ex108.htm


EXHIBIT 10.8




 



	 	
MISC BK0001 IPG0323

	
FILED AND RECORDED 


CLERK SUPERIOR COURT 


GWINNETI COUNTY. GA


2010 SEP 23 PM 1: 33


TOM LAWLER. CLERK


	 	 	 
	 	 	 





 


 


 









 


 



	 STATE OF GEORGIA	 	Upon recording, please return to:
	 	 	Grisanti, Galef, Goldress
	COUNTY OF GWINNETT	 	5883 Glenridge Drive NE, Ste 160
	 	 	 Atlanta, GA 30328





 








 




DEED OF ASSIGNMENT


 


ASSIGNMENT, made 21st day of September, 2010, between The Brainy Baby Company, LLC a Georgia corporation with a principal place of business at 460 Brogdon Road, Suite 400 Suwanee GA 30024 ("Assignor") and Asset Recovery Associates, LLC, whose address is 5883 Glenridge Drive, Suite 160 Atlanta GA 30328 ("Assignee").


 


WHEREAS, the Assignor has been engaged in the producing and distributing DVDs and other products;


 


WHEREAS, the Assignor is indebted to creditors, as set forth in Exhibit A annexed hereto, is unable to pay its debts as they become due, and is desirous of providing for the payment of its debts, so far as possible, by an assignment of all of its assets for that purpose.


 


NOW, THEREFORE, the Assignor, in consideration of the Assignee's acceptance of this assignment, and for other good and valuable consideration, hereby grants, assigns, conveys, transfers, and sets over unto the Assignee, its successors and assigns, all of its assets, including, but not limited to, all personal property, fixtures, goods, stock, inventory, equipment, furniture, furnishings, accounts receivable, bank deposits, cash, promissory notes, cash value and proceeds


 


 




  





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MISC 8K00011PG03214


 


 


of life insurance policies, trade names, good will, contracts, claims and demands belonging to the Assignor, books, records, books of account, choses in action, judgments, liens, and mortgages held or owned by Assignor, wherever such assets may be located (hereinafter, the "Estate") as such assets are, to the best knowledge and belief of the Assignor, set forth on Exhibit B annexed hereto.


 


The Assignee shall take possession of and administer the Estate in accordance with the provisions of O.C.G.A. § 18-2-40, et seq., and may continue to operate Assignor's business for a limited period of time, with reasonable dispatch, in order to liquidate and maximize the value of the assets of the Estate and convert the Estate into money, collect all claims and demands hereby assigned as may be collectible, and pay and discharge all reasonable attorneys fees, expenses, costs, and disbursements in connection with the execution and administration of this assignment (hereinafter, the "Administrative Expenses") from the proceeds of such liquidations and collections. The Administrative Expenses are agreed to be five thousand dollars only ($5,000.00).


 


The Assignee shall then pay and discharge in full, to the extent that funds are available in the Estate after payment of the Administrative Expenses as set forth above, all of the debts and liabilities now due from the Assignor, including interest on such debts and liabilities. If funds in the Estate are insufficient to pay all debts and liabilities in full, then proceeds shall be paid as follows according to the categories listed on Exhibit A attached hereto: (i) the Assignee shall first pay to creditors with valid and perfected liens on and security interests in the assets sold (the "Secured Creditors") (hereinafter, all such liens and security interests are referred to as "Liens") all proceeds of the sale of the assets to which such Liens attach in the order of priority established under applicable Georgia law; (ii) after payment in full of all creditors with Liens on


 


 


 




  





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MISC BK0001 1PG0325


 


the assets sold, the Assignee shall pay any taxing authorities that do not have Liens on the assets sold (the "Taxing Authorities"); and (iii) after payment in full of the Taxing Authorities, the Assignee shall pay the remaining proceeds to general unsecured creditors (including any creditors holding Liens that have deficiency claims after payment of the proceeds from the sale of assets to which such Liens attach) (the "Unsecured Creditors") on a pro rata basis.


 


In the event all debts and liabilities are paid in full, any funds in the Estate shall be returned to the Assignor.


 


To accomplish the purposes of this assignment, the Assignor hereby appoints the Assignee its true and lawful attorney, irrevocable, with full power and authority to do all acts and things which may be necessary to execute the assignment hereby created; to demand and recover from all persons all assets of the Estate; to sue for the recovery of such assets; to execute, acknowledge, and deliver all necessary deeds, instruments, and conveyances; and to appoint one or more attorneys to assist in carrying out the Assignee's duties hereunder.


 


The Assignor hereby authorizes the Assignee to sign the name of the Assignor to any check, draft, promissory note, or other instrument in writing which is payable to the order of Assignor, or to sign the name of the Assignor to any instrument in writing, whenever it shall be necessary to carry out the purposes of this assignment.


 


At and from time to time following the date hereof, Assignor shall, and shall cause its respective affiliates, directors, officers, personnel, independent contractors, agents, and other representatives to execute, deliver, file, and record any and all agreements, instruments, certificates, or other documents and take such other actions as may be reasonably necessary or desirable to effectuate the assignment and transfer to Assignee.


 


 


 




  





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MISC BK0001 1PG0326




 


 


The Assignee shall have all rights and powers available under Georgia law, including O.C.G.A. § 11-9-309 and O.C.G.A. § 18-2-54.


 


The Assignee shall be authorized to pay at the closing of a sale all valid claims of creditors holding Liens against the assets sold, such creditors not constituting "preferred creditors" as contemplated by O.C.G.A. § 18-2-53.


 


In accordance with O.C.G.A. § 18-2-46, annexed hereto is an affidavit executed by the Assignor stating that (i) this assignment conveys all property held, claimed, or owned by the Assignor, (ii) all recitals and all estimates of totals and values herein and the list of creditors annexed hereto are true and correct to the best of the Assignor's knowledge and belief, and (iii) this assignment was not made for the purpose of hindering, delaying, or defrauding creditors.


 


 


 


 




  





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MISC BK0001 1PG0327


 


 


 


 


 





 


 


 




  





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MISC BK0001 1PG0328




 




 


 


 


EXHIBIT "A"


 


(List of Creditors)


 


 


 


 


 


 




  





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MISC BK0001 1PG0329




Secured Creditors


 



	
Creditor

	
Address

	 	
Balance total

	 
	
First Citizens Bank

	
3300 Cumberland Blvd., SE Atlanta, GA30339

	 	$	345,575.94	 
	
Hewlett-Packard Financial Services Co

	
P.O. Box 402582 Atlanta, GA 30384-2582

	 	$	40,077.00	 
	
JP Morgan Chase

	
Akron Centre, 9th Floor Oh2-510


Attention Roger Oliver 50 S. Main Street Akron, OH 44308

	 	$	49, 220.76	 
	
Total

	  	 	$	434,873.70	 
	  	  	 	 	 	 





 


 


Taxing Authorities


 



	
Authority

	
Address

	 	
Balance Total

	 
	
US Department of Treasury

	
Ogden, UT 84201-0005

	 	$	35,884.10	 
	
State of Georgia Department of Revenue

	
P.O. Box 105665 Atlanta, GA 30348-5665

	 	$	3,936.14	 
	
Georgia Department of Labor

	
PO Box 740234 Atlanta GA 30374

	 	$	0.00	 
	
Gwinnett County Tax Commissioner

	
75 Langley Dr, Lawrenceville, GA 30046

	 	$	0.00	 
	
Total

	  	 	$	39,820.24	 





 


 


Unseccured Creditors


 



	  

Name

	
Address

	
City

	
Stat


e

	 	
Zip

	 	 	
Amount

	 
	
Alan Luce

	
7 South Point Drive

	
Asheville

	
NC

	 	 	28804	 	 	$	2,720.14	 
	
Arochi,


Marroquin & Lindner

	
Insurgentes Sur 1605- Piso 20

	
Col. San


Jose


Insurgentes

	
MEX


ICO

	 	 	03900	 	 	$	5,086.97	 
	
AVS Computer


Services

	
4482 Commerce Drive, Suite 106

	
Buford

	
GA

	 	 	30518	 	 	$	6,387.23	 
	
Baby IQ Media

	
The Copper Room, The Deva Centre, Trinity Way

	
Manchester

	
U.K.

	 	
M37BG

	 	 	$	17,875.75	 
	
Howard Bowen do Robert N.

	
3490 Piedmont Rd NE, Suite 400

	
Atlanta,

	
GA

	 	 	30305-4808	 	 	$	350,000.00	 





 


 


 




  





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MISC BK0001 1PG0330




 


 



	
Dokson, Ellis Funk, P.C.

	
One Securities Center

	  	  	 	 	 	 	 	 
	
Bozeman & Associates

	
9815 Gloucester Drive

	
Beverly Hills

	
CA

	 	 	90210	 	 	$	827.75	 
	
Business Mailing Services

	
163 Breakstone Drive

	
Dahlonega

	
GA

	 	 	30533	 	 	$	1,308.85	 
	
Casey Gilson P.C.

	
Six Concourse Pkwy., Suite 2200

	
Atlanta

	
GA

	 	 	30328	 	 	$	3,266.84	 
	
De Las Carreras & Chatoupka

	
Maipu 757, 5th Floor

	
Buenos


Aires

	
ARG


ENTI


NA

	 	
C1006AC1

	 	 	$	784.80	 
	
Deacons

	
5th Floor, Alexandra House, 18 Chater Rd., Central

	
Central 1

	
HON


G


KON


G

	 	
DX-009010

	 	 	$	359.12	 
	
Fedex (Account#


2519-2330-2)

	
P.O. Box 660481

	
Dallas

	
TX

	 	 	75266-0481	 	 	$	1,082.82	 
	
Fineline Technologies, Inc.

	
P.O. Box 921933

	
Norcross

	
GA

	 	 	30010	 	 	$	900.31	 
	
Fiscal Integrity

	
P.O. Box 464306

	
Lawrencevill


e

	
GA

	 	 	30042	 	 	$	15,100.02	 
	
FLM Group LLC

	
8 Hop Brook Lane

	
Holmdel

	
NJ

	 	 	07733	 	 	$	150,000.00	 
	
Gwinnett


Chamber of Commerce

	
6500 Sugarloaf Pkwy

	
Duluth

	
GA

	 	 	30097	 	 	$	3,500.00	 
	
Tracie Hicks

	
P.O. Box 1953

	
Loganville

	
GA

	 	 	30052	 	 	$	670.00	 
	
Lee B. Beitchman

	
PO Box 7929

	
Atlanta

	
GA

	 	 	30357	 	 	$	2,145.00	 
	
Mada Design Inc

	
630 Third Ave, Fourteenth Floor

	
New York

	
NY

	 	 	10017	 	 	$	7,500.00	 
	
Mary Meyer

	
1 Teddy Bear Lane, PO Box 275

	
Townsend

	
VT

	 	 	05353	 	 	$	673.00	 
	
Momsen, Leonardos & CIA

	
Rua Teofilo Ottoni, 63-10 Andar Centro

	
Rio De


Jeneiro- RJ

	
BRA


ZIL

	 	 	20.090-080	 	 	$	4,114.89	 
	
Multivision Productions Inc.

	
109 Agora Lane, Suite 5396

	
Ellijay

	
GA

	 	 	30540	 	 	$	73.52	 
	
Packaging & Design Co.

	
4600 Stonegate Industrial Blvd.

	
Stone


Mountain

	
GA

	 	 	30083	 	 	$	517.47	 
	
Plumfield


Financial


Services, LLC

	
P.O. Box 23

	
Grayson

	
GA

	 	 	30017	 	 	$	1,991.39	 
	
Productivity PR, Inc.

	
22801 Ventura Blvd., Suite 207

	
Woodland


Hills

	
CA

	 	 	91364	 	 	$	8,100.00	 
	
Ridout & Maybee

	
225 King Street West, 10th Floor

	
Toronto

	
ONT


ARI


0

	 	 	M5V 3M2	 	 	$	1,283.72	 
	
Salem Media of Georgia - The


Fish

	
2970 Peachtree Rd., NW, Suite 700

	
Atlanta

	
GA

	 	 	30305	 	 	$	3,960.00	 
	
Sally Randall Design

	
7840 Wilson Farm Rd.

	
Summerfield

	
NC

	 	 	27358	 	 	$	1,750.00	 
	
Sheppard, Mullin, Richter &

	
17th Floor, Four Embarcadero Center

	
San


Fransisco

	
CA

	 	 	94111-4106	 	 	$	100,000.00	 





 


 


 




  





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MISC BK0001 1PG0331




 




	
Hampton

	  	  	  	 	 	 	 	 	 
	
Spoor Fisher

	
P.O. Box 454

	
Pretoria,


0001

	 	 	
SOUTH AFRICA

	 	 	$	858.00	 
	
STA, Inc.

	
52 Lorraine Drive

	
North York

	
ONT


ARI


0

	 	 	M2N 2E6	 	 	$	400.00	 
	
Stephen Gould Corporation

	
2940 Old Norcross Road # 500

	
Duluth

	
GA

	 	 	30096	 	 	$	26,780.48	 
	
Sycip Salazar Hernandez & Gatmaitan

	
4th Floor, SSHG


Law Centre, 105


Paseo de Roxas

	
Makati City

	 	 	
PHILIPPINES

	 	 	$	241.95	 





 



	
Technicolor

	
3233 Mission Oaks Blvd

	
Camarillo

	
CA

	 	 	93012	 	 	$	132,449.79	 
	
The Cannary

	
727 South Main Street

	
Burbank

	
CA

	 	 	91506	 	 	$	4,865.00	 
	
Tycoon Entertainment Grp

	
Presa Salinillas,


370-904

	
Col.


Irrigacion

	
MEXIC


0

	 	 	11500	 	 	$	6,334.00	 
	
University of Texas at Austin

	
Office of Accounting, PO Box 7159

	
Austin

	
TX

	 	 	78713-7159	 	 	$	26,074.21	 
	
Wildwood Lake

	
P.O. Box 3608

	
Suwanee

	
GA

	 	 	30024	 	 	$	14,707.35	 
	
Advanta Bank Corporation

	
P.O. Box 30715

	
Salt Lake


City

	
UT

	 	 	84130-0715	 	 	$	15,048.79	 
	
American Express

	
P.O. Box 981535

	
EL Paso

	
TX

	 	 	79998-1535	 	 	$	10,238.46	 
	
American Express

	
P.O. Box 981535

	
EL Paso

	
TX

	 	 	79998-1535	 	 	$	12,153.74	 
	
American Express

	
P.O. Box 981535

	
EL Paso

	
TX

	 	 	79998-1535	 	 	$	4,535.15	 
	
Bank of America

	
P.O. Box 15028

	
Wilmington

	
DE

	 	 	19850-5028	 	 	$	12,838.13	 
	
Bank of America

	
P.O. Box 15184

	
Wilmington

	
DE

	 	 	19850-5184	 	 	$	10,788.73	 
	
Bank of America

	
P.O. Box 15184

	
Wilmington

	
DE

	 	 	19850-5184	 	 	$	16,501.63	 
	
Bank of America

	
P.O. Box 15184

	
Wilmington

	
DE

	 	 	19850-5184	 	 	$	27,727.19	 
	
Bank of America

	
P.O. Box 15026

	
Wilmington

	
DE

	 	 	19850-5026	 	 	$	20,832.50	 
	
Bank of North Georgia

	
Commerical


Customer Support, PO Box 23061

	
Columbus

	
GA

	 	 	31902-3061	 	 	$	5,008.50	 
	
HSBC for Best Buy

	
P.O. Box 4160

	
Carol


Stream

	
IL

	 	 	60197-4160	 	 	$	931.10	 
	
Capital One Bank

	
P.O. Box 30285

	
Salt Lake


City

	
UT

	 	 	84130-0285	 	 	$	1,256.14	 
	
Capital One Bank

	
P.O. Box 30285

	
Salt Lake


City

	
UT

	 	 	84130-0285	 	 	$	1,367.03	 
	
Capital One Bank

	
P.O. Box 30285

	
Salt Lake


City

	
UT

	 	 	84130-0285	 	 	$	4,186.60	 
	
Chase Bank

	
P.O. Box 15298

	
Wilmington

	
DE

	 	 	19850-5298	 	 	$	14,175.67	 
	
Chase Bank

	
P.O. Box 15298

	
Wilmington

	
DE

	 	 	60120	 	 	$	3,336.31	 
	
Chase Bank

	
P.O. Box 15298

	
Wilmington

	
DE

	 	 	19850-5298	 	 	$	14,870.37	 
	
CitiCards

	
P.O. Box 6235

	
Sioux Falls

	
SD

	 	 	57117-6235	 	 	$	10,510.95	 
	
Home Depot Credit Services

	
P.O. Box 653002

	
Dallas

	
TX

	 	 	75265-3002	 	 	$	2,205.55	 
	
Home Depot Credit Services

	
P.O. Box 653002

	
Dallas

	
TX

	 	 	75265-3002	 	 	$	12,266.33	 







 


 


 




  





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MISC BK0001 1PG0332




 



	
Home Depot Credit Services

	
P.O. Box 653002

	
Dallas

	
TX

	 	 	75265-3002	 	 	$	4,412.82	 
	
Home Depot

	
P.O. Box 689147

	
Des Moines

	
IA

	 	 	50368-9147	 	 	$	8,133.83	 
	
Lowe's Business Acct!GEMB

	
P.O. Box 981401

	
EL Paso

	
TX

	 	 	79998-1401	 	 	$	2,427.03	 
	
Office Max

	
P.O. Box 4160

	
Carol


Stream

	
IL

	 	 	60197-4160	 	 	$	2,616.96	 
	
Staples

	
P.O. Box 689020

	
Des Moines

	
IA

	 	 	50368-9020	 	 	$	1,512.14	 
	
Suntrust Bank

	
P.O. Box 4997

	
Orlando

	
FL

	 	 	32802-4997	 	 	$	25,204.95	 
	
Wells Fargo

	
WF Business Direct, P.O. Box 348750

	
Sacramento

	
CA

	 	 	95834	 	 	$	14,816.43	 
	
Total

	  	  	  	 	 	 	 	 	$	1,164,593.40	 










 


TOTAL SECURED, UNSECURED & TAXES: $1,639,287.34


 


 




  





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MISC BK0001 1PG0333




 


 


 


EXHIBIT "B"


 


(List of Assets)


 


 


 




  





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MISC BK0001 1PG0334




Real Estate None owned Cash



	
Description

	 	
Cash Balance

	 
	  	 	 	 
	
Cash on Deposit

	 	$	545.23	 
	  	 	$	545.23	 










 


Accounts Receivable



	
Company

	 	
Total

	 
	
Allied Trade Group

	 	$	20.40	 
	
Bayview Entertainment, LLC

	 	$	16,074.60	 
	
Big Kids Productions

	 	$	1,836.72	 
	
Blanchard's Office Supply

	 	$	169.70	 
	
Camp Fire Store (Meacham)

	 	$	235.57	 
	
Christian Book Distributors

	 	$	318.00	 
	
ConsumerVision

	 	$	4,617.60	 
	
Destination Rewards

	 	$	663.55	 
	
Greekshops.com

	 	$	100.40	 
	
Hiwcity/Branch4u, Inc.

	 	$	208.45	 
	
Kazoo & Co.

	 	$	250.74	 
	
Madera Video

	 	$	727.75	 
	
Right Start/ Little Rock NEW

	 	$	192.00	 
	
Right Start/Chino NEW

	 	$	432.00	 
	
Santa Barbara Museum of Art

	 	$	-60.50	 
	
Studio 4 Networks, Inc.

	 	$	500.00	 
	
The Teacher's Aid, Inc.

	 	$	329.48	 
	
Trinity Broadcasting Network

	 	$	15,000.00	 
	
UnbeatableSale. com , Inc.

	 	$	112.20	 
	
Total

	 	$	41,728.66	 










 


Inventory


 



	
Type

	 	
Book Value

	 	 	
Liquidation Value

	 
	  	 	 	 	 	 	 
	
Inventory

	 	$	129,883.55	 	 	 	 
	
Consgined to QVC

	 	$	23,400.00	 	 	 	 
	
Total

	 	$	153,283.55	 	 	$	25,000.00	 





 


 


 


 




  





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MISC BK0001 1PG035




 


 


 


Fixed Assets


 



 



	
DescriptionLiquidation Value

	 	 	 
	 	 	 	 
	 Office  	 	$	10,000.00	 
	 	 	 	 	 
	 Total   	 	$	10,000.00	 
	 	 	 	 	 
	
Other

	 	 	 	 
	 	 	 	 	 
	
Certain intellectual property that has an undetermined value.

	 	 	 	 
	 	 	 	 	 
	 Total Cash, A/R, Inventory & Fixed Assets:	 	$	77,723.89	 





 




 


 


 




  





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MISC BK0001 1PG036







AFFIDAVIT OF ASSIGNOR


 


The Brainy Baby Company, LLC


 


Georgia, Gwinnett County


 


And now comes The Brainy Baby Company, LLC.., by and through Dennis Fedoruk, its Managing Member, the Assignor named in the foregoing Deed of Assignment, and on oath says that (i) the said assignment conveys all property held, claimed or owned by it, the said Assignor, at the time of making the assignment; (ii) all recitals and all estimates of totals and values therein and all listed creditors are true to the best of his knowledge and belief; (iii) the debts set out as due to the secured and general unsecured creditors are bona fide, just, true and unpaid; and (iv) this assignment is not made for the purpose of hindering, delaying or defrauding creditors.


 





 


 


 


 


 


 


 


 


 


 




  





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MISC BK0001 1PG036







 


ACCEPTANCE OF ASSIGNEE


 


Georgia, Gwinnett County


 


Asset Recovery Associates, LLC, the Assignee, hereby accepts the trust created by the foregoing Deed of Assignment and agrees that it will faithfully and without delay perform the conditions thereof and satisfy the duties imposed therein.


 


In witness whereof I have hereunto set my hand this 21st day of September, 2010.


 


 


 





 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


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