Document:

Exhibit 4.4

 

AGREEMENT REGARDING LOANS,
STOCKS AND WARRANTS

 

This Agreement Regarding
Loans Stocks And Warrants (“Agreement”) is entered into by and between Availent
Financial, Inc., a Delaware Corporation with its principal places of business
located at 2720 Stemmons Freeway, South Tower, Suite 600, Dallas, Texas 75207,
the surviving corporation resulting from a merger between Availent Financial,
Inc., (“Availent Financial”) a Texas Corporation, and SeaCrest Industries, Inc.
(“Seacrest”), a Delaware Corporation which was finalized on December 4, 2002,
(“Availent”) and Bergstrom Investment Management, L.L.C. (“Bergstrom”), a
Delaware Limited Liability Company whose address is 714 Roger Avenue,
Kenilworth, II 60043 as follows:

 

RECITALS:

 

WHEREAS, Availent Financial,
Availent and Bergstrom have heretofore entered into certain loan agreements and
amendments to such loan agreements pursuant to which Bergstrom has lent to
Availent Financial or Availent during the past twelve month period the sum of
One Million Three Hundred Fifty Five Thousand Dollars ($1,355,000); and,

 

WHEREAS, at the time the
initial loan was made by Bergstrom to Availent Financial on or about February
26, 2002, in the original principal amount of Five Hundred Thousand Dollars
($500,000), Availent Financial and/or its shareholders had purchased the
controlling shares of SeaCrest and was negotiating a merger agreement with
Seacrest which would result in Seacrest becoming the surviving shareholder and
with the intention, immediately following the merger, of Seacrest changing its
name to Availent Financial, Inc.; and,

 

WHEREAS, in consideration
for such loans by Bergstrom, Availent Financial and/or Availent has delivered
to Bergstrom certain promissory notes and has agreed to pay certain amounts of interest,
commitment fees, extension fees and other charges and expenses and has further
agreed to issue and has issued, certain shares of Seacrest’s common stock and
warrants for Bergstrom to purchase additional shares of Seacrest common stock
at certain prices as described in the various loan agreements and warrants;
and,

 

WHEREAS, as security for the
repayment of a certain promissory note dated November 12, 2002, in the original
principal amount of $280,000, which note was renewed, modified and extended by
a promissory note dated December 27, 2002, in the principal amount of $780,000,
Bergstrom received Limited Guaranty Agreements from two of the principals and
officers of Availent, Patrick A. McGeeney (“McGeeney”) and Michael L. Banes
(“Banes”), pursuant to which each of such individuals guaranteed payment of the
note to the extent of the Shares of Common Stock of Availent that each of such
persons own; and,

 

WHEREAS, the merger between
Seacrest and Availent Financial became effective on December 4, 2002, and
Seacrest’s name was immediately changed to Availent; and,

 

1

 

WHEREAS, Availent has taken
the necessary steps to effectuate a reverse split in its authorized and
outstanding shares of stock which had the effect of reducing each ten shares of
its common stock to one share, i.e., a 10 to 1 split (“Reverse Split”), which
Reverse Split became effective January 7, 2003; and,

 

WHEREAS, Availent is in the
process of registering certain shares of its common stock with the Securities
And Exchange Commission (“S.E.C.”) for sale to the public and is in the process
of becoming listed with the National Association of Securities Dealers (“NASD”)
in order to have a listing under which the shares of registered stock can be
sold; and,

 

WHEREAS, the price at which
Availent initially anticipated selling its stock to the public pursuant to a
registration with the S.E.C. and a listing with NASD has changed following the
decision to effectuate a Reverse Split of its stock and as a result of other
circumstances; and,

 

WHEREAS, Availent is in the
process of negotiating additional financing with which to provide working
capital prior to the receipts of proceeds from a public offering of its shares
of stock and to obtain funds with which to repay its obligations to Bergstrom;
and,

 

WHEREAS, certain issues have
arisen during the negotiations with prospective third party lenders which
involve the need for Availent to restructure certain terms of its agreements
with Bergstrom; and,

 

WHEREAS, in view of the
various changes as described above during the period of time that Bergstrom has
been issued shares of stock and warrants and has received commitments from
Availent or its predecessor to issue shares of stock and warrants and the need
to amend or modify certain terms of the loan agreements, promissory notes,
warrants and limited personal guaranties of McGeeney and Banes as described
above, the parties have agreed to amend or modify the agreements and documents
executed pursuant thereto as set forth in this Agreement.

 

Now therefore, in
consideration of the promises, covenants and considerations hereinafter
expressed, the parties hereto agree as follows:

 

1.  SHARES OF AVAILENT COMMON STOCK. No later than the date hereof,
Bergstrom shall return any and all certificates of Seacrest common stock
heretofore issued and Availent shall cause to be issued to Bergstrom
certificates representing the shares of Availent common stock Availent has
heretofore agreed to issue to Bergstrom, all as is summarized in that certain
Agreement Regarding Stocks And Warrants entered into by and between the parties
and dated December 27, 2002, and more specifically referred to in Exhibit “A”
to such agreement.

 

2.  WARRANTS TO PURCHASE AVAILENT COMMON STOCK. In lieu of, and in
substitution

 

2

 

of, any and all Warrants to purchase the Common Stock of Availent or
its predecessor SeaCrest, Availent agrees to issue as of the date of closing
hereof four (4) Common Stock Warrants to purchase 100,000, 31,100, 360,000 and
100,000 or a total of 590,100 shares of the common stock of Availent for an
exercise price of $1.00 per share at any time during a thirty six (36) month
period commencing on the date shares of Availent are registered with the
Securities And Exchange Commission (“S.E.C.”) for sale in public markets with
such Common Stock Warrant to contain the terms as set forth in the Common Stock
Warrant attached hereto as EXHIBIT “A” and incorporated herein for all
purposes. Notwithstanding the foregoing, in the event of a Change of Control of
Availent prior to a registration with the S.E.C., Bergstrom shall be entitled
to immediately exercise all or any portion of such Warrants as of, or at any
time following, the effective date of a Change of Control. For the purpose of
this Agreement, “Change of Control” shall be deemed to occur in the event
McGeeney and Banes sell all, or substantially all, of their shares of common
stock in Availent, or, a sale of shares of common stock by any combination of
shareholders results in the sale of more than fifty percent (50%) of the issued
and outstanding shares of Availent’s common stock.

 

3.  EXTENSION OF MATURITY DATES OF PROMISSORY NOTES. As concerns the
balances owed by Availent on all the outstanding promissory notes executed by
Availent as Maker and payable to Bergstrom as principal, i.e., a) one
promissory note in the original principal amount of $500,000 dated February 26,
2002, which note was renewed and extended on December 27, 2002, with a new
maturity date of April 30, 2003, subject to certain rights of Availent to
extend the maturity date to June 30, 2003; b) one promissory note in the
original principal amount of $75,000 dated October 15,2002, which note was
renewed and extended on December 27, 2002, with a new maturity date of April
30, 2003, subject to certain rights of Availent to extend the maturity date to
June 30, 2003; and, c) one promissory note in the original principal amount of
$280,000, dated November 12, 2003, which note was renewed, modified and
extended through Availent’s execution of a Renewal, Extension And Modified
Promissory Note in the principal amount of $780,000 dated December 27, 2002,
with a maturity date of April 30,2003, subject to certain rights of Availent to
extend the maturity date to June 30, 2003, Bergstrom agrees to extend the
Maturity Dates of the respective promissory notes from April 30,2003, until
June 30,2003, conditioned upon and in consideration of a prepayment by March
2,2003, of all interest on the respective promissory notes from the existing
maturity dates of April 30, 2003 to June 30, 2003. Prepayment of interest must
be received by wire transfer to an account so designated by Bergstrom at North
Shore Community Bank on or before March 2, 2003. If such payment is not timely
made, all of the above notes are due and payable as of April, 30, 2003.

 

4.  PREPAYMENT OBLIGATIONS. Availent agrees that, as Maker of the
respective Promissory Notes held by Bergstrom and described herein, Availent
shall prepay the outstanding balances of the Promissory Notes if, prior to the
original Maturity Date of April 30, 2003, or, if the Maturity Date of the
respective Notes are extended to June 30, 2003, prior to such extended Maturity
Date, Availent receives funding from any third party source, or sources, in an
aggregate amount of $5,000,000 or more, including the receipt of

 

3

 

proceeds from a sale of Availent’s common stock following a
registration of such stock with the S.E.C. for sale in the public markets. In
the event of the receipt of such funds from either of such sources, within five
(5) business days from the receipt of the funds, Availent shall prepay the
outstanding balances of the respective Promissory Notes held by Bergstrom;
however, in the event of such prepayment, Availent shall receive credit for any
and all amounts of interest Availent may have prepaid for the terms of the
respective Notes. The obligation for notification to Bergstrom of funding receipts
shall be with the Chief Financial Officer of Availent and shall be within three
(3) business days of funding receipt. Payment qualifications to Bergstrom are
as follows regarding funds from debt or equity financing:

 

Funds received of at least
$1,000,000, pay Bergstrom $100,000.

Funds received of at least
$2,000,000, pay Bergstrom $200,000.

Funds received of at least
$3,000,000, pay Bergstrom $300,000.

Funds received of at least
$4,000,000, pay Bergstrom $400,000.

Funds received of at least
$5,000,000, pay Bergstrom all obligations of principal and interest due.

 

5.  BERGSTROM APPROVAL RIGHTS CONFIRMED. Availent hereby specifically
ratifies and confirms the following provision of the Loan Agreement entered
into between Availent and Bergstrom dated November 12, 2002, unless and until
the outstanding balances of the Promissory Notes held by Bergstrom are paid in
full, in which event the following agreement shall be null and void:

 

“Availent will not refuse to
close the proposed BLADEX (now EuroPacific Asset Management) transaction or
accept an alternative financing or collateral source for such financing without
Bergstrom’s written approval”

 

6.  BERGSTROM CONFIRMATION OF SUN AMERICA COLLATERAL. Bergstrom’s
obligations pursuant to the terms of this Agreement are contingent upon and
conditioned upon Bergstrom’s reasonable confirmation as to the existence and
continued security provided by the Sun America Collateral Assignment by Michele
Krajicek McGeeney of the Sun America Annuity Contract No. P15A1021155, which
was assigned by Michele Krajicek McGeeney pursuant to a Limited Guaranty Of
Michele Krajicek McGeeney dated February 26, 2002, which Limited Guaranty and
Collateral Assignment executed pursuant to the terms thereof were provided to
further secure payment of a promissory note dated February 26, 2002 in the
original principal amount of $500,000 with a Maturity Date of December 31,
2002, which Note has been renewed and extended pursuant to a Renewed And
Extended Promissory Note dated December 27, 2002 with a Maturity Date of April
30, 2003.

 

7.  AGREEMENT TO REGISTER SHARES. Availent agrees that the shares of
its common stock in the amount of 100,000 shares currently held by Bergstrom
which are the shares resulting of the Reverse Split of the shares of Availent
Common Stock which were originally 250,000 shares of SeaCrest common stock
transferred to Bergstrom as partial

 

4

 

consideration for Bergstrom
lending Availent Financial the sum of $500,000 pursuant to the Loan Agreement
between such parties dated February 26, 2002, shall be included in any
registration of Availent’s shares with the S.E.C. for sale to the public to the
extent necessary to ensure that the shares are freely tradeable by the holder
thereof in the public markets in which other shares of Availent’s common stock
are traded.

 

8.  SUBSTITUTION OF MCGEENEY GUARANTY FOR RELEASE OF LIMITED
GUARANTIES AND COLLATERAL. In consideration of the promises and considerations
herein contained and in order to facilitate Availent’s negotiations for
additional financing from third party sources, upon delivery of McGeeney’s
personal Guaranty in a form reasonably acceptable to Bergstrom, Bergstrom
agrees to release as of the closing hereof the Limited Personal Guarantys
executed by McGeeney and Banes and agrees to release any and all rights and
claims Bergstrom may hold pursuant to the terms of the Stock Pledge Agreements
executed by McGeeney and Banes as of November 12, 2002, as amended by the
Amended Stock Pledge Agreements dated December 27, 2002, and, both parties
agree to instruct the Escrow Agent, Dewey Leggett (“Leggett”) to return
possession to the Limited Guarantors of the certificates representing the
shares of Availent common stock owned by the respective Limited Guarantors
along with any stock powers or other documents authorizing the transfer of
ownership of such shares. Conditioned upon the return of such shares to the
respective Limited Guarantors, both parties agree to release and discharge
Leggett, as Escrow Agent, from any further liability or responsibility under
the Escrow Agreement. 

 

9.  CLOSING. Closing of this Agreement shall occur on February
        , 2003, in Availent’s offices at a
time mutually agreeable to the parties. At the Closing: 

 

A.                                   Availent shall deliver to Bergstrom the
following:

 

(i)            Common Stock Warrants for the purchase a
total of 590,100 shares of Availent Common Stock in substantially the form
attached hereto as Exhibit “A”;

 

(ii)           Personal Guaranty of McGeeney in a form reasonably acceptable to
Bergstrom;

 

(iii)          Written Instructions to the Escrow Agent to deliver to Availent the
shares of stock pledged by the Limited Guarantors, McGeeney and Banes in
substantially the form attached hereto as Exhibit “B”; and,

 

(iv)          Release of the Escrow Agent, Leggett in the substantially the form
attached hereto as Exhibit “C”; and,

 

(v)           Payment to Bergstrom of his actual, reasonable and necessary travel,
legal and miscellaneous expenses up to a maximum amount of $4,000.00.

 

B.                                     Bergstrom shall deliver to Availent the
following:

 

5

 

(i)            Original Common Stock Warrants heretofore
delivered by Availent or Availent Financial marked “Canceled”;

 

(ii)           Limited Guaranty Agreements, Amended Limited Guaranty Agreements and
Original Stock Pledge Agreements and Amended Stock Pledge Agreements delivered
to Bergstrom by the Limited Guarantors, McGeeney and Banes, marked “Released”;

 

(iii)          Written Instructions to the Escrow Agent to deliver to Availent the
shares of stock pledged by the Limited Guarantors, McGeeney and Banes in
substantially the form attached hereto as Exhibit “B”; and,

 

(iv)          Release of the Escrow Agent, Leggett in the substantially the form
attached hereto as Exhibit “C”.

 

10.  RATIFICATION. Other than to the extent of
the provisions contained in this Agreement which conflict with the provisions
of any Loan Agreements or Amendments to Loan Agreements, heretofore entered
into between the parties or any of the documents, including, but not limited to,
promissory notes and amendments and modifications thereto and any common stock
warrants, limited guaranties and stock pledge agreements, the provisions of
such documents are hereby ratified and confirmed.

 

11.  WAIVER. Availent for itself, its successors
and assigns; Patrick A. McGeeney (“McGeeney”); Michele Krajicek McGeeney
(“Michele McGeeney”), and Michael L. Banes (“Banes”), do hereby waive, release,
and discharge Bergstrom and its agents, employees, officers, directors, and
attorneys (collectively, the “Released Parties”) from any and all of
Bergstrom’s duties, obligations, and liabilities arising under, based upon or
associated with, directly or indirectly, the Original Promissory Note (as
hereby amended), Guarantys, Loan Agreement, and any other Loan documents,
existing as of the date of this Agreement, and hereby waive any and all claims
and causes of action of any kind or character, arising under, based upon, or
associated with, directly or indirectly, any Loan Agreements and any amendments
thereto or any documents executed pursuant thereto or in connection therewith,
or the acts, actions, or omissions of the Released Parties in connection
therewith, existing as of the date hereof, whether known or unknown, asserted
or unasserted, equitable or at law, arising under or pursuant to common or
statutory law, rules, or regulations and agree that the foregoing waiver,
release, and discharge was an inducement for Bergstrom to enter into this
Agreement.

 

6

 

This Amendment is executed
on the          day of February, 2003.

 

	
   

  	
  BERGSTROM INVESTMENT
  MANAGEMENT, L.L.C.,

  a Delaware Limited Liability Company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Kelley A. Bergstrom

  President

  
	
   

  	
   

  	
   

  
	
   

  	
  AVAILENT FINANCIAL, INC.,

  a Delaware Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Patrick A. McGeeney

  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Patrick A. McGeeney,
  Individually

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Michael L. Banes,
  Individually

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Michele Krajicek McGeeney,
  Individually

  

 

7Exhibit 4.5

 

LOAN AGREEMENT

 

This Loan Agreement
(“Agreement”) is entered into by and between AVAILENT FINANCIAL, INC.
(“Availent”), a Delaware Corporation with its principal place of business
located at 2720 Stemmons Tower, South Tower, Suite 600, Dallas, Texas 75207,
and BOBBY LUTZ (“Lutz”), an individual whose address is 17300 Dallas Parkway,
Suite 3050, Dallas, Texas 75248.

 

RECITALS:

 

WHEREAS, Availent desires to
borrow funds from Lutz in the amount of Five Hundred Thousand Dollars
($500,000) and,

 

WHEREAS, pursuant to the
terms of this Agreement, Lutz has agreed to lend to Availent the sum of Five
Hundred Thousand Dollars ($500,000); and,

 

WHEREAS, Availent has
completed a reverse merger agreement with a publicly traded company, SeaCrest
Industries, Inc. (“SeaCrest”), a Delaware Company; and,

 

WHEREAS, Availent intends to
issue additional shares of stock to be registered with the Securities and
Exchange Commission (“S.E.C.”) for trading in public markets through filing
with the S.E.C. an SB-2 registration.

 

Now therefore, in
consideration of the promises, payments, covenants, representations and
warranties hereinafter set forth, the parties hereto agree as follows:

 

1. LOAN AMOUNT. Pursuant to
the terms of this Agreement and satisfaction of the conditions set forth below,
Lutz agrees to fund Availent the sum of FIVE HUNDRED THOUSAND AND NO/100
DOLLARS ($500,000.00) as follows:

 

a)                                      $250,000 at closing, and

 

b)                                     $125,000 three (3) business days after
Availent’s common stock begins trading, and

 

c)                                      $125,000 three (3) business days after
Availent files an SB-2 registration statement with the S.E.C.

 

2. CONSIDERATION. In
consideration for such loan,

 

•                  Availent agrees to execute at closing a
promissory note (“note”) bearing interest at the rate of fifteen percent (15%)
per annum which note shall be due and payable through monthly “interest only”
payments in advance, with the first of such payments being due and payable on
the date of the promissory note and a payment of “interest

 

1

 

only” being due and payable
on the first day of each successive month following the date of the note and
all principal and accrued and unpaid interest being due and payable in currency
of the United States of America on August          ,
2003 (“Maturity Date”). All accrued and payable interest shall be calculated on
the principle balance of the note outstanding based on a 365 day year in
accordance with the funding schedule as further described in Section 1 above.
The note shall be prepayable without penalty and contain usual and customary
language concerning default, post default interest, attorney’s fees and court
costs.  The note shall be payable by
wire transfer to an account designated in writing by Lutz or such other method
of payment, address or account as Lutz shall indicate through notice to
Availent in the manner provided in paragraph 9 below.

 

•                  As additional consideration for the loan,
Availent shall, at closing, issue to Lutz Warrants to purchase 100,000 shares
of Availent common stock with all such Warrants to be exercised no later than
sixty (60) months following the execution date of this agreement. All the
Warrants may be exercised at a price equal to ONE DOLLAR ($1.00) per share. In
the event that the delayed fundings as further described in Section 1 above do
not occur by reason of Lutz, all warrants granted as described herein are
forfeited. In the event that the delayed fundings as further described in
Section 1 above do not occur by reason of Availent, all warrants granted
as described herein are retained by Lutz.

 

3. COLLATERAL.

 

•                  As collateral to secure repayment of the
loan, Availent’s President, Patrick A. McGeeney (“McGeeney”), and Availent’s
Vice President, Michael L. Banes (“Banes”), shall personally guarantee
Availent’s obligations under this Loan Agreement and the note executed by
Availent pursuant to the terms hereof to the extent, and only to the extent of
their ownership interest in Availent. Such guaranty agreements shall be in
forms with terms reasonably acceptable to Lutz which shall specifically contain
terms or provisions obligating McGeeney and Banes to pledge 100% of their
respective shares of Availent stock pursuant to stock pledge agreements and to
deposit the original certificates representing ownership of such shares with a
mutually agreeable Escrow Agent pursuant to the terms of an escrow agreement
providing instructions to the Escrow Agent in the event of a default in
Availent’s obligations pursuant to the terms of this Loan Agreement or the note.
The collateral of McGeeney and Banes (except for 1,000,000 shares) shall be
released by Lutz unconditionally on the date of the achievement of a Closing
Price of the Availent publicly traded stock as determined by a mutually
agreeable market maker. If any five (5) consecutive day average closing market
price for the publicly traded common stock falls to or below sixty cents
($.60), McGeeney and Banes will pledge additional shares to guarantee that Lutz
is one hundred twenty percent (120%) collateralized on the principle obligation
of this agreement. The balance of the collateral (1,000,000 shares) of the
McGeeney and Banes shall be released by Lutz unconditionally on the date of
full repayment of the principal and all accrued and

 

2

 

unpaid interest as defined
in the Promissory Note.

 

4. REPRESENTATIONS AND
WARRANTIES. Availent represents and warrants that the shares of stock owned by
McGeeney, Banes and the Consultants covered by the stock pledge agreements
referred to in paragraph 3 above consist of the following shares:

 

	
  OWNER

  	
   

  	
  SHARES

  	
   

  	
  OWNERSHIP PERCENTAGE

  	
   

  
	
  McGeeney

  	
   

  	
  1,684,951

  	
   

  	
  18.536

  	
  %

  
	
  Banes

  	
   

  	
  1,684,951

  	
   

  	
  18.536

  	
  %

  

 

5. COVENANTS. Availent
covenants and agrees as follows:

 

A.                                   Availent covenants and agrees with Lutz that
the Warrants as described in Paragraph 2 above shall be eligible for
registration and sale at the option of Lutz in an SB-2 registration with the
S.E.C.

 

B.                                     Availent further covenants and agrees with
Lutz that if the stock price as determined by the closing market price for
Availent’s publically traded stock as established by a mutually agreeable
market maker falls to or below sixty cents ($.60) for three (3) consecutive
trading days, at the option of Lutz, the collateral per Paragraph 3 above can
be liquidated to and only to the extent of the outstanding and unpaid principle
and accrued interest on the note. However, the Salvatore Russo / George Malina
(the “Consultants”) retain the right of first refusal to purchase for the
established fair market value as determined by the above mentioned the closing
market price the number of shares of stock to be liquidated by Lutz.

 

C.                                     Availent further covenants and agrees with
Lutz that if the stock price as determined by the closing market price for Availent’s
publically traded stock as established by a mutually agreeable market maker
falls to or below fifty cents ($.50) an any trading day, at the option of Lutz,
the collateral per Paragraph 3 above can be liquidated to and only to the
extent of the outstanding and unpaid principle and accrued interest on the
note. However, the Consultants retain the right of first refusal to purchase
for the established fair market value as determined by the above mentioned the
closing market price the number of shares of stock to be liquidated by Lutz.

 

D.                                    Availent further covenants and agrees with
Lutz that none of the loaned funds will be used to pay debt, dividends, or
direct distributions to insiders (owners of 5% or more of Availent’s common
stock) other than in the ordinary course of business unless authorized in
writing by Lutz.

 

E.                                      Availent further covenants and agrees with
Lutz that no stock owned by or available to insiders (owners of 5% or more of
Availent’s common stock)

 

3

 

will be sold until full
satisfaction and repayment of all principle and accrued interest of the
obligation as described in Paragraphs 1 and 2 above.

 

F.                                      Availent further covenants and agrees with
Lutz that should either additional debt or equity funding totaling $3,500,000
be received by Availent from one or many sources, immediate repayment of all
obligations due Lutz as described in Paragraphs 1 and 2 above are required.

 

G.                                     Availent further covenants and agrees with
Lutz that should Availent obtain and receive any additional debt or equity
financing above $500,000 after closing and funding of the closing commitment by
Lutz as further described in Section 1 above, fifteen percent (15%) of such
funding received will be applied to the remaining un-funded obligation of Lutz
per Section 1(c) above, if any, then to applied to the remaining un-funded
obligation of Lutz per Section 1(b) above, if any, then used to satisfy any and
all outstanding and unpaid principle of the Lutz funding as herein described.

 

H.                                    Availent further covenants and agrees with
Lutz that the currently existing Key Man Life Insurance Policies on McGeeney
and Banes in the face amount of $1,000,000 per individual be assigned to Lutz
to the extent of the outstanding and unpaid principle and accrued interest of
the note until complete satisfaction of the obligation as further described
herein.

 

I.                                         Availent further covenants and agrees with
Lutz that if any common stock warrants or options are granted or stock sold
below the exercise price of the Warrants of one dollar ($1.00) per share as
described herein during term of the Warrants of sixty (60) months or as long as
the Warrants remain unexercised during the term, the Lutz Warrant exercise
price will be adjusted to equal the grant or sale price as described above.

 

J.                                        Request for Registration.

 

(a)
If the Corporation shall receive at any time after an Event of Default, a
written request (each, a “REGISTRATION REQUEST”) from the Holder that the
Corporation file a registration statement under the Securities Act of 1933, as
amended (the “SECURITIES ACT”), covering the registration of the Pledged
Securities, then the Corporation shall use all commercially reasonable efforts
to effect, and in any event within sixty (60) days of the receipt of the
Registration Request, the registration under the Securities Act of any and all
Pledged Securities which the Holder requests to be registered. For purposes of
this Agreement, the terms “register,” “registered,” and “registration” shall
mean and refer to a registration effected by preparing and filing a
registration statement or similar document in compliance with the Securities
Act, and the declaration or ordering of effectiveness of such registration
statement or document.

 

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(b)
If the Holder intends to distribute the Pledged Securities covered by the
Registration Request by means of an underwriting, the Holder shall so advise
the Corporation in the Registration Request. The underwriter shall be selected
by the Corporation and shall be reasonably acceptable to the Holder. In such
event, the right of the Holder to include any or all Pledged Securities in such
registration shall be conditioned upon the participation of the Holder in such
underwriting and the inclusion of the Pledged Securities in the underwriting
(unless otherwise mutually agreed by the Corporation and the Holder) to the
extent provided herein. The Holder shall enter into an underwriting agreement
in customary form with the underwriter or underwriters selected for such
underwriting. If the underwriter advises the Corporation in writing that
marketing factors require a limitation of the number of Pledged Shares to be
underwritten, then the Corporation shall so advise the Holder, and the number
of Pledged Securities that may be included in the underwriting shall be reduced
accordingly or excluded as appropriate; provided, however, that the number of
Pledged Securities to be included in such underwriting shall not be reduced or
excluded unless and until all other securities are first entirely excluded from
the underwriting.

 

(c)
If the Corporation shall furnish to the Holder a certificate signed by the
Chief Executive Officer of the Corporation stating that in the good faith
judgment of the board of directors of the Corporation, it would be seriously
detrimental to the Corporation and the stockholders of the Corporation for such
registration statement to be filed and it is therefore essential to defer the
filing of such registration statement, the Corporation shall have the right to
defer taking action with respect to such filing for a period of not more than
120 days after receipt of the Registration Request; provided, however that the
Corporation may not utilize this right more than once in any twelve - month
period.

 

(d)
The Corporation shall not be obligated to effect, or to take any action to
effect:

 

(i)
After the Corporation has effected one (1) registration and such registration
has been declared or ordered effective;

 

(ii)
During the period starting with the date sixty (60) days prior to the good
faith estimate of the Corporation of the date of filing of, and ending on a
date one hundred eighty (180) days after the effective date of, a registration;
provided, however, that the Corporation shall be actively employing in good
faith all commercially reasonable efforts to cause such registration statement
to become effective; or

 

5

 

(iii)
If the Holder proposes to dispose of Pledged Securities that may be immediately
registered on an effective registration statement pursuant to a Registration
Request.

 

Obligations
of the Corporation. Whenever required to effect the registration of any Pledged
Securities, the Corporation shall use all commercially reasonable efforts to:

 

(a)
Prepare and file with the Securities and Exchange Commission (the “SEC”) a
registration statement with respect to such Pledged Securities and use all
commercially reasonable efforts to cause such registration statement to become
effective, and, upon the request of the Holder, keep such registration
statement effective for a period of up to one hundred twenty (120) days or
until the distribution contemplated in the Registration Statement has been
completed; provided, however, that (i) such 120 day period shall be extended
for a period of time equal to the period the Holder refrains from selling any
securities included in such registration at the request(s) of an underwriter or
underwriters of the Corporation and (ii) in the case of any registration of
Pledged Securities on any registration statement which are intended to be
offered on a continuous or delayed basis, such 120 day period shall be
extended, if necessary, to keep the registration statement effective until all
such Pledged Securities are sold; provided, however, that Rule 415, or any
successor rule, under the Act, permits an offering on a continuous or delayed
basis, and that applicable rules under the Act governing the obligation to file
a post effective amendment permit, in lieu of filing a post-effective amendment
which (I) includes any prospectus required by Section 19(a)(3) of the Act or
(II) reflects facts or events representing a material or fundamental change in
the information set forth in the registration statement, the incorporation by
reference of information required to be included in (I) and (II) above to be
contained in periodic reports filed pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended (the “EXCHANGE ACT”) in the registration
statement.

 

(b)
Prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by
such registration statement.

 

(c)
Furnish to the Holder such number of copies of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities
Act, and such other documents as the Holder may reasonably request in order to
facilitate the disposition of Pledged Securities owned by the Holder.

 

6

 

(d)
Use all commercially reasonable efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue Sky
laws of such jurisdictions as shall be reasonably requested by the Holder;
provided, however, that the Corporation shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general
consent to service of process in any such states or jurisdictions, except as
may be required by the Act.

 

(e)
In the event of any underwritten public offering, enter into and perform the
obligations of the Corporation under the underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. If the Holder
is participating in such underwriting, the Holder shall also enter into and
perform the obligations of the Holder under such agreement.

 

(f)
Notify the Holder at any time when a prospectus relating to any registration
statement covering any Pledged Securities is required to be delivered under the
Securities Act of the happening of any event as a result of which the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing, and then amend or
supplement such registration statement and prospectus in order to correct any
such misstatement or omission as soon as commercially reasonable.

 

(g)
Cause all such Pledged Securities registered pursuant to any such registration
statement to be listed on each securities exchange or national quotation
system, if any, on which similar securities issued by the Corporation are then
listed.

 

(h)
Provide a transfer agent and registrar for all Pledged Securities registered
pursuant to any such registration statement and a CUSIP number for all such
Pledged Securities, in each case not later than the effective date of such
registration.

 

(i)
Use all commercially reasonable efforts to furnish, at the request of the
Holder of Pledged Securities included in the registration, on the date that
such Pledged Securities are delivered to the underwriters for sale in
connection with a registration, if such securities are being sold through
underwriters, or, if such securities are not being sold through underwriters,
on the date that the registration statement with respect such securities
becomes effective, (i) an opinion, dated such date, of the counsel representing
the Corporation for the purposes of such registration, in form and substance as
is customarily given to the underwriters in an underwritten public offering,
addressed to the underwriters, if any, and to the Holder requesting
registration

 

7

 

of Pledged Securities and
(ii) a letter dated such date, from the independent certified public
accountants of the Corporation, in form and substance as is customarily given
by independent certified public accountants to underwriters in an underwritten
public offering, addressed to the underwriters, if any, and to the Holder
requesting registration of Pledged Securities.

 

(j)
Register the underlying common stock to be issued upon exercise of the Lutz
warrants as further described herein in the SB-2 registration statement to be
filed with the S.E.C also as further described herein.

 

Conditions Precedent.

 

(a)
It shall be a condition precedent to the obligations of the Corporation to take
any action of this Agreement with respect to the Pledged Securities of the Holder
that such Holder shall furnish to the Corporation such information regarding
the Holder, the Pledged Securities held by the Holder, and the intended method
of disposition of such securities as shall be required to effect the
registration of any such Pledged Securities of the Holder.

 

(b)
The Corporation shall have no obligation with respect to any registration
requested of this Agreement if, due to the operation of this Agreement, the
number of shares or the anticipated aggregate offering price of the Pledged
Securities to be included in the registration does not equal or exceed the
number of shares or the anticipated aggregate offering price required to
originally trigger the obligation of the Corporation to initiate such
registration of this Agreement, as applicable.

 

Expenses of Registration.
All expenses other than underwriting discounts and commissions incurred in
connection with registrations, filings, or qualifications Agreement, including,
without limitation, all registration, filing, and qualification fees, printers’
and accounting fees, fees and disbursements of counsel to the Corporation [and
the reasonable fees and disbursements of one counsel for the selling Holders]
shall be borne by the Corporation; provided, however, that the Corporation shall
not be required to pay for any expenses of any registration proceeding begun if
the Registration Request is subsequently withdrawn at the request of the
Holder, in which case the Holder shall bear such expenses, unless the Holder
agrees to forfeit the rights of the Holder to registration of this Agreement.

 

Registration Event of
Default Interest Rate. If the Corporation should fail at any time for any
reason or no reason to comply with the obligations of the Corporation in any
material respect other than as a result of the action or inaction of the
Holder, then the Holder, may increase the applicable interest rate (the
“ORIGINAL INTEREST RATE”) by 0.0 basis points from 15.0% to 15.0% (the
“REGISTRATION EVENT OF DEFAULT INTEREST

 

8

 

RATE”), on and from the date
of such Event of Default (each, a “REGISTRATION EVENT OF DEFAULT”) until such
date as the Corporation has complied with the obligations of the Corporation
and/or cured any such Registration Event of Default, at which date the interest
rate applicable to the obligations of the Corporation to the Holder under this
Agreement would be revert from the Registration Event of Default Interest Rate
back to the Original Interest Rate.

 

Penalty Interest Rate Procedures.
If the Holder discovers, by reason of a notice given pursuant to this Agreement
or otherwise, that the Corporation has failed to comply with the obligations of
the Corporation in any material respect other than as a result of the action or
inaction of the Holder, and the Registration Event of Default has caused, or is
reasonably likely to cause, the Holder to suffer a Material Adverse Effect,
then the Holder may deliver written notice (the “REGISTRATION EVENT OF DEFAULT
NOTICE”) to the Corporation of the Registration Event of Default, which shall
explain and specify the factual basis for the Registration Event of Default in
reasonable detail. Notwithstanding anything in this Agreement to the contrary,
the Corporation shall have the right to cure any Registration Event of Default
within ten (10) Business Days following the date of receipt of the Registration
Event of Default Notice by the Corporation. Upon delivery of the Registration
Event of Default Notice and the failure of the Corporation to timely cure, the
Holder, may increase the applicable Original Interest Rate to the Registration
Event of Default Interest Rate.

 

6. CLOSING. Closing shall
occur in Availent’s offices at a mutually agreeable date and time but no later
than February       , 2003.

 

(i)                                     At the Closing, following execution of the
closing documents, Lutz shall provide the following:

 

(a)                                  Evidence reasonably suitable to Availent of a
wire transfer of funds or a check in the following net amount which constitute
the following amounts:

 

1.  Net amount funded on closing date:  $250,000

 

(ii)                                  At the closing, Availent shall deliver to
Lutz the following:

 

(a)                                  A promissory note dated the day of closing in
the original principal sum of $500,000 bearing interest at the rate of fifteen
percent (15%) per annum and being due and payable as described in paragraph 2
above and containing customary default and other provisions and be in a form
reasonably acceptable to Lutz;

 

(b)                                 Limited Personal Guaranty of McGeeney,
limited however, to shares of stock representing all his ownership interest in
Availent along with a Stock Pledge Agreement covering such shares and an Escrow

 

9

 

Agreement executed pursuant
thereto which shall reflect that the shares of stock are pledged or assigned by
McGeeney to secure Availent’s obligations under this Agreement and to secure
payment of the note, with such Stock Pledge Agreement and Escrow Agreement
containing terms and provisions reasonably acceptable to Lutz;

 

(c)                                  Limited Personal Guaranty of Banes, limited
however, to shares of stock representing all his ownership interest in Availent
along with a Stock Pledge Agreement covering such shares and an Escrow
Agreement executed pursuant thereto which shall reflect that the shares of
stock are pledged or assigned by Banes to secure Availent’s obligations under
this Agreement and to secure payment of the note, with such Stock Pledge
Agreement and Escrow Agreement containing terms and provisions reasonably
acceptable to Lutz;

 

(d)                                 Warrants in a form reasonably acceptable to
Lutz for 225,000 total shares of Availent stock with terms described in
paragraph 2 above;

 

(e)                                  Certificate by Availent’s Secretary or other
authorized officer reflecting action taken by Availent’s Board of Directors
authorizing the officer executing this Agreement to enter into this Agreement
and close the transaction in accordance with the provisions hereof

 

7. BINDING EFFECT. This
Agreement shall be binding upon and inure to the benefit of the parties, their
successors, assigns and/or affiliates.

 

8. ARBITRATION; VENUE;
JURISDICTION. The parties acknowledge and agree that this Agreement is being
entered into in Dallas County, Texas and that venue over any disputes shall be
in Dallas County, Texas and that the laws of the State of Texas shall apply to
the construction, interpretation, and/or application of this Agreement. The
parties agree that any disputes that may arise, excluding anything relating to
funded principal and accrued interest thereon, concerning the construction,
interpretation or application of this Agreement which cannot be amicably
resolved between the parties shall be resolved through mandatory arbitration
conducted by three arbitrators in accordance with the rules and pursuant to the
administration of the American Arbitration Association. Such arbitration shall
be conducted in Dallas County, Texas and shall be final and binding upon the
parties. Any party seeking to reduce an award to a final judgment shall do so
through initiating litigation in a Dallas County Judicial District Court
located in Dallas County, Texas.

 

9. NOTICES. All notices
required by this Agreement shall be effective if provided in writing and mailed
to the other party by certified mail, return receipt requested to the following
address or such other address as either party may provide to the other party in
writing in the manner required by this paragraph:

 

A. IF TO LUTZ

 

10

 

Bobby Lutz

17300 Dallas Parkway

Suite 3050

Dallas, Texas 75248

 

B. IF TO AVAILENT:

 

Mr. Patrick A. McGeeney,
President

Availent Financial, Inc.

2720 Stemmons Freeway, South
Tower

Suite 600

Dallas, Texas 75207

 

10. MULTIPLE COUNTERPARTS.
This Agreement may be executed in multiple counterparts, any of which shall be
deemed an original.

 

This Agreement is entered
into on this the 12th day of February, 2003.

 

	
   

  	
  BOBBY LUTZ, an individual

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ BOBBY LUTZ

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AVAILENT FINANCIAL, INC.,

  
	
   

  	
  a Delaware Corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PATRICK A. MCGEENEY

  	
   

  
	
   

  	
   

  	
  Patrick A. McGeeney,
  President

  
					

 

11

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