|
<PAGE>
EXHIBIT 10.14
SECOND AMENDED AND RESTATED LIMITED GUARANTY AGREEMENT
(Knowledge Universe Capital Co. LLC)
W I T N E S S E T H :
WHEREAS, Nextera Enterprises, Inc., a Delaware corporation
("Company") has
entered into an Second Amended and Restated Credit Agreement
dated December 31,
2002 (the "Second Amended and Restated Credit Agreement") with
Fleet National
Bank, a national banking association, as agent (the "Agent") for
itself as a
lender and the other lenders party thereto (the "Lenders"), and
other
instruments, agreements and documents (as the same may be
amended, modified,
changed, extended or renewed from time to time, the "Credit
Documents"),
providing, subject to the terms and conditions thereof, for
loans and other
credit accommodations to be made by the Agent and Lenders to the
Company;
WHEREAS, the undersigned guarantor (the "Guarantor") is an
affiliate of
Company and has entered into transactions with the Company, such
that the
Agent's and Lenders' agreement to provide loans and other credit
accommodations
to the Company will benefit the Guarantor;
WHEREAS, as a condition to Agent's and Lenders' entering into
the Second
Amended and Restated Credit Agreement, Agent and Lenders have
required that the
Guarantor guarantee the full and prompt payment and performance
of all
obligations of the Company to Agent and Lenders under the Credit
Documents,
subject to the limitations contained in Section 3 hereof;
NOW, THEREFORE, for good and valuable consideration, the receipt
and
sufficiency of which is hereby acknowledged, and in
consideration of any and all
loans, advances, and extensions of credit now or hereafter made
or extended by
Agent and Lenders to, for the account of or on behalf of the
Company, Guarantor
hereby agrees as follows. Capitalized terms not otherwise
defined herein shall
have the meanings given in the Credit Documents.
1. Guaranty. Subject to Section 3 hereof, Guarantor hereby
and
unconditionally and absolutely guarantees to Agent and Lender
the full and
prompt payment and performance by the Company of all Loans,
liabilities,
indebtedness and all other obligations which the Company now or
hereafter may
have to Agent and Lenders under any and all Credit Documents,
whether now
existing or hereafter arising, direct or indirect, absolute or
contingent,
matured or unmatured, liquidated or unliquidated, secured or
unsecured
including, without limitation, the full and prompt payment when
due of all
principal, interest, charges, fees, costs and expenses and all
other sums which
the Company may now or hereafter owe to Agent and Lenders
arising under the
Credit Documents (including, without limitation, any interest
which accrues
after the commencement of any case, proceeding or other action
relating to the
bankruptcy, insolvency or reorganization of Company, whether or
not allowed or
allowable as a claim in any such case, proceeding or other
action) and hereby
agrees to indemnify Agent and Lenders against any expenses they
may incur as a
result of the enforcement or attempted enforcement by, or on
behalf of, the
Agent and Lenders of any of their rights and remedies under the
Credit Documents
(collectively, the "Credit Obligations").
2. Guaranty Unconditional. Subject to Section 3 hereof, this
Guaranty is a
continuing, unconditional and absolute guaranty of payment and
performance. The
obligations of the Guarantor hereunder are primary, with no
recourse necessary
by Agent or Lenders against the Company or any collateral given
to secure the
Credit Obligations guaranteed hereby prior to proceeding against
the Guarantor
hereunder. If for any reason any installment or any other sum or
indebtedness
now or hereafter owing by the Company to Agent or Lenders shall
not be paid when
due, Guarantor will forthwith pay such sum to Agent and Lenders,
without regard
to any counterclaim, set-off, deduction or defense of any kind
which the Company
or Guarantor may have or assert, and without abatement,
suspension, deferment or
reduction on account of any occurrence whatsoever. The Guarantor
hereby waives
notice of and consent to all of the provisions of the Credit
Documents, to any
amendments thereof, to any actions taken thereunder, and to the
execution by the
Company of the above-referenced Credit
-1-
<PAGE>
Documents and of any other agreements, documents and instruments
now or
hereafter executed by the Company in connection therewith. The
Guarantor further
waives the following: notice of incurring of indebtedness and
obligations by the
Company; acceptance of this Guaranty by Agent and Lenders;
presentment and
demand for payment, protest, notice of protest and notice of
dishonor or
non-payment of any instrument evidencing the Credit Obligations;
any right to
require suit against the Company or any other party before
enforcing this
Guaranty; any right to have security applied before enforcing
this Guaranty; all
rights and claims of subrogation, reimbursement, indemnity,
contribution, and
like claims and rights as against the Company and each other
guarantor to the
extent such rights and claims arise out of or in connection with
the Credit
Obligations; all defenses which might constitute a legal or
equitable discharge
of a surety or guarantor; and all other notices and demands
otherwise required
by law which the Guarantor may lawfully waive. Guarantor agrees
that in the
event this Guaranty is enforced by suit or otherwise, Guarantor
will reimburse
Agent and Lenders upon demand for all expenses incurred in
connection therewith,
including without limitation, reasonable attorneys' fees and
expenses.
3. Limitations.
(a) Monetary Limitation. Notwithstanding anything to the
contrary
contained herein, (i) the liability of the Guarantor hereunder
shall be limited
to the lesser of: (a) the Credit Obligations; or (b) the sum of
(x) Two Million
Five Hundred Thousand Dollars ($2,500,000), plus (y) all costs
and expenses
(including reasonable attorneys' fees and disbursements)
incurred by the Agent
or Lenders in connection with the enforcement of their rights
and remedies under
this Guaranty; and
(b) Time Limitation. Notwithstanding anything to the contrary
contained
herein, Guarantor shall not be required to make any payment of
any amounts owed
by Guarantor hereunder, and no demand, draw, presentment or
other request for
payment shall be made under or against the Irrevocable Letter of
Credit issued
in the form of Exhibit 7.1.1 to the Second Amended and Restated
Credit Agreement
in the original face amount of $2,500,000 ("Guarantor L/C"),
until one or more
of the following has occurred:
(i) Agent has made demand upon Company (which demand shall
be
made in accordance with Section 18 of the Second Amended and
Restated Credit
Agreement, with a copy to Guarantor) to pay or perform
obligations under the
Second Amended and Restated Credit Agreement, upon or following
an Event of
Default (as defined in the Second Amended and Restated Credit
Agreement), and
sixty (60) days have elapsed; or
(ii) there has occurred a financial covenant Default or
Event
of Default, and sixty (60) days have elapsed since the earlier
of the delivery
or scheduled delivery to Lenders or Agent of the Company's
financial statements;
or
(iii) Company has failed to make any payment when due to
Lenders or Agent under the Second Amended and Restated Credit
Agreement or the
Credit Documents (as defined in the Second Amended and Restated
Credit
Agreement), and thirty (30) days have elapsed; or
(iv) a Bankruptcy Default (as defined in the Second Amended
and Restated Credit Agreement), and sixty (60) days have
elapsed; or
(v) January 1, 2005.
4. Subordination. Payment of all amounts now or hereafter owed
to
Guarantor by Company in respect of this Guaranty are hereby
subordinated in
right of payment to the indefeasible payment in full to Agent
and Lenders of the
Credit Obligations and all such amounts and any collateral
security therefor are
hereby assigned to Agent and Lenders as collateral security for
the Credit
Obligations. The Company shall not, directly or indirectly, by
payment,
distribution, set-off, recoupment or otherwise, pay or
distribute any cash,
securities or other property on account of any of such
indebtedness owed to
Guarantor by Company in respect of this Guaranty (except for
Distributions of
PIK Interest) until the indefeasible payment in full to Agent
and Lenders of the
Credit Obligations.
-2-
<PAGE>
5. Waiver. Guarantor's obligations hereunder shall not be
released,
discharged, terminated or impaired in any manner whatsoe
|