Document:

c48948_ex10-44.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

This instrument and the rights and obligations evidenced hereby, the liens and security interests securing the indebtedness and other obligations incurred or arising under or evidenced by this instrument and the rights and
obligations evidenced hereby with respect to such liens are subordinate in the manner and to the extent set forth in that certain Third Amended and Restated Intercreditor and Lien Subordination Agreement (as amended or otherwise modified from time
to time , the “Intercreditor Agreement”), dated as of May 21, 2007 between and among LaSalle Bank National Association, as Administrative Agent on behalf of the
Lenders and the Agents, LaSalle Bank National Association, as the Revolving Credit Agent, on behalf of the Revolving Credit Lenders and the Revolving Credit Agent, PWJ Lending LLC, as Agent for the Lenders under the Subordinate Facility, the
Company, and certain other parties thereto and acknowledged by the Borrower, all as referred to in such Intercreditor Agreement. 

NOTE

	$7,500,000.00 
		
Dated June 28, 2007 
	

          FOR VALUE RECEIVED, the undersigned WHITEHALL JEWELERS, INC. (f/k/a Whitehall Jewellers, Inc.), a Delaware
corporation (the “Borrower”), hereby promises to pay to the order of PWJ LENDING LLC (the “Lender”) at the Administrative Agent’s Head Office at 623 Fifth Avenue,
32nd Floor, New York, New York, 10022: 

             (a) prior to or on the Maturity Date the principal amount of Seven Million Five Hundred Thousand Dollars ($7,500,000.00); and 

             (b) interest on the principal balance hereof from time to time outstanding from the Initial Fourth Additional Loan Funding Date (or in the case of PIK Interest, from the date capitalized) under the
  Second Amended and Restated Term Loan Credit Agreement, dated as of February 20, 2007, as amended by the First Amendment to the Second Amended and Restated Term Loan Credit Agreement, dated as of May 21, 2007 (as amended, restated, supplemented,
  refinanced or otherwise modified from time to time, the “Credit Agreement”), among the Borrower, the Lender and the other parties thereto, through and including the maturity date hereof at the times and at the rate provided in the Credit
  Agreement. 

          This Note evidences borrowings under and has been issued by the Borrower in accordance with the terms of the Credit Agreement.  The Lender and any holder hereof is entitled to the benefits of the
Credit Agreement, the Security Documents and the other Loan Documents, and may enforce the agreements of the Borrower contained therein, and any holder hereof may exercise the respective remedies provided for thereby or otherwise available in
respect thereof, all in accordance with the respective terms thereof. All capitalized terms used in this Note and not otherwise defined herein shall have the same meanings herein as in the Credit Agreement. 

          The Borrower irrevocably authorizes the Lender to make or cause to be made, on the Initial Fourth Additional Loan Funding Date and at the time of receipt of any payment of principal of this Note, an
appropriate notation on the grid attached to this Note, or the continuation of such grid, or any other similar record, including computer records, reflecting the making of such Loans or (as the case may be) the receipt of such payment.  The
outstanding amount of the Loans set forth on the grid attached to this Note, or the continuation of such grid, or any other similar record, including computer records, maintained by the Lender with respect to the Loans shall be prima facie evidence of the principal amount (including, without limitation,

all PIK Interest) thereof owing and unpaid to the Lender, but the failure to record, or any error in so recording, any such amount on any such grid, continuation or other record shall not limit or otherwise affect the obligation
of the Borrower hereunder or under the Credit Agreement to make payments of principal of and interest on this Note when due. 

          The Borrower has the right in certain circumstances and the obligation under certain other circumstances to prepay the whole or part of the principal (including, without limitation, all PIK Interest)
of this Note on the terms and conditions specified in the Credit Agreement. 

          This Note is a registered Note and, as provided in and subject to the terms of the Credit Agreement, is transferable only upon surrender of this Note for registration of transfer or exchange (and, in
the case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer, duly executed by the registered holder of this Note or his attorney duly authorized in writing), at which time a new Note for a
like principal amount will be issued to, and registered in the name of, the permitted transferee. Reference in this Note to a “holder” shall mean the person or entity in whose name this Note is at the time registered in the register kept
by the Agents as provided in Section 19.3 of the Credit Agreement and, prior to due presentment for registration of transfer, the Borrower may treat such person or entity as the owner of this Note for the purpose of receiving payment and for all
other purposes, and the Borrower will not be affected by any notice to the contrary. 

          If any one or more of the Events of Default shall occur, the entire unpaid principal amount of this Note (including, without limitation, all PIK Interest) and all of the unpaid interest accrued
thereon may become or be declared due and payable in the manner and with the effect provided in the Credit Agreement. 

          No delay or omission on the part of the Lender or any holder hereof in exercising any right hereunder shall operate as a waiver of such right or of any other rights of the Lender or such holder, nor
shall any delay, omission or waiver on any one occasion be deemed a bar or waiver of the same or any other right on any further occasion. 

          The Borrower and every endorser and guarantor of this Note or the obligation represented hereby waives presentment, demand, notice, protest and all other demands and notices in connection with the
delivery, acceptance, performance, default or enforcement of this Note, and assents to any extension or postponement of the time of payment or any other indulgence, to any substitution, exchange or release of collateral and to the addition or
release of any other party or person primarily or secondarily liable. 

          THIS NOTE AND THE OBLIGATIONS OF THE BORROWER HEREUNDER SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO
CONFLICTS OR CHOICE OF LAW).  THE BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS NOTE MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT
AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE ADDRESS

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SPECIFIED IN SECTION 20 OF THE CREDIT AGREEMENT.  THE BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT.

 

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          IN WITNESS WHEREOF, the undersigned has caused this Note to be signed in its corporate name by its duly authorized officer as of the day and year first above written.

	 	WHITEHALL
    JEWELERS, INC. (f/k/a  	 
	 	Whitehall Jewellers, Inc.)   	 
	 	 	 
	 	 	 
	By:  	/s/ Edward A. Dayoob 	
	 	Name:    	Edward
    A. Dayoob	 
	 	Title:    	President
    and CEO	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 

		 
		 

		 
		
Amount of 
		 
		
Balance of 
		 
		 

		 
	 

		 
		
Amount 
		 
		
Principal Paid 
		 
		
Principal 
		 
		
Notation 
	
	
Date 
		 
		
of Loans 
		 
		
or Prepaid 
		 
		
Unpaid 
		 
		
Made By:ex10-4.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.44 

LOCK-UP AGREEMENT 

      This LOCK-UP AGREEMENT (the “Agreement”) is made and entered into as of this 27 day of July, 2007, by among PWJ Funding, LLC (“PWJ Funding”),
PWJ Lending LLC (“PWJ Lending” and together with PWJ Funding, the “PWJ Entities”) and Holtzman Opportunity Fund, LP (“Holtzman” and together with the PWJ Entities, the “Stockholders” and each individually a “Stockholder”) for the benefit of those certain “Investors” (other than the PWJ
Entities) (the “Investors”) who are signatories to that certain Securities Purchase Agreement, dated as of even date herewith (the “Purchase Agreement”).

Recitals: 

      WHEREAS, Stockholders are the owners of the number of shares of common stock, par value $0.001 per share (such shares do not include any shares or warrants to purchase shares issued to the PWJ Entities pursuant to the Purchase
Agreement or any shares issuable upon exercise of such wararnts, the “Shares”), of BTHC VII, Inc., a Delaware corporation (the “Company”), set forth on Exhibit A attached hereto; 

      WHEREAS, the Company and the Investors are entering into the Purchase Agreement contemporaneously herewith; and 

      WHEREAS, in order to induce the Investors to enter into the Purchase Agreement, the Stockholders have agreed to enter into this Agreement. 

 NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Stockholder agrees as follows: 

ARTICLE I 

LOCK-UP 

      SECTION 1.01. Lock-up. Each Stockholder hereby agrees that during the period (the "LockUp Period")
beginning on the date hereof and continuing to and including the date that is 180 calendar days after the date that the “Registration Statement” (as that term is defined in the Registration Rights Agreement) is declared effective, such
Stockholder will not issue, sell, offer or agree to sell, grant any option for the sale of, pledge, enter into any swap, derivative transaction or other arrangement that transfers to another, in whole or in part, any of the economic consequences of
ownership of any of the Shares (whether any such transaction is to be settled by delivery of common stock, other securities, cash or other consideration), establish an open “put equivalent position” within the meaning of Rule 16a-1(h)
under the Securities Exchange Act of 1934, as amended, or otherwise dispose (or publicly announce the undersigned's intention to do any of the foregoing) of any Shares; provided, that, the foregoing shall not prohibit a Stockholder from transferring
(a “Permitted Transfer”) any shares to its 

partners or members so long as such transferee agrees to be bound by the restrictions in this Section 1.01 during the Lock-Up Period. 

ARTICLE 2 

REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS 

      Each Stockholder, severally but not jointly, represents and warrants to the Investors that: 

      (a) The execution, delivery and performance by such Stockholder of this Agreement and the consummation of the transactions contemplated hereby do not and will not (i) to its knowledge, violate any applicable law, rule,
regulation, judgment, injunction, order or decree, (ii) require any consent or other action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration or to a loss of any benefit to which
such Stockholder is entitled under any provision of any material agreement or other material instrument binding on Stockholder, or (iii) result in the imposition of any lien on any assets of such Stockholder; 

      (b) With respect to the Shares set forth opposite such Stockholder’s name on Exhibit A of this Agreement, such Stockholder (x) is the record owner of such Shares free and clear of any lien and any other limitation or
restriction (including any restriction on the right to vote or otherwise dispose of the Shares) or (y) has and, throughout the Lock-Up Period, will have the full power and authority to vote, express consent or dissent, or otherwise utilize the
voting power of such Shares; and 

      (c) Except for the Shares set forth opposite such Stockholder’s name on Exhibit A of this Agreement and those shares of common stock and warrants to purchase common stock of the Company issued to the PWJ Entities pursuant to
the Purchase Agreement, such Stockholder does not own any (i) shares of capital stock of the Company, (ii) securities of the Company convertible into or exchangeable for shares of capital stock of the Company or (iii) options or other rights to
acquire from the Company any capital stock or securities convertible into or exchangeable for capital stock of the Company. 

ARTICLE 3 

MISCELLANEOUS 

      SECTION 3.01.  Further Assurances.  Each Stockholder will each execute and deliver, or cause to be executed and delivered, all further documents and instruments and use
their reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations, to consummate and make effective the transactions contemplated by
this Agreement. 

      SECTION 3.02.  Stop Transfer; Changes In Shares.  During the Lock-Up Period, each Stockholder agrees and covenants that such Stockholder shall not request that the
Company register the transfer (book-entry or otherwise) of any certificate or uncertificated interest representing any of such Stockholder's Shares (except pursuant to a permitted transfer in accordance with Section 1.01), without the prior written
consent of Roth Capital Partners. In the event of a stock dividend or distribution, or any change in the Common Stock by reason of any 

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stock dividend, split-up, recapitalization, combination, exchange of shares or the like, the term "Shares" shall be deemed to refer to and include the Shares as well as all such stock dividends and distributions and any shares
into which or for which any or all of the Shares may be changed or exchanged. 

      SECTION 3.03. Amendments. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of
an amendment, by the Stockholders and Roth Capital Partners or in the case of a waiver, by the Person against whom the waiver is to be effective.

      SECTION 3.04. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties and/or beneficiaries hereto and their
respective successors and assigns; provided that a Stockholder may not assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of
Roth Capital Partners. Each Stockholder agrees (with respect to itself and not the other Stockholders) that this Agreement and the obligations hereunder shall attach to the Shares owned by such Stockholder and shall be binding upon any Person to
which legal or beneficial ownership of such Shares shall pass, whether by operation of law or otherwise, including, without limitation, such Stockholder's heirs, guardians, administrators or successors. Notwithstanding any such transfer of Shares,
the transferor shall remain liable for the performance of all obligations under this Agreement of the transferor. 

      SECTION 3.05. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of New York. 

      SECTION 3.06. Severability.  If any term or provision of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable the remainder of the terms and provisions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 

      SECTION 3.07.  Specific Performance.  Each Stockholder agrees that irreparable damage would occur in the event any provision of this Agreement is not performed in
accordance with the terms hereof and that the beneficiaries hereof shall be entitled to specific performance of the terms hereof in addition to any other remedy to which they are entitled at law or in equity. 

      SECTION 3.08. Capitalized Terms. Capitalized terms used but not defined herein shall have the respective meanings set forth in the Purchase Agreement. 

      SECTION 3.09  Termination.  This Agreement shall automatically terminate and be of no further force and effect upon expiration of the Lock-Up Period. 

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 IN WITNESS WHEREOF, Stockholder has executed this Agreement as of the date first above written. 

	 	
PWJ LENDING LLC 
  
	 	 

  
	 	 

  
	 	
By:  	/s/
      Mathew Hoffman
	 	
Name: 
  	Mathew Hoffman
	 	
Title: 
  	General Counsel
	 	 

  
	 	 

  
	 	
PWJ FUNDING, LLC 
  
	 	 

  
	 	 

  
	 	By:  	/s/
      Mathew Hoffman
	 	Name:  	Mathew Hoffman
	 	Title:  	General Counsel
	 	 

  
	 	 

  
	 	
HOLTZMAN OPPORTUNITY FUND, LP 
  
	 	 

  
	 	 

  
	 	By:  	/s/
      Seymour Holtzman 
	 	Name:  	 
	 	Title:  	 

EXHIBIT A 

	
Stockholder 
  	 
  	
Number of Shares 
  
	
PWJ Funding, LLC* 
  	 
  	
13,108,157 
  
	
PWJ Lending LLC* 
  	 
  	
5,698,830 
  
	
Holtzman Opportunity Fund, LP 
  	 
  	
6,046,813 
  

*Does not include the shares of Common Stock and Warrants to purchase Common Stock purchased by the PWJ Entities pursuant to the Purchase Agreement. 

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