Document:

Exhibit 10.4

 

	
  Guaranty and Suretyship Agreement

  	
  

  

 

THIS GUARANTY AND
SURETYSHIP AGREEMENT (this “Guaranty”) is
made and entered into as of October 1, 2008, by and among the Guarantors
identified as such on the signature pages hereof (each individually, a “Guarantor” and, collectively, the “Guarantors”),
in consideration of the extension of credit by PNC BANK,
NATIONAL ASSOCIATION (the “Bank”), with
an address at 1600 Market Street, 22nd Floor, Philadelphia, PA
19103, to NEW HORIZONS WORLDWIDE, INC. (the “Borrower”), and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged.

 

1.             Guaranty of Obligations.  Each Guarantor hereby unconditionally guarantees, as a
primary obligor, and becomes surety for, the prompt payment and performance of
all loans, advances, debts, liabilities, obligations, covenants and duties
owing by the Borrower to the Bank under the Loan Agreement, dated as of
Ocotober 1, 2008, by and between the Borrower and the Bank (the “Loan Agreement”), the Committed Line of
Credit Note, dated as of October 1, 2008, made by the Borrower in favor of
the Bank, and any other related loan documents (collectively, the “Loan Documents”), of any kind or nature,
present or future (including any interest accruing thereon after maturity, or
after the filing of any petition in bankruptcy, or the commencement of any
insolvency, reorganization or like proceeding relating to the Borrower, whether
or not a claim for post-filing or post-petition interest is allowed in such proceeding),
whether direct or indirect absolute or contingent, joint or several, due or to
become due, now existing or hereafter arising, and any amendments, extensions,
renewals and increases of or to any of the foregoing, and all reasonable
out-of-pocket costs and expenses of the Bank incurred in the documentation,
negotiation, modification, enforcement, collection and otherwise in connection
with any of the foregoing, including reasonable attorneys’ fees and expenses
(hereinafter referred to collectively as the “Obligations”).  If the Borrower defaults under any such
Obligations, the Guarantor will pay the amount due to the Bank.

 

2.             Nature of Guaranty; Waivers.  This
is a guaranty of payment and not of collection and the Bank shall not be
required, as a condition of the Guarantors’ liability, to make any demand upon
or to pursue any of its rights against the Borrower, or to pursue any rights
which may be available to it with respect to any other person who may be liable
for the payment of the Obligations.

 

This is an absolute,
unconditional, irrevocable and continuing guaranty and will remain in full
force and effect until all of the Obligations have been indefeasibly paid in
full, and the Bank has terminated this Guaranty. This Guaranty will remain in
full force and effect even if there is no principal balance outstanding under
the Obligations at a particular time or from time to time.  This Guaranty will not be affected by any
surrender, exchange, acceptance, compromise or release by the Bank of any other
party, or any other guaranty or any security held by it for any of the
Obligations, by any failure of the Bank to take any steps to perfect or
maintain its lien or 

 

 

security interest in or to
preserve its rights to any security or other collateral for any of the
Obligations or any guaranty, or by any irregularity, unenforceability or
invalidity of any of the Obligations or any part thereof or any security or
other guaranty thereof.  Each Guarantor’s
obligations hereunder shall not be affected, modified or impaired by any
counterclaim, set-off, recoupment, deduction or defense based upon any claim
such Guarantor may have (directly or indirectly) against the Borrower or the
Bank, except payment or performance of the Obligations.

 

Notice of acceptance of this
Guaranty, notice of extensions of credit to the Borrower from time to time,
notice of default, diligence, presentment, notice of dishonor, protest, demand
for payment, and any defense based upon the Bank’s failure to comply with the
notice requirements under Sections 9-611 and 9-612 of the Uniform Commercial
Code as in effect from time to time are, to the extent permissible under
applicable law, hereby waived.  Each
Guarantor waives all defenses based on suretyship or impairment of collateral.

 

The Bank at any time and
from time to time, without notice to or the consent of the Guarantors, and
without impairing or releasing, discharging or modifying the Guarantors’
liabilities hereunder, may (a) change the manner, place, time or terms of
payment or performance of or interest rates on, or other terms relating to, any
of the Obligations; (b) renew, substitute, modify, amend or alter, or
grant consents or waivers relating to any of the Obligations, any other
guaranties, or any security for any Obligations or guaranties; (c) apply
any and all payments by whomever paid or however realized including any
proceeds of any collateral, to any Obligations of the Borrower in such order,
manner and amount as the Bank may determine in its sole discretion; (d) settle,
compromise or deal with any other person, including the Borrower or the
Guarantors, with respect to any Obligations in such manner as the Bank deems
appropriate in its sole discretion; (e) substitute, exchange or release
any security or guaranty; or (f) take such actions and exercise such
remedies hereunder as provided herein.

 

3.             Repayments or Recovery from the Bank.  If
any demand is made at any time upon the Bank for the repayment or recovery of
any amount received by it in payment or on account of any of the Obligations
and if the Bank repays all or any part of such amount by reason of any
judgment, decree or order of any court or administrative body or by reason of
any settlement or compromise of any such demand, the Guarantors will be and
remain liable hereunder for the amount so repaid or recovered to the same
extent as if such amount had never been received originally by the Bank.  The provisions of this section will be and
remain effective notwithstanding any contrary action which may have been taken
by the Guarantors in reliance upon such payment, and any such contrary action
so taken will be without prejudice to the Bank’s rights hereunder and will be
deemed to have been conditioned upon such payment having become final and
irrevocable.

 

4.             Financial Statements.  Unless compliance is waived in writing by the
Bank or until all of the Obligations have been paid in full, each Guarantor
will promptly submit to the Bank such information relating to such Guarantor’s
affairs (including but not limited to annual financial statements and tax
returns for the Guarantor) or any security for the Guaranty as the Bank may
reasonably request.

 

5.             Enforceability of Obligations.  No
modification, limitation or discharge of the Obligations arising out of or by
virtue of any bankruptcy, reorganization or similar proceeding 

 

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for
relief of debtors under federal or state law will affect, modify, limit or
discharge the Guarantors’ liability in any manner whatsoever and this Guaranty
will remain and continue in full force and effect and will be enforceable
against the Guarantors to the same extent and with the same force and effect as
if any such proceeding had not been instituted. 
Each Guarantor waives all rights and benefits which might accrue to it
by reason of any such proceeding and will be liable to the full extent
hereunder, irrespective of any modification, limitation or discharge of the
liability of the Borrower that may result from any such proceeding.

 

6.             Events of Default.  The
occurrence of any of the following shall be an “Event of Default”:  (i) any
Event of Default (as defined in any of the Obligations); (ii) demand by
the Bank under any of the Obligations that have a demand feature; (iii) the
Guarantors’ failure to perform any of their obligations hereunder; (iv) the
falsity, inaccuracy or material breach by a Guarantor of any written warranty,
representation or statement made or furnished to the Bank by or on behalf of
such Guarantor; or (v) the termination or attempted termination of this
Guaranty.  Upon the occurrence of any
Event of Default, (a) the Guarantors shall pay to the Bank the amount of
the Obligations; or (b) on demand of the Bank, the Guarantors shall
immediately deposit with the Bank, in U.S. dollars, all amounts due or to
become due under the Obligations, and the Bank may at any time use such funds
to repay the Obligations; or (c) the Bank in its discretion may exercise
with respect to any collateral any one or more of the rights and remedies provided
a secured party under the applicable version of the Uniform Commercial Code; or
(d) the Bank in its discretion may exercise from time to time any other
rights and remedies available to it at law, in equity or otherwise.

 

7.             Right of Setoff.  In addition to all liens upon and rights of
setoff against the Guarantors’ money, securities or other property given to the
Bank by law, the Bank shall have, with respect to the Guarantors’ obligations
to the Bank under this Guaranty and to the extent permitted by law, a
contractual possessory security interest in and a contractual right of setoff
against, and each Guarantor hereby grants Bank a security interest in, and
hereby assigns, conveys, delivers, pledges and transfers to the Bank all of
such Guarantor’s right, title and interest in and to, all of such Guarantor’s
deposits, moneys, securities and other property now or hereafter in the
possession of or on deposit with, or in transit to, the Bank or any other
direct or indirect subsidiary of The PNC Financial Services Group, Inc.,
whether held in a general or special account or deposit, whether held jointly
with someone else, or whether held for safekeeping or otherwise, excluding,
however, all IRA, Keogh, and trust accounts. 
Every such security interest and right of setoff may be exercised
without demand upon or notice to such Guarantor.  Every such right of setoff shall be deemed to
have been exercised immediately upon the occurrence of an Event of Default
hereunder without any action of the Bank, although the Bank may enter such
setoff on its books and records at a later time.

 

8.             Collateral.  This Guaranty is secured by the property
described in any collateral security documents which each Guarantor executes
and delivers to the Bank and by such other collateral as previously may have
been or may in the future be granted to the Bank to secure any Obligations of
the Guarantors to the Bank.

 

9.             Costs.  To
the extent that the Bank incurs any reasonable out-of-pocket costs or expenses
in protecting or enforcing its rights under the Obligations or this Guaranty,
including attorneys’ fees and the costs and expenses of litigation, such costs
and expenses will be due on 

 

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demand,
will be included in the Obligations and will bear interest from the incurring
or payment thereof at the Default Rate (as defined in any of the Obligations).

 

10.           Postponement of Subrogation.  Until the Obligations are indefeasibly paid
in full, expire, are terminated and are not subject to any right of revocation
or rescission, the Guarantor postpones and subordinates in favor of the Bank or
its designee (and any assignee or potential assignee) any and all rights which
the Guarantors may have to (a) assert any claim whatsoever against the
Borrower based on subrogation, exoneration, reimbursement, or indemnity or any
right of recourse to security for the Obligations with respect to payments made
hereunder, and (b) any realization on any property of the Borrower,
including participation in any marshalling of the Borrower’s assets.

 

11.           Notices.  All
notices, demands, requests, consents, approvals and other communications
required or permitted hereunder (“Notices”)
must be in writing and will be effective upon receipt.  Notices may be given in any manner to which
the Bank and the Guarantors may separately agree, including electronic
mail.  Without limiting the foregoing,
first-class mail, facsimile transmission and commercial courier service are
hereby agreed to as acceptable methods for giving Notices.  Regardless of the manner in which provided,
Notices may be sent to addresses for the Bank and the Guarantors as set forth
above or to such other address as either may give to the other for such purpose
in accordance with this section.

 

12.           Preservation of Rights.  No
delay or omission on the Bank’s part to exercise any right or power arising
hereunder will impair any such right or power or be considered a waiver of any
such right or power, nor will the Bank’s action or inaction impair any such
right or power.  The Bank’s rights and
remedies hereunder are cumulative and not exclusive of any other rights or
remedies which the Bank may have under other agreements, at law or in
equity.  The Bank may proceed in any
order against the Borrower, the Guarantors or any other obligor of, or
collateral securing, the Obligations.

 

13.           Illegality.  If any provision contained in this Guaranty
should be invalid, illegal or unenforceable in any respect, it shall not affect
or impair the validity, legality and enforceability of the remaining provisions
of this Guaranty.

 

14.           Changes in Writing.  No modification, amendment or waiver of, or
consent to any departure by the Guarantors from, any provision of this Guaranty
will be effective unless made in a writing signed by the Bank, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given.  No notice to or
demand on the Guarantors will entitle the Guarantors to any other or further
notice or demand in the same, similar or other circumstance.

 

15.           Entire Agreement.  This Guaranty (including the documents and
instruments referred to herein) constitutes the entire agreement and supersedes
all other prior agreements and understandings, both written and oral, between
the Guarantors and the Bank with respect to the subject matter hereof;
provided, however, that this Guaranty is in addition to, and not in
substitution for, any other guarantees from the Guarantors to the Bank.

 

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16.           Successors and Assigns.  This Guaranty will be binding upon and inure
to the benefit of the Guarantors and the Bank and their respective heirs,
executors, administrators, successors and assigns; provided, however,
that the Guarantors may not assign this Guaranty in whole or in part without
the Bank’s prior written consent and the Bank at any time may assign this
Guaranty in whole or in part.

 

17.           Interpretation.  In this Guaranty, unless the Bank and the
Guarantors otherwise agree in writing, the singular includes the plural and the
plural the singular; references to statutes are to be construed as including
all statutory provisions consolidating, amending or replacing the statute
referred to; the word “or” shall be deemed to include “and/or”, the words “including”,
“includes” and “include” shall be deemed to be followed by the words “without
limitation”; and references to sections or exhibits are to those of this
Guaranty.  Section headings in this
Guaranty are included for convenience of reference only and shall not
constitute a part of this Guaranty for any other purpose.  If this Guaranty is executed by more than one
party as Guarantor, the obligations of such persons or entities will be joint
and several.

 

18.           Indemnity.  Each Guarantor agrees to indemnify each of
the Bank, each legal entity, if any, who controls the Bank and each of their
respective directors, officers and employees (the “Indemnified Parties”), and to hold each Indemnified Party
harmless from and against, any and all claims, damages, losses, liabilities and
expenses (including all fees and charges of internal or external counsel with
whom any Indemnified Party may consult and all expenses of litigation and
preparation therefor) which any Indemnified Party may incur or which may be
asserted against any Indemnified Party by any person, entity or governmental
authority (including any person or entity claiming derivatively on behalf of
such Guarantor), in connection with or arising out of or relating to the
matters referred to in this Guaranty, whether (a) arising from or incurred
in connection with any breach of a representation, warranty or covenant by such
Guarantor, or (b) arising out of or resulting from any suit, action,
claim, proceeding or governmental investigation, pending or threatened, whether
based on statute, regulation or order, or tort, or contract or otherwise,
before any court or governmental authority; provided, however,
that the foregoing indemnity agreement shall not apply to any claims, damages,
losses, liabilities and expenses to the extent attributable to an Indemnified
Party’s gross negligence or willful misconduct. 
The indemnity agreement contained in this Section shall survive the
termination of this Guaranty and assignment of any rights hereunder.  Each Guarantor may participate at its expense
in the defense of any such claim.

 

19.           Governing Law and Jurisdiction.  This Guaranty has been delivered to and
accepted by the Bank and will be deemed to be made in the Commonwealth of
Pennsylvania (the “Commonwealth”).  THIS GUARANTY WILL BE INTERPRETED AND THE RIGHTS AND
LIABILITIES OF THE BANK AND THE GUARANTOR DETERMINED IN ACCORDANCE WITH THE
LAWS OF THE COMMONWEALTH, EXCLUDING ITS CONFLICT OF LAWS RULES.  The Guarantor hereby irrevocably consents to
the exclusive jurisdiction of any state or federal court in the Commonwealth;
provided that nothing contained in this Guaranty will prevent the Bank from
bringing any action, enforcing any award or judgment or exercising any rights
against the Guarantors individually, against any security or against any
property of the Guarantors within any other county, state or other foreign or
domestic jurisdiction.  Each Guarantor
acknowledges and agrees that the venue provided above is the most convenient
forum for both the Bank and 

 

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such
Guarantor.  Each Guarantor waives any
objection to venue and any objection based on a more convenient forum in any
action instituted under this Guaranty.

 

20.           Equal Credit Opportunity Act.  If the Guarantors are not “applicants for
credit” under Section 202.2 (e) of the Equal Credit Opportunity Act
of 1974 (“ECOA”), each Guarantor acknowledges that (i) this Guaranty has
been executed to provide credit support for the Obligations, and (ii) such
Guarantor was not required to execute this Guaranty in violation of Section 202.7(d) of
the ECOA.

 

21.          WAIVER OF JURY TRIAL. 
EACH GUARANTOR IRREVOCABLY WAIVES ANY AND ALL RIGHT SUCH GUARANTOR MAY HAVE
TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE RELATING TO
THIS GUARANTY, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS GUARANTY OR ANY
TRANSACTION CONTEMPLATED IN ANY OF SUCH DOCUMENTS.  EACH GUARANTOR ACKNOWLEDGES THAT THE
FOREGOING WAIVER IS KNOWING AND VOLUNTARY.

 

Each Guarantor acknowledges
that it has read and understood all the provisions of this Guaranty, including
the waiver of jury trial, and has been advised by counsel as necessary or
appropriate.

 

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WITNESS the due
execution hereof as a document under seal, as of the date first written above,
with the intent to be legally bound hereby.

 

	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
  New Horizons Education Corporation

  
	
   

  	
  New Horizons Computer Learning Center of Albuquerque, Inc.

  
	
   

  	
  NHCLC of San Antonio, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Hartford, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Denver, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Charlotte, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Sacramento, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Cleveland, Ltd, LLC

  
	
   

  	
  New Horizons Computer Learning Center of Indianapolis, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Indianapolis, LLC

  
	
   

  	
  New Horizons Computer Learning Center of Memphis, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Santa Ana, Inc.

  
	
   

  	
  New Horizons Computer Learning Centers, Inc.

  
	
   

  	
  Computer Training Associates of Chicago, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Nashville, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Metropolitan New
  York, Inc.

  
	
   

  	
  New Horizons Computer Learning Center of Atlanta, Inc.

  
	
   

  	
  New Horizons Franchising Group, Inc.

  
	
   

  	
  New Horizons Computer Learning Centers EMEA, LLC

  
	
   

  	
  New Horizons Computer Learning Centers APAC, LLC

  
	
   

  	
  Nova Vista, LLC

  
	
   

  	
  NH Mexico, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit
10.1

 

CONFIDENTIAL RELEASE AND WAIVER
OF CLAIMS (“Release”)

 

1.               Release of Claims. In exchange for the benefits described in
Paragraph 2 below, I, Dawson Steven Lin, hereby
release and forever discharge Capmark Finance Inc. (“Capmark”), Capmark Financial
Group Inc. (“Parent”) and Parent’s subsidiaries and related entities and
companies, any and all of their respective employee benefit plans, fringe
benefit plans or programs, and any and all of their respective present and past
officers, directors, shareholders, employees, agents and representatives, and
the successors and assigns of each (all of the foregoing, collectively and
together with Capmark and Parent, the “Capmark Group”) from any and all manner
of claims, suits, demands, actions, causes of action, administrative claims,
liability, claims for damages, class action claims or other claims made on my
behalf whatsoever that I, my heirs, representatives, agents, successors,
guardians, trusts, trustees or assigns ever had, have now or may have, whether
known or unknown, that arise on or before the date of my execution of this
Release (collectively, the “Released Claims”). The Released Claims include but
are not limited to any and all claims arising from or relating to my
recruitment or hiring by, or my employment with, Capmark and/or any entity
within the Capmark Group, any contingent or otherwise discretionary
compensation awards or payments of any kind whatsoever, any Parent common stock
(“Common Stock”) or options to purchase Common Stock issued to me, any
provisions of my Amended and Restated Management Stockholder’s Agreement and
Stock Option Agreements with Parent, any pending applications for employment
with Capmark and/or any entity within the Capmark Group, or my separation of
employment from Capmark and/or any entity within the Capmark Group including,
but not limited to: (i) any claim (including any claim with respect to
taxes of any kind) arising under the Employee Retirement Income Security Act of
1974, Title VII of the Civil Rights Act, 42 U.S.C. § 2000e et seq., the
Pennsylvania Human Relations Act, 43 P.S. § 951 et seq., the Americans
with Disabilities Act, 42 U.S.C. § 12101, et seq., the Family and
Medical Leave Act, 29 U.S.C. § 2601 et seq., the Age Discrimination in
Employment Act (“ADEA”), 29 U.S.C. § 621 et seq., any other federal,
state or local law, or any law of any jurisdiction outside of the United States
as applicable, (ii) breach of contract claims, (iii) defamation,
wrongful discharge, emotional distress or any other tort claim, (iv) any
common law claim, and (v) any claim for attorneys’ fees and costs, arising
in law or equity. In addition, to the extent applicable, I expressly waive and
release all rights under California Civil Code section 1542 which states
(language in parentheses added):

 

A general release does not extend to claims which
the creditor (e.g., employee) does not know or suspect to exist in his or her
favor at the time of executing the release, which, if known by him or her, must
have materially affected his settlement with the debtor (e.g., the employer).

 

Without limiting or modifying my release and waiver
of the Released Claims as set forth herein, the Released Claims do not include
any right, claim or remedy arising after the date on which I sign this Release
nor does this Release prevent me from participating, cooperating, initiating or
assisting in an investigation or proceeding conducted within the Capmark Group
or by any government agency, oversight board, commission or other 

 

1

 

regulatory or investigative body; provided, however,
with respect to any such investigation or proceeding or related charges, I
hereby waive and release all claims for any recovery of monetary damages and
any other form of personal relief attributable to events or omissions occurring
on or before the date on which I sign this Release.

 

2.               Release Consideration. In consideration for my execution of this
Release, Capmark (or its affiliate) agrees to make a lump sum severance payment
to me in the total gross amount of Six Hundred Thousand U.S. Dollars (U.S.
$600,000.00), less all applicable United States federal, state, local and
international taxes, if applicable, and benefit withholdings. I acknowledge
that in the absence of my execution of this Release, I would not be entitled to
the benefits described in this Paragraph 2. I acknowledge further that such
benefits are adequate and satisfactory consideration for me. Capmark (or its
affiliate) agrees to make the payment referenced in this Paragraph 2 within 30
days after February 26, 2009, provided it has received an executed copy of
this Release.

 

3.               Future Payments and Benefits. I agree and understand that the Capmark
Group does not have and will not have any obligation to provide me at any time
in the future with any payment or benefit other than those set forth in
Paragraph 2 above, including but not limited to any bonus, commission,
contingent compensation or equity repurchase payment, except for any (i) vested
options that I may have under my stock option agreements dated March 23,
2006 and June 1, 2007, (ii) benefit to which I may be entitled under
the terms of the Capmark Financial Group Inc. Savings Incentive Plan and the Consolidated Omnibus Budget Reconciliation
Act (COBRA) and (iii) rights
to the payments and benefits described in the Amended and Restated Human
Resources Memorandum to me from Linda Pickles dated September 23, 2008.

 

4.               Non-disparagement. I agree that I will not make any
disparaging comment, orally or in writing (including but not limited to email
messages, blogs, text messages and other electronic transmissions), about any
entity within the Capmark Group, or any shareholder, former or current
employee, consultant, advisor, director, service or product of any entity
within the Capmark Group, except as required by law or in connection with
litigation or other governmental or regulatory proceeding, investigation or
filing. I agree and acknowledge that I will use my best efforts to cooperate in
the future with Capmark regarding questions that may arise from time to time
regarding my duties at Capmark (or any other entity within the Capmark Group)
while I was an employee.

 

5.               End of Employment. I agree that my last day of employment by
Capmark is September 30, 2008 (the “Separation Date”) and that Capmark
(and any other entity within the Capmark Group) has no obligation to re-employ
or hire me in the future.

 

6.               Resignation. I hereby tender my resignation, effective as of the Separation Date,
from all positions as an, employee, officer, director and any other appointment
or designation (including but not limited to that of authorized signer) of or
by any and all entities within the Capmark Group.

 

7.               Assignment. To the extent, if any, that I have rights in any invention,
improvement, discovery, process, program, product or system developed by me
during my employment 

 

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with Capmark, I hereby irrevocably transfer, assign
and convey such rights to Capmark and agree that Capmark shall be and remain
the sole and exclusive owner of all right, title and interest in and to any
such invention, improvement, discovery, process, program, product or system,
including, but not limited to, all patent, copyright, trade secret and other proprietary
rights therein that may be secured in any place under laws now or hereinafter
in effect.

 

8.               Non-disclosure. I agree and acknowledge that during the
course of my employment with Capmark, I had access and was privy to
information, documents and other materials relating to the business of and
entities within the Capmark Group that are confidential and/or proprietary to
entities within the Capmark Group or which constitute or contain the trade
secrets of entities within the Capmark Group (collectively “Confidential
Information”), the disclosure of which could cause irreparable harm to entities
within the Capmark Group. Examples of Confidential Information include, but are
not limited to, borrower contact lists, source code, client information, and any
deal-specific information. I agree not to discuss or disclose to any person or
entity or use any of the Confidential Information without prior and specific
written permission from Parent’s Executive Vice President & Chief
Administrative Officer or General Counsel. I further agree that I have returned
to Capmark all company property, including all Confidential Information, in my
possession.

 

9.               Non-solicitation. I acknowledge and agree to remain bound by
all of my covenants and obligations against soliciting or offering employment
to any person employed by Capmark or any entity within the Capmark Group as set
forth in each of my Amended and Restated Management Stockholder’s Agreements
with Parent, respectively dated March 23, 2006 and June 1, 2007. Such
covenants and obligations remain unchanged and survive the effective date of
this Release in accordance with their terms.

 

10.         Successors and Assigns. Capmark’s rights under this Release shall
inure to the benefit of and shall be binding upon the successors and assigns of
Capmark. I shall not be entitled to assign any of my rights or obligations
under this Release.

 

11.         No Admission. Nothing about the existence of this Release
or any of its provisions shall be considered any type of admission of any
wrongdoing, liability, fault or violation of law attributable to me or any
person or entity within the Capmark Group.

 

12.         Confidentiality. I understand and agree that I have not and
will not reveal, disclose or discuss in any fashion the contents or terms of
this Release, except to immediate family members, tax advisors, legal counsel
or as required by law, or to enforce the terms of this Release without prior
express written consent of the Executive Vice President & Chief
Administrative Officer of Parent or its General Counsel. I understand that
Capmark will keep this Release confidential; provided, however, that the
Capmark Group may, in its reasonable discretion, disclose the contents, terms
and/or copies of this Release: (a) to those people who have a legitimate business
reason to know, (b) to enforce the terms of this Release, (c) as
required under any contractual obligation of any entity within the Capmark
Group and (d) in accordance with applicable law, rule, regulation or other
legal authority requiring such disclosure including, without limitation, any
required filings with 

 

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the Securities and Exchange Commission. I understand
further that if Capmark receives inquiries from prospective employers or other
third parties regarding my employment with Capmark, it will disclose only the
dates of my employment and final job title. I agree to direct such inquires to
Parent’s Human Resources Department.

 

13.         Governing Law. This Release is made and entered into in
the accordance with the laws of the Commonwealth of Pennsylvania and shall in
all respects be interpreted, enforced and governed under the laws of
Pennsylvania.

 

14.         Entire Agreement. This Release contains the entire agreement
of the parties with respect to the subject matter hereof and merges all prior
negotiations, agreements and understandings, if any. No modification, release,
discharge or waiver of any provision of this Release shall be of any force or
effect unless made in writing and signed by me and Parent’s Executive Vice
President & Chief Administrative Officer or General Counsel and
specifically identified as a modification, release or discharge of this Release.
If any term, clause or provision of this Release shall for any reason be
adjudged invalid, unenforceable or void, the same shall not impair or
invalidate any of the other provisions of this Release, all of which shall be
performed in accordance with their respective terms.

 

12. Acknowledgments. By signing this Release, I acknowledge and
agree that:

 

a.                                       I have carefully read and understood all of
the provisions and terms of this Release;

 

b.                                      I have signed this Release knowingly and
voluntarily;

 

c.                                       Capmark advises me to consult with counsel
prior to signing this release;

 

d.                                      Capmark has provided me seven (7) calendar
days from my receipt of this Release, to consider its terms (the “Consideration
Period”), and the parties further agree that changes, if any, whether material
or not, will not restart the Consideration Period;

 

e.                                       In signing this Release, I have not relied on
any representations or statements, whether oral or written, other than the
express language contained herein.

 

[Signature Page Follows]

 

4

 

I
HAVE CAREFULLY READ THIS ENTIRE RELEASE. I UNDERSTAND THAT BY SIGNING THIS
RELEASE, I AM WAIVING ALL CLAIMS AGAINST ANY AND ALL ENTITIES WITHIN THE
CAPMARK GROUP RELATING TO MY EMPLOYMENT WITH CAPMARK AND THE SEPARATION OF MY
EMPLOYMENT WITH CAPMARK AND/OR ANY ENTITY WITHIN THE CAPMARK GROUP.

 

IN WITNESS WHEREOF, and intending to be legally
bound hereby, I have executed the foregoing Release as of October 3, 2008.

 

 

	
  /s/ Dawson Steven Lin

  	
   

  
	
  Dawson Steven Lin

  	
   

  
	
   

  	
   

  
	
  /s/ Evelyn G.
  Caigoy

  	
   

  
	
  Witness

  	
  (Signature)

  	
   

  
	
   

  	
   

  
	
  Evelyn G. Caigoy

  	
   

  
	
  Witness Name

  	
   

  
			

 

 

	
  FOR AND ON BEHALF OF

  
	
  CAPMARK FINANCIAL GROUP INC. AND

  
	
  CAPMARK FINANCE INC.:

  
	
   

  
	
  /s/ Linda Pickles

  	
   

  
	
  Linda Pickles

  
	
  Executive Vice President &

  
	
  Chief Administrative Officer

  

 

5

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