Document:

AGREEMENT

EXHIBIT

10.16

AGREEMENT

 

 

THIS AGREEMENT, dated November 30, 2001, is by and among Aetrium

Incorporated (“Aetrium”) and Keith E. Williams, Karen M. Williams,

Bartholomew E. Williams, Marlys A. Williams, Dona M. Williams, Jackie

Candelier, Bart Gilbert, William J. Evans, John Estridge, Damon L. Coalson, Hal

Preston and Donna Christenson (individually and collectively, the “Williams

Member(s)”, and Keith E. Williams sometimes the “Williams

Representative”).

 

RECITALS

 

A.           The Williams Members own shares of Aetrium common

stock as scheduled on Exhibit A (the “Scheduled Shares”).

 

B.             The Williams Members each wish to sell their Scheduled

Shares and Aetrium wishes to purchase the Scheduled Shares pursuant to the

terms of this Agreement.

 

NOW THEREFORE, in consideration of the premises and the mutual promises

and covenants contained herein, the parties agree as follows:

 

1.               Purchase and Sale of Scheduled Shares. Each Williams Member hereby sells to

Aetrium the Scheduled Shares set forth in Exhibit A opposite his/her name, and

Aetrium hereby purchases from the Williams Members the Scheduled Shares for a

purchase price per share of $1.275 and a total purchase price of $543,672.75

(the “Purchase

Price”). Aetrium acknowledges receipt of the certificates scheduled

on Exhibit A, duly endorsed.

 

2.               Delivery of Purchase Price. 

Concurrently with execution of this Agreement, Aetrium has delivered to

Oppenheimer Wolff and Donnelly LLP, Minneapolis office (the “Escrow Agent”)

by wire transfer the full amount of the Purchase Price (the “Escrowed

Funds”), to be held and disbursed in accordance with Section 8

hereof.

 

3.               Put Option.  Each

Williams Member hereby grants to Aetrium the option to sell to such Williams

Member a number of shares of Aetrium common stock equal to the number of

Scheduled Shares set forth in Exhibit A opposite his/her name for a per share

price equal to the per share Purchase Price, which option may be exercised at

any time between December 31, 2001 and January 31, 2002, inclusive of such

dates (the “Option

Exercise Period”), and which option will expire and be of no further

force or effect at the end of the Option Exercise Period (individually and

collectively, the “Put Option(s)”). Each Put Option may be

exercised only as a part of a contemporaneous exercise of all Put Options. The

Put Options will be exercised upon written notice of such exercise by Aetrium

to the Williams Representative, whereupon the sale of shares of Aetrium common

stock pursuant to exercise of the Put Options (the “Option Shares”) will be

deemed completed. Payment for the Option Shares will be made by disbursement of

the escrowed funds pursuant to Section 8 hereof.

 

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4.               Issuance of Share Certificates. 

Promptly upon exercise of the Put Options, Aetrium will cause its stock

transfer agent to issue to each Williams Member a certificate for the number of

Option Shares equal to the number of Scheduled Shares scheduled on Exhibit A

opposite his/her name and deliver such certificate to such Williams Member at

his/her address set forth on Exhibit A or in accordance with such other written

delivery instructions as such Williams Member gives to Aetrium prior to

commencement of the Option Exercise Period.

 

5.               Aetrium Expenses. The Williams Members will be liable for all expenses

incurred by Aetrium in connection with this Agreement, including out of pocket

costs for fees and disbursements of counsel and accountants, loss, liability,

costs and expenses of the Escrow Agent, and in the event of registration of

Option Shares pursuant to Section 9 hereof, all registration, filing and NASD

fees, printing expenses, and other expenses of complying with state securities

or blue sky laws of any jurisdictions in which the Registrable Securities (as

defined in Subsection 9.1) are to be registered or qualified, and $1,800 for

Aetrium’s internal costs. In the event Aetrium exercises the Put Options, all

income earned on the Escrowed Funds during escrow will be applied to such

expenses. The Williams Representative will promptly pay Aetrium for all other

expenses upon receipt of invoice therefor. Reimbursement to the Williams

Representative by the other Williams Members for such payments is a matter of

separate agreement among the Williams Members. Aetrium will have no liability

for, and the Williams Members will be solely responsible for, their own costs

and expenses, including fees and disbursements of their counsel and

accountants, and, in the event of registration of Option Shares, each Holder

(as defined in Subsection 9.2 hereof) will be solely responsible for discounts

and commissions, fees and disbursements of counsel and accountants for the

Holder and any other expenses incurred by the Holder in connection with

registration of the Registrable Securities or the disposition of Registrable

Securities pursuant thereto.

 

6.               Aetrium Disclosures.

 

a.               A number of risks and uncertainties exist which could

impact the Aetrium’s future operating results. These risks and uncertainties

include, but are not limited to, general economic conditions, competition, the

Aetrium’s success in developing new products and technologies, market

acceptance of new products, risks and unanticipated costs associated with

integrating or restructuring acquired or existing operations, and other factors,

including those set forth in the Aetrium’s SEC filings, including its Annual

Report on Form 10-K for the year ended December 31, 2000 and its Quarterly

Report on Form 10-Q for the quarter ended September 30, 2001.

 

b.              Aetrium is considering implementing an expense

reduction program in December 2001 that would include a significant workforce

reduction as well as other expense reduction measures. The workforce reduction

would include all areas of operations and all levels of personnel, but would be

implemented primarily in Aetrium’s North St. Paul facility. Although Aetrium

management believes this action is necessary and appropriate, if implemented it

will decrease Aetrium’s 

 

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capabilities in

production, sales and engineering and accordingly may have a negative impact on

Aetrium’s future financial performance.

 

7.               Williams Members Representations. 

Each Williams Member hereby represents and warrants as follows:

 

a.               He/she is transferring to Aetrium full and sole right,

title and interest in and to the Scheduled Shares set forth in Exhibit A

opposite his/her name, free and clear of all liens, encumbrances and third

party rights.

 

b.              He/she

has received and reviewed Aetrium’s 2000 Annual Report, its Annual Report on Form 10-K for the year

ended December 31, 2000, its Proxy Statement for its Annual Meeting held on May

22, 2001, its Quarterly Reports on Form 10-Q for the quarters ended March 31,

20001, June 30, 2001 and September 30, 2001, and the disclosures made by

Aetrium hereunder, and has been given access to full and complete information

regarding Aetrium and has utilized such access to his/her satisfaction for the

purpose of obtaining information in addition to, or verifying information

included in, the referenced documents and disclosures.

 

c.               He/she

believes he/she, either alone or with the assistance of his/her professional

advisor, has such knowledge and experience in financial and business matters

that he/she is capable of reading and interpreting financial statements and

evaluating the merits and risks of his/her sale of the Scheduled Shares,

his/her grant of the Put Option, and his/her potential investment in the Option

Shares pursuant to exercise of the Put Option, and has obtained, to the extent

he/she deems necessary, his/her own personal professional advice with respect

to such merits and risks and the suitability of the potential investment in the

Option Shares in light of his/her financial condition and investment needs.

 

d.              He/she

understands that whether or not the Put Option is exercised is entirely within

the discretion of Aetrium. In addition, the trading price of Aetrium common

stock is subject to significant fluctuations, and he/she understands that, if

the Put Option is exercised, there can be no assurance that the trading price

of Aetrium common stock at the time of such exercise will not be less than the

current trading price.

 

e.               He/she

understands that the Option Shares as an investment would involve a high degree

of risk, including without limitation the risks set forth and referenced in

Section 6 hereof. He/she further understands that if the Put Option is

exercised there is no assurance that an adequate public market will be

available for the sale of the Option Shares when and if he/she decides to

liquidate his/her investment in the Option Shares.

 

f.                 In the

event the Put Option is exercised, he/she believes that the investment in the

Option Shares is suitable for him/her based upon his/her investment objectives

and financial needs, and he/she is in a financial position to hold the Option

Shares for an indefinite period of time, has adequate means for providing for

his/her current financial needs and personal contingencies and has no need for

liquidity of

 

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investment with respect to the Option Shares, and is

able to bear the economic risk and withstand a complete loss of his/her

investment in the Option Shares.

 

g.              In the

event the Put Option is exercised, he/she will purchase the Option Shares in

his/her name solely for his/her own beneficial interest and for investment, and

not as nominee for, or on behalf of, or for the beneficial interest of, or with

the intention to transfer to, any other person, trust or organization.

 

h.              He/she is

a resident of the State of Texas, and his/her address and social security

number are as scheduled on Exhibit A.

 

i.                  He/she

understands that if the Put Option is exercised, the Option Shares will not be

registered under the Securities Act (as defined in Subsection 9.1) or

applicable state securities laws and that such securities are being offered and

will be sold pursuant to exemptions from such laws and that Aetrium’s reliance

upon such exemptions is predicated in part on his/her representations as contained

herein. He/she further understands that he/she may not dispose of or transfer

the Option Shares without first obtaining the opinion of counsel to Aetrium

that such proposed disposition or transfer lawfully may be made without the

registration of such securities pursuant to the Securities Act and applicable

state securities laws, or such registration.

 

j.                  He/she

has relied on his/her own tax advisors with respect to the income tax effects

of the transactions contemplated hereunder, and has received no advice thereon

from Aetrium or any Aetrium representative.

 

8.               Escrow.

 

a.               The Escrow Agent

is hereby authorized and directed to invest the Escrowed Funds in the Oppenheimer Wolff & Donnelly Savings

Trust Account, or in such other

obligations as are specified in written instructions signed by or on behalf of

Aetrium and the Williams Representative.

 

b.              Upon receipt by

the Escrow Agent on or after December 31, 2001 and on or prior to January 31,

2002 of written notice from Aetrium that Aetrium has exercised the Put Options,

which notice will include wire transfer instructions, the Escrow Agent will

promptly wire transfer to Aetrium the Escrowed Funds and all income then earned

thereon.

 

c.               In the event the

Escrow Agent receives no such notice from Aetrium of exercise of the Put

Options, then upon receipt by the Escrow Agent on or after February 1, 2002 of

written notice from the Williams Representative requesting disbursement of the

Escrowed Funds, which notice will include wire transfer instructions, the Escrow

Agent will promptly wire transfer the Escrowed Funds and all income then earned

thereon in accordance with such instructions.

 

d.              The duties and

obligations of the Escrow Agent will be determined solely by the express

provisions of this Section 8 and the Escrow Agent will not be liable except for

the performance of such duties and obligations as are specifically set 

 

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forth in this Section. The

Escrow Agent will not be responsible in any manner whatsoever for any failure

or inability of Aetrium or the Williams Representative or of anyone else to

perform or comply with any of the provisions of this Section or any other

agreement. The Escrow Agent will not be

bound by any modification, cancellation or rescission of the provisions of this

Section unless in writing and signed by it, Aetrium and the Williams

Representative .

 

e.               In the performance

of its duties hereunder, the Escrow Agent will be entitled to rely upon any

document, instrument or signature believed by it to be genuine and signed by

either of Aetrium, the Williams Representative or their successors.  The successor of either such party will be

as set forth in a signature certificate delivered to the Escrow Agent, in form

satisfactory to the Escrow Agent.  The

Escrow Agent may assume that any person purporting to give any notice of

instructions in accordance with the provisions hereof has been duly authorized

to do so.

 

f.                 The Escrow Agent

will not be liable for any error in judgment, or any action taken or omitted to

be taken hereunder, including without limitation, for any loss or tax

consequence resulting from any investment or any sale of any investment made

hereunder, except in the case of its bad faith, willful misconduct or its own

gross negligence.  The Escrow Agent will

be entitled to consult with counsel of its choosing and will not be liable for

any action taken or omitted by it in accordance with the advice of such

counsel. If the Escrow Agent is uncertain

as to its duties or rights hereunder, or is of the opinion that there is a

dispute hereunder, or is of the opinion that there is a dispute between Aetrium

and the Williams Members arising out of or in connection with this Escrow

Agreement, or receives instructions from Aetrium or the Williams Representative

with respect to the Escrowed Funds which, in its opinion, are in conflict with

any of the provisions of this Section, the Escrow Agent will be entitled to

refrain from taking any action until such time as there has been a final

determination of the rights of Aetrium and the Williams Members with respect to

the Escrowed Funds, or deposit the Escrowed Funds and all income earned

thereon with any court of competent

jurisdiction pending the final determination of any dispute among such parties.

 

g.              The Escrow Agent will not be under any obligation to take any legal

action in connection with this Section 8 or for its enforcement or to appear

in, prosecute or defend any action or legal proceeding which, in its opinion,

would or might involve it in any cost, expense, loss or liability, unless, and

as often as required by it, it is furnished with security and indemnity

satisfactory to it against all such costs, expenses, losses or liability.

 

h.              The Escrow Agent

or any successor to it as escrow agent hereafter appointed may at any time

resign and be discharged of the duties imposed hereunder by giving notice to

Aetrium and the Williams Representative, such resignation to take effect upon

the earlier of the appointment of a successor escrow agent by Aetrium and the

Williams Representative, or ninety (90) days after the giving of such notice

(provided that prior to the expiration of such 90-day period, the Escrow Agent

has 

 

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deposited the Escrowed Funds

and all income earned thereon with the office of the clerk of the court of any

court of competent jurisdiction).

 

i.                  Aetrium will

reimburse the Escrow Agent for out-of-pocket expenses, including without

limitation legal fees, postage, wire-transfer charges, disbursements and

advances, incurred or made by the Escrow Agent hereunder. Aetrium will

indemnify the Escrow Agent and hold it harmless from any and all loss,

liability, costs or expenses (including reasonable attorneys’ fees) incurred

without bad faith, willful misconduct or negligence on the part of the Escrow

Agent and arising out of or in connection with its acceptance of or the

performance of its duties and obligations under this Section 8, which

indemnification obligation will survive the resignation of the Escrow Agent or

the termination of this Section 8.  Any

amount owing hereunder to the Escrow Agent may be charged to and paid from the

Escrowed Funds.

 

9.               Registration Rights.

 

9.1 Registration.

 

a.               In the event Aetrium exercises the Put Options,

Aetrium will prepare and file a registration statement covering the Registrable

Securities on Form S-3 (the “Registration Statement”) promptly (and in

any event within ten (10) business days) following exercise of the Put Options

and will use its best efforts to cause the Registration Statement to become and

remain effective for a period ending twelve (12) months following exercise of

the Put Options (the “Effectiveness Period”).  Aetrium will be obligated to prepare, file

and cause to become effective only one Registration Statement pursuant to this

Subsection 9.1.  “Registrable Securities”

means any Option Shares and any shares of the common stock of Aetrium issued as

a dividend, stock split, reclassification, recapitalization or other

distribution with respect to, or in exchange for or replacement of, any

Registrable Securities; provided, however, that Registrable Securities will not

include (1) shares that have been sold to the public either pursuant to the

Registration Statement or Rule 144, or (2) shares sold in a transaction in

which the registration rights conferred by this Section 9 are transferred in

violation of Subsection 9.6 hereof.  The

“Securities

Act” means the Securities Act of 1933, as amended, or any similar

successor statute, and the rules and regulations thereunder, as the same are in

effect from time to time.  “Rule 144”

means Rule 144 promulgated by the Commission under the Securities Act, as such

rule may be amended from time to time, or any successor rule thereto.  The “Commission” means the Securities and

Exchange Commission or any other federal agency at the time administering the

Securities Act.

 

b.  Aetrium may delay the filing of the

Registration Statement for not more than thirty (30) days if in the good faith

judgment of the Board of Directors of Aetrium (the “Board”), there is a material

development relating to the condition (financial or otherwise) of Aetrium that

has not been disclosed to the general public and the Board determines that,

under such circumstances, it would be in Aetrium’s best interests to delay such

registration.

 

6

 

 

9.2   Procedures for Sale of

Registrable Securities. “Holder” means each Williams Member with

respect to the Option Shares issued to such Williams Member pursuant to Section

4 and any other Registrable Securities issued with respect thereto and each

transferree of the registration rights under this Section 9 with respect to

such Registrable Securities transferred in compliance with Subsection 9.6 hereof.  Each time any Holder desires to offer and

sell any Registrable Securities pursuant to the Registration Statement, the

Holder agrees to comply with the following procedures:

 

a.               The Holder will provide Aetrium with a Sale Notice

prior to the sale of any Registrable Securities.  “Sale Notice” means a written notice provided to Aetrium

which specifies (1) the name, address and facsimile number of or for the

Holder, and (2) the number of Registrable Securities such Holder desires to

sell.

 

b.     Upon

receipt of the Sale Notice, Aetrium will take the following steps:

 

(i)  If Aetrium determines that the Registration

Statement, the prospectus forming a part thereof and any amendments and

supplements thereto contain current and updated information and do not contain

any untrue statement of material fact or omit to state any material fact

required to be stated therein or necessary to make the statements therein, in

light of the circumstances in which they were made, not misleading, Aetrium

will promptly (and in any event within three (3) business days after receipt of

the Sale Notice) notify the Holder that such Holder may sell the Registrable

Securities.  If the Holder does not sell

the Registrable Securities within thirty (30) days after such notification from

Aetrium, however, the Holder will once again become subject to the procedures

described in this Subsection 9.2 and may not sell the Registrable Securities

without first complying with the procedures described herein.

 

(ii)   If Aetrium determines that the Registration

Statement, the prospectus forming a part thereof or any amendments or

supplements thereto do not contain current and updated information or contain

any untrue statement of material fact or omit to state any material fact

required to be stated therein or necessary to make the statements therein, in

light of the circumstances in which they were made, not misleading, Aetrium

will promptly (and in any event within three (3) business days after receipt of

the Sale Notice) notify the Holder of such determination, and within thirty

(30) days thereafter will prepare and file with the Commission such amendments

or supplements thereto as may be necessary so that the Registration Statement,

the prospectus forming a part thereof and any amendments and supplements

thereto contain current and updated information and do not contain any untrue

statement of material fact or omit to state any material fact required to be

stated therein or necessary to make the statements therein, in light of the

circumstances in which they were made, not misleading.  Promptly after any such amendments or

supplements have been filed and, if applicable, declared effective, Aetrium

will notify the Holder that such Holder may sell the Registrable Securities.  If the Holder does not sell the Registrable

Securities within thirty (30) days after such notification from Aetrium,

however, the Holder will once again become subject to the procedures described

in this 

 

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Subsection 9.2 and may not sell the Registrable

Securities without first complying with the procedures described herein.

 

c.               Only after Aetrium has reviewed the Registration

Statement and provided the Holder with the written notification provided in

Subsection 9.2(b) above may the Holder sell the Registrable Securities pursuant

to the Sale Notice.

 

d.              Any notice to be given hereunder by a Holder to

Aetrium will be delivered as provided in Section 10. Any notice to be given

hereunder by Aetrium to the Holder will be in writing and delivered by

telephonic facsimile transmission to the facsimile number provided by the

Holder in the applicable Sale Notice. 

Any notice which is delivered to the Holder by telephonic facsimile

transmission in the manner provided herein will be deemed to have been duly

given to the Holder upon transmission to the facsimile number provided.

 

9.3         Restrictions on Sale of Registrable

Securities.  Notwithstanding any other provision in this

Section 9 to the contrary, Holders are prohibited from selling any Registrable Securities

in the circumstances described below, and any sale made in such circumstances

will be deemed a breach of this Agreement and may constitute a violation of the

Securities Act, which could subject such Holder to civil and criminal

sanctions:

 

a.               Holders may not sell Registrable Securities during the

period that commences on the seventh day of the last month of an Aetrium fiscal

quarter and ends on the third business day after Aetrium releases financial

results for such quarter.

 

b.              Holders may not sell any Registrable Securities if the

Registration Statement, the prospectus forming a part thereof or any amendments

or supplements thereto do not contain current and updated information or

contain any untrue statement of material fact or omit to state any material

fact required to be stated therein or necessary to make the statements therein,

in light of the circumstances in which they were made, not misleading.

 

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9.4 Indemnification.

 

a.               Aetrium will indemnify and hold harmless each Holder,

and each person, if any, who controls such Holder within the meaning of the

Securities Act, from and against, and will reimburse such Holder and each such

controlling person with respect to, any and all loss, damage, liability, cost

and expense to which such Holder or any such controlling person may become

subject under the Securities Act or otherwise, insofar as such losses, damages,

liabilities, costs or expenses are caused by any untrue statement or alleged

untrue statement of any material fact contained in such Registration Statement,

any prospectus forming a part thereof or any amendments or supplements thereto,

or arise out of or are based upon the omission or alleged omission to state

therein a material fact required to be stated therein or necessary to make the

statements therein, in light of the circumstances in which they were made, not

misleading; provided, however, that Aetrium will not be liable in any such case

to the extent that any such loss, damage, liability, cost or expense arises out

of or is based upon (1) an untrue statement or alleged untrue statement or

omission or alleged omission so made in conformity with information furnished

by such Holder or such controlling person in writing specifically for use in

the preparation thereof, or (2) the failure of such Holder to deliver a

prospectus and any amendments or supplements thereto in accordance with the

requirements of this Section 9 and the Securities Act.

 

b.              Seller and each holder jointly and severally will

indemnify and hold harmless Aetrium, its directors and officers, and any

controlling person from and against, and will reimburse Aetrium, its directors

and officers, and any controlling person with respect to, any and all loss,

damage, liability, cost or expense to which Aetrium or any controlling person

may become subject under the Securities Act or otherwise, insofar as such

losses, damages, liabilities, costs or expenses are caused by any untrue or

alleged untrue statement of any material fact contained in such Registration

Statement, any prospectus forming a part thereof or any amendment or supplement

thereto, or arise out of or are based upon the omission or the alleged omission

to state therein a material fact required to be stated therein or necessary to

make the statements therein, in light of the circumstances in which they were

made, not misleading, in each case to the extent, but only to the extent, that

any such loss, damage, liability, cost or expense arises out of or is based

upon (1) an untrue statement or alleged untrue statement or omission or alleged

omission made in reliance upon and in strict conformity with written

information furnished by such Holder specifically for use in the preparation

thereof, or (2) the failure of such Holder to deliver a prospectus and any

amendments or supplements thereto in accordance with the requirements of this

Section 9 and the Securities Act.

 

c.               Promptly after receipt by an indemnified

party pursuant to the provisions of Subsection 9.4(a) or (b) hereof of notice

of the commencement of any action involving the subject matter of the foregoing

indemnity provisions, such indemnified party will, if a claim thereof is to be

made against the indemnifying party pursuant to the provisions of such

Subsection 9.4(a) or (b), promptly notify the indemnifying party of the

commencement thereof.  In case such

action is 

 

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brought against any indemnified party and it notifies

the indemnifying party of the commencement thereof, the indemnifying party will

have the right to participate in, and, to the extent that it may wish, jointly

with any other indemnifying party similarly notified, to assume the defense

thereof, with counsel reasonably satisfactory to such indemnified party;

provided, however, that if the defendants in any action include both the

indemnified party and the indemnifying party and the representation of both

parties by the same counsel would be inappropriate due to a conflict of

interest between them, the indemnified party or parties will have the right to

select separate counsel to participate in the defense of such action on behalf

of such indemnified party or parties. 

After notice from the indemnifying party to such indemnified party of

its election so to assume the defense thereof, the indemnifying party will not

be liable to such indemnified party pursuant to the provisions of such

Subsection 9.4(a) or (b) for any legal or other expense subsequently incurred

by such indemnified party in connection with the defense thereof other than

reasonable costs of investigation, unless (1) the indemnified party has

employed counsel in accordance with the proviso of the preceding sentence, (2)

the indemnifying party has not employed counsel reasonably satisfactory to the

indemnified party to represent the indemnifying party within a reasonable time

after the notice of the commencement of the action, or (3) the indemnifying

party has authorized the employment of counsel for the indemnified party at the

expense of the indemnifying party.  It

is understood that the indemnifying party will not, in connection with any

proceeding or related proceedings in the same jurisdiction, be liable for the

fees and expenses of more than one separate firm for all indemnified parties.

 

9.5         Cooperation; Information by Holders. 

Each Holder of Registrable Securities covered by the Registration

Statement agrees to cooperate with all reasonable requests by Aetrium necessary

to effectuate the purposes of this Section 9, including providing Aetrium on a

timely basis with any required notices and with all information necessary in

connection with any registration or compliance described herein.

 

9.6         Transfer of Registration Rights. 

The registration rights provided for herein may not be transferred or

assigned in connection with the sale or transfer of the Registrable Securities

without the written consent of Aetrium.

 

9.7         Termination of Registration Rights. 

The registration rights described herein will terminate upon expiration

of the Effectiveness Period.

 

10. Notices.

Any notice, request, instruction or other document to be given hereunder by any

party hereto to any other party will be in writing and delivered personally or

by registered or certified mail, postage prepaid (and if by mail, with a copy

sent by facsimile or e-mail transmission, and provided that any Sale Notice may

be sent by mail or facsimile transmission),

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if to Aetrium to:

Aetrium Incorporated

2350 Helen Street

North St. Paul, Minnesota 55109

Attn: Douglas L. Hemer

Facsimile No.: (651) 704-1845

E-mail: dhemer@aetrium.com

If to the Williams

Representative:

Keith E. Williams

10501 Markison Rd.

Dallas, Texas  75238

Facsimile No.:

E-mail: kwilliams@aetrium.com

 

If to the Escrow Agent:

 

Oppenheimer Wolff & Donnelly

3400 Plaza VII Building

45 South Seventh Street

Minneapolis, Minnesota 55402

Attn: Thomas C. Thomas

Facsimile No.:

E-mail: tthomas@oppenheimer.com

 

or at such other

address for a party as may be specified by like notice.  Any notice which is delivered personally

will be deemed to have been duly given to the party to whom it is directed upon

actual receipt by such party (or its agent for notices hereunder).  Any notice which is addressed and mailed,

with copy transmitted by facsimile or e-mail, in the manner herein provided

will be conclusively presumed to have been duly given to the party to which it

is given on the day it is so placed in the mail.

 

11.         Counterparts. 

This Agreement may be executed in one or more counterparts, each of

which will for all purposes be deemed to be an original and all of which will

constitute the same instrument.

 

12.         Successors and Assigns. 

The terms and conditions of this Agreement will inure to the benefit of

and be binding upon the respective successors and permitted assigns of the

parties hereto.  This Agreement may not

be assigned by any party without the prior written consent of the other parties

hereto. Any attempted assignment of this Agreement contrary to the terms hereof

will be null and void and of no force or effect.

 

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13.         Governing Law . 

This Agreement will be construed in accordance with and governed by the

laws of the state of Minnesota applicable to agreements made and to be

performed in such jurisdiction without reference to conflicts of law

principles.

 

14.         Entire Agreement. 

This Agreement constitutes the entire agreement of the parties with

respect to the matters provided for herein and supersedes all prior and

contemporaneous agreements, understandings, negotiations and discussions,

whether oral or written, of the parties. 

No amendment, modification or alteration of the terms or provisions of

this Agreement will be binding unless the same is in writing and duly executed

by the parties hereto.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the

date first above written.

 

	

  Aetrium Incorporated

  	

   

  	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  
	

   

  	

   

  	

   

  
	

  By: /s/ Joseph Levesque

  	

   

  	

  /s/ Keith E. Williams

  
	

  Its President and CEO

  	

   

  	

  Keith E. Williams

  

 

12

 

	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  	

   

  	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  
	

  /s/ Karen Williams

  	

   

  	

  /s/ Bartholomew E. Williams

  
	

  Karen M. Williams

  	

   

  	

  Bartholomew E. Williams

  
	

   

  	

   

  	

   

  
	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems appropriate

  with respect thereto:

  	

   

  	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  
	

  /s/ Marlys A. Williams

  	

   

  	

  /s/ Dona M. Williams

  
	

  Marlys A. Williams

  	

   

  	

  Dona M. Williams

  
	

   

  	

   

  	

   

  
	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  	

   

  	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  
	

  /s/ Jackie Candelier

  	

   

  	

  /s/ Bart Gilbert

  
	

  Jackie Candelier

  	

   

  	

  Bart Gilbert

  
	

   

  	

   

  	

   

  
	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  	

   

  	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  
	

  /s/ William J. Evans Jr

  	

   

  	

  /s/ John Estridge

  
	

  William J. Evans

  	

   

  	

  John Estridge

  

 

13

 

	

   

  	

   

  	

   

  
	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  	

   

  	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  
	

  /s/ Damon L. Coalson

  	

   

  	

  /s/ Hal Preston

  
	

  Damon L. Coalson

  	

   

  	

  Hal Preston

  
	

   

  	

   

  	

   

  
	

  In executing this Agreement, the undersigned confirms that he/she has

  reviewed, understands and agrees to the terms hereof, including without

  limitation his/her representations hereunder, and that he/she has received

  such advise from legal, accounting or other advisors as he/she deems

  appropriate with respect thereto:

  	

   

  	

   

  
	

  /s/ Donna Christenson

  	

   

  	

   

  
	

  Donna Christenson

  	

   

  	

   

  
	

   

  	

   

  	

   

  

 

 

14

The undersigned agrees to act as Escrow Agent under the foregoing

Agreement pursuant to Sections 8 and 10 thereof, and acknowledges receipt of

$543,672.75 to be held as Escrowed Funds.

 

Oppenheimer Wolff & Donnelly LLP

 

 

	

  By:  

  	

   /s/ Tom C. Thomas

  	

   

  	

  Dated: November 30, 2001

  
	

  A Partner

  	

   

  	

   

  

 

15$500,000

Exhibit 10.7 to Form 10-K

 

	

  $125,000

  	

   

  	

   

  	

   

  	

  November

  30, 2001

  

 

SECURED PROMISSORY NOTE

 

1.             Obligation.  For value received, AMERICABILIA.COM, INC.,

a Florida corporation (“Maker”) promises to pay to the order of HENRY E.

CARTWRIGHT (“Holder”) the Principal Amount (as defined below) together with

Interest (as defined below) in the manner and upon the terms and conditions set

forth herein (the “Obligation”).

 

Amount and Payment.  The principal amount (“Principal Amount”) of

this Note is One Hundred Twenty Five Thousand Dollars ($125,000).  This Note shall bear interest on the unpaid

Principal Amount at the rate of ten percent (10%) per annum (“Interest”).  The Principal Amount and Interest shall be

all due and payable on December 31, 2002.

 

2.             Manner and Place of Payment.  Payments of the Principal Amount and

Interest shall be made in lawful money of the United States of America.  Principal is payable at 13 Dovetail Circle,

Henderson, Nevada 89120 or at such place as Holder may designate in writing.

 

3.             Security.  The Obligation guaranteed by Worldwide

Collectibles, Inc., the wholly owned subsidiary of Maker, and performance of

the guaranty is secured by a Security Agreement of even date herewith between

Worldwide Collectibles, Inc. as debtor and Gary Moore and Henry E. Cartwright

as secured party.

 

4.             Prepayment.  Maker shall have the right, at its option,

to prepay this Note, in part or in full, at any time and from time to time,

prior to maturity, without penalty, bonus or charge.

 

5.             Events of Default.  The following shall each constitute an

“Event of Default” under this Note: (i) default in the payment when due of an

installment of Principal Amount and such default shall continue for a period of

five (5) days; (ii) an event of default under the Loan Agreement of even

date herewith; (iii) an event of default under the Security Agreement of

even date herewith; and (iv) any of the following events of bankruptcy or

insolvency:  (A) Maker shall file a

voluntary bankruptcy or reorganization petition under the provisions of the

Federal Bankruptcy Act, any other bankruptcy or insolvency law or any other

similar statute applicable to Maker (“Bankruptcy Laws”), (B) Maker shall

consent to the filing of any bankruptcy or reorganization petition against

Maker under any Bankruptcy Law, (C) Maker shall file a petition or answer

or consent seeking relief or assisting in seeking relief for Maker in a

proceeding under any Bankruptcy Law or any answer admitting the material

allegations of a petition filed against Maker in such a proceeding, (D) Maker

shall make an assignment for the benefit of creditors, (E) Maker shall admit in

writing the inability to pay debts generally as they become due, (F) Maker

shall consent to the appointment of a receiver, trustee, or by the order of a

court of competent jurisdiction, a receiver, liquidator or trustee of Maker or

of any substantial part of the property of which shall not have been discharged

within a period of sixty (60) days, (G) by decree of such a court, Maker

be adjudicated bankrupt or insolvent or any substantial part of the property of

Maker shall have been sequestered and such decree shall have continued

undischarged and unstayed for a period of sixty (60) days after the entry

thereof, or (H) an involuntary bankruptcy 

 

 

reorganization petition

pursuant to any Bankruptcy Law shall be filed against Maker (and, in the case

of any such petition filed pursuant to any provision of a statute which

requires the approval of such petition by a court, shall be approved by such a

court) and shall not be dismissed within sixty (60) days after such filing.

 

6.             Acceleration Upon Event of

Default.  Upon the occurrence of an

Event of Default specified in Section 5 above, the then unpaid Principal Amount

of this Note shall, at the option of Holder, become immediately due and

payable, without further presentment, notice or demand for payment.

 

7.             Business, Trade or Profession.  This Note and the Obligation arise out of

the conduct by Maker of a business, trade or profession.

 

8.             Expenses of Enforcement.  Maker agrees to pay all reasonable costs and

expenses, including, without limitation, reasonable attorneys’ fees, as a court

of competent jurisdiction shall award, which Holder shall incur in connection

with any legal action or legal proceeding commenced for the collection of this

Note or the exercise, preservation or enforcement of Holder’s rights and

remedies thereunder.

 

9.             Cumulative Rights and Remedies.  All rights and remedies of Holder under this

Note shall be cumulative and not alternative and shall be in addition to all

rights and remedies available to Holder under applicable law.

 

10.           Governing Law.  This Note shall be governed by and

interpreted and construed in accordance with the laws of the State of

Nevada.  Any action or proceeding

arising under or pursuant to this Note shall be brought in Clark County,

Nevada.

 

IN WITNESS WHEREOF, Maker has caused this Note to be executed and

delivered at Henderson, Nevada as of the day and year first above written.

 

	

   

  	

  AMERICABILIA.COM, INC.,

  
	

   

  	

  a Florida corporation

  

 

	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

  Gary Moore, President

  	

   

  

 

2

 

	

  $125,000

  	

   

  	

   

  	

   

  	

  November

  30, 2001

  

 

SECURED PROMISSORY NOTE

 

11.           Obligation.  For value received, AMERICABILIA.COM, INC.,

a Florida corporation (“Maker”) promises to pay to the order of GARY MOORE

(“Holder”) the Principal Amount (as defined below) together with Interest (as

defined below) in the manner and upon the terms and conditions set forth herein

(the “Obligation”).

 

Amount and Payment.  The principal amount (“Principal Amount”) of

this Note is One Hundred Twenty Five Thousand Dollars ($125,000).  This Note shall bear interest on the unpaid

Principal Amount at the rate of ten percent (10%) per annum (“Interest”).  The Principal Amount and Interest shall be

all due and payable on December 31, 2002.

 

12.           Manner and Place of Payment.  Payments of the Principal Amount and

Interest shall be made in lawful money of the United States of America.  Principal is payable at 2700 Sunset Road,

Suite A-11, Las Vegas, Nevada 89120 or at such place as Holder may designate in

writing.

 

13.           Security.  The Obligation is guaranteed by Worldwide

Collectibles, Inc., the wholly owned subsidiary of Maker, and performance of

the guaranty is secured by a Security Agreement of even date herewith between

Worldwide Collectibles, Inc. as debtor and Gary Moore and Henry E. Cartwright

as secured parties.

 

14.           Prepayment.  Maker shall have the right, at its option,

to prepay this Note, in part or in full, at any time and from time to time,

prior to maturity, without penalty, bonus or charge.

 

15.           Events of Default.  The following shall each constitute an

“Event of Default” under this Note: (i) default in the payment when due of an

installment of Principal Amount and such default shall continue for a period of

five (5) days; (ii) an event of default under the Loan Agreement of even

date herewith; (iii) an event of default under the Security Agreement of

even date herewith; and (iv) any of the following events of bankruptcy or

insolvency:  (A) Maker shall file a

voluntary bankruptcy or reorganization petition under the provisions of the

Federal Bankruptcy Act, any other bankruptcy or insolvency law or any other

similar statute applicable to Maker (“Bankruptcy Laws”), (B) Maker shall

consent to the filing of any bankruptcy or reorganization petition against

Maker under any Bankruptcy Law, (C) Maker shall file a petition or answer

or consent seeking relief or assisting in seeking relief for Maker in a

proceeding under any Bankruptcy Law or any answer admitting the material

allegations of a petition filed against Maker in such a proceeding, (D) Maker

shall make an assignment for the benefit of creditors, (E) Maker shall admit in

writing the inability to pay debts generally as they become due, (F) Maker shall

consent to the appointment of a receiver, trustee, or by the order of a court

of competent jurisdiction, a receiver, liquidator or trustee of Maker or of any

substantial part of the property of which shall not have been discharged within

a period of sixty (60) days, (G) by decree of such a court, Maker be

adjudicated bankrupt or insolvent or any substantial part of the property of

Maker shall have been sequestered and such decree shall have continued

undischarged and unstayed for a period of sixty (60) days after the entry

thereof, or (H) an involuntary bankruptcy 

 

3

 

reorganization

petition pursuant to any Bankruptcy Law shall be filed against Maker (and, in

the case of any such petition filed pursuant to any provision of a statute

which requires the approval of such petition by a court, shall be approved by

such a court) and shall not be dismissed within sixty (60) days after such

filing.

 

16.           Acceleration Upon Event of Default.  Upon the occurrence of an Event of Default

specified in Section 5 above, the then unpaid Principal Amount of this Note

shall, at the option of Holder, become immediately due and payable, without

further presentment, notice or demand for payment.

 

17.           Business, Trade or Profession.  This Note and the Obligation arise out of

the conduct by Maker of a business, trade or profession.

 

18.           Expenses of Enforcement.  Maker agrees to pay all reasonable costs and

expenses, including, without limitation, reasonable attorneys’ fees, as a court

of competent jurisdiction shall award, which Holder shall incur in connection

with any legal action or legal proceeding commenced for the collection of this

Note or the exercise, preservation or enforcement of Holder’s rights and

remedies thereunder.

 

19.           Cumulative Rights and Remedies.  All rights and remedies of Holder under this

Note shall be cumulative and not alternative and shall be in addition to all

rights and remedies available to Holder under applicable law.

 

20.           Governing Law.  This Note shall be governed by and

interpreted and construed in accordance with the laws of the State of

Nevada.  Any action or proceeding

arising under or pursuant to this Note shall be brought in Clark County,

Nevada.

 

IN WITNESS WHEREOF, Maker has caused this Note to be executed and

delivered at Henderson, Nevada as of the day and year first above written.

 

	

   

  	

  AMERICABILIA.COM, INC.,

  
	

   

  	

  a Florida corporation

  

 

	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

  Gary Moore, President

  	

   

  

 

4

 

SECURITY

AGREEMENT

 

THIS SECURITY AGREEMENT (“Agreement”) is made and entered into this 30th

day of November, 2001 by and between WORLDWIDE COLLECTIBLES, INC., a Nevada

corporation (“Debtor”) and HENRY E. CARTWRIGHT and GARY MOORE

(collectively, “Secured Party”).

 

21.           Definitions.  As used in this Agreement:

 

(i)            “Collateral” means all assets of

Debtor, together with any and all hazard insurance policies thereon together

with all advance payments and any and all rights thereunder and proceeds

therefrom.

 

(ii)           “Indebtedness” means Debtor’s

obligations to Secured Party pursuant to the Secured Promissory Notes in favor

of each Secured Party of even date herewith.

 

(iii)          Terms defined in the Nevada Uniform

Commercial Code not otherwise defined in this Agreement are used in this

Agreement as defined in that Code on the date of this Agreement.

 

22.           Creation of Security Interest.  Debtor hereby grants to Secured Party a lien

and security interest in the Collateral to secure the payment of the

Indebtedness.

 

23.           Care of Collateral.  Debtor shall, unless otherwise specifically

agreed to in writing by Secured Party:

 

(i)            Properly care for and keep all

tangible Collateral in good condition and repair and make the Collateral

available for inspection by Secured Party and its authorized agents at all

reasonable times.

 

(ii)           Provide and maintain in force, at all

times, fire, casualty and public liability insurance and other types of

insurance as is customary for owners of like property.

 

(iii)          Appear in and defend any action or

proceeding, affecting or purporting to affect the Collateral or the security of

this Agreement, and pay all costs and expenses thereof and all costs and

expenses in any such action or proceeding in which Secured Party may appear,

but only if Secured Party is reasonably required to appear in and defend such

action or proceeding to protect its interest in the Collateral.

 

(iv)          Pay before delinquent all taxes and

assessments affecting the Collateral and/or the business of Debtor and all

costs or penalties thereon.

 

(v)           Not remove all the Collateral, or any

material part thereof, from its present location without providing prior

written notice to Secured Party.

 

5

 

(vi)          Not transfer voluntarily or permit any

involuntary transfer of the Collateral or any interest therein other than in

the ordinary course of business, by way of sale, creation of security interest,

hypothecation, levy or other judicial process without first obtaining the

written consent of Secured Party.

 

(vii)         Not (i) merge or consolidate where

Debtor is not the surviving entity; (ii) dissolve the business of Debtor;

(iii) pay or declare any dividends or distributions; or (iv) lend or

distribute any of Debtor’s property or assets, or incur any debts outside the ordinary

course of business.

 

24.           Warranties of Debtor.  Debtor warrants and covenants that:

 

(i)            Debtor will be, at the time of

acquisition of an interest in any Collateral, the lawful owner of such

Collateral, free of any interest, including without limitation all rights,

claims, liens, encumbrances or options whatsoever.

 

(ii)           All items of Collateral are located

in the State of Nevada.

 

(iii)          So long as any Indebtedness secured

hereby remain outstanding, the warranties contained herein shall have a

continuing effect.

 

25.           Default.  The occurrence of any of the following

events shall constitute a default hereunder:

 

(i)            Debtor shall default under the

Indebtedness or default under or breach any covenant or provision of this

Agreement.

 

(ii)           Any representation or warranty of

Debtor in this Agreement shall prove to have been false or misleading in any

material respect when made.

 

(iii)          Any receiver or trustee of all or a

substantial portion of the assets of Debtor shall be appointed, or Debtor shall

become insolvent or unable to pay debts as they mature, shall make a general

assignment for the benefit of creditors, voluntarily file under any bankruptcy

or similar law, any involuntary petition in bankruptcy shall be filed against

Debtor and not be dismissed within sixty (60) days, or any levies of

attachment, executions, tax assessments, or similar processes shall be issued

against the assets of Debtor and shall not be released within sixty (60) days

thereof.

 

26.           Remedies After Default.  In the event of any default, Secured Party

may exercise any and all of the rights and remedies of a secured party under

the Nevada Uniform Commercial Code or under any other applicable law or in

equity, and in this connection, Secured Party may, without limitation, upon

five days’ notice to Debtor, sent by registered mail, or certified mail, return

receipt requested, and without liability for any diminution in price which may

have occurred, sell all or part of the Collateral in such manner and for such

price as Secured Party may determine. 

At any bona fide public sale Secured Party shall be free to purchase all

or any part of the Collateral.

 

6

 

27.           Further Actions in Event of

Default.  If a default shall occur

and be continuing, the Secured Party may take any or all of the following

actions, at the same or different times:

 

(i)            declare any or all of the sums

representing the Indebtedness immediately due and payable; and

 

(ii)           with or without legal process enter

any premises where the Collateral is located and take possession of the

Collateral, and make disposition of the Collateral, subject to any and all

applicable provisions of law.

 

28.           Miscellaneous.

 

(i)            Waiver.  Acceptance of partial or delinquent payments

by Secured Party or the failure of Secured Party to exercise any right

hereunder shall not waive any obligation of Debtor, or right of Secured Party,

or modify this Agreement or waive any other similar default.

 

(ii)           Entire Agreement.  This Agreement contains the security

agreement between Secured Party and Debtor. 

There are no representations, agreements, arrangements or

understandings, oral or written, between the parties hereto, relating to the

subject matter contained in this Agreement, which are not fully expressed

herein.

 

(iii)          Additional Documents.  Debtor agrees to that Secured Party may file

a Form UCC-1 Financing Statement and any additional agreements, financing

statements or other documents (collectively, “Financing Statements”) reasonably

required by Secured Party to perfect the security interest granted hereby or to

otherwise effectuate the purpose of this Agreement.  Upon termination of the security interest granted hereby, Secured

Party shall promptly execute and deliver such documents as may reasonably be

requested by Debtor.

 

(iv)          Effect of Headings.  The headings of sections and subsections

herein are inserted for convenience only and shall not control or affect the

meaning or construction of any of the provisions of this Agreement.

 

(v)           Amendment.  This Agreement may only be amended by the

written consent of all of the parties to this Agreement at the time of such

amendment.

 

(vi)          Attorneys’ Fees.  Should any litigation be commenced between

the parties hereto or their assigns or successors in interest concerning any

provision of this Agreement or the rights and duties of any person in relation

thereto, the party to such other relief that may be granted, to a reasonable

sum as and for it or its attorneys’ fees in such litigation.

 

(vii)         Governing Law; Venue.  This Agreement shall be governed by, and

construed and enforced in accord­ance with, the internal laws of the State of

Nevada.  Any action or proceeding

brought under or pursuant to this agreement shall be brought in Clark County,

Nevada.

 

7

 

(viii)        Counterparts.  This Agreement may be executed in

counterparts, each of which shall be deemed to be an original, but such

counterparts, when taken together, shall constitute but one agreement.

 

(ix)           Notices.  Any notice required or permitted under this

Agreement shall be in writing and shall be deemed effective: (i) upon receipt

in the event of delivery by hand, including delivery made by private delivery

or overnight mail service where either the recipient or delivery agent executes

a written receipt or confirmation of delivery; or (ii) 48 hours after deposited

in the United States mail, registered or certified mail, return receipt

requested, postage prepaid.  Any notice

under this Agreement shall be addressed to the respective party as follows, or

to such other address as may be designated in writing from time to time:

 

	

  If to Debtor:

  	

  Worldwide Collectibles,

  Inc.

  150 Cassia Way 

  Suite 400 

  Henderson, Nevada 89014

  
	

   

  	

   

  
	

  If to Secured Party:

  	

  Henry E. Cartwright 

  13 Dovetail Circle 

  Henderson, Nevada

  89014  

  
	

   

  	

   

  
	

   

  	

  Gary Moore 2700 

  Sunset Road 

  Suite 11 

  Las Vegas, Nevada 89120

  

 

IN

WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day

and year first above written.

 

WORLDWIDE

COLLECTIBLES, INC.,

a

Nevada corporation 

 

	

  By: 

  	

   

  	

   

  
	

   

  	

  Keith Veltre, President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  HENRY E. CARTWRIGHT

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  GARY MOORE

  	

   

  

 

8

 

CONTINUING GUARANTY

 

The undersigned (“Guarantor”) hereby requests

GARY MOORE and HENRY E. CARTWRIGHT (“Lenders”) to accept Promissory Notes of

even date herewith (the “Notes”) from AMERICABILIA.COM. INC., a Florida

corporation (“americabilia”).

 

1.             Guarantor

hereby unconditionally guarantees and promises to pay to Lenders any and all

indebtedness of americabilia to Lenders as evidenced by the Notes.

 

2.             Either

before or after revocation hereof and in such manner, upon such terms and at

such times as he considers best and with or without notice to Guarantor,

Lenders may alter, compromise, accelerate, extend or change the time or manner

for the payment or performance of any indebtedness hereby guaranteed, release

or add any one or more guarantors or endorsers, accept additional or

substituted security therefor, or release or subordinate any security therefor.  No exercise or nonexercise by Lenders of any

right hereby given him, no dealing by Lenders with americabilia or any other

person, and no change, impairment or suspension of any right or remedy of

Lenders shall in any way affect any of the obligations of Guarantor hereunder

or any security furnished by Guarantor or give Guarantor any recourse against

Lenders.

 

3.             Guarantor

waives and agrees not to assert or take advantage of: (a) any right to require

Lenders to proceed against americabilia or any other person, firm or

corporation or to proceed against or exhaust any security held by it at any

time or to pursue any other remedy in his power; (b) the defense of the statute

of limitations in any action hereunder or for the collection of any

indebtedness or the performance of any obligation guaranteed hereby; (c) any

defense that may arise by reason of the incapacity, lack of authority, death or

disability of, or revocation hereof by, any other or others or the failure of

Lenders to file or enforce a claim against the estate (either in

administration, bankruptcy, or other proceeding) of any other or others; (d)

demand, protest and notice of any kind including, without limiting the

generality of the foregoing, notice of the existence, creation or incurring of

new or additional indebtedness or of any action or non–action on the part

of americabilia, Lenders, any endorser, creditor of americabilia or Guarantor

under this or any other instrument, or any other person whomsoever, in

connection with any obligation or evidence of indebtedness held by Lenders as

collateral or in connection with any indebtedness or obligation hereby

guaranteed; (e) any defense based upon an election of remedies by Lenders,

including without limitation, an election to proceed by nonjudicial rather than

judicial foreclosure, which election destroys or otherwise impairs subrogation

rights of Guarantor or the right of Guarantor to proceed against americabilia

for reimbursement, or both, if any, including, without limitation, the

impairment of subrogation rights arising by virtue of statute; (f) any defense

or right based upon the fair value deficiency protections and provisions of

applicable law; and (g) any suretyship defenses available to Guarantor under

applicable law.

 

4.             Guarantor,

by execution hereof, represents to Lenders that the relationship between

Guarantor and americabilia is such that Guarantor has access to all relevant

facts and information concerning the indebtedness and americabilia and that

Lenders can rely upon Guarantor’s having 

 

9

 

such access.  Guarantor waives

and agrees not to assert any duty on the part of Lenders to disclose to

Guarantor any facts that Lenders may now or hereafter know about americabilia,

regardless of whether Lenders has reason to believe that any such facts

materially increase the risk beyond that which Guarantor intends to assume, or

has reason to believe that such facts are unknown to Guarantor, or has a

reasonable opportunity to communicate such facts to Guarantor.  Guarantor is fully responsible for being and

keeping informed of the financial condition of americabilia and all

circumstances bearing on the final risk of non–payment of the

indebtedness guaranteed hereby.

 

5.             Until

the Notes has been paid in full, Guarantor shall have no right of subrogation

and waives any right to enforce any remedy which Lenders now has or may

hereafter have against americabilia and any benefit of and any right to

participate in, any security now or hereafter held by Lenders.

 

6.             The

amount of Guarantor’s liability and all rights, powers and remedies of Lenders

hereunder and under any other agreement now or at any time hereafter in force

between Lenders and Guarantor shall be cumulative and not alternative, and such

rights, powers and remedies shall be in addition to all rights, powers and

remedies given to Lenders by law.

 

7.             Guarantor’s

obligations hereunder are independent of the obligations of americabilia and,

in the event of any default hereunder, a separate action or actions may be

brought and prosecuted against Guarantor whether action is brought against

americabilia or whether americabilia is joined in any such action or

actions.  Lenders may maintain

successive actions for other defaults. 

Lenders’ rights hereunder shall not be exhausted by their exercise of

any of their rights or remedies or by any such action or by any number of

successive actions until and unless all indebtedness and obligations hereby

guaranteed have been paid and fully performed.

 

8.             Guarantor

agrees to pay to Lenders without demand reasonable attorneys’ fees and all

costs and other expenses which Lenders expend or incur in collecting or

compromising any indebtedness of americabilia or in enforcing this guaranty

against Guarantor including, without limitation, reasonable attorneys’ fees,

costs and other such expenses incurred in any bankruptcy proceeding.  Guarantor warrants and represents that it is

fully empowered to execute this guaranty.

 

9.             This

guaranty shall bind Guarantor’s successors and assigns.  No delegation or assignment of this guaranty

by Guarantor shall be of any force or effect or release Guarantor from any

obligation hereunder.

 

10.           No

provision of this guaranty or right of Lenders hereunder can be waived nor can

Guarantor be released from its obligations hereunder except by a writing duly

executed by Lenders.  Should any one or

more provisions of this guaranty be determined to be invalid  or unenforceable, the remaining provisions

hereof shall be deemed severable therefrom and shall remain in full force and

effect.

 

11.           This

guaranty shall be governed by, and construed and enforced in accord­ance with,

the internal laws of the State of Nevada. 

All actions or proceedings with respect to this guaranty may be

instituted in state or federal courts located in Clark County, Nevada.  Each party consents to the jurisdiction of

such courts.

 

10

 

12.           Except

as provided in any other written agreement now or at any time hereafter in

force between Lenders and Guarantor, this Continuing Guaranty shall constitute

the entire agreement of Guarantor with Lenders with respect to the subject

matter hereof and no representation, understanding, promise or condition

concerning the subject matter hereof shall be binding upon Lenders unless

expressed herein or therein.  Any notice

to Guarantor shall be deemed to have been duly given when delivered personally

or five (5) days after being mailed, postage prepaid, to 150 Cassia Way, Suite

400, Henderson, Nevada 89014 or to such other address(es) as Guarantor may from

time to time designate by giving written notice to Lenders.

 

Executed by Guarantor on November 30, 2001.

 

	

   

  	

  WORLDWIDE COLLECTIBLES, INC.,

  
	

   

  	

  a Nevada corporation

  

 

	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Keith Veltre, President

  	

   

  

 

11

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