Exhibit 10.27
GUARANTY AND SURETYSHIP
AGREEMENT
THIS GUARANTY AND SURETYSHIP
AGREEMENT (this “Agreement” ) made as of the
19th day of December, 2006, by and among the domestic subsidiaries
of VERTICALNET, INC., each designated as “Guarantors”
on the signature lines hereto (together with their successors and
permitted assigns and any other person or entity that becomes a
Guarantor hereunder pursuant to Section 5 hereof, jointly and
severally, the “Guarantors” or, individually, a
“Guarantor” ), in favor of RADCLIFFE SPC, LTD.
FOR AND ON BEHALF OF THE CLASS A CONVERTIBLE CROSSOVER SEGREGATED
PORTFOLIO (together with its successors and assigns, the
“Noteholder” ). Capitalized terms used herein
but not otherwise defined shall have the same meaning ascribed to
them in the Purchase Agreement (as defined below).
WHEREAS, Verticalnet, Inc., a
Pennsylvania corporation (together with its successors and
permitted assigns, the “Borrower” ), has issued
a promissory note to the Noteholder (the “Note”
) pursuant to a Note Purchase Agreement, dated as of May 15,
2006 (the “ Purchase Agreement ”), by and among
the Borrower and the Noteholder; and
WHEREAS, to induce the Noteholder to
enter into the Purchase Agreement and as set forth in
Section 14(g) of the Note, the Borrower agreed to cause the
Guarantors to execute and deliver this Agreement for the benefit of
the Noteholder.
Accordingly, each Guarantor,
intending to be legally bound, hereby agrees with the Noteholder as
follows.
NOW THEREFORE, in consideration of
the foregoing and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:
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1.
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Guaranty and
Suretyship .
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1.1 Guaranty of Payment . The
Guarantors hereby jointly and severally agree to act as surety for
the Guaranteed Obligations (as defined in Section 1.2 below),
and irrevocably and unconditionally guaranty to the Noteholder that
the Guaranteed Obligations shall be paid in full when due and
payable, whether at the stated or accelerated maturity thereof or
upon any mandatory or voluntary prepayment or otherwise.
1.2 Definition of
“Guaranteed Obligations” . For purposes of this
Agreement, the term “Guaranteed Obligations”
shall mean any obligations under the Note but in any event, shall
include, without limitation, any amounts due from time to time in
respect of (a) principal and interest thereon under the Note
and (b) fees or other amounts payable under the Note.
Notwithstanding the definition of “Guaranteed
Obligations” herein, the liability of each Guarantor
hereunder is limited to an amount equal to (x) the amount that
would render this guaranty void, voidable or unenforceable against
such Guarantor’s creditors or creditors’
representatives under any applicable fraudulent conveyance,
fraudulent transfer or similar act or under Section 544 or 548
of the Bankruptcy Code of 1978, as amended, minus (y) $1.00
(one U.S. Dollar).
1.3 Obligations of Guarantors
Absolute, Etc . The obligations of the Guarantors hereunder
shall be absolute and unconditional. Each Guarantor, jointly and
severally, guarantees that the Guaranteed Obligations will be paid
strictly in accordance with the terms of the agreement, instrument
or document giving rise to such Guaranteed Obligations, regardless
of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any such terms or the rights of the
Noteholder with respect thereto. The liability of the Guarantors
hereunder shall be absolute and unconditional irrespective
of:
(a) any lack of validity or
enforceability of any Transaction Document;
(b) any change in the time, manner
or place of payment of the Guaranteed Obligations;
(c) any amendment or modification of
or supplement to the Transaction Documents (including, without
limitation, any amendment which would increase the amount of the
Guaranteed Obligations), or any furnishing or acceptance of any
security, or any release of any security or the release of any
Person’s obligations (including without limitation, any
Guarantor, the Borrower or any pledgor), with respect to the
Guaranteed Obligations;
(d) any waiver, consent, extension,
indulgence or other action or inaction under or in respect of any
such instrument, document or agreement or any exercise or
non-exercise of any right, remedy, power or privilege under or in
respect of any such instrument;
(e) any counterclaim, setoff,
recoupment or defense based upon any claim any Guarantor, the
Borrower or any pledgor may have against the Noteholder;
(f) any bankruptcy, insolvency,
reorganization, arrangement, readjustment, composition, liquidation
or similar proceeding with respect to the Borrower, any Affiliate
of the Borrower or any Guarantor or their respective properties or
creditors;
(g) any invalidity or
unenforceability, in whole or in part, of any term hereof or of the
Transaction Documents;
(h) any failure on the part of the
Borrower or any Affiliate or any Person that may have been an
Affiliate for any reason to perform or comply with any term of the
Transaction Documents; or
(i) any other occurrence whatsoever,
whether similar or dissimilar to the foregoing.
1.4 Continuing Guaranty .
This guaranty and suretyship is an absolute, unconditional, present
and continuing guaranty and suretyship of payment and is in no way
conditional or contingent; it shall remain in full force and effect
until terminated pursuant to Section 7 below.
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1.5 Joint and Several
Liability . Each and every representation, warranty, covenant
and agreement made by the Guarantors, or any of them, under this
Agreement shall be and constitute joint and several obligations of
all of the Guarantors, whether or not so expressly stated
herein.
1.6 Waivers . Each Guarantor
hereby waives, to the fullest extent permitted by applicable law,
(a) all presentments, demands for performance, notice of
non-performance, protests, notices of protests and notices of
dishonor in connection with the Guaranteed Obligations or any
agreement relating thereto; (b) notice of acceptance of this
Agreement; (c) any requirement of diligence or promptness on
the part of the Noteholder in the enforcement of its rights
hereunder or under the Transaction Documents; (d) any
enforcement of any present or future agreement or instrument
relating directly or indirectly to the Guaranteed Obligations;
(e) notice of any of the matters referred to in subsection 1.3
hereof; (f) notices of every kind and description which may be
required to be given by any statute or rule of law; and
(g) any defense of any kind which it may now or hereafter have
with respect to its liability under this Agreement to the fullest
extent permitted by law. Without limiting the foregoing, the
Noteholder shall not be required to make any demand upon, or to
pursue or exhaust any rights or remedies against the Borrower, any
other Guarantor or any other Person, or against the collateral
security, for the Guaranteed Obligations. No failure on the part of
the Noteholder to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof; nor shall any single
or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any
remedies provided by law. Each Guarantor hereby agrees that it will
not enforce or otherwise exercise or claim or assert any rights of
subrogation or contribution against any Person with respect to the
Guaranteed Obligations or any security therefor unless and until
all the Guaranteed Obligations are paid in full.
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2.
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[Intentionally
Omitted.]
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3.
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[Intentionally
Omitted.]
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4.
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[Intentionally
Omitted.]
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The Guarantors shall at all times
constitute all of the direct and indirect Subsidiaries of Borrower,
excluding any Subsidiary which is formed or incorporated in a
jurisdiction other than a state of the United States, Puerto Rico
or the United States Virgin Islands (such Subsidiary, a
“Foreign Subsidiary” ). Any Person which becomes
such a Subsidiary after the date hereof (excluding any Foreign
Subsidiary) shall become a Guarantor hereunder, and the Borrower
shall cause such Person to signify its acceptance of the terms
hereof by execution and delivery to the Noteholder of one or more
counterparts of the Joinder hereto, appropriately dated.
Each Guarantor hereby pledges and
gives to the Noteholder a lien and security interest for the amount
of the Guaranteed Obligations upon and in the balance of any
account maintained by such Guarantor with the Noteholder or any
other liability of the Noteholder to such Guarantor.
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7.
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Termination
of Guaranty .
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7.1 Termination of Guaranty
Obligations of All Guarantors . At such time as all the
Guaranteed Obligations have been indefeasibly paid and/or performed
in full, then the guaranty provided for herein and this Agreement
shall ter