SEC Contract Filing

Filing Date: 2015-12-18

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>a104validityguaranty.htm
<DESCRIPTION>EXHIBIT 10.4 VALIDITY GUARANTY
<TEXT>
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<a name="s3174112E083CF4B755DEB2C8F694B011"></a><div><div style="line-height:120%;padding-bottom:16px;text-align:left;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;"><br></font></div></div><br><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;text-decoration:underline;">VALIDITY GUARANTY</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The undersigned officers and/or directors and/or shareholders in their respective capacities as Chief Executive Officer (&#8220;CEO&#8221;) and Chief Financial Officer (&#8220;CFO&#8221;) of </font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Wave Systems Corp.</font><font style="font-family:inherit;font-size:12pt;">&#32;located at 480 Pleasant Street, Lee, MA 01238 (&#8220;Seller&#8221;), in order to induce </font><font style="font-family:inherit;font-size:12pt;font-weight:bold;">Marble Bridge Funding Group, Inc.</font><font style="font-family:inherit;font-size:12pt;">&#32;(&#8220;Purchaser&#8221;) to enter into a Receivables Purchase Agreement (&#8220;Agreement&#8221;) with Seller and to from time to time make advances thereunder, hereby warrants, covenants and guaranties to Purchaser that:</font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:0px;"><font style="font-family:inherit;font-size:12pt;">1.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">All Seller&#8217;s accounts which have been or will be repotted to you by or on behalf of the Seller and in which you hold a security interest (&#8220;Accounts&#8221;), whether such reports are in the form of agings, borrowing base certificates, collateral reports or financial statements, are genuine and in all respects what they purport to be, represent bona tide obligations of Seller&#8217;s customers arising out of services provided or the sale and completed delivery of merchandise sold by the Seller (the &#8220;Sold Goods&#8221;) in the ordinary course of it business in accordance with and in full and complete performance of customer&#8217;s (each. a &#8220;Customer&#8217;&#8217;) order therefore.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:0px;"><font style="font-family:inherit;font-size:12pt;">2.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Seller will not do anything to impede or interfere with the normal collection and payment of the invoices assigned to the Purchaser.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:0px;"><font style="font-family:inherit;font-size:12pt;">3.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">The terms stated in all such invoices are true and correct and express the entire agreement between the parties thereto.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:0px;"><font style="font-family:inherit;font-size:12pt;">4.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">Seller will promptly report to Purchaser all accounts on which the original terms of payment have been extended or rewritten and all merchandise repossessed or returned to the client.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:12pt;padding-left:0px;"><font style="font-family:inherit;font-size:12pt;">5.</font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;">All reports, facts, figures and representations given, or caused to be given by Seller, including without limitation all representations respecting Accounts and all calculations concerning the availability of funds, in connection with its Agreement with Purchaser shall to true and correct.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top"><div style="line-height:120%;