ASSET
ASSIGNMENT AND DEBT ASSUMPTION AGREEMENT
THIS ASSET
ASSIGNMENT AND DEBT ASSUMPTION AGREEMENT (the “
Agreement ”) is dated for reference the 10th day of
February, 2009 (the “ Effective Date
”).
AMONG:
a company
incorporated under the laws of the state of Delaware, with an
executive
office at 10000
NE 7th Avenue, Suite 100-C, Vancouver, Washington, 98685
AND:
a company
incorporated under the laws of the state of Delaware, with an
executive
office at 5550
152nd Street, Suite 206, Surrey, British Columbia V3S
5J9
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The Assignor
and Green Star Energies, Inc. entered into a Purchase Agreement
dated February 10, 2009 (the “ Purchase Agreement
”); and
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Pursuant to the
Purchase Agreement, the Assignor agreed to transfer certain of its
assets to the Assignee and ensure that the Assignee assumed all
outstanding debt obligations of the Assignor except those specified
in the Purchase Agreement.
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NOW
THEREFORE in
consideration of the mutual covenants and agreements contained in
this Agreement and other good and valuable consideration (the
receipt and sufficiency of which are hereby acknowledged), the
parties hereto agree as follows:
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Subject to the
terms of this Agreement, the Assignee agrees to assume all
outstanding debt obligations of the Assignor as of the Effective
Date (the “ Debts’ ).
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The following
debt obligations shall be excluded from the Debts:
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a convertible
promissory note in the amount of $100,000 payable to a creditor of
the Assignor designated by the Assignee in sixteen (16) monthly
installments of $6,250 per month with the first installment due on
May 1, 2009, and the rest of the installments due every month
thereafter on the first (1st) day of each month for a period of
fifteen (15) months or until the outstanding Principal Balance (as
defined in Schedule 1 hereto), together with any accrued interest
and any fees or charges, has been paid.
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$48,125 owed to
CX Digital as of the Effective Date, payable by the Assignor in
fourteen (14) monthly installments of $3,437.50 per month on the
tenth (10th) day of each month, with the first installment due not
less than thirty (30) days after the Effective Date; and
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$20,900 owed to
the Assignor’s auditor as of the Effective Date, payable by
the Assignor as soon as is reasonably practicable.
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As
consideration for the assumption of the Debts, the Assignor agrees
to assign the following assets of the Assignor to the
Assignee:
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ownership of
the Assignor’s website URL;
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customer lists
relating to the current and past business of the
Assignor;
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vendor lists
and supplier contacts of the Assignor;
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current
business phone and fax numbers of the Assignor;
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all website
code, graphics, images, content, text and logos used by the
Assignor;
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all current
online jewelry advertising agreements to which the Assignor is a
party;
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the merchant
account associated with the Assignor’s website;
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all bank
accounts currently held by the Assignor;
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the
Assignor’s Canadian subsidiary, Novori Marketing Inc., and
all bank accounts associated with such subsidiary;
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all bank
accounts associated with the Assignee;
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the
Assignor’s leases for its Canadian and U.S. offices;
and
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all office
equipment, desks, computers, furniture, phones and other office
furnishings of which the Assignor is the beneficial
owner.
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As further
consideration for the assumption of the Debts, the Assignor agrees
to execute and deliver a convertible promissory note in the amount
of $80,975, attached hereto as Schedule 2, payable to the Assignee
as follows until the outstanding Principal Balance has been
paid:
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“Immediate
Debts” in the amount of $5,000 payable in one (1)
installment, due ten (10) days after the Effective Date;
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“Short-Term
Debts” in the amount of $46,875 payable in three (3)
installments of $15,625 every thirty (30) days, with the first
installment due thirty (30) days after the Effective Date;
and
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“Mid-Term
Debts” in the amount of $29,100 payable in sixteen (16)
monthly installments of $1,818.75 per month with the first
installment due on May 1, 2009, and the rest of the installments
due every month thereafter on the first (1st) day of each month for
a period of fifteen (15) months.
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3.
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REPRESENTATIONS
AND WARRANTIES
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3.1
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Representations
and Warranties of the Assignor
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Organization;
Power . The Assignor
is a corporation incorporated and legally existing under the laws
of the state of Delaware, and has all requisite corporate power and
authority to enter into this Agreement and to perform its
obligations hereunder.
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Authorization
.
The execution, delivery and performance of this Agreement and all
other agreements contemplated by this Agreement to which the
Assignor is a party have been duly and validly authorized by all
necessary corporate action of the Assignor. This Agreement and all
other agreements contemplated by this Agreement, when executed and
delivered by the parties thereto, shall constitute legal, valid,
and binding obligations of the Assignor, enforceable against the
Assignor in accordance with their terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency
and similar laws affecting the rights of creditors generally or
judicial limits on equitable remedies.
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No Adverse
Consequences . The
execution, delivery and performance of this Agreement by the
Assignor will not:
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result in the
creation or imposition of any lien, security interest, charge or
encumbrance on the Assets;
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violate or
conflict with, or result in a breach of, any provision of the
Assignor’s Articles of Incorporation or Bylaws;
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violate any
law, judgment, order, injunction, decree, rule, regulation or
ruling of any governmental authority applicable to the Assignor;
or
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conflict with,
constitute grounds for termination or acceleration of, result in
the breach of the terms, conditions, or provisions of, result in
the loss of any benefit to the Assignor under, or constitute a
default under (whether by virtue of the application of a
“change of control” provision or otherwise) any
agreement, instrument, license or permit to which either the
Assignor is a party or by which the Assignor is bound.
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Litigation
.
There are no actions, suits, proceedings, orders, investigations,
or claims pending or, to the Assignor’s knowledge, threatened
against the Assets, at law or in equity.
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Accuracy of
Representations and Warranties . None of the
representations and warranties of the Assignor contain any untrue
statement of material fact or omit any material fact necessary to
the statements contained in this Agreement not
misleading.
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3.2
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Representations
and Warranties of the Assignee
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Organization;
Power . The Assignee
is a corporation incorporated and legally existing under the laws
of the state of Delaware, and has all requisite corporate power and
authority to enter into this Agreement and to perform its
obligations hereunder.
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Authorization
.
The execution, delivery and performance of this Agreement and all
other agreements contemplated by this Agreement to which the
Assignee is a party have been duly and validly authorized by all
necessary corporate action of the Assignee. This Agreement and all
other agreements contemplated by this Agreement, when executed and
delivered by the parties thereto, shall constitute legal, valid and
binding obligations of the Assignee, enforceable against the
Assignee in accordance with their terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency
and similar laws affecting the rights of creditors generally or
judicial limits on equitable remedies.
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No Conflict
with Other Instruments or Agreements . The
execution, delivery and performance of this Agreement by the
Assignee shall not:
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violate or
conflict with, or result in a breach of, any provision of the
Assignee’s Articles of Incorporation or Bylaws;
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violate any
law, judgment, order, injunction, decree, rule, regulation or
ruling of any governmental authority applicable to the Assignee;
or
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conflict with,
constitute grounds for termination or acceleration of, result in a
breach of the terms, conditions, or provisions of, result in the
loss of any benefit to the Assignee under, or constitute a default
under (whether by virtue of the application of a “change of
control” provision or otherwise) any agreement, instrument,
license or permit to which either the Assignee is a party or by
which the Assignee is bound.
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Accuracy of
Representations and Warranties . None
of the representations or warranties of the Assignee contain any
untrue statement of material fact or omit any material fact
necessary to make the statements contained in this Agreement not
misleading.
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All
representations, warranties, covenants and agreements made in this
Agreement or in any exhibit, schedule, certificate or agreement
delivered in accordance with this Agreement shall survive the
Effective Date.
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Waiver
.
The failure of either party to comply with any obligation,
covenant, agreement or condition in this Agreement may be waived by
the party entitled to the performance of such obligation, covenant
or agreement or by the party who has the benefit of such condition,
but such waiver or failure to insist on strict compliance with such
obligation, covenant, agreement or condition shall not operate as a
waiver of, or estoppel with respect to, any subsequent or other
failure.
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Amendment
.
This Agreement may not be amended unless consented to in writing by
the parties hereto.
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Assignment
.
This Agreement may not be assigned by either party without the
prior written consent of the other party hereto.
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Notices
.
Any notice or communication required or permitted to be given under
this Agreement shall be given in writing and shall be considered to
have been given if delivered by hand, transmitted by facsimile
transmission or mailed by prepaid registered post in Canada or in
the United States, to the address of each party set out
above.
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Currency
.
All references to currency in this Agreement are to U.S. dollars
unless otherwise stated.
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Time of the
Essence . Time shall be
of the essence of this Agreement.
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Invalidity
.
The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability
of any other provision and any such invalid or unenforceable
provision shall be deemed to be severable.
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Entire
Agreement .
The provisions of this Agreement constitute the entire agreement
between the parties and supersede all previous communications,
representations and agreements, whether oral or written, between
the parties with respect to the subject matter of this
Agreement.
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Enurement
.
This Agreement shall enure to the benefit of and be
binding upon the parties and, except as otherwise provided or as
would be inconsistent with the provisions of this Agreement, their
respective heirs, executors, administrators, successors and
assigns.
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Independent
Legal Advice . Each of the
parties to this Agreement confirms and acknowledges that it has
been provided with an opportunity to seek independent legal advice
with respect to its rights, entitlements, liabilities and
obligations hereunder and understands that it has been recommended
that such advice be sought prior to entering into this
Agreement.
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Counterparts
. This
Agreement may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one
and the same instrument. In the event that this Agreement is signed
by one party and faxed to another, the parties agree that a faxed
signature shall be binding upon the parties as though the signature
was an original.
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IN WITNESS
WHEREOF this Agreement
has been executed by the parties, and is effective as of the
Effective Date.
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AEON HOLDINGS
INC.
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NOVORI JEWELRY INC.
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Per:
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Per:
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/s/ Brandon Toth
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/s/ Harold Schaffrick
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Brandon
Toth, President
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Harold
Schaffrick, Chief Executive Officer
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SCHEDULE
1
CONVERTIBLE
PROMISSORY NOTE
$80,975
This
Convertible Promissory Note (the “ Note ”) is
dated for reference the 10th day of February, 2009 (the “
Effective Date ”).
MAKER:
AEON HOLDINGS INC.
Address: 10000,
N.E. 7th Avenue, Suite 100-C
PAYEE: NOVORI
JEWELRY INC.
Address:
5550 152nd Street, Suite 206
RECITALS:
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WHEREAS
pursuant to an
Assignment and Assumption of Debt Agreement among Maker and Payee
dated February 10, 2009 (the “ Agreement ”),
Payee has agreed to assume certain debts of Maker, and in
consideration, Maker has agreed to pay to Payee the sum of $80,975
in principal, plus interest pursuant to and in accordance with the
terms and conditions of this Note; and
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WHEREAS
pursuant to the
terms of this Note, Maker is agreeing to settle all outstanding
debts owed to Payee.
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NOW,
THEREFORE:
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Promise to
Pay . In
consideration for Payee assuming certain debt obligations of Maker,
Maker promises to pay to the order of Payee, at Payee’s
address set out above or at such other place as Payee may designate
by written notice to Maker, the principal sum of $80,975 (the
“ Principal Balance ”), together with any
accrued inte
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