Exhibit 10.41
GUARANTY
DATED: February 24,
2004
PARTICULAR
TERMS - DEFINITIONS
As used in this Guaranty, the following terms
and expressions have the respective meanings indicated opposite
each of them; where the meaning of any term is stated to be
“None”, provisions involving the application of that
term shall be disregarded:
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Guarantor :
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Name:
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Johan P. Finley
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Address:
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c/o Borrower
6171 McLeod Drive
Las Vegas, NV 89120
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Lender :
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Name:
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FIRST STATE BANK OF THERMOPOLIS,
a state chartered bank
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Address:
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435 Arapahoe
Thermopolis, WY 82443-1232
Attn: Brian Yarrington, President
Telephone: (307) 864-5561
Fax: (307) 864-9326
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Borrower :
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Name:
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PDS GAMING CORPORATION, a Minnesota corporation
(“ PDS-M ”), PDS GAMING
CORPORATION-NEVADA, a Nevada corporation (“
PDS-NV ”), PDS GAMING
CORPORATION-MISSISSIPPI, a Mississippi corporation (“
PDS-MS ”), and PDS GAMING
CORPORATION-COLORADO, a Colorado corporation (“
PDS-CO ”) (PDS-M, PDS-NV, PDS-MS and PDS-CO are
jointly and severally, the “ Borrower
”)
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Address:
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6171 McLeod Drive
Las Vegas, NV 89120
Attn: Peter D. Cleary, President
Telephone: (702) 736-0700
Fax: (702) 740-8692
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Note :
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Amount:
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A Promissory Note for $7,691,796 (the
“Note”)
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Date:
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Dated of even date herewith,
including any extensions, renewals or
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1
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modifications thereof.
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Collateral :
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None
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Collateral Documents:
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Collateral Documents mean any other document
executed by the Borrower or required of the Guarantor as the same
may be extended, replaced, renewed or modified related to or
executed in conjunction with the Note
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Indebtedness :
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The amount of the Note as the same may be
extended, replaced, renewed or modified.
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THIS GUARANTY, by the Guarantor
(“Guarantor”) is made on the above date to
Lender:
Section 1.
Consideration/Nature of
Guaranty .
In order to induce Lender to make the loan
evidenced by the Note to Borrower, and in consideration thereof and
of other good and valuable consideration, the receipt of which is
hereby acknowledged, the Guarantor hereby unconditionally
guarantees to the Lender: (a) the due and punctual payment,
and not just the collectibility, of the principal of, and interest
on the Note when due, whether at maturity, pursuant to mandatory or
optional prepayments, by acceleration or otherwise, and further
including all Indebtedness, all at the times and place and at the
rates described in, and otherwise according to the tenor of the
Note and Collateral Documents, (b) the punctual and faithful
performance and observation by the Borrower of all duties,
agreements, and obligations of Borrower contained in the Collateral
Documents, including but not by way of limitation, the affirmative
covenants, the negative covenants and the truth and accuracy of all
Representations and Warranties therein set forth.
Section 2.
Security
Instruments .
The Note and Collateral Documents, and all
other, by way of example, related instruments, documents and
writings (sometimes hereinafter collectively referred to as the
“Security Instruments”) are hereby made a part of
this Guaranty by reference thereto, with the same force and effect
as if fully set forth herein.
Section 3.
Continuation
of Liability .
The liability of the Guarantor shall
in no way be affected or impaired by: (a) any amendment,
alteration, extension, renewal, waiver, indulgence or other
modification of the Security Instruments or Indebtedness; (b) any
settlement or compromise in connection with the Indebtedness or
Security Instruments; (c) any subordination of payments under the
Indebtedness or Security Instruments to any other debt or claim;
(d) any substitution, exchange, release or other disposition of all
or any part of the Indebtedness or Security Instruments; (e) any
failure, delay, neglect, act or omission by Lender to act in
connection with the Indebtedness or Security Instruments; (f) any
advances for the purpose of performing any covenant or agreement of
the Borrower, or curing or otherwise in connection with any breach,
event of default, Event of Default (any default, Default or Event
of Default, collectively an “Event of Default”, shall
mean the occurrence of any act, omission or failure (including
failure to pay all sums due at maturity) of the Note or the
Indebtedness (herein “Events of Default”) of any of the
following, after any applicable notice and the expiration of time
to cure as hereinafter provided:
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Borrower shall fail to make payment
of any installment of principal and/or interest required or of any
payment by Borrower, within ten (10) days from the date same is due
and payable except at maturity ; or
The failure or breach of any other
covenant, warranty, agreement, undertaking, condition, promise,
representation or warranty herein contained and/or contained in the
Security Instruments:
(i)
a general assignment by Borrower for
the benefit of creditors;
(ii)
the filing of a voluntary petition
in bankruptcy by Borrower;
(iii)
the filing of any involuntary
petition under any bankruptcy or insolvency law by Borrower’s
creditors, said petition remaining undischarged for a period of
sixty (60) days;
(iv)
the appointment by any court of a
receiver to take possession of substantially all of
Borrower’s assets for a period of sixty (60) days;
or
(v)
attachment, execution or other
judicial seizure of substantially all of Borrower’s assets,
such attachment, execution or other seizure remaining undismissed
or undischarged for a period of sixty (60) days after the levy
thereof.
(vi)
the filing by or against Borrower of
bankruptcy, insolvency, reorganization or other debtor’s
relief afforded Borrower pursuant to the present or future
provisions of the Bankruptcy Code or any other state or federal
statute or by the decision of any court; or (h) any other matter
whether similar or dissimilar to the foregoing. The
obligations of Guarantor are unconditional, notwithstanding any
defect in the genuineness, validity, regularity or enforceability
of the Indebtedness or the Security Instruments, or any other
circumstances whether or not referred to herein, which might
otherwise constitute a legal or equitable discharge or defense of a
surety or Guarantor.
Section 4.
Waivers
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To the extent permitted by Nevada law, the
Guarantor hereby waives: (a) notice of acceptance of this Guaranty
and of creations of Indebtedness of Borrower to Lender; (b)
presentment and demand for payment of any Indebtedness of Borrower
(c) protest, notice of protest, and notice of dishonor or default
to the Guarantor or to any other party with respect to any of the
Indebtedness or Security Instruments; (d) all other notices to
which the Guarantor might otherwise be entitled; (e) any demand for
payment under this Guaranty; (f) any defense arising by reason of
any disability or other defense of Borrower by reason of the
cessation from any cause whatsoever of the liability of the
Borrower; (g) any rights to extension, composition or otherwise
under the Bankruptcy Code or any amendments thereof, or under any
state or other federal statute; (h) any right or claim or claim of
right to cause a marshaling of Borrower’s assets; and (j) the
provisions of Nevada Revised Statutes (“NRS”)
Section 40.430 through the provisions of NRS 40.495. No
notice to or demand on the Guarantor shall be deemed to be a waiver
of the obligation of the Guarantor or of the right of Lender to
take further action without notice or demand as provided herein;
nor in any event shall any modification or waiver of the provisions
of this Guaranty be effective unless in writing nor shall any such
waiver be applicable except in the specific instance for which
given.
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Section 5.
Exercise of
Rights by Lender .
This is an irrevocable, unconditional and
absolute guaranty of payment and performance and Guarantor agrees
that the liability of Guarantor on this Guaranty shall be immediate
and shall not be contingent upon the exercise or enforcement by
Lender of whatever remedies it may have against the Borrower or
others, or the enforcement of any lien or realization upon any
security or Collateral that Lender may at any time possess.
Any one or more successive and/or concurrent actions may be brought
hereon against Guarantor either in the same action, if any, brought
against Borrower or in separate actions, as often as Lender, in its
sole discretion, may deem advisable. No election to proceed
in one form of action or proceeding, or against any party, or on
any obligation, shall constitute a waiver of Lender’s right
to proceed in any