Exhibit 10.12
GUARANTY AND SURETYSHIP AGREEMENT
THIS GUARANTY AND SURETYSHIP
AGREEMENT (this “ Agreement ”) dated as of the
30 th
day of January, 2008, made by the Guarantors identified as such on
the signature page hereof (each a “ Guarantor ”
and collectively “ Guarantors ”), to the lenders
parties to the Credit Agreement (as defined below) from time to
time (the “ Lenders ”) and CITIZENS BANK OF
PENNSYLVANIA, a banking association organized under the laws of the
Commonwealth of Pennsylvania, as agent for the Lenders (in such
capacity, together with its successors in such capacity, the
“ Agent ”).
WITNESSETH :
WHEREAS, certain of the Guarantors,
Black Box Corporation of Pennsylvania, a Delaware corporation
(“ BBCPA ”), Norstan, Inc., a Minnesota
corporation (“ Norstan ”), Black Box
Corporation, a Delaware corporation (the “ Parent
”), certain of the Lenders and the Agent entered into that
certain Second Amended and Restated Credit Agreement dated as of
January 24, 2005, as amended (the “ Existing Credit
Agreement ”), pursuant to which the Lenders made a
revolving credit facility available to BBCPA and Norstan;
WHEREAS, in connection with the
Existing Credit Agreement, certain of the Guarantors executed and
delivered to the Lenders and the Agent that certain Guaranty and
Suretyship Agreement dated as of January 24, 2005 (the “
Existing Guaranty ”);
WHEREAS, Guarantors, BBCPA, Norstan
(Norstan, collectively with BBCPA, the “ Borrowers
”), the Parent, the Lenders and the Agent are parties to a
Third Amended and Restated Credit Agreement, dated as of
January 30, 2008 (as amended, the “ Credit
Agreement ”) which amends and restates the Existing
Credit Agreement; and
WHEREAS, the Guarantors will derive
substantial direct and indirect benefit from the transactions
contemplated by the Credit Agreement; and
WHEREAS, it is a condition precedent
to the extension of credit under the Credit Agreement that the
Guarantors execute and deliver this Agreement; and
WHEREAS, this Agreement, among other
things, is made by the Guarantors to induce the Lenders to enter
into the Loan Documents (as defined in the Credit Agreement) and to
induce the Lenders to extend credit under the Credit
Agreement;
WHEREAS, this Agreement amends and
restates the Existing Guaranty.
NOW, THEREFORE, in consideration of
the premises and other good and valuable consideration, the receipt
of which is hereby acknowledged by each Guarantor, and intending to
be legally bound, each Guarantor hereby agrees as follows:
ARTICLE I.
DEFINITIONS
1.1 Definitions .
(a)
Certain Definitions . Capitalized terms not otherwise
defined herein shall have the meanings given in the Credit
Agreement. In addition to the other terms defined elsewhere in this
Agreement, as used herein the following terms shall have the
following meanings:
“
Guaranteed Obligations ” shall mean all obligations
from time to time of the Borrowers, collectively or individually,
to the Agent or any Lender under or in connection with any Loan
Document, including all obligations to pay principal, interest,
fees, indemnities or other amounts under such Loan Documents, in
each case whether such obligations are direct or indirect, secured
or unsecured, joint or several, absolute or contingent, due or to
become due, whether for payment or performance, now existing or
hereafter arising (including interest and other obligations arising
or accruing after the commencement of any bankruptcy, insolvency,
reorganization, dissolution or similar proceeding with respect to
the Borrowers or any other Person, or which would have arisen or
accrued but for the commencement of such proceeding, even if such
obligation or the claim therefor is not enforceable or allowable in
such proceeding).
ARTICLE II.
GUARANTY AND SURETYSHIP
2.1 Guaranty and Suretyship .
Each Guarantor hereby jointly and severally absolutely,
unconditionally and irrevocably guarantees and becomes surety for
the full and punctual payment and performance of the Guaranteed
Obligations as and when such payment or performance shall become
due (at scheduled maturity, by acceleration or otherwise) in
accordance with the terms of the Loan Documents. This Agreement is
an agreement of suretyship as well as of guaranty, is a guarantee
of payment and performance and not merely of collectibility, and is
in no way conditioned upon any attempt to collect from or proceed
against the Borrowers or any other Person or any other event or
circumstance. The obligations of the Guarantors under this
Agreement are direct and primary obligations of each Guarantor and
are independent of the Guaranteed Obligations, and a separate
action or actions may be brought against any Guarantor regardless
of whether action is brought against the Borrowers or any other
Person or whether the Borrowers or any other Person is joined in
any such action or actions.
2.2 Obligations Absolute .
Each Guarantor agrees that the Guaranteed Obligations will be paid
and performed strictly in accordance with the terms of the Loan
Documents, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting the Guaranteed
Obligations, any of the terms of the Loan Documents or the rights
of the Agent or any Lender or any other Person with respect
thereto. The obligations of the Guarantors under this Agreement
shall be absolute, unconditional and irrevocable, irrespective of
any of the following:
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(a) any
lack of legality, validity, enforceability, allowability (in a
bankruptcy, insolvency, reorganization, dissolution or similar
proceeding, or otherwise), or any avoidance or subordination, in
whole or in part, of any Loan Document or any of the Guaranteed
Obligations;
(b) any
change in the amount, nature, time, place or manner of payment or
performance of, or in any other term of, any of the Guaranteed
Obligations (whether or not such change is contemplated by the Loan
Documents as presently constituted, and specifically including any
increase in the Guaranteed Obligations, whether resulting from the
extension of additional credit to the Borrowers or otherwise), any
execution of any additional Loan Documents, or any amendment or
waiver of or any consent to departure from any Loan Document;
(c) any
taking, exchange, release, impairment or nonperfection of any
collateral, or any taking, release, impairment or amendment or
waiver of or consent to departure from any other guaranty or other
direct or indirect security for any of the Guaranteed
Obligations;
(d) any
manner of application of collateral or other direct or indirect
security for any of the Guaranteed Obligations, or proceeds
thereof, to any of the Guaranteed Obligations, or any commercially
reasonable manner of sale or other disposition of any collateral
for any of the Guaranteed Obligations or any other assets of the
Borrowers;
(e) any
permanent impairment by any Lender or any other Person of any
recourse of the Guarantor against the Borrowers or any other
Person, or any other permanent impairment by any Lender or any
other Person of the suretyship status of the Guarantor;
(f) any
bankruptcy, insolvency, reorganization, dissolution or similar
proceedings with respect to, or any change, restructuring or
termination of the corporate structure or existence of, the
Borrowers, any Guarantor or any other Person; or
(g) any
failure of any Lender or any other Person to disclose to any
Guarantor any information pertaining to the business, operations,
condition (financial or other) or prospects of the Borrowers or any
other Person, or to give any other notice, disclosure or
demand.
2.3 Waivers, etc . Each
Guarantor hereby irrevocably waives any defense to or limitation on
its obligations under this Agreement arising out of or based upon
any matter referred to in Section 2.2 and, without limiting
the generality of the foregoing, any requirement of promptness,
diligence or notice of acceptance, any other notice, disclosure or
demand with respect to any of the Guaranteed Obligations and this
Agreement, any requirement of acceptance hereof, reliance hereon or
knowledge hereof by the Agent or any Lender, and any requirement
that the Agent or any Lender protect, secure, perfect or insure any
lien or any property subject thereto or exhaust any right or take
any action against the Borrowers or any other Person or any
collateral or other direct or indirect security for any of the
Guaranteed Obligations. Notwithstanding the foregoing sentence,
each Guarantor’s waiver under this Section 2.3 shall
apply only to each Guarantor’s obligations hereunder and
shall not limit or waive any of such Guarantor’s rights or
obligations as a borrower under the Credit Agreement or any
subrogation rights.
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2.4 Reinstatement . This
Agreement shall continue to be effective, or be automatically
reinstated, as the case may be, if at any time payment of any of
the Guaranteed Obligations is avoided, rescinded or must otherwise
be returned by the Agent or any Lender for any reason, all as
though such payment had not been made.
2.5 No Stay . Without limiting
the generality of any other provision of this Agreement, if any
acceleration of the time for payment or performance of any
Guaranteed Obligation, or any condition to any such acceleration,
shall at any time be stayed, enjoined or prevented for any reason
(including stay or injunction resulting from the pendency against
the Borrowers or any other Person of a bankruptcy, insolvency,
reorganization, dissolution or similar proceeding), each Guarantor
agrees that, for purposes of this Agreement and its obligations
hereunder, at the option of the Agent such Guaranteed Obligation
shall be deemed to have been accelerated and such condition to
acceleration shall be deemed to have been met.
2.6 Payments . All payments to
be made by the Guarantors pursuant to this Agreement shall be made
at the times and in the manner prescribed for payments in Articles
II and III of the Credit Agreement, without setoff, counterclaim,
withholding or other deduction of any nature. All payments made by
the Guarantors pursuant to this Agreement may be applied to the
Guaranteed Obligations and all other amounts payable under this
Agreement in such order as the Agent may elect.
2.7 Subrogation. Etc . Any
rights which any Guarantor may have or acquire by way of
subrogation, reimbursement, restitution, exoneration, contribution
or indemnity, and any similar rights (whether arising by operation
of law, by agreement or otherwise), against the Borrowers arising
from the existence, payment, performance or enforcement of any of
the obligations of any Guarantor under or in connection with this
Agreement, shall be subordinate in right of payment to the
Guaranteed Obligations, and the Guarantors shall not exercise any
such rights until all Guaranteed Obligations and all other
obligations under this Agreement have been paid in cash or such
other manner as may be acceptable to the Agent and performed in
full and all commitments to extend credit under, and all Letters of
Credit issued under, the Loan Documents shall have terminated. If,
notwithstanding the foregoing, any amount shall be received by any
Guarantor o
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