Document:

exh10_6b.htm

 

 

 

Exhibit 10.6(b)

 

GUARANTY

 

          1.           RESOURCE CAPITAL CORP., a Maryland corporation (the "Guarantor"), does hereby guarantee full, prompt and complete payment by Resource TRS II, Inc. and its Affiliate successors and assigns under the Agreement (defined below) (collectively, the "Buyer"), of the obligations of the Buyer (the "Obligations") under that certain Purchase Agreement dated as of February 11, 2011 (as the same may be amended, modified or supplemented from time to time, the "Agreement") by and between Churchill Financial Holdings LLC (the "Seller") and Buyer. Capitalized terms used herein have the definitions set forth in the Agreement.

 

          2.                      Nature of Guaranty. This Guaranty constitutes a guarantee of payment when due and payable, and not of collection. The Seller shall not be obligated to file any claim relating to the Obligations to enforce this Guaranty in the event that the Buyer becomes subject to a bankruptcy, reorganization or other similar proceeding. A separate action or actions may be brought and prosecuted against the Guarantor to enforce this Guaranty, irrespective of whether any action is brought against the Buyer or whether the Buyer is joined in any such action or actions. In the event that any payment to the Seller in respect of any Obligation is rescinded by the Buyer or the Guarantor or must otherwise be returned to the Buyer or the Guarantor, the Guarantor shall remain liable hereunder with respect to all then-remaining Obligations. This Guaranty shall extend to and guarantee the obligations under the Agreement of any Affiliate or Affiliates assuming the Obligations of Buyer under the Agreement as a result of the transfer to such Affiliate or Affiliates of all or substantially all of the equity interests in or assets or property of CPAM, as provided in Section 8.11 of the Agreement, and such Affiliate transferees shall also be considered the "Buyer" (and its obligations "Obligations") as defined in this Guaranty.

 

          3.           Duration of the Guaranty. This Guaranty is continuing and shall remain in full force and effect until the indefeasible payment and performance in full of all the Obligations, shall be binding upon the Guarantor, its successors and assigns, and shall inure to the benefit of and be enforceable solely by the Seller as set forth in Section 12 below. The parties hereto acknowledge and agree that all Obligations have been created in reliance hereon. Notwithstanding the foregoing, if each of the conditions with respect to Seller set forth in clauses (a), (b) and (c) of Section 8.10 of the Agreement occur, then the maximum amount of the obligations of Guarantor under this Guaranty shall be, (x) for the period beginning on the date on which sale proceeds are distributed to Seller's equity owners as described in clause (i) of Section 8.10 of the Agreement to and including July 10, 2012, $5,000,000, (y) from July 11, 2012 to and including July 10, 2013, $1,000,000, and (z) thereafter, zero.

 

          4.           Preservation of Rights. The obligations of the Guarantor under this Guaranty shall, to the fullest extent permitted under applicable law, be absolute, irrevocable and unconditional irrespective of the failure of the Seller to assert any claim or demand or enforce any right, power or remedy against the Buyer; the invalidity, illegality or unenforceability of the Agreement or any other agreement or instrument referred to therein; the release or discharge of any obligation of the Buyer under the Agreement (other than, for the avoidance of doubt, due to the release or other discharge of the Obligations); the agreement of any Person after the date hereof to accept liability for any Obligation, any change in the corporate existence, structure or

  

  

  

ownership of the Buyer, or any bankruptcy, reorganization or other similar proceeding affecting the Buyer or any of its assets; the existence of any claim, set-off or other right that the Guarantor may have at any time against the Buyer, whether in connection with any Obligation or otherwise; the adequacy of any other means the Seller has or may have of obtaining performance of any Obligation; or any other act or omission that might in any manner or to any extent vary the risk of the Guarantor or otherwise operate as a discharge of the Guarantor as a matter of law or equity.

 

          5.           Extensions, Waivers and Renewals. The Guarantor agrees that the Seller may, at any time and from time to time, without notice to or consent of the Guarantor, make any agreement with the Buyer for the extension, renewal, payment, compromise, discharge or release of any Obligation, in whole or in part, or for any modification of the terms of the Agreement, which may modify the Obligations without in any way impairing the validity of this Guaranty.

 

          6.           No Waiver; Cumulative Rights. No amendment or waiver of any provision of this Guaranty will be valid and binding unless it is in writing and signed by the Guarantor and the Seller. No failure on the part of the Seller to exercise, or delay in exercising, any right, remedy or power hereunder, whether intentional or not, shall operate as a waiver thereof, nor shall any single or partial exercise by the Seller of any such right, remedy or power preclude any other or future exercise by the Seller thereof. Each and every right, remedy and power hereby granted to the Seller or allowed to it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by the Seller.

 

          7.           Waiver of Notice. To the fullest extent permitted by law, the Guarantor hereby waives notice of the acceptance of this Guaranty, presentment, demand, notice of dishonor, protest and all other notices,  including notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Seller on this Guaranty or acceptance of this Guaranty, and hereby irrevocably and expressly waives any and all rights or defenses arising by reason of any law which would otherwise require any election of remedies by the Seller. The Guarantor acknowledges that it will receive substantial direct and indirect benefits from the transactions contemplated by the Agreement and that the waivers set forth in this Guaranty are knowingly made in contemplation of such benefits and after the advice of counsel.

 

          8.           No Subrogation. Until all Obligations of the Buyer to the Seller have been paid in full, the Guarantor shall not be entitled to and shall not seek, by reason of the existence of this Guaranty or it having made any payment hereunder, to exercise any rights that it may now have or hereafter acquire against the Buyer with respect to any such payment, including any right to be subrogated to the rights of the Seller with respect to such payment or otherwise to be reimbursed, indemnified or exonerated by or to receive contribution from the Buyer in respect thereof, and any right to participate in any claim or remedy of the Seller against the Guaranteed Party, whether arising by contract or operation of law (including any such right arising under bankruptcy or insolvency laws) or otherwise.

  

  

  

          9.           Representations and Warranties. The Guarantor represents that, as of the date hereof: 

 

(a)  it is duly organized and validly existing under the applicable law of the jurisdiction of its incorporation and has full power and legal right to execute and deliver this Guaranty and to perform the provisions of this Guaranty on its part to be performed;

 

   (b)  its execution, delivery and performance of this Guaranty have been duly authorized by all necessary corporate action, and all material consents, approvals, authorizations, permits of, filings with and notifications to, any Governmental Authority necessary for the due execution, delivery and performance of this Guaranty by Guarantor have been obtained or made and all conditions thereof have been duly complied with, and no other material action by, and no material notice to or material filing with, any Governmental Authority, is required in respect of the execution, delivery or performance of this Guaranty;

 

         (c)  this Guaranty constitutes the valid and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its terms, subject, as to enforcement, to bankruptcy, insolvency, reorganization, and other laws of general applicability relating to or affecting creditors' rights and to general equity principles; and

 

         (d)   the execution, delivery and performance by the Guarantor of this Guaranty does not (i) violate the organizational documents of the Guarantor or (ii) violate any applicable law, regulation, rule, decree, order or judgment applicable to Guarantor.

 

                 10.          Assignment. The Guarantor may not assign or transfer its rights, interests, or obligations hereunder to any Person, other than to a successor by merger or any Person to whom the Guarantor transfers substantially of its assets, without the prior written consent of the Seller, such consent not to be unreasonably withheld, and any attempted assignment or transfer without such consent shall be null and void.

                 11.          Notices. All notices that are required or permitted hereunder shall be in writing and shall be sufficient if personally delivered or sent by registered or certified mail, facsimile message or Federal Express or other nationally recognized overnight delivery service. Any notices shall be deemed given upon the earlier of the date when received at, or the third day after the date when sent by registered or certified mail or the day after the date when sent by Federal Express or facsimile to, the address or facsimile number set forth below, unless such address or facsimile number is changed by notice to the other Parties:

 

if to Guarantor:

 

Resource Capital Corp.

 

One Crescent Drive, Suite 203

 

Navy Yard Corporate Center

 

Philadelphia, PA 19112

  

  

  

 

Attention: David J. Bryant

 

Telecopier:    (215) 465-0600

 

with a required copy to:

 

Michael S. Yecies

 

Chief Legal Officer

 

Resource Capital Corp.

 

1845 Walnut Street, 10th Floor

 

Philadelphia, PA 19103

 

Telecopier:                       (215) 761-0456

 

and a required copy to:

 

Covington & Burling LLP

 

The New York Times Building 620 Eighth Avenue

 

New York, NY 10018

 

Attention: Philipp Tamussino

 

Telecopier:                       (212) 841-1010

 

if to the Seller:

 

Churchill Financial Holding LLC

 

400 Park Avenue

  

  

  

 

Suite 1510

 

New York, NY 10022

 

Attention: Kenneth J. Kencel

 

Telecopier:                       (212) 763-4601

 

with a required copy to:

 

Kevin J. Dooley

 

General Counsel

 

Churchill Financial Group, Inc.

 

333 South 7th Street, Suite 2400

 

Minneapolis, MN 55402

 

12.           Governing Law, Arbitration, and Consent to Jurisdiction.

 

THIS GUARANTY SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY CHOICE OF LAW OR CONFLICT OF LAW, CHOICE OF FORUM OR PROVISION, RULE OR PRINCIPLE THAT MIGHT OTHERWISE REFER CONSTRUCTION OR INTERPRETATION OF THIS GUARANTY TO THE SUBSTANTIVE LAW OF ANOTHER JURISDICTION. THE PARTIES HEREBY IRREVOCABLY (A) SUBMIT THEMSELVES TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE STATE OF NEW YORK AND (B) WAIVE THE RIGHT AND HEREBY AGREE NOT TO ASSET BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE IN ANY ACTION, SUIT OR OTHER LEGAL PROCEEDING BROUGHT IN ANY SUCH COURT, ANY CLAIM THAT IT, HE OR SHE IS NOT SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT SUCH ACTION, SUIT OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH ACTION, SUIT OR PROCEEDING IS IMPROPER.

 

13.           Waiver of Jury Trial. The parties each hereby irrevocably waive trial by jury in any judicial proceeding involving, directly or indirectly, any matters (whether

  

  

  

sounding in tort, contract or otherwise) in any way arising out of, related to or connected with this Guaranty or the actions of such party in the negotiation, administration, performance and enforcement hereof.. 

 

          14.           Interpretation. The headings contained in this Guaranty are for reference purposes only and shall not affect in any way the meaning or interpretation of this Guaranty. Unless the context of this Guaranty otherwise requires (i) words of any gender are deemed to include each other gender, (ii) words using singular or plural number also include the plural or singular, respectively, (iii) the terms "hereof', "herein", "hereby", "hereto", and derivative or similar words refer to this entire Guaranty, and (iv) the words "include", "includes" or "including" shall be deemed to be followed by "without limitation."

 

          15.           Counterparts. This Guaranty may be executed in two or more counterparts, each of which shall be binding as of the date first written above, and when delivered, all of which shall constitute one and the same instrument. This Guaranty and any documents delivered pursuant thereto, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or as an attachment to an electronic mail message in "pdf" or similar format, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version there delivered in person. AT the request of any party hereto or to any such agreement or instrument, each other party shall re-execute original forms thereof and deliver them to all other parties. No party to any such agreement or instrument shall raise the use of a facsimile machine or electronic mail attachment in "pdf" or similar format to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or as an attachment to an electronic mail message as a defense to the formation of a contract and each such party forever waives any such defense. A facsimile signature or electronically scanned copy of a signature shall constitute and shall be deemed to be sufficient evidence of a party's execution of this Guaranty, without necessity of further proof. Each such copy shall be deemed an original, and it shall not be necessary in making proof of this Guaranty to produce or account for more than one such counterpart.

 

          16.           Entire Agreement.  This Guaranty, together with the Transaction Documents, constitute the entire understanding and agreement of the parties hereto with respect to the subject matter hereof and supersedes all other prior agreements and understandings, written or oral, between the parties with respect to such subject matter.

 

          17.           Severability. If any provision of this Guaranty, or the application thereof to any Person or circumstance, is invalid or unenforceable in any jurisdiction, (a) a substitute and equitable provision shall be substituted therefor in order to carry out, so far as may be

  

  

  

valid and enforceable in such jurisdiction, the intent and purpose of the invalid or unenforceable provision; and (b) the remainder of this Guaranty and the application of such provision to other Persons or circumstances shallmot be affected by such invalidity or unenforceability, nor shall such invalidity or unenforoeability of such provision affect the validity or enforceability of such provision, or the! application thereof, in any other jurisdiction.

 

	 	RESOURCE CAPITAL CORP., as Guarantor	 
	 	 	 	 
	
 

	
By: 

	/s/   David Bryant	 
	 	 	Name:  David Bryant 	 
	 	 	Title:    SVP & CFOex-10_1.htm

Eco-Trade Corp. 8-K

 

 

Exhibit 10.1

 

ECO-TRADE CORP.

 

9270 Two Notch Road, Suite 4

Columbia, SC 29223

(803) 699-4940

 

May 10, 2011

 

Alexander Smirnov

 

Letter of Appointment – Board of Directors

 

Dear Mr. Smirnov:

 

We are pleased that you accepted the role of Director and Chairman of the Board on the Board of Directors (the “Board”) of ECO-Trade Corp., (the “Company”). This letter contains the terms of your appointment as Director of the Company.

 

	
1.

	
Your Duties:

	
  

	
a)

	
You will be expected to attend all meetings (either in person or by teleconference) of the Board of the Company, of which we expect to hold approximately four per annum as well as sign all written consents if you deem appropriate.  In addition, you will be expected to perform such other duties as are reasonably contemplated by your holding office as Director of the Company or which may reasonably be assigned to you by the Board from time to time.

 

	
  

	
b)

	
As Director you will:

 

	
  

	
i)

	
Perform to the best of your abilities and knowledge the duties reasonably assigned to you by the Board from time to time, whether during or outside business hours and at such places as the Board reasonably requires;

 

	
  

	
ii)

	
Use all reasonable efforts to promote the interests of the Company;

 

	
  

	
iii)

	
Attend directors’ meetings;

 

	
  

	
iv)

	
Act in the best interests of the Company; and

 

	
  

	
v)

	
Work closely with the of Directors and the Chief Executive Officer.

 

	
  

	
c)

	
As you will appreciate, however, your time commitment will ultimately be a product of the matters confronting the Company from time to time and matters properly requiring your attention as a director of the Company.

 

	
2.

	
Preferred Stock:  The Company acknowledge that through your private corporation you are the owner of 300,000 shares of the Company’s Series E Convertible Preferred Stock (“Series E”).  The Company acknowledge that you have notifies it about the partial conversion of 50,000 of the Series E into 100,000,000 shares of Common Stock.

 

  

  

  

 

	
3.

	
Expenses:  Subject to you providing the Company with receipts or other evidence of payment, the Company will pay for or reimburse you for all travelling, hotel and other expenses reasonably incurred by you in connection with attending and returning from Board, Committee, Company, meetings or otherwise in connection with the Company's business.  Reasonable travel and out of pocket expenses used in connection with the business of the Group shall include:

 

	
  

	
a)

	
Cell phone bills;

 

	
  

	
b)

	
Domestic and international travel (economy class under 4 hours and business class over 4 hours); and

 

	
  

	
c)

	
Hotel accommodation.

 

	
4.

	
Termination of Appointment:

 

	
  

	
a)

	
Your appointment as the Director may be terminated at any time by the vote of the stockholders of the Company in accordance with the certificate of incorporation and bylaws of the Company.

 

	
  

	
b)

	
You acknowledge and agree that if the shareholders of the Company terminate your appointment, you will have no claim of any kind against the Company by reason of the termination.

 

	
  

	
c)

	
You are at liberty to terminate the appointment at any time by notice in writing to the Company.

 

	
5.

	
What happens after termination of appointment?

 

	
  

	
If your appointment is terminated for any reason or you resign for any reason:

 

	
  

	
a)

	
The Company may set off any amounts you owe the Company against any amounts the Company owes to you as a Director at the date of termination except for amounts the Company is not entitled by law to set off;

 

	
  

	
b)

	
You must return all the Company's property (including property leased by the Company) to the Company on termination including all written or machine readable material, software, computers, credit cards, keys and vehicles; and

 

	
  

	
c)

	
You must not record any confidential information in any form after termination.

 

	
6.

	
Prohibited Activities:

 

	
  

	
a)

	
You undertake to the Company that you will not during the term of your appointment engage in a business or an activity that would place you in a position of conflict in respect of the performance of your duties.

 

	
  

	
b)

	
The terms of your appointment do not restrict you from accepting appointment as director of any other company outside of the Company’s industry, providing consulting services or any other business or other activity whatsoever.  The Company acknowledges and accepts your current roles as a director.

 

  

  

  

 

	
7.

	
Notices and Other Communications:

 

	
  

	
a)

	
Service of Notices

 

	
  

	
A notice, demand, consent, approval or communication under this letter (collectively a “Notice”) must be:

 

	
  

	
i)

	
In writing and in English directed to the address advised by the recipient for notices, as varied by any notice; and

 

	
  

	
ii)

	
Hand delivered or sent by prepaid post or facsimile to that address.

 

	
  

	
b)

	
Effective on Receipt:  A Notice given in accordance with section 7a takes effect when received (or at a later time specified in the Notice), and is taken to be received:

 

	
  

	
i)

	
If hand delivered, on delivery;

 

	
  

	
ii)

	
If sent by prepaid post, two Business Days after the date of posting (or seven Business Days after the date of posting if posted to or from outside The United States of America);

 

	
  

	
iii)

	
If sent by facsimile, when the sender's facsimile system generates a message confirming successful transmission of the entire Notice unless, within eight Business Hours after the transmission, the recipient informs the sender that it has not received the entire Notice;

 

	
  

	
but if the delivery, receipt or transmission is not on a Business Day or is after 5.00pm on a Business Day, the Notice is taken to be received at 9.00am on the Business Day after that delivery, receipt or transmission.

 

	
8.

	
Miscellaneous

 

	
  

	
a)

	
Alterations:  This letter may be altered only in writing signed by each party.

 

	
  

	
b)

	
Approvals and consents:  Except where this letter expressly states otherwise, a party may, in its discretion, give conditionally or unconditionally or withhold any approval or consent under this letter.

 

	
  

	
c)

	
Assignment:  This letter may NOT be assigned by either party.

 

	
  

	
d)

	
Costs:  Each party must pay its own costs of negotiating, preparing and executing this letter.

 

	
  

	
e)

	
Survival:  Any indemnity in this letter is independent and survives termination of this letter.  Any other provision by its nature intended to survive termination of this letter survives termination of this letter.

 

	
  

	
f)

	
Counterparts:  This letter may be executed in counterparts.  All executed counterparts constitute one document.

 

	
  

	
g)

	
No Merger:  The rights and obligations of the parties under this letter do not merge on completion of any transaction contemplated by this letter.

 

	
  

	
h)

	
Entire Agreement:  This letter constitutes the entire agreement between the parties in connection with its subject matter and supersedes all previous agreements or understandings between the parties in connection with its subject matter.

 

	
  

	
i)

	
Further Action:  Each party must do, at its own expense, everything reasonably necessary (including executing documents) to give full effect to this letter and the transactions contemplated by it.

  

  

  

 

	
  

	
j)

	
Waiver:  A party does not waive a right, power or remedy if it fails to exercise or delays in exercising the right, power or remedy.  A single or partial exercise of a right, power or remedy does not prevent another or further exercise of that or another right, power or remedy.  A waiver of a right, power or remedy must be in writing and signed by the party giving the waiver.

 

	
  

	
k)

	
Relationship:  Except where this letter expressly states otherwise, it does not create a relationship of employment, agency or partnership between the parties.

 

	
  

	
l)

	
Confidentiality:  A party may only use the confidential information of another party for the purposes of this letter, and must keep the existence of this letter and the terms of it and the confidential information of another party confidential information except where:

 

	
  

	
i)

	
The information is public knowledge (but not because of a breach of this letter) or the party has independently created the information;

	
or

 

	
  

	
ii)

	
Disclosure is required by law or a regulatory body (including a relevant stock exchange).

 

	
  

	
m)

	
Announcements:  A public announcement in connection with this letter or a transaction contemplated by it must be agreed by the parties before it is made, except if required by law or a regulatory body (including a relevant stock exchange).

 

	
9.

	
Contract for Services:  This is a contract for services and is not a contract of employment.

 

	
10.

	
Governing Law:  This Agreement shall be governed by the laws of the State of New York (without giving effect to choice of law principles or rules thereof that would cause the application of the laws of any jurisdiction other than the State of New York) and the invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating or affecting the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Please sign the attached copy of this letter to indicate that you have read, understood and accept the terms of your appointment.

 

Yours Sincerely,

 

ECO-Trade Corp.

 

/s/William Lieberman

 

 

Agreed to and accepted by:

 

/s/ Alexander Smirnov

Alexander Smirnov

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