GUARANTY
This
GUARANTY
(as
amended, restated, supplemented, or otherwise modified and in effect from time
to time, this “Guaranty”)
is
made as of this ____ day of ____, 2008 , by Options
Acquisition Sub,, Inc., a Delaware corporation (“the
“Guarantor”)
in
favor of CUSTOMER
ACQUISITION NETWORK HOLDINGS, INC.,
a
Delaware corporation.(the “Secured
Party”).
W
I T N E S S E T H:
WHEREAS,
as of the date hereof, the Secured Party has made a loan and certain other
financial accommodations (collectively, the “Loan”)
to
OPTIONS
MEDIA GROUP HOLDINGS, INC., a
Nevada
corporation (the “Company”),
as
evidenced by those certain secured senior note in an original aggregate
principal amount of $_____________ (such
note, together with any promissory notes or other securities issued in exchange
or substitution therefor or replacement thereof, and as any of the same may
be
amended, supplemented, restated or modified and in effect from time to time,
the
“Note”);
WHEREAS,
pursuant to a Pledge Agreement of even date herewith (as the same may be
amended, restated, supplemented or otherwise modified and in effect from time
to
time, the “Pledge
Agreement”)
by the
Company in favor of the Secured Party, the Company has created a lien on and
security interest in all of the capital stock and other equity interests of
the
Guarantor to the Secured Party, and pledged such capital stock and equity
interests to the Secured Party, for its benefit;
WHEREAS,
pursuant to a Security Agreement of even date herewith (as the same may be
amended, restated, supplemented or otherwise modified and in effect from time
to
time, the “Security
Agreement”)
by the
“Debtors” (as defined therein) in favor of the Secured Party, such Debtors have
granted the Secured Party , for its benefit, a first priority security interest
in, and lien upon and pledge of each of their rights in the Collateral (as
defined in the Security Agreement); and
WHEREAS,
the Guarantor is a direct subsidiary of the Company and, as such, will derive
substantial benefit and advantage from the Loans and other financial
accommodations available to the Company set forth in the Note, and it will
be to
each Guarantor’s direct interest and economic benefit to assist the Company in
procuring said Loans and other financial accommodations from the Secured
Party.
NOW,
THEREFORE,
for and
in consideration of the premises and in order to induce the Secured Party to
make the Loans, and for other good and valuable consideration, the receipt
and
sufficiency of which are hereby acknowledged, the Guarantor hereby agrees as
follows:
1. Definitions.
As
used
herein:
“Bankruptcy
Code”
shall
mean
the
Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et
seq.),
as
amended and in effect from time to time thereunder.
“Event
of Default”
shall
have the meaning ascribed to such term in the Note.
“Obligations”
shall
mean (i) all obligations, liabilities and indebtedness of every nature of the
Company from time to time owed or owing to the Secured Party, including, without
limitation, all obligations, liabilities and indebtedness of every nature of
the
Company under the Loan, the Note, the Security Agreement and the other
transaction documents, including, without limitation, the principal amount
of
all debts, claims and indebtedness, accrued and unpaid interest and all fees,
taxes, indemnities, costs and expenses, whether primary, secondary, direct,
contingent, fixed or otherwise, heretofore, now and/or from time to time
hereafter owing, due or payable whether before or after the filing of a
bankruptcy, insolvency or similar proceeding under applicable federal, state,
foreign or other law and whether or not an allowed claim in any such proceeding,
and (ii) all obligations, liabilities and indebtedness of every nature of
the Guarantor from time to time owed or owing to the Secured Party, including,
without limitation, all obligations, liabilities and indebtedness of every
nature of the Guarantor under or in respect of this Guaranty, the Loan, the
Note, the Pledge Agreement, the Security Agreement, and the other documents
executed in relation to the Loan (the “Transaction
Documents”),
as
the case may be, including, without limitation, the principal amount of all
debts, claims and indebtedness, accrued and unpaid interest and all fees, taxes,
indemnities, costs and expenses, whether primary, secondary, direct, contingent,
fixed or otherwise, heretofore, now and/or from time to time hereafter owing,
due or payable whether before or after the filing of a bankruptcy, insolvency
or
similar proceeding under applicable federal, state, foreign or other law and
whether or not an allowed claim in any such proceeding.
2. Guaranty
of Payment.
(a) The
Guarantor hereby unconditionally and irrevocably guaranties the full and prompt
payment and performance to the Secured Party when due, upon demand, at maturity
or by reason of acceleration or otherwise and at all times thereafter, of any
and all of the Obligations.
(b) The
Guarantor acknowledges that valuable consideration supports this Guaranty,
including, without limitation, the consideration set forth in the recitals
above, as well as any commitment to lend, extension of credit or other financial
accommodation, whether heretofore or hereafter made by the Secured Party to
the
Company; any extension, renewal or replacement of any of the Obligations; any
forbearance with respect to any of the Obligations or otherwise; any
cancellation of an existing guaranty; any purchase of any of the Company’s
assets by the Secured Party; or any other valuable consideration.
(c) The
Guarantor agrees that all payments under this Guaranty shall be made in United
States currency and in the same manner as provided for the
Obligations.
(d) Notwithstanding
any provision of this Guaranty to the contrary, it is intended that this
Guaranty, and any interests, liens and security interests granted by the
Guarantor as security for this Guaranty, not constitute a “Fraudulent
Conveyance” (as defined below) in the event that this Guaranty or such interest
is subject to the Bankruptcy Code or any applicable fraudulent conveyance or
fraudulent transfer law or similar law of any state. Consequently, the Guarantor
and the Secured Party agree that if this Guaranty, or any such interests, liens
or security interests securing this Guaranty, would, but for the application
of
this sentence, constitute a Fraudulent Conveyance, this Guaranty and each such
lien and security interest shall be valid and enforceable only to the maximum
extent that would not cause this Guaranty or such interest, lien or security
interest to constitute a Fraudulent Conveyance, and this Guaranty shall
automatically be deemed to have been amended accordingly at all relevant times.
For purposes hereof, “Fraudulent
Conveyance”
means
a
fraudulent conveyance under Section 548 of the Bankruptcy Code or a fraudulent
conveyance or fraudulent transfer under the provisions of any applicable
fraudulent conveyance or fraudulent transfer law or similar law of any state,
as
in effect from time to time.
3. Costs
and Expenses. The
Guarantor agrees to pay on demand, all costs and expenses of every kind incurred
bythe Secured Party: (a) in enforcing this Guaranty, (b) in collecting any
of
the Obligations from the Company or the Guarantor, (c) in realizing upon or
protecting or preserving any collateral for this Guaranty or for payment of
any
of the Obligations, and (d) in connection with any amendment of, modification
to, waiver or forbearance granted under, or enforcement or administration of
any
transaction document or for any other purpose in connection with any transaction
document. “Costs
and expenses”
as
used
in the preceding sentence shall include, without limitation, reasonable
attorneys’ fees incurred by the Secured Party in retaining counsel for advice,
suit, appeal, any insolvency or other proceedings under the Bankruptcy Code
or
otherwise, or for any other purpose specified in the preceding
sentence.
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4. Nature
of Guaranty: Continuing, Absolute and Unconditional.
(a) This
Guaranty is and is intended to be a continuing guaranty of payment of the
Obligations, and not of collection, and is intended to be independent of and
in
addition to any other guaranty, indorsement, collateral or other agreement
held
by the Secured Party therefor or with respect thereto, whether or not furnished
by the Guarantor. The Secured Party shall not be required to prosecute
collection, enforcement or other remedies against Company, the Guarantor or
guarantor of the Obligations or any other person or entity, or to enforce or
resort to any of the Collateral or other rights or remedies pertaining thereto,
before calling on the Guarantor for payment. The obligations of the Guarantor
to
repay the Obligations hereunder shall be unconditional. The Guarantor shall
have
no right of subrogation with respect to any payments made by the Guarantor
hereunder until the termination of this Guaranty in accordance with Section
8
below,
and hereby waives any benefit of, and any right to participate in, any security
or collateral given to the Secured Party to secure payment of the Obligations,
and the Guarantor agrees that it will not take any action to enforce any
obligations of the Company to the Guarantor prior to the Obligations being
finally and irrevocably paid in full in cash, provided
that, in
the event of the bankruptcy or insolvency of the Company, the Secured Party
shall be entitled notwithstanding the foregoing, to file in the name of the
Guarantor or in its own name a claim for any and all indebtedness owing to
the
Guarantor by the Company (exclusive of this Guaranty), vote such claim and
to
apply the proceeds of any such claim to the Obligations.
(b) For
the
further security of the Secured Party and without in any way diminishing the
liability of the Guarantor, following the occurrence of an Event of Default,
all
debts and liabilities, present or future of the Company to the Guarantor and
all
monies received from the Company or for its account by the Guarantor in respect
thereof shall be received in trust for the Secured Party and forthwith upon
receipt shall be paid over to the Secured Party, for its benefit, until all
of
the Obligations have been finally and irrevocably paid in full in cash. This
assignment and postponement is independent of and severable from this Guaranty
and shall remain in full effect whether or not the Guarantor is liable for
any
amount under this Guaranty.
(c) This
Guaranty is absolute and unconditional and shall not be changed or affected
by
any representation, oral agreement, act or thing whatsoever, except as herein
provided. This Guaranty is intended by the Guarantor to be the final, complete
and exclusive expression of the guaranty agreement between the Guarantor and
the
Secured Party. No modification or amendment of any provision of this Guaranty
shall be effective against any party hereto unless in writing and signed by
a
duly authorized officer of such party.
(d) The
Guarantor hereby releases the Company from all, and agrees not to assert or
enforce (whether by or in a legal or equitable proceeding or otherwise) any
“claims” (as defined in Section 101(5) of the Bankruptcy Code), whether arising
under any law, ordinance, rule, regulation, order, policy or other requirement
of any domestic or foreign government or any instrumentality or agency thereof,
having jurisdiction over the conduct of its business or assets or otherwise,
to
which the Guarantor is or would at any time be entitled by virtue of its
obligations hereunder, any payment made pursuant hereto or the exercise by
the
Secured Party of its rights with respect to the Collateral, including any such
claims to which the Guarantor may be entitled as a result of any right of
subrogation, exoneration or reimbursement.
3
5. Certain
Rights and Obligations.
(a) The
Guarantor acknowledges and agrees that the Secured Party may, without notice,
demand or any reservation of rights against the Guarantor and without affecting
the Guarantor’s obligations hereunder, from time to time:
(i) renew,
extend, increase, accelerate or otherwise change the time for payment of, the
terms of or the interest on the Obligations or any part thereof or grant other
indulgences to the Company or others;
(ii) accept
from any person or entity and hold collateral for the payment of the Obligations
or any part thereof, and modify, exchange, enforce or refrain from enforcing,
or
release, compromise, settle, waive, subordinate or surrender, with or without
consideration, such collateral or any part thereof;
(iii) accept
and hold any indorsement or guaranty of payment of the Obligations or any part
thereof, and discharge, release or substitute any such obligation of any such
indorser or guarantor, or discharge, release or compromise the Guarantor, or
any
other person or entity who has given any security interest in any collateral
as
security for the payment of the Obligations or any part thereof, or any other
person or entity in any way obligated to pay the Obligations or any part
thereof, and enforce or refrain from enforcing, or compromise or modify, the
terms of any obligation of any such indorser, guarantor, or person or
entity;
(iv) dispose
of any and all collateral securing the Obligations in any manner as the
Collateral Agent, in its sole discretion, may deem appropriate, and direct
the
order or manner of such disposition and the enforcement of any and all
endorsements and guaranties relating to the Obligations or any part thereof
as
the Secured Party t in its sole discretion may determine;
(v) determine
the manner, amount and time of application of payments and credits, if any,
to
be made on all or any part of any component or components of the Obligations
(whether principal, interest, fees, costs, and expenses, or otherwise),
including, without limitation, the application of payments received from any
source to the payment of indebtedness other than the Obligations even though
the
Secured Party might lawfully have elected to apply such payments to the
Obligations to amounts which are not covered by this Guaranty; and
(vi) take
advantage or refrain from taking advantage of any security or accept or make
or
refrain from accepting or making any compositions or arrangements when and
in
such manner as the Secured Party, in its sole discretion, may deem
appropriate;
and
generally do or refrain from doing any act or thing which might otherwise,
at
law or in equity, release the liability of the Guarantor as a guarantor or
surety in whole or in part, and in no case shall the Secured Party be
responsible or shall the Guarantor be released either in whole or in part for
any act or omission in connection with the Secured Party having sold any
security at less than its value.
(b) Following
the occurrence of an Event of Default, and upon demand by the Secured Party,
the
Guarantor hereby agrees to pay the Obligations to the extent hereinafter
provided:
(i) without
deduction by reason of any setoff, defense (other than payment) or counterclaim
of the Company or the Guarantor;
(ii) without
requiring presentment, protest or notice of nonpayment or notice of default
to
the Guarantor, to the Company or to any other person or entity;
4
(iii) without
demand for payment or proof of such demand or filing of claims with a court
in
the event of receivership, bankruptcy or reorganization of the Company or the
Guarantor;
(iv) without
requiring the Secured Party to resort first to the Company (this being a
guaranty of payment and not of collection) or to any other guaranty or any
collateral which the Secured Party may hold;
(v) without
requiring notice of acceptance hereof or assent hereto by the Secured Party;
and
(vi) without
requiring notice that any of the Obligations has been incurred, extended or
continued or of the reliance by the Secured Party upon this
Guaranty;
all
of
which the Guarantor hereby waives.
(c) The
Guarantor’s obligation hereunder shall not be affected by any of the following,
all of which the Guarantor hereby waives:
(i) any
failure to perfect or continue the perfection of any security interest in or
other lien on any collateral securing payment of any of the Obligations or
the
Guarantor’s obligation hereunder;
(ii) the
invalidity, unenforceability, propriety of manner of enforcement of, or loss
or
change in priority of any document or any such security interest or other lien
or guaranty of the Obligations;
(iii) any
failure to protect, preserve or insure any such collateral;
(iv) failure
of the Guarantor to receive notice of any intended disposition of such
collateral;
(v) any
defense arising by reason of the cessation from any cause whatsoever of
liability of the Company including, without limitation, any failure, negligence
or omission by the Guarantor in enforcing its claims against the
Company;
(vi) any
release, settlement or compromise of any obligation of the Company, or any
other
guarantor of the Obligations;
(vii) the
invalidity or unenforceability of any of the Obligations;
(viii) any
change of ownership of the Company or any other guarantor of the Obligations
or
the insolvency, bankruptcy or any other change in the legal status of the
Company, or any other guarantor of the Obligations;
(ix) any
change in, or the imposition of, any law, decree, regulation or other
governmental act which does or might impair, delay or in any way affect the
validity, enforceability or the payment when due of the
Obligations;
5
(x) the
existence of any claim, setoff or other rights which the Guarantor, Company,
or
guarantor of the Obligations or any other person or entity may have at any
time
against the Secured Party or the Company in connection herewith or any unrelated
transaction;
(xi)
the
Secured Party’s election in any case instituted under chapter 11 of the
Bankruptcy Code, of the application of section 1111(b)(2) of the Bankruptcy
Code;
(xii) any
use
of cash collateral, or grant of a security interest by the Company, as debtor
in
possession, under sections 363 or 364 of the Bankruptcy Code;
(xiii) the
disallowance of all or any portion of any of the Secured Party’s claims for
repayment of the Obligations under sections 502 or 506 of the Bankruptcy Code;
or
(xiv) any
other
fact or circumstance which might otherwise constitute grounds at law or equity
for the discharge or release of the Guarantor from its obligations hereunder,
all whether or not the Guarantor shall have had notice or knowledge of any
act
or omission referred to in the foregoing clauses (i) through (xiii) of this
Section 5(c).
6. Representations
and Warranties. The
Guarantor further represents and warrants to the Secured Party that: (a) the
Guarantor is a corporation or other entity duly incorporated or organized,
as
applicable, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation, as applicable, and has full
power, authority and legal right to own its property and assets and to transact
the business in which it is engaged; (b) the Guarantor has full power, authority
and legal right to execute and deliver, and to perform its obligations under,
this Guaranty, and has taken all necessary action to authorize the guarantee
hereunder on the terms and conditions of this Guaranty and to authorize the
execution, delivery and performance of this Guaranty; (c) this Guaranty has
been
duly executed and delivered by the Guarantor and constitutes a legal, valid
and
binding obligation of the Guarantor enforceable against the Guarantor in
accordance with its terms, except to the extent that such enforceability is
subject to applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance and moratorium laws and other laws of general application affecting
enforcement of creditors’ rights generally, or the availability of equitable
remedies, which are subject to the discretion of the court before which an
action may be brought; and (d) the execution, delivery and performance by the
Guarantor of this Guaranty do not require any action by or in respect of, or
filing with, any governmental body, agency or official and do not violate,
conflict with or cause a breach or a default under any provision of applicable
law or regulation or of the organizational documents of the Guarantor or of
any
agreement, judgment, injunction, order, decree or other instrument binding
upon
it.
7. [Reserved]
8. Termination. This
Guaranty shall not terminate until such
time, if any, as (i) all Indebtedness under the Note secured hereby shall be
finally and irrevocably paid in full in cash, (ii) no Note shall remain
outstanding, and (iii) there shall exist no other outstanding payment or
reimbursement obligations (other than contingent indemnification obligations
for
which no claims shall have been asserted) of the Company or the Guarantor to
the
Secured Party under any of the transaction documents. Thereafter, but subject
to
the following, this Guaranty shall automatically terminate and the Secured
Party
take such action and execute such documents as the Guarantor may request (and
at
the Guarantor’s cost and expense) in order to evidence the termination of this
Guaranty. The Guarantor further agrees that, to the extent that the Company
makes a payment or payments to the Secured Party on the Obligations, or the
Secured Party receive any proceeds of collateral securing the Obligations or
any
other payments with respect to the Obligations, which payment or receipt of
proceeds or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be returned or repaid
to
the Company, its estate, trustee, receiver, debtor in possession or any other
person or entity, including, without limitation, the Guarantor, under any
insolvency or bankruptcy law, state or federal law, common law or equitable
cause, then to the extent of such payment, return or repayment, the obligation
or part thereof which has been paid, reduced or satisfied by such amount shall
be reinstated and continued in full force and effect as of the date when such
initial payment, reduction or satisfaction occurred, and this Guaranty shall
continue in full force notwithstanding any contrary action which may have been
taken by the Secured Party in reliance upon such payment, and any such contrary
action so taken shall be without prejudice to the Secured Party’s rights under
this Guaranty and shall be deemed to have been conditioned upon such payment
having become final and irrevocable.
6
9. Guaranty
of Performance. The
Guarantor also guaranties the full, prompt and unconditional performance of
all
obligations and agreements of every kind owed or hereafter to be owed by the
Company to the Secured Party under the Transaction Documents. Every provision
for the benefit of the Secured Party contained in this Guaranty shall apply
to
the guaranty of performance given in this paragraph.
10. Assumption
of Liens and Obligations. To
the
extent that the Guarantor has received or shall hereafter receive distributions
or transfers from the Company of property or cash that are subject, at the
time
of such contribution, to liens and security interests in favor of the Secured
Party in accordance with the Note, the Security Agreement or the Pledge
Agreement, the Guarantor hereby expressly agrees that (i) it shall hold such
assets subject to such liens and security interests, and (ii) it shall be liable
for the payment of the Obligations secured thereby. The Guarantor’s obligations
under this Section
10
shall be
in addition to its obligations as set forth in other sections of this Guaranty
and not in substitution therefor or in lieu thereof.
11. Miscellaneous.
(a) The
terms
“Company” and “Guarantor” as used in this Guaranty shall include: (i) any
successor individual or individuals, association, partnership, limited liability
company or corporation to which all or substantially all of the business or
assets of the Company or the Guarantor shall have been transferred and (ii)
any
other association, partnership, limited liability company, corporation or entity
into or with which the Company or the Guarantor shall have been merged,
consolidated, reorganized, or absorbed.
(b) Without
limiting any other right of a the Secured Party, whenever the Secured Party
has
the right to declare any of the Obligations to be immediately due and payable
(whether or not it has been so declared), the Secured Party, at its sole
election without notice to the undersigned may appropriate and set off against
the Obligations:
(i) any
and
all indebtedness or other moneys due or to become due to the Guarantor by the
Secured Party; and
(ii) any
credits or other property belonging to the Guarantor (including all account
balances, whether provisional or final and whether or not collected or
available) at any time held by or coming into the possession of the Secured
Party, or any affiliate of the Secured Party, whether for deposit or
otherwise;
whether
or not the Obligations or the obligation to pay such moneys owed by the Secured
Party is then due, and the Secured Party shall be deemed to have exercised
such
right of set off immediately at the time of such election even though any charge
therefor is made or entered on the Secured Party’s records subsequent thereto.
The Secured Party agrees to notify the Guarantor in a reasonably practicable
time of any such set-off; however, failure to so notify the Guarantor shall
not
affect the validity of any set-off.
7
(c) The
Guarantor’s obligation hereunder is to pay the Obligations in full in cash when
due according to the Transaction Documents and the other agreements, documents
and instruments governing the Obligations to the extent provided herein, and
shall not be affected by any stay or extension of time for payment by the
Company resulting from any proceeding under the Bankruptcy Code or any similar
law.
(d) No
course
of dealing between the Company or the Guarantor and the Secured Party and no
act, delay or omission by the Secured Party in exercising any right or remedy
hereunder or with respect to any of the Obligations shall operate as a waiver
thereof or of any other right or remedy, and no single or partial exercise
thereof shall preclude any other or further exercise thereof or the exercise
of
any other right or remedy. The Secured Party may remedy any default by the
Company under any agreement with the Company or with respect to any of the
Obligations in any reasonable manner without waiving the default remedied and
without waiving any other prior or subsequent default by the Company. All rights
and remedies of the Secured Party hereunder are cumulative.
(e) This
Guaranty shall inure to the benefit of the Secured Party and each such entity’s
successors and assigns.
(f) The
Secured Party may assign its rights hereunder without the consent of the
Guarantor, in which event such assignee shall be deemed to be the Secured Party
hereunder with respect to such assigned rights.
(g) Captions
of the sections of this Guaranty are solely for the convenience of the parties
hereto, and are not an aid in the interpretation of this Guaranty and do not
constitute part of the agreement of the parties set forth herein.
(h) If
any
provision of this Guaranty is unenforceable in whole or in part for any reason,
the remaining provisions shall continue to be effective.
(i) All
questions concerning the construction, validity, enforcement and interpretation
of this Guaranty shall be governed by the internal laws of the State of New
York, without giving effect to any choice of law or conflict of law provision
or
rule (whether of the State of New York or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State
of
New York. The Guarantor hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of New York, borough of
Manhattan, for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and
hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction
of
any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is
improper. The Guarantor hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding
by
mailing a copy thereof to such party at the address for such notices to it
under
this Guaranty and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.
The parties acknowledge that the Secured Party has executed each of the
transaction documents to be executed by it in the State of New York.
8
(j) Notices.
All
notices, approvals, requests, demands and other communications hereunder shall
be delivered or made in the manner set forth in, and shall be effective in
accordance with the terms of, and , directed to the notice address set forth
in
the Security Agreement; provided, that any communication shall be effective
as
to the Guarantor if made or sent to the Company in accordance with the
foregoing.
12. WAIVERS.
(a) THE
GUARANTOR WAIVES THE BENEFIT OF ALL VALUATION, APPRAISAL AND EXEMPTION
LAWS.
(b) UPON
THE OCCURRENCE OF A DEFAULT OR EVENT OF DEFAULT, THE GUARANTOR HEREBY WAIVES
ALL
RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR TO THE EXERCISE BY THE SECURED
PARTY OF ITS RIGHTS TO REPOSSESS THE COLLATERAL WITHOUT JUDICIAL PROCESS OR
TO
REPLEVY, ATTACH OR LEVY UPON THE COLLATERAL WITHOUT PRIOR NOTICE OR HEARING.
EACH GUARANTOR ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY COUNSEL OF ITS CHOICE
WITH RESPECT TO THIS TRANSACTION AND THIS GUARANTY.
(c) THE
GUARANTOR WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF OR RELATED TO THIS GUARANTY, OR THE TRANSACTIONS
CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE
BROUGHT BY ANY PARTY TO THIS GUARANTY. THE GUARANTOR AGREES THAT ANY SUCH CLAIM
OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT
LIMITING THE FOREGOING, THE GUARANTOR FURTHER AGREES THAT ITS RIGHT TO A TRIAL
BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM
OR
OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY
OR
ENFORCEABILITY OF THIS GUARANTY OR ANY PROVISION HEREOF. THIS WAIVER SHALL
APPLY
TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
GUARANTY.
13. Payments
Free of Taxes.
(a) Definitions.
In this
Section
13:
(i) “Excluded
Taxes”
means,
with respect to the Secured Party, or any other recipient of any payment to
be
made by or on account of any obligations of the Guarantor under this Guaranty,
or under the Security Agreement or the Pledge Agreement, income or franchise
taxes imposed on (or measured by) its net income by any jurisdiction under
the
laws of which such recipient is organized or in which its principal office
is
located.
(ii) “Governmental
Authority”
means
the government of the United States of America or any other nation, or any
political subdivision thereof, whether state or local, or any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers
or
functions of or pertaining to government over the Company or any of its
Subsidiaries, or any of their respective properties, assets or
undertakings.
(iii) “Indemnified
Taxes”
means
Taxes other than Excluded Taxes.
9
(iv) “Taxes”
means
any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings imposed by any Governmental Authority.
(b) Any
and
all payments by or on account of any obligation of any of the Guarantor under
this Guaranty or the Security Agreement or the Pledge Agreement shall be made
without any set-off, counterclaim or deduction and free and clear of and without
deduction for any Indemnified Taxes; provided that if the Guarantor shall be
required to deduct any Indemnified Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section
14(b)),
the
Secured Party receives an amount equal to the sum it would have received had
no
such deductions been made, (ii) the Guarantor shall make such deductions and
(iii) the Guarantor shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.
(c) Indemnification
by the Guarantor.
The
Guarantor shall indemnify the the Secured Party within ten (10) days after
written demand therefor, for the full amount of any Indemnified Taxes paid
by
the Secured Party, on or with respect to any payment by or on account of any
obligation of the Guarantor under this Guaranty and the Security Agreement
and
the Pledge Agreement (including Indemnified Taxes or imposed or asserted on
or
attributable to amounts payable under this Section
14)
and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes were correctly or legally imposed
or asserted by the relevant Governmental Authority. The Secured Party shall
provide the Guarantor reasonably prompt notification of the assessment and
pay
the Indemnified Taxes to the Governmental Authority promptly following receipt
of indemnification therefor from the Guarantor. A certificate of the Secured
Party as to the amount of such payment or liability under this Section
13
shall be
delivered to the Guarantor and shall be conclusive absent manifest
error.
(d) Refunds.
If the
Secured Party receives a refund in respect of any Indemnified Taxes as to which
it has been indemnified by the Guarantor or with respect to which the Guarantor
has paid additional amounts pursuant to this Section
13,
it
shall within 30 days from the date of such receipt pay over such refund to
the
Guarantor (but only to the extent of additional amounts paid by the Guarantor
under this Section
13
with
respect to the Indemnified Taxes giving rise to the refund), net of all
reasonable out-of-pocket expenses of the Secured Party and without interest
(other than interest paid by the relevant Governmental Authority with respect
to
such refund); provided that the Guarantor, upon the request of the Secured
Party
, agrees to repay the amount paid over to the Guarantor (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to
the
Secured Party in the event the Secured Party is required to repay such refund
to
such Governmental Authority. This paragraph shall not be construed to require
the Secured Party to make available its tax returns (or any other information
relating to its taxes that it deems confidential) to the Guarantor or any other
person.
14. Counterparts;
Headings.
This
Guaranty may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to each other party;
provided that a facsimile, .pdf or similar electronically transmitted signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original
signature.
The
headings in this Guaranty are for convenience of reference only and shall not
alter or otherwise affect the meaning hereof.
[rest
of
page intentionally left blank; signature page follows]
10
IN
WITNESS WHEREOF, the Guarantor has executed this Guaranty as of the date first
written above.
GUARANTOR:
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||
OPTIONS
ACQUISITION SUB, INC.,
|
||
a
Delaware corporation
|
||
By:
|
||
Name:
Xxxxx Xxxxxxx
|
||
Title:
Chief Executive Officer
|
EXHIBIT
A
Form
of Joinder
Joinder
to Guaranty
The
undersigned, [__________] a [__________], hereby joins in the execution of
that
certain Guaranty dated as of _____ __, 2008 (the “Guaranty”),
by
Options Acquisition Sub, Inc., a Delaware corporation, and each other person
or
entity that becomes a Guarantor thereunder after such date and pursuant to
the
terms thereof, to and in favor of Customer Acquisition Network Holdings, Inc.,
as secured party. By executing this Joinder, the undersigned hereby agrees
that
it is a Guarantor thereunder with the same force and effect as if originally
named therein as a Guarantor. The undersigned agrees to be bound by all of
the
terms and provisions of the Guaranty and represents and warrants that the
representations and warranties set forth in Section
6
of the
Guaranty are, with respect to the undersigned, true and correct as of the date
hereof. Each reference to a Guarantor in the Guaranty shall be deemed to include
the undersigned.
In
Witness Whereof, the undersigned has executed this Joinder this ___ day of
_________, 200_.