guarantor, copies of which have been furnished to Agent, fairly present the financial
position and results of operations for Guarantor for the dates and periods purported
to be covered thereby, all in accordance with GAAP, and there has been no material
adverse change in the financial position or operations of Guarantor since the date of
such financial statements.

          (g) To ensure the legality, validity, enforceability or admissability into
evidence of this Guaranty in each of the jurisdictions in which Guarantor is
incorporated or organized and any jurisdiction in which Guarantor conducts business,
it is not necessary that (i) this Guaranty be filed or recorded with any court or
other authority in such jurisdiction, (ii) any other filings, notices, authorizations,
approvals be obtained or other actions taken, or (iii) any stamp or similar tax be
paid on or with respect to this Guaranty, or, if any of the foregoing actions are
necessary, they have been duly taken.

          (h) Neither Guarantor nor its property has any immunity from jurisdiction of any
court or from any legal process (whether through service or notice, attachment prior
to judgment, attachment in aid of execution, execution or otherwise) under applicable
law.

          (i) The incurrence of Guarantor’s obligations under this Guaranty will
not cause Guarantor to (i) become insolvent; (ii) be left with unreasonably small
capital for any business or transaction in which Guarantor is presently engaged or
plans to be engaged; or (iii) be unable to pay its debts as such debts mature.

          (j) Guarantor covenants, warrants, and represents to Agent and each Lender that
all representations and warranties contained in this Guaranty shall be true at the
time of Guarantor’s execution of this Guaranty, and shall continue to be true so long
as this Guaranty remains in effect. Guarantor expressly agrees that any
misrepresentation or breach of any warranty whatsoever contained in this Guaranty
shall be deemed material.

     Section 3. General Waivers. Guarantor waives:

          (a) Any right to require Agent and/or Lenders to (i) proceed against Borrower or
any other person; (ii) proceed against or exhaust any security or (iii) pursue any
other remedy. Agent or any Lender may exercise or not exercise any right or remedy it
has against Borrower or any security it holds (including the right to foreclose by
judicial or nonjudicial sale) without affecting Guarantor’s liability hereunder.

 

 

          (b) Any
defenses from disability or other defense of Borrower or from the cessation of Borrowers liabilities.

          (c) Any setoff, defense or counterclaim against Agent or any Lender.

          (d) Any defense from the absence, impairment or loss of any right of reimbursement
or subrogation or any other rights against Borrower. Until Borrower’s obligations
to Lenders have been paid, Guarantor has no right of subrogation or reimbursement or other rights against
Borrower.

          (e) Any
right to enforce any remedy that Agent or any Lender has against Borrower.

          (f) Any rights to participate in any security held by Agent or any Lender.

          (g) Any demands for performance, notices of nonperformance or of new or additional
indebtedness incurred by Borrower to Agent or any Lender. Guarantor is responsible
for being and keeping itself informed of Borrower’s financial condition.

          (h) The benefit of any act or omission by Agent or any Lender which directly or
indirectly results in or aids the discharge of Borrower from any of the Obligations by
operation of law or otherwise.

     Section 4. Real Property Security Waiver. Guarantor acknowledges that, to the
extent Guarantor has or may have rights of subrogation or reimbursement against
Borrower for claims arising out of this Guaranty, those rights may be impaired or
destroyed if Agent or any Lender elects to proceed against any real property security
of Borrower by non-judicial foreclosure. That impairment or destruction could, under
certain judicial cases and based on equitable principles of estoppel, give rise to a
defense by Guarantor against its obligations under this Guaranty. Guarantor waives
that defense and any others arising from Agent’s or any Lender’s election to pursue
non-judicial foreclosure. Guarantor waives the benefits, if any, of any statutory or
common law rule that may permit a subordinating creditor to assert any defenses of a
surety or guarantor, or that may give the subordinating creditor the right to require
a senior creditor to marshal assets, and Guarantor agrees that it shall not assert any
such defenses or rights.

     Section 5. Reinstatement. Notwithstanding any provision of the Loan Agreement to
the contrary, the liability of Guarantor hereunder shall be reinstated and revived and
the rights of Agent and Lenders shall continue if and to the extent that for any
reason any payment by or on behalf of Guarantor or Borrower is rescinded or must be
otherwise restored by Agent and Lenders, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise, all as though such amount had not been
paid. The determination as to whether any such payment must be rescinded or restored
shall be made by Agent and Lenders in their sole discretion; provided, however, that
if Agent or any Lender chooses to contest any such matter at the request of Guarantor,
Guarantor agrees to indemnify and hold harmless Agent or such Lender from all costs
and expenses (including, without limitation, reasonable attorneys’ fees) of such
litigation. To the extent any payment is rescinded or restored, Guarantor’s
obligations hereunder shall be revived in full force and effect without reduction or
discharge for that payment.

     Section 6. No Waiver; Amendments. No failure on the part of Agent or any Lender to
exercise, no delay in exercising and no course of dealing with respect to, any right
hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the exercise of any
other right. The remedies herein provided are cumulative and not exclusive of any remedies
provided by law. This Guaranty may not be amended or modified except by written agreement
between Guarantor, Agent and each Lender, and no consent or waiver hereunder shall be
valid unless in writing and signed by Agent and each Lender.

     Section 7. Compromise and Settlement. No compromise, settlement, release,
renewal, extension, indulgence, change in, waiver or modification of any of the
Obligations or the release or

 

 

discharge of Borrower from the performance of any of the Obligations shall
release or discharge Guarantor from this Guaranty or the performance of the
obligations hereunder.

     Section 8. Notice. Any notice or other communication herein required or permitted
to be given shall be in writing and may be delivered in person or sent by facsimile
transmission, overnight courier, or by United States mail, registered or certified,
return receipt requested, postage prepaid and addressed as follows:

	 	 	 	 	 
	 

	 	If to Guarantor:
	 	Gain Holdings, LLC
	 

	 	 	 	550 Hills Drive
	 

	 	 	 	Bedminster, New Jersey 07921
	 

	 	 	 	Telephone: (908) 731-0700
	 

	 	 	 	Facsimile: (908) 731-0701
	 

	 	 	 	Attn: Chief Executive Officer
	 
	 	 	 	 
	 

	 	If to Agent:
	 	Silicon Valley Bank
	 

	 	 	 	400 Madison Avenue Suite 15A
	 

	 	 	 	New York, New York 10017
	 

	 	 	 	Attention: Mr. Michael Moretti
	 

	 	 	 	Telephone No.: (212) 821-8965
	 

	 	 	 	Facsimile No.: (212) 688-5994
	 
	 	 	 	 
	 

	 	with copies to:
	 	Riemer & Braunstein LLP
	 

	 	 	 	Three Center Plaza
	 

	 	 	 	Boston, Massachusetts 02108
	 

	 	 	 	Attention: David A. Ephraim, Esquire
	 

	 	 	 	Telephone No.: (617) 523-9000
	 

	 	 	 	Facsimile No.: (617) 880-3456
	 
	 	 	 	 
	 

	 	If to JPMorgan:
	 	JPMorgan Chase Bank, N.A.
	 

	 	 	 	695 Route 46 West
	 

	 	 	 	Suite 100
	 

	 	 	 	Fairfield, New Jersey 07004-1592
	 

	 	 	 	Attn: Charles Tamayo
	 

	 	 	 	Fax: (973) 439-5011
	 

	 	 	 	Telephone:                                         

or at such other address as may be substituted by notice given as herein provided.
Every notice, demand, request, consent, approval, declaration or other communication
hereunder shall be deemed to have been duly given or served on the date on which
personally delivered or sent by facsimile transmission or three (3) Business Days
after the same shall have been deposited in the United States mail. If sent by
overnight courier service, the date of delivery shall be deemed to be the next
Business Day after deposited with such service.

     Section 9. Entire Agreement. This Guaranty constitutes and contains the entire
agreement of the parties and supersedes any and all prior and contemporaneous
agreements, negotiations, correspondence, understandings and communications between
Guarantor, Agent and Lenders, whether written or oral, respecting the subject matter
hereof.

     Section 10. Severability. If any provision of this Guaranty is held to be
unenforceable under applicable law for any reason, it shall be adjusted, if possible,
rather than voided in order to achieve the intent of Guarantor, Agent and Lenders to
the extent possible. In any event, all other provisions of this Guaranty shall be
deemed valid and enforceable to the full extent possible under applicable law.

 

 

     Section 11. Subordination of Indebtedness. Any indebtedness or other obligation
of Borrower now or hereafter held by or owing to Guarantor is hereby subordinated in
time and right of payment to all obligations of Borrower to Agent or any Lender,
except as such indebtedness or other obligation is expressly permitted to be paid
under the Credit Agreement; and such indebtedness of Borrower to Guarantor is
assigned to Agent for the benefit of Lenders as security for this Guaranty, and if
Agent so requests shall be collected, enforced and received by Guarantor in trust for
Agent for the benefit of Lenders and to be paid over to Agent for the benefit of
Lenders on account of the Obligations of Borrower to Agent and Lenders, but without
reducing or affecting in any manner the liability of Guarantor under the other
provisions of this Guaranty. Any notes now or hereafter evidencing such indebtedness
of Borrower to Guarantor shall be marked with a legend that the same are subject to
this Guaranty and shall be delivered to Agent.

     Section 12. Payment of Expenses. Guarantor shall pay, promptly on demand, all
Expenses incurred by Agent and Lenders in defending and/or enforcing this Guaranty.
For purposes hereof, “Expenses” shall mean costs and expenses (including reasonable
fees and disbursements of any law firm or other external counsel and the allocated
cost of internal legal services and all disbursements of internal counsel) for
defending and/or enforcing this Guaranty (including those incurred in connection with
appeals or proceedings by or against any Guarantor under the United States Bankruptcy
Code, or any other bankruptcy or insolvency law, including assignments for the
benefit of creditors, compositions, extensions generally with its creditors, or
proceedings seeking reorganization, arrangement, or other relief).

     Section 13. Assignment; Governing Law. This Guaranty shall be binding upon and
inure to the benefit of Guarantor, Agent and each Lender and their respective
successors and assigns, except that Guarantor shall not have the right to assign its
rights hereunder or any interest herein without the prior written consent of Agent and
each Lender, which may be granted or withheld in Agent’s and any Lender’s sole
discretion. Any such purported assignment by Guarantor without Agent’s and each
Lender’s written consent shall be void. This Guaranty shall be governed by, and
construed in accordance with, the laws of the State of New Jersey without regard to
principles thereof regarding conflict of laws.

     Section 14. PERSONAL JURISDICTION. GUARANTOR HEREBY IRREVOCABLY AGREES THAT ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY OF THE AGREEMENTS,
DOCUMENTS OR INSTRUMENTS DELIVERED IN CONNECTION HEREWITH MAY BE BROUGHT IN THE STATE
AND FEDERAL COURTS LOCATED IN THE STATE OF NEW JERSEY AS AGENT MAY ELECT (PROVIDED THAT
GUARANTOR ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A
COURT LOCATED OUTSIDE OF THE STATE OF NEW JERSEY), AND, BY EXECUTION AND DELIVERY
HEREOF, GUARANTOR ACCEPTS AND CONSENTS TO, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS AND AGREES THAT SUCH JURISDICTION SHALL BE
EXCLUSIVE, UNLESS WAIVED BY AGENT AND EACH LENDER IN WRITING, WITH RESPECT TO ANY
ACTION OR PROCEEDING BROUGHT BY GUARANTOR AGAINST AGENT OR ANY LENDER. NOTHING HEREIN
SHALL LIMIT THE RIGHT OF AGENT AND LENDERS TO BRING PROCEEDINGS AGAINST GUARANTOR IN
THE COURTS OF ANY OTHER JURISDICTION. GUARANTOR HEREBY WAIVES, TO THE FULL EXTENT
PERMITTED BY LAW, ANY RIGHT TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT
BEFORE SAID COURTS ON THE BASIS OF FORUM NON CONVENIENS.

     Section 15. WAIVER OF JURY TRIAL. EACH OF AGENT, EACH LENDER, AND GUARANTOR HEREBY
WAIVES, TO THE FULL EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS GUARANTY. 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 PARTY HERETO HAVE BEEN
INDUCED TO

 

 

ENTER INTO THIS GUARANTY AND ANY RELATED INSTRUMENTS, AS APPLICABLE, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 15.

 

 

	 	 	 	 	 
	 	GUARANTOR

GAIN HOLDINGS, LLC

 	 
	 	By:  	/s/ Mark Galant
 	 
	 	 	Name:  	Mark Galant 	 
	 	 	Title:  	President 	 
	 

Signature Page to Unconditional Guaranty

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