Exhibit 10.4
ASSIGNMENT OF DEBT AND SECURITY
THIS AGREEMENT dated the 25th day of April 2003.
B E T W E E N :
488605 ONTARIO LIMITED as to an undivided 89.33% interest
-and-
XXXX XXXXXX as to an undivided 10.67% interest
(488605 ONTARIO LIMITED and Xxxx Xxxxxx referred to as the "Assignor")
- and -
DVOD NETWORKS INC.
(the "Assignee")
- and -
GALAVU ENTERTAINMENT NETWORK INC.
(the "Corporation")
WHEREAS Chell Group Corporation ("Chell") was the holder of
the interest in a promissory note dated September 10,1999 (the "Original Note")
between Xxxxxx Xxxxxxxx Inc. in its capacity as Interim Receiver of the
property, assets and entire undertaking of GalaVu Entertainment inc. ("Xxxxxx
Xxxxxxxx") and the Corporation, a copy of which is attached hereto as Schedule
A;
AND WHEREAS the Original Note was lost or misplaced and the
Assignor entered into a replacement note dated November 25, 2002, (the "New
Note") a copy of which is attached hereto as Schedule B;
AND WHEREAS the New Note was in the principal amount of CDN
$375,000;
AND WHEREAS Chell sold and the Assignor purchased all of the
right, title and interest of Chell in the New Note and a General Security
Agreement dated September 10, 1999 between Xxxxxx Xxxxxxxx and the Corporation
(the "GSA"), a copy of which is attached hereto as Schedule C, which GSA was
assigned to Chell on November 25, 2002 by Xxxx of Sale, a copy of which is
attached hereto as Schedule D;
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AND WHEREAS Chell assigned the new Note and the GSA to the
Assignor pursuant to an Assignment Agreement dated November 25, 20002, a copy of
which is attached hereto as Exhibit E;
AND WHEREAS Chell, the owner of all issued and outstanding
shares of the of the Corporation has entered into the Agreement of Purchase and
Sale with the Assignee ( the "Purchase Agreement"), whereby Chell agreed to sell
and the Assignee agreed to purchase the shares of the Corporation;
AND WHEREAS pursuant to the terms of the Purchase Agreement,
the right, title and interest held by the Assignor in the New Note and the GSA
would be assigned to the Assignee;
AND WHEREAS in exchange for the Assignor assigning the right,
title and interest held by it in the New Note and the GSA and acknowledging that
the Corporation has no further indebtedness to the Assignor, the Assignee will
pay to the Assignor the sum of One Hundred and Seventy Thousand Dollars (CDN
$170,000)
NOW THEREFOR THIS AGREEMENT WITNESSETH that in consideration
of the payment by the Assignee to the Assignor of the sum of One Hundred and
Seventy Thousand Dollars (CDN $170,000) and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties, the parties hereto agree as follows;
1. Assignment of Indebtedness and Security. In consideration of
the sum of One Hundred and Seventy Thousand Dollars (CDN
$170,000.00) (the "Purchase Price"), the Assignor hereby
sells, assigns, transfers and sets over unto the Assignee on
and as of the date hereof, all of the Assignor's right, title
and interest, in and to the New Note and in and to the GSA.
2. Representations of the Assignor. The Assignor represents and
warrants to the Assignee and acknowledges that the Assignee is
relying on such representations and warranties in entering
into this Agreement and the transactions contemplated herein:
(a) the Assignor has the right to convey its right, title
and interest in and to the New Note and the GSA;
(b) the Assignor has not encumbered, assigned, released
or discharged the New Note or the GSA;
(c) the attached documents evidencing the New Note and
the GSA are the only documents to which the Assignor
and the Corporation are parties relating to such
matters and the Assignor has not waived, amended or
agreed to waive or amend any provisions in such
documents;
(d) the New Note and GSA remain in full force and effect
and there have been no uncured default, by the
Corporation of its obligations pursuant to the New
Note or the GSA; and
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(e) the Assignor has caused to be registered its assigned
interest in the GSA and has ensured that such
security interest was perfected under the personal
Property Security Act (Ontario) and remains perfected
as at the date hereof.
3. Acknowledgement. The Assignor hereby acknowledges that all
debts and amounts owing to the Assignor by the Corporation in
respect of the New Note or otherwise have been paid in full
and that the Assignor has no claim or security in respect
thereto. The Assignor hereby releases the Corporation from any
and all claims, liabilities, or contracts it may have with the
Corporation.
4. Governing Law. This Agreement and any of the agreements
required to be executed pursuant to the provisions of this
Agreement shall be construed and enforced in accordance with,
and the rights of the parties shall be governed by, the laws
of the Province of Ontario and of Canada applicable thereto
and the parties submit to the jurisdiction of the courts of
the Province of Ontario.
5. Further Assurances. The parties covenant and agree to execute
such further and other documents (including PPSA financing
statements) and undertake such other actions as may be
reasonably required to give effect to the terms and intent of
the transactions contemplated in this Agreement.
6. Counterparts. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the
same agreement, and shall become a binding agreement when one
or more counterparts have been signed by each of the parties
and delivered to each of the other parties.
7. Enurement This Agreement shall be binding upon and enure to
the benefit of the parties hereto and their respective heirs,
administrators, executors, successors and permitted assigns,
provided that the rights of any party hereto may not be
assigned without the prior written consent of all other
parties hereto.
8. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction will, as to
that jurisdiction be ineffective to the extent such
prohibition and will severed from the balance of this
Agreement, all without affecting the remaining provisions of
this Agreement of affecting the validity or enforceability of
such provisions in any other jurisdiction provided, however,
that the substance of the Agreement remains materially
unaffected.
9. Transmission by Facsimile. The parties hereto agree that this
Agreement may be transmitted by facsimile or such similar
device and that the reproduction of signatures by facsimile or
such similar device will be treated as binding as if originals
and each party hereto undertakes to provide each and every
other party hereto with a copy of the Agreement bearing
original signatures forthwith upon demand.
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IN WITNESS WHEREOF the parties hereto have duly executed this
Agreement as of the date first written above.
SIGNED, SEALED and DELIVERED
In the presence of /s/ Xxxx Xxxxxx
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XXXX XXXXXX
DVOD NETWORKS INC.
Per: /s/ Xxxx Xxxxxxxxx
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Name:
Title:
488605 ONTARIO LIMITED
Per: /s/
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Name:
Title:
