Exhibit
10.41
Execution Version
GUARANTEE AND COLLATERAL
AGREEMENT
made by
each of the Grantors (as defined
herein)
in favor of
The Brown Family Trust, an Alaskan
trust,
as Secured Party
Dated as of March 31, 2009
TABLE OF CONTENTS
ARTICLE I Definitions
1
Section 1.01
Definitions
1
Section 1.02
Other Definitional Provisions;
References
6
ARTICLE II Guarantee
7
Section 2.01
Guarantee
7
Section 2.02
Payments
7
ARTICLE III Grant of Security
Interest
7
Section 3.01
Grant of Security Interest
7
Section 3.02
Transfer of Pledged Securities
9
Section 3.03
Grantors Remains Liable under Accounts,
Chattel Paper and Payment Intangibles 9
ARTICLE IV Acknowledgments, Waivers
and Consents
9
Section 4.01
Acknowledgments, Waivers and
Consents
9
Section 4.02
No Subrogation, Contribution or
Reimbursement
11
ARTICLE V Representations and
Warranties
12
Section 5.01
Representations in Loan
Agreements
12
Section 5.02
Benefit to the Grantors.
12
Section 5.03
Solvency
12
Section 5.04
Title; No Other Liens
12
Section 5.05
Perfected First Priority Liens
12
Section 5.06
Legal Name, Organizational Status, Chief
Executive Office
13
Section 5.07
Prior Names, Addresses, Locations of
Tangible Assets
13
Section 5.08
Pledged Securities
13
Section 5.09
Instruments and Chattel Paper
13
Section 5.10
Truth of Information; Accounts
13
Section 5.11
Governmental Obligors
14
Section 5.12
Intellectual Property
14
ARTICLE VI Covenants
14
Section 6.01
Covenants in Loan Agreements
14
Section 6.02
Maintenance of Perfected Security
Interest; Further Documentation
14
Section 6.03
Maintenance of Records
15
Section 6.04
Right of Inspection
15
Section 6.05
Further Identification of
Collateral
15
Section 6.06
Changes in Locations, Name,
etc.
16
Section 6.07
Compliance with Contractual
Obligations
16
Section 6.08
Limitations on Dispositions of
Collateral
16
Section 6.09
Pledged Securities
16
Section 6.10
Limitations on Modifications, Waivers,
Extensions of Agreements Giving
Rise to Accounts
17
Section 6.11
Analysis of Accounts, Etc
17
i
Section 6.12
Instruments and Tangible Chattel
Paper
18
Section 6.13
Maintenance of Equipment
18
Section 6.14
Intellectual Property
18
Section 6.15
Commercial Tort Claims
19
Section 6.16
Prohibition on Indebtedness
20
Section 6.17
Prohibition on Liens
20
Section 6.18
Compensation of Principals, Affiliates,
and Advisers.
20
Section 6.19
Operation of Business
20
Section 6.20
Financial Information
20
Section 6.21
Notice of Certain Events
21
ARTICLE VII Remedial
Provisions
21
Section 7.01
Pledged Securities
21
Section 7.02
Collections on Accounts, Etc
22
Section 7.03
Proceeds
22
Section 7.04
UCC and Other Remedies
23
Section 7.05
Private Sales of Pledged
Securities
24
Section 7.06
Waiver; Deficiency
24
Section 7.07
Non-Judicial Enforcement
24
ARTICLE VIII The Secured
Party
25
Section 8.01
Secured Party’s Appointment as
Attorney-in-Fact, Etc
25
Section 8.02
Duty of Secured Party
26
Section 8.03
Execution/Filing of Financing
Statements
27
ARTICLE IX Subordination of
Indebtedness
27
Section 9.01
Subordination of All Grantor
Claims
27
Section 9.02
Claims in Bankruptcy
27
Section 9.03
Payments Held in Trust
27
Section 9.04
Liens Subordinate
28
Section 9.05
Notation of Records
28
Section 9.06
Contribution
28
ARTICLE X Miscellaneous
28
Section 10.01
Waiver
28
Section 10.02
Notices
29
Section 10.03
Payment of Expenses, Indemnities,
Etc
29
Section 10.04
Amendments in Writing
29
Section 10.05
Successors and Assigns
29
Section 10.06
Invalidity
30
Section 10.07
Counterparts
30
Section 10.08
Survival
30
Section 10.09
Captions
30
Section 10.10
No Oral Agreements
30
Section 10.11
Governing Law; Submission to
Jurisdiction
30
Section 10.12
Acknowledgments
31
Section 10.13
Releases
32
ii
Section 10.14
Reinstatement
32
Section 10.15
Acceptance
33
SCHEDULES:
1.
Notice Addresses of Secured Party and
Grantors
2.
Description of Pledged
Securities
3.
Filings and Other Actions Required to
Perfect Security Interests
4.
Correct Legal Name, Location of
Jurisdiction of Organization, Organizational Identification Number,
Taxpayor Identification Number and Chief Executive
Office
5.
Prior Names, Prior Chief Executive
Office, Location of Tangible Assets
6.
Intellectual Property
7.
Interests of Other Persons in Property of
the Grantors
iii
This GUARANTEE AND COLLATERAL AGREEMENT,
dated as of March 31, 2009, is made by Voyant International
Corporation , a Nevada corporation (the “ Maker
”), and each of the other signatories hereto other than the
Secured Party (the Maker and each of the other signatories hereto
other than the Secured Party, being sometimes referred to herein
collectively as the “ Grantors ”), in favor of
The Brown Family Trust , an Alaskan trust, as Secured Party
(the “ Secured Party ”).
A.
The Secured Party has heretofore made
various loans to the Maker under the Loan Agreements (as such term
is hereinafter defined) and, pursuant to the terms of the Amendment
(as such term is hereinafter defined), the Secured Party has agreed
to extend the maturity date of a portion of the Loans (as such term
is hereinafter defined), subject to the execution and delivery by
the Maker and the other Grantors of this Guarantee and Collateral
Agreement.
B.
Pursuant to the terms of the Amendment,
each of the Grantors (other than Maker) has agreed to guaranty the
indebtedness and obligations of the Maker to the Secured Party, and
each of the Grantors has agreed to grant a lien and security
interest to the Secured Party in, to and covering the Collateral
(as such term is hereinafter defined) owned by such Grantor, as
security for the Obligations (as such term is hereinafter
defined).
NOW, THEREFORE, in consideration of the
premises and to induce the Secured Party to enter into the Loan
Agreement, the parties hereto agree as follows:
ARTICLE
I
Definitions
Section
1.01 Definitions
.
(a)
As used in this Guarantee and Collateral
Agreement, each term defined above shall have the meaning indicated
above. Unless otherwise defined herein, terms defined in the
Notes and used herein shall have the meanings given to them in the
Notes, and the following terms (as well as all terms which are not
capitalized herein, but which are defined in the UCC on the date
hereof) are used herein as so defined: Accounts, Chattel
Paper, Commercial Tort Claims, Deposit Accounts, Documents,
Electronic Chattel Paper, Equipment, Fixtures, General Intangibles,
Goods, Instruments, Inventory, Investment Property,
Letter-of-Credit Rights, Payment Intangibles, Proceeds, Supporting
Obligations, and Tangible Chattel Paper.
(b)
The following terms shall have the
following meanings:
“ $1,000,000 Note ”
shall mean that certain Secured Promissory Note, in the original
principal amount of $1,000,000, dated as of October 14, 2008,
executed and delivered by the Maker and payable to the order of the
Lender, pursuant to the terms of the $1,000,000 Loan Agreement, as
same may, from time to time, be amended, modified, supplemented,
renewed, extended, and/or restated.
“ $1,000,000 Loan Agreement
” shall mean that certain Loan Agreement, dated as of October
14, 2008, between the Maker and the Lender, as same may, from time
to time, be amended, modified, supplemented, renewed, extended,
and/or restated.
“ $2,000,000 Note ”
shall mean that certain Second Amended and Restated Secured
Promissory Note, in the original principal amount of $2,000,000,
dated as of February 29, 2008, executed and delivered by the Maker
and payable to the order of the Lender, pursuant to the terms of
the $2,000,000 Loan Agreement, as same may, from time to time, be
amended, modified, supplemented, renewed, extended, and/or
restated.
“ $2,000,000 Loan Agreement
” shall mean that certain Second Amended and Restated Loan
Agreement, dated as of February 29, 2008, between the Maker and the
Lender, as same may, from time to time, be amended, modified,
supplemented, renewed, extended, and/or restated.
“ $702,703 Note ”
shall mean that certain Amended and Restated Secured Promissory
Note, in the original principal amount of $702,703, dated as of
June 9, 2008, executed and delivered by the Maker and payable to
the order of the Lender, pursuant to the terms of the $702,703 Loan
Agreement, as same may, from time to time, be amended, modified,
supplemented, renewed, extended, and/or restated.
“ $702,703 Loan Agreement
” shall mean that certain Amended and Restated Loan
Agreement, dated as of June 9, 2008, between the Maker and the
Lender, as same may, from time to time, be amended, modified,
supplemented, renewed, extended, and/or restated.
“ Account Debtor ”
shall mean a Person (other than any Grantor) obligated on an
Account, Chattel Paper, or General Intangible.
“ Agreement ” shall
mean this Guarantee and Collateral Agreement, as the same may be
amended, supplemented or otherwise modified from time to
time.
“ Amendment ” shall
mean that certain Amendment to Second Amended and Restated Secured
Promissory Note and Second Amended and Restated Loan Agreement,
dated as of February 20, 2009, between the Maker and the Secured
Party, in connection with the $2,000,000 Note and the $2,000,000
Loan Agreement.
“ Business Day ” shall
mean a day other than a Saturday, Sunday, or other day on which
commercial banks are authorized or required by law to
close.
“ Collateral ”
shall have the meaning assigned such term in Section
3.01.
“ Copyrights ” shall
mean any and copyrights, rights and/or interests in copyrights,
works protectable by copyrights, copyright registrations and/or
copyright applications, including, without limitation, the
copyright registrations and applications (if any) listed on
Schedule 6 attached hereto and made a part hereof, and all renewals
of any of the foregoing, all income, royalties, damages and
payments now and hereafter due and/or payable under or with respect
to any of the foregoing, including, without limitation, damages and
payments for past, present and future infringements of any of the
foregoing and the right to sue for past, present and future
infringements of any of the foregoing.
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“ Grantor Claims
” shall mean all debts and obligations of the Maker or of any
other Grantor to any Grantor, whether such debts and obligations
now exist or are hereafter incurred or arise, or whether the
obligation of the debtor thereon be direct, contingent, primary,
secondary, several, joint and several, or otherwise, and
irrespective of whether such debts or obligations be evidenced by
note contract, open account, or otherwise, and irrespective of the
Person or Persons in whose favor such debts or obligations may, at
their inception, have been, or may hereafter be created, or the
manner in which they have been or may hereafter be acquired
by.
“ Guarantors ” shall
mean, collectively, RocketStream, Inc., a Nevada corporation, and
Zeros & Ones Technologies, Inc., a Delaware
corporation.
“ Indebtedness ”
means, as to any Person at a particular time, without duplication,
all of the following, whether or not included as indebtedness or
liabilities in accordance with GAAP:
(a)
all obligations of such Person for
borrowed money and all obligations of such Person evidenced by
bonds, debentures, notes, loan agreements or other similar
instruments;
(b)
the maximum amount of all direct or
contingent obligations of such Person arising under letters of
credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar
instruments;
(c)
all obligations of such Person to pay the
deferred purchase price of property or services (other than trade
accounts payable in the ordinary course of business and, in each
case, not past due for more than 90 days after the date on which
such trade account payable was created or which are being disputed
in good faith);
(d)
Indebtedness secured by a Lien on
property owned or being purchased by such Person (including
Indebtedness arising under conditional sales or other title
retention agreements), whether or not such Indebtedness shall have
been assumed by such Person or is limited in recourse;
(e)
all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in
respect of any equity interest in such Person or any other Person
or any warrant, right or option to acquire such equity interest,
valued, in the case of a redeemable preferred interest, at the
greater of its voluntary or involuntary liquidation preference
plus accrued and unpaid dividends; and
(f)
all guarantees of such Person in respect
of any of the foregoing.
For
all purposes hereof, the Indebtedness of any Person shall include
the Indebtedness of any partnership for which such Person is liable
either by agreement or by operation of applicable law, but only to
the extent of such liability.
“
Intellectual Property ” shall mean, collectively, all
Copyrights, all Trademarks, all Trademark Licenses, all Patents,
all Patent Licenses, and all rights, claims, and benefits
associated therewith or attributable thereto.
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“ Issuers ” shall
mean, collectively, each issuer of a Pledged Security.
“ Liens ” shall mean
any interest in property securing an obligation owed to, or a claim
by, a Person other than the owner of the property, whether such
interest is based on the common law, statute or contract, and
whether such obligation or claim is fixed or contingent, and
including but not limited to the lien or security interest arising
from a mortgage, encumbrance, pledge, security agreement,
conditional sale or trust receipt or a lease, consignment or
bailment for security purposes. The term “Lien”
shall include easements, restrictions, servitudes, permits,
conditions, covenants, exceptions or reservations. For the
purposes of this Agreement, each Grantor shall be deemed to be the
owner of any property which it has acquired or holds subject to a
conditional sale agreement, or leases under a financing lease or
other arrangement pursuant to which title to the property has been
retained by or vested in some other Person in a transaction
intended to create a financing. Ê
“ Loans ” shall mean,
collectively, the loans and extensions of credit by under, or as
evidenced by, the $1,000,000 Note, the $1,000,000 Loan Agreement,
the $2,000,000 Note, the $2,000,000 Loan Agreement, the $702,703
Note, and the $702,703 Loan Agreement.
“ Loan Agreements ”
shall mean, collectively, the $1,000,000 Loan Agreement, the
$2,000,000 Loan Agreement, and the $702,703 Loan Agreement, as same
may, from time to time, be amended, modified, supplemented,
renewed, extended, and/or restated.
“ Loan Documents ”
shall mean, collectively, the Loan Agreements, the Notes, this
Agreement, and any other or additional documents, instruments,
and/or agreements, whether now existing or hereafter arising,
evidencing, securing, or otherwise relating to any of the Notes
and/or the indebtedness evidenced thereby, as each of same may,
from time to time, be amended, supplemented, modified, and/or
restated.
“ Notes ” shall mean,
collectively, the $1,000,000 Note, the $2,000,000 Note, and the
$702,703 Note, as same may, from time to time, be amended,
modified, supplemented, renewed, extended, and/or restated,
together with any other or additional promissory notes that may,
from time to time, evidence the indebtedness, or any portion
thereof, currently evidenced by any of such notes.
“ Obligations ” shall
mean, collectively, all indebtedness, liabilities and obligations
of the Maker and/or each Guarantor to the Secured Party, of
whatsoever nature and howsoever evidenced, due or to become due,
now existing or hereafter arising, whether direct or indirect,
absolute or contingent, including, without limitation, any of same
which may arise under, out of, or in connection with any of the
Loan Agreements, any of the Notes, any of the other Loan
Agreements, and all other agreements, guarantees, notes and other
documents entered into by any party in connection therewith, and
any amendment, restatement or modification of any of the foregoing,
including, but not limited to, the full and punctual payment when
due of any unpaid principal under the Notes, interest (including,
without limitation, interest accruing at any post-default rate and
interest accruing after the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like
proceeding, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding), fees, reimbursement
obligations, guaranty obligations, penalties, indemnities, legal
and other fees, charges and
- 4 -
expenses, and amounts advanced by and
expenses incurred in order to preserve any collateral or security
interest, whether due after acceleration or otherwise.
“ Patents ” shall
mean: (i) all letters patent of the United States and all reissues
and extensions thereof, including, without limitation, any thereof
referred to in Schedule 6 hereto, and (ii) all applications for
letters patent of the United States and all divisions,
continuations and continuations-in-part thereof, including, without
limitation, any thereof referred to in Schedule 6 hereto.
“ Patent License ”
shall mean all agreements, whether written or oral, providing for
the grant by any Grantor of any right to manufacture, use or sell
any invention covered by a Patent, including, without limitation,
any thereof referred to in Schedule 6 hereto.
“ Permitted Liens ”
shall mean the (i) Liens in favor of the Secured Party, (ii) Liens
for taxes, assessments or other governmental charges or levies
which are not delinquent or which are being contested in good faith
by appropriate action and for which adequate reserves are
maintained by the applicable Grantor(s) in accordance with GAAP,
(iii) statutory landlord’s liens, operators’,
vendors’, carriers’, warehousemen’s,
repairmen’s, mechanics’, suppliers’,
workers’, materialmen’s, construction or other like
Liens arising by operation of law in the ordinary course of
business each of which is in respect of obligations that are not
delinquent or which are being contested in good faith by
appropriate action and for which adequate reserves are maintained
by the applicable Grantor(s) in accordance with GAAP, (iv) Liens in
favor of WAA, LLC, securing loans (in the aggregate principal
amount not to exceed $350,000) heretofore made by WAA, LLC to the
Maker and/or certain of the other Grantors, to the extent that such
Liens are contractually subordinated to the Liens in favor of the
Secured Party pursuant to a written subordination or intercreditor
agreement in form and substance acceptable to the Secured Party,
and (v) Liens in favor of Mueller Trading L.P. (as collateral agent
for itself, White Star LLC, Jason Lyons, and SRZ Trading, LLC),
securing loans (in the aggregate principal amount not to exceed
$300,000) heretofore made by such parties to the Maker and/or
certain of the other Grantors, to the extent that such Liens are
contractually subordinated to the Liens in favor of the Secured
Party pursuant to a written subordination or intercreditor
agreement in form and substance acceptable to the Secured Party.
“ Person ” shall mean
any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, governmental body
or authority, or other entity.
“ Pledged Securities
” shall mean: (i) all of the equity or ownership interests of
Grantors, and/or each or any of them, in, to, or with respect to
each Guarantor, whether now owned or hereafter acquired and whether
now existing or hereafter arising, including, without limitation,
the equity interests or ownership interests described or referred
to in Schedule 2; and (ii) (a) the certificates or instruments, if
any, representing such equity or ownership interests, (b) all
dividends (cash, stock or otherwise), cash, instruments, rights to
subscribe, purchase or sell and all other rights and property from
time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such equity or
ownership interests, (c) all replacements, additions to and
substitutions for any of the property referred to in this
definition, including, without limitation, claims against third
parties, (d) the proceeds, interest, profits and
- 5 -
other income of or on any of the property
referred to in this definition and (e) all books and records
relating to any of the property referred to in this
definition.
“ Securities Act ”
shall mean the Securities Act of 1933, as amended.
“ Trademarks ” shall
mean: (i) all trademarks, trade names, corporate names,
company names, business names, fictitious business names, trade
styles, service marks, logos and other source or business
identifiers, and the goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings
thereof, and all applications in connection therewith, whether in
the United States Patent and Trademark Office or in any similar
office or agency of the United States, any State thereof,
including, without limitation, any thereof referred to in Schedule
6 hereto, and (ii) all renewals thereof.
“ Trademark License ”
shall mean any agreement, written or oral, providing for the
grant by any Grantor of any right to use any Trademark, including,
without limitation, any thereof referred to in Schedule 6
hereto.
“ UCC ” shall mean the
Uniform Commercial Code as from time to time in effect in the State
of California; provided, however, that, in the event that, by
reason of mandatory provisions of law, any of the attachment,
perfection or priority of the security interests of the Secured
Party in any Collateral is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of California,
the term “UCC” shall mean the Uniform Commercial Code
as in effect in such other jurisdiction for purposes of the
provisions hereof relating to such attachment, perfection, the
effect thereof or priority and for purposes of definitions related
to such provisions.
ARTICLE I
Definitions
Section
1.02 Other Definitional
Provisions; References
. The meanings given to terms
defined herein shall be equally applicable to both the singular and
plural forms of such terms. The gender of all words shall
include the masculine, feminine, and neuter, as appropriate.
The words “herein,” “hereof,”
“hereunder” and other words of similar import when used
in this Agreement refer to this Agreement as a whole, and not to
any particular article, section or subsection. Any reference
herein to a Section shall be deemed to refer to the applicable
Section of this Agreement unless otherwise stated herein. Any
reference herein to an exhibit, schedule or annex shall be deemed
to refer to the applicable exhibit, schedule or annex attached
hereto unless otherwise stated herein. Where the context
requires, terms relating to the Collateral or any part thereof,
when used in relation to a Grantor, shall refer to such
Grantor’s Collateral or the relevant part thereof.
- 6 -
ARTICLE II
Guarantee
Section 2.01
Guarantee
.
(c)
Each of the Guarantors hereby, jointly
and severally, unconditionally and irrevocably, guarantees to the
Secured Party and its successors, endorsees, transferees and
assigns, the prompt and complete payment and performance by the
Maker and the Guarantors when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations. This is a
guarantee of payment and not collection and the liability of each
Guarantor is primary and not secondary.
(d)
Anything herein or in any other Loan
Document to the contrary notwithstanding, the maximum liability of
each Guarantor hereunder and under the other Loan Documents shall
in no event exceed the amount which can be guaranteed by such
Guarantor under applicable federal and state laws relating to the
insolvency of debtors.
(e)
Each Guarantor agrees that the
Obligations may at any time and from time to time exceed the amount
of the liability of such Guarantor hereunder without impairing the
guarantee contained in this Article II or affecting the rights and
remedies of the Secured Party hereunder.
(f)
Each Guarantor agrees that if the
maturity of any of the Obligations is accelerated by bankruptcy or
otherwise, such maturity shall also be deemed accelerated for the
purpose of this guarantee without demand or notice to such
Guarantor. The guarantee contained in this Article II shall
remain in full force and effect until all the Obligations are
indefeasibly paid in full in cash.
(g)
No payment made by the Maker, any of the
Guarantors, any other guarantor or any other Person or received or
collected by the Secured Party from the Maker, any of the
Guarantors, any other 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 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 or
any payment received or collected from such Guarantor in respect of
the Obligations), remain liable for the Obligations up to the
maximum liability of such Guarantor hereunder until all the
Obligations are indefeasibly paid in full in cash.
Section
2.02 Payments
.
Each Guarantor hereby agrees
and guarantees that payments hereunder will be paid to the Secured
Party without set-off or counterclaim in Dollars at the location
specified in the Notes for the making of payments to Secured Party
under the applicable Note.
ARTICLE III
Grant of
Security Interest
Section 3.01
Grant of Security
Interest
. Each Grantor hereby pledges, assigns and transfers to
the Secured Party, and grants to the Secured Party a security
interest in, all of the following property now owned or at any time
hereafter acquired by such Grantor or in which such
Grantor
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now has or at any time in the future may
acquire any right, title or interest and whether now existing or
hereafter coming into existence (collectively, the
“Collateral”), as collateral security for the prompt
and complete payment and performance when due (whether at the
stated maturity, by acceleration or otherwise) of the
Obligations:
(1)
all Accounts of the Maker and/or each
Guarantor;
(2)
all Chattel Paper (whether Tangible
Chattel Paper or Electronic Chattel Paper) of the Maker and/or each
Guarantor;
(3)
all Commercial Tort Claims of the Maker
and/or each Guarantor;
(4)
all Deposit Accounts other than payroll,
withholding tax and other fiduciary Deposit Accounts, of the Maker
and/or each Guarantor;
(5)
all Documents of the Maker and/or each
Guarantor;
(6)
all General Intangibles of the Maker
and/or each Guarantor (including, without limitation, all domain
names and similar property described or referred to in Schedule 6
hereto);
(7)
all Goods (including, without limitation,
all Inventory and all Equipment, but excluding all Fixtures) of the
Maker and/or each Guarantor;
(8)
all Instruments of the Maker and/or each
Guarantor;
(9)
all Intellectual Property of the Maker
and/or each Guarantor;
(10)
all Investment Property of the Maker
and/or each Guarantor;
(11)
all Letter-of-Credit Rights (whether or
not the letter of credit is evidenced by a writing) of the Maker
and/or each Guarantor;
(12)
all Patent Licenses of the Maker and/or
each Guarantor;
(13)
all Supporting Obligations of the Maker
and/or each Guarantor;
(14)
all of the Pledged Securities;
(15)
any and all other or additional property,
rights, interests, and/or assets, of any type, kind, or nature,
whether now owned or hereafter acquired and wherever located, of
the Maker and/or each Guarantor;
(16)
all books and records pertaining to the
Collateral; and
(17)
to the extent not otherwise included, all
Proceeds and products of any and all of the foregoing and all
collateral security, guarantees and other Supporting Obligations
given with respect to any of the foregoing.
- 8 -
Section 3.02
Transfer of Pledged
Securities
. All certificates and instruments
representing or evidencing the Pledged Securities shall be
delivered to and held pursuant hereto by the Secured Party or a
Person designated by the Secured Party and, in the case of an
instrument or certificate in registered form, shall be duly
indorsed to the Secured Party or in blank by an effective
indorsement (whether on the certificate or instrument or on a
separate writing), and accompanied by any required transfer tax
stamps to effect the pledge of the Pledged Securities to the
Secured Party. Notwithstanding the preceding sentence, all
Pledged Securities must be delivered or transferred in such manner,
and each Grantor shall take all such further action as may be
requested by the Secured Party, as to permit the Secured Party to
be a “protected purchaser” to the extent of its
security interest as provided in Section 8-303 of the UCC (if the
Secured Party otherwise qualifies as a protected
purchaser).
Section 3.03
Grantors Remains Liable under
Accounts, Chattel Paper and Payment Intangibles
. Anything herein to the contrary
notwithstanding, each Grantor shall remain liable under each of the
Accounts, Chattel Paper and Payment Intangibles to observe and
perform all the conditions and obligations to be observed and
performed by it thereunder, all in accordance with the terms of any
agreement giving rise to each such Account, Chattel Paper or
Payment Intangible. The Secured Party shall not have any
obligation or liability under any Account, Chattel Paper or Payment
Intangible (or any agreement giving rise thereto) by reason of or
arising out of this Agreement or the receipt by the Secured Party
of any payment relating to such Account, Chattel Paper or Payment
Intangible, pursuant hereto, nor shall the Secured Party be
obligated in any manner to perform any of the obligations of any
Grantor under or pursuant to any Account, Chattel Paper or Payment
Intangible (or any agreement giving rise thereto), to make any
payment, to make any inquiry as to the nature or the sufficiency of
any payment received by it or as to the sufficiency of any
performance by any party under any Account, Chattel Paper or
Payment Intangible (or any agreement giving rise thereto), to
present or file any claim, to take any action to enforce any
performance or to collect the payment of any amounts which may have
been assigned to it or to which it may be entitled at any time or
times.
ARTICLE IV
Acknowledgments, Waivers and Consents
Section
4.01 Acknowledgments,
Waivers and Consents
.
(h)
Each Grantor acknowledges and agrees that
the obligations undertaken by it under this Agreement involve the
guarantee and the provision of collateral security for the
obligations of Persons other than such Grantor and that such
Grantor’s guarantee and provision of collateral security for
the Obligations are absolute, irrevocable and unconditional under
any and all circumstances. In full recognition and
furtherance of the foregoing, each Grantor understands and agrees,
to the fullest extent permitted under applicable law and except as
may otherwise be expressly and specifically provided in the Loan
Documents, that each Grantor shall remain obligated hereunder
(including, without limitation, with respect to the guarantee made
by such Grantor hereby and the collateral security provided by such
Grantor herein) and the enforceability and effectiveness of this
Agreement and the liability of such Grantor, and the rights,
remedies, powers and privileges of the Secured Party under this
Agreement and the other Loan Documents shall not be affected,
limited, reduced, discharged or terminated in any way:
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(i)
notwithstanding that, without any
reservation of rights against any Grantor and without notice to or
further assent by any Grantor, (A) any demand for payment of any of
the Obligations made by the Secured Party may be rescinded by the
Secured Party and any of the Obligations continued; (B) the
Obligations, the liability of any other Person upon or for any part
thereof or any collateral security or guarantee therefor or right
of offset with respect thereto, may, from time to time, in whole or
in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by, or any indulgence
or forbearance in respect thereof granted by, the Secured Party;
(C) the Notes and any other documents executed and delivered in
connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Secured Party and the Maker
may deem advisable from time to time; (D) the Maker, any Grantor or
any other Person may from time to time accept or enter into new or
additional agreements, security documents, guarantees or other
instruments in addition to, in exchange for or relative to, the
Notes, all or any part of the Obligations, or any Collateral now or
in the future serving as security for the Obligations; (E) any
collateral security, guarantee or right of offset at any time held
by the Secured Party for the payment of the Obligations may be
sold, exchanged, waived, surrendered or released; and (F) any other
event shall occur which constitutes a defense or release of
sureties generally; and
(ii)
without regard to, and each Grantor
hereby expressly waives to the fullest extent permitted by law, any
defense now or in the future arising by reason of, (A) the
illegality, invalidity or unenforceability of any Loan Agreement,
any Note, any of the Obligations or any other collateral security
therefor or guarantee or right of offset with respect thereto at
any time or from time to time held by the Secured Party, (B) any
defense, set-off or counterclaim (other than a defense of payment
or performance) which may at any time be available to or be
asserted by any Grantor or any other Person against the Secured
Party, (C) the insolvency, bankruptcy arrangement, reorganization,
adjustment, composition, liquidation, disability, dissolution or
lack of power of any Grantor or any other Person at any time liable
for the payment of all or part of the Obligations or the failure of
the Secured Party to file or enforce a claim in bankruptcy or other
proceeding with respect to any Person; or any sale, lease or
transfer of any or all of the assets of any Grantor, or any changes
in the shareholders of any Grantor; (D) the fact that any
Collateral or Lien contemplated or intended to be given, created or
granted as security for the repayment of the Obligations shall not
be properly perfected or created, or shall prove to be
unenforceable or subordinate to any other Lien, it being recognized
and agreed by each of the Grantors that it is not entering into
this Agreement in reliance on, or in contemplation of the benefits
of, the validity, enforceability, collectability or value of any of
the Collateral for the Obligations; (E) any failure of the Secured
Party to marshal assets in favor of any Grantor or any other
Person, to exhaust any collateral for all or any part of the
Obligations, to pursue or exhaust any right, remedy, power or
privilege it may have against any Grantor or any other Person or to
take any action whatsoever to mitigate or reduce any
Grantor’s liability under this Agreement, any of the Notes,
or any other document, instrument, or agreement relating thereto;
(F) any law which provides that the obligation of a surety or
guarantor must neither be larger in amount nor in other respects
more burdensome than that of the principal or which reduces a
surety’s or guarantor’s obligation in proportion to the
principal obligation; (G) the possibility that the Obligations may
at any time and from time to time exceed the aggregate liability of
such Grantor under this Agreement; or (H) any other circumstance,
act or omission whatsoever (with or without notice to or knowledge
of any Grantor), which constitutes, or might be construed to
constitute, an equitable or legal discharge or defense of the Maker
for the Obligations, or of such Grantor under the guarantee
contained in Article II or with respect to the collateral security
provided by such Grantor herein, or which might be available to a
surety or guarantor, in bankruptcy or in any other
instance.
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(i)
Each Grantor hereby waives to the extent
permitted by law: (i) except as expressly provided otherwise
in any Loan Document, all notices to such Grantor, or to any other
Person, including but not limited to, notices of the acceptance of
this Agreement, the guarantee contained in Article II or the
provision of collateral security provided herein, or the creation,
renewal, extension, modification, accrual of any Obligations, or
notice of or proof of reliance by the Secured Party upon the
guarantee contained in Article II or upon the collateral security
provided herein, or of default in the payment or performance of any
of the Obligations owed to the Secured Party and enforcement of any
right or remedy with respect thereto; or notice of any other
matters relating thereto; the 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
the guarantee contained in Article II and the collateral security
provided herein and no notice of creation of the Obligations or any
extension of credit already or hereafter contracted by or extended
to the Maker need be given to any Grantor; and all dealings between
the Maker and any of the Grantors, on the one hand, and the Secured
Party, on the other hand, likewise shall be conclusively presumed
to have been had or consummated in reliance upon the guarantee
contained in Article II and on the collateral security provided
herein; (ii) diligence and demand of payment, presentment, protest,
dishonor and notice of dishonor; (iii) any statute of limitations
affecting any Grantor’s liability hereunder or the
enforcement thereof; (iv) all rights of revocation with respect to
the Obligations, the guarantee contained in Article II and the
provision of collateral security herein; and (v) all principles or
provisions of law which conflict with the terms of this Agreement
and which can, as a matter of law, be waived.
(j)
When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against any
Grantor, the Secured Party may, but shall be under no obligation
to, join or make a similar demand on or otherwise pursue or exhaust
such rights and remedies as it may have against the Maker, any
other Grantor or any other Person or against any collateral
security or guarantee for the Obligations or any right of offset
with respect thereto, and any failure by the Secured Party to make
any such demand, to pursue such other rights or remedies or to
collect any payments from the Maker, any other Grantor or any other
Person or to realize upon any such collateral security or guarantee
or to exercise any such right of offset, or any release of the
Maker, any Grantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any
Grantor of any obligation or liability hereunder, and shall not
impair or affect the rights and remedies, whether express, implied
or available as a matter of law, of the Secured Party against any
Grantor. For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings.
The Secured Party shall not have any obligation to protect,
secure, perfect or insure any Lien at any time held by it as
security for the Obligations or for the guarantee contained in
Article II or any property subject thereto.
Section 4.02
No Subrogation, Contribution or
Reimbursement
. Notwithstanding any payment made
by any Grantor hereunder or any set-off or application of funds of
any Grantor by the Secured Party, no Grantor shall be entitled to
be subrogated to any of the rights of the Secured Party against the
Maker or any other Grantor or any collateral security or guarantee
or right of offset held by the Secured Party for the payment of the
Obligations, nor shall any Grantor seek or be entitled to seek any
indemnity, exoneration, participation, contribution or
reimbursement from the Maker or any other Grantor in respect of
payments made by such Grantor hereunder, and each Grantor hereby
expressly waives, releases, and agrees not to exercise any such
rights of subrogation, reimbursement, indemnity and contribution.
Each Grantor further agrees that to the
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extent that such waiver and release set
forth herein is found by a court of competent jurisdiction to be
void or voidable for any reason, any rights of subrogation,
reimbursement, indemnity and contribution such Grantor may have
against the Maker, any other Grantor or against any collateral or
security or guarantee or right of offset held by the Secured Party
shall be junior and subordinate to any rights the Secured Party may
have against the Maker and such Grantor and to all right, title and
interest the Secured Party may have in any collateral or security
or guarantee or right of offset. The Secured Party may use,
sell or dispose of any item of Collateral or security pursuant to
the terms hereof as it sees fit without regard to any subrogation
rights any Grantor may have, and upon any disposition or sale, any
rights of subrogation any Grantor may have shall
terminate.
ARTICLE V
Representations and Warranties
To induce the Secured Party to enter into
the Amendment, each Grantor hereby represents and warrants to the
Secured Party that:
Section 5.01
Representations in Loan
Agreements
. Each of the representations and
warranties set forth in Article 4 of each of the Loan Agreements is
hereby incorporated into this Agreement, with the substitution of
the name of each Grantor in lieu of the name of the
“Company”, and each such representation and warranty,
as so incorporated herein, is true and correct in all material
respects as applied to each Grantor and its respective properties
and business(es) as though the name of such Grantor was used
therein instead of the “Company”.
Section
5.02 Benefit to the
Grantors .
Each Grantor is a direct or indirect
subsidiary of the Maker and its guaranty and surety obligations
pursuant to this Agreement reasonably may be expected to benefit,
directly or indirectly, it; and it has determined that this
Agreement is necessary and convenient to the conduct, promotion and
attainment of the business(es) of such Grantor and the
Maker.
Section
5.03 Solvency
. As of the date hereof, and after
giving effect to this Agreement, such Grantor is
Solvent.
Section
5.04 Title; No Other
Liens
. Except for Permitted Liens, such
Grantor is the legal and beneficial owner of its respective items
of the Collateral free and clear of any and all Liens. As of
the date hereof, no financing statement or other public notice with
respect to all or any part of the Collateral is on file or of
record in any public office, except such as have been filed in
favor of the Secured Party pursuant to this Agreement. Except as
set forth on Schedule 7 hereto, the Grantors, collectively, are the
legal and beneficial owners of, and hold absolute title, free and
clear of any and all Liens, to, all property, rights, and assets
that are necessary for the continued conduct and operation of their
respective businesses, as currently conducted by such Grantors, and
no Person other than the Grantors owns or holds any right, title,
claim, interest, or Lien in, to, or with respect to any of such
property, rights, or assets.
Section 5.05
Perfected First Priority
Liens
. The security interests granted
pursuant to this Agreement (a) upon completion of the filings and
other actions specified on Schedule 3 (which, in the case of all
filings and other documents referred to on said Schedule, have been
delivered to
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the Secured Party in completed and duly
executed form) will constitute valid perfected security interests
in all of the Collateral in favor of the Secured Party to the
extent a security interest in the Collateral can be perfected by
filing of UCC-1 financing statements, the filing of a security
interest in the United States Patent and Trademark Office, the
filing of a security interest in the United States Copyright
Office, and/or delivery of stock certificates and Instruments, as
collateral security for such Grantor’s obligations,
enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase
any Collateral from such Grantor and (b) are prior to all other
Liens on the Collateral.
Section 5.06
Legal Name, Organizational Status,
Chief Executive Office
. On the date hereof, the correct
legal name of such Grantor, such Grantor’s jurisdiction of
organization, organizational number, taxpayor identification number
and the location of such Grantor’s chief executive office or
sole place of business are specified on Schedule 4.
Section
5.07 Prior Names,
Addresses, Locations of Tangible Assets
. Schedule 5 correctly sets forth
(a) all names that such Grantor has used in the last five years and
(b) the chief executive office of such Grantor over the last five
years (if different from that which is set forth in Section 5.06
above).
Section
5.08 Pledged
Securities
. As of the date hereof, the shares
(or such other equity interests) included in the definition of
Pledged Securities pledged by such Grantor hereunder constitute all
the issued and outstanding shares (or such other equity interests)
of all classes of the capital stock or other equity interests of
each Issuer owned by such Grantor. All the shares (or such
other equity interests) of the Pledged Securities have been duly
and validly issued and are fully paid and non-assessable; and such
Grantor is the record and beneficial owner of, and has good title
to, the Pledged Securities pledged by it hereunder, free of any and
all Liens or options in favor of, or claims of, any other Person,
except the security interest created by this Agreement. As of the
date hereof, no Grantor owns, directly, indirectly, beneficially,
or otherwise any shares (or other equity interests) in any Person,
other than the shares (or other equity interests) included in the
definition of Pledged Securities pledged by such Grantor
hereunder.
Section
5.9 Instruments and Chattel
Paper
. Such Grantor has delivered to the
Secured Party all Collateral constituting Instruments and Chattel
Paper. No Collateral constituting Chattel Paper or
Instruments contains any statement therein to the effect that such
Collateral has been assigned to an identified party other than the
Secured Party, and the grant of a security interest in such
Collateral in favor of the Secured Party hereunder does not violate
the rights of any other Person as a secured party.
Section
5.10 Truth of Information;
Accounts
. All information with respect to
the Collateral set forth in any schedule, certificate or other
writing at any time heretofore or hereafter furnished by such
Grantor to the Secured Party, and all other written information
heretofore or hereafter furnished by such Grantor to the Secured
Party is and will be true and correct in all material respects as
of the date furnished. The place where each Grantor keeps its
records concerning the Accounts, Chattel Paper and Payment
Intangibles is: 444 Castro Street, Suite 318, Mountain View,
California, 94041.
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Section 5.11
Governmental Obligors
. Unless otherwise notified to the
Secured Party, none of the Account Debtors on such Grantor’s
Accounts, Chattel Paper or Payment Intangibles is a Governmental
Authority.
Section
5.12 Intellectual
Property
. Schedule 6 hereto includes all
Patents and Patent Licenses, all Copyrights, and all Trademarks and
Trademark Licenses owned by such Grantor in its own name as of the
date hereof. Each Patent, Copyright, and Trademark is valid,
subsisting, unexpired, enforceable and has not been abandoned.
As of the date hereof, except as set forth in Schedule 6
hereto, none of such Patents, Copyrights, and/or Trademarks is the
subject of any licensing or franchise agreement. As of the
date hereof, no holding, decision or judgment has been rendered by
any Governmental Authority which would limit, cancel or question
the validity of any such Patent, Copyright, or Trademark. As
of the date hereof, no action or proceeding is pending (i) seeking
to limit, cancel or question the validity of any such Patent,
Copyright, or Trademark, or (ii) which, if adversely determined,
would have a material adverse effect on the value of any such
Patent, Copyright, or Trademark.
ARTICLE VI
Covenants
Each Grantor covenants and agrees with
the Secured Party that, with respect to such Grantor and the
Collateral owned or claimed by such Grantor, from and after the
date of this Agreement until all the Obligations are indefeasibly
paid in full in cash:
Section
6.01 Covenants in Loan
Agreements
. Each Grantor shall take, or shall
refrain from taking, as the case may be, each action that is
necessary to be taken or not taken, as the case may be, so that no
breach, violation, default, and/or Event of Default (howsoever
designated) occurs or arises under any Loan Agreement.
Section 6.02
Maintenance of Perfected Security
Interest; Further Documentation
.
(k)
Such Grantor shall maintain the security
interest created by this Agreement as a perfected security interest
having at least the priority described in Section 5.05 and shall
defend such security interest against the claims and demands of all
Persons whomsoever.
(l)
At any time and from time to time, upon
the written request of the Secured Party, and at the sole expense
of such Grantor, such Grantor will promptly and duly give, execute,
deliver, indorse, file or record any and all financing statements,
continuation statements, amendments, notices (including, without
limitation, notifications to financial institutions and any other
Person), contracts, agreements, assignments, certificates, stock
powers or other instruments, obtain any and all governmental
approvals and consents and take or cause to be taken any and all
steps or acts that may be necessary or advisable or as the Secured
Party may reasonably request to create, perfect, establish the
priority of, or to preserve the validity, perfection or priority
of, the Liens granted by this Agreement or to enable the Secured
Party to enforce its rights, remedies, powers and privileges under
this Agreement with respect to such Liens or to otherwise obtain or
preserve the full benefits of this Agreement and the rights, powers
and privileges herein granted; provided that notwithstanding
anything herein to the contrary, so long as no Event of Default has
occurred and is continuing, no Grantor shall be required to execute
any control agreement with respect to any
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Deposit Account or Investment Property
(other than any Pledged Securities that are not maintained in a
Securities Account).
(m)
Without limiting the obligations of the
Grantors under Section 6.02(b): (i) upon the written request
of the Secured Party, such Grantor shall take or cause to be taken
all actions (other than any actions required to be taken by the
Secured Party) requested by the Secured Party to cause the Secured
Party to (A) have “control” (within the meaning of
Sections 9-105, 9-106 and 9-107 of the UCC) over any Collateral
constituting Electronic Chattel Paper, Pledged Securities that are
not maintained in a Securities Account, or Letter-of-Credit Rights,
and (B) be a “protected purchaser” (as defined in
Section 8-303 of the UCC); (ii) upon the written request of the
Secured Party, with respect to Collateral with a value in excess of
$50,000 other than certificated securities and goods covered by a
document in the possession of a Person other than such Grantor or
the Secured Party, such Grantor shall obtain written acknowledgment
that such Person holds possession for the Secured Party’s
benefit; and (iii) with respect to any Collateral constituting
Goods with a value in excess of $50,000 that are in the possession
of a bailee, such Grantor shall provide prompt notice to the
Secured Party of any such Collateral then in the possession of such
bailee, and such Grantor shall upon the written request of the
Secured Party, take or cause to be taken all actions (other
than