Document:

exh10_3.htm

 

EXHIBIT 10.3

 

 

INTELLECTUAL PROPERTY SECURITY AGREEMENT

 

THIS INTELLECTUAL PROPERTY SECURITY AGREEMENT, dated as of July 26, 2010 is made by SPEECHSWITCH, INC., a New Jersey corporation (the “Grantor”), in favor of YA GLOBAL INVESTMENTS, L.P., a Cayman Islands exempt limited partnership (f/k/a Cornell Capital Partners, LP, hereinafter, the “Lender”).

 

W I T N E S S E T H:

 

WHEREAS, in connection with earlier financial accommodations between the Lender and the Grantor, the Lender is the holder of certain amended and restated secured convertible debentures issued by the Company to the Lender, and pursuant to that certain Security Agreement dated as of the date hereof between Grantor and Lender (as from time to time amended, restated, supplemented or otherwise modified, the “Security Agreement”), Grantor has granted to Seller a security interest in all of the assets of the Company;

 

WHEREAS, pursuant to such earlier financial accommodations, Grantor has agreed to execute and deliver to Lender this Intellectual Property Security Agreement; and

 

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor hereby agrees as follows:

 

1. DEFINED TERMS.

 

(a) When used herein the following terms shall have the following meanings:

 

“Copyrights” means all works capable of copyright under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, including all registrations, recordings and applications in the United States Copyright Office, and the right to obtain all renewals of any of the foregoing.

 

“Copyright Licenses” means all written agreements relating to any Copyright, including agreements providing the grant of rights to manufacture, distribute, exploit and sell materials derived from any Copyright, and whether Grantor is named as licensor, licensee or otherwise.

 

 “IP Licenses” shall mean Copyright Licenses, Patent Licenses and Trademark Licenses.

 

 “Patents” means (a) all letters patent of the United States, any other country or any political subdivision thereof, and all reissues and extensions of such letters patent, (b) all applications for letters patent of the United States or any other county and all divisions, continuations and continuations-in-part thereof, and (c) all rights to obtain any reissues or extensions of the foregoing.

 

  

  

  

 

“Patent Licenses” means all agreements, whether written or oral, relating to any Patent, including agreements providing for the grant by or to any Grantor of any right to manufacture, use or sell any invention covered in whole or in part by a Patent, and whether Grantor is named as licensor, licensee or otherwise.

 

“Trademarks” means (a) all trademarks, trade names, corporate names, business names, fictitious business names, trade styles, services marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or political subdivision thereof, or otherwise, and all common-law rights thereto, and (b) the right to obtain all renewals thereof.

 

“Trademark Licenses” means, collectively, each agreement, whether written or oral, relating to any Trademark, including agreements providing for the grant by or to any Grantor of any right to use any Trademark, and whether Grantor is named as licensor, licensee or otherwise.

 

(b) All capitalized terms used but not otherwise defined herein have the meanings given to them in the Security Agreement.

 

2. GRANT OF SECURITY INTEREST IN INTELLECTUAL PROPERTY COLLATERAL. To secure the complete and timely payment of all the Obligations of Grantor now or hereafter existing from time to time, Grantor hereby pledges and grants to Lender a continuing first priority security interest in all of Grantor’s right, title and interest in, to and under the following, whether presently existing or hereafter created or acquired (collectively, the “Intellectual Property Collateral”):

 

(a) all of its Patents and Patent Licenses to which it is a party including those referred to on Schedule I hereto;

 

(b) all of its Trademarks and Trademark Licenses to which it is a party including those referred to on Schedule II hereto;

 

(c) all of its Copyrights and Copyright Licenses to which it is a party including those registered Copyrights referred to on Schedule III hereto;

 

(d) all reissues, continuations or extensions of the foregoing;

 

(e) all goodwill of the business connected with the use of, and symbolized by, each Patent, each Patent License, each Trademark, each Trademark License, each Copyright and each Copyright License; and

 

(f) all products and proceeds of the foregoing, including, without limitation, any claim by Grantor against third parties for past, present or future (i) infringement or dilution of any Patent or Patent licensed under any Patent License, (ii) injury to the goodwill associated with any Patent or any Patent licensed under any Patent License, (iii) infringement or dilution of any Trademark or Trademark licensed under any Trademark License, (iv) injury to the goodwill associated with any Trademark or any Trademark licensed under any Trademark License, (v) infringement or dilution of any Copyright or Copyright licensed under any Copyright License, and (vi) injury to the goodwill associated with any Copyright or any Copyright licensed under any Copyright License.

 

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3. REPRESENTATIONS AND WARRANTIES.  Grantor represents and warrants that Grantor does not have any interest in, or title to, any Patent, Trademark or Copyright except as set forth in Schedule I, Schedule II and Schedule III, respectively, hereto.  To Grantor’s knowledge, this Intellectual Property Security Agreement is effective to create a valid and continuing Lien on all of Grantor’s Patents, Trademarks and Copyrights and such security interests are enforceable against any and all creditors of, and purchasers from, Grantor.  To Grantor’s knowledge, upon filing of this Intellectual Property Security Agreement with the United States Patent and Trademark Office and the United States Copyright Office, as applicable, and the filing of appropriate financing statements as set forth in the Security Agreement, all action necessary or desirable to protect and perfect Lender’s Lien on Grantor’s Patents, Trademarks and Copyrights shall have been duly taken.

 

4. COVENANTS.  Grantor covenants and agrees with Lender that from and after the date of this Intellectual Property Security Agreement:

 

(a) Grantor shall notify Lender immediately if it knows or has reason to know (i) that any application or registration relating to any Patent, Trademark or Copyright (now or hereafter existing) which is material to the Grantor’s business may become abandoned or dedicated or (ii) of any adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court) regarding Grantor’s ownership of any Patent, Trademark or Copyright which is material to the Grantor’s business or its right to register the same, or to keep and maintain the same.

 

(b) If Grantor, either directly or through any agent, employee, licensee or designee, files an application for the registration of any Patent, Trademark or Copyright with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency, then Grantor shall notify Lender of such filing and provide Lender copies of all such applications, in each case, within three business days of such filing and, upon request of Lender, Grantor shall execute and deliver a supplement hereto (in form and substance satisfactory to Lender) to evidence Lender’s Lien on such Patent, Trademark or Copyright, and the General Intangibles of Grantor relating thereto or represented thereby.

 

(c) Unless an application or registration is not material to Grantor’s business, Grantor shall take all actions necessary or requested by Lender to maintain and pursue each application, to obtain the relevant registration and to maintain the registration of each of the Patents or Trademarks (now or hereafter existing), including the filing of applications for renewal, affidavits of use, affidavits of noncontestability and opposition and interference and cancellation proceedings.

 

(d) In the event that any of the Intellectual Property Collateral which is material to Grantor’s business is infringed upon, or misappropriated or diluted by a third party, Grantor shall notify Lender promptly after Grantor learns thereof.  Grantor shall, unless it shall reasonably determine that such Intellectual Property Collateral is in no way material to the conduct of its business or operations, promptly take all commercially reasonable action necessary to protect such Intellectual Property, and shall take such other actions as Lender shall deem appropriate under the circumstances to protect such Intellectual Property Collateral.

 

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5. SECURITY AGREEMENT.  The security interests granted pursuant to this Intellectual Property Security Agreement are granted in conjunction with the security interests granted to Lender pursuant to the Security Agreement.  Grantor hereby acknowledges and affirms that the rights and remedies of Lender with respect to the security interest in the Intellectual Property Collateral made and granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which are incorporated by reference herein as if fully set forth herein.  Lender acknowledges and agrees that so long as no Event of Default shall have occurred and be continuing nothing herein shall prevent Grantor from granting licenses in and to the Intellectual Property Collateral in the ordinary course of Grantor’s business.

 

6. REINSTATEMENT.  This Intellectual Property Security Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against Grantor for liquidation or reorganization, should Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

 

7. NOTICES. Whenever it is provided herein that any notice, demand, request, consent, approval, declaration or other communication shall or may be given to or served upon any of the parties by any other party, or whenever any of the parties desires to give and serve upon any other party any communication with respect to this Intellectual Property Security Agreement, each such notice, demand, request, consent, approval, declaration or other communication shall be in writing and shall be given in the manner, and deemed received, as provided for in the Security Agreement.

 

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IN WITNESS WHEREOF, Grantor has caused this Intellectual Property Security Agreement to be executed and delivered by its duly authorized officer as of the date first set forth above.

 

	
  

	
SPEECHSWITCH, INC.

 

 

	
  By:  

	
_______/s/ Kenneth P. Glynn       

	
  

	
Name:     Kenneth P. Glynn

	
  

	
Title:       President

 

	
  

	 

 

ACCEPTED and ACKNOWLEDGED by:

 

YA GLOBAL INVESTMENTS, L.P.

 

By:           Yorkville Advisors, LLC

Its:           Investment Manager

By_______________________________

Name:

	
Title:

 

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Schedule I

 

A.  Patents Issued

	
NO.

	
COUNTRY

	
PATENT APPLICATION NO.

	
PATENT NO.

	
1

	
USA

	
09/767,448

	
6,563,911

	
2

	
USA

	
09/795,582

	
6,671,354

	
3

	
USA

	
10/055,854

	
6,940,951

	
4

	
USA

	
10/696,531

	
7,146,243

	
5

	
USA

	
11/607,627

	
7,747,342

 

 

B.  Patents Applications

NONE

 

C.  Patent Licenses

NONE

 

  

  

  

Schedule II

 

A.  Trademark Registrations

 

NONE

 

B.  Trademark Applications

 

NONE

C.  Trademark Licenses

NONE

 

 

 

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Schedule III

 

A.  Copyright Registrations

NONE

 

B.  Copyright Applications

 

NONE

 

C.  Copyright Licenses

 

NONE

 

 

 

3exh10_4.htm

 

 

EXHIBIT 10.4

 

PURCHASE AGREEMENT

This PURCHASE AGREEMENT, dated as of July 26, 2010 (this “Agreement”), by and among E-LIONHEART ASSOCIATES, LLC, a Delaware limited liability company, as the buyer (hereinafter, the “Purchaser”), YA GLOBAL INVESTMENTS, L.P., a Cayman Islands exempt limited partnership, as the seller (f/k/a Cornell Capital Partners, LP, hereinafter, the “Seller”), and SPEECHSWITCH, INC., a New Jersey corporation (hereinafter, the “Company”).

 

W I T N E S S E T H:

WHEREAS, in connection with the transactions contemplated hereby, the Company (i) issued to the Seller five (5) Amended and Restated Secured Convertible Debentures dated of even date herewith (collectively, the “Amended and Restated Debentures”) which Amended and Restated Debentures amend and restate in its entirety that certain Secured Convertible Debenture dated March 30, 2007, made by the Company payable to the Holder in the original principal amount of One Million ($1,000,000.00) Dollars (the “Original Debenture”), (ii) executed a new Security Agreement dated as of the date hereof (the “Security Agreement”) in favor of the Seller and (iii) executed a new Intellectual Property Security Agreement dated as of the date hereof (the “IP Security Agreement”) in favor of the Seller; and

WHEREAS, the Purchaser desires to purchase the Amended and Restated Debentures, and the Seller desires to sell to the Purchaser the Amended and Restated Debentures.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.           Purchase and Sale of Amended and Restated Debentures; Purchase Price; Failure to Purchase Amended and Restated Debentures; Waiver; Indemnity.

1.1         Purchase and Sale of Amended and Restated Debentures.  Purchaser shall purchase from Seller, and Seller shall sell to Purchaser:  (i) on the date hereof, pursuant to an Assumption and Assignment Agreement, substantially in the form attached hereto as Exhibit A, that certain Amended and Restated Secured Convertible Debenture No. SSWC-2-1 dated as of the date hereof (“Debenture SSWC-2-1”) issued by the Company to the Seller in the original principal amount of $208,707.74; (ii) on August 13, 2010, pursuant to an  Assumption and Assignment Agreement, substantially in the form attached hereto as Exhibit A, that certain Amended and Restated Secured Convertible Debenture No. SSWC-2-2 dated as of the date hereof (“Debenture SSWC-2-2”) issued by the Company to the Seller in the original principal amount of $208,707.74; (iii) on September 15, 2010, pursuant to an Assumption and Assignment Agreement, substantially in the form attached hereto as Exhibit A, that certain Amended and Restated Secured Convertible Debenture No. SSWC-2-3 dated as of the date hereof (“Debenture SSWC-2-3”) issued by the Company to the Seller in the original principal amount of $208,707.74; (iv) on October 15, 2010, pursuant to an Assumption and Assignment Agreement, substantially in the form attached hereto as Exhibit A, that certain Amended and Restated Secured Convertible Debenture No. SSWC-2-4 dated as of the date hereof (“Debenture SSWC-2-4”) issued by the Company to the Seller in the original principal amount of $208,707.74; and (v) on November 15, 2010, pursuant to an Assumption and Assignment Agreement, substantially in the form attached hereto as Exhibit A, that certain Amended and Restated Secured Convertible Debenture No. SSWC-2-5 dated as of the date hereof (“Debenture SSWC-2-5”) issued by the Company to the Seller in the original principal amount of $208,707.74.  Seller shall sell to the Purchaser Debenture SSWC-2-1, Debenture SSWC-2-2, Debenture SSWC-2-3 and Debenture SSWC-2-4 (collectively, the “Unsecured Amended and Restated Debentures”) without assigning to Purchaser any security interests or liens.  Accordingly, any obligations owing by the Company to the Purchaser pursuant to the Unsecured Amended and Restated Debentures shall be unsecured.  In connection with selling to the Purchaser Debenture SSWC-2-5, Seller shall assign to Seller all of its right, title and interest in and to the Security Agreement, IP Security Agreement, all similar agreements that purport to grant to Seller a security interest or lien on any Company assets and all documents, instruments and/or agreements executed in connection therewith and related thereto.

 

  

  

  

 

1.2           Representations and Warranties.  The Seller shall sell to Purchaser the Amended and Restated Debentures on an AS IS, WHERE IS BASIS, WITHOUT RECOURSE AND WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND except as expressly set forth in the Assumption and Assignment Agreements executed in connection with the purchase and sale of the Amended and Restated Debentures.

1.2           Purchase Price.  The purchase price for each Amended and Restated Debenture shall be One Hundred Thousand ($100,000.00) Dollars (the “Purchase Price”) and shall be paid via wire transfer in immediately available funds.

1.3           General Waiver and Release (Company).   The Company hereby acknowledges and agrees that it has no offsets, defenses, claims, or counterclaims against Seller, its general partner, and its investment manager, and each of their respective agents, servants, attorneys, advisors, officers, directors, employees, affiliates, representatives, investors, partners, members, managers, predecessors, successors, and assigns (collectively, the “Seller Parties”) and that if the Company now has, or ever did have, any offsets, defenses, claims, or counterclaims against the Seller Parties, or any one of them, whether known or unknown, at law or in equity, from the beginning of the world through this date and through the time of execution of this Agreement, all of them are hereby expressly WAIVED, and the Company hereby RELEASES the Seller Parties from any liability therefor.

1.4           General Waiver and Release (Purchaser).  The Purchaser hereby acknowledges and agrees that, in connection with its purchase of Amended and Restated Debentures, it has no offsets, defenses, claims, or counterclaims against Seller, its general partner, and its investment manager, and each of their respective agents, servants, attorneys, advisors, officers, directors, employees, affiliates, representatives, investors, partners, members, managers, predecessors, successors, and assigns (collectively, the “Seller Parties”) and that if the Purchaser now has, or ever did have or ever will have, any offsets, defenses, claims, or counterclaims against the Seller Parties, or any one of them, in connection with its purchase of the  Amended and Restated Debentures, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED, and the Purchaser hereby RELEASES the Seller Parties from any liability therefor.

 

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1.5         Indemnification.  In consideration of the Seller’s execution and delivery of this Agreement, and in addition to all of the Purchaser’s other obligations under this Agreement, the Purchaser shall defend, protect, indemnify and hold harmless the Seller, its general partner, and its investment manager, and each of their respective agents, servants, attorneys, advisors, officers, directors, employees, affiliates, representatives, investors, partners, members and managers (collectively, the “Seller Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses (irrespective of whether any such Seller Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by the Seller Indemnitees or any of them as a result of, or arising out of, or relating to this Agreement, any Assumption and Assignment Agreement and/or the transactions contemplated hereby and thereby, including, without limitation, (a) any misrepresentation made by the Purchaser or the Company in this Agreement, any Assumption and Assignment Agreement or in any certificate, instrument or document contemplated hereby or thereby or related hereto or thereto, (b) any breach of any covenant, agreement or obligation of the Purchaser or the Company contained in this Agreement, any Assumption and Assignment Agreement or in any certificate, instrument or document contemplated hereby or thereby or related hereto or thereto, or (c) any cause of action, suit or claim brought or made against such Seller Indemnitee arising out of or resulting from the execution, delivery, performance or enforcement of this Agreement, any Assumption and Assignment Agreement or any instrument, document or agreement executed pursuant hereto or thereto or in connection herewith or therewith.  To the extent that the foregoing undertaking by the Purchaser may be unenforceable for any reason, the Purchaser shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities, which is permissible under applicable law.

1.6         Non-deprecation. The parties further agree that they will not criticize, denigrate or otherwise speak adversely about the other.

2.           Representations and Warranties of the Seller.

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

3.           Representations and Warranties of the Company and the Purchaser.  The Company and Purchaser each represent and warrant to the Seller:

3.1         The Company and Purchaser are fully authorized and empowered without restriction to execute and deliver this Agreement and to perform each of their covenants and agreements hereunder. When executed and delivered by the Company and Purchaser, this Agreement constitutes the valid and binding obligation of the Company and the Purchaser enforceable against the Company and the Purchaser in accordance with its terms, except to the extent enforceability may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights in general and subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

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3.2         The Purchaser hereby represents and warrants that (i) the Purchaser is an “Accredited Investor” as that term is defined in Rule 501(a)(3) of Regulation D, (ii) the Purchaser and its advisors (and its counsel), if any, have been furnished with all materials relating to the business, finances and operations of the Company and information deemed material to making an informed investment decision regarding the purchase of the Amended and Restated Debentures, which have been requested by the Purchaser, (iii) the Purchaser and its advisors, if any, have been afforded the opportunity to ask questions of the Company and its management, (iv) the Purchaser understands that its investment in the Amended and Restated Debentures involves a high degree of risk (including the risk that the Company may not honor conversions), and (v) the Purchaser has sought such accounting, legal and tax advice, as it has considered necessary to make an informed investment decision with respect to its acquisition of the Amended and Restated Debentures.

4.           Other Agreements of the Parties.

4.1         Other Actions. Each party shall use its best efforts to consummate the transactions contemplated hereby.  The Seller shall execute and/or deliver and take such other actions as shall be reasonably requested by the Purchaser; provided, that no such action shall alter the terms of this Agreement or cause Seller to incur any out-of-pocket expense.

4.2         Expenses.  The Purchaser shall bear its own expenses in connection with its obligations hereunder and otherwise in connection with this Agreement and the related documents.  Subject to Section 1.5 above, the Seller shall bear its own expenses in connection with its obligations hereunder and otherwise in connection with this Agreement and the related documents.

4.3         Taxes.  Any taxes, including, without limitation, transfer taxes, payable as a result of the purchase and sale of the Amended and Restated Debentures shall be paid by the Purchaser.

4.4         Security Interest; Subordination.  The Purchaser and the Company each hereby acknowledges, confirms and agrees that, (i) the obligations owed by the Company to the Purchaser under the Unsecured Amended and Restated Debentures are unsecured, (ii) the Security Agreement prohibits the Company from, among other things, granting to the Purchaser a security interest in its assets and (iii) so long as any obligations remain due and owing by the Company to the Seller, the Company shall not grant to Purchaser, and the Purchaser shall not be granted by the Company, any security interest in any of the Company’s assets.  Notwithstanding anything herein to the contrary, the Purchaser hereby agrees that (a) all obligations and liabilities of the Company to the Purchaser, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent or now or hereafter existing, or due or to become due, including, without limitation, all obligations of the Company to the Purchaser arising under any Amended and Restated Debenture, shall be subordinate to all obligations and liabilities of the Company to the Seller, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent or now or hereafter existing, or due or be become due, including, without limitation, all obligations of the Company to the Seller arising under the Amended and Restated Debentures, Security Agreement, IP Security Agreement and the other Transaction Documents (as defined in the Amended and Restated Debentures), (b) any and all security interests, liens and/or encumbrances the Purchaser may have against, or with respect to, any of the Company’s assets (“Purchaser Liens”) shall be subordinate to any and all security interests, liens and/or encumbrances the Seller may have against, or with respect to, any of the Company’s assets, (c) the Seller shall not owe any duty to the Purchaser as a result of or in connection with any Purchaser Liens, including, without limitation, any marshalling of assets or protection of the rights or interests of the Purchaser; (d) the Seller shall have the exclusive right to manage, perform and enforce the underlying terms of the Security Agreement, IP Security Agreement and each other document, instrument and agreement executed from time to time in connection therewith (collectively, the “Security Agreements”) relating to the assets of the Company and to exercise and enforce its rights in its sole and exclusive discretion; (e) only the Seller shall have the right to restrict, permit, approve or disapprove the sale, transfer or other disposition of the assets of the Company; (f) as between the Seller and the Purchaser, the terms of this Agreement shall govern even if all or part of any of the Seller’s claims or liens are avoided, disallowed, set aside or otherwise invalidated; and (g) regardless of whether the Seller’s claims are allowed in a bankruptcy of the Company, the Seller shall be entitled to receive from the Company all amounts owed by the Company to the Seller prior to the Purchaser receiving any payment from the Company on account of obligations owed by the Company to the Purchaser.  In addition, the Purchaser waives all rights to affect the method or challenge the appropriateness of any action taken by the Seller in connection with the Seller’s enforcement of its rights under the Security Agreements.

 

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4.5           Ratification of Financing Documents; Cross-Default; Cross-Collateralization; Further Assurances. The Company:

 

	
(i)  

	
Hereby ratifies, confirms, and reaffirms all and singular the terms and conditions of the Original Debenture, that certain Security Agreement entered into and made effective as of February 28, 2005 by and between the Company and the Seller (the “February 2005 Security Agreement”), the other Transaction Documents (as defined in the Original Debenture and Amended and Restated Debentures) and all documents, instruments and agreements executed in connection therewith or related thereto (the “Financing Documents”).  The Company further acknowledges and agrees that except as specifically amended in this Agreement, the Amended and Restated Debentures, the Security Agreement and IP Security Agreement, as applicable, all terms and conditions of the Financing Documents and related instruments and agreements shall remain in full force and effect;

 

	
(ii)  

	
Hereby ratifies, confirms, and reaffirms that (i) the obligations secured by the Financing Documents include, without limitation, the Obligations (as defined in the Security Agreement and February 2005 Security Agreement), and any future modifications, amendments, substitutions or renewals thereof, (ii) all collateral, whether now existing or hereafter acquired, granted to the Seller pursuant to the Financing Documents, including, without limitation, the Security Agreement, February 2005 Security Agreement and IP Security Agreement, or otherwise, shall secure all of the Obligations until full and final payment of the Obligations, and (iii) the occurrence of a default and/or event of default under any Financing Document, including, without limitation, the Amended and Restated Debentures, Security Agreement or IP Security Agreement, or the Company’s failure to observe or perform any covenant, agreement or warranty contained in, or otherwise commit any breach or default of any provision of this Agreement, shall, without any further action of any party, constitute an event of default under all of the Financing Documents, it being the express intent of the Company that all of the Obligations be fully cross-collateralized and cross-defaulted; and

 

	
(iii)  

	
Shall, from and after the execution of this Agreement, execute and deliver to the Seller whatever additional documents, instruments, and agreements that the Seller may reasonably require in order to correct any document deficiencies, or to vest or perfect the Financing Documents and the collateral granted therein or herein more securely in the Seller and/or to otherwise give effect to the terms and conditions of this Agreement, and hereby authorizes the Seller to file any financing statements (including financing statements with a generic description of the collateral such as “all assets”), and take any other normal and customary steps, the Seller deems necessary to perfect or evidence the Seller’s security interests and liens in any such collateral.  This Agreement constitutes an authenticated record.

 

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5.           Miscellaneous.

5.1         Entire Agreement, Survival.  This Agreement among the parties contains, and is intended as, a complete statement of all of the terms and agreements among the parties with respect to the matters provided for herein and supersedes any previous agreements and understandings among the parties with respect to those matters.  All of the representations, warranties, covenants and agreements of each of the parties contained in this Agreement and/or in any related document shall survive the execution, delivery and performance of this Agreement and each related document.

5.2         Jurisdiction and Governing Law.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of New Jersey without regard to the principles of conflict of laws.  The parties further agree that any action between them shall be heard in Hudson County, New Jersey, and expressly consent to the jurisdiction and venue of the Superior Court of New Jersey, sitting in Hudson County and the United States District Court for the District of New Jersey sitting in Newark, New Jersey for the adjudication of any civil action asserted pursuant to this Paragraph.

5.3         Severability.  In the event that any provision hereof would, under applicable law, be invalid or unenforceable in any respect (i) such provision shall be enforced to the maximum extent permissible under applicable law, and (ii) the invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

5.4         Confidential Agreement.  In consideration of the covenants and payments set forth above, the parties hereby covenant and agree that, except as may be required by applicable law, they and their agents shall keep the fact and terms of this Agreement confidential, and shall not, under any circumstances whatsoever, reveal same to any person or entity, including but not limited to, any employee, agent, associate, customer, or any person or entity with which the parties has any business relationship whatsoever, or to any member of the press or the public; provided, however, that they may reveal such information as is required by an enforceable court order, upon notice to the other party, or as required by the Internal Revenue Service.

 

  

  

  

 

5.5         Miscellaneous Provisions.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. No assignment of this Agreement or of any rights or obligations hereunder may be made by any party (by operation of law or otherwise) without the prior written consent of the other parties.

5.6         Signatures.  This Agreement may be executed in counterparts and with facsimile signatures with the effect as if all parties hereto had executed the same document. All counterparts shall be construed together and shall constitute a single Agreement. Telecopied or email (via PDF) signatures shall be deemed to have the same effect as an original.

 

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IN WITNESS WHEREOF, this Purchase Agreement has been duly executed by the Parties as of the date first set forth above.

 

	SELLER:
	 
	 
	YA GLOBAL INVESTMENTS, L.P.
	 
	By: Yorkville Advisors, LLC
	Its: Investment Manager
	 
	 
	By:                    /s/ Troy Rillo                               
	            Name:    Troy Rillo
	            Title:      Sr. Managing Director

 

 

	PURCHASER:
	 
	 
	E-LIONHEART ASSOCIATES, LLC
	 
	 
	By:                     /s/ Edward Bronson                       
	             Name:     Edward Bronson
	             Title:       Managing Member

 

 

	COMPANY:
	 
	SPEECHSWITCH, INC.
	 
	 
	By:                      /s/ Kenneth P. Glynn                                  
	            Name:     Kenneth P. Glynn
	            Title:       President
	 

 

 

  

  

  

 

EXHIBIT A

FORM OF ASSUMPTION AND ASSIGNMENT AGREEMENT

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