Exhibit 10.12
CORPORATE GUARANTY
ThisCorporate Guaranty("Guaranty") is madeon September 19, 2017,bySMG INDIUM RESOURCES LTD.,a Delaware corporation ("Guarantor"), in favor Crestmark Bank ("Crestmark")toinduceCrestmarktocontinue credit anditsloan toM G CLEANERS, LLC,a Texaslimited liabilitycompany ("Borrower")and becauseGuarantor, whoseeconomicsuccess is vitallylinked toBorrower'ssuccess, has determined thatexecuting and deliveringthisGuarantyisin Guarantor's interest and to Guarantor's financial benefit.
1. Guaranty. Guarantor hereby absolutely, irrevocably and unconditionally guarantees to Crestmark:(a)thefull,prompt and unconditional paymentwhendueof allexistingand future obligations andindebtednessof the BorrowertoCrestmark,including but not limitedto the Indebtedness as defined in the Loan and SecurityAgreement("Agreement") between Crestmark and Borrower (as may be amended) and allprincipal,interest and fees under any and all relatednotes,as theymaybe amended or restated and whether on demand, at maturity, pursuant to mandatory or optional prepayments,byacceleration or otherwise; and(b)the punctual and faithful performance and observationbyBorrower of allduties,agreements, covenants,representations andobligationsofBorrowercontained intheLoan Documents (as definedinSection 3).
2. Absolute, Unconditional and Continuing Obligation. This Guaranty is an absolute, continuing, unconditional, unlimited and irrevocable guaranty.Guarantor will notberelievedfromanyobligations underthis Guaranty untilthisGuarantyisterminated inaccordancewith Section14.The obligations andliabilitiesof Guarantor will continue notwithstanding any defect inthegenuineness, validi ty or enforceability oftheIndebtedness ortheLoan Documents, or anyothercircumstances whichmight otherwiseconstitute a legal or equitabledischargeordefenseofthe liabilitiesof asuretyor guarantor or which might otherwiselimit recourseagainst Guarantor. Thisisa guarantee ofpaymentand not of collection.
3. TheLoan Documents.The Agreement, all relatednotes,and all otherrelateddocumentsnow existingorhereafterarising and executed in connection withtheLoan,includingallamendmentsand restatementsthereto(collectively "Loan Documents"), areincorporated intoandmade a partof this Guarantyby reference.
4. Continuation of Liability.Theliabilityand obligations of Guarantor will in no waybe affected,impaired,diminished orreleasedby any action orinactionwhatsoever otherthanthe indefeasible paymentinfullandincash oftheIndebtedness.
5. Unconditional Waiverofall Defenses. Guarantor unconditionally, absolutely and irrevocably waives each and everydefense,whichunderprinciples of guaranty or suretyshiplawwould otherwise operatetoimpair or diminish theliabilityof Guarantorforthe Indebtedness.
6. Immediate Recourse/Exercise of Rights by Crestmark.At any time when the Indebtedness, or any portion thereof,has not beenpaid when due (whether by acceleration or otherwise), Crestmark can requirethatGuarantor pay Crestmark theamountsowing onthisGuaranty immediately. Crestmarkisnot required to collect first from Borrower,anycollateral,any other guarantor,or anyotherperson.Nodelay orstayin any accelerationofthe [ndebtedness, as against the Borrower,duetothe application of anybankr uptcy,insolvencyor other law orproceedingwill be effectiveunderthis Guaranty, and Guarantor agrees to immediately paytheamount ofthe Indebtednessthatwould bedueand payable but for suchdelayor stay. Allrights,powers,andremediesof Crestmarkhereunderand under the Loan Documents are cumulativeand notalternative and shall bein additionto all rights, powers, andremediesgiven to Crestmark bylawandby agreement.
7. Subordination/Subrogation.Intheeventthat Guarantor becomes obligatedto payanysumsto Borrower, orinthe eventthatBorrower or any subsequent owner of anyCollateralisnowor hereafterbecomes indebted toGuarantor, the amount of such Indebtedness will at all times be subordinate as to lien, time of payment and alJ other respects,tothe amounts owing toCrestmarkbyBorrower.Furthermore,until theIndebtedness is indefeasibly paidinfull andincash, Guarantorherebyabsolutely,irrevocably andunconditionallywaives all rights Guarantormayhave,atlaw orinequitytoseek or claimsubrogation.Crestmarkhas nodutytoenforce or protect anyrights,which the undersigned mayhaveagainst Borrower or any other person and Guarantor assumes full responsibility for enforcing andprotecting these rights.
8. Representations and Warranties. Guarantorrepresents, warrantsand covenants to Crestmarkthat:(a)itis a corporationdulyorganized,ingood standing, andthatthe execution and deliveryof thisGuaranty andthe performanceof the obligations underthisGuarantyarewithin Guarantor'sCorporatepowers,havebeendulyauthorizedbyall necessaryactions,including byitsboard of directors, anddo notcontravene its articles or by-laws; (b)it isthe solememberofBorrower; (c)Guarantorhas completely read and understands theLoanDocuments andagrees toall thoseportionswhichapplyto Guarantor; (d)Guarantorwasprovided an opportunity toreviewtheLoanDocuments with itslegalcounsel; (e) any financialstatementsofGuarantorfurnishedCrestmarkare true and correct and include allcontingentliabilities of Guarantor;(f) sincethedateof anyfinancial statementsfurnished toCrestmark,no material adverse change has occurred in the financialcondition of Guarantor;(g)thereare no pending or threatened legal proceedingsorjudgments against Guarantor, and no federal orstatetaxliens have been filed or threatened against Guarantor; and (h) Guarantor is not in defaultorclaimed default under anyagreementfor borrowed money. Guarantor agrees to immediatelygive Crestmarkwritten notice ofany materialadverse change in its financial condition.
9. Expenses.Guarantoragreesto pay all expenses(includingattorneys'fees)incurred byCrestmarkin connection with the enforcement of Crestmark's rights under the Loan Documents,thisGuaranty, and the collectionofthe Indebtedness.
10. Transferof Assets.Guarantorfurtheragrees thatuntil the Indebtedness is indefeasibly paid infull,and in cash,Guarantor willnot, without Crestmark's prior written consent:(i)make any voluntary transfer of any of Guarantor's assets which would havetheeffect of materially diminishing Guarantor's present net worth or (ii) guaranty the debts or obligations of any other personor entity.
11. Reinstatement.This Guarantywillcontinue to beeffectiveorwillbeautomatically reinstated, as the case may be, ifatany time payment of all or part of the Indebtedness is rescinded or must otherwiseberestored or returned byCrestmark,includinginconnection withBorrower'sbankruptcy orinsolvency.
12. Joint and Several Liability.Theterm"Guarantor"shallmean each person executing this Guaranty,eachindividually andtogethercollectively, and the obligations of Guarantor and any otherguarantorexecuting a guaranty,including in connectionwiththe Loan, willbe joint andseveral.
13. Assignability/BindingEffect.ThisGuaranty shallbeassignablebyCrestmark withoutnotice to Guarantorand shallinure to the benefitofCrestmark and to anysubsequentsuccessors and assigns.
14. Termination.Notwithstanding anything containedherein to the contrary, theliabilityofGuarantorwill be terminated only in theeventthat(i) BorrowerorGuarantorhasindefeasibly paid Crestmark incash and in full the Indebtedness and (ii)theAgreement is terminated.
15. Severability.If any provision of thisGuaranty isinconflictwith anystatuteor ruleoflaw orisotherwise unenforceable for any reason, then that provision willbedeemed null andvoidto theextentof the conflict or unenforceabilityand willbe deemed severable, but itwillnotinvalidateany other provision of thisGuaranty.
16. Complete Agreement.ThisGuarantyis the final, complete andexclusive expressionofthe agreementbetweenGuarantor and Crestmark withrespect to thesubjectmatter of thisGuaranty.ThisGuarantycannot be modifiedoramendedexceptinawritingsignedby bothGuarantorandCrestmark.
The Guarantorhereby executesthisGuarantyas ofthe dayand yearfirst above written.
| | GUARANTOR: |
| | | |
| SMGINDIUMRESOURCES, LTD., |
| | a Delawarecorporation |
| | | |
| | By: | /s/ Matthew C. Flemming |
| | | Matthew C. Flemming, CEO and Chairman |
