DEBT SETTLEMENT AGREEMENT
Agreement made on December 19, 2002 between International Portfolio Management Ltd. with offices located at 0000-0000 Xxxx Xxxxxxx Xxxxxx, Xxxxxxxxx, X.X. X0X 0X0 referred to as Creditor and Sona Development Corp. with offices located at 0000-0000 Xxxx Xxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx Xxxxxxxx X0X 0X0 referred to as Debtor.
SECTION ONE
ACKNOWLEDGEMENT OF EXISTING OBLIGATION
The parties acknowledge that Debtor is at present indebted to Creditor in the sum of $19,963.20 due to administrative services rendered in 2001.
SECTION TWO
AGREEMENT FOR DIFFERENT METHOD OF PAYMENT
Debtor and Creditor desire and agree, to provide for the payment of the above-stated indebtedness in accordance with terms an provisions different from, and in substitution of, the terms and obligations for payment for same contained in the original loan obligation as described in Section One above.
SECTION THREE
CONSIDERATION
In consideration of the mutual promises contained in this Agreement, Debtor and Creditor agree as follows:
|
a. |
Method of Payment: Debtor agrees to pay to Creditor and Creditor agrees to accept from Debtor, in full satisfaction of the indebtedness described in Section One, above, 39,926 shares of Debtor's common stock, valued at $0.50 a share, as consideration for monies owed to Creditor as a result of services provided by Creditor to Debtor. |
|
b. |
Satisfaction: On execution of this Agreement and Creditor's board of directors resolution authorizing the issuance of 39,926 shares of Debtor's common stock to Creditor provided for in Section Three (a) above, the original indebtedness of Debtor to Creditor, as described in Section One, above, will be forever cancelled and discharged. |
In witness whereof, the parties have executed this Agreement in Vancouver, British Columbia on the date first mentioned above.
Sona Development Corp.
/s/ Xxxx Xxxxxxx
By: Xxxx Xxxxxxx, President
International Portfolio Management, Ltd.
/s/ Xxxx Xxxxxx
By: Xxxx Xxxxxx, Executive Vice- President
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