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EXHIBIT 10.5

 
ASSUMPTION AND ASSIGNMENT AGREEMENT (DEBENTURE SSWC-2-1)

THIS ASSUMPTION AND ASSIGNMENT AGREEMENT (the “Agreement”), dated as of July 26,
2010, by and between YA GLOBAL INVESTMENTS, L.P., a Cayman Islands exempt
limited partnership (f/k/a Cornell Capital Partners, LP, hereinafter the
“Assignor”), and E-LIONHEART ASSOCIATES, LLC, a Delaware limited liability
company (hereinafter referred to as "Assignee").

 
WITNESSETH:
 
WHEREAS, Assignor, Assignee and SpeechSwitch, Inc., a New Jersey company (the
“Company”), are parties to that certain Purchase Agreement dated as of July 26,
2010 (as may be amended, modified, supplemented and/or amended and restated from
time to time, the “Purchase Agreement”) pursuant to which Assignor agreed to
sell to Assignee, and Assignee agreed to purchase from Assignor, certain Amended
and Restated Debentures (as defined in the Purchase Agreement);
 
WHEREAS, that certain Amended and Restated Secured Convertible Debenture No.
SSWC-2-1 dated July 26, 2010 issued by the Company to Assignor in the original
principal amount of $208,707.74 (the “Debenture”) is one of the Amended and
Restated Debentures;
 
WHEREAS, subject to the terms and conditions contained herein, Assignor proposes
to assign to Assignee all of its right, title and interest in and to the
Debenture; and
 
WHEREAS, Assignee proposes to assume and accept the assignment and assumption of
such rights and obligations from Assignor on the terms and conditions set forth
herein.
 
NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Assignor and Assignee hereby agree as follows:

SECTION 1.    Purchase and Sale of Debenture.  Subject to the terms and
conditions of this Agreement, upon the indefeasible payment in full to Assignee
of an amount equal to One Hundred Thousand Dollars ($100,000), in immediately
available funds, in accordance with the wire transfer instructions set forth
below, Assignee hereby agrees to  sell, assign, convey and transfer to Assignee,
without recourse and without any representation or warranty except as set forth
in Section 4 below, all of Assignor’s right, title and interest in, to and under
the Debenture.

 

Bank Name: Wachovia Bank   Downtown Financial Center   101 Hudson Street, NJ1022
  Jersey City, NJ 07302 Bank Tel. No. 201-226-3040

 
 
 

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Contact Person: Michael Reynolds ABA/Routing No.: 031 201 467 Acct. No.:
2000031475547 Beneficiary: YA Global Investments, L.P.

                                                                                                                      

SECTION 2.   Acceptance and Assumption.  Assignee hereby accepts such sale,
assignment and transfer and agrees to assume, comply with and be bound by, as a
lender thereunder, all of the terms, provisions and conditions of the Debenture
and to assume and perform all of the duties and obligations of Assignor
thereunder.  Assignee hereby acknowledges that Assignor is not assigning to
Assignee any security interests, liens or encumbrances and therefore any and all
obligations owing by the Company to the Assignee under the Debenture shall be
unsecured.

SECTION 4.   Representations and Warranties.

(a)           Assignor hereby represents and warrants to Assignee that (i) this
Agreement has been duly authorized, executed and delivered by Assignor, and is
the legal, valid and binding obligation of the Assignor enforceable in
accordance with its terms and (ii) it has not previously assigned, sold, sold a
participation interest in, hypothecated, encumbered or otherwise transferred any
interest that it had or may have in the Debenture.

(b)           Except as provided in Section 4(a) above, Assignor’s assignment of
the Debenture is without recourse and without any representation or warranty
whatsoever, whether expressed or implied.  Without in any way limiting the
foregoing, Assignor makes no representations or warranties, express or implied,
and shall have no obligation or responsibility whatsoever with respect to:

(i)           the genuineness, legality, validity, binding effect or
enforceability of the Debenture;

(ii)           the financial condition of the Company or of any other maker,
obligor, guarantor or any other party to or liable under the Debenture;

(iii)          the collectability of any amounts that may now or in the future
be due under the Debenture; or

(iv)          any other matter pertaining to the Debenture or the Company.

SECTION 5.   Agent Fees.  Assignor and Assignee agree that neither has
contracted with any agent or broker for purposes of this Agreement, and that no
fee is owed to any party by Assignor or Assignee with respect to the
transactions contemplated hereunder.
 
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SECTION 8.   Governing Law.  This Agreement shall be governed by and interpreted
in accordance with the laws of the State of New Jersey without regard to the
principles of conflict of laws.  The parties further agree that any action
between them shall be heard in Hudson County, New Jersey, and expressly consent
to the jurisdiction and venue of the Superior Court of New Jersey, sitting in
Hudson County and the United States District Court for the District of New
Jersey sitting in Newark, New Jersey for the adjudication of any civil action
asserted pursuant to this Paragraph.

SECTION 9     Binding Effect.  This Agreement shall be binding upon and inure to
the benefit of Assignor and Assignee and their respective successors and
assigns.

SECTION 10   Entire Agreement; Counterparts.  This Agreement and the exhibit
attached hereto constitute the entire agreement between Assignor and Assignee
relating to the subject matter hereof and supersede all prior oral statements
and/or other writings with respect to the subject matter hereof.  This Agreement
may be signed in any number of original or facsimile counterparts, each of which
shall be an original, and all of which together shall constitute one and the
same instrument.
 
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IN WITNESS WHEREOF, Assignor and Assignee have executed this Agreement as of the
date first set forth above.

 
 
 
“Assignee”
 
E-LIONHEART ASSOCIATES, LLC
 
By:              /s/ Edward Bronson
       Name:  Edward Bronson
       Title:    Managing Member
 
“Assignor”
 
YA GLOBAL INVESTMENTS, L.P.
 
By: Yorkville Advisors, LLC
Its: Investment Manager
 
 
By:              /s/ Troy Rillo     
       Name:   Troy Rillo
       Title:     Sr. Managing Director

      

 

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