Document:

Unassociated Document

    
       

    

    Exhibit
      10.40

     

    DELTA
      MUTUAL, INC.

    6%
      PROMISSORY NOTE

     

    
      	
              $16,900

            	
              May
                14, 2008

            
	 	 
	 	
              Sellersville,
                Pennsylvania

            

    

    

    FOR
      VALUE
      RECEIVED, DELTA MUTUAL INC., a Delaware corporation (the "Company"),
      with
      offices at 111 North Branch Street, Sellersville, PA 18960, promises to pay
      to
Security
      Systems International, Inc.,
      a
      Delaware corporation, (the "Lender"),
      with
      a mailing address of 9034 East Caribbean Lane, Scottsdale, AZ 85260, in lawful
      money of the United States of America, the principal sum of Sixteen Thousand
      Nine Hundred Dollars ($16,900), together with interest from the date of this
      Note on the unpaid principal balance at a rate equal to six percent (6.0%)
      per
      annum, computed on the basis of a year of 360 days. All unpaid principal,
      together with any then unpaid and accrued interest, shall be due and payable
      at
      any time after the earlier of each of (i)the Maturity Date (as defined below),
      or (ii)when, upon or after the occurrence of an Event of Default (as defined
      below), such amounts are declared due and payable by the Lender or made
      automatically due and payable in accordance with the terms hereof.

     

    The
      following is a statement of the rights of the Lender and the conditions to
      which
      this Note is subject, and to which the Lender, by the acceptance of this Note,
      agrees:

     

    1.
      Definitions.
As
      used in this Note, the following capitalized terms have the following
      meanings:

     

    "Company"
      includes the corporation initially executing this Note and any Person which
      shall succeed to or assume the obligations of the Company under this
      Note.

     

    1.2
      "Event of Default" has the meaning given in Section 5 hereof.

     

    1.3
      "Lender" shall mean the Person specified in the introductory paragraph of this
      Note. 

     

    1.4
      "Maturity Date" shall mean six months from the date hereof.

     

    1.5
      "Obligations" shall mean all obligations, owed by the Company to the Lender,
      now
      existing or hereafter arising under or pursuant to the terms of this Note.
      

     

    1.6 "Person"
      shall mean and include an individual, a partnership, a corporation (including
      a
      business trust), a joint stock Company, a limited liability Company, an
      unincorporated association, a joint venture or other entity or a governmental
      authority.

     

    2.
      Interest.
All
      accrued and unpaid interest on this note shall be due and payable on the
      Maturity Date.

     

    3.
      Repayment at the Company’s Option.At
      any time after the date hereof and prior to the maturity Date, the Company
      my
      repay this Note, including all accrued interest, without penalty or premium,
      in
      whole or in part; provided that such repayment will be applied first to the
      payment of unpaid interest accrued n this Note, and second, to payment of the
      principal amount of this Note.

     

    4.
      Representations and Warranties of The Lender.
      The
      Lender represents and warrants to the Company upon the acquisition of the Note
      as follows:

     

    4.1
      Binding Obligation.
      The
      Lender has full legal capacity, power and authority to execute and deliver
      this
      Note and to perform its obligations hereunder. This Note is a valid and binding
      obligation of the Lender, enforceable in accordance with its terms, except
      as
      limited by bankruptcy, insolvency or other laws of general application relating
      to or affecting the enforcement of creditors' rights generally and general
      principles of equity.

    4.2
      Own Account.
      The
      Lender is purchasing this Note for his own account for investment, not as a
      nominee or agent, and not with a view to, or for resale in connection with,
      the
      distribution thereof. The Lender has such knowledge and experience in financial
      and business matters that the Lender is capable of evaluating the merits and
      risks of such investment, is able to incur a complete loss of such investment
      and is able to bear the economic risk of such investment for an indefinite
      period of time. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.
      Events of Default.
      The
      occurrence of any of the following shall constitute an "Event of Default" under
      this Note:

     

    5.1
      Failure to Pay.
      If the
      Company shall fail to pay any principal or interest payment or any other payment
      required under the terms of this Note on the date due and such payment shall
      not
      have been made within fifteen (15) business days of the Company's receipt of
      written notice from the Lender of such failure to pay; 

    5.2
      Voluntary Bankruptcy or Insolvency Proceedings. The
      Company shall (i)apply for or consent to the appointment of a receiver, trustee,
      liquidator or custodian of itself or of all or a substantial part of its
      property, (ii)be unable, or admit in writing its inability, to pay its debts
      generally as they mature, (iii)make a general assignment for the benefit of
      its
      or any of its creditors, (iv)be dissolved or liquidated, (v)become insolvent
      (as
      such term may be defined or interpreted under any applicable statute),
      (vi)commence a voluntary case or other proceeding seeking liquidation,
      reorganization or other relief with respect to itself or its debts under any
      bankruptcy, insolvency or other similar law now or hereafter in effect or
      consent to any such relief or to the appointment of or taking possession of
      its
      property by any official in an involuntary case or other proceeding commenced
      against it, or (vii)take any action for the purpose of effecting any of the
      foregoing; or

    5.3
      Involuntary Bankruptcy or Insolvency Proceedings. Proceedings
      for the appointment of a receiver, trustee, liquidator or custodian of the
      Company or of all or a substantial part of the property thereof, or an
      involuntary case or other proceedings seeking liquidation, reorganization or
      other relief with respect to the Company or the debts thereof under any
      bankruptcy, insolvency or other similar law now or hereafter in effect shall
      be
      commenced and an order for relief entered or such proceeding shall not be
      dismissed or discharged within sixty (60) days of
      commencement.

     

    6.
      Rights of The Lender upon Default.
      Upon the occurrence or existence of any Event of Default (other than an Event
      of
      Default referred to in Sections 5.2 and 5.3) and at any time thereafter
      during the continuance of such Event of Default, the Lender may, by written
      notice to the Company, declare all outstanding Obligations payable by the
      Company hereunder to be immediately due and payable without presentment, demand,
      protest or any other notice of any kind, all of which are hereby expressly
      waived. Upon the occurrence or existence of any Event of Default described
      in
      Sections 5.2 and 5.3, immediately and without notice, all outstanding
      Obligations payable by the Company hereunder shall automatically become
      immediately due and payable, without presentment, demand, protest or any other
      notice of any kind, all of which are hereby expressly waived. In addition to
      the
      foregoing remedies, upon the occurrence or existence of any Event of Default,
      the Lender may exercise any other right, power or remedy otherwise permitted
      to
      it by law, either by suit in equity or by action at law, or
      both.

     

    7.
      Successors and Assigns.
      Subject to the restrictions on transfer described in Sections 9 and 10
      below, the rights and obligations of the Company and the Lender of this Note
      shall be binding upon and benefit the successors, assigns, heirs, administrators
      and transferees of the parties.

     

    8.
      Waiver and Amendment.
      Any
      provision of this Note may be amended, waived or modified upon the written
      consent of the Company and the Lender.

     

    9.
      Transfer of this Note.
      This
      Note may not be sold, assigned or transferred by the Lender. The Company shall
      treat the Lender hereof as the owner and holder of this Note for the purpose
      of
      receiving all payments of principal and interest hereon and for all other
      purposes whatsoever, whether or not this Note shall be overdue, and the Company
      shall not be affected by notice to the contrary.

     

    10.
      Assignment by The Company.
      Neither this Note nor any of the rights, interests or obligations hereunder
      may
      be assigned, by operation of law or otherwise, in whole or in part, by the
      Company without the prior written consent of the Lender.

     

    11.
      Notices.
      All
      notices, requests, demands, consents, instructions or other communications
      required or permitted hereunder shall in writing and faxed, mailed or delivered
      to each party at the respective addresses or facsimile numbers of the parties.
      All such notices and communications shall be effective (a)when sent by Federal
      Express or other overnight service of recognized standing, on the business
      day
      following the deposit with such service; (b)when mailed, by registered or
      certified mail, first class postage prepaid and addressed as aforesaid through
      the United States Postal Service, upon receipt; (c)when delivered by hand,
      upon
      delivery; and (d)when faxed, upon confirmation of receipt.

     

    
      
        
        

      

      
        Page
          2

        
          

        

      

      
        
        

      

    

     

    
       

    

     

    12.
      Waivers.
      The
      Company hereby waives notice of default, presentment or demand for payment,
      protest or notice of nonpayment or dishonor and all other notices or demands
      relative to this instrument.

     

    13.
      Governing Law.
      This Note and all actions arising out of or in connection with this Note shall
      be governed by and construed in accordance with the laws of the Commonwealth
      of
      Pennsylvania, without regard to the conflicts of law provisions of the
      Commonwealth of Pennsylvania, or of any other state.

     

    IN
      WITNESS WHEREOF, The Company has caused this Note to be issued as of the date
      first written above.

     

    
      	 	
              DELTA
                MUTUAL, INC.

            
	 	
              a
                Delaware corporation

            
	 	 
	 	
              By:   /s/
                Peter F.
                Russo                                            

            
	 	
              Name:  
                Peter
                F. Russo

            
	 	
              Title:    
                      President
                & CEO

            

    

     

    
      
        
        

      

      
        Page
          3AGREEMENT

    

    This
      AGREEMENT (the “Agreement”)
      is
      made as of the 2nd
      day of
      July, 2008, by and between:

     

    TIFFANY
      WALSH,
      businessperson, having an address for notice and delivery located at c/o 11
      Thornhill Drive, Suite 216, Dartmouth, Nova Scotia, Canada, B3B 1R9

     

    (the
      “Seller”
      )

     

    and

    
       

        JIANGUO
          WANG,
          businessperson, having an address for notice and delivery located at Room
          902
          No. 6, Lane 501 Wan Zhen Road, Shaghai, 200333, China

         

      

    

    (the
      “Purchaser”).
      

    

    R
      E C I T A L S:

    

    FIRST,
      Seller is
      the
      owner of an aggregate of 1,250,010 restricted shares of common stock of Buzz
      Media Ltd., a Nevada corporation (the “Company”);
      

    

    SECOND,
      Seller desires
      to sell 1,250,010 restricted shares of common stock of the Company (the
“Shares”)
      to the
      Purchaser on the terms and conditions provided for in this
      Agreement.

    

    THIRD,
      Purchaser desires to purchase the Shares from the Seller on the terms and
      conditions provided for in this Agreement.

    

    NOW,
      THEREFORE, in consideration of the foregoing and of the mutual covenants and
      agreements hereinafter set forth, the parties hereto agree as
      follows:

    

    I.
      SALES OF THE SHARES.

    

    1.01 Shares
      being Sold.
      Subject
      to the terms and conditions of this Agreement, the Seller is selling, assigning,
      and delivering the Shares to the Purchaser at the closing provided for in
      Section 1.03 hereof (the “Closing”),
      free
      and clear of all liens, charges, or encumbrances of whatsoever
      nature.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    1.02 Consideration.
      The
      Seller acknowledges that Purchaser is purchasing the Shares for consideration
      of
      CDN $300,000.00 which shall be delivered to the Seller within 45 days from
      the
      date of execution of this Agreement by way of a certified cheque, bank draft,
      or
      wire transfer in accordance with the instructions to be provided by the Seller
      at the Closing.

    

    1.03 Closing.
      The
      Closing of the transactions provided for in this Agreement is taking place
      on or
      before July 14, 2008, and no sooner than after the tenth day after the filing
      of
      a Schedule 14F-1 with the SEC on EDGAR and the mailing of such Schedule 14F-1
      to
      the registered shareholders of the Company. At the Closing, the Seller will
      deliver to the Purchaser duly endorsed stock certificates representing the
      Shares. 

    

    II.
      REPRESENTATIONS AND WARRANTIES BY THE SELLER.

    

    The
      Seller hereby represents and warrants to the Purchaser that to the best of
      the
      Seller’s knowledge, with the intent that the Purchaser will rely on these
      representations and warranties in entering into this Agreement, and in
      concluding the purchase and sale contemplated by this Agreement,
      that:

    

    2.01 Organization,
      Capitalization, etc.

    

    (a)
      The
      Company is a corporation duly organized, validly existing, and in good standing
      under the laws of the state of Nevada, and is qualified in no other
      state.

    

    (b)
      The
      authorized capital stock of the Company consists of 50,000,000 shares of common
      stock with a par value of $0.001 per share. As of the date of this Agreement,
      2,000,010 shares of common stock are validly issued and outstanding, fully
      paid
      and non-assessable. There are no outstanding options or other agreements of
      any
      nature whatsoever relating to the issuance by the Company of any shares of
      its
      capital stock.

    

    (c)
      The
      Company has the corporate power and authority to carry on its business as
      presently conducted.

    

    2.02 No
      Violation.
      Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby will constitute a violation or default under
      any term or provision of the Articles of Incorporation or Bylaws of the Company,
      or of any contract, commitment, indenture, other agreement or restriction of
      any
      kind or character to which the Company or the Seller is a party or by which
      the
      Company or the Seller is bound.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.03 Authority.
       The
      Seller has the power and authority to execute and deliver this Agreement, to
      perform its obligations hereunder and to consummate the transactions
      contemplated hereby. This Agreement has been duly executed and delivered by
      the
      Seller and
      constitutes a valid and binding instrument, enforceable in accordance with
      its
      terms.

    

    2.04 Title
      to the Shares.
      The
      Seller is the sole legal and beneficial owner of the Shares in the Company
      and
      has good and marketable title thereto. All of the Shares owned by the Seller
      are
      owned free and clear of any liens, claims, options, charges, or encumbrances
      of
      whatsoever nature. The Seller has the unqualified right to sell, assign, and
      deliver the Shares, and, upon consummation of the transactions contemplated
      by
      this Agreement, the Purchaser will acquire good and valid title to the Shares,
      free and clear of all liens, claims, options, charges, and encumbrances of
      whatsoever nature. The Purchaser acknowledges that the Shares being acquired
      from the Seller are restricted securities so that such Shares will have trading
      restrictions.

    

    2.05 Control
      Shares.
      The
      Certificates representing the Shares delivered pursuant to this Agreement are
      owned by an affiliate of the Company and accordingly are restricted securities
      as that term is defined in Rule 144 of the Securities Act of 1933 (the
“Act”).
      As
      such, upon transfer of the Shares to the Purchaser, the Purchaser will begin
      a
      new holding period as set forth in Rule 144 and the Shares may not be resold
      without registration or pursuant to an exemption from registration for the
      holding period set forth in Rule 144. Accordingly, certificates issued to the
      Purchaser will contain an appropriate restrictive legend. 

    

    2.06 Undisclosed
      Liabilities.
      Except
      to the extent reflected in the balance sheet of the Company, the Company, as
      of
      that date, had no material liabilities or material obligations of any nature,
      whether absolute, accrued, contingent, or otherwise and whether due or to become
      due. Further, the Seller does not know or has no reasonable ground to know
      of
      any basis for the assertion against the Company of any material liability or
      material obligation as of the date first written above of any nature or in
      any
      amount not fully reflected or reserved against in the financial
      statements.

    

    2.07 Tax
      Returns.
      The
      Company has duly filed all tax reports and returns required to be filed by
      it
      and has fully paid all taxes and other charges claimed to be due from it by
      federal, state, or local taxing authorities (including without limitation those
      due in respect of its properties, income, franchises, licenses, sales, and
      payrolls); there are no liens upon any of the Company’s property or assets;
      there are not now any pending questions relating to, or claims asserted for,
      taxes or assessments asserted against the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.08 Title
      to Properties; Encumbrances.
      The
      Company has good and marketable title to all of its properties and assets,
      real
      and personal, tangible and intangible. 

    

    2.09 No
      Claims; Indemnity.
      There
      are currently no claims or lawsuits threatened or pending against the Company
      or
      the Seller as the owner of its shares, and Seller is unaware of any conditions
      or circumstances that would lead to or justify the filing of any claim or
      lawsuit. If, after the consummation of this transaction and the transfer of
      the
      Shares from the Seller to the Purchaser any claim or lawsuit shall be filed
      against the Company or the Purchaser (as
      the
      owner of the Shares), arising out of any circumstances whatsoever prior to
      transfer of the Shares,
      the
      Seller shall defend, indemnify and hold the Purchaser harmless from and against
      any and all such claims or lawsuits or any awards or judgments granted
      thereunder.

    

    2.10 Affiliate.
      The
      Seller is, or has been during the past ninety (90) days, an officer, director,
      10% or greater shareholder or “affiliate” of the Company, as that term is
      defined in Rule 144 promulgated under the Act.

    

    III.
      REPRESENTATIONS AND WARRANTIES BY THE PURCHASER.

    

    The
      Purchaser hereby represents and warrants to the Seller that to the best of
      the
      Purchaser’s knowledge, with the intent that the Seller will rely on these
      representations and warranties in entering into this Agreement, and in
      concluding the purchase and sale contemplated by this Agreement,
      that:

    

    3.01 Representations
      Regarding the Acquisition of the Shares.

    

    (a)
      The
      undersigned Purchaser understands that the SHARES HAVE NOT BEEN APPROVED OR
      DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR ANY
      STATE
      OR FOREIGN SECURITIES AGENCIES;

    

    (b)
      The
      Purchaser is not an underwriter and is acquiring the Seller’s Shares solely for
      investment for the account of the Purchaser and not with a view to, or for,
      resale in connection with any distribution within the meaning of the Act (United
      States Securities Act of 1933, as amended), any applicable state securities
      acts
      or any other applicable laws;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)
      The
      Purchaser understands the speculative nature and risks of investments associated
      with the Company and confirms that the Shares are suitable and consistent with
      his investment program and that his financial position enables him to bear
      the
      risks of this investment;

    

    3.02 Authority.
      The
      Purchaser has
      the
      power and authority to execute and deliver this Agreement, to perform his
      obligations hereunder and to consummate the transactions contemplated hereby.
      This Agreement has been duly executed and delivered by the Purchaser and
      constitutes a valid and binding instrument, enforceable in accordance with
      its
      terms.

    

    3.03 No
      Violation.
      Neither
      the execution and delivery of this Agreement nor the consummation of the
      transactions contemplated hereby will constitute a violation or default under
      any term or provision of any contract, commitment, indenture, other agreement
      or
      restriction of any kind or character to which the Purchaser is a party or by
      which the Purchaser is bound.

    

    3.04 Rule
      144 Restriction.
      The
      Purchaser hereby agrees that such shares are restricted pursuant to Rule 144
      and
      therefore subject to Rule 144 resale requirements. 

    

    3.05 Restricted
      Period.
      The
      Purchaser understands and agrees that offers and sales of any of the Shares
      prior to the expiration of a period of one year after the date of completion
      of
      the transfer of the Shares (the “Restricted
      Period”)
      as
      contemplated in this Agreement shall only be made in compliance with the safe
      harbor provisions set forth in Regulation S, or pursuant to the registration
      provisions of the Act or
      pursuant to an exemption therefrom, and that all offers and sales after the
      Restricted Period shall be made only in compliance with the registration
      provisions of the Act or an exemption therefrom;

    

    IV.
      SURVIVAL OF REPRESENTATIONS; INDEMNIFICATION.

    

    4.01 Survival
      of Representations.
      All
      representations, warranties, and agreements made by any party in this Agreement
      or pursuant hereto shall survive the execution and delivery hereof for a period
      of one (1) year from and after the Closing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    4.02 Indemnification.
      The
      Seller agrees to indemnify the Purchaser and hold him harmless from and in
      respect of any assessment, loss, damage, liability, cost, and expense
      (including, without limitation, interest, penalties, and reasonable attorneys’
fees) in excess of $5,000.00 in the aggregate, imposed upon or incurred by
      the
      Purchaser resulting from a breach of any agreement, representation, or warranty
      of the Seller. Assertion by a party to their right to indemnification under
      this
      Section 4.02 shall not preclude the assertion by the parties of any other rights
      or the seeking of any other remedies against the opposing party.

    

    V.
      MISCELLANEOUS.

    

    5.01 Expenses.
      All
      fees and expenses incurred by the Purchaser and Seller in connection with the
      transactions contemplated by this Agreement shall be borne by the respective
      parties hereto.

    

    5.02 Further
      Assurances.
      From
      time to time, at the Purchaser’s request and without further consideration, the
      Seller, at his expense, will execute and transfer such documents and will take
      such action as the Purchaser may reasonably request in order to effectively
      consummate the transactions herein contemplated.

    

    5.03 Entire
      Agreement.
      This
      Agreement contains all of the terms agreed upon by the parties with respect
      to
      the subject matter hereof. This Agreement supersedes all prior agreements and
      understandings between the parties with respect to the subject matter hereof.
      This Agreement may be amended only by a written instrument duly executed by
      the
      parties hereto or their respective successors or assigns.

    

    5.04 No
      Assignments.
      Neither
      party may assign nor delegate any of its rights or obligations hereunder without
      first obtaining the written consent of the other party.

    

    5.05 Headings.
      The
      section and paragraph headings contained in this Agreement are for reference
      purposes only and shall not affect in any way the meaning or interpretations
      of
      this Agreement.

    

    5.06 Severability.
      In the
      event that any term, covenant, condition or other provision contained herein
      is
      held to be invalid, void or otherwise unenforceable by any court of competent
      jurisdiction, the invalidity of any such term, covenant, condition, provision
      or
      Agreement shall in no way affect any other term, covenant, condition or
      provision or Agreement contained herein, which shall remain in full force and
      effect. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.07 Governing
      Law.
      The
      situs of this Agreement is the State of Nevada, and for all purposes this
      Agreement will be governed exclusively by and construed and enforced in
      accordance with the laws and Courts prevailing in the State of Nevada, without
      regard to its conflict-of-laws rules.

    

    5.08 Notices.
      All
      notices, requests, demands, and other communications hereunder shall be in
      writing and shall be deemed to have been duly given if delivered or mailed
      (registered or certified mail, postage prepaid, return receipt requested) as
      follows:

    

    If
      to the
      Seller:                  
Tiffany Walsh

    c/o
      11 Thornhill Drive, Suite 216

    Dartmouth,
      Nova Scotia, Canada

    B3B
      1R9

    

    If
      to the Purchaser:   
         Jianguo Wang

    Room
      902
      No. 6

    Lane
      501
      Wan Zhen Road

    Shanghai,
      200333

    China

    

    5.09 Effect.
      In the
      event any portion of this Agreement is deemed to be null and void under any
      state, provincial, or federal law, all other portions and provisions not deemed
      void or voidable shall be given full force and effect.

    

    5.10 Gender
      and Number.
      Words
      importing a particular gender mean and include the other gender and words
      importing a singular number mean and include the plural number and vice versa,
      unless the context clearly indicated to the contrary.

    

    5.11 Counterparts.
      This
      Agreement may be executed simultaneously in several counterparts, each of which
      shall be deemed an original, but all of which together shall constitute one
      and
      the same instrument. Facsimile signatures are acceptable and deemed original
      signatures.

    

    THE
      REST
      OF THIS PAGE IS INTENTIONALLY LEFT BLANK

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
      WITNESS WHEREOF,
      this
      Agreement has been duly executed and delivered by the Seller and the Purchaser,
      on the date first above written.

    

      
        	
                SELLER:

              
	 
	
                 
                  /s/ Tiffany Walsh

              
	
                TIFFANY
                  WALSH

              
	 
	
                PURCHASER:

              
	 
	
                 
                  /s/ Jianguo Wang

              
	
                JIANGUO
                  WANG

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