ASSIGNMENT OF RIGHTS
AND
CONSENT TO ASSIGNMENT
This ASSIGNMENT OF RIGHTS AND CONSENT TO ASSIGNMENT (this "Assignment
and Consent") dated as of May 14, 2003, is made by and among IQ Biometrix, Inc.,
a Delaware corporation ("IQB"), the individuals or entities identified on the
Exhibit A hereto (the "Assignees"), and Network Storage Solutions, a Delaware
corporation ("NSS").
RECITALS
WHEREAS, IQB and NSS have entered into a financing arrangement pursuant
to that certain Secured Promissory Note, Security Agreement and Assignment of
Accounts Receivable each dated May 5, 2003, between IQB and NSS (collectively,
the "Financing Documents") pursuant to which IQB shall loan up to $400,000 to
NSS; and
WHEREAS, IQB desires to transfer its rights, title and interest to
repayment and to any and all rights and remedies related thereto, including but
not limited to the rights related to the enforcement of recovery under the
Financing Documents (the "Repayment Rights") to Assignees in the proportions
provided on Exhibit A; and
NOW THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the parties
hereto agree as follows:
1. IQB hereby grants, conveys, transfers, assigns, delivers and sets over to
Assignees for the use and benefit of Assignees and its successors and assigns
forever, all of IQB's Repayment Rights.
2. IQB and NSS hereby covenant that they are in compliance with their respective
obligations under the Financing Documents.
3. IQB, NSS and Assignees hereby mutually covenant and agree the each will
execute and deliver such further instruments or documents consistent with this
Agreement as reasonably necessary to evidence the assignments under this
Agreement or to cause this Agreement to become and remain valid and effective in
accordance with its terms.
4. In the event that IQB or NSS fails or is unable to execute any such
assignments or instruments for the benefit of Assignees, IQB and NSS each hereby
appoints each Assignee as its attorney-in-fact with the full right and authority
to execute and deliver the same, such appointment being deemed a power coupled
with an interest and being irrevocable under any and all circumstances. IQB and
NSS each further agrees to cooperate in any action that Assignees from time to
time takes to evidence, establish, maintain, protect, enforce or defend its
Repayment Rights under the Financing Documents.
5. By executing this Agreement on the line indicated below, NSS acknowledges and
otherwise expresses its consent to the assignment by IQB to Assignees, and the
assumption by Assignees, of IQB's right, title and interest under the Financing
Documents.
6. By executing this Agreement on Exhibit A, each Assignee acknowledges that in
the event of only a partial repayment under the Financing Documents, they will
share pro-rata in such recovery based on their percentage interest identified on
Exhibit A. The Assignees further agree that in the event that it becomes
necessary to institute legal proceedings to enforce collection of some or all of
the amounts due pursuant to the Financing Documents, they will share pro-rata
based on the percentage interest on Exhibit A in the costs associated with such
collections. The percentage interest of each Assignee shall be calculated by
dividing the amount delivered by a particular Assignee by the total amount of
delivered to NSS pursuant to the Financing Documents. By way of example, if a
particular Assignee delivered $300,000 of the total $400,000 delivered, then
$300,000/$400,000 = .75 or 75%. Exhibit A shall be updated from time to time. In
the event that it becomes necessary to institute legal proceedings to enforce
collection of some or all of the amounts due pursuant to the Financing
Documents, and any particular Assignee does not share pro-rata based on the
percentage interest on Exhibit A in the costs associated with such collections,
any recovery resulting from such legal proceedings shall be shared pro-rata
based on the Assignees' actual proportional contribution towards the legal
proceedings.
7. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of Delaware applicable to contracts made and to be
performed in that state, without regard to conflict of laws principles.
8. This Agreement may be executed in any number of counterparts, including
electronically transmitted counterparts, each of which shall be deemed an
original and all of which together shall constitute a single Agreement.
NETWORK STORAGE SOLUTIONS, INC.
a Delaware corporation
By:
-------------------------------------------
Xxx Xxxxxxx, President
IQ BIOMETRIX, INC.
a Delaware corporation
By:
-------------------------------------------
Xxxxxxx Xxxxxxxxx, President
Exhibit A
Assignees
Assignee Amount Assignment Date
------------------------- --------------------------- --------------------------
_____________________ $200,000.00 May 5, 2003
Xxxx Xxxxx