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				Exhibit 10.31

				

				

			

		

		
			ASSUMPTION OF INDEBTEDNESS AND LOAN AGREEMENT

		

		

		

		THIS ASSUMPTION OF INDEBTEDNESS AND LOAN AGREEMENT made as of the 31st day of December, 2004. (hereinafter referred to as the "Agreement")

		

		B E T W E E N:

		

		                                PILLSBURY HOLDINGS, INC. 

		

		                                (hereinafter called "Pillsbury")

		OF THE FIRST PART

		- and -

		

		                                DORAL EZ INVESTMENTS INC.

		

		                                (hereinafter called the "Lender")

		OF THE SECOND PART

		

		- and -

		

		                                PURE PLAY MEDIA HOLDINGS, INC.

		

		                                (hereinafter called "Pure Play")

		OF THE THIRD PART

		

		- and -

		

		                                PURE PLAY MEDIA, INC.

		

		                                (hereinafter called "PPM")

		OF THE FOURTH PART

		

		

		                                  (Pillsbury, the Lender, Pure Play and PPM being hereinafter
                                  singularly also referred to as a "Party" and collectively
                                  referred to as the "Parties" as the context so requires).

		

		                        WHEREAS Pure Play's wholly-owned subsidiary, PPM, a California corporation, and the Lender entered into a Loan Agreement, dated March 14, 2003 (the "Loan Agreement"), providing for a loan in the amount of CDN$1,000,000 ("Loan #2");

		

		                        AND WHEREAS PPM and the Lender entered into a Loan and Security Amending Agreement, dated March 14, 2003 (the "Loan and Security Amending Agreement") as security for payment of the obligations of PPM to the Lender;

		

		

		

		

		

		

		

		

		                        AND WHEREAS PPM and the Lender entered into a Loan Amending Agreement, dated August 6, 2004 (the "Loan Amending Agreement"), whereby the payments on the principal amount of Loan #2 outstanding were suspended commencing on August 6, 2004, for a period one year and will resume in August, 2005 (the Loan Agreement, the Loan and Security Amending and the Loan Amending Agreement being hereinafter collectively referred to as the "Underlying Loan and Security Agreement");
		

		                        AND WHEREAS PPM, in accordance with the terms and conditions of the Underlying Loan and Security Agreement, currently owes the Lender the sum of CDN$937,499.98 on Loan #2 (the "Principal Sum") at an interest rate of 10% per annum (the "Interest"), which matures on March 14, 2007 (the Principal Sum and the Interest being, collectively, the "Indebtedness"); it being acknowledged and agreed by each of the Parties hereto that, notwithstanding the force and effect and operation of this Agreement, the Underlying Loan and Security Agreement is currently in good standing as between PPM and the Lender and will remain in good standing if this Agreement is terminated for any reason;

		

		                        AND WHEREAS PPM is desirous of assigning the Indebtedness owing from PPM to the Lender to Pillsbury under the Underlying Loan and Security Agreement and the Lender hereby acknowledges and consents to such assignment;

		

		                        AND WHEREAS Pillsbury is desirous of assuming the Indebtedness owing from PPM to the Lender in exchange for Pure Play issuing to Pillsbury 520,107 units (each a "Unit") of Pure Play at a deemed price of US$1.50 per Unit with each Unit consisting of one share of common stock of Pure Play and one share purchase warrant of Pure Play (each a "Warrant"), and with each such Warrant entitling Pillsbury to acquire one additional share of common stock of Pure Play at an exercise price of US$2.50 per share commencing on December 31, 2006, the date which is 24 months from the date of issuance of the Units by Pure Play to Pillsbury and expiring on December 31, 2008, the date that is 48 months from the date of issuance of the Units; in addition to the other terms and conditions of this Agreement hereinafter set out and required by the Parties;

		

		                        AND WHEREAS the parties to this Agreement acknowledge and understand that any Interest that is currently in arrears and owing on the Indebtedness from PPM to the Lender under the Underlying Loan and Security Agreement is going to be capitalized into this Agreement; such that there will be no arrears in Interest on a going forward basis;

		

		                        AND WHEREAS pursuant to the terms and conditions of a certain further "Assumption of Indebtedness and Loan Agreement", dated for reference as executed commensurate with the Agreement (the "First Assumption Agreement"), as entered into among the Parties hereto, Pillsbury thereby assumed the indebtedness owing by PPM to the Lender ("Loan #1") under the terms and conditions of a first Loan Agreement, dated September 19, 2002 as amended on each of March 14, 2003 and August 6, 2004, respectively (collectively, the "First Underlying Loan and Security Agreement"), pursuant to which, among other provisions, Pillsbury has therein agreed to make certain interest and principal sum payments to the Lender 

		

		

		

		

		

		

		

		

		under Loan #1 in consideration of the issuance by Pure Play to Pillsbury, and again into escrow, of certain additional units to acquire both shares and warrants from the treasury of Pure Play;
		

		                        AND WHEREAS Pure Play agrees, notwithstanding and subject to the terms and conditions of the Underlying Loan and Security Agreement and this Agreement, to assume the Indebtedness, and to make the Interest and Principal Sum payments in accordance with the terms and conditions of the Underlying Loan and Security Agreement, upon a default by Pillsbury under this Agreement which is not cured within the time period(s) provided hereinafter and upon the Lender surrendering the Units pledged by Pillsbury as security for the Indebtedness back to Pure Play for cancellation and return to treasury.

		

		                        AND WHEREAS the Parties hereto hereby acknowledge and agree that, in order to maintain this Agreement in good standing, Pillsbury must also maintain the First Assumption Agreement in good standing; failing which the rights and entitlement of Pillsbury under both this Agreement and the First Assumption Agreement will terminate in accordance with their respective terms; and

		

		                        NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby covenant and agree as follows:

			

		

		
			ARTICLE 1 - INTERPRETATION

						

					

		

		
			1.1                   Definitions

		

		For the purposes of this Agreement:

		

		            "Agreement", "hereto", "herein", "hereof", "hereby", "hereunder" and similar expressions refer to this Agreement and not to any particular section or other portion hereof, and include any and every instrument supplemental or ancillary hereto and the expressions "article" or "section" followed by a number mean and refer to the specified article or section of this Agreement.

		            "business day" means a day other than Saturday, Sunday or a statutory holiday in the Province of Ontario;

		            "Event of Default" means any of the events specified in Section 6.1, provided that there has been satisfied any requirement in connection with such event for the giving of notice, or the lapse of time, or the happening of any further condition, event or act;

		            "Indebtedness" includes all Principal Sum and Interest (including interest on overdue interest) and other amounts payable pursuant to the Loan and the Security from time to time outstanding under this Agreement;

		            "Loan" has the meaning given thereto in Section 2.2 hereof;

		

		

		

		

		

		

		

		

		            "Loan Interest Rate" has the meaning given thereto in Section 2.3 hereof;
		            "Maturity Date" means that date as set out in Section 2.5;

		            "person" includes an individual, a partnership, joint venture, a trust, an unincorporated organization or any other association, a corporation and a government or any department or agency thereof and any other entity recognized by law; and

		            "Security" means the Note and any other instrument or agreement which purports to secure the Indebtedness.

			

			1.2                   CDN Dollars

		All dollar amounts referred to in this Agreement are in the lawful money of Canada unless otherwise provided.

			

			1.3                   Extended Meanings

		In this Agreement, where the context requires, the singular number includes the plural and vice versa, the masculine gender includes the feminine and neuter genders and vice versa.

			

			1.4                   Headings

		All headings are included solely for convenience of reference and are not intended to be full or accurate descriptions of the contents thereof.

			

			1.5                   Schedules

		The following schedules are incorporated herein and form part of this Agreement.

		

		                                      Schedule "A"           Indebtedness and Payments

			                                      Schedule "B"           Pledge Agreement

			                                      Schedule "C"           Escrow Agreement

			                                      Schedule "D"           Pooling Agreement

			

			1.6                   Financial Terms and Accounting Rules

		All financial terms employed and calculations provided for herein shall, unless otherwise specifically provided, be interpreted and applied in accordance with generally accepted accounting principles, applied on a consistent basis and applicable on both a consolidated, or combined if appropriate, and unconsolidated basis.

			

		

		
			ARTICLE 2 – ASSIGNMENT AND ASSUMPTION OF THE INDEBTEDNESS

					

				

		

		
			2.1                   Assignment of the Indebtedness

		

		PPM hereby agrees to assign to Pillsbury, and Pillsbury subject to this agreement hereby agrees to accept the assignment of, the Indebtedness owing from PPM to the Lender under Loan #2 as evidenced by the Underlying Loan and Security Agreement.

			

			

			

		

		

		

		

		

		

		2.2                   Assumption of the Indebtedness
		Subject to the terms and conditions hereunder Pillsbury agrees to assume the Indebtedness (also hereinafter referred to as the "Loan") owing from PPM to the Lender in the Principal Sum amount of $937,499.98 having an Interest rate of 10% per annum with a Maturity Date as set out in Section 2.5 by making the Interest and Principal Sum payments as set forth herein in exchange for Pure Play issuing to Pillsbury 520,107 units (each a "Unit") of Pure Play at a deemed issuance price of US$1.50 per Unit, with each Unit consisting of one share of common stock of Pure Play and one Warrant of Pure Play, and with each such Warrant entitling Pillsbury to acquire one additional share of common stock of Pure Play at an exercise price of US$2.50 per share commencing on December 31, 2006, the date that is 24 months from the date of issuance of the Units by Pure Play to Pillsbury and expiring on December 31, 2008, the date that is 48 months from the date of issuance of the Units.  Notwithstanding the foregoing, the Principal Sum amount of the Loan outstanding at any time together with all Interest, fees and other amounts payable hereunder in connection therewith shall become due and payable upon the occurrence of an Event of Default and upon demand being made therefor by the Lender in accordance with the terms and conditions hereof.

			

			2.3                   Interest Payments

				

			                        (a)        Upon entering into this Agreement, Pillsbury agrees to pay 12 months of Interest on the Loan in advance on December 31, 2004.  After the first 12 months has passed, the Principal Sum amount of the loan outstanding hereunder from time to time shall bear Interest at a rate equal to the Loan Interest Rate calculated and compounded monthly; and shall be payable monthly, in arrears, on the last day of each month during the term hereof.  The Parties acknowledge and agree that the Principal Sum payment shall not be payable by Pillsbury until the happening of the matters referred to in Section 2.5 hereinbelow.

			

			                        (b)        In this Agreement, the Loan Interest Rate shall mean the rate of 13% per annum, calculated monthly, provided that until such date as an Event of Default has occurred, the Lender agrees to waive interest at such rate and Pillsbury shall only be obliged to pay and the Lender shall only receive interest at a rate equal to 10% per annum as set forth in the Underlying Loan and Security Agreement.

			

			                        (c)        Interest shall be due on overdue interest and on such part of the principal amount of the Loan as remains outstanding from time to time, together with interest on overdue interest, at the Loan Interest Rate.

			

			2.4                   Accrued Interest

		

		Notwithstanding the foregoing any interest payment which is due and payable may be postponed and may accrue at the option of the Lender at the Loan Interest Rate.  

			

			2.5                   Payment of the Loan

		In addition the Interest payments required to maintain this Agreement in good standing, the full Principal Sum amount of the Loan shall be due and payable by Pillsbury to the Lender within the later of one (1) year from the date of execution of this Agreement by each Party hereto as set 

		

		

		

		

		

		

		

		

		forth on the front page of this Agreement and the date upon which the shares of Pure Play are listed and posted for trading on any recognized stock exchange and including, without limitation, the NASD Over-the-Counter Bulletin Board.  The Failure by Pillsbury to make any monthly Interest or Principal Sum amount payment hereunder will result in an Event of Default (as hereinafter defined) for the purposes of Articles 6 and 7 of this Agreement.

		

		2.6                   Prepayment
		Pillsbury shall have the right to prepay the entire Principal Sum amount of the Loan at any time without notice or bonus provided that all Interest which has accrued to the date of such prepayment in respect of the Loan and the amount so prepaid, and all fees which had become payable prior to the date of such prepayment, are paid at the time of such prepayment.

			

			2.7                   Place and Manner of Payment

		Payment of the Principal Sum and/or Interest due on any date shall be made by Pillsbury to the Lender by cheque or bank draft, at the City of Mississauga, Province of Ontario, Canada, or at such other place in Ontario as the Lender may direct in writing.  Payment shall be credited to Pillsbury on the day of receipt only if received prior to 2:00 p.m. (Toronto, Ontario, time) and only if the day of receipt is a business day and otherwise shall be credited on the next business day following receipt.  The receipt of such cheque shall satisfy and discharge the liability for the Principal Sum and/or Interest to the extent of the sums represented thereby unless such cheque is not paid on presentation.  Any payment of Principal Sum or Interest shall be made in Canadian funds; or if made in U.S. funds the conversion rate shall be at the exchange rate (purchase rate) as quoted by the Royal Bank of Canada (at its main branch in Toronto) on the date of payment.

			

			2.8                   No Set-Off

		The obligations of Pillsbury to make all payments of Principal Sum and Interest and all other amounts due hereunder shall be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, any set-off, compensation, counter-claim, recoupment, defence or other right which Pillsbury, PPM or Pure Play may have against the Lender or anyone else for any reason whatsoever.

			

		

		
			ARTICLE 3 - REPRESENTATIONS AND WARRANTIES

						

					

		

		
			3.1                   Representations and Warranties

		

		Pillsbury represents and warrants to the Lender, and acknowledges that the Lender is relying on such representations and warranties in entering into this Agreement, as follows:

			

			                        (a)           Status. Pillsbury has been duly incorporated and organized and is a valid and subsisting corporation under the laws of Nevis, and has full capacity and power to carry on its business; Pillsbury has the corporate power and is duly authorized to borrow the moneys herein contemplated and to enter into, execute, deliver and perform this Agreement;

			

			                        (b)           Non-Violation of Other Instruments and Authorization. 

			

			

			

			

		

		

		

		

		

		

		

				
					
							The assumption of the Indebtedness by Pillsbury, the entering into and performance of this Agreement, and any other agreement additional or collateral hereto or thereto do not conflict and will not conflict with, and does not result, and will not result with the passage of time or otherwise in a breach or violation of, or constitute a default under, its articles of incorporation, as amended, or its by-laws or any of the covenants or the provisions contained in any agreement to which it is a party or by which it or its assets are or may be bound or to which it or its assets are or may be subject and does not require the consent or approval of any person; and

							

						
	All necessary steps and proceedings have been taken and all consents have been obtained to authorize the entering into, delivery and performance of this Agreement;

							

					

				

			

		
		                        (c)           Valid Obligations.  This Agreement constitutes valid and binding obligations of Pillsbury enforceable against it in accordance with its respective terms, provided that the enforceability thereof may be limited by:

			

		

		

				
					
							bankruptcy, insolvency, liquidation, reorganization, reconstruction or other laws affecting the enforcement of creditors' rights generally; and

							

						
	general principles of equity (regardless of whether enforcement is considered to be proceedings at law or in equity); and no representation is given as to any specific remedy that may be granted, imposed or rendered only in the discretion of a court of equity, including remedies such as those of specific performance and injunction;

							

					

				

			

		
		                        (d)           No Default.  Pillsbury is not in default in the performance or observance of any of the obligations, covenants or conditions contained in any material contract, agreement or other instrument to which it is a party or by which it is bound;

			

			                        (e)           No Actions.  There are no actions, suits or judicial or arbitral proceedings pending or to the knowledge of Pillsbury, threatened against Pillsbury in any court or other authority;

			

			                        (f)            Real Property.  Pillsbury does not own any real or immovable property;

			

			                        (g)           Orders or Notices.  There are no outstanding orders, notices or similar requirements relating to Pillsbury or its assets issued by any building, environmental, fire, health, labour or police authorities or from any other federal, provincial or 

		

		

		

		

		

		

		

		

		municipal authority, and there are no matters under discussion with any such authorities relating to orders, notices or similar requirements.

		

		                        (h)           Judgements and Executions.  There are no judgements or executions filed or pending against Pillsbury or its property;

		

		                        (i)            Insolvency Proceedings.  Pillsbury:

		

		

				
					
							is not insolvent; and

							

						
	has not committed an act of bankruptcy, proposed a compromise or arrangement of its creditors generally, made any assignment for the benefit of creditors, or taken any proceedings with respect to a compromise or arrangement or to have a receiver appointed over any part of its assets; and

							

						
	has not had any receiving order under the provisions of the Bankruptcy and Insolvency Act (Canada) filed against it, had any petition for such an order served upon it, and there are no proceedings in effect or threatened under the provisions of the Winding-Up Act (Canada) or the Companies' Creditors Arrangement Act (Canada), nor has any receiver, receiver and manager, monitor, custodian or official with similar powers been appointed by court order or privately respecting Pillsbury or any of its assets or property;

							

					

				

			

		
		                        (j)            Material Liabilities.  There are no material liabilities of Pillsbury of any kind whatsoever, whether or not accrued and whether or not determined or determinable, contingent or otherwise, in respect of which Pillsbury is or may become liable on or after the date of this Agreement which have not been fully disclosed in writing to the Lender;

			

			                        (k)           Location of Assets.  The assets of Pillsbury are in Nevis and in no other place or places;

			

			                        (l)            Full Disclosure.  The information furnished to the Lender by Pillsbury in connection with this Agreement and the Loan does not contain any untrue statement of a material fact and does not omit to state any material fact necessary to make the statements made, in the context in which made, not false or misleading.

			

			3.2                   Survival of Representations, Warranties and Covenants

		Pillsbury agrees that the covenants, agreements, representations and warranties of Pillsbury set forth in this Agreement, and in any certificate or other document delivered hereunder by or on behalf of Pillsbury, notwithstanding any investigation made by the Lender or its counsel or any other representative of the Lender:

		

		

		

		

		

		

		

		

		

		                        (a)           are material;

		

		                        (b)           shall be deemed to be relied upon by the Lender or by any subsequent holder of the Security;

		

		                        (c)           shall survive the execution and delivery of this Agreement and the Security; and

		

		                        (d)           shall continue in full force and effect until all of the Indebtedness has been repaid.

		

		
			ARTICLE 4 - SECURITY

						

					

		

		
			4.1                   Security

		

		To secure the due and punctual payment of the Indebtedness and to secure the due and punctual performance of Pillsbury's other obligations hereunder, Pillsbury shall execute and deliver to the Lender the Pledge Agreement and the Escrow Agreement; each of which are attached hereto as Schedule "B" and Schedule "C", respectively. 

		

		Under the Pledge Agreement Pillsbury agrees to grant the Lender security on all of the Units issued to Pillsbury from Pure Play as consideration for the assumption of the Indebtedness under this Agreement.  Pillsbury agrees to place in escrow and pledge, in accordance with each of the Pledge Agreement and Escrow Agreement, all of its rights, entitlement and interests in and to the Units in order to secure the Loan and recovery of any part thereof on default of payment in accordance with the terms of this Agreement.

			

			4.2                   Discharge and Release of Units from Escrow

		Subject to Pillsbury having maintained the First Assumption Agreement in good standing, and once Pillsbury has paid all Indebtedness and satisfied all of its obligations hereunder the Units will be released from escrow by the escrow agent and delivered to Pillsbury. 

		

		4.3                   Existing Security Arrangements for the Indebtedness

		

		The existing forms of security for the Indebtedness owing from PPM to the Lender that were entered into or granted by PPM, Richard Arnold, Sieg Badke and Michael Fitzgerald shall remain in full force and effect until the entire Principal Sum and Interest of the Indebtedness is paid in full.

			

		

		
			ARTICLE 5 - COVENANTS

						

					

		

		
			5.1                   Positive Covenants

		

		Pillsbury hereby covenants and agrees with the Lender that, so long as any of the Indebtedness remains unpaid:

			

			

			

		

		

		

		

		

		

		                        (a)           To Pay Indebtedness.  Pillsbury will duly and punctually pay or cause to be paid to the Lender the Indebtedness (together with all interest and principal sum payments required under the First Assumption Agreement) at the dates, times and places, and in the manner provided for herein (and therein);

		

		                        (b)           Notice of Material Change.  Pillsbury will give the Lender prompt written notice of any material change in the business or condition of Pillsbury, financial or otherwise, or of any material loss, destruction or damage of or to any properties or assets of Pillsbury;

		

		                        (c)           To Maintain Existence.  Pillsbury will at all times maintain its corporate existence;

		

		                        (d)           Further Assurances.  At any and all times Pillsbury will, at its expense, do, execute, acknowledge and deliver or will cause to be done, executed, acknowledged and delivered all and every such further acts, deeds, transfers and assurances as the Lender reasonably requires, for the purpose of giving effect to this Agreement and the Security;

		

		                        (e)           Payment of Costs and Expenses.  Pillsbury and the Lender shall each pay their respective costs, charges and expenses (including legal fees and disbursements on a solicitor and his own client basis and accounting and other professional fees) of or incurred by either of them in connection with the preparation, negotiation and execution of documents and the performance of all necessary due diligence and other review in connection with the Loan and the Security taken in pursuant hereof;

		

		                        (f)            Change of Address.  Pillsbury shall provide the Lender with not less than 30 days prior written notice of any change of address of any office or other business location of Pillsbury and of the location of the new business premises where Pillsbury undertakes its business at any time; and

		

		                        (g)           Notice of Default.  Pillsbury shall give prompt written notice to the Lender of any Event of Default hereunder and of any event which, with notice or lapse of time or both, would constitute an Event of Default.

		

		5.2                   Negative Covenants
		Pillsbury hereby covenants and agrees with the Lender that, so long as any of the Indebtedness remains outstanding, without the prior written consent of the Lender, it will not:

			

			                        (a)        As to Encumbrances.  Do any act to encumber the Units other than as set out in the Pledge Agreement and in accordance with the terms of this Agreement; and

			

			                        (b)        Not to Assign Units.  Permit, approve or consent to the assignment, sale, transfer or issuance of any of the Units in the share capital of Pure Play that were issued to Pillsbury under the terms of this Agreement.

		

		

		

		

		

		

		

		

		

		
			ARTICLE 6 - DEFAULT

						

					

		

		
			6.1                   Events of Default

		

		Each and every of the following shall be an Event of Default under this Agreement:

			

			                        (a)     If Pillsbury makes default in payment of the Indebtedness as and when the same becomes due under any provision hereof; provided that such default remains unremedied for five days after written notice of default is given by the Lender to Pillsbury;

			

			                        (b)     if Pillsbury makes default in payment of any amounts due and owing under the First Assumption Agreement and fails to cure such default in accordance with the terms and conditions of the First Assumption Agreement;

			

			                        (c)     If Pillsbury neglects to carry out or observe any covenant or condition (other than those relating to the payment of any Indebtedness) hereunder or under the Security, provided that:

				

			

		

				
					
							Pillsbury shall have 30 days after receipt of notice from the Lender to make good such default before Pillsbury shall be in default hereunder; and

							

						
	if such default cannot be cured within such 30 day period but is capable of being cured in a timely manner, and Pillsbury so advises the Lender prior to the termination of such 30 day period, and if the Lender in its sole discretion is satisfied that Pillsbury is diligently proceeding to cure such default, Pillsbury shall have an additional 30 days to make good such default before Pillsbury shall be in default hereunder;

							

					

				

			

		
		                        (d)     If a petition is filed, an order is made or a resolution is passed for the winding-up or liquidation of Pillsbury;

			

			                        (e)     If Pillsbury becomes unable to pay its debts generally as they become due or makes a bulk sale of its assets or a general assignment for the benefit of its creditors or a proposal under the Bankruptcy and Insolvency Act (Canada) or if a bankruptcy petition is filed or presented with respect to Pillsbury and is not removed or discharged prior to the time when any party thereunder has the right to realize against the property and assets of Pillsbury, or if a custodian or a sequestrator or a receiver or receiver and manager or any other officer with similar powers is appointed, by court order or privately, of its properties, or any part thereof which is, in the opinion of the Lender, a substantial part thereof;

			

			                        (f)      If any proceedings respecting Pillsbury are commenced under the Companies' Creditors Arrangement Act (Canada) or under the Winding-Up Act (Canada) or any legislation or other provision of law providing for similar effect;

			

			

			

		

		

		

		

		

		

		                        (g)     If an encumbrancer of any of the property of Pillsbury takes possession of the property of Pillsbury or any part thereof which is, in the opinion of the Lender, a substantial part thereof or if a distress or execution or any similar process is levied or enforced against and remains unsatisfied for such period as would permit such property or such part thereof to be sold or seized thereunder, or if a judgment or order is obtained against Pillsbury which, in the reasonable opinion of the Lender, materially and adversely affects the ability of Pillsbury to carry on its business or a substantial part thereof, or if such judgment or order is for the payment of money, and has not been satisfied within 30 days of the date that such judgment or order is issued;

		

		                        (h)     If any of the representations and warranties contained herein or in any of the Security prove to have been false or misleading in any material respect on the date hereof or become false or misleading at any time during the term hereof, each representation and warranty being deemed to be continuously restated with a current effective date during each day of the term hereof;

		

		                        (i)      If Pillsbury is in default under the Security or any other written agreement entered into with or in favour of the Lender at any time; or

		

		                        (j)      If there is a breach, at any time and in any material respect, by Pillsbury of the provisions of any applicable law, regulation, by-law, ordinance or work order of any lawful authority, whether federal, provincial, municipal, local or otherwise affecting any of the property and assets of Pillsbury, or any activity or operation carried out by Pillsbury, provided that such default remains unremedied for 30 days after written notice of default is given by the lawful authority of the Lender to Pillsbury.

		

		6.2                   Waiver of Default
		The Lender may at any time waive in writing any Event of Default which may have occurred; provided that no such waiver shall extend to or be taken in any manner whatsoever to affect any subsequent Event of Default or the rights or remedies resulting therefrom.  No delay or failure by the Lender to exercise any right or remedy hereunder shall impair any such right or remedy or shall be construed to be a waiver of any Event of Default hereunder or under the Security or acquiescence therein.

			

		

		
			ARTICLE 7 - ENFORCEMENT OF SECURITY

						

					

		

		
			7.1                   Sole Remedy Available to the Lender

		

		The only remedy available to the Lender upon the occurrence of an Event of Default that is not cured by Pillsbury within the 30 day period provided for in Section 6.1(c) herein is the delivery of the Units that Pillsbury agrees to pledge to secure the Loan in accordance with the terms and conditions of the Pledge Agreement and the Escrow Agreement.  Upon such Event of Default, and upon the deemed delivery of the Units to the control and direction of the Lender under the terms of the Pledge Agreement and the Escrow Agreement, Pillsbury shall have no further obligation, contingent or otherwise, to any Party under this Agreement and for any portion of the Indebtedness which it had then previously assumed hereunder.  At such deemed delivery of the 

		

		

		

		

		

		

		

		

		Units to the Lender, the Lender will then have the option, for a period of 30 calendar days after the failure of Pillsbury to cure the Event of Default as set forth hereinabove, to either: (i) have the Units registered into the Lender's name, or in the name(s) of the Lender’s nominee(s) in the Lender's sole and absolute discretion, as full satisfaction of the Loan under this Agreement and the Underlying Loan and Security Agreement; or (ii) to surrender the Units back to Pure Play for cancellation and return to treasury.  Should the Lender determine to return the Units to treasury for cancellation, then Pure Play will be deemed to have assumed the Loan from PPM and, consequent thereon, will continue to make the Interest and Principal Sum payments to the Lender as set forth in accordance with the terms and conditions of the Underlying Loan and Security Agreement; and all remaining terms and conditions of the Underlying Loan and Security Agreement will continue to govern the assumption of the Loan by Pure Play on behalf of PPM.

		

		7.2                   The Lender as Agent of Borrower and Power of Attorney
		If the Security over the Units becomes enforceable, then Pillsbury hereby irrevocably appoints the Lender to be its attorney for it and in its name and on its behalf to execute and carry out any deeds, documents, transfers, conveyances, assignments, assurances, consents which Pillsbury ought to, or may, sign, execute and do hereunder and generally to use its name in the exercise of the powers hereby conferred on the Lender, with full power of substitution and revocation.  In the exercise of its right hereunder, the Lender shall be, so far as concerns responsibility for its action or inaction, the agent of Pillsbury.

			

			7.3                   Lender's Agents

		The Lender may appoint any agent or representative to exercise any of its rights hereunder.

			

		

		
			ARTICLE 8 – POOLING OF UNITS

						

					

		

		
			8.1                   Pooling of Units Issued to Pillsbury

		

		As a condition of Pure Play issuing the Units to Pillsbury under the terms of this Agreement, Pillsbury agrees to enter into a Pooling Agreement; the form of which being attached hereto as Schedule "D", whereby the shares and Warrants which form the Units will be released by the escrow agent in accordance with the terms of the Pooling Agreement.

			

		

		
			ARTICLE 9 - GENERAL PROVISIONS

					

				

		

		
			9.1                   Notice

		

		Any demand or notice to be given by any party hereto to any other party shall be in writing and may be given by personal delivery or, except during any period when postal service is interrupted, by prepaid registered mail or by telex, telecopy or by other means of instantaneous transmission that produces a permanent copy ("other communication") addressed as follows:

			

			                        to Pillsbury, addressed to it at:

			

			                                                Suite 4, Temple Building

			                                                Prince William & Main Street

			                                                Charlestown, Nevis, West Indies

		

		

		

		

		

		

		

		

		                                                Attention:          IFG Trust Services Inc., Dan MacMullin

		                                                Telephone:        (869) 469-7040

		                                                Facsimile:         (869) 469-7042

		

		                        to the Lender, addressed to it at:

		
                                                1000 Wye Valley Road

		                                                P.O. Box 640
                                                Midland, ON

		                                                Canada L4R 4P4

		

		                                                Attention:          Erwin Zecha

		                                                Telephone:        705 431-7177

		                                                Facsimile:         705 431-8482

		

		                        to Pure Play, addressed to it at:

		
                                                55A Guardsman Rd.
                                                Thornhill, ON.
                                                Canada L3T 6L4

		

		                                                Attention:          Richard Arnold

		                                                Telephone:        (905) 602-1522

		                                                Facsimile:         (905) 602-1525
		

		and shall be deemed to have been received by the party to whom it was addressed:

			

		

		

				
					
							if given by registered mail, on the date falling four business days following the date upon which it was deposited in the post office with postage and cost of registration prepaid; and

							

						
	if personally delivered to an adult during normal business hours, when so delivered; and

							

						
	if given by other communication, three business hours after transmission and confirmation of receipt,

							

					

				

			

		
		provided that either of the parties may change the address or person designated from time to time, by notice in writing to the other party hereto.

			

			9.2                   Law Applicable

		This Agreement shall be construed in accordance with the laws of the Province of Ontario and the laws of Canada applicable therein and shall be treated in all respects as an Ontario contract.

			

			

			

			

		

		

		

		

		

		

		9.3                   Assignment
		This Agreement shall enure to the benefit of, and shall be binding upon, the Parties hereto and their respective successors and permitted assigns.  This Agreement shall not be assigned by Pillsbury without the other Parties' prior written consent, which consent may be unreasonably withheld or delayed.  This Agreement may be assigned by the Lender, in which event Pillsbury shall attorn in all respects to such assignment and the assignee thereof.

			

			9.4                   Business Day

		If under the provisions of this Agreement any amount is to be paid or any act or thing is to be taken other than on a business day, then such amount shall be paid or such act or thing or step shall be done or taken on the next business day. 

			

			9.5                   Further Assurance

		Pillsbury agrees, at the request of the other Parties, to sign such further and other documents and to do and perform, and cause to be done and performed, such further and other acts as may be necessary or desirable to give effect to the provisions of this Agreement.

			

			9.6                   Severability

		If any provision herein is determined to be void, voidable or unenforceable, in whole or in part by the decision of any court of competent jurisdiction, which determination is not appealed or appealable for any reason whatsoever, the provision in question shall not affect or impair or be deemed to affect or impair the enforceability or validity of any other provision hereof and such unenforceable or invalid provision or portion thereof shall be severed from the remainder of this Agreement.  All the provisions hereof are hereby declared to be separate, severable and distinct.

			

			9.7                   Execution in Counterparts

		This Agreement may be signed by the Parties hereto in as many counterparts as may be necessary, and via facsimile if necessary, each of which so signed being deemed to be an original and such counterparts together constituting one and the same instrument and, notwithstanding the date of execution, being deemed to bear the effective Execution Date as set forth on the front page of this Agreement.

			

			9.8                   Time of the Essence

		Time will be of the essence of this Agreement.

		

		                        IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first above written.

		

		

		

		

		

		

		

		

		

		

		

			
					PILLSBURY HOLDINGS, INC.

							

							

							

						Per:      /s/ Souren Agemian Jr.                           

						           Authorized Signatory

						

						

					

					            Souren Agemian Jr., Investment Advisor

					                   (print name and title)
					

					

					
					DORAL EZ INVESTMENTS INC.

							

							

							

						Per:      /s/ Erwin Zecha                                      

						           Authorized Signatory

						

						

					

					           Erwin Zecha, President                           

					                   (print name and title)
					

					

				
	
					

					
					

				
	

					

					

					

					

					

				
	
					PURE PLAY MEDIA HOLDINGS, INC.

							

							

							

						Per:      /s/ Richard Arnold                                  

						           Authorized Signatory

						

						

					

					            Richard Arnold, CFO                             

					                   (print name and title)
					

					

					
					PURE PLAY MEDIA, INC.

							

							

							

						Per:      /s/ Richard Arnold                                  

						           Authorized Signatory

						

						

					

					
						            Richard Arnold, CEO                             

						                  (print name and title)

				

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		
				

				

				

				

				

			
		
			SCHEDULE “A”

						

						

					This is Schedule “A” to the Assumption of the Indebtedness and Loan Agreement, dated December 31, 2004, between Pillsbury Holdings, Inc., Doral EZ Investments Inc., Pure Play Media Holdings, Inc. and Pure Play Media, Inc.

					

					

				Refer to the materials below

						

						

						

					INDEBTEDNESS AND PAYMENTS

		

		

		

		

		

		

		
				
						

						DATE

						
						

						Indebtedness

						
						

						Amount Paid

						
						Outstanding

							Principal Balance

						
						Recording Officer's Initials

					
	
						__________, 2004

						
						$937,499.98 (CDN)

						
						__

						
						$937,499.98 (CDN)

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						  

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					
	
						 

						
						 

						
						 

						
						 

						
						 

					

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		

		
				

				

				

				

				

			
		
			SCHEDULE “B”

						

						

					This is Schedule “B” to the Assumption of the Indebtedness and Loan Agreement, dated December 31, 2004, between Pillsbury Holdings, Inc., Doral EZ Investments Inc., Pure Play Media Holdings, Inc. and Pure Play Media, Inc.

					

					

				Refer to the materials attached hereto

		

		

		

		

		

		

		

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			
		

		

		

		

		

		

		
			SCHEDULE “C”

						

						

					This is Schedule “C” to the Assumption of the Indebtedness and Loan Agreement, dated December 31, 2004, between Pillsbury Holdings, Inc., Doral EZ Investments Inc., Pure Play Media Holdings, Inc. and Pure Play Media, Inc.

					

					

				Refer to the materials attached hereto

		

		

		

		

		

		

		

		

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

				

			
		

		

		

		

		

		

		
			SCHEDULE “D”

						

						

					This is Schedule “D” to the Assumption of the Indebtedness and Loan Agreement, dated December 31, 2004, between Pillsbury Holdings, Inc., Doral EZ Investments Inc., Pure Play Media Holdings, Inc. and Pure Play Media, Inc.

					

					

				Refer to the materials attached heretoUntitled Page

		
			

				

				Exhibit 10.32

				

				

			

		

		
			PLEDGE AND ESCROW AGREEMENT

			

		

		

			
         
			THIS PLEDGE AND ESCROW AGREEMENT (this “Agreement”) is made and entered into as of December 31, 2004 by Pillsbury Holdings, Inc. (the “Pledgor”), having its principal address at Suite 4, Temple Building, Prince William & Main Street, Charlestown, Nevis, West Indies, in favour of Doral EZ Investments Inc. (“Lender”), having a principal address at 3482 - 9th Line, Innisfil, Ontario, Canada, L9S 3Z9.

			

		

		
			WITNESSETH THAT:

		

		

			WHEREAS, Pledgor is indebted to the Lender the unsecured sum of CDN$937,499.98 (the “Loan”) which is now due and owing;

			

		

		WHEREAS, Pledgor has offered to grant the Lender security on 520,107 Units (the “Units”) in the capital of Pure Play Media Holdings, Inc. (“Pure Play”) with each Unit consisting of one share of common stock and one share purchase warrant (each a “Warrant”), and with each such Warrant entitling the holder to acquire one additional share of common stock at a price of US$2.50 commencing on December 31, 2006, the date which is 24 months from the date of issuance of the Units by Pure Play to Pillsbury and expiring on December 31, 2008, the date that is 48 months from the date of the issuance of the Units, which is owned by the Pledgor as security for the Loan and to make payments in accordance with the Assumption of Indebtedness and Loan Agreement (the “Loan Agreement”), dated December 31, 2004, entered into between the Pledgor, Lender, Pure Play and Pure Play Media, Inc. (“PPM”).

			

			WHEREAS, Pledgor has agreed to place into escrow and pledge herewith the Units represented by share certificate no.C44 and share purchase warrant certificate no.2 and to grant a pledge of all Pledgor’s rights and interests in such Units to secure with the Units the Loan and recovery of any part thereof on default of payment and which Loan is to be repaid in accordance with the Loan Agreement.

			

			WHEREAS, Lender has agreed to the terms of this Agreement on the condition that Pledgor (i) deliver the Units and transfer authorities (“Transfer Documents”) into escrow by the terms of this Agreement, (ii) pledge to Lender a security interest in the Units as to all and any interests, residual, option, or otherwise in the Units, and (iii) execute and deliver this Agreement in order to secure the payment and performance by Pledgor of the Loan;

			

			NOW, THEREFORE, in consideration of the premises and in order to induce Lender to make the Loan, Pledgor hereby agrees with Lender as follows:

			

			         SECTION 1.   SHARE ESCROW.   Pledgor hereby places into escrow with the Escrow Agent (as defined hereinafter in the Escrow Agreement attached to the Loan Agreement as Schedule “C”) the Units and all and every of its interest therein, and Pledgor shall immediately upon execution hereof deliver to the Escrow Agent:

			

			

			

		

		

		
			

				

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		             (a)        the share certificates representing the shares of common stock of Pure Play and the share purchase warrants to acquire additional shares of common stock of Pure Play forming the Units; and

			

			             (b)        if received by Pledgor prior to or after escrow of the Units herewith and before payment of the Loan or after realisation by the Lender of the Units in execution of its recourses to recover the Loan, all additional shares of stock of, or equity interest in, Pure Play from time to time acquired by Pledgor in any manner arising by share dividend, stock split, or otherwise of the Units, and the certificates representing such additional shares (any such additional shares shall constitute part of the Units under and as defined in this Agreement), and all products and proceeds of any of such additional Units, including, without limitation, all dividends, cash, instruments, subscriptions, warrants and any other rights and options and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any and all of such additional Units;

			

			             (c)        an undated stock transfer power of attorney which is medallion stamped with respect to the Units; and

			

			             (d)        an undated resolution of the board of directors of Pillsbury approving the transfer of the Pledged Shares in accordance with the terms of this Agreement.

			

			         SECTION 2.   PLEDGE.   Pledgor hereby pledges to Lender, and grants to Lender a continuing first priority, and perfected security interest in, the following (the “Pledged Collateral”):

			

			             (a)        the Units and the certificates representing the Units and all interest of the Pledgor therein and extinguishment thereof upon exercise of the Pledge, and all products and proceeds of any of the Units including, without limitation, all dividends (other than as provided elsewhere herein), cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Units; and

			

			             (b)        all additional shares of stock of, or equity interest in, Pure Play from time to time acquired by Pledgor in respect to the Units in any manner arising by share dividend, stock split, or otherwise of the Units, and the certificates representing such additional shares (any such additional shares shall constitute part of the Units under and as defined in this Agreement), and all products and proceeds of any of such additional Units, including, without limitation, all dividends, cash, instruments, subscriptions, warrants and any other rights and options and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any and all of such additional Units.

			

			         SECTION 3.   SECURITY FOR OBLIGATIONS.   This Agreement secures (i) the due and punctual payment in full (and not merely the collectibility) of the Principal Sum amount of the Loan, and the Interest thereon, in each case when due and payable, according to the terms of the Loan Agreement, whether at stated maturity or otherwise; (ii) the due and punctual payment in full (and not merely the collectibility) of the obligations, liabilities, indebtedness and all other sums and charges which may at any time be due and payable in accordance with, or under the terms and 

			

			

			

		

		

		
			

				

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		conditions of the Loan Agreement, whether at stated maturity or otherwise; (iii) the due and punctual payment (and not merely the collectibility), performance and observance of all of this Pledge Agreement and the other obligations, terms, covenants and conditions, whether now or hereafter existing, contained in any other collateral Loan documents (collectively, and together with the Loan Agreement, the “Loan Documents”) and to be performed or observed by Pledgor; (iv) the accuracy of the representations and warranties made by Pledgor in all Loan Documents to which it is a party (all of the foregoing are collectively called the "Obligations"); (the Obligations and all such obligations of Pledgor now or hereafter existing under this Agreement being referred to herein as the "Liabilities").

			

			         SECTION 4.   REPRESENTATIONS AND WARRANTIES.   Pledgor represents and warrants as follows:

			

			             (a)        The Units have been duly authorized and validly issued and are fully paid and non-assessable.

			

			             (b)        Pledgor is the legal and beneficial owner of the Pledged Collateral, free and clear of any lien or any interests by any other person on the Pledged Collateral.

			

			             (c)        Upon the delivery by the Escrow Agent of the Units, the certificates, and the Transfer Documents, in the event of default the transfer of the Units pursuant to this Agreement creates a valid and perfected transfer of the Units to the Lender with the caveat that the Units are subject to such hold period as may be stated on the certificates. 

			

			             (d)        Upon the delivery to Lender of the Pledged Collateral, the pledge of the Pledged Collateral pursuant to this Agreement creates a valid and perfected first priority interest in the Pledged Collateral securing the payment of the Liabilities for the benefit of Lender.

			

			             (e)        No authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body or Pure Play is required (except applicable material change reports and insider reports) (i) for the pledge by Pledgor of the Pledged Collateral pursuant to this Agreement or for the execution, delivery or performance of this Agreement by Pledgor or (ii) for the transfer herein provided or (iii) for the exercise by Lender of the rights provided for in this Agreement or the remedies in respect of the Pledged Collateral pursuant to this Agreement.

			

			             (f)        Pledgor has full power and authority to enter into this Agreement and has the right to vote, pledge and grant a security interest in the Units as provided by this Agreement.

			

			             (g)        This Agreement has been duly authorized, executed and delivered by Pledgor and constitutes a legal, valid and binding obligation of Pledgor, enforceable against Pledgor in accordance with its terms, except as such enforceability may be limited by the effect of any applicable bankruptcy, insolvency, reorganisation, moratorium or other similar laws.

			

			             (h)        The preamble to this Agreement is made a part of this Agreement and the terms stated therein are true and accurate.

			

			

			

		

		

		
			

				

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		         SECTION 5.   FURTHER ASSISTANCE.   Pledgor agrees that at any time and from time to time, at the expense of Pledgor, Pledgor will promptly execute and deliver, or cause to be executed and delivered, all stock powers, proxies, assignments, instruments and documents and take all further action, that is reasonably necessary, at Lender's request, in order to perfect any transfer or security interest granted or purported to be granted hereby or to enable Lender to exercise and enforce its rights and remedies hereunder with respect to any Pledged Collateral and to carry out the provisions and purposes hereof.

			

			         SECTION 6.   TRANSFER OF UNITS.   Pledgor hereby authorizes Lender at any time to cause the Units to be transferred and registered to the Lender or any other party the Lender may determine for the purpose of realizing on the Units to acquire proceeds to pay the Loan.

			

			         SECTION 7.   TRANSFERS AND OTHER LIENS.   Except for the purpose of securing proceeds to retire the Loan, Pledgor agrees that it will not (i) sell or otherwise dispose of, or grant any option with respect to, any of the Units until the Loan comes due, the Principal Sum and Interest on the Loan is fully paid and any rectification of default period has expired remedied, except with the written permission of the Lender, or (ii) create or permit to exist any lien upon or with respect to any of the Pledged Collateral, except for the security interest granted under this Agreement.

			

			         SECTION 8.   LENDER APPOINTED ATTORNEY-IN-FACT.   In addition to all of the powers granted to Lender pursuant to the Loan, Pledgor hereby appoints Lender as Pledgor's attorney-in-fact, with full authority in the place and stead of Pledgor and in the name of Pledgor or otherwise, from time to time in Lender's discretion to take any action and to execute any instrument which Lender may deem necessary or advisable to further perfect and protect the security interest granted hereby, including, without limitation, to receive, endorse and collect all instruments made payable to Pledgor representing any dividend, interest or principal payment or other distribution in respect of the Pledged Collateral or any part thereof and to give full discharge for the same.

			

			         SECTION 9.   LENDER MAY PERFORM.   If Pledgor fails to perform any agreement contained herein, Lender may itself perform, or cause performance of, such agreement, and the reasonable expenses of Lender incurred in connection therewith shall be payable by Pledgor.

			

			         SECTION 10.   NO ASSUMPTION OF DUTIES; REASONABLE CARE.   The rights and powers granted to Lender hereunder of the Pledge are being granted in order to preserve and protect Lender's security interest in and to the Pledged Collateral granted hereby and shall not be interpreted to, and shall not, impose any duties on Lender in connection therewith. Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which Lender accords its own property, it being understood that Lender shall not have any responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Pledged Collateral, whether or not Lender has or is deemed to have knowledge of such matters, or (ii) taking any necessary steps to preserve rights against any parties with respect to any Pledged Collateral.

			

			

			

		

		

		
			

				

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		         SECTION 11.   SUBSEQUENT CHANGES AFFECTING COLLATERAL.   Pledgor represents to Lender that Pledgor has made its own arrangements for keeping informed of changes or potential changes affecting the Pledged Collateral (including, but not limited to, rights to convert, rights to subscribe, payment of dividends, payments of interest and/or principal, reorganization or other exchanges, tender offers and voting rights), and Pledgor agrees that Lender shall have no responsibility or liability for informing Pledgor of any such changes or potential changes or for taking any action or omitting to take any action with respect thereto. Pledgor covenants that it will not, without the prior written consent of Lender, sell or otherwise dispose of, or grant any option with respect to, any of the Pledged Collateral or create or permit to exist any lien upon or with respect of any of the Pledged Collateral.

			

			         SECTION 12.   REMEDIES UPON DEFAULT.   If any Event of Default shall have occurred and be continuing and Pledgor shall not have rectified within the time period(s) provided for under the terms and conditions of the Loan Agreement after notice of default, Lender shall, in addition to all other rights given by law or by this Agreement, the Loan Agreement or otherwise, have all the rights and remedies with respect to the Pledged Collateral of a secured party under the laws of the Province of Ontario and Lender shall have the option to: (i) have the Pledged Collateral transferred and registered on the books of Pure Play into the Lender’s name, or in the name(s) of the Lender’s nominee(s) in the Lender’s sole and absolute discretion, as full satisfaction of the Loan; or (ii) instruct the Escrow Agent to surrender the Pledged Collateral back to Pure Play for cancellation and return to treasury. Should the Lender determine to instruct the Escrow Agent to surrender the Pledged Collateral back to Pure Play for cancellation and return to treasury, then Pure Play will be deemed to have assumed the Loan from PPM and consequent thereon, will continue to make the Interest and Principal Sum payments on the Loan to the Lender as set forth in accordance with the terms and conditions of the Underlying Loan and Security Agreement (as defined in the Loan Agreement); and all remaining terms and conditions of the Underlying Loan and Security Agreement will continue to govern the assumption of the Loan by Pure Play on behalf of PPM. In addition, with respect to any Pledged Collateral which shall then be in or shall thereafter come into the possession or custody of Lender, Lender may sell or cause the same to be sold at any broker's board or at public or private sale, in one or more sales or lots, at such price or prices as Lender may deem best, for cash or on credit or for future delivery, without assumption of any credit risk. The purchaser of any or all Pledged Collateral so sold shall thereafter hold the same absolutely, free from any claim, encumbrance or right of any kind whatsoever. Any sale of the Pledged Collateral shall be conducted by Lender without any notice requirement and as full owner thereof and Lender is not required to conduct the same in conformity with commercial practices of banks, insurance companies, commercial finance companies, or other financial institutions disposing of property similar to the Pledged Collateral. Any requirement of notice, demand or advertisement for sale is, to the extent permitted by law, waived. All expenses (including court costs and reasonable attorneys' fees, expenses and disbursements) of, or incident to, the enforcement of any of the provisions hereof shall be recoverable from the proceeds of the sale or other disposition of the Pledged Collateral.

			

			         SECTION 13.   EXPENSES.   Pledgor will upon demand pay to Lender the amount of any and all reasonable expenses, including, without limitation, the reasonable fees, expenses and disbursements of its counsel (and, upon the occurrence and during the continuance of an Event of Default, the fees, expenses and disbursements of any investment banking firm, business broker or other selling agent and any other experts and agents retained by Lender), which Lender may incur in 

			

			

			

		

		

		
			

				

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		connection with (i) the administration of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Pledged Collateral, (iii) the exercise or enforcement of any of the rights of Lender hereunder or (iv) the failure by Pledgor to perform or observe any of the provisions hereof.

			

			         SECTION 14.   SECURITY INTEREST ABSOLUTE.   All rights of Lender and security interests hereunder, and all obligations of Pledgor hereunder, shall be absolute and unconditional irrespective of:

			

			             (a)        any lack of validity or enforceability of the Loan or any other agreement or instrument relating thereto;

			

			             (b)        any change in the time, manner or place of payment of, or in any other term of, all or any of the Liabilities, or any other amendment or waiver of or any consent to any departure from the Loan;

			

			             (c)        any exchange, surrender, release or non-perfection of any other collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Liabilities; or

			

			             (d)        any other circumstances which might otherwise constitute a defence available to, or a discharge of, Pledgor in respect to the Liabilities or of this Agreement.

			

		

		         SECTION 15.   MISCELLANEOUS PROVISIONS.

			

			         SECTION 15.1   Notices.   All notices, approvals, consents or other communications required or desired to be given hereunder shall be in the form and manner, and delivered to each of the parties hereto at their respective addresses, set forth first herein.

			

			         SECTION 15.2   Headings.   The headings in this Agreement are for purposes of reference only and shall not affect the meaning or construction of any provision of this Agreement.

			

			         SECTION 15.3   Severability.   The provisions of this Agreement are severable, and if any clause or provision shall be held invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect in that jurisdiction only such clause or provision, or part thereof, and shall not in any manner affect such clause or provision in any other jurisdiction or any other clause or provision of this Agreement in any jurisdiction.

			

			         SECTION 15.4   Amendments, Waivers and Consents.   Any amendment or waiver of any provision of this Agreement and any consent to any departure by Pledgor from any provision of this Agreement shall be effective only if made or given in writing.

			

			         SECTION 15.5   Continuing Security Interest.   This Agreement shall create a continuing security interest in the Pledged Collateral and shall (i) remain in full force and effect until payment in 

		

			

			

		

		

		
			

				

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		full (including after the date for final payment) of the Obligations and of the Loan and any other Loan Documents, (ii) be binding upon Pledgor, its successors and assigns, and (iii) enure, together with the rights and remedies of Lender hereunder, to the benefit of Lender and its successors, transferees and assigns.

			

			         SECTION 15.6   Reinstatement.   To the extent permitted by law, this Agreement shall continue to be effective or be reinstated if at any time any amount received by Lender in respect of the Liabilities is rescinded or must otherwise be restored or returned by Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of Pledgor or upon the appointment of any receiver, intervenor, conservator, trustee or similar official for Pledgor or any substantial part of its assets, or otherwise, all as though such payments had not been made.

			

			         SECTION 15.7   Survival of Provisions.   All representations, warranties and covenants of Pledgor contained herein shall survive the execution and delivery of this Agreement, and shall terminate only upon the full and final payment and performance by Pledgor of the Obligations secured hereby and termination of the Loan and any other Loan Documents.

			

			         SECTION 15.8   Waiver of Demand.   Pledgor waives presentment and demand for payment of any of the Liabilities, protest and notice of dishonour or default with respect to any of the Liabilities, and all other notices to which Pledgor might otherwise be entitled, except as otherwise expressly provided herein.

			

			         SECTION 15.9   Authority of Lender.   Lender shall have and be entitled to exercise all powers hereunder which are specifically granted to Lender by the terms hereof, together with such powers as are reasonably incident thereto. Lender may perform any of its duties hereunder or in connection with the Pledged Collateral by or through agents or employees and shall be entitled to retain counsel and to act in reliance upon the advice of counsel concerning all such matters. Neither Lender nor any officer, employee, attorney or agent of Lender shall be liable to Pledgor for any action taken or omitted to be taken by it or them hereunder, except for its or their own gross negligence or wilful misconduct, nor shall Lender be responsible for the validity, effectiveness or sufficiency hereof or of any document or security furnished pursuant hereto. Lender and its officers, employees, attorneys and agents shall be entitled to rely on any communication, instrument or document reasonably believed by it or them to be genuine and correct and to have been signed or sent by the proper person or persons. Pledgor agrees to indemnify and hold harmless Lender and any person of the Lender from and against any and all costs, expenses (including reasonable fees, expenses and disbursements of attorneys and paralegals), claims and liabilities incurred by Lender or such person hereunder, unless such claim or liability shall be due to wilful misconduct or gross negligence on the part of Lender or such person.

			

			         SECTION 15.10   Release; Termination of Agreement.   Subject to the provisions of Section 15.6 hereof, this Agreement shall terminate upon full and final payment and performance of all the Obligations.

			

			         SECTION 15.11   Counterparts.   This Agreement may be executed in one or more counterparts and may be executed by facsimile, each of which shall be deemed an original but all of which shall together constitute one and the same agreement.

			

			

			

		

		

		
			

				

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			         SECTION 15.12   Governing Law; Submission to Jurisdiction; Counsel   

			

			             (a)        This Agreement shall be governed by and interpreted under the laws of the Province of Ontario and any dispute arising out of, connected with, related to, or incidental to the relationship established between Pledgor and Lender in connection with this Agreement, and whether arising in contract, tort, equity or otherwise, shall be resolved in Ontario, Canada.

			

			             (b)        Pledgor (i) agrees that Lender shall not have any liability to Pledgor (whether sounding in tort, contract or otherwise) for losses suffered by Pledgor in connection with, arising out of, or in any way related to, the transactions contemplated and the relationship established by this Agreement, or any act, omission or event occurring in connection therewith, unless it is determined by a judgement of a court that is binding on Lender (which judgement shall be final and not subject to review on appeal) that such losses were the result of acts or omissions on the part of Lender constituting gross negligence or wilful misconduct and (ii) waives, releases and agrees not to sue upon any claim against Lender (whether sounding in tort, contract or otherwise), except a claim based upon gross negligence or wilful misconduct.  Whether or not such damages are related to a claim that is subject to the waiver effected above and whether or not such waiver is effective, Lender shall not have any liability with respect to, and Pledgor hereby waives, releases and agrees not to sue upon any claim for, any special, indirect, consequential or punitive damages suffered by Pledgor in connection with, arising out of, or in any way related to the transactions contemplated or the relationship established by this Agreement, or any act, omission or event occurring in connection therewith, unless it is determined by a judgement of a court that is binding on Lender (which judgement shall be final and not subject to review on appeal), that such damages were the result of acts or omissions on the part of Lender constituting wilful misconduct.

			

			             (c)        Pledgor and Lender acknowledges that for the purpose of this Agreement and the security contemplated herein that Devlin Jensen acts for Pure Play, Pledgor and Lender release Devlin Jensen from any conflict with the Escrow Agent duties which have been requested of Devlin Jensen, Pledgor and Lender subscribe to and endorse the Escrow Agent provisions of the Escrow Agreement attached to the Loan Agreement as Schedule “C” following their initial signatures hereto, and Pledgor has been advised to seek its own counsel and has taken its own counsel for this purpose.

			

			

		

		
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		             (d)        Pledgor waives the posting of any bond otherwise required of Lender in connection with any judicial process or proceeding to enforce any judgement or other court order entered in favour of Lender, or to enforce by specific performance, temporary restraining order or preliminary or permanent injunction this Agreement or any other Agreement or document between Pledgor and Lender.

			

			

			         IN WITNESS WHEREOF, Pledgor and Lender have each caused this Agreement to be duly executed and delivered as of the date first above written.

			

		

		
			PLEDGOR:                                                               

				

				Pillsbury Holdings, Inc.                                           

				

				

				                                     Per:  /s/ Souren Agemian Jr.                                       
Authorized Signatory                                         

				

				      Souren Agemian Jr., Investment Advisor               
(print name and title)                                       

				

				

				LENDER:                                                                  

				

				Doral EZ Investments Inc.                                      

				

				

				Per:  /s/ Erwin Zecha                                                   

				Authorized Signatory                                           

				

				              Erwin Zecha, President                                  
(print name and title)

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