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Exhibit 10.8
EXECUTION VERSION
GUARANTEE
This GUARANTEE (this "Guarantee"), dated as of August 1, 2007,
is by
GOAMERICA, INC., a Delaware corporation (the "Guarantor"), in
favor of MCI
COMMUNICATIONS SERVICES, INC., a Delaware corporation
("MCI").
W I T N E S S E T H :
WHEREAS, Acquisition 1 Corp., a Delaware corporation (the
"Subsidiary"),
has entered into an Asset Purchase Agreement with MCI of even
date herewith (as
the same now exists or may hereafter be amended, modified,
supplemented,
extended, renewed, restated or replaced, the "Agreement"),
whereby MCI has
agreed to sell to the Subsidiary, and the Subsidiary has agreed
to purchase from
MCI, certain assets described in the Agreement, all subject to
and in accordance
with the terms and conditions set forth in the Agreement, and
the other
agreements, documents and instruments referred to therein or at
any time
executed and/or delivered in connection therewith or related
thereto, including,
but not limited to, the Assignment and Assumption Agreement, the
Commercial
Services Agreement, the Facilities Use Agreement, the Transition
Services
Agreement, the IP License Agreement, the Transitional Use
Intellectual Property
License Agreement (all as defined in the Agreement), and this
Guarantee (all of
the foregoing, together with the Agreement, as the same now
exist or may
hereafter be amended, modified, supplemented, extended, renewed,
restated or
replaced, being collectively referred to herein as the
"Acquisition
Agreements"); and
WHEREAS, the Subsidiary is wholly owned by the Guarantor;
and
WHEREAS, substantial benefits will accrue to the Guarantor as a
result of
the consummation of the transactions contemplated by the
Acquisition Agreements;
and
WHEREAS, it is a condition to the obligations of MCI under the
Agreement
that Guarantor shall have executed and delivered this Guarantee
to MCI;
NOW, THEREFORE, in consideration of the premises and for other
good and
valuable consideration, the receipt and sufficiency of which are
hereby
acknowledged, the Guarantor hereby agrees in favor of MCI as
follows:
1. Guarantee.
(a) The Guarantor absolutely and unconditionally guarantees
and
agrees to be liable for the full and indefeasible payment and
performance when
due of all of the Obligations (as defined below) of the
Subsidiary under the
Acquisition Agreements (all of which are collectively referred
to herein as the
"Guaranteed Obligations"). As
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used herein, "Obligations" means all obligations and liabilities
of the
Subsidiary to MCI, whether direct or indirect, absolute or
contingent, due or to
become due, or now existing or hereafter incurred, which may
arise under, out of
or in connection with, the Acquisition Agreements.
(b) This Guarantee is a guaranty of payment and not of
collection.
The Guarantor agrees that MCI need not attempt to collect any
Guaranteed
Obligations from the Subsidiary, but may require the Guarantor
to make payment
of all of the Guaranteed Obligations when due or at any time
thereafter. MCI
shall apply any amounts received in respect of the Guaranteed
Obligations to any
of the Guaranteed Obligations, as if such payments were made by
Subsidiary.
2. Waivers and Consents.
(a) Notice of acceptance of this Guarantee and of the
presentment,
demand, protest, notice of protest, notice of nonpayment or
default and all
other notices to which the Subsidiary or the Guarantor may be
entitled are
hereby waived by the Guarantor. The Guarantor also waives notice
of and hereby
consents to (i) any amendment, modification, supplement,
extension, renewal or
restatement of the Agreement and any of the other Acquisition
Agreements that is
signed by an authorized officer of the Subsidiary, and the
guarantee made herein
shall apply to the Agreement and the other Acquisition
Agreements and the
Guaranteed Obligations as so amended, modified, supplemented,
renewed, restated
or extended, increased or decreased, (ii) the exercise of, or
refraining from
the exercise of, any rights against the Subsidiary, and (iii)
the settlement,
compromise or release of, or the waiver of any default with
respect to, any of
the Guaranteed Obligations. The Guarantor agrees that the
liability of the
Guarantor hereunder shall not be released or otherwise impaired
or affected by
any of the foregoing.
(b) No invalidity, irregularity or unenforceability of all or
any
part of the Guaranteed Obligations shall affect, impair or be a
defense to this
Guarantee, nor shall any other circumstance that might otherwise
constitute a
defense available to or legal or equitable discharge of the
Subsidiary in
respect of any of the Guaranteed Obligations, affect, impair or
be a defense to
this Guarantee. As to interest, fees and expenses, whether
arising before or
after the commencement of any case with respect to the
Subsidiary under the
United States Bankruptcy Code or any similar statute, the
Guarantor shall be
liable therefor, even if the Subsidiary's liability for such
amounts does not,
or ceases to, exist by operation of law. The Guarantor
acknowledges that MCI has
not made any representations to the Guarantor with respect to
the Subsidiary or
otherwise in connection with the execution and delivery by the
Guarantor of this
Guarantee and the Guarantor is not in any respect relying upon
MCI or any
statements by MCI in connection with this Guarantee.
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(c) Until the Guaranteed Obligations are paid and performed in
full,
the Guarantor hereby irrevocably and unconditionally waives and
relinquishes all
statutory, contractual, common law, equitable and all other
claims against the
Subsidiary for subrogation, reimbursement, exoneration,
contribution,
indemnification, setoff or other recourse in respect to sums
paid or payable to
MCI by the Guarantor hereunder, and the Guarantor hereby further
irrevocably and
unconditionally waives and relinquishes any and all other
benefits that the
Guarantor might otherwise directly or indirectly receive or be
entitled to
receive by reason of any amounts paid by or collected or due
from the Guarantor
or the Subsidiary upon the Guaranteed Obligations or realized
from their
property.
3. Subordination. All amounts now or hereafter owed to the
Guarantor by
the Subsidiary are hereby subordinated in right of payment to
the indefeasible
payment in full to MCI of the Guaranteed Obligations.
4. Termination. This Guarantee is continuing, unlimited,
absolute and
unconditional. All Guaranteed Obligations shall be conclusively
presumed to have
been created in reliance on this Guarantee. This Guarantee may
not be terminated
and shall continue so long as any of the Acquisition Agreements
shall be in
effect.
5. Reinstatement. If after receipt of any payment of any of the
Guaranteed
Obligations, MCI is required to surrender or return such payment
or proceeds to
any person for any reason, then the Guaranteed Obligations
intended to be
satisfied by such payment or proceeds sh
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