Document:

letteragrmt.htm

  

  

  

April 25, 2012

Mr. John Maatta

The CW Network, LLC

3300 West Olive Ave.

Burbank, CA 91505

Re:           4Kids Entertainment, Inc. and The CW Network, LLC

Dear John:

I refer you to the term sheet originally entered into as of October 1, 2007 and amended as of October 2, 2008 and June 23, 2010 (the “4Kids Term Sheet”), between 4Kids Entertainment, Inc. ("4Kids") and The CW Network, LLC (“The CW”) with respect to the five hour children’s programming block on Saturday mornings (the “Block”) broadcast on The CW network. As you know, 4Kids and its domestic wholly-owned affiliates ("Affiliates") filed for bankruptcy on April 6, 2011 (“the 4Kids Bankruptcy”) in the United States Bankruptcy Court for the Southern District of New York ("Bankruptcy Court").  4Kids and its Affiliates have also entered into an Asset Purchase Agreement, dated as of April 25, 2012 (the “Asset Purchase Agreement”), with Kidsco Media Ventures LLC (“Kidsco”), pursuant to which 4Kids and its Affiliates will transfer substantially all of the assets of 4Kids and its Affiliates, including the 4Kids Term Sheet, to Kidsco pursuant to Sections 363 and 365 of the Bankruptcy Code (the "Section 363 Sale"), which is subject to competitive bidding.

This letter sets forth the agreement between 4Kids and The CW (4Kids and The CW are sometimes referred to hereafter individually as “Party” or collectively as the “Parties”) with respect to certain matters regarding the 4Kids Term Sheet and Section 363 Sale to Kidsco.

1. Assumption and Assignment of the 4Kids Term Sheet –   If the Bankruptcy Court approves the Section 363 Sale to Kidsco and the transactions contemplated by the Asset Purchase Agreement are consummated, as provided in the Asset Purchase Agreement, 4Kids will (i) assume the 4Kids Term Sheet, (ii) pay The CW cure costs of $3,051,904 ("Cure Costs") in connection with the assumption of the 4Kids Term Sheet by 4Kids and (iii) assign the 4Kids Term Sheet to Kidsco at the closing of the Section 363 Sale to Kidsco.

 

  

  

  

2. Cure Costs – 4Kids and The CW agree that, notwithstanding anything to the contrary in the 4Kids Term Sheet, the total amount of the cure costs to be paid in connection with the assumption of the 4Kids Term Sheet by 4Kids is $3,051,904. 4Kids and The CW further agree that, except for such Cure Costs, 4Kids shall have no further obligations to The CW with respect to (a) any claims for settle up payments arising, or that may arise, with regard to any and all calendar quarters occurring (in whole or in part) prior to April 6, 2011 or (b) any claims for post-petition settle up payments arising, or that may arise, with regard to any and all calendar quarters from the second quarter of 2011 through the calendar quarter during which the closing of the Section 363 Sale occurs (collectively “Settle Up Claims”). The CW agrees that it shall not assert any Settle Up Claims (including but not limited to, obligations, allegations of wrongdoing of any type, actions, suits, debts, liens, contracts, liabilities, agreements, costs, expenses, or losses of any type, whether known or unknown, fixed or contingent, whether arising by contract or otherwise, claims or causes of action) against 4Kids or any Affiliate or the bankruptcy estates of any of the foregoing.  Upon receipt by The CW of said Cure Costs, the proofs of claim based on such Settle Up Claims, filed in the 4Kids Bankruptcy on April 11, 2012, and docketed as Claim Nos. 92, 93 and 94, and the claims listed in the Schedules of Assets and Liabilities, as amended, in the 4Kids Bankruptcy(collectively, “the Settle Up Proofs of Claim”) shall be deemed withdrawn and released without any further action required to be taken by any of the Parties in connection therewith, and Epiq Bankruptcy Solutions, LLC (“Epiq”) is directed to amend the claims registers of 4Kids and the Affiliates, as applicable, to reflect the terms of this letter.  However, Epiq is not directed to, and shall not, amend the claims registers of 4Kids and the Affiliates to indicate or reflect the withdrawal of The CW’s contingent proof of claim for indemnity filed in the 4Kids Bankruptcy on April 17, 2012, and docketed as Claim No. 109.

3. Releases.

(a)  Upon the closing of the Section 363 Sale to Kidsco (the “Release Date”), and as further consideration for the agreements contained in this letter agreement, the Parties hereto and the Affiliates shall deliver releases covering the items described in clauses (i) (ii) and (iii) below.

(i)  Subject to Paragraph 4 hereof, The CW hereby releases and forever discharges 4Kids, the Affiliates, the debtors’ estates in the Bankruptcy Case (as such term is defined in the Asset Purchase Agreement), and the directors, officers, shareholders, managers, members, employees, attorneys, accountants, professionals, agents and representatives of each of the foregoing, together with the successors and assigns of any of the foregoing, from any and all claims, demands, counterclaims, actions, causes of action, lawsuits, proceedings, adjustments, offsets, recoupments, contracts, obligations, liabilities, controversies, costs, expenses, interest, actions, causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions, attorneys’ fees and losses whatsoever, whether in law, in admiralty, in bankruptcy, or in equity, and whether based on any federal law, state law, common law right of action or otherwise, foreseen or unforeseen, matured or unmatured, known or unknown, direct or derivative, accrued or not accrued based upon  the Settle Up Claims, provided, however, that nothing herein shall constitute a release or discharge of any obligations under this letter agreement.

 

 

  

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(ii) Subject to Paragraph 4 hereof, 4Kids and the Affiliates each hereby releases and forever discharges The CW, and the directors, officers, shareholders, managers, members, employees, attorneys, accountants, professionals, agents and representatives thereof, together with the successors and assigns of any of the foregoing, from any and all claims, demands, counterclaims, actions, causes of action, lawsuits, proceedings, adjustments, offsets, recoupments, contracts, obligations, liabilities, controversies, costs, expenses, interest, actions, causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, controversies, agreements, promises, variances, trespasses, damages, judgments, extents, executions, attorneys’ fees and losses whatsoever, whether in law, in admiralty, in bankruptcy, or in equity, and whether based on any federal law, state law, common law right of action or otherwise, foreseen or unforeseen, matured or unmatured, known or unknown, direct or derivative, accrued or not accrued based upon wrongful or other acts, omissions, conduct or other matters occurring prior to or existing on the Release Date which they ever had, now have or hereafter can, shall or may have, for, upon, or by reason of any matter, cause or thing whatsoever, as they relate to the relationship between or among The CW and 4Kids and the Affiliates from the beginning of the world to the Release Date; provided, however, that nothing herein shall constitute a release or discharge of any obligations under this letter agreement.

(iii)                  Each Party agrees that such Party shall have no right to assert any claim released hereunder against Kidsco or Saban Properties (“Saban”).  However, nothing in this Letter Agreement shall eliminate or limit any obligation of Kidsco and/or Saban under the Term Sheet between The CW and Kidsco entered into as of April 25, 2012  (“the Kidsco Term Sheet”) or Saban’s guaranty of Kidsco’s obligations under the Kidsco Term Sheet (“the Saban Guaranty”).

The Parties each acknowledge that there is a risk that any one of them could subsequently discover facts or discover, incur, or suffer claims that were unknown or unsuspected on the date of these releases, and which if known on such date, may have materially affected its decision to execute these releases.  The Parties each acknowledge and agree that by reason of the releases contained herein, they are assuming the risk of unknown facts and unknown and unsuspected claims and intend and agree that these releases apply thereto.  Except as expressly provided in these releases, the Parties each hereby expressly, voluntarily, and knowingly waive, relinquish, and abandon each and every right and benefit to which the waiving party would be entitled now or at any time hereafter under section 1542 of the California Civil Code (“Section 1542”) and any statute, rule, and legal doctrine in California or any other jurisdiction to the same effect as Section 1542, to the extent that it applies to any of the releases herein.  Section 1542 provides as follows:

 

 

  

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“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

Except as expressly provided in these releases, notwithstanding Section 1542 and any other similar statute, rule or legal doctrine any jurisdiction, the Parties each acknowledge and agree that the releases above shall constitute full releases of all the claims, all of which are hereby waived.  The Parties acknowledge and agree that the waiver of Section 1542 and any other similar statute, rule or legal doctrine in any jurisdiction is an essential and material term of these releases, and that without such waiver the releases above would not have been entered into.  The Parties have been advised by their legal counsel and understand and acknowledge the significance and consequence of the releases above and of the specific waiver of Section 1542.

4. Unreleased Claims.  Nothing in Paragraph 3 hereof shall be deemed to release or discharge any indemnification claim of any nature that a Party (the “Asserting Party”) has or may have against another Party for breach of any warranty or representation in the Term Sheet (including, by way of example but not limitation, in Paragraph 13 of the 4Kids Term Sheet), provided that any such claims shall remain exclusively against such Party and shall not be deemed to be claims against Kidsco or Saban upon assignment of the 4Kids Term Sheet.

5. Entire Agreement.  This letter agreement contains the entire agreement between the Parties pertaining to the subject matter of this letter agreement.

6. Amendments.  This letter agreement may not be waived, altered, modified, changed, amended, rescinded or terminated except by an instrument in writing signed by an authorized representative of each of the Parties hereto.

7. Successors and Assigns.  The provisions of this letter agreement shall be binding upon, and shall inure to the benefit of the Parties and each of the Parties’ respective successors and assigns, and upon all creditors and parties in interest.

8. Third Party Beneficiary.   The Parties acknowledge and agree that this letter agreement has been entered into in order to induce Kidsco and 4Kids and the Affiliates to enter into the Asset Purchase Agreement.  The Parties acknowledge and agree that Kidsco is a third party beneficiary of this letter agreement.  However, as set forth above, nothing in this Letter Agreement shall eliminate or limit any obligation of Kidsco or Saban under the Kidsco Term Sheet or the Saban Guaranty.

9. Governing Law.  This letter agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York, without giving effect to the conflict of laws principles thereof.

 

 

  

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10.  Jurisdiction/Venue.  Any action or legal proceeding arising out of or in connection with the interpretation, breach or enforcement of this letter agreement shall be adjudicated by and subject to the exclusive jurisdiction of the Bankruptcy Court, and the Parties hereby submit to the core jurisdiction of the Bankruptcy Court for that purpose, or if jurisdiction cannot be had in the Bankruptcy Court for that purpose, then in the United States District Court for the Southern District of New York (the “District Court”).  The Parties hereby consent to personal jurisdiction and venue in the Bankruptcy Court and the District Court for all such actions and proceedings.

Please confirm that the foregoing satisfactorily set forth our agreement by having one of your authorized representatives execute the enclosed copy of this letter agreement and returning it to me.

Sincerely yours,

4KIDS ENTERTAINMENT, INC.

By:                                                                

AGREED TO AND ACCEPTED:

THE CW NETWORK, LLC

By:  _______________________________

KIDSCO ENTERTAINMENT, LLC

By:  _______________________________

SABAN PROPERTIES

By:  _______________________________

  

5ex10_1assignmentofdeposit.htm

EXHIBIT 10.1

 

 Assignment of Deposit Account

Dated as of   May 15, 2012_

__M-tron Industries, Inc. (“Mtron”) and Piezo Technology, Inc. (“PTI”), together known and doing business as “MtronPTI”__, whose address is __2525 Shader Road, Orlando, Florida 32804__ (the "Assignor"), pledges, assigns, transfers and grants a security interest to JPMorgan Chase Bank, N.A., whose address is 450 S Orange Avenue, Floor 10, Orlando FL 32801(together with its successors and assigns, the "Bank") in the Account (as defined below) owned by the Assignor, all of the Account in which Assignor has rights or power to transfer rights and all of the Account in which the Assignor later acquires ownership, other rights or the power to transfer rights. "Account" means each and all of account #__XXXXXXXXX__, any interest, additions and proceeds due or to become due on the Account and any substitutions, which Account is held at JPMorgan Chase Bank, N.A. (together with its successors and assigns, "Financial Institution") and includes all of the above described deposits, deposit accounts, payment intangibles, financial assets and other obligations of the Financial Institution, whether they are deposit accounts, negotiable or non-negotiable or book entry certificates of deposit, book entry investment time deposits, savings accounts, money market accounts, transaction accounts, time deposits, negotiable order of withdrawal accounts, share draft accounts, demand deposit accounts, instruments, general intangibles, chattel paper or otherwise, and all funds held in or represented by any of the foregoing, and any successor Account howsoever numbered, and all Accounts issued in renewal, extension or increase or decrease of or replacement or substitution for any of the foregoing; and all promissory notes, checks, cash, certificates of deposit, passbooks, deposit receipts, instruments, certificates and other records from time to time representing or evidencing the Account described above and any supporting obligations relating to any of the foregoing property.

This Assignment secures the payment and performance of the Liabilities. The term "Borrower" in this Assignment means each and all of M-Tron Industries, Inc. and Piezo Technology, Inc.

Control Agreement with Financial Institution and Power of Attorney. The Bank’s presentation of a copy of this Assignment including the Notice of Assignment and Acknowledgment and Control Agreement ("Notice") to the financial institution holding or issuer of the Account, including Financial Institution, is the Assignor's authentication of an irrevocable instruction to that financial institution or issuer now or hereafter maintaining the Account to follow the Bank’s instructions with respect to any of the Account without the Assignor’s further consent concerning (1) the payment or reinvestment of cash dividends, dividends or distributions and (2) the redemption, transfer, sale or any other disposition or transaction concerning the Account or the income and principal proceeds, substitutions and reinvestment of Account and (3) any other matter relating to the Account. The Bank is given an irrevocable power of attorney coupled with an interest that survives death or disability of the Assignor to execute any control agreement in the Assignor’s name with the Financial Institution or other institution or issuer in form and substance satisfactory to the Bank and to perform any obligation of the Assignor under this Assignment. The Assignor also irrevocably authorizes and directs each financial institution or issuer including the Financial Institution to send all notices, statements and all other communications concerning the Account to the Bank upon request of the Bank. The Bank is authorized at any time to restyle the Account or any portion thereof in its name or its nominee’s name. Each financial institution and issuer, including Financial Institution, is directed to follow all of the Bank's instructions without investigating the reason for any action taken by the Bank or the existence of any default and may rely on the instructions of the Bank without any liability to the Assignor. The rights and powers granted to the Bank in this Assignment are powers coupled with an interest and will neither be affected by the death, dissolution, termination of existence or bankruptcy of the undersigned nor by the lapse of time.

Liabilities. The term "Liabilities" in this Assignment means all debts, obligations, indebtedness and liabilities of every kind and character of each and any of the parties named as Borrower whether individual, joint and several, contingent or otherwise, now or hereafter existing in favor of the Bank including without limitation, all liabilities, interest, costs and fees, arising under or from any note, open account, overdraft, credit card, lease, Rate Management Transaction, letter of credit application, endorsement, surety agreement, guaranty, acceptance, foreign exchange contract or depository service contract, whether payable to the Bank or to a third party and subsequently acquired by the Bank, any monetary obligations (including interest) incurred or accrued during the pendency of any bankruptcy, insolvency, receivership or other similar proceedings, regardless of whether allowed or allowable in such proceeding, and all renewals, extensions, modifications, consolidations, rearrangements, restatements, replacements or substitutions of any of the foregoing. The term "Rate Management Transaction" in this Assignment means any transaction (including an agreement with respect thereto) that is a rate swap, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option, derivative transaction or any other similar transaction (including any option with respect to any of these transactions) or any combination thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other financial measures.

  

  

  

Representations, Warranties and Covenants. The Assignor represents, warrants and covenants that it will not withdraw any moneys from the Account and that it has not and will not assign the Account or any part of it. The passbook, certificate or other evidence of the Account has been delivered to the Bank. If at any time any part of the Account includes an International Banking Facility Time Deposit (as defined in Regulation D of the Board of Governors of the Federal Reserve System), any extensions of credit made by the Bank in reliance on this Assignment and that part of the Account shall be used only to support the undersigned's non-U.S. activities and that of its foreign affiliates.

Default/Remedies. If any of the Liabilities are not paid at maturity, whether by acceleration or otherwise, or if an event of default or default occurs, under the terms of any agreement related to any of the Liabilities, then the Bank shall have the right immediately, without notice, at the Bank's option, to withdraw (even if any early withdrawal penalty is imposed as a result) all or any portion of the Account and apply those moneys to the Liabilities whether or not the Liabilities have been declared to be due and owing, provided that, to the extent any Liabilities consist of extensions of credit to the Borrower by the issuance of letters of credit or other like obligations of the Bank to third parties which have not then been utilized, such proceeds shall be held by the Bank in a cash collateral account as security for the Liabilities.

Pledge. If the Assignor is not liable for all or any part of the Liabilities, then the Assignor agrees that:

	
1.  

	
If any moneys become available from any source other than the Account that the Bank can apply to the Liabilities, the Bank may apply them in any manner it chooses, including but not limited to applying them against obligations, indebtedness or liabilities which are not secured by this Assignment.

	
2.  

	
The Bank may take any action against the Borrower, the Account or any other collateral for the Liabilities, or any other person or entity liable for any of the Liabilities.

	
3.  

	
The Bank may release the Borrower or any other obligor from the Liabilities, either in whole or in part, or release the Account in whole or in part or any other collateral for the Liabilities, and need not perfect a security interest in the Account or any other collateral for the Liabilities.

	
4.  

	
The Bank does not have to exercise any rights that it has against the Borrower or anyone else, or make any effort to realize on the Account or any other collateral for the Liabilities, or exercise any right of setoff.

	
5.  

	
Without notice or demand and without affecting the Assignor's obligations hereunder, from time to time, the Bank is authorized to: (a) renew, modify, compromise, rearrange, restate, consolidate, extend, accelerate or otherwise change the time for payment of, or otherwise change the terms of the Liabilities or any part thereof, including increasing or decreasing the rate of interest thereon; (b) release, substitute or add any one or more sureties, endorsers, or guarantors; (c) take and hold other collateral for the payment of the Liabilities, and enforce, exchange, substitute, subordinate, impair, waive or release any such collateral; (d) proceed against the Account or any other collateral for the Liabilities and direct the order or manner of sale as the Bank in its discretion may determine; and (e) apply any and all payments received by the Bank in connection with the Liabilities, or recoveries from the Account or any other collateral for the Liabilities, in such order or manner as the Bank in its discretion may determine.

	
6.  

	
The Assignor's obligations hereunder shall not be released, diminished or affected by (a) any act or omission of the Bank, (b) the voluntary or involuntary liquidation, sale or other disposition of all or substantially all of the assets of the Borrower, or any receivership, insolvency, bankruptcy, reorganization, or other similar proceedings affecting the Borrower or any of its assets, (c) any change in the composition or structure of the Borrower or any other obligor on the Liabilities, including a merger or consolidation with any other person or entity, or (d) any payments made upon the Liabilities.

	
7.  

	
The Assignor expressly consents to any impairment of any other collateral for the Liabilities, including, but not limited to, failure to perfect a security interest and release of any other collateral for the Liabilities any such impairment or release shall not affect the Assignor's obligations hereunder.

	
8.  

	
The Assignor waives and agrees not to enforce any rights of subrogation, contribution or indemnification that it may have against the Borrower, any person liable on the Liabilities, or the Account, until the Borrower and the Assignor have fully performed all their obligations to the Bank, even if those obligations are not covered by this Assignment.

	
9.  

	
The Assignor waives (a) to the extent not prohibited by applicable law, all rights and benefits under any laws or statutes regarding sureties, as may be amended, (b) any right the Assignor may have to receive notice of the following matters before the Bank enforces any of its rights: (i) the Bank's acceptance of this Assignment, (ii) incurrence or acquisition of any Liabilities, (iii) any credit that the Bank extends to the Borrower, (iv) collateral received or delivered, default by any party to any loan papers related to the Liabilities or other action taken in reliance on this Assignment, and all notices and other demands of any description, (v) diligence and promptness in preserving liability against any obligor on the Liabilities, and in collecting or bringing suit to collect the Liabilities from any obligor on the Liabilities or to pursue any remedy in the Bank's power to pursue; (vi) notice of extensions, renewals, modifications, rearrangements, restatements and substitutions of the Liabilities or any collateral for the Liabilities; (vii) notice of failure to pay any of the Liabilities as they mature, any other default, adverse change in the financial condition of any obligor on the Liabilities, release or substitution of any collateral, subordination of the Bank's rights in any collateral, and every other notice of every kind that may lawfully be waived; (viii) the Borrower's default, (ix) any demand, diligence, presentment, dishonor and protest, or (x) any action that the Bank takes regarding the Borrower, any other person or entity, the Account, any other collateral for the Liabilities, or any of the Liabilities, which it may be entitled to contractually, by law or in equity, (c) any

  

  

  

right it may have to require the Bank to proceed against the Borrower, any guarantor or other obligor of the Liabilities, the Account or any other collateral for the Liabilities, or pursue any remedy in the Bank's power to pursue, (d) any defense based on any claim that the Assignor's obligations exceed or are more burdensome than those of the Borrower, (e) the benefit of any statute of limitations affecting the Assignor's obligations hereunder or the enforcement hereof, (f) any defense arising by reason of any disability or other defense of the Borrower or by reason of the cessation from any cause whatsoever (other than payment in full) of the obligation of the Borrower for the Liabilities, and (g) any defense based on or arising out of any defense that the Borrower may have to the payment or performance of the Liabilities or any portion thereof. The Bank may waive or delay enforcing any of its rights without losing them. Any waiver affects only the specific terms and time period stated in the waiver.

	
10.  

	
The Assignor agrees that to the extent any payment or transfer is received by the Bank in connection with the Liabilities, and all or any part of such payment or transfer is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be transferred or repaid by the Bank or transferred to or paid over to a trustee, receiver or any other person or entity, whether under any bankruptcy act or otherwise (any such payment or transfer is hereinafter referred to as a "Preferential Payment"), then this Assignment shall continue to be effective or shall be reinstated, as the case may be, and whether or not the Bank is in possession of this Assignment or whether this Assignment has been marked paid, cancelled, released or returned to the Assignor, and, to the extent of the payment or repayment or other transfer by the Bank, the Liabilities or part intended to be satisfied by the Preferential Payment shall be revived and continued in full force and effect as if the Preferential Payment had not been made. If this Assignment must be reinstated, the Assignor agrees to execute and deliver to the Bank any new assignments and agreements, if necessary or if requested by the Bank, in form and substance acceptable to the Bank, covering the Account.

	
11.  

	
The Assignor agrees to fully cooperate with the Bank and not to delay, impede or otherwise interfere with the efforts of the Bank to secure payment from the assets which secure the Liabilities including actions, proceedings, motions, orders, agreements or other matters relating to relief from automatic stay, abandonment of property, use of cash collateral and sale of the Bank's collateral free and clear of all liens.

	
12.  

	
The Assignor has (a) without reliance on the Bank or any information received from the Bank and based upon the records and information the Assignor deems appropriate, made an independent investigation of the Borrower, the Borrower's business, assets, operations, prospects and condition, financial or otherwise, and any circumstances that may bear upon those transactions, the Borrower or the obligations, liabilities and risks undertaken pursuant to this Assignment; (b) adequate means to obtain from the Borrower on a continuing basis information concerning the Borrower and the Bank has no duty to provide any information concerning the Borrower or other obligor on the Liabilities to the Assignor; (c) full and complete access to the Borrower and any and all records relating to any Liabilities now or in the future owing by the Borrower; (d) not relied and will not rely upon any representations or warranties of the Bank not embodied in this Assignment or any acts taken by the Bank prior to or after the execution or other authentication and delivery of this Assignment (including but not limited to any review by the Bank of the business, assets, operations, prospects and condition, financial or otherwise, of the Borrower); and (e) determined that the Assignor will receive benefit, directly or indirectly, and has or will receive fair and reasonably equivalent value, for the grant of the interest in the Account to the Bank. By entering into this Assignment, the Assignor does not intend: (i) to incur or believe that the Assignor will incur debts that would be beyond the Assignor's ability to pay as those debts mature; or (ii) to hinder, delay or defraud any creditor of the Assignor. The Assignor is neither engaged in nor about to engage in any business or transaction for which the remaining assets of the Assignor are unreasonably small in relation to the business or transaction, and any property remaining with the Assignor after the execution or other authentication of this Assignment is not unreasonably small capital.

Miscellaneous. The Assignor consents to any extension, postponement or renewal of any Liabilities, the release or discharge of all or any part of any security for the Liabilities, and the release or discharge or suspension of any rights and remedies against any person who may be liable for any of the Liabilities. The Bank does not have to look to any other right, any other collateral, or any other person for payment before it exercises its rights under this Assignment. The Assignor's obligations to the Bank under this Assignment are not subject to any condition, precedent or subsequent. If more than one person or entity signs this Assignment as Assignor, their obligations, covenants, representations and warranties are joint and several and the Account includes any property that is owned by any one or more, individually or jointly with any other person or entity. This Assignment is binding on the Assignor and its heirs, successors and assigns, and is for the benefit of the Bank and its successors and assigns. The use of section headings shall not limit the provisions of this Assignment. The Assignor authorizes the Bank to take whatever actions, and to execute any agreement, document or instrument, which the Bank deems necessary or desirable to accomplish the purposes of this Assignment. A carbon, photographic or other reproduction of this Assignment is sufficient as, and can be filed as, a financing statement. The Bank is irrevocably appointed the Assignor's attorney-in-fact to execute any financing statement on the Assignor's behalf covering the Account. The Assignor authorizes the Bank to file one or more financing statements related to the security interests created by this Assignment and further authorizes the Bank, instead of the Assignor, to sign such financing statements. Time is of the essence under this Assignment and in the performance of every term, covenant and obligation contained herein.

Assignment in Addition to Other Assignments. This Assignment is in addition to and not in substitution or replacement of any other assignment executed by the Assignor in favor of the Bank, and the Bank's rights under this Assignment and any such other assignment are cumulative.

Governing Law and Venue. This Assignment shall be governed by and construed in accordance with the laws of the State of Florida (without giving effect to its laws of conflicts), and to the extent applicable, federal law, except to the extent that the laws regarding the

  

  

  

perfection and priority of security interests of the state(s) in which either the Assignor or any property securing the Liabilities is located, are applicable. The Assignor agrees that any legal action or proceeding with respect to any of its obligations under this Assignment may be brought by the Bank in any state or federal court located in the State of Florida, as the Bank in its sole discretion may elect. By the execution and delivery of this Assignment, the Assignor submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Assignor waives any claim that the State of Florida is not a convenient forum or the proper venue for any such suit, action or proceeding.

WAIVER OF SPECIAL DAMAGES. THE ASSIGNOR WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT THE UNDERSIGNED MAY HAVE TO CLAIM OR RECOVER FROM THE BANK IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

JURY WAIVER. THE ASSIGNOR AND THE BANK (BY ITS ACCEPTANCE HEREOF) HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED ON CONTRACT, TORT, OR OTHERWISE) BETWEEN THE ASSIGNOR AND THE BANK ARISING OUT OF OR IN ANY WAY RELATED TO THIS DOCUMENT. THIS PROVISION IS A MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE FINANCING DESCRIBED HEREIN.

 

 

	  	  	
Assignor:

	  	  	  
	  	  	
By:

	
/s/ R. LaDuane Clifton

	  	  	
R. LaDuane Clifton

	
Chief Accounting Officer

	  	  	
Printed Name

	
Title

	  	
Date Signed:

	
May 15, 2012

 

 

The Bank acknowledges that the Account has been assigned to the Bank and is subject to a lien, security interest, pledge and assignment in the Bank’s favor and that the Bank has control of the Account and has recorded the Bank’s interest in the Account in the books and records of JPMorgan Chase Bank, N.A. and the Bank will follow the Bank’s instructions without the Assignor’s further consent.

	
Bank:

	  
	
JPMorgan Chase Bank, N.A.

	  
	
By:

	
/s/ Taylor Kennedy

	  
	  	
Taylor Kennedy

	
Assistant Vice President

	  
	  	
Printed Name

	
Title

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