GUARANTY AGREEMENT dated as of August 23, 2006 by and among Certain Subsidiaries of BROADVIEW NETWORKS HOLDINGS, INC., as Guarantors, in favor of THE CIT GROUP/BUSINESS CREDIT, INC., as Administrative Agent
EXHIBIT 10.12
EXECUTION COPY
dated as of August 23, 2006
by and among
Certain Subsidiaries of BROADVIEW NETWORKS HOLDINGS, INC.,
as Guarantors,
in favor of
THE CIT GROUP/BUSINESS CREDIT, INC.,
as Administrative Agent
TABLE OF CONTENTS
| Page | |||||
ARTICLE I DEFINED TERMS |
2 | ||||
SECTION 1.1 Definitions |
2 | ||||
SECTION 1.2 Other Definitional Provisions |
2 | ||||
ARTICLE II GUARANTY |
2 | ||||
SECTION 2.1 Guaranty |
2 | ||||
SECTION 2.2 Bankruptcy Limitations on Guarantors |
3 | ||||
SECTION 2.3 Agreements for Contribution |
3 | ||||
SECTION 2.4 Nature of Guaranty |
5 | ||||
SECTION 2.5 Waivers |
6 | ||||
SECTION 2.6
Modification of Loan Documents, etc. |
7 | ||||
SECTION 2.7 Demand by the Administrative Agent |
8 | ||||
SECTION 2.8 Remedies |
8 | ||||
SECTION 2.9 Benefits of Guaranty |
8 | ||||
SECTION 2.10 Termination; Reinstatement |
9 | ||||
SECTION 2.11 Payments |
9 | ||||
ARTICLE III REPRESENTATIONS AND WARRANTIES |
10 | ||||
ARTICLE IV COVENANTS |
10 | ||||
ARTICLE V MISCELLANEOUS |
11 | ||||
SECTION 5.1 Notices |
11 | ||||
SECTION 5.2 Amendments, Waivers and Consents |
11 | ||||
SECTION 5.3
Expenses, Indemnification, Waiver of Consequential Damages, etc. |
11 | ||||
SECTION 5.4 Right of Set-off |
11 | ||||
SECTION 5.5 Governing Law; Jurisdiction; Venue; Service of Process |
12 | ||||
SECTION 5.6 Waiver of Jury Trial |
13 | ||||
SECTION 5.7 Injunctive Relief; Punitive Damages |
13 | ||||
SECTION 5.8 No Waiver by Course of Conduct, Cumulative Remedies |
13 | ||||
SECTION 5.9 Successors and Assigns |
14 | ||||
SECTION 5.10 Survival of Indemnities |
14 | ||||
SECTION 5.11 Titles and Captions |
14 | ||||
SECTION 5.12 Severability of Provisions |
14 | ||||
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TABLE OF CONTENTS
(continued)
(continued)
| Page | ||||
SECTION 5.13 Counterparts |
14 | |||
SECTION 5.14 Integration |
14 | |||
SECTION 5.15 Advice of Counsel, No Strict Construction |
15 | |||
SECTION 5.16 Acknowledgements |
15 | |||
SECTION 5.17 Releases |
15 | |||
SECTION 5.18 Additional Guarantors |
15 | |||
SECTION 5.19 All Powers Coupled With Interest |
15 | |||
-ii-
GUARANTY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to
time, this “Guaranty”), dated as of August 23, 2006, is made by certain Subsidiaries of
BROADVIEW NETWORKS HOLDINGS, INC., a Delaware corporation (“Holdings”) (such Subsidiaries,
collectively, the “Guarantors”, and, each, a “Guarantor”), in favor of THE CIT
GROUP/BUSINESS CREDIT, INC., as Administrative Agent (in such capacity, the “Administrative
Agent”) for the ratable benefit of itself and the financial institutions (including the Issuing
Lender and the Swingline Lender) (the “Lenders”) from time to time parties to the Credit
Agreement, dated as of the date hereof (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), by and among Holdings, Broadview Networks,
Inc., a Delaware corporation (“Broadview Networks”). Broadview Networks of Massachusetts,
Inc., a Delaware corporation (“Broadview MA”), Broadview Networks of Virginia, Inc., a
Virginia corporation (“Broadview VA”) and Bridgecom International, Inc., a Delaware
corporation (“Bridgecom International”) and, together with Holdings, Broadview Networks,
Broadview MA, Broadview VA and Bridgecom International, the “Borrowers”), the Lenders,
Jefferies & Company, Inc., as sole syndication agent (in such capacity, the “Syndication
Agent”), the Administrative Agent and any Person that was a Lender or an Affiliate of a Lender
at the time any such Person became a party to any Hedging Agreement (together with the
Administrative Agent and the Lenders, the “Secured Parties”).
STATEMENT OF PURPOSE
Pursuant to the terms of the Credit Agreement, the Lenders have agreed to make Extensions of
Credit to the Borrowers upon the terms and subject to the conditions set forth therein. All
Extensions of Credit to the Borrowers will inure, directly or indirectly, to the benefit of each of
the Guarantors.
It is a condition precedent to the obligation of the Lenders to make their respective
Extensions of Credit to the Borrowers under the Credit Agreement that the Guarantors shall have
executed and delivered this Guaranty to the Administrative Agent, for the ratable benefit of itself
and the Lenders and any Person that was a Lender or an Affiliate of a Lender at the time any such
Person became a party to any Hedging Agreement (together with the Administrative Agent and the
Lenders, the “Secured Parties”).
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, and to induce the Administrative Agent and the Lenders
to enter into the Credit Agreement and to induce the Lenders to make their respective Extensions of
Credit to the Borrowers thereunder, the Guarantors hereby agree with the Administrative Agent, for
the ratable benefit of itself and the other Secured Parties, as follows:
ARTICLE I
DEFINED TERMS
SECTION 1.1 Definitions. The following terms when used in this Guaranty shall have the
meanings assigned to them below:
“Administrative Agent” is defined in the preamble.
“Applicable Insolvency Laws” means all Applicable Laws governing bankruptcy,
reorganization, arrangement, adjustment of debts, relief of debtors, dissolution, insolvency,
fraudulent transfers or conveyances or other similar laws (including, 11 U.S.C. Sections 544, 547,
548 and 550 and other “avoidance” provisions of Title 11 of the United States Code, as amended or
supplemented).
“Borrowers” is defined in the preamble.
“Commitments” means, collectively, the Revolving Credit Commitment, the L/C
Commitment and the Swingline Commitment.
“Credit Agreement” is defined in the preamble.
“Guaranteed Obligations” has the meaning set forth in Section 2.1.
“Guarantor” and “Guarantors” are defined in the preamble.
“Guaranty” is defined in the preamble.
“Secured Parties” is defined in the third recital.
SECTION 1.2 Other Definitional Provisions. Capitalized terms used and not otherwise
defined in this Guaranty, including the preambles and recitals hereof, shall have the meanings
ascribed to them in the Credit Agreement. In the event of a conflict between capitalized terms
defined herein and in the Credit Agreement, the Credit Agreement shall control. The words “hereof,”
“herein”, “hereto” and “hereunder” and words of similar import when used in this Guaranty shall
refer to this Guaranty as a whole and not to any particular provision of this Guaranty, and Section
references are to this Guaranty unless otherwise specified. The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of such terms. Where the
context requires, terms relating to the Collateral or any part thereof, when used in relation to a
Guarantor, shall refer to such Guarantor’s Collateral or the relevant part thereof
ARTICLE II
GUARANTY
SECTION 2.1 Guaranty. Each Guarantor hereby, jointly and severally with the other
Guarantors, unconditionally guarantees to the Administrative Agent for the ratable benefit of
itself and the other Secured Parties, and their respective permitted successors, endorsees,
transferees and assigns, the full and punctual payment and performance of all Obligations of the
Borrowers, whether primary or secondary (whether by way of endorsement or otherwise), whether now
existing or hereafter arising, whether or not from time to time reduced or extinguished (except by
payment thereof) or hereafter increased or incurred, whether enforceable or unenforceable as
against the Borrowers, whether or not discharged, stayed or otherwise affected by any Applicable
Insolvency Law or proceeding thereunder, whether created directly
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with the Administrative Agent or any other Secured Party or acquired by the Administrative Agent or
any other Secured Party through assignment or endorsement or otherwise, whether matured or
unmatured, whether joint or several, as and when the same become due and payable (whether at
maturity or earlier, by reason of acceleration, mandatory repayment or otherwise), in accordance
with the terms of any such instruments evidencing any such obligations, including all renewals,
extensions or modifications thereof (all Obligations of the Borrowers, including all of the
foregoing being hereafter collectively referred to as the “Guaranteed Obligations”).
SECTION 2.2 Bankruptcy Limitations on Guarantors. Notwithstanding anything to the
contrary contained in Section 2.1, it is the intention of each Guarantor and the Secured
Parties that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment
of debts, relief of debtors, dissolution or insolvency or any similar proceeding with respect to
any Guarantor or its assets, the amount of such Guarantor’s obligations with respect to the
Guaranteed Obligations shall be equal to, but not in excess of, the maximum amount thereof not
subject to avoidance or recovery by operation of Applicable Insolvency Laws after giving effect to
Section 2.3(a). To that end, but only in the event and to the extent that after giving
effect to Section 2.3(a) such Guarantor’s obligations with respect to the Guaranteed
Obligations or any payment made pursuant to such Guaranteed Obligations would, but for the
operation of the first sentence of this Section 2.2, be subject to avoidance or recovery in
any such proceeding under Applicable Insolvency Laws after giving
effect to Section 2.3(a),
the amount of such Guarantor’s obligations with respect to the Guaranteed Obligations shall be
limited to the largest amount which, after giving effect thereto, would not, under Applicable
Insolvency Laws, render such Guarantor’s obligations with respect to the Guaranteed Obligations
unenforceable or avoidable or otherwise subject to recovery under Applicable Insolvency Laws. To
the extent any payment actually made pursuant to the Guaranteed Obligations exceeds the limitation
of the first sentence of this Section 2.2 and is otherwise subject to avoidance and
recovery in any such proceeding under Applicable Insolvency Laws, the amount subject to avoidance
shall in all events be limited to the amount by which such actual payment exceeds such limitation
and the Guaranteed Obligations as limited by the first sentence of this Section 2.2 shall
in all events remain in full force and effect and be fully enforceable against such Guarantor. The
first sentence of this Section 2.2 is intended solely to preserve the rights of the
Administrative Agent hereunder against such Guarantor in such proceeding to the maximum extent
permitted by Applicable Insolvency Laws and neither such Guarantor, any Borrower, any other
Guarantor nor any other Person shall have any right or claim under such sentence that would not
otherwise be available under Applicable Insolvency Laws in such proceeding.
SECTION 2.3 Agreements for Contribution. (a) The Guarantors hereby agree among
themselves that, if any Guarantor shall make an Excess Payment (as defined below), such Guarantor
shall have a right of contribution from each other Guarantor in an amount equal to such other
Guarantor’s Contribution Share (as defined below) of such Excess Payment. The payment obligations
of any Guarantor under this Section 2.3(a) shall be subordinate and subject in right of
payment to the Guaranteed Obligations until such time as the Guaranteed Obligations have been paid
in full, and none of the Guarantors shall exercise any right or remedy under this Section
2.3(a) against any other Guarantor until such Guaranteed Obligations have been paid in full.
For purposes of this Section 2.3(a):
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(i) “Excess Payment” shall mean the amount paid by any Guarantor in
excess of its Ratable Share (as defined below) of any Guaranteed Obligations;
(ii) “Ratable Share” shall mean, for any Guarantor in respect of any
payment of Guaranteed Obligations, the ratio (expressed as a percentage) as of the date of
such payment of Guaranteed Obligations of (A) the amount by which the aggregate present fair
salable value of all of its assets and properties exceeds the amount of all debts and
liabilities of such Guarantor (including probable contingent, subordinated, unmatured, and
unliquidated liabilities, but excluding the obligations of such Guarantor hereunder) to (B)
the amount by which the aggregate present fair salable value of all assets and other
properties of all of the Guarantors exceeds the amount of all of the debts and liabilities
(including probable contingent, subordinated, unmatured, and unliquidated liabilities, but
excluding the obligations of the Guarantors hereunder) of the
Guarantors; provided,
however, that, for purposes of calculating the Ratable Shares of the Guarantors in
respect of any payment of Guaranteed Obligations, any Guarantor that became a Guarantor
subsequent to the date of any such payment shall be deemed to have been a Guarantor on the
date of such payment and the financial information for such Guarantor as of the date such
Guarantor became a Guarantor shall be utilized for such Guarantor in connection with such
payment; and
(iii) “Contribution Share” shall mean, for any Guarantor in respect of any
Excess Payment made by any other Guarantor, the ratio (expressed as a percentage) as of the
date of such Excess Payment of (A) the amount by which the aggregate present fair salable
value of all of its assets and properties exceeds the amount of all debts and liabilities of
such Guarantor (including probable contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding the obligations of such Guarantor hereunder) to (B) the amount by
which the aggregate present fair salable value of all assets and other properties of the
Guarantors other than the maker of such Excess Payment exceeds the amount of all of the
debts and liabilities (including probable contingent, subordinated, unmatured, and
unliquidated liabilities, but excluding the obligations of the Guarantors) of the Guarantors
other than the maker of such Excess Payment; provided, however, that, for
purposes of calculating the Contribution Shares of the Guarantors in respect of any Excess
Payment, any Guarantor that became a Guarantor subsequent to the date of any such Excess
Payment shall be deemed to have been a Guarantor on the date of such Excess Payment and the
financial information for such Guarantor as of the date such Guarantor became a Guarantor
shall be utilized for such Guarantor in connection with such Excess Payment.
Each of the Guarantors recognizes and acknowledges that the rights to contribution arising
hereunder shall constitute an asset in favor of the party entitled to such contribution. This
Section 2.3 shall not be deemed to affect any right of subrogation, indemnity,
reimbursement or contribution that any Guarantor may have under Applicable Law against the
Borrowers in respect of any payment of Guaranteed Obligations.
(b) Postponement of Subrogation. Each Guarantor agrees that it will not exercise
any rights which it may acquire by way of rights of subrogation under any Loan Document to which it
is a party, nor shall any Guarantor seek or be entitled to seek any contribution or
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reimbursement from any Borrower or any other Guarantor, in respect of any payment made under any
Loan Document or otherwise, until following the payment in full of all Guaranteed Obligations and
all obligations of all of the Guarantors hereunder and the termination of the Commitments. Any
amount paid to any Guarantor on account of any such subrogation rights prior to the payment in full
of all Guaranteed Obligations and all obligations of all of the Guarantors hereunder and the
termination of the Commitments shall be held in trust for the benefit of the Secured Parties and
shall immediately be paid and turned over to the Administrative Agent for the benefit of the
Secured Parties in the exact form received by such Guarantor (duly endorsed in favor of the
Administrative Agent, if required), to be credited and applied against the Guaranteed Obligations,
whether matured or unmatured, in accordance with Section 2.11; provided,
however, that if any Guarantor has made payment to the Secured Parties in respect of all or
any part of the Guaranteed Obligations after payment in full of all Guaranteed Obligations and all
obligations of all of the Guarantors hereunder and the termination of the Commitments, then at such
Guarantor’s request, the Administrative Agent (on behalf of the Secured Parties) will, at the
expense of such Guarantor, execute and deliver to such Guarantor appropriate documents (without
recourse and without representation or warranty) necessary to evidence the transfer by subrogation
to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment. In
furtherance of the foregoing, at all times prior to the payment in full of all Guaranteed
Obligations and all obligations of all of the Guarantors hereunder and the termination of the
Commitments, each Guarantor shall refrain from taking any action or commencing any proceeding
against any Borrower or any other Guarantor (or its successors or assigns, whether in connection
with a bankruptcy proceeding or otherwise) to recover any amounts in respect of payments made under
this Guaranty to any Secured Party.
SECTION 2.4 Nature of Guaranty. (a) Each Guarantor agrees that this Guaranty is a
continuing, unconditional guaranty of payment and performance and not of collection, and that its
obligations under this Guaranty shall be primary, absolute and unconditional, irrespective of, and
unaffected by:
(i) the genuineness, validity, regularity, enforceability or any future
amendment of, or change in, the Credit Agreement or any other Loan Document or any other
agreement, document or instrument to which any Borrower or any other Guarantor or any of
their respective Subsidiaries or Affiliates is or may become a party;
(ii) the absence of any action to enforce this Guaranty, the Credit Agreement or
any other Loan Document or Hedging Agreement, or the waiver or consent by the Administrative
Agent or any other Secured Party with respect to any of the provisions of this Guaranty, the
Credit Agreement or any other Loan Document or Hedging Agreement;
(iii) the existence, value or condition of, or failure to perfect its Lien against,
any security for or other guaranty of the Guaranteed Obligations or any action, or the
absence of any action, by the Administrative Agent or any other Secured Party in respect of
such security or guaranty (including the release of any such security or guaranty);
(iv) any structural change in, restructuring of or other similar change of any
Borrower, any other Guarantor or any of their respective Subsidiaries; or
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(v) any other action or circumstances which might otherwise constitute a legal or
equitable discharge or defense of a surety or guarantor;
it being agreed by such Guarantor that, subject to the first sentence of Section 2.2, its
obligations under this Guaranty shall not be discharged except as provided under the terms of
Section 2.10 and Section 5.17 of this Guaranty.
(b) Each Guarantor hereby represents, warrants and agrees that the Guaranteed Obligations and
any other obligations hereunder are not, and agrees that its obligations under this Guaranty shall
not be, subject to any counterclaims, offsets or defenses of any kind (other than the defense of
payment) against the Administrative Agent, the Secured Parties or the Borrowers whether now
existing or which may arise in the future.
(c) Each Guarantor hereby agrees and acknowledges that the Guaranteed Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon this Guaranty, and all dealings between the Borrowers
and any of the Guarantors, on the one hand, and the Administrative Agent and any other Secured
Party, on the other hand, likewise shall be conclusively presumed to have been had or consummated
in reliance upon this Guaranty.
SECTION 2.5 Waivers. To the fullest extent permitted by law, each Guarantor expressly
waives the benefit of all provisions of Applicable Law which are or might be in conflict with this
Guaranty and all of the following rights and defenses (and agrees not to take advantage of or
assert any such right or defense):
(a) any rights it may now or in the future have under any statute, or at law or in
equity, or otherwise, to compel the Administrative Agent or any other Secured Party to
proceed in respect of the Guaranteed Obligations against any Borrower, any other Guarantor
or any other Person or against any security for or other guaranty of the payment and
performance of the Guaranteed Obligations before proceeding against, or as a condition to
proceeding against, such Guarantor;
(b) any defense based upon the failure of the Administrative Agent or any other Secured
Party to commence an action in respect of the Guaranteed Obligations against any Borrower,
any other Guarantor or any other Person or any security for the payment and performance of
the Guaranteed Obligations;
(c) any right to insist upon, plead or in any manner whatever claim or take the benefit
or advantage of, any appraisal, valuation, stay, extension, marshalling of assets or
redemption laws, or exemption, whether now or at any time hereafter in force, which may
delay, prevent or otherwise affect the performance by such Guarantor of its obligations
under, or the enforcement by the Administrative Agent or the other Secured Parties of this
Guaranty;
(d) any right of diligence, presentment, demand, protest and notice (except as
specifically required herein or in the Credit Agreement) of whatever kind or nature with
respect to any of the Guaranteed Obligations or this Guaranty or any requirement that any
Secured Party protect, secure, perfect or insure any Lien, or any property subject thereto,
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or exhaust any right or take any action against any Credit Party or any other Person
(including any other guarantor) or entity or any collateral securing the Guaranteed
Obligations, and waives, to the fullest extent permitted by Applicable Laws, the benefit of
all provisions of law which are or might be in conflict with the terms of this Guaranty; and
(e) any and all right to notice of the creation, renewal, extension or accrual of
any of the Guaranteed Obligations and notice of or proof of reliance by the Administrative
Agent or any other Secured Party upon, or acceptance of, this Guaranty.
To the fullest extent permitted by Applicable Law, each Guarantor agrees that any notice or
directive given at any time to the Administrative Agent or any other Secured Party which is
inconsistent with any of the foregoing waivers shall be null and void and may be ignored by the
Administrative Agent or such Secured Party, and, in addition, may not be pleaded or introduced as
evidence in any litigation relating to this Guaranty for the reason that such pleading or
introduction would be at variance with the written terms of this Guaranty, unless the
Administrative Agent and the Required Lenders have specifically agreed otherwise in writing. The
foregoing waivers are of the essence of the transaction contemplated by the Credit Agreement and
the other Loan Documents and, but for this Guaranty and such waivers, the Administrative Agent and
other Secured Parties would decline to enter into the Credit Agreement and the other Loan
Documents.
SECTION 2.6 Modification of Loan Documents, etc. Neither the Administrative Agent nor
any other Secured Party shall incur any liability to any Guarantor as a result of any of the
following, and, to the fullest extent permitted by law, none of the following shall impair or
release this Guaranty or any of the obligations of any Guarantor under this Guaranty:
(a) any change or extension of the manner, place or terms of payment of, or renewal or
alteration of all or any portion of, the Guaranteed Obligations;
(b) any action under or in respect of the Credit Agreement or the other Loan Documents
or Hedging Agreements in the exercise of any remedy, power or privilege contained therein or
available to any of them at law, in equity or otherwise, or waiver or refraining from
exercising any such remedies, powers or privileges;
(c) any amendment to, or modification of, in any manner whatsoever, the Loan
Documents or Hedging Agreements;
(d) any extension or waiver of the time for performance by any Guarantor, any other
guarantor, any Borrower or any other Person of, or compliance with, any term, covenant or
agreement on its part to be performed or observed under a Loan Document or Hedging
Agreement, or waiver of such performance or compliance or consent to a failure of, or
departure from, such performance or compliance;
(e) the taking and holding security or collateral for the payment of the Guaranteed
Obligations or the sale, exchange, release, disposal of, or other dealing with, any property
pledged, mortgaged or conveyed, or in which the Administrative Agent or the other Secured
Parties have been granted a Lien, to secure any Indebtedness of any
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Guarantor, any other guarantor or any Borrower to the Administrative Agent or the
Lenders;
(f) the release of anyone who may be liable in any manner for the payment of any
amounts owed by any Guarantor, any other guarantor or the Borrowers to the Administrative
Agent or any other Secured Party;
(g) any modification or termination of the terms of any intercreditor or subordination
agreement pursuant to which claims of other creditors of any Guarantor, any other guarantor
or any Borrower are subordinated to the claims of the Administrative Agent or any other
Secured Party; or
(h) any application of any sums by whomever paid or however realized to any
Guaranteed Obligations owing by any Guarantor, any other guarantor or any Borrower to the
Administrative Agent or any other Secured Party in such manner as the Administrative Agent
or any other Secured Party shall determine in its reasonable discretion.
SECTION 2.7 Demand by the Administrative Agent. In addition to the terms set forth in
this Article II and in no manner imposing any limitation on such terms, if all or any
portion of the then outstanding Guaranteed Obligations are declared to be immediately due and
payable, then the Guarantors shall, upon demand in writing therefor by the Administrative Agent to
the Guarantors, pay all or such portion of the outstanding Guaranteed Obligations due hereunder
then declared due and payable.
SECTION 2.8 Remedies. Upon the occurrence and during the continuance of any Event of
Default, the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, enforce against the Guarantors their obligations and liabilities
hereunder and exercise such other rights and remedies as may be available to the Administrative
Agent hereunder, under the Credit Agreement or the other Loan Documents or otherwise.
SECTION 2.9 Benefits of Guaranty. The provisions of this Guaranty are for the benefit
of the Administrative Agent and the other Secured Parties and their respective permitted
successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as
between any Borrower, the Administrative Agent and the other Secured Parties, the obligations of
such Borrower under the Loan Documents or Hedging Agreements. In the event all or any part of the
Guaranteed Obligations are transferred, endorsed or assigned by the Administrative Agent or any
other Secured Party to any Person or Persons as permitted under the Credit Agreement, any reference
to an “Administrative Agent”, “Lender” or “Secured Party” herein shall be deemed to refer equally
to such Person or Persons.
SECTION
2.10 Termination; Reinstatement. (a) Subject to clause (c) below, this
Guaranty shall remain in full force and effect until all the Guaranteed Obligations and all the
obligations of the Guarantors under this Guaranty shall have been paid in full and the Commitments
terminated.
(b) No payment made by any Borrower, any Guarantor, or any other Person received or
collected by the Administrative Agent or any other Secured Party from any Borrower, any
8
Guarantor, or any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of or in payment of the
Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability
of any Guarantor hereunder which shall, notwithstanding any such payment (other than any payment
made by such Guarantor in respect of the obligations of the Guarantors or any payment received or
collected from such Guarantor in respect of the obligations of the Guarantors), remain liable for
the obligations of the Guarantors up to the maximum liability of such Guarantor hereunder until the
Guaranteed Obligations and all the obligations of the Guarantors shall have been paid in full and
the Commitments terminated.
(c) Each Guarantor agrees that, if any payment made by any Borrower or any other Person
applied to the Guaranteed Obligations is at any time annulled, set aside, rescinded, invalidated,
declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or is
repaid in whole or in part pursuant to a good faith settlement of a pending or threatened claim, or
the proceeds of any Collateral are required to be refunded by the Administrative Agent or any other
Secured Party to any Borrower, its estate, trustee, receiver or any other Person, including any
Guarantor, under any Applicable Law or equitable cause, then, to the extent of such payment or
repayment, each Guarantor’s liability hereunder (and any Lien or Collateral securing such
liability) shall be and remain in full force and effect, as fully as if such payment had never been
made, and, if prior thereto, this Guaranty shall have been canceled or surrendered (and if any Lien
or Collateral securing such Guarantor’s liability hereunder shall have been released or terminated
by virtue of such cancellation or surrender), this Guaranty (and such Lien or Collateral) shall be
reinstated in full force and effect, and such prior cancellation or surrender shall not diminish,
release, discharge, impair or otherwise affect the obligations of such Guarantor in respect of the
amount of such payment (or any Lien or Collateral securing such obligation).
SECTION 2.11 Payments. Payments by the Guarantors shall be made to the Administrative
Agent, to be credited and applied to the Guaranteed Obligations in accordance with Section 10.4 of
the Credit Agreement, in immediately available Dollars to an account designated by the
Administrative Agent or at the Administrative Agent’s Office or at any other address that may be
specified in writing from time to time by the Administrative Agent.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
To induce the Administrative Agent and the Lenders to enter into the Loan Documents and to
make any Extensions of Credit, each Guarantor hereby represents and warrants as set forth below.
(a) Each representation and warranty contained in Article VI of the Credit Agreement
relating to such Guarantor is true and correct as if made by such Guarantor herein, each such
representation and warranty set forth in such Article (insofar as applicable as aforesaid) and all
other terms of the Credit Agreement to which reference is made therein, together with all related
definitions and ancillary provisions, being hereby incorporated into this Guaranty by this
reference as though specifically set forth in this Article.
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(b) Each Guarantor has knowledge of each other Credit Party’s financial condition and affairs
and that it has adequate means to obtain from the each such Credit Party on an ongoing basis
information relating thereto and to such Credit Party’s ability to pay and perform the Obligations,
and agrees to assume the responsibility for keeping, and to keep, so informed for so long as this
Guaranty is in effect. Each Guarantor acknowledges and agrees that the Secured Parties shall have
no obligation to investigate the financial condition or affairs of any Credit Party for the benefit
of such Guarantor nor to advise such Guarantor of any fact respecting, or any change in, the
financial condition or affairs of any other Credit Party that might become known to any Secured
Party at any time, whether or not such Secured Party knows or believes or has reason to know or
believe that any such fact or change is unknown to such Guarantor, or might (or does) materially
increase the risk of such Guarantor as guarantor, or might (or would) affect the willingness of
such Guarantor to continue as a guarantor of the Obligations.
(c) Each Guarantor acknowledges that it is in the best interests of such Guarantor to execute
this Guaranty inasmuch as such Guarantor will, as a result of being a Subsidiary of Holdings,
derive substantial direct and indirect benefits from the Extensions of Credit made from time to
time to the Borrowers by the Lenders pursuant to the Credit Agreement, and each Guarantor agrees
that the Secured Parties are relying on this representation in agreeing to make Extensions of
Credit to the Borrowers.
ARTICLE IV
COVENANTS
Each Guarantor covenants and agrees that, at all times prior to the payment in full of all
Guaranteed Obligations and all obligations of all of the Guarantors hereunder and the termination
of the Commitments, it will perform, comply with and be bound by all of the agreements, covenants
and obligations contained in the Credit Agreement which are applicable to such Guarantor or its
properties, each such agreement, covenant and obligation contained in the Credit Agreement and all
other terms of the Credit Agreement to which reference is made in this Article, together with all
related definitions and ancillary provisions, being hereby incorporated into this Guaranty by this
reference as though specifically set forth in this Article.
ARTICLE V
MISCELLANEOUS
SECTION 5.1 Notices. All notices and communications hereunder shall be given to the
addresses and otherwise made in accordance with Section 12.1 of the Credit Agreement;
provided that notices and communications to the Guarantors shall be directed to the
Guarantors, in care of Holdings at the address of the Holdings set forth in Section 12.1 of the
Credit Agreement.
SECTION 5.2 Amendments, Waivers and Consents. None of the terms, covenants, agreements
or conditions of this Guaranty may be amended, supplemented or otherwise modified, nor may they be
waived, nor may any consent be given, except in accordance with Section 12.2 of the Credit
Agreement.
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SECTION
5.3 Expenses, Indemnification, Waiver of Consequential Damages, etc. (a) Each
Guarantor, jointly and severally, shall pay all out-of-pocket expenses incurred by the
Administrative Agent and each other Secured Party pursuant to, and in accordance with, the
applicable provisions of Section 12.3 of the Credit Agreement.
(b) Each Guarantor, jointly and severally, shall indemnify each Indemnitee pursuant to, and in
accordance with, Section 12.3 of the Credit Agreement.
(c) Notwithstanding anything to the contrary contained in this Guaranty, to the fullest extent
permitted by Applicable Law, each Guarantor shall not assert, and hereby waives, any claim against
any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result
of, this Guaranty, any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Extension of Credit or the use of the proceeds
thereof.
(d) No Indemnitee referred to in this Section 5.3 shall be liable for any damages
arising from the use by unintended recipients of any information or other materials distributed by
it through telecommunications, electronic or other information transmission systems in connection
with this Guaranty or the other Loan Documents or the transactions contemplated hereby or thereby.
(e) Each Guarantor agrees to pay, and to save the Administrative Agent and the other Secured
Parties harmless from, any and all liabilities with respect to, or resulting from any such
Guarantor’s delay in paying, any and all stamp, excise, sales withholding or other taxes which may
be payable or determined to be payable in connection with this Guaranty.
(f) All amounts due under this Section 5.3 shall be payable promptly after demand
therefor.
SECTION
5.4 Right of Set-off. If an Event of Default shall have occurred and be
continuing and subject to Section 4.6 of the Credit Agreement, each Secured Party and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted
by Applicable Law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by such Secured Party or any such Affiliate to or for the credit or the
account of such Guarantor against any and all of the obligations of such Guarantor now or hereafter
existing under this Guaranty or any other Loan Document to such Secured Party, irrespective of
whether or not such Secured Party shall have made any demand under this Guaranty or any other Loan
Document and although such obligations of such Guarantor may be contingent or unmatured or are owed
to a branch or office of such Secured Party different from the branch or office holding such
deposit or obligated on such indebtedness. The rights of each Secured Party and its Affiliates
under this Section are in addition to other rights and remedies (including other rights of setoff)
that such Secured Party or its Affiliates may have. Each Secured Party agrees to notify such
Guarantor and the Administrative Agent promptly after any such setoff and application;
provided that the failure to give such notice shall not affect the validity of such setoff
and application.
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SECTION
5.5 Governing Law; Jurisdiction; Venue; Service of Process. (a) Governing
Law. This Guaranty shall be governed by, and construed in accordance with, the law of the State
of New York.
(b) Submission to Jurisdiction. Each Guarantor irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State
of New York sitting in New York County and of the United States District Court of the Southern
District, and any appellate court thereof, in any action or proceeding arising out of or relating
to this Guaranty or any other Loan Document, or for recognition or enforcement of any judgment, and
each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State court or, to the
fullest extent permitted by Applicable Law, in such Federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by
Applicable Law. Nothing in this Guaranty or in any other Loan Document shall affect any right that
the Administrative Agent or any other Secured Party may otherwise have to bring any action or
proceeding relating to this Guaranty or any other Loan Document against any Guarantor or its
properties in the courts of any jurisdiction.
(c) Waiver of Venue. Each Guarantor irrevocably and unconditionally waives, to the
fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the
laying of venue of any action or proceeding arising out of or relating to this Guaranty or any
other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of
an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d) Service of Process. Each party hereto irrevocably consents to service of process
in the manner provided for notices in Section 12.1 of the Credit Agreement. Nothing in this
Guaranty will affect the right of any party hereto to serve process in any other manner permitted
by Applicable Law.
(e) Appointment of Holdings as Agent for the Guarantors. Each Guarantor hereby
irrevocably appoints and authorizes Holdings to act as its agent for service of process and notices
required to be delivered under this Guaranty or under the other Loan Documents, it being understood
and agreed that receipt by Holdings of any summons, notice or other similar item shall be deemed
effective receipt by each Guarantor and its Subsidiaries.
SECTION 5.6 Waiver of Jury Trial. (a) EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR ANY OTHER
LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
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NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY AND THE OTHER LOAN
DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
SECTION
5.7 Injunctive Relief; Punitive Damages. (a) Each Guarantor recognizes that,
in the event such Guarantor fails to perform, observe or discharge any of its obligations or
liabilities under this Guaranty or any other Loan Document, any remedy of law may prove to be
inadequate relief to the Administrative Agent and the other Secured Parties. Therefore, each
Guarantor agrees that the Administrative Agent and the other Secured Parties, at the option of the
Administrative Agent and the other Secured Parties, shall be entitled to temporary and permanent
injunctive relief in any such case without the necessity of proving actual damages.
(b) The Administrative Agent, the other Secured Parties and each Guarantor hereby agree
that no such Person shall have a remedy of punitive or exemplary damages against any other party to
a Loan Document and each such Person hereby waives any right or claim to punitive or exemplary
damages that they may now have or may arise in the future in connection with any Dispute, whether
such Dispute is resolved through arbitration or judicially.
SECTION
5.8 No Waiver by Course of Conduct, Cumulative Remedies. Neither the
Administrative Agent nor any other Secured Party shall by any act, delay, indulgence, omission or
otherwise (except by a written instrument pursuant to
Section 5.2) be deemed to have waived
any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No delay or
failure to take action on the part of the Administrative Agent or any other Secured Party in
exercising any right, power or privilege hereunder shall operate as a waiver thereof. Nor shall any
single or partial exercise of any right, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. A waiver by the
Administrative Agent or any other Secured Party of any right or remedy hereunder on any one
occasion shall not be construed as a bar to any right or remedy which the Administrative Agent or
such other Secured Party would otherwise have on any future occasion. The rights and remedies
herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by Applicable Law.
SECTION 5.9 Successors and Assigns. The provisions of this Guaranty shall be binding
upon the successors and assigns of each and shall inure to the benefit of each Guarantor (and shall
bind all Persons who become bound as a Guarantor under this Guaranty), the Administrative Agent and
the other Secured Parties and their respective successors and assigns; except that no Guarantor may
assign or otherwise transfer any of its rights or obligations under this Guaranty without the prior
written consent of the Administrative Agent and the Lenders (in accordance with the Credit
Agreement).
SECTION 5.10 Survival of Indemnities. Notwithstanding any termination of this
Guaranty, the indemnities to which the Administrative Agent and the other Secured Parties are
entitled under the provisions of Section 5.3 and any other provision of this Guaranty and
the other Loan Documents shall continue in full force and effect and shall protect the
Administrative
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Agent and the other Secured Parties against events arising after such termination as well as
before.
SECTION 5.11 Titles and Captions. Titles and captions of Articles, Sections and
subsections in, and the table of contents of, this Guaranty are for convenience only, and neither
limit nor amplify the provisions of this Guaranty.
SECTION 5.12 Severability of Provisions. Any provision of this Guaranty or any other
Loan Document 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 the remainder of such provision or the remaining provisions hereof or thereof or
affecting the validity or enforceability of such provision in any other jurisdiction.
SECTION 5.13 Counterparts. This Guaranty may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and shall be binding upon all parties, their successors and assigns, and
all of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Guaranty or any document or instrument delivered in
connection herewith by facsimile or other electronic transmission shall be effective as delivery of
a manually executed counterpart of this Guaranty or such other document or instrument, as
applicable.
SECTION 5.14 Integration. This Guaranty, together with the other Loan Documents,
comprises the complete and integrated agreement of the parties on the subject matter hereof and
thereof and supersedes all prior agreements, written or oral, on such subject matter. In the event
of any conflict between the provisions of this Guaranty and those of any other Loan Document, the
provisions of the Credit Agreement shall control; provided that any provision of the any
other Loan Document which imposes additional burdens on any Guarantor or further restricts the
rights of any Guarantor or gives the Administrative Agent or the other Secured Parties additional
rights shall not be deemed to be in conflict or inconsistent with this Guaranty and shall be given
full force and effect.
SECTION
5.15 Advice of Counsel, No Strict Construction. Each of the parties represents
to each other party hereto that it has discussed this Guaranty with its counsel. The parties hereto
have participated jointly in the negotiation and drafting of this Guaranty. In the event an
ambiguity or question of intent or interpretation arises, this Guaranty shall be construed as if
drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this Guaranty.
SECTION 5.16 Acknowledgements. Each Guarantor hereby acknowledges that:
(a) it has been advised by counsel in the negotiation, execution and delivery of this
Guaranty and the other Loan Documents to which it is a party;
(b) it has received a copy of the Credit Agreement and the other Loan Documents
and has reviewed and understands same;
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(c) neither the Administrative Agent nor any other Secured Party has any fiduciary
relationship with or duty to any Guarantor arising out of or in connection with this
Guaranty or any of the other Loan Documents, and the relationship between the Guarantors, on
the one hand, and the Administrative Agent and the other Secured Parties, on the other hand,
in connection herewith or therewith is solely that of debtor and creditor; and
(d) no joint venture is created hereby or by the other Loan Documents or otherwise
exists by virtue of the transactions contemplated hereby among the Secured Parties or among
the Guarantors and the Secured Parties.
SECTION 5.17 Releases. At such time as the Guaranteed Obligations and the other
obligations of the Guarantors hereunder shall have been paid in full and the Commitments have been
terminated, this Guaranty and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and each Guarantor hereunder shall terminate, all without
delivery of any instrument or performance of any act by any party. In addition, at the request of
the Borrowers, and at the sole expense of the Borrowers, a Guarantor shall be released from its
obligations hereunder in the event that the Capital Stock of such Guarantor is disposed of in a
transaction permitted by the Credit Agreement to a Person that is not Holdings or any of its
Subsidiaries, or as otherwise provided in Section 11.9 of the Credit Agreement; provided,
that the Borrowers shall have delivered to the Administrative Agent, at least three Business Days
prior to the date of the proposed release, a written request for release identifying the relevant
Guarantor and a certification by the Borrowers stating that such transaction is in compliance with
the Loan Documents.
SECTION 5.18 Additional Guarantors. Each Subsidiary of the Borrowers that is required
to become a party to this Guaranty pursuant to Section 8.11 of the Credit Agreement shall become a
Guarantor for all purposes of this Guaranty upon execution and delivery by such Subsidiary of a
supplement in form and substance reasonably satisfactory to the Administrative Agent.
SECTION 5.19 All Powers Coupled With Interest. All powers of attorney and other
authorizations granted to the Secured Parties, the Administrative Agent and any Persons designated
by the Administrative Agent or any other Secured Party pursuant to any provisions of this Guaranty
or any of the other Loan Documents shall be deemed coupled with an interest and shall be
irrevocable so long as any of the Guaranteed Obligations remain unpaid or unsatisfied, any of the
Commitments remain in effect or the Credit Facility has not been terminated.
[Signature Pages to Follow]
15
IN WITNESS WHEREOF, each of the Guarantors has executed and delivered this Guaranty under
seal by its duly authorized officers, all as of the day and year first above written.
| BRIDGECOM HOLDINGS, INC. |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CFO | |||
| TRUCOM CORPORATION |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CFO | |||
| BRIDGECOM SOLUTIONS GROUP, INC. |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CFO | |||
| OPEN SUPPORT SYSTEMS LLC |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CFO | |||
| BROADVIEW NP ACQUISITION CORP. |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CFO | |||
| BV-BC ACQUISITION CORPORATION |
||||
| By: | /s/ Xxxxx Xxxxxx | |||
| Name: | Xxxxx Xxxxxx | |||
| Title: | CFO | |||
| THE CIT GROUP/BUSINESS CREDIT, INC., as Administrative Agent |
||||
| By: | /s/ Xxxxxx X. Xxxxx | |||
| Name: Xxxxxx X. Xxxxx | ||||
| Title: | Senior Vice President | |||
Guaranty
