EXHIBIT 4.9
GUARANTY
GUARANTY, dated as of March 21, 2005 (this "Guaranty"), made by each
of the existing "Subsidiaries" (as defined in the Securities Purchase Agreement
defined below) of VERILINK CORPORATION, a Delaware corporation (the "PARENT" or
"VRLK") named on the signature pages hereto (collectively, the "EXISTING
SUBSIDIARIES") and each other Subsidiary of VRLK hereafter becoming party hereto
(together with the Existing Subsidiaries, each a "GUARANTOR" and, collectively,
the "GUARANTORS"), in favor of PORTSIDE GROWTH & OPPORTUNITY FUND, a company
organized under the laws of the Cayman Islands, in its capacity as collateral
agent (in such capacity, the "COLLATERAL AGENT") on behalf of the "Buyers" (as
defined below) party to the Securities Purchase Agreement, dated as of even date
herewith (as amended, restated, supplemented or otherwise modified from time to
time, the "SECURITIES PURCHASE AGREEMENT").
WITNESSETH:
WHEREAS, the Parent and each party listed as a "Buyer" on the
Schedule of Buyers attached thereto are parties to a Securities Purchase
Agreement;
WHEREAS, the Parent and the Existing Subsidiaries have each executed
and delivered a Pledge and Security Agreement dated as of even date herewith, in
favor of the Collateral Agent (as amended, restated or otherwise modified from
time to time, the "SECURITY AGREEMENT");
WHEREAS, it is a condition precedent to the Buyers' obligation under
the Securities Purchase Agreement that each of the Existing Subsidiaries execute
and deliver to the Collateral Agent a guaranty guaranteeing all of the
obligations of the Parent thereunder, and that each future domestic Subsidiary
or material foreign Subsidiary of the Parent become a party to this Guaranty and
the Security Agreement; and
WHEREAS, each Guarantor has determined that its execution, delivery
and performance of this Guaranty directly benefit, and are within the corporate
purposes and in the best interests of, such Guarantor;
NOW, THEREFORE, in consideration of the premises and the agreements
herein and in order to induce the Buyers to perform under the Securities
Purchase Agreement, each Guarantor hereby agrees with the Collateral Agent as
follows:
SECTION 1. Definitions. Reference is hereby made to the Securities
Purchase Agreement and the "Notes" (as defined therein) issued pursuant thereto
(as such Notes may be amended, restated, replaced or otherwise modified from
time to time in accordance with the terms thereof, collectively, the "NOTES")
for a statement of the terms thereof. All terms used in this Guaranty, which are
defined in the Security Agreement, the Securities Purchase Agreement or the
Notes and not otherwise defined herein, shall have the same meanings herein as
set forth therein.
SECTION 2. Guaranty. Each Guarantor hereby unconditionally and
irrevocably, jointly and severally, guarantees the punctual payment, as and when
due and payable, by stated maturity or otherwise, of all Obligations of the
Parent from time to time owing by it in respect of the Securities Purchase
Agreement, the Notes and the other "TRANSACTION DOCUMENTS" (as such term is
defined in the Securities Purchase Agreement), including, without limitation,
all interest that accrues after the commencement of any Insolvency Proceeding of
the Parent or any Guarantor, whether or not the payment of such interest is
unenforceable or is not allowable due to the existence of such Insolvency
Proceeding), and all fees, commissions, expense reimbursements, indemnifications
and all other amounts due or to become due under any of the Transaction
Documents (such obligations, to the extent not paid by the Parent, being the
"GUARANTEED OBLIGATIONS"), and agrees to pay any and all expenses (including
reasonable counsel fees and expenses) reasonably incurred by the Collateral
Agent and the Buyers in enforcing any rights under this Guaranty. Without
limiting the generality of the foregoing, each Guarantor's liability hereunder
shall extend to all amounts that constitute part of the Guaranteed Obligations
and would be owed by the Parent to the Collateral Agent and the Buyers under the
Securities Purchase Agreement, the Notes and the other Transaction Documents but
for the fact that they are unenforceable or not allowable due to the existence
of an Insolvency Proceeding involving any Guarantor or the Parent (each, a
"TRANSACTION PARTY").
SECTION 3. Guaranty Absolute; Continuing Guaranty; Assignments.
(a) Each Guarantor, jointly and severally, guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Transaction Documents, regardless of any law, regulation or order now or
hereafter in effect in any jurisdiction affecting any of such terms or the
rights of the Collateral Agent or the Buyers with respect thereto. The
obligations of each Guarantor under this Guaranty are independent of the
Guaranteed Obligations, and a separate action or actions may be brought and
prosecuted against any Guarantor to enforce such obligations, irrespective of
whether any action is brought against any Transaction Party or whether any
Transaction Party is joined in any such action or actions. The liability of each
Guarantor under this Guaranty shall be irrevocable, absolute and unconditional
irrespective of, and each Guarantor hereby irrevocably waives any defenses it
may now or hereafter have in any way relating to, any or all of the following:
(i) any lack of validity or enforceability of any Transaction
Document or any agreement or instrument relating thereto;
(ii) any change in the time, manner or place of payment of, or
in any other term of, all or any of the Guaranteed Obligations, or any other
amendment or waiver of or any consent to departure from any Transaction
Document, including, without limitation, any increase in the Guaranteed
Obligations resulting from the extension of additional credit to any Transaction
Party or otherwise;
(iii) any taking, exchange, release or non-perfection of any
Collateral, or any taking, release or amendment or waiver of or consent to
departure from any other guaranty, for all or any of the Guaranteed Obligations;
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(iv) any change, restructuring or termination of the
corporate, limited liability company or partnership structure or existence of
any Transaction Party; or
(v) any other circumstance (including any statute of
limitations) or any existence of or reliance on any representation by the
Collateral Agent or the Buyers that might otherwise constitute a defense
available to, or a discharge of, any Transaction Party or any other guarantor or
surety.
This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Guaranteed Obligations is rescinded
or must otherwise be returned by the Collateral Agent, the Buyers or any other
Person upon the insolvency, bankruptcy or reorganization of any Transaction
Party or otherwise, all as though such payment had not been made.
(b) This Guaranty is a continuing guaranty and shall (i) remain in
full force and effect until the indefeasible cash payment in full of the
Guaranteed Obligations and all other amounts payable under this Guaranty and
shall not terminate for any reason prior to the Maturity Date and (ii) be
binding upon each Guarantor and its respective successors and assigns. This
Guaranty shall inure to the benefit of and be enforceable by the Collateral
Agent, the Buyers and their successors, pledgees, transferees and assigns.
Without limiting the generality of the foregoing sentence, any Buyer may pledge,
assign or otherwise transfer all or any portion of its rights and obligations
under any Transaction Document to any other Person, and such other Person shall
thereupon become vested with all the benefits in respect thereof granted to such
Buyer herein or otherwise, in each case as provided in the Securities Purchase
Agreement.
SECTION 4. Waivers. Each Guarantor hereby waives promptness,
diligence, notice of acceptance and any other notice with respect to any of the
Guaranteed Obligations and this Guaranty and any requirement that the Collateral
Agent or the Buyers exhaust any right or take any action against any Transaction
Party or any other Person or any Collateral. Each Guarantor acknowledges that it
will receive direct and indirect benefits from the financing arrangements
contemplated herein and that the waiver set forth in this Section 4 is knowingly
made in contemplation of such benefits. Each Guarantor hereby waives any right
to revoke this Guaranty, and acknowledges that this Guaranty is continuing in
nature and applies to all Guaranteed Obligations, whether existing now or in the
future.
SECTION 5. Subrogation. No Guarantor may exercise any rights that it
may now or hereafter acquire against any Transaction Party or any other
guarantor that arise from the existence, payment, performance or enforcement of
such Guarantor's obligations under this Guaranty, including, without limitation,
any right of subrogation, reimbursement, exoneration, contribution or
indemnification and any right to participate in any claim or remedy of the
Collateral Agent and the Buyers against any Transaction Party or any other
guarantor or any Collateral, whether or not such claim, remedy or right arises
in equity or under contract, statute or common law, including, without
limitation, the right to take or receive from any Transaction Party or any other
guarantor, directly or indirectly, in cash or other property or by set-off or in
any other manner, payment or security solely on account of such claim, remedy or
right, unless and until all of the Guaranteed Obligations and all other amounts
payable under this Guaranty shall have indefeasibly been paid in full in cash.
If any amount shall be paid to any Guarantor in
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violation of the immediately preceding sentence at any time prior to the later
of the payment in full in cash of the Guaranteed Obligations and all other
amounts payable under this Guaranty, such amount shall be held in trust for the
benefit of the Collateral Agent and the Buyers and shall forthwith be paid to
the Collateral Agent and the Buyers to be credited and applied to the Guaranteed
Obligations and all other amounts payable under this Guaranty, whether matured
or unmatured, in accordance with the terms of the Transaction Document, or to be
held as Collateral for any Guaranteed Obligations or other amounts payable under
this Guaranty thereafter arising. If (a) any Guarantor shall make payment to the
Collateral Agent and the Buyers of all or any part of the Guaranteed
Obligations, and (b) all of the Guaranteed Obligations and all other amounts
payable under this Guaranty shall indefeasibly be paid in full in cash, the
Collateral Agent and the Buyers will, at such Guarantor's request and expense,
execute and deliver to such Guarantor appropriate documents, without recourse
and without representation or warranty, necessary to evidence the transfer by
subrogation to such Guarantor of an interest in the Guaranteed Obligations
resulting from such payment by such Guarantor.
SECTION 6. Representations, Warranties and Covenants. Each Guarantor
hereby represents and warrants as follows:
(a) Except as set forth in Schedule 6(a), such Guarantor: (i) is an
entity, duly organized, validly existing and in good standing (or such other
similar concept) under the laws of the jurisdiction of its organization as set
forth on the first page hereof; (ii) has all requisite power and authority to
conduct its business as now conducted and as presently contemplated and to
execute and deliver this Guaranty and each other Transaction Document to which
such Guarantor is a party, and to consummate the transactions contemplated
hereby and thereby; and (iii) is duly qualified to do business and is in good
standing (or such other similar concept) in each jurisdiction in which the
character of the properties owned or leased by it or in which the transaction of
its business makes such qualification necessary, except to the extent that the
failure to be so qualified or be in good standing would not have a Material
Adverse Effect.
(b) The execution, delivery and performance by such Guarantor of
this Guaranty and each other Transaction Document to which such Guarantor is a
party: (i) have been duly authorized by all necessary action; (ii) do not and
will not contravene its charter or by-laws (or other applicable constitutive
documents), its limited liability company or operating agreement or its
certificate of partnership or partnership agreement, as applicable, or any
applicable law or any contractual restriction binding on or otherwise affecting
such Guarantor or its properties; (iii) do not and will not result in or require
the creation of any lien (other than pursuant to any Transaction Document) upon
or with respect to any of its properties; and (iv) do not and will not result in
any default, noncompliance, suspension, revocation, impairment, forfeiture or
nonrenewal of any permit, license, authorization or approval applicable to it or
its operations or any of its properties, except in the case of this clause (iv),
for such any such default, noncompliance, suspension, revocation, impairment,
forfeiture or nonrenewal as would not be reasonably expected to have a Material
Adverse Effect.
(c) No authorization or approval or other action by, and no notice
to or filing with, any governmental authority is required in connection with the
due execution, delivery and performance by such Guarantor of this Guaranty or
any of the other Transaction Documents to which such Guarantor is a party,
except for the filing of any financing statements on Form UCC-
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1 or such other registrations, filings or recordings as may be necessary to
perfect the lien purported to be created by any Transaction Documents to which
such Guarantor is a party.
(d) Each of this Guaranty and the other Transaction Documents to
which such Guarantor is or will be a party, when delivered, will be, a legal,
valid and binding obligation of such Guarantor, enforceable against such
Guarantor in accordance with its terms, except as may be limited by general
principles of equity or by applicable bankruptcy, insolvency, reorganization,
moratorium, suretyship or other similar laws and to the extent that the
enforceability of the indemnification provisions herein or therein may be
limited by applicable laws.
(e) There is no pending or, to the best knowledge of such Guarantor,
threatened action, suit or proceeding affecting such Guarantor or to which any
of the properties of such Guarantor is subject, before any court or other
governmental authority or any arbitrator that (i) if adversely determined, could
have a Material Adverse Effect or (ii) relates to this Guaranty or any of the
other Transaction Documents to which such Guarantor is a party or any
transaction contemplated hereby or thereby.
(f) Such Guarantor: (i) has read and understands the terms and
conditions of the Securities Purchase Agreement and the other Transaction
Documents; and (ii) now has and will continue to have independent means of
obtaining information concerning the affairs, financial condition and business
of the Parent and the other Transaction Parties, and has no need of, or right to
obtain from the Collateral Agent or any Buyer, any credit or other information
concerning the affairs, financial condition or business of the Parent or the
other Transaction Parties that may come under the control of the Collateral
Agent or any Buyer.
(g) Such Guarantor covenants and agrees that until indefeasible full
and final payment of the Guaranteed Obligations, it will comply in all material
respects with each of the covenants (except to the extent applicable only to a
public company, or applicable to VRLK as the parent company of such Guarantor),
which are set forth in Section 4 of the Securities Purchase Agreement as if such
Guarantor were a party thereto.
(h) Such Guarantor covenants and agrees that it will remedy any
exceptions to Section 6(a) hereto (as set forth in Schedule 6(a) hereto) within
10 days of Closing (as such term is defined in the Securities Purchase
Agreement).
SECTION 7. Right of Set-off. Upon the occurrence and during the
continuance of any Event of Default, the Collateral Agent or any Buyer may, and
is hereby authorized to, at any time and from time to time, without notice to
any Guarantor (any such notice being expressly waived by each Guarantor) and to
the fullest extent permitted by law, set-off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by the Collateral Agent or any Buyer to or
for the credit or the account of any Guarantor against any and all obligations
of any Guarantor now or hereafter existing under this Guaranty or any other
Transaction Document, irrespective of whether or not the Collateral Agent or any
Buyer shall have made any demand under this Guaranty or any other Transaction
Document and although such obligations may be contingent or unmatured. The
Collateral Agent and each Buyer agrees to notify the relevant Guarantor
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promptly after any such set-off and application made by the Collateral Agent or
such Buyer, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of the Collateral Agent and
the Buyers under this Section 7 are in addition to other rights and remedies
(including, without limitation, other rights of set-off) which the Collateral
Agent and the Buyers may have under this Guaranty or any other Transaction
Document in law or otherwise.
SECTION 8. Notices, Etc. All notices and other communications
provided for hereunder shall be in writing and shall be mailed, telecopied or
delivered, if to any Guarantor, to it at its address set forth on the signature
page hereto, or if to the Collateral Agent, to it at its address set forth in
the Securities Purchase Agreement; or as to either such Person at such other
address as shall be designated by such Person in a written notice to such other
Person complying as to delivery with the terms of this Section 8. All such
notices and other communications shall be effective (i) if mailed (by certified
mail, postage prepaid and return receipt requested), when received or three
Business Days after deposited in the mails, whichever occurs first; (ii) if
telecopied, when transmitted and confirmation is received, provided same is on a
Business Day and, if not, on the next Business Day; or (iii) if delivered, upon
delivery, provided same is on a Business Day and, if not, on the next Business
Day.
SECTION 9. CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE.
ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY OTHER
TRANSACTION DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN
THE COUNTY OF NEW YORK OR OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS GUARANTY, EACH
GUARANTOR HEREBY IRREVOCABLY ACCEPTS IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH GUARANTOR HEREBY
IRREVOCABLY APPOINTS THE SECRETARY OF STATE OF THE STATE OF NEW YORK AS ITS
AGENT FOR SERVICE OF PROCESS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING AND
FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE
AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF
COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, AT ITS ADDRESS
FOR NOTICES AS SET FORTH ON THE SIGNATURE PAGE HERETO AND TO THE SECRETARY OF
STATE OF THE STATE OF NEW YORK, SUCH SERVICE TO BECOME EFFECTIVE TEN (10) DAYS
AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL
AGENT AND THE BUYERS TO SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW
OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY GUARANTOR IN
ANY OTHER JURISDICTION. EACH GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY
GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY
COURT OR FROM ANY LEGAL PROCESS (WHETHER
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THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF
EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH GUARANTOR
HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS
GUARANTY AND THE OTHER TRANSACTION DOCUMENTS.
SECTION 10. WAIVER OF JURY TRIAL, ETC. EACH GUARANTOR HEREBY WAIVES
ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
CONCERNING ANY RIGHTS UNDER THIS GUARANTY OR THE OTHER TRANSACTION DOCUMENTS, OR
UNDER ANY AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT
DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION HEREWITH OR
THEREWITH, OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION
WITH THIS GUARANTY OR THE OTHER TRANSACTION DOCUMENTS, AND AGREES THAT ANY SUCH
ACTION, PROCEEDING OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE
A JURY. EACH GUARANTOR CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR
ATTORNEY OF THE COLLATERAL AGENT OR ANY BUYER HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT THE COLLATERAL AGENT OR ANY BUYER WOULD NOT, IN THE EVENT OF ANY
ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. EACH
GUARANTOR HEREBY ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR
THE COLLATERAL AGENT AND THE BUYERS ENTERING INTO THIS GUARANTY.
SECTION 11. Taxes.
(a) All payments made by any Guarantor hereunder or under any other
Transaction Document shall be made in accordance with the terms of the
Securities Purchase Agreement and shall be made without set-off, counterclaim,
deduction or other defense. All such payments shall be made free and clear of
and without deduction for any present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding taxes imposed on the net income of the Buyers by the jurisdiction in
which such Buyer is organized or where it has its principal lending office (all
such nonexcluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities, collectively or individually, "TAXES"). If any Guarantor shall be
required to deduct or to withhold any Taxes from or in respect of any amount
payable hereunder or under any other Transaction Document;
(i) the amount so payable shall be increased to the extent
necessary so that after making all required deductions and withholdings
(including Taxes on amounts payable to the Collateral Agent or the Buyers
pursuant to this sentence) the Collateral Agent or the Buyers receive an
amount equal to the sum they would have received had no such deduction or
withholding been made,
(ii) such Guarantor shall make such deduction or withholding,
(iii) such Guarantor shall pay the full amount deducted or
withheld to the relevant taxation authority in accordance with applicable
law, and
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(iv) as promptly as possible thereafter, such Guarantor shall
send the Collateral Agent and the Buyers an official receipt (or, if an
official receipt is not available, such other documentation as shall be
satisfactory to the Collateral Agent or the Buyers, as the case may be)
showing payment. In addition, such Guarantor agrees to pay any present or
future taxes, charges or similar levies which arise from any payment made
hereunder or from the execution, delivery, performance, recordation or
filing of, or otherwise with respect to, this Guaranty or any other
Transaction Document other than any present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies
that arise from any payment made hereunder or from the execution, delivery
or registration of, or otherwise with respect to, this Guaranty or any
other Transaction Document (collectively, "OTHER TAXES").
(b) Each Guarantor hereby, jointly and severally, indemnifies and
agrees to hold the Collateral Agent and the Buyers harmless from and against
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed by any jurisdiction on amounts payable under this Section 11) paid by
the Collateral Agent or any Buyer and any liability (including penalties,
interest and expenses for nonpayment, late payment or otherwise) arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes were
correctly or legally asserted. This indemnification shall be paid within 30 days
from the date on which the Collateral Agent or any Buyer makes written demand
therefor, which demand shall identify the nature and amount of Taxes or Other
Taxes.
(c) If any Guarantor fails to perform any of its obligations under
this Section 11, each Guarantor shall, jointly and severally, indemnify the
Collateral Agent and the Buyers for any taxes, interest or penalties that may
become payable as a result of any such failure. The obligations of the Parent
under this Section 11 shall survive the termination of this Guaranty and the
payment of the Obligations and all other amounts payable hereunder.
SECTION 12. Miscellaneous.
(a) Each Guarantor will make each payment hereunder in lawful money
of the United States of America and in immediately available funds to the
Collateral Agent, for the benefit of the Buyers, at such address specified by
the Collateral Agent from time to time by notice to such Guarantor.
(b) No amendment or waiver of any provision of this Guaranty and no
consent to any departure by any Guarantor therefrom shall in any event be
effective unless the same shall be in writing and signed by such Guarantor and
the Collateral Agent, and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given.
(c) No failure on the part of the Collateral Agent or any Buyer to
exercise, and no delay in exercising, any right hereunder or under any other
Transaction Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any right hereunder or under any Transaction Document
preclude any other or further exercise thereof or the exercise of any other
right. The rights and remedies of the Collateral Agent and the Buyers provided
herein and in the other Transaction Documents are cumulative and are in addition
to, and not exclusive
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of, any rights or remedies provided by law. The rights of the Collateral Agent
and the Buyers under any Transaction Document against any party thereto are not
conditional or contingent on any attempt by the Collateral Agent and the Buyers
to exercise any of their rights under any other Transaction Document against
such party or against any other Person.
(d) Any provision of this Guaranty that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining portions hereof or thereof or affecting the validity or enforceability
of such provision in any other jurisdiction.
(e) This Guaranty shall (i) be binding on each Guarantor and its
respective successors and assigns, and (ii) inure, together with all rights and
remedies of the Collateral Agent and the Buyers hereunder, to the benefit of the
Collateral Agent and the Buyers and their respective successors, transferees and
assigns. Without limiting the generality of clause (ii) of the immediately
preceding sentence, any Buyer may assign or otherwise transfer its rights and
obligations under the Securities Purchase Agreement or any other Transaction
Document to any other Person, and such other Person shall thereupon become
vested with all of the benefits in respect thereof granted to the Buyers herein
or otherwise. Each Guarantor agrees that each participant shall be entitled to
the benefits of Section 11 with respect to its participation in any portion of
the Notes as if it was a Buyer. None of the rights or obligations of any
Guarantor hereunder may be assigned or otherwise transferred without the prior
written consent of the Collateral Agent.
(f) This Guaranty and the other Transaction Documents represent the
entire agreement of each Guarantor, the Collateral Agent and the Buyers with
respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Collateral Agent or any Buyer relative to
the subject matter thereof not expressly set forth or referred to herein or in
the other Transaction Documents.
(g) Section headings herein are included for convenience of
reference only and shall not constitute a part of this Guaranty for any other
purpose.
(h) THIS GUARANTY AND THE OTHER TRANSACTION DOCUMENTS (UNLESS
EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER TRANSACTION DOCUMENT) SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO
CONFLICT OF LAW PRINCIPLES.
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IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be
executed by an officer thereunto duly authorized, as of the date first above
written.
LARSCOM INCORPORATED
By: /s/ Leigh S. Belden
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Name: Leigh S. Belden
Title: President
Address: 39745 Eureka Drive
Newark, CA 94560
VERILINK EUROPE LIMITED
By: /s/ Leigh S. Belden
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Name: Leigh S. Belden
Title: Director
Address: 8 Lincoln's Inn Fields
London WC2A 3BP
United Kingdom
SCHEDULE 6(a)
EXCEPTIONS TO GOOD STANDING