Document:

exv10w20

 

Exhibit 10.20

ASSIGNMENT AGREEMENT

This Agreement (the or this “Agreement”) is made as of January 20, 2004,
between Littlefeet, Inc., a California corporation (“Littlefeet”) and Aetrium
Incorporated, a Minnesota corporation (“Aetrium”), jointly (the “Parties”).

RECITALS:

A. The Parties entered into an Assignment and Assumption of Lease Agreement
(the “Lease Assignment”) dated August 8, 2000 under which Aetrium assigned to
Littlefeet that certain Standard Industrial/Commercial Single-Tenant Lease-Net
dated September 18, 1998 by and between Aetrium and Pomerado Leasing No. 5 LP,
a California limited partnership (“Lessor”), as successor in interest to W.H.
Pomerado LLC, a California limited liability company (including Addendum to
Lease dated September 17, 1998 (“Addendum”) and as amended by that certain
First Amendment to Lease (“First Amendment”) dated September 10, 1999 and by
that certain Consent to Assignment of Lease and Amendment of Lease dated August
10, 2000 by and among Lessor, Aetrium and Littlefeet (“First Consent”))
(“Lease”) respecting premises located at 13000 Gregg Street, Poway, California
(the “Premises”). Aetrium remained liable for the full performance of lessee
under the Lease. True and correct copies of the Lease Assignment and Lease are
attached as Exhibit “A” and Exhibit “B” hereto, respectively. Any words or
phrases defined in the Lease will have the same meaning and effect when used in
this Agreement, unless otherwise expressly provided in this Agreement.

B. The term of the Lease is scheduled to expire on January 31, 2010 (the
“Contractual Termination Date”).

C. Aetrium holds a security deposit in the amount of $67,500.00 (“Aetrium
Security Deposit”) and Lessor holds a security deposit in the amount of
$67,582.00 (the “Pomerado Security Deposit” the Aetrium Security Deposit and
the Pomerado Security Deposit are collectively referred to as the “Security
Deposits”).

D. Littlefeet will be ceasing operations in the near future and may be liable
for substantial damages for rent and other sums that would have been payable
through the balance of the Lease term. Littlefeet has requested that, in lieu
of prosecuting a lawsuit against Littlefeet for such damages and for collection
thereof, Aetrium instead assume the Lease and accept a one-time lump sum
payment as set forth herein. Littlefeet acknowledges that such a reduction of
its liability to Lessor and Aetrium is a substantial benefit to it in that,
among other things, it reduces the absolute number of dollars it would
otherwise have to pay to Lessor and Aetrium.

NOW, THEREFORE, in furtherance of the foregoing, and in consideration of the
premises and the mutual covenants set forth below and other good and valuable
consideration the receipt and adequacy of which is acknowledged, the Parties
agree as follows:

1

 

Exhibit 10.20

     1. Assignment and Assumption. Effective the date of this Agreement,
Littlefeet hereby assigns to Aetrium all of its right, title and interest in,
to and under the Lease and in, to and under that certain Sublease (the
“Tandberg Sublease”) dated February 12, 2002 by and between Littlefeet and
Tandberg Data Inc, a Delaware corporation (“Tandberg”) with respect to
approximately 13,319 square feet of the Premises, including without limitation
with respect to security deposits held under the Lease and by Aetrium, and
Aetrium hereby assumes all obligations of Littlefeet under the Lease and the
Tandberg Sublease accruing on or after the date hereof, including without
limitation with respect to the security deposit under the Tandberg Sublease.
Littlefeet represents that a true and correct copy of the Tandberg Sublease is
attached hereto as “Exhibit C” hereto, the Tandberg Sublease is in full force
and effect and has not been modified, Littlefeet and Tandberg are each in full
compliance with the requirements of the Tandberg Sublease, and rent under the
Tandberg Sublease has been paid in full through January 2004.

     2. Lump Sum Payment. In consideration for amounts currently owing under
the Lease and the Lease Assignment and for Lessor and Aetrium permitting
Littlefeet to be relieved of the future obligation to pay damages that would
have been payable under the Lease and Lease Assignment through the Contractual
Termination Date, contemporaneously with the execution of this Agreement,
Littlefeet has paid to Aetrium by wire transfer to Aetrium’s bank (Anchor Bank,
2700 East Seventh Avenue, North St. Paul, MN 55109, routing number 096008825,
for the account of Aetrium Incorporated, account number 97-84972) an amount of
money equal to $212,661, plus an additional amount of $22,500 to be held and
applied as a “Utilities Reserve” as set forth herein. Littlefeet hereby assigns
to Aetrium all of its right, title and interest in and to the Security
Deposits. In addition, Littlefeet will pay Lessor all of Lessor’s reasonable
costs and expenses incurred in connection with Lessor’s consent to this
Agreement.

     3. Release of Claims.

          a. Except for the agreements of Littlefeet set forth in this Agreement,
Aetrium, as of the date of this Agreement, releases Littlefeet and its present
and former shareholders, officers, directors, agents, attorneys, employees,
predecessors, successors, and assigns (collectively “Littlefeet Releasees”) of
and from any and all claims, demands, damages, liabilities, losses, costs, and
expenses of every kind and nature whatsoever, whether now known or unknown,
suspected or unsuspected which any of them now has, owns or holds or at any
time heretofore ever had, owned or held or could, will or may hereafter have,
own or hold against any and all of the Littlefeet Releasees based upon
obligations of Littlefeet under the Lease and the Lease Assignment and for any
other damages Aetrium could otherwise collect as a consequence of any failure
by Littlefeet to fully perform such obligations (the “Aetrium Released
Matters”).

          b. Except for the agreements of Aetrium set forth in this Agreement,
Littlefeet, as of the Effective Date, releases Aetrium, and its present and
former members, agents, attorneys, employees, predecessors, successors, and
assigns (collectively “Aetrium Releasees”) of and from any

2

 

Exhibit 10.20

and all claims,
demands, damages, liabilities, losses, costs, and expenses of every kind and
nature whatsoever, whether now known or unknown, suspected or unsuspected which it now has, owns or holds or at
any time heretofore ever had, owned or held or could, will or may hereafter
have, own or hold against any and all of the Aetrium Releasees based upon any
matter, cause, fact, thing, act or omission occurring or existing at any time
through and including the date of this Agreement arising out of, in connection
with, or relating to the Lease, the Lease Assignment and any other agreements
between Aetrium and Littlefeet (the “Littlefeet Released Matters”).

          c. It is the intention of the Parties in executing this Agreement that
this Agreement will be effective as a mutual general release of and from all
Aetrium Released Matters and Littlefeet Released Matters (collectively, the
"Released Matters”). In furtherance of the intentions set forth herein, each
of the parties acknowledges that it is familiar with Section 1542 of the Civil
Code of the State of California which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.”

Aetrium, with respect to Aetrium Released Matters, and Littlefeet, with respect
to Littlefeet Released Matters, each hereby waives and relinquishes any right
or benefit which it has or may have under Section 1542 of the Civil Code of the
State of California or any similar provision of the statutory or nonstatutory
law of any other jurisdiction, to the full extent that it may lawfully waive
all such rights and benefits.

     4. Sublease. Aetrium hereby subleases to Littlefeet and Littlefeet hereby
subleases from Aetrium that portion of the Premises not subject to the Tandberg
Sublease (the “Subleased Premises”). Littlefeet accepts the Subleased Premises
“as is.” All terms and conditions in the Lease as they pertain to the Subleased
Premises are incorporated herein, except as otherwise set forth herein, as
terms and conditions of this sublease (with each reference therein to Lessor
and Lessee to be deemed to refer to Aetrium as sublessor and Littlefeet as
sublessee) and, along with the further provisions of this Section 4, will be
the complete terms and conditions of this sublease. Littlefeet hereby assumes
and will timely perform all of the obligations of Lessee under the Lease as
they pertain to the Subleased Premises for and during the term of this
sublease, provided only that (a) Littlefeet will have no obligation to pay Base
Rent or Operating Expenses, and (b) the following sections under the Lease will
not apply to the sublease: Addendum sections 1, 4, 14 and 16 and all
subsections thereof, First Amendment sections 6, 7 and 8 and all subsections
thereof, and First Consent section 3.2 including subsection. Littlefeet will
take all actions, if any, necessary to bring the Subleased Premises into
conformity with Lessee’s obligations under the Lease. Littlefeet will continue
through the term of this sublease to carry insurance naming Aetrium and Lessor
as additional insureds meeting the full insurance requirements of the Lease.
The term of this

3

 

Exhibit 10.20

sublease is from the date of this
Agreement to and including
February 29, 2004. In the event Littlefeet wishes to extend this sublease for
any one or more periods of not more than one month each, Littlefeet will give
Aetrium written notice of such request not less than 30 days prior to
the end of the term of this sublease, including as it may have been
previously extended. Such requested extension will become effective only upon
Aetrium’s written consent thereto, which consent may be given or withheld in
Aetrium’s absolute discretion. In the event Aetrium does not consent to any
request within five (5) business days of the request, the request will be
deemed denied. During the term of sublease, Littlefeet will maintain the
security system for the Subleased Premises and timely pay for water, gas and
electric charges. Aetrium will reimburse Littlefeet from the Utilities Reserve
for third party charges for the security system and for water, gas and electric
charges accruing during the term of the sublease and paid by Littlefeet. Upon
Aetrium’s reletting of the Subleased Premises to a third party, Aetrium will
return to Littlefeet any amount remaining in the Utilities Reserve, if any,
after payment of all third party charges for the security system and for water,
gas and electric charges accruing from the date of this Agreement to the date
of such reletting.

     5. Hazardous Materials. To Littlefeet’s best knowledge, (a) no Hazardous
Materials are present in the Subleased Premises or at the property where the
Subleased Premises are situated (the “Project”), other than Hazardous Materials
used in the ordinary course of Littlefeet’s business in compliance with all
applicable laws and regulations, (b) no underground storage tanks are present
at the project, and (c) no action, proceeding or claim is pending or threatened
regarding the Project concerning any Hazardous Materials or pursuant to any
environmental Law.

     6. Reletting Payments. In the event Aetrium relets the Subleased Premises
prior to September 30, 2004, Aetrium will pay to Littlefeet an amount equal to
one half of the excess, if any, of the rent that would have been payable under
the Lease and Lease Assignment for the period between the effective relet date
and September 30, 2004 over the aggregate of (a) out of pocket costs of Aetrium
incurred in negotiating and entering into this Agreement or any reletting of
the Subleased Premises, (b) real estate agent fees and commissions incurred in
reletting the Subleased Premises, (c) all other out of pocket costs and expense
incurred by Aetrium with respect to the Subleased Premises on or after the date
of this Agreement and prior to any reletting, but exclusive of any amounts
incurred by Aetrium for tenant improvements. Any amounts becoming due to
Littlefeet under this Section 6 will be paid promptly after receipt by Aetrium
of the rent giving rise to the obligation.

	7.	 	Notices. Any notice, request, instruction or other document to be given
hereunder by one party hereto to the other party will be in writing and
delivered personally or sent by registered or certified mail, postage
prepaid (and if by mail with a copy sent by telephonic facsimile
transmission),

If to Aetrium:

Aetrium Incorporated

2350 Helen Street

North St. Paul, MN 55109

4

 

Exhibit 10.20

Attn: Paul Askegaard

Facsimile No: 651-770-7975

If to Littlefeet:

Littlefeet, Inc.

Attn: John Combs

13000 Gregg Street

Poway, California 92064

Facsimile No: 858-375-6401

or at such other address for a party as is specified by like notice. Any notice
which is addressed and mailed in the manner herein provided will be deemed to
have been duly given to the party to which it is addressed on the date
deposited in the mail (or, if later, the date of facsimile transmission).

	8.	 	Entire Agreement. This Agreement is the complete and exclusive statement
regarding the subject matter of this Agreement and supersedes all prior
agreements, understandings and communications, oral or written, between
the parties regarding the subject matter of this Agreement. The Recitals
set forth at the beginning of this Agreement are incorporated in this
Agreement and made a part hereof.
	 
	9.	 	Binding on Successors. This Agreement will benefit and be binding upon
the Parties hereto and their respective subsidiaries, affiliates,
successors and assigns.
	 
	10.	 	Governing Law. This Agreement will be governed by and construed in
accordance with the internal laws of the State of California without
regard to principles of conflicts of law.
	 
	11.	 	Jurisdiction and Venue. Each party hereto hereby submits to the
exclusive jurisdiction of the state and Federal courts located in the
County of San Diego, State of California, with venue in San Diego County,
California.
	 
	12.	 	Interpretation. The captions and headings of the numbered paragraphs of
this Agreement are inserted solely for the convenience of the parties
hereto, and are not a part of this Agreement and will have no effect upon
the construction or interpretation of any part hereof. When required by
the context of this Agreement, the neuter includes the masculine, the
feminine, and the singular shall include the plural. The language in all
parts of this Agreement will in all cases be construed as a whole
according to its fair meaning and not strictly for or against Aetrium or
Littlefeet, and without regard to which party prepared this Agreement.
	 
	13.	 	Authority to Sign. The individual or individuals executing this
Agreement on behalf of each party represent and warrant to the other party
that he or they are fully authorized and legally capable of executing this
Agreement on behalf of such party and that such execution is binding upon
such party.

5

 

Exhibit 10.20

	14.	 	Counterparts. This Agreement may be executed in counterparts, each of
which will be deemed an original, but all of which together will
constitute one and the same Agreement.
	 
	15.	 	Further Acts. Aetrium and Littlefeet will all take such further action,
and execute and deliver such further documents, as may be reasonably
necessary in order to carry out the terms of this Agreement.
	 
	16.	 	Amendments. This Agreement may not be amended except by written
instrument signed by the Parties hereto.

6

 

Exhibit 10.20

IN WITNESS WHEREOF, the Parties have entered into this Agreement as of January
16, 2004.

“Aetrium”

AETRIUM INCORPORATED,

A Minnesota corporation

	 	 	 
	By:

	 	/s/ Douglas Hemer
	

	 	

	

	 	Douglas L. Hemer
	

	 	Chief Administrative Officer

“Littlefeet”

LITTLEFEET, INC.,

a California corporation

	 	 	 
	By:

	 	/s/ John W. Combs
	

	 	

	

	 	John W. Combs,
	

	 	Chairman and Chief Executive Officer

7exv10w21

 

Exhibit 10.21

AETRIUM SALES INCENTIVE PROGRAM

     In 2003, Aetrium initiated a sales incentive program for certain personnel
participating in marketing and sales activities (Sales Personnel). Under the
program, Sales Personnel are awarded per diem amounts for domestic travel
outside their home state to customers, and for international business travel.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]