Exhibit 10.5
DATE
1 July 2009
TRILLIANT EXPLORATION
CORP
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LOAN NOTE
INSTRUMENT
CONSTITUTING
TRILLIANT EXPLORATION LOAN NOTES
2009
______________________________________________________________
GSC Solicitors
31-32 Ely Place
London EC1N
6TD
Tel: 020 7822
2222
Fax: 020 7822
2211
CONTENTS
THIS INSTRUMENT
is made by way of deed poll on 1
July 2009
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Trilliant
Exploration Corp a company registered under the laws of Nevada USA
with company registration number 0001378948 and having its
registered office at 2300 West Sahara Avenue Suite 800, Las Vegas,
NV 89102 United States of America the " Company
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The Company has agreed to create up
to £1,500,000 loan notes (the " Loan Notes ")
identifiable as the Trilliant Exploration Loan Notes 2009 and has
determined to constitute and issue the same on the terms set out
below.
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DEFINITIONS
AND INTERPRETATION
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The following words have these
meanings in this Instrument unless a contrary intention
appears;
“ Adjustment Event
” means any or all of the following, at any time, or by
reference to any record date, while the Notes remain in
issue:
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any allotment
or issue of Equity Securities by the Company by way of
capitalisation of profits or reserves;
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any
cancellation, purchase or redemption of Equity Securities, or any
reduction or repayment of Equity Securities, by the
Company;
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any
sub-division or consolidation of Equity Securities by the Company;
and
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any issue of
securities or other instruments convertible into shares in, or
Equity Securities of, the Company or any grant of options, warrants
or other rights to subscribe for, or call for the allotment or
issue of, shares in, or Equity Securities of, the
Company,
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but excluding any issue of Equity
Securities of the Company pursuant to the exercise of any options
granted to employees or directors of the Company.
“ Aggregate Principal
Amount ” means, in respect of the Loan Notes in issue at
any time, the aggregate nominal amount of the Loan Notes
outstanding at that time together with all accrued and/or
capitalised interest;
“ Business Day ”
means a day other than a Saturday or a Sunday on which banks are
open for business in London and times of such days shall be
construed in accordance with the time then prevailing in
London;
“ Certificate ”
means a certificate evidencing title of the Loan Notes, in the
form, or substantially the form, set out in Schedule 1;
“ Change of Control
Event ” means a person or group of persons acting in
concert (the “ Bidder ”) making an offer for 50%
or more of the issued Shares of the Company and such offer being
declared unconditional or the Bidder otherwise acquiring more than
or controlling the voting rights attached to 50% or above of the
issued Shares of the Company.
“ Commencement Date
” means the date of this Instrument;
“ Conversion
Date ” means the date within 5 Business Days of receipt
of Notice of Conversion by the Company;
“ Conversion Price
” means the price of 45 cents per Share;
“ Default Event”
has the meaning given to that term in Clause 6.1;
“ Directors”
means the Board of Directors of the Company from time to
time;
“ Equity Securities
” has the meaning given in section 94 of the Companies Act
1985;
“ Extraordinary
Resolution ” has the meaning given to that term in
paragraph 16 of Schedule 4;
“ Group
Company” means the Company, any parent company of the
Company, and any subsidiary or subsidiary undertakings of the
Company or any such parent company, each of its parent undertakings
and each of its and their respective subsidiary undertakings and
“ Group ” shall be construed
accordingly;
“ Instrumen
t” means this loan note instrument;
“ Interest Rate
” means 12% per annum (or part thereof) for the remainder of
the Term to be paid in accordance with the provisions of paragraph
3 below;
“ Heads of Agreement
” means the heads of agreement entered into between the
Charms Investments Limited and Benbrack Charkit Limited whereby
Benbrack Charkit Limited agreed to subscribe for Loan Notes
constituted under the terms of this Instrument to the value of
£1,500,000 in the Company;
“Investor”
means Benbrack Charkit Limited being
a party to the Heads of Agreement;
“ Loan Notes”
means, as the context requires:
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the secured
loan notes of the Company constituted by this Instrument pursuant
to the terms of the Investment Agreement;
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the amount of
the secured loan notes of the Company constituted by this
Instrument then issued and outstanding and fully paid up (whether
in one or more tranches); or
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a specific
portion of the secured loan notes of the Company constituted by
this Instrument or the monies represented by the secured loan notes
of the Company constituted by this Instrument;
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“ Loan Note Subscription
Date ” means the date on which the Loan Notes (or any of
them) are subscribed and paid for in cash by the
Investor;
“ Noteholders”
means the person(s) for the time being entered in the Register as
the holders of the Loan Notes;
“Notice of
Conversion” means
notice of Conversion of Loan Notes in writing to be given at any
time prior to the expiry of the Term to the Company by Noteholders
requiring conversion of Loan Notes into Shares at the Conversion
Price.
“ Register”
means the register of Noteholders maintained by the Company as
provided for in Clause 9;
“ Registered
Office” means the registered office of the Company from
time to time;
“ Repayment
Date” means the date fixed for repayment by the
Noteholder(s) being 24 June 2010;
“Share
Charge” means the
share charge to be granted by the Company on or before the
Commencement Date securing the aggregate of the Loan Notes to be
issued pursuant to the terms of this Loan Note
Instrument.
“ Shares” means
the shares in the capital of the Company in issue from time to
time; and
“ Term ” means
the period from the Commencement Date to the Repayment Date (or, if
later, the date of repayment of all of the Loan Notes);
In this Instrument, unless the
contrary intention appears:
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the singular
includes the plural and vice versa and any gender includes any
other gender;
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‘person’ includes a firm, a
partnership, a body corporate, an unincorporated association or
body, a state or agency of state, a trust or a foundation (whether
or not having separate legal personality);
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a person
includes that person’s heirs, executors, administrators,
successors, and assigns;
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a document
means that document as amended, replaced or novated;
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a statute or
other law means that statute or other law as amended or replaced,
whether before or after the date of this deed and includes
regulations and other instruments made under it;
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a clause or
schedule is a reference to a clause or a schedule in this
Instrument;
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a thing or an
amount includes the whole and each part of it;
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a month means a
calendar month; and
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a group of
persons includes all of the collectively, any two or more
collectively and each of them individually;
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where the word
‘including’ or ‘includes’ is used, it is to
be taken to be followed by the words: ‘but not limited
to’ or ‘but is not limited to’, as the case
requires;
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where a period
of time is expressed to be calculated from or after a specified
day, that day is included in the period;
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“Pounds
Sterling” and “£” denote the lawful
currency of the United Kingdom;
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a reference to
“date of redemption” means the date on which all the
outstanding nominal amount and compounded and/or accrued interest
on all the outstanding Loan Notes is finally paid; and
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The Investment
Agreement shall be deemed to be incorporated into this
Instrument.
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If a payment is due, or an event
should occur, on a day that is not a Business Day, the date for
payment or the occurrence of the event is the next succeeding
Business Day.
Headings are inserted for
convenience and do not affect the interpretation of this
Instrument.
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AMOUNT AND
STATUS OF LOAN NOTES
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The aggregate
nominal amount of the Loan Notes constituted by this Instrument is
limited to £1,500,000 and shall be referred to as the
Trilliant Exploration Loan Notes 2009.
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The Company
will issue the Loan Notes on the relevant Loan Note Subscription
Date for cash at par (being £1.00 per Loan Note) in integral
multiples of £1.00 in any number of tranches on the
Subscription Date.
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Subject to this
Instrument and the Schedules, the whole of the Loan Notes as and
when issued shall rank pari passu equally and rateably without
discrimination or preference and as an obligation of the Company
secured by the grant of the Share Charge.
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The Loan Notes
issued under the terms of this Instrument shall be subordinated to
$1.5m convertible loan notes issued to Trafalgar Capital Advisors
and affiliates issued prior to the date of this Instrument save
that the Share Charge shall rank as a first charge over the Secured
Assets comprising shares in Global Diamond Resources
Plc.
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Until the Loan
Notes are redeemed or repaid in accordance with this Instrument,
interest on the Aggregate Nominal Amount together with capitalised
interest shall accrue at the Interest Rate.
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All interest
shall be capitalised, compounded and payable quarterly or upon
payment or redemption of the Loan Notes;
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Interest shall
be calculated on the basis of the actual number of days elapsed for
the relevant period.
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The Company
shall repay to the Noteholder the principal amount together with
interest on the Loan Notes at the Interest Rate on the Repayment
Date provided always that repayment shall not be required if the
Loan Notes are converted in accordance with Schedule 3
hereto.
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All Loan Notes
redeemed by the Company pursuant to the terms of this Instrument
will be cancelled and will not be available for reissue.
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In the event
that any income or other tax is deducted from a payment, the
Company will issue to the Noteholder as soon as reasonably
practicable a certificate of deduction of tax in respect of the tax
deducted or withheld.
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VOLUNTARY
EARLY REPAYMENT
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The Company may
at any time, by giving the Noteholders not less than one month's
written notice, repay all or a portion of the Loan Notes (such
portion being the amount of £100,000 or integral multiples
thereof) and immediately upon the expiration of such notice the
Company shall repay the amount to the Noteholders specified in such
notice ( Specified Amount ).
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The Company
shall also pay to the Noteholders all interest accrued due on the
Specified Amount to the date of repayment of the Specified
Amount.
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Any payment in
reduction in the amount of the Loan Notes under clause 5.1 shall be
made pro rata to all Noteholders in proportion to the outstanding
amounts of the Loan Notes held by each of them.
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The Company
shall immediately notify the Noteholders in writing of a Change of
Control Event (the “ Notification” ) and shall
promptly disclose to the Noteholder all reasonably requested
information in relation thereto. Within 60 days of
receipt of the Notification, each of the Noteholders shall be
entitled by giving notice in writing to the Company to demand
immediate repayment of the Aggregate Principal Amount of Loan Notes
held by the Noteholder.
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Without
prejudice to Clauses 4 and 5 each Noteholder shall be entitled to
require that all outstanding Loan Notes held by him are immediately
repayable at par (with all accrued and/or capitalised interest) on
the happening of any of the following events (each a “
Default Event ”):
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the Company
fails to repay any of the Loan Notes within 5 Business Days of the
due date for redemption or payment thereof; or
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if an order is
made or an effective resolution passed for winding-up of the
Company (otherwise than for the purposes of or in the
course of a solvent re-organisation, reconstruction or amalgamation
previously approved by the Noteholder); or
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if an
encumbrancer has taken possession of or if a receiver,
administrative receiver, liquidator, judicial factor or other
similar officer is appointed to take possession of the whole or any
material part of the property or undertaking of the Company and in
any such case is not discharged, withdrawn or removed within 14
days of possession being taken or an appointment being made
(excluding any period during which the possession or appointment is
being contested in good faith); or
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any
administration order or any administration application has been
made in respect of the Company; or
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if the Company
(otherwise than in the course of a reorganisation, reconstruction
or amalgamation with another company in terms previously approved
by the Noteholder) ceases or threatens to cease to carry on its
business or a substantial part of its business; or
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the Company is
deemed to be unable to pay its debts as they fall due or is unable
to pay its debts pursuant to or for the purposes of any applicable
law; or
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if a material
default or breach is made by the Company in the performance or
observance of any covenant or provisions (other than any covenant
for the payment of the nominal amount on the Loan Notes) binding on
it under the Loan Notes which has a material adverse effect on the
Company (to be determined by the Noteholder acting reasonably and
in good faith ) and, in the case of any default or breach which is
capable of remedy, the Company fails to remedy the breach within
the period of 10 days after receipt of a written request by the
Noteholder; or
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if the security
constituted by any mortgage, charge or other security document of
the Company becomes enforceable as a result of an event of default
(other than an event of default arising out of a liability being
contested in good faith) and the security holder takes steps to
enforce the security;
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if any warranty
given by the Company pursuant to this Instrument proves to have
been incorrect in any material respect; or
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there is a
material breach of the terms of this Instrument.
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The Company will immediately give
notice to the Noteholder of the happening of any Default Event upon
becoming aware of the same.
The Loan Notes shall be freely
transferable (in multiples of not less than £1,000) in
accordance with the terms set out in Schedule 2.
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The
Certificates will be in the form or substantially in the form set
out in Schedule 1.
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Every sole
Noteholder is entitled without charge to receive one Certificate
for the Loan Notes held by that Noteholder.
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Joint
Noteholders are entitled to only one Certificate in respect of the
Loan Notes held jointly by them. Such Certificate will
be delivered to the joint holder whose name stands first in the
Register in respect of the joint holding or to another person as
the joint holders direct in writing.
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The Company is
not bound to register more than 4 persons as joint holders of any
Loan Notes.
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Where part of a
holding of Loan Notes has been transferred or redeemed the Company
will issue, free of charge to the relevant Noteholder, a fresh
Certificate for the balance of the Loan Notes retained by that
Noteholder.
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The Company
will recognise the registered holder of any Loan Notes as the
absolute owner of the Loan Notes. The Company is not
bound to take notice or see to the execution of any trust whether
express, implied or constructive to which any Loan Notes may be
subject.
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The receipt of
the registered holder for the time being of any Loan Notes or in
the case of joint registered holders the receipt of any of them for
any other monies payable in respect of the Loan Note is a good
discharge to the Company, despite any notice it may have, whether
express or otherwise, of the right, title, interest or claim of any
other person to or in such Loan Notes or monies.
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Every
Noteholder, any of whose Loan Notes is due to be redeemed under any
of the provisions of this Instrument, shall, not later than the due
date for such redem
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