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Exhibit 10.2
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001 - FTCI
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Fifth Third Bank
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Continuing Guaranty Agreement
THIS CONTINUING GUARANTY AGREEMENT
(the "Guaranty") made as of January 6, 2009 by and between
Streamline Health Solutions, Inc., a Delaware corporation located
at 10200 Alliance Road, Cincinnati, Hamilton County, Ohio 45242
(the "Guarantor") and Fifth Third Bank, an Ohio banking corporation
located at 38 Fountain Square Plaza, Cincinnati, Hamilton County,
Ohio 45263 for itself and as agent for any affiliate of Fifth Third
Bancorp ("Beneficiary"). W I T N E S S E T H:
WHEREAS, Beneficiary has agreed to
extend credit and financial accommodations to Streamline Health,
Inc., an Ohio corporation ("Borrower"), pursuant to the Term Note,
dated July 30, 2004, executed by Borrower and made payable to
the order of Beneficiary and the Revolving Note, dated
December 26, 2008, executed by Borrower and made payable to
the order of Beneficiary (collectively, the "Notes"), and all
agreements, instruments and documents executed or delivered in
connection with any of the foregoing or otherwise related thereto
(together with any amendments, modifications, or restatements
thereof, the "Loan Documents"); and
WHEREAS, Guarantor is affiliated with
Borrower and, as such, shall be benefited directly by the
transaction contemplated by the Loan Documents, and shall execute
this Guaranty in order to induce Beneficiary to enter into such
transaction. NOW, THEREFORE, in
consideration of the foregoing premises and other good and valuable
consideration, Guarantor hereby guarantees, promises and undertakes
as follows: 1. GUARANTY.
(a) Guarantor hereby unconditionally,
absolutely and irrevocably guarantees to Beneficiary the full and
prompt payment and performance when due (whether at maturity by
acceleration or otherwise) of any and all loans, advances,
indebtedness and each and every other obligation or liability of
Borrower owed to Beneficiary and any affiliate of Fifth Third
Bancorp, however created, of every kind and description, whether
now existing or hereafter arising and whether direct or indirect,
primary or as guarantor or surety, absolute or contingent, due or
to become due, liquidated or unliquidated, matured or unmatured,
participated in whole or in part, created by trust agreement,
lease, overdraft, agreement, or otherwise, whether or not secured
by additional collateral, whether originated with Beneficiary or
owed to others and acquired by Beneficiary by purchase, assignment
or otherwise, and including, without limitation, all loans,
advances, indebtedness and each and every other obligation or
liability arising under the Loan Documents, letters of credit now
or hereafter issued by Beneficiary or any affiliate of Fifth Third
Bancorp for the benefit of or at the request of Borrower, all
obligations to perform or forbear from performing acts, any and all
Rate Management Obligations (as defined in the Loan Documents), and
all agreements, instruments and documents evidencing, guarantying,
securing or otherwise executed in connection with any of the
foregoing, together with any amendments, modifications, and
restatements thereof, and all expenses and attorneys’ fees
incurred or other sums disbursed by Beneficiary or any affiliate of
Fifth Third Bancorp under this Guaranty or any other document,
instrument or agreement related to any of the foregoing
(collectively, the "Obligations").
(b) This Guaranty is a continuing
guaranty of payment, and not merely of collection, that shall
remain in full force and effect until expressly terminated in
writing by Beneficiary, notwithstanding the fact that no
Obligations may be outstanding from time to time. Such termination
by Beneficiary shall be applicable only to transactions having
their inception after the effective date thereof, and shall not
affect the enforceability of this Guaranty with regard to any
Obligations arising out of transactions having their inception
prior to such effective date, even if such Obligations shall have
been modified, renewed, compromised, extended, otherwise amended or
performed by Beneficiary subsequent to such termination. In the
absence of any termination of this Guaranty as provided above,
Guarantor agrees that Guarantor’s obligations hereunder shall
not be deemed discharged or satisfied until the Obligations are
fully paid and performed, and no such payments or performance with
regard to
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CONT-GUAR © Fifth Third Bancorp 2001M
(7/08)
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the Obligations is subject to any right on the part or any
person whomsoever, including but not limited to any trustee in
bankruptcy, to recover any of such payments. If any such payments
are so set aside or settled without litigation, all of which is
within Beneficiary’s discretion, Guarantor shall be liable
for the full amount Beneficiary is required to repay, plus costs,
interest, reasonable attorneys’ fees and any and all expenses
that Beneficiary paid or incurred in connection therewith. A
successor of Borrower, including Borrower in its capacity as debtor
in a bankruptcy reorganization case, shall not be considered to be
a different person than Borrower; and this Guaranty shall apply to
all Obligations incurred by such successor.
(c) Guarantor agrees that Guarantor
is directly and primarily liable to Beneficiary and that the
Obligations hereunder are independent of the Obligations of
Borrower, or of any other guarantor. The liability of Guarantor
hereunder shall survive discharge or compromise of any Obligation
of Borrower in bankruptcy or otherwise. Beneficiary shall not be
required to prosecute or seek to enforce any remedies against
Borrower or any other party liable to Beneficiary on account of the
Obligations, or to seek to enforce or resort to any remedies with
respect to any collateral granted to Beneficiary by Borrower or any
other party on account of the Obligations, as a condition to
payment or performance by Guarantor under this Guaranty.
(d) Beneficiary may, without notice
or demand and without affecting its rights hereunder, from time to
time: (i) renew, extend, accelerate or otherwise change the
amount of, the time for payment of, or other terms relating to, any
or all of the Obligations, or otherwise modify, amend or change the
terms of the Loan Documents or any other document or instrument
evidencing, securing or otherwise relating to the Obligations,
(ii) take and hold collateral for the payment of the
Obligations guaranteed hereby, and exchange, enforce, waive, and
release any such collateral, and apply such collateral and direct
the order or manner of sale thereof as Beneficiary in its
discretion may determine. Accordingly, Guarantor hereby waives
notice of any and all of the foregoing.
(e) Guarantor hereby waives all
defenses, counterclaims and off-sets of any kind or nature, whether
legal or equitable, that may arise: (i) directly or indirectly
from the present or future lack of validity, binding effect or
enforceability of the Loan Documents or any other document or
instrument evidencing, securing or otherwise relating to the
Obligations, (ii) from Beneficiary’s impairment of any
collateral, including the failure to record or perfect the
Beneficiary’s interest in the collateral, or (iii) by
reason of any claim or defense based upon an election of remedies
by Beneficiary in the event such election may, in any manner,
impair, affect, reduce, release, destroy or extinguish any right of
contribution or reimbursement of Guarantor, or any other rights of
the Guarantor to proceed against any other guarantor, or against
any other person or any collateral.
(f) Guarantor hereby waives all
presentments, demands for performance or payment, notices of
nonperformance, protests, notices of protest, notices of dishonor,
notices of default or nonpayment, notice of acceptance of this
Guaranty, and notices of the existence, creation, or incurring of
new or additional Obligations, and all other notices or formalities
to which Guarantor may be entitled, and Guarantor hereby waives all
suretyship defenses, including but not limited to all defenses set
forth in the Uniform Commercial Code, as revised from time to time
(the "UCC") to the full extent such a waiver is permitted thereby.
(g) Guarantor hereby irrevocably
waives all legal and equitable rights to recover from Borrower any
sums paid by the Guarantor under the terms of this Guaranty,
including without limitation all rights of subrogation and all
other rights that would result in Guarantor being deemed a creditor
of Borrower under the federal Bankruptcy Code or any other law, and
Guarantor hereby waives any right to assert in any manner against
Beneficiary any claim, defense, counterclaim and offset of any kind
or nature, whether legal or equitable, that Guarantor may now or at
any time hereafter have against Borrower or any other party liable
to Beneficiary. 2.
REPRESENTATIONS, WARRANTIES AND COVENANTS. Guarantor hereby
represents, warrants and covenants as follows:
(a) Guarantor is duly organized,
validly existing and in good standing under the laws of the state
of its incorporation, has the power and authority to carry on its
business and to enter into and perform this Guaranty and is
qualified and licensed to do business in each jurisdiction in which
such qualification or licensing is required.
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CONT-GUAR © Fifth Third Bancorp 2001M
(7/08)
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(b) The execution, delivery and
performance by Guarantor of this Guaranty have been duly authorized
by all necessary corporate action, and shall not violate any
provision of law or regulation applicable to Guarantor, or the
articles of incorporation, regulations or bylaws of Guarantor, or
any writ or decree of any court or governmental instrumentality, or
any instrument or agreement to which Guarantor is a party or by
which Guarantor may be bound; this Guaranty is a legal, valid and
binding obligation of said Guarantor, enforceable in accordance
with its terms; and there is no action or proceeding before any
court or governmental body agency now pending that may materially
adversely affect the condition (financial or otherwise) of
Guarantor. 3. AFFIRMATIVE
COVENANTS. Guarantor covenants with, and represents and
warrants to, Beneficiary that, from and after the execution date of
the Loan Documents until the Obligations are paid and satisfied in
full: (a) Financial
Statements. Guarantor shall maintain a standard and modern
system for accounting and shall furnish to Beneficiary:
(i) Within 30 days after the end
of each month, a copy of Guarantor’s internally prepared
consolidated financial statements for that month and for the year
to date in a form reasonably acceptable to Beneficiary, prepared
and certified as complete and correct, subject to changes resulting
from year-end adjustments, by the principal financial officer of
Guarantor; (ii) Within 45 days
after the end of each quarter, a copy of Guarantor’s
financial statements for that quarter and for the year to date and
certified as complete and correct, subject to changes resulting
from year-end adjustments, by the principal financial officer of
Guarantor; (iii) Within 120 days
after the end of each fiscal year, a copy of Guarantor’s
financial statements audited by a firm of independent certified
public accountants acceptable to Beneficiary (which acceptance
shall not be unreasonably withheld) and accompanied by an audit
opinion of such accountants without qualification;
(iv) With the statements submitted
above, a certificate signed by the Guarantor, (i) stating that
no Event of Default specified herein, nor any event which upon
notice or lapse of time, or both would constitute such an Event of
Default, has occurred, or if any such condition or event existed or
exists, specifying it and describing what action Guarantor has
taken or proposes to take with respect thereto, and
(ii) setting forth, in summary form, figures showing the
financial status of Guarantor in respect of the financial
restrictions contained herein; (v)
Immediately upon any officer of Guarantor obtaining knowledge of
any condition or event which constitutes or, after notice or lapse
of time or both, would constitute an Event of Default, a
certificate of such person specifying the nature and period of the
existence thereof, and what action Guarantor has taken or is taking
or proposes to take in respect thereof; All of the statements
referred to in (i), (i
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