Document:

Prepared by R.R. Donnelley Financial -- Guarantee from GTR Group

 EXHIBIT 4.8 
  
 GUARANTEE 
  
 September 25, 2000 
  
 Congress Financial Corporation (Central) 
 150 South Wacker Drive, Suite 2200 
 Chicago, Illinois 60606 
  
 Re: Mad Catz Inc. (“Borrower”) 
  
 Gentlemen: 
  
 Congress Financial Corporation (Central) (“Lender”) and Borrower
have entered into certain financing arrangements pursuant to which Lender may make loans and advances and provide other financial accommodations to Borrower as set forth in the Loan Agreement, dated September 25, 2000 by and between Borrower and
Lender (as the same now exists or may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced, the “Loan Agreement”), and other agreements, documents and instruments referred to therein or at any time executed
and/or delivered in connection therewith or related thereto, including, but not limited to, this Guarantee (all of the foregoing, together with the Loan Agreement, as the same now exist or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced, being collectively referred to herein as the “Financing Agreements”). 
  
 Due to the close business and financial relationships between Borrower and the undersigned (“Guarantor”), in consideration of the benefits which will accrue to Guarantor and as an inducement for and in consideration
of Lender making loans and advances and providing other financial accommodations to Borrower pursuant to the Loan Agreement and the other Financing Agreements, Guarantor hereby agrees in favour of Lender as follows: 
  
 1.  Guarantee 
  
 (a)  Guarantor absolutely and unconditionally guarantees and agrees to be liable for the full and indefeasible payment and performance when due of
the following (all of which are collectively referred to herein as the “Guaranteed Obligations”): (i) all obligations, liabilities and indebtedness of any kind, nature and description of Borrower to Lender and/or its affiliates, including
principal, interest, charges, fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, whether arising under the Loan Agreement, the other Financing Agreements or otherwise, whether now existing or
hereafter arising, whether arising before, during or after the initial or any renewal term of the Loan Agreement or after the commencement of any case with respect to Borrower under the United States Bankruptcy Code, the Bankruptcy and Insolvency
Act (Canada), the Companies Creditors’ Arrangement Act (Canada) or any similar statute in any other jurisdiction (“Insolvency Legislation”) (including, without limitation, the payment of interest and other amounts, which
would accrue and become due but for the commencement of such case, whether or not such
 

 
amounts are allowed or allowable in whole or in part in any such case and including loans, interest, fees, charges and expenses related thereto and all other obligations of Borrower or its
successors to Lender arising after the commencement of such case), whether direct or indirect, absolute or contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured, and however acquired by
Lender and (ii) all expenses (including, without limitation, attorneys’ fees and legal expenses) incurred by Lender and/or any of its affiliates or agents in connection with the preparation, execution, delivery, recording, administration,
collection, liquidation, enforcement and defense of Borrower’s obligations, liabilities and indebtedness as aforesaid to Lender, the rights of Lender in any collateral or under this Guarantee and all other Financing Agreements or in any way
involving claims by or against Lender directly or indirectly arising out of or related to the relationships between Borrower, Guarantor or any other Obligor (as hereinafter defined) and Lender, whether such expenses are incurred before, during or
after the initial or any renewal term of the Loan Agreement and the other Financing Agreements or after the commencement of any case with respect to Borrower or Guarantor under any Insolvency Legislation. 
  
 (b)  This Guarantee is a guaranty of payment and not of collection. Guarantor agrees that Lender need not
attempt to collect any Guaranteed Obligations from Borrower, Guarantor or any other Obligor or to realize upon any collateral, but may require Guarantor to make immediate payment of all of the Guaranteed Obligations to Lender when due, whether by
maturity, acceleration or otherwise, or at any time thereafter. Lender may apply any amounts received in respect of the Guaranteed Obligations to any of the Guaranteed Obligations, in whole or in part (including attorneys’ fees and legal
expenses incurred by Lender with respect thereto or otherwise chargeable to Borrower or Guarantor) and in such order as Lender may elect. 
  
 (c)  Payment by Guarantor shall be made to Lender at the office of Lender from time to time on demand as Guaranteed Obligations become due. Guarantor shall make all payments to Lender on the
Guaranteed Obligations without setoff, counterclaim, restrictions or conditions of any kind and free and clear of, and without deduction or withholdings for or on account of, any present or future duties, taxes, levies, imposts, fees, deductions,
assessments, withholdings or other charges of any nature whatsoever or interest, penalties or other amounts in respect thereof imposed or levied by or on behalf of the Canadian Government or of any province or territory thereof or any authority or
agency therein or thereof having power to tax (collectively, “Taxes”) unless such deduction or withholding is required by law or the administrative practice of any taxation authority. If any such deduction or withholding is so required,
Guarantor shall (i) pay such additional amounts as may be necessary in order that Lender receives a net amount after such deduction or withholding (including any deduction or withholding in respect of such additional amounts) equal to the full
amount that Lender would have received had no such deduction or withholding been required, and (ii) pay the full amount deducted or withheld to the relevant taxation authority in accordance with applicable law and forthwith after payment furnish
Lender with a receipt evidencing such payment. If Guarantor fails to pay to the relevant taxation authority when due any Taxes that it was required to deduct or withhold under this paragraph 1(c) in respect of any payment to Lender hereunder or
fails to furnish Lender with the receipt referred to above, Guarantor shall indemnify Lender on an after-Tax basis for any Taxes that may become payable as a result of such failure. Guarantor’s obligations under this paragraph 1(c) shall
survive the termination or revocation of this Guarantee and the Financing Agreements and the payment of all amounts payable under this
 
 

 2 

 
Guarantee and the Financing Agreements. If a tax credit is received by Lender for any taxes deducted by Guarantor and in respect of which additional amounts have been paid by Guarantor pursuant
hereto, then, to the extent such tax credit has been received by Lender and if all Guaranteed Obligations have been satisfied in full and the Loan Agreement has been terminated, Lender will deliver such tax credit to Guarantor. 

 
 (d)  One or more successive or concurrent actions may be brought hereon against Guarantor either in
the same action in which Borrower or any other Obligor is sued or in separate actions. In the event any claim or action, or action on any judgment, based on this Guarantee is brought against Guarantor, Guarantor agrees not to deduct, set-off, or
seek any counterclaim for or recoup any amounts which are or may be owed by Lender to Guarantor. 
  
 (e)  The obligations of the Guarantor hereunder are and shall be absolute and unconditional and any moneys or amounts expressed to be owing or payable by the Guarantor hereunder which may not be recoverable from the
Guarantor on the footing of a guarantee shall be recoverable from the Guarantor as primary obligor and principal debtor in respect thereof. 
  
 (f)  The obligations of the Guarantor under this Guarantee shall continue to be effective or shall be reinstated, as the case may be, to the extent of the payment referred to in this
paragraph 1(f), if at any time any payment which would otherwise have reduced the obligations of the Guarantor hereunder (whether such payment shall have been made by or on behalf of the Borrower, the Guarantor or any other Obligor) is rescinded or
reclaimed from Lender upon the insolvency, bankruptcy, liquidation or reorganization of the Borrower, the Guarantor or other Obligor or otherwise. 
  
 2.  Waivers and Consents 
  
 (a)  Notice of acceptance of this Guarantee, the making of loans and advances and providing other financial accommodations to Borrower and presentment, demand, protest, notice of protest,
notice of non-payment or default and all other notices to which Borrower or Guarantor is entitled are hereby waived by Guarantor except to the extent such notice cannot be waived pursuant to applicable law. Guarantor also waives notice of and hereby
consents to, (i) any amendment, modification, supplement, extension, renewal, or restatement of the Loan Agreement and any of the other Financing Agreements to which Guarantor is not a party, including, without limitation, extensions of time of
payment of or increase or decrease in the amount of any of the Guaranteed Obligations, the interest rate, fees, other charges, or any collateral, and the guarantee made herein shall apply to the Loan Agreement and the other Financing Agreements and
the Guaranteed Obligations as so amended, modified, supplemented, renewed, restated or extended, increased or decreased, (ii) the taking, exchange, surrender and releasing of collateral or guarantees now or at any time held by or available to Lender
for the obligations of Borrower or any other party at any time liable on or in respect of the Guaranteed Obligations or who is the owner of any property which is security for the Guaranteed Obligations (individually, an “Obligor” and
collectively, the “Obligors”), (iii) the exercise of, or refraining from the exercise of any rights against Borrower or any other Obligor or any collateral, (iv) the settlement, compromise or release of, or the waiver of any default with
respect to, any of the Guaranteed Obligations, and (v) any financing by Lender of Borrower under Section 364 of the United States Bankruptcy Code or consent to the use of cash collateral by Lender under Section
 
 

 3 

 
363 of the United States Bankruptcy Code. Guarantor agrees that the amount of the Guaranteed Obligations shall not be diminished and the liability of Guarantor hereunder shall not be otherwise
impaired or affected by any of the foregoing. 
  
 (b)  No invalidity, irregularity or
unenforceability of all or any part of the Guaranteed Obligations shall affect, impair or be a defense to this Guarantee, nor shall any other circumstance which might otherwise constitute a defense available to or legal or equitable discharge of
Borrower in respect of any of the Guaranteed Obligations, or Guarantor in respect of this Guarantee, affect, impair or be a defense to this Guarantee. Without limitation of the foregoing, the liability of Guarantor hereunder shall not be discharged
or impaired in any respect by reason of any failure by Lender to perfect or continue perfection of any lien or security interest in any collateral or any delay by Lender in perfecting any such lien or security interest. As to interest, fees and
expenses, whether arising before or after the commencement of any case with respect to Borrower under Insolvency Legislation, Guarantor shall be liable therefor, even if Borrower’s liability for such amounts does not, or ceases to, exist by
operation of law. Guarantor acknowledges that Lender has not made any representations to Guarantor with respect to Borrower, any other Obligor or otherwise in connection with the execution and delivery by Guarantor of this Guarantee and Guarantor is
not in any respect relying upon Lender or any statements by Lender in connection with this Guarantee. 
  
 (c)  Guarantor hereby irrevocably and unconditionally waives and relinquishes in favour of Lender all statutory, contractual, common law, equitable and all other claims against Borrower, any collateral for the Guaranteed
Obligations or other assets of Borrower or any other Obligor, for subrogation, reimbursement, exoneration, contribution, indemnification, setoff or other recourse in respect to sums paid or payable to Lender by Guarantor hereunder and Guarantor
hereby further irrevocably and unconditionally waives and relinquishes any and all other benefits which Guarantor might otherwise directly or indirectly receive or be entitled to receive by reason of any amounts paid by or collected or due from
Guarantor, Borrower or any other Obligor upon the Guaranteed Obligations or realized from their property. Notwithstanding the foregoing, Lender acknowledges that Borrower may make subordinated loans to Guarantor which loans shall be fully
subordinated and assigned by Guarantor to Lender. 
  
 3.  Subordination.    Subject to the terms of any agreement among Guarantor, Borrower and Lender, payment of all amounts now or hereafter owed to Guarantor by Borrower or any other Obligor is
hereby subordinated in right of payment to the indefeasible payment in full to Lender of the Guaranteed Obligations and all such amounts and any security and guarantees therefor are hereby assigned to Lender as security for the Guaranteed
Obligations. 
  
 4.  Acceleration.    Notwithstanding anything
to the contrary contained herein or any of the terms of any of the other Financing Agreements, the liability of Guarantor for the entire Guaranteed Obligations shall mature and become immediately due and payable, even if the liability of Borrower or
any other Obligor therefor does not, upon the occurrence and continuance of any act, condition or event which constitutes an Event of Default as such term is defined in the Loan Agreement. 
  
 5.  Account Stated.    The books and records of Lender showing the account between Lender and Borrower shall be
admissible in evidence in any action or proceeding against or
 
 

 4 

 
involving Guarantor as prima facie proof of the items therein set forth, and the monthly statements of Lender rendered to Borrower, to the extent to which no written objection is made within
thirty (30) days from the date of sending thereof to Borrower, shall be deemed conclusively correct and constitute an account stated between Lender and Borrower and be binding on Guarantor. 
  
 6.  Termination.    This Guarantee is continuing, unlimited, absolute and unconditional. All Guaranteed Obligations
shall be conclusively presumed to have been created in reliance on this Guarantee. Guarantor shall continue to be liable hereunder until one of Lender’s officers actually receives a written termination notice from Guarantor sent to Lender at
its address set forth above by certified mail, return receipt requested and thereafter as set forth below. Revocation or termination hereof by Guarantor shall not affect, in any manner, the rights of Lender or any obligations or duties of Guarantor
under this Guarantee with respect to (a) Guaranteed Obligations which have been created, contracted, assumed or incurred prior to the receipt by Lender of such written notice of revocation or termination as provided herein, including, without
limitation, (i) all amendments, extensions, renewals and modifications of such Guaranteed Obligations (whether or not evidenced by new or additional agreements, documents or instruments executed on or after such notice of revocation or termination),
(ii) all interest, fees and similar charges accruing or due on and after revocation or termination, and (iii) all attorneys’ fees and legal expenses, costs and other expenses paid or incurred on or after such notice of revocation or termination
in attempting to collect or enforce any of the Guaranteed Obligations against Borrower, Guarantor or any other Obligor (whether or not suit be brought), or (b) Guaranteed Obligations which have been created, contracted, assumed or incurred after the
receipt by Lender of such written notice of revocation or termination as provided herein pursuant to any contract entered into by Lender prior to receipt of such notice. The sole effect of such revocation or termination by Guarantor shall be to
exclude from this Guarantee the liability of Guarantor for those Guaranteed Obligations arising after the date of receipt by Lender of such written notice which are unrelated to Guaranteed Obligations arising or transactions entered into prior to
such date. Without limiting the foregoing, this Guarantee may not be terminated and shall continue so long as the Loan Agreement shall be in effect (whether during its original term or any renewal, substitution or extension thereof). 

 
 7.  Reinstatement.    If after receipt of any payment of, or proceeds of
collateral applied to the payment of, any of the Guaranteed Obligations, Lender is required to surrender or return such payment or proceeds to any Person for any reason, then the Guaranteed Obligations intended to be satisfied by such payment or
proceeds shall be reinstated and continue and this Guarantee shall continue in full force and effect as if such payment or proceeds had not been received by Lender. Guarantor shall be liable to pay to Lender, and does indemnify and hold Lender
harmless for the amount of any payments or proceeds surrendered or returned. This Section 7 shall remain effective notwithstanding any contrary action which may be taken by Lender in reliance upon such payment or proceeds. This Section 7 shall
survive the termination or revocation of this Guarantee. 
  
 8.  Amendments and
Waivers.    Neither this Guarantee nor any provision hereof shall be amended, modified, waived or discharged orally or by course of conduct, but only by a written agreement signed by an authorized officer of Lender and
Guarantor. Lender shall not by any act, delay, omission or otherwise be deemed to have expressly or impliedly waived any of its 
 

 5 

 
rights, powers and/or remedies unless such waiver shall be in writing and signed by an authorized officer of Lender. Any such waiver shall be enforceable only to the extent specifically set forth
therein. A waiver by Lender of any right, power and/or remedy on any one occasion shall not be construed as a bar to or waiver of any such right, power and/or remedy which Lender would otherwise have on any future occasion, whether similar in kind
or otherwise. 
  
 9.  Corporate Existence, Power and
Authority.    Guarantor is a corporation duly organized and in good standing under the laws of its state or other jurisdiction of incorporation and is duly qualified as a foreign corporation and in good standing in all states
or other jurisdictions where the nature and extent of the business transacted by it or the ownership of assets makes such qualification necessary, except for those jurisdictions in which the failure to so qualify would not have a material adverse
effect on the financial condition, results of operation or businesses of Guarantor or the rights of Lender hereunder or under any of the other Financing Agreements. The execution, delivery and performance of this Guarantee is within the corporate
powers of Guarantor, have been duly authorized and are not in contravention of law or the terms of the certificates of incorporation, by-laws, or other organizational documentation of Guarantor, or any indenture, agreement or undertaking to which
Guarantor is a party or by which Guarantor or its property are bound. This Guarantee constitutes the legal, valid and binding obligation of Guarantor enforceable in accordance with its terms. 
  

10.  Governing Law; Choice of Forum; Service of Process; Jury Trial Waiver 
  
 (a)  The validity, interpretation and enforcement of this Guarantee and any dispute arising out of the relationship between Guarantor and Lender,
whether in contract, tort, equity or otherwise, shall be governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein. 
  
 (b)  Guarantor and Lender hereby irrevocably consent and submit to the non-exclusive jurisdiction of the Superior Court of Justice (of Ontario)
and waive any objection based on venue or forum non conveniens with respect to any action instituted therein arising under this Guarantee or any of the other Financing Agreements or in any way connected with or related or incidental to the
dealings of Guarantor and Lender in respect of this Guarantee or any of the other Financing Agreements or the transactions related hereto or thereto, in each case whether now existing or hereafter arising and whether in contract, tort, equity or
otherwise, and agree that any dispute arising out of the relationship between Guarantor or Borrower and Lender or the conduct of any such persons in connection with this Guarantee, the other Financing Agreements or otherwise shall be heard only in
the courts described above (except that Lender shall have the right to bring any action or proceeding against Guarantor or its property in the courts of any other jurisdiction which Lender deems necessary or appropriate in order to realize on any
collateral at any time granted by Borrower or Guarantor to Lender or to otherwise enforce its rights against Guarantor or its property). 
  
 (c)  Guarantor hereby waives personal service of any and all process upon it and consents that all such service of process may be made by certified mail (return receipt requested) directed to
its address set forth on the signature pages hereof and service so made shall be deemed to be completed five (5) days after the same shall have been so deposited in the
 
 

 6 

 
U.S. mails, or, at Lender’s option, by service upon Guarantor in any other manner provided under the rules of any such courts. The Guarantor designates the Borrower at its address for notice
from time to time under the Loan Agreement as its designee, appointee and agent to receive for and on its behalf in any action or proceeding with respect to this Guarantee and such service shall be deemed complete upon delivery thereof as the
Borrower. Within thirty (30) days after such service, Guarantor shall appear in answer to such process, failing which Guarantor shall be deemed in default and judgment may be entered by Lender against Guarantor for the amount of the claim and other
relief requested. 
  
 (d)  GUARANTOR AND LENDER HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS GUARANTEE OR ANY OF THE OTHER FINANCING AGREEMENTS OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF GUARANTOR AND LENDER IN RESPECT OF THIS GUARANTEE OR
ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. GUARANTOR AND LENDER HEREBY AGREE AND CONSENT THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT GUARANTOR OR LENDER MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF GUARANTOR AND
LENDER TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 
  
 (e)  Lender shall not have any
liability to Guarantor (whether in tort, contract, equity or otherwise) for losses suffered by Guarantor in connection with, arising out of, or in any way related to the transactions or relationships contemplated by this Guarantee, or any act,
omission or event occurring in connection herewith, unless it is determined by a final and non-appealable judgment or court order binding on Lender that the losses were the result of acts or omissions constituting gross negligence or willful
misconduct. In any such litigation, Lender shall be entitled to the benefit of the rebuttable presumption that it acted in good faith and with the exercise of ordinary care in the performance by it of the terms of the Loan Agreement and the other
Financing Agreements. 
  
 11.  Judgment Currency.    To the
extent permitted by applicable law, the obligations of the Guarantor in respect of any amount due under this Agreement and other Financing Agreements to which the Guarantor is a party shall, notwithstanding any payment in any other currency (the
“Other Currency”) (whether pursuant to a judgment or otherwise), be discharged only to the extent of the amount in the currency in which it is due (the “Agreed Currency”) that Lender may, in accordance with normal banking
procedures, purchase with the sum paid in the Other Currency (after any premium and costs of exchange on the business day immediately after the day on which Lender receives the payment. If the amount in the Agreed Currency that may be so purchased
for any reason falls short of the amount originally due, the Guarantor shall pay all additional amounts, in the Agreed Currency, as may be necessary to compensate for the shortfall. Any obligation of the Guarantor not discharged by that payment
shall, to the extent permitted by applicable law, be due as a separate and independent obligation and, until discharged as provided in this Section, continue in full force and effect. 
 

 7 

  
 12.  Notices.    All
notices, requests and demands hereunder shall be in writing and (a) made to Lender at its address set forth above and to Guarantor at its chief executive office set forth below, or to such other address as either party may designate by written
notice to the other in accordance with this provision, and (b) deemed to have been given or made: if delivered in person, immediately upon delivery; if by telex, telegram or facsimile transmission, immediately upon sending and upon confirmation of
receipt; if by nationally recognized overnight courier service with instructions to deliver the next business day, one (1) Business Day after sending; and if by certified mail, return receipt requested, five (5) days after mailing. 

 
 13.  Partial Invalidity.    If any provision of this Guarantee is held to
be invalid or unenforceable, such invalidity or unenforceability shall not invalidate this Guarantee as a whole, but this Guarantee shall be construed as though it did not contain the particular provision held to be invalid or unenforceable and the
rights and obligations of the parties shall be construed and enforced only to such extent as shall be permitted by applicable law. 
  
 14.  Entire Agreement.    This Guarantee represents the entire agreement and understanding of this parties concerning the subject matter hereof, and supersedes all
other prior agreements, understandings, negotiations and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof, whether oral or written. 
  
 15.  Successors and Assigns.    This Guarantee shall be binding upon Guarantor and
its successors and assigns and shall inure to the benefit of Lender and its successors, endorsees, transferees and assigns. The liquidation, dissolution or termination of Guarantor shall not terminate this Guarantee as to such entity or as to
Guarantor. 
  
 16.  Construction.    All references to the term
“Guarantor” wherever used herein shall mean Guarantor and its successors and assigns (including, without limitation, any receiver, trustee or custodian for Guarantor or any of its assets). All references to the term “Lender”
wherever used herein shall mean Lender and its successors and assigns and all references to the term “Borrower” wherever used herein shall mean Borrower and its successors and assigns (including, without limitation, any receiver, trustee
or custodian for Borrower or any of its assets or Borrower in its capacity as debtor or debtor-in-possession under the United States Bankruptcy Code). All references to the term “Person” or “person” wherever used herein shall
mean any individual, sole proprietorship, partnership, corporation, limited liability company, limited liability partnership, business trust, unincorporated association, joint stock corporation, trust, joint venture or other entity or any government
or any agency or instrumentality or political subdivision thereof. All references to the plural shall also mean the singular and to the singular shall also mean the plural. All references to the term “Business Day” wherever used herein
shall mean a day (other than a Saturday, Sunday or statutory holiday in Ontario, Illinois or New York) on which Lender’s Chicago office, the US Reference Bank’s main Chicago office and banks in Chicago, Toronto and New York City are open
for business in the normal course. 
  
 17.  Paramountcy.    In
the event of any conflict between the provisions hereunder and the provisions of the Cdn. Loan Agreement then, notwithstanding anything contained in this Guarantee, the provisions contained in the Cdn. Loan Agreement shall prevail and the provisions
of this Guarantee will be deemed to be amended to the extent necessary to eliminate such 
 

 8 

 
conflict. If any act or omission of the Guarantor is expressly permitted under the Cdn. Loan Agreement but is expressly prohibited hereunder, such act or omission shall be permitted. If any act
or omission is expressly prohibited hereunder, but the Cdn. Loan Agreement does not expressly permit such act or omission, or if any act is expressly required to be performed hereunder but the Cdn. Loan Agreement does not expressly relieve the
Guarantor from such performance, such circumstances shall not constitute a conflict between the applicable provisions hereunder and the provisions of the Cdn. Loan Agreement. “Cdn. Loan Agreement” shall mean the loan agreement dated
September 25, 2000 among 1328158 Ontario Inc. and Congress Financial Corporation (Canada), as such agreement may be amended, supplemented, revised, restated or replaced from time to time. 
  
 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Guarantee as of the day and year first above written. 
  
  
 
	 ATTEST:
 	 	  	 	 GTR GROUP INC.
 
	 
	  	 	  	 	  	 	 By:
 	 	 /S/    LOU NAGGY
 
	 
	 	  	 	  	 	 

	  	 	  	 	  	 	 Title:
 	 	 Chief Financial Officer
 
	  	 	  	 	  	 	  

 
  
 [CORPORATE SEAL] 
  
 Chief Executive Office: 
  
 8 Kenview Boulevard 
 Brampton, Ontario

 L6T 5E4 
  
 Fax: (905) 799-4799 
  
 CONGRESS FINANCIAL

 CORPORATION (CENTRAL) 
  
 
	 
	  	 	  	 	  	 	 By:
 	 	 /S/    HARRY ROSENFELD
 
	  	 	  	 	  	 	 

	  	 	  	 	  	 	 Title:
 	 	 Senior Vice President
 

 
 

 9Prepared by R.R. Donnelley Financial -- Employment Agreement/Richardson

  
 Exhibit 4.12 
  
 May 18, 2000 
  
 Mr. Darren Richardson 
  
 Re:    Employment Terms

  
 Dear Mr. Richardson: 
  
 On behalf of Mad Catz, Inc., (the “Company”), I am pleased to offer you continued employment in the position of Chief Operating Officer of the Company. We
recognize that you fill a critical executive position and want to compensate you accordingly and provide financial security to you. This letter sets forth the terms of the Employment Agreement (the “Agreement”) that the Company is offering
to you: 
  
 1.  Employment by the Company. 
  

1.1  Title and Responsibilities.    Subject to the terms set forth herein, the Company agrees to continue to
employ you in the position of President and Chief Operating Officer (“COO”) and you hereby accept such continued employment effective as of the date you sign this Agreement (“Effective Date.”) You agree that you will devote your
best efforts and substantially all of your business time and attention (except for vacation periods as set forth herein and reasonable periods of illness or other incapacity permitted by the Company’s general employment policies) to the
business of the Company. 
  
 1.2  Executive
Position.    You will serve in an executive capacity and shall perform such duties as are reasonably assigned from time to time by the Chief Executive Officer (“CEO”) of GTR Group, Inc. (“GTR”) and as are
customarily associated with your title and position. 
  
 1.3  Company Employment
Policies.    Your employment relationship with the Company shall also be governed by the general employment policies and procedures of the Company, including those relating to protection of confidential information and
assignment of inventions, except that when the terms of this Agreement differ from or are in conflict with the Company’s general employment policies or procedures, this Agreement shall control. 
  
 1.4  Employment Period.    In recognition of your important role with the
Company, we have agreed that the duration of your employment, under this Agreement, is three years from the Effective Date (the “Contract Employment Period”) or to the date your employment is terminated in accordance with Section 6 of this
Agreement. Unless this Agreement is terminated during the Contract Employment Period, this Agreement and the Contract Employment Period shall be automatically renewed for a one-year period. 
 

 1 

 This Agreement and the Contract Employment Period shall then continue to be automatically renewed for successive one-year
periods unless either party provides the other party with written notice of non-renewal at least 60 days prior to the date the Agreement and Contract Employment Period would otherwise automatically renew. Notwithstanding the foregoing, you
understand that the employment relationship is “at will” in accordance with California law, and that either side may terminate the employment relationship at any time with or without cause, and with or without notice. However, if the
Company terminates your employment during the Contract Employment Period for any reason other than for cause or reasons enumerated under Section 6.4, or if you resign for Good Reason during the Contract Employment Period, under Section 6.5, then you
shall be entitled to a severance payment of one full year of regular base pay, in addition to any other severance benefits that may be negotiated between you and the Company. The Company’s payment of any severance compensation is conditioned
upon execution of the Release Agreement attached hereto as Exhibit B. 
  
 2.  Compensation and Benefits.

  
 2.1  Base Salary.    For services rendered
hereunder, you shall receive an annualized base salary of one hundred fifty thousand dollars ($150,000), less standard withholdings and deductions, payable in accordance with the Company’s standard payroll procedures. You will be considered for
annual changes in base salary in accordance with Company policy and subject to review and approval by the GTR Board of Directors (“GTR Board.”) 
  
 2.2  Bonuses.    You shall be eligible to receive bonuses as determined by the GTR Board, in consultation with
you and the CEO, according to the terms of any Company executive bonus plans that may be in effect from time to time. 
  
 2.3  Stock Options.    You shall be entitled to participate in the stock option plan managed and controlled by the GTR Board. To date, GTR has granted stock
options to you to acquire up to 130,000 common shares of GTR stock pursuant to GTR’s Amended and Restated Incentive Stock Option Plan (“the Plan”). The terms and conditions of the Plan for vesting and exercising shares shall continue
to govern. Both the Plan and the written Option Agreement, pursuant to the Plan, are attached hereto and incorporated herein by reference. 
  
 In the event the terms of the Plan and this Agreement conflict, the provisions of this Agreement shall control. 
  
 2.4  Standard Company Benefits for Executives.    You shall be entitled to all rights and benefits for which you are eligible under the terms and conditions
of the standard Company benefits and compensation plans which may be in effect from time to time and provided by the Company to its executive level employees generally. You shall receive 4 weeks of Paid Time Off (“PTO”) per year and such
PTO shall be governed by the Company’s policies on PTO, in effect from time to time. 
 

 2 

  
 2.5  Business Expense
Reimbursement.    The Company shall reimburse you for all reasonable travel, entertainment or other out-of-pocket expenses incurred by you in furtherance of or in connection with the performance of your duties hereunder, in
accordance with the Company’s written expense reimbursement policies in effect from time to time. 
  
 2.6  Indemnification.    You shall receive indemnification as a corporate officer of the Company to the maximum extent extended to the other executive officers of the Company. If so
requested by the Board, you will be required to enter into the Company’s standard form of Indemnification Agreement, pursuant to which the Company agrees to advance any expenses for which indemnification is available to the extent allowed by
applicable law. 
  
 3.  Proprietary Information Obligations. 
  
 3.1  Proprietary Information Agreement.    You agree to execute and abide by
the Employee Proprietary Information and Inventions Agreement, attached hereto as Exhibit A. 
  
 3.2  Remedies.    Your duties under the Employee Proprietary Information and Inventions Agreement shall survive termination of your employment with the Company. You acknowledge that a
remedy at law for any breach or threatened breach by you of the provisions of the Employee Proprietary Information and Inventions Agreement would be inadequate and you therefore agree that the Company shall be entitled to injunctive relief in case
of any such breach or threatened breach. 
  
 4.  Outside Activities. 
  
 4.1  Activities.    Except with the prior written consent of the GTR Board,
you will not during your employment with the Company undertake or engage in any other employment, occupation or business enterprise, other than ones in which you are a passive investor. You may accept speaking or presentation engagements in exchange
for honoraria and may engage in civic and not-for-profit activities so long as such activities do not materially interfere with the performance of your duties hereunder. 
  
 4.2  Investments and Interests.    Except as permitted by Section 4.3, you agree not to acquire, assume or
participate in, directly or indirectly, any position, investment or interest known by you to be adverse or antagonistic to the Company, its business or prospects, financial or otherwise. 
  
 4.3  Non-Competition.    During your employment by the Company, and for one year from termination, you will not
directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business
connection with any other person, corporation, firm, partnership or other entity whatsoever known by you to compete directly with the Company, anywhere in the world, in any line of business engaged in (or in which the Company plans to be engaged and
you are aware of such plans as of the date your employment with the Company 
 

 3 

 terminates) by the Company; provided, however, that anything above to the contrary notwithstanding, you may own, as a
passive investor, securities of any competitor corporation, so long as your direct holdings in any one such corporation shall not in the aggregate constitute more than one percent (1%) of the voting stock of such corporation. 

 
 5.  Other Agreements. 
  
 You represent and warrant that your employment by the Company will not conflict with and will not be constrained by any prior agreement or relationship with any third party. You represent and warrant
that you will not disclose to the Company or use on behalf of the Company any confidential information governed by any agreement with any third party except in accordance with an agreement between the Company and any such third party. During your
employment by the Company, you may use, in the performance of your duties, all information generally known and used by persons with training and experience comparable to your own and all information which is common knowledge in the industry or
otherwise legally in the public domain. 
  
 6.  Termination of Employment. 
  
 6.1  At-Will Employment.    Your relationship with the Company is at-will.
Both you and the Company shall have the right to terminate your employment with the Company at any time with or without Cause and with or without notice, provided that you may be removed from any position you hold as a member of the Company’s
Board only in the manner provided by the Bylaws of the Company and applicable law. 
  
 6.2  Termination by Company for Cause.    If the Company terminates your employment at any time for Cause (as defined below), your salary shall cease on the date of termination and you
shall not be entitled to severance pay, pay in lieu of notice or any other such compensation other than payment of accrued salary and vacation and such other benefits as expressly required in such event by applicable law or the terms of applicable
benefit plans. All stock options and any unvested stock awards issued to you shall be controlled by the terms of the Plan. 
  
 (a)  Definition.    For purposes of this Agreement, “Cause” shall mean the occurrence of one or more of the following: (i) your unauthorized use or disclosure of
confidential information or trade secrets of the Company, which use or disclosure causes material harm to the Company; (ii) your conviction of, or your plea of “guilty” or “no contest” to, a felony under the laws of the United
States, or any state thereunder; (iii) gross negligence in the performance of your duties to the Company, willful or habitual neglect of your duties or violation of Company policy, which is not cured by you within fourteen (14) days of receiving
written notice of such breach from the Board; (iv) a willful act by you which constitutes gross misconduct and which causes material injury to the Company, which is not cured by you within fourteen (14) days of receiving written notice of such
breach from the Board; or, (v) your material breach of the Employee Proprietary Information and Inventions Agreement attached hereto. Your physical or mental disability or death shall not constitute Cause hereunder. For purposes hereof, “gross
negligence” in the performance of your duties to the Company shall only 
 

 4 

 include such gross negligence which has resulted or is likely to result in substantial and material damage to the
Company. 
  
 6.3  Your Voluntary Resignation.    You may
voluntarily terminate your employment with the Company at any time with or without notice, and with or without Good Reason (as defined in Section 6.6 below). In the event that you voluntarily terminate your employment other than for Good Reason, you
will not be entitled to severance pay, pay in lieu of notice or any other such compensation other than payment of accrued salary and vacation and such other benefits as expressly required in such event by applicable law or the terms of applicable
benefit plans. All stock options and any unvested stock awards issued to you shall be controlled by the terms of the Plan. 
  
 6.4  Termination for Death or Disability.    Your employment with the Company will be terminated in the event of your death, or any illness, disability or other incapacity that
renders you physically or mentally unable regularly to perform your duties hereunder for a period in excess of one hundred twenty (120) consecutive days or more than one hundred eighty (180) days in any consecutive twelve (12) month period. The
determination regarding whether you are physically or mentally unable regularly to perform your duties shall be made by the Board. Your inability to be physically present on the Company’s premises shall not constitute a presumption that you are
unable to perform such duties. In the event that your employment with the Company is terminated for death or disability as described in this Section 6.4, you or your heirs, successors, and assigns shall not receive any compensation or benefits other
than payment of accrued salary and vacation and such other benefits as expressly required in such event by applicable law or the terms of applicable benefit plans. All stock options and any unvested stock awards issued to you shall be controlled by
the terms of the Plan. 
  
 6.5  Your Resignation for Good
Reason.    You may resign your employment for Good Reason so long as you tender your resignation to the Company within sixty (60) days after the occurrence of the event which forms the basis for your termination for Good
Reason. 
  
 For purposes of this Agreement, “Good Reason” shall mean any one of the following events which
occurs on or after the commencement of your employment without your consent: (i) any reduction of your then existing annual base salary by more than ten percent (10%) unless comparable reductions are made for all other executive officers of the
Company; (ii) any material reduction in the package of benefits and incentives, taken as a whole, provided to you (except that employee contributions may be raised to the extent of any cost increases imposed by third parties) or any action by the
Company which would materially and adversely affect your participation or reduce your benefits under any such plans, except to the extent that such benefits and incentives of all other executive officers of the Company are similarly reduced; (iii)
any material diminution of your duties, responsibilities, authority, reporting structure, excluding for this purpose an isolated or inadvertent action not taken in bad faith which is remedied by the Company immediately after notice thereof is given
by you; (iv) any request that you relocate to a work site that would increase your one-way commute distance by more than fifty (50) miles from your then principal residence, unless you accept such relocation opportunity; (v) following a

 

 5 

 Change in Control, as defined in Section 7.1; or (v) any material breach by the Company of its obligations under this Agreement that is not
remedied by Company within thirty (30) days of written notice of such breach from you. 
  
 7.  Change in
Control. 
  
 7.1  Change In Control
Definition.    For purposes of this Agreement, Change in Control shall mean any of the following: (i) any consolidation or merger of the Company or GTR with or into any other corporation or other entity or person, or any
other corporate reorganization in which the stockholders of the Company or GTR immediately prior to such consolidation, merger or reorganization by reason of the securities in the Company or GTR owned by them prior to same, own less than fifty
percent (50%) of the Company’s or GTR’s voting power immediately after such consolidation, merger or reorganization, or any transaction or series of related transactions in which in excess of fifty percent (50%) of the Company’s or
GTR’s voting power is transferred; or (ii) a sale, lease or other disposition of all or substantially all of the assets of the Company or the assets of GTR. 
  
 8.  Release.    Upon your termination of employment, you shall enter into and execute a release substantially in the form attached hereto as Exhibit B (the
“Release”), as a condition of your receipt of any severance benefits (including, without limitation, any cash severance payment or accelerated vesting of shares) provided under this Agreement. Additionally, unless the Release is executed
by you and becomes fully effective under the terms set forth in the Release, any acceleration of your stock awards as provided under this Agreement shall not apply and your stock awards in such event may be exercised following the date of your
termination only to the extent provided under the Plan. 
  
 9.  Dispute
Resolution.    If a dispute arises between the parties, the parties agree to use the following dispute resolution procedure: 
  
 9.1  Meet and Confer.    A meeting shall be held promptly between the parties, attended by individuals with
decision-making authority regarding the dispute, to attempt, in good faith, to negotiate a resolution of the dispute. 
  
 9.2  Mediation.    If within 15 days after such meeting, the parties have not succeeded in negotiating a resolution of the dispute, they agree to submit the dispute to mediation in
San Diego, California, under the auspices of, and in accordance with the rules of, JAMS/Endispute (“JAMS”). The parties will jointly appoint a mutually acceptable mediator, seeking assistance in such regard from JAMS if they are unable to
agree upon such appointment. The cost of the mediator and any administrative fee shall be shared equally by the parties. The parties agree to participate in good faith in the mediation and negotiations related thereto for a period of not less than
15 days. If the parties are not successful in resolving the dispute through mediation, then the parties agree that the dispute shall be decided by arbitration as provided below. 
  
 9.3  Arbitration.    If the parties have been unable to resolve their dispute through mediation, as provided
above, any remaining controversy or claim arising out of, 
 

 6 

 or relating to, the employment relationship or subject matter of this Agreement, or the making, performance or
interpretation hereof, shall be decided by binding arbitration in San Diego, California. The arbitration shall be conducted under the auspices of, and in accordance with the rules of JAMS, by a neutral arbitrator who is mutually agreeable to the
parties hereto, or appointed by JAMS if the parties cannot agree. There will be only one arbitrator appointed. The cost of the arbitrator and any administrative fees shall be shared equally by the parties. The arbitrator may award damages as well as
equitable and declaratory relief. The arbitration award shall be final and conclusive upon the parties and a judgment or decree upon the award may be entered in any court having jurisdiction over the subject matter of the controversy. 

 
 9.4  Provisional Remedies and Injunctive Relief.    Notwithstanding
the agreement to submit disputes to negotiation, mediation and arbitration, as provided above, either party may seek from a court of competent jurisdiction any provisional or interim relief that is necessary to protect the rights or property of that
party. Such provisional or interim relief may include, without limitation, restraining orders and other injunctive relief necessary to preserve the status quo based on claims for unfair competition and/or misappropriation of trade secrets and/or
solicitation, as referenced in Exhibit A attached hereto. 
  
 Notice: by initialing in the space below, you are
agreeing to have any dispute arising out of the matters included in the “Arbitration” provision decided by neutral arbitration as provided by law and you are giving up any rights you might possess to have the dispute litigated in a court
or jury trial. By initialing in the space below, you are giving up your judicial rights to discovery and appeal. If you refuse to submit to arbitration after agreeing to this provision, you may be compelled to arbitrate under the authority of the
California Code of Civil Procedure. Your agreement to this arbitration provision is voluntary. 
  
 WE HAVE
READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION” PROVISION, WHICH INCLUDE ANY CLAIMS FOR WRONGFUL TERMINATION, DISCRIMINATION OR HARASSMENT, TO NEUTRAL BINDING
ARBITRATION. BY PLACING THEIR INITIALS HERE, THE PARTIES AGREE TO BINDING ARBITRATION IN ACCORDANCE WITH THE FOREGOING PROVISION. 
  
 
	 Company:    PK    
 	  	 Employee:    DR    
 

 
  
 10.  General Provisions. 
  
 10.1  Severability.    Whenever possible, each provision of this Agreement
will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but such invalid, illegal or unenforceable provision will be reformed, construed and enforced in 
 

 7 

 such jurisdiction so as to render it valid, legal, and enforceable consistent with the intent of the parties insofar as
possible. 
  
 10.2  Entire Agreement.    This Agreement,
together with the Employee Proprietary Information and Inventions Agreement, and any stock option or stock award agreements which may be entered into now or in the future between you and the Company, constitutes the entire agreement between you and
the Company and it supersedes any prior agreement, promise, representation, or statement written or otherwise between you and the Company with regard to this subject matter. It is entered into without reliance on any promise, representation,
statement or agreement other than those expressly contained or incorporated herein, and it cannot be modified or amended except in a writing signed by you and a duly authorized officer of the Company. 
  
 10.3  Successors and Assigns.    This Agreement is intended to bind and inure
to the benefit of and be enforceable by you, the Company and you and their respective successors, assigns, heirs, executors and administrators, except that you may not assign any of your duties hereunder and you may not assign any of your rights
hereunder without the written consent of the Company, which shall not be withheld unreasonably. 
  
 10.4  Governing Law.    All questions concerning the performance, construction, validity and interpretation of this Agreement shall be governed by the law of the State of California,
without regard to its conflicts of law doctrine, as applied to contracts made and to be performed entirely within California. 
  
 10.5  Notices.    Any notice required or permitted under this Agreement shall be given in writing and shall be deemed to have been effectively made or given
if personally delivered, or if sent by facsimile, or mailed to the other party at its address set forth below, or at such other address as such party may designate by written notice to the other party hereto. Any effective notice hereunder shall be
deemed given on the date personally delivered or on the date sent by facsimile or two business days after deposited in the United States mail (sent by Certified Mail, Return Receipt Requested), as the case may be, at the following address.

  
 
	 If to Company:
 	 	 If to Employee:
 
	 
	 Board of Directors
 	 	  
	 Mad Catz, Inc.
 	 	 Darren Richardson
 
	 11487 Woodside Avenue
 	 	 11487 Woodside Avenue
 
	 Santee, California 92071
 	 	 Santee, California 92071
 
	 
	 With a copy to:
 	 	  
	 
	 Chief Executive Officer, GTR Group, Inc., 8 Kenview Blvd., Brampton, ON, L6T5E4
 

 
 

 8 

  
 To indicate your acceptance of the Company’s offer of continued employment
on these terms, please sign and date this Agreement in the space provided below and return it to me. 
  
 
	 Sincerely,
 
	 
	 /s/    PETER
KOZICZ        
 

	 Peter Kozicz
 For the
Company
 
	 
	 ACCEPTED AND AGREED:
 
	 
	 /s/    DARREN RICHARDSON
        
 

	 Darren Richardson
 

 
  
 
	 June 18, 2000
 

	 Date
 

 
 

 9 

  
 EXHIBIT A 
  
 EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT 
  
 In consideration of the continued employment relationship between Mad Catz, Inc., (the “Company”) and Darren Richardson (the “Executive”), including the terms set forth in the attached Employment
Agreement of even date, the parties hereto agree as follows: 
  
 Insert paragraphs 2-4 of your addendum, followed
by signature lines. 
 

 10 

  
 EXHIBIT B 
  
 RELEASE AGREEMENT 
  
 I understand that
my position with GTR/Mad Catz (the “Company”) terminated effective             ,              (the “Separation
Date”). The Company has agreed that if I choose to sign this Release, the Company will pay me certain severance benefits pursuant to the terms of the Employment Agreement (the “Agreement”) between myself and the Company, and any
agreements incorporated therein by reference. I understand that I am not entitled to such benefits unless I sign this Release and it becomes fully effective. I understand that, regardless of whether I sign this Release, the Company will pay me all
of my accrued salary and vacation through the Separation Date, to which I am entitled by law. 
  
 In consideration
for the severance benefits I am receiving under the Agreement, I hereby release the Company and its officers, directors, agents, attorneys, employees, shareholders, parents, subsidiaries, and affiliates from any and all claims, liabilities, demands,
causes of action, attorneys’ fees, damages or obligations of every kind and nature, whether they are now known or unknown, arising at any time prior to the date I sign this Release and which arise out of my employment or my termination of
employment with the Company, including, without limitation, any such claims based on federal and state statutory and common law, breach of contract, tort, wrongful termination, discrimination, wages or benefits, or claims for any form of
compensation for services. Notwithstanding the foregoing, I am not releasing any right of indemnification I may have for any liabilities arising from my actions within the course and scope of my employment with the Company. Notwithstanding anything
herein to the contrary, the release described herein does not apply to any rights or obligations arising under this Release Agreement. 
  
 In releasing claims unknown to me at present, I am waiving all rights and benefits under Section 1542 of the California Civil Code, and any law or legal principle of similar effect in any jurisdiction: “A general
release does not extend to claims which the creditor does not know or suspect to exist in your favor at the time of executing the release, which if known by him must have materially affected your settlement with the debtor.” 

 
 If I am forty (40) years of age or older as of the Separation Date, I acknowledge that I am knowingly and voluntarily waiving
and releasing any rights I may have under the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”). I also acknowledge that the consideration given for the waiver in the above paragraph is in addition to anything of
value to which I was already entitled. I have been advised by this writing, as required by the ADEA that: (a) my waiver and release do not apply to any claims that may arise after my signing of this Release; (b) I should consult with an attorney
prior to executing this Release; (c) I have twenty-one (21) days within which to consider this Release (although I may choose to voluntarily execute this Release earlier); (d) I have seven (7) days following the execution of this release to revoke
the Release; and (e) this Release will not be effective until the eighth day after this Release has been signed both by me and by the Company (“Effective Date”). 
  
 
	 Agreed:
 	    	  	    	  
	 
	 [COMPANY]
 	    	  	    	 [EMPLOYEE]
 
	 
	 By:                                     
                                      
 
 	    	  	    	                                      
                                       
    
 
	 [Name]
 	    	  	    	  
	 [Title]
 	    	  	    	  
	 
	 Date:                                    
                                     
 	    	  	    	 Date:                                    
                                  
 

 
 

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]