ASSIGNMENT OF ASSET PURCHASE AGREEMENT, SECURED PROMISSORY NOTE, SECURITY AGREEMENT AND PLEDGE AGREEMENT

EXHIBIT 10.5

ASSIGNMENT OF ASSET PURCHASE AGREEMENT,

SECURED PROMISSORY NOTE, SECURITY AGREEMENT AND

PLEDGE AGREEMENT

FOR VALUE RECEIVED, the undersigned, CI Holdings, Inc., an Oregon corporation (CI”), hereby assigns its obligations with respect to the Quota (but not with respect to the Assets) under the (1) Asset Purchase Agreement dated September 18, 2012 by and among it, Xxxx Xxxxxxxxxx (“Xxxxxxxxxx”) and Xxxxxxxxx International, LLC, an Arizona limited liability company (“Xxxxxxxxx Arizona”) (CI, Xxxxxxxxxx and Xxxxxxxxx Arizona sometimes referred to as the “Parties”); (2) Secured Promissory Note dated September 18, 2012 in the original principal amount of Two Million Eight Hundred Thousand Dollars ($2,800,000.00) owed by CI to Xxxxxxxxx Arizona; (3) Amendment No. 1 to the Secured Promissory Note dated March 18, 2013 between CI and Xxxxxxxxx Arizona; (4) Security Agreement dated September 18, 2012 by and among CI, Xxxxxxxxx Arizona and Xxxxxxxxx Internazionale, S.r.l., an Italian company (“Xxxxxxxxx Italy”); and (5) the Pledge Agreement over Quotas dated September 18, 2012 by and among CI, Xxxxxxxxx Arizona and Xxxxxxxxx Italy (such documents collectively referred to herein as the “Indebtedness Documents”) as of May 7, 2013 to:

                                                            Experience Art and Design, Inc.,

                                                            A Nevada corporation (f/k/a

                                                            Clear System Recycling, Inc.)

00000 X.X. 00xx Xxxxxx

                                                            Xxxxx 0000

                                                            Xxxxxxxxxxx, XX 00000

Dated: May 7, 2013                                                                 CI HOLDINGS, INC.,

                                                                                                An Oregon corporation

                                                                                                By /s/ Xxxxxx X. Xxxx

                                                                                                Xxxxxx X. Xxxx

                                                                                                President

 

ACCEPTANCE OF ASSIGNMENT

            The undersigned, Experience Art and Design, Inc., f/k/a Clear System Recycling, Inc., a Nevada corporation, hereby acknowledges and accepts the foregoing Assignment. The undersigned shall execute any such documents and take any such action necessary or convenient in accomplishing the foregoing as set forth herein.

This Acceptance of Assignment shall be effective as of the date written below.

IN WITNESS WHEREOF, this instrument was executed and effective as of the 7th day of May, 2013.

                                                                                                EXPERIENCE ART AND DESIGN, INC.,

                                                                                                f/k/a Clear System Recycling, Inc.,

                                                                                                a Nevada corporation

                                    By:  /s/ Xxxxxx X. Xxxx

                                    Xxxxxx X. Xxxx

                                    President

 

CONSENTS

The undersigned hereby consent to the above Assignment and Acceptance of Assignment effective as of May 7, 2013. Effective as of this date, CI Holdings Inc., an Oregon corporation, shall bear no obligation under the Indebtedness Documents, and Experience Art and Design, Inc., f/k/a Clear System Recycling, Inc., a Nevada corporation shall be the sole obligor thereunder.

                                                                                                XXXXXXXXX INTERNATIONAL, LLC,

                                                                                                an Arizona limited liability company 

                                                                                                By XXXXX HOLDINGS, LLC,

                                                                                                an Arizona limited liability company

                                                                                                As Manager

                                                                                                By /s/ Xxxx X. Xxxxxxxxxx

                                                                                                Name Xxxx X. Xxxxxxxxxx

                                                                                                Title                 Manager                                 

/s/ Xxxx X. Xxxxxxxxxx

                                                                                                            Xxxx Xxxxxxxxxx

                                                                                                Sole Member of Xxxxxxxxx International, LLC,

                                                                                                an Arizona limited liability company

                                                                                                XXXXXXXXX INTERNAZIONALE, S.r.l.

                                                                                                By /s/ Xxxxxx X. Xxxx

                                                                                                Xxxxxx X. Xxxx

                                                                                                Sole Directcor