1
Exhibit: 10.3T
SECURITY INTEREST AGREEMENT (#3) August 5, 1991
WHEREAS the Xxxxx Corp of 000 Xxxxx Xxxxxx in Norwalk, Ct. (hereafter "Xxxxx")
is seeking to open additional letters of credit in the Orient to import new
merchandise for confirmed and pending orders, and
WHEREAS the Xxxxx Corp needs additional cash collateral to provide to Union
Trust as a condition for opening the Letters of Credit, and has to date been
unable to secure financing from other sources, and
WHEREAS Xxxxxxx X. Xxxxxxx (hereafter "Xxxxxxx") of White Oak Shade Road in New
Canaan, Ct. is willing to assist Xxxxx Corp by hypothecating and assigning his
personal Investment Savings Account at Union Trust (A/C #350328639 for
$24,140.00 as of 8/5/91) as the necessary collateral for Xxxxx Corp to effect
the opening of the Letters of Credit (L/C #1001437 with separate drawings of
$12,960.00 for T.E. Squirrels, and for $11,180.00 for Wolves),
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 inherent
therein. Given that this collateral is necessary for the Company to obtain
needed product to survive, that collateral has great value to Xxxxx, in excess
of the stated value of the merchandise imported.
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 of the Letter of Credit referred to
above, plus imputed interest of 12% per annum.
Xxxxxxx shall be entitled to perfect his security interest, if and when, Xxxxx
is unable to pay Union Trust on maturity of the Letter of Credit and the Bank
takes possession of the collateral. In such circumstances, Xxxxxxx shall have a
collateral interest second only to that of Union Trust (if any), but 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
goods are imported and paid for by Xxxxx; the collateral interest shall be
reduced pro rata.
AGREED: /s/ Xxxxx X. Xxxxxxx ACCEPTED: /s/ Xxxxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx
for Xxxxx Corp 9/8/91
