1
Exhibit: 10.16T
SECURITY INTEREST AGREEMENT (#19) August 5, 1998
WHEREAS the Xxxxx Corp of 000 Xxxx Xxxxxx in Norwalk, Ct. (hereafter "Xxxxx)
is seeking to pay operational expenses and fund seasonal working capital
requirements, and
WHEREAS Xxxxxxx X. Xxxxxxx (hereafter "Xxxxxxx") of White Oak Shade Road in New
Canaan, Ct. is willing to assist Xxxxx Corp by lending Xxxxx Corp $310,000.00
(three hundred ten thousand dollars and 00/100) to meet these requirements.
NOW THEREFORE, Xxxxx Corp agrees to provide a security interest to Xxxxxxx in
recognition of the value he is providing the Company and the risks therein.
Xxxxx agrees to give Xxxxxxx a collateral interest in all Cash or Securities,
all Accounts Receivable both of Xxxxx and its subsidiary, Soundprints, all
inventory of whatever kind, and all furniture and fixtures. This security
interest shall be limited to the amount referred to above, plus imputed
interest of 8% per annum.
Xxxxxxx shall be entitled to perfect his security interest, if and when, Xxxxx
is unable to repay this debt on its maturity; the entire $310,000.00 should be
repaid by October 5, 1998. In such circumstances, Xxxxxxx shall have a
collateral interest second only to that of First Union (if any) and Xxxxx
Xxxxxxx, in any event senior to all trade creditors and to all other liabilities
of the Company unless otherwise stated or stipulated by legislation.
Both parties agree that there may be partial reductions under this agreement as
funds are repaid by Xxxxx to Xxxxxxx; the collateral interest shall be reduced
pro rata.
AGREED: /s/ X. X. Xxxxxx ACCEPTED: /s/ Xxxxxxx X. Xxxxxxx
---------------------- ----------------------
Xxxxxxx X. Xxxxxx Xxxxxxx X. Xxxxxxx
Vice President/ CFO for
Xxxxx Corp.
