DATED 8 September 2009
TRILLIANT EXPLORATION CORP (1)
and
WELLGATE INTERNATIONAL LIMITED
(2)
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AGREEMENT
for the sale and purchase of shares in
BOZEL SA
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GSC Solicitors LLP
31-32 Ely Place
London EC1N 6TD
Tel: 020 7822 2222
Ref: JHB KJ
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THIS AGREEMENT
is dated 8 September 2009
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BETWEEN:
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(1)
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TRILLIANT EXPLORATION
CORP a company formed and
existing under the laws of Nevada USA whose principal office is at
545 Eighth Avenue Suite 401 New York New York 10018, United States
of America (the “Purchaser”); and
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(2)
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WELLGATE INTERNATIONAL
LIMITED a Company
registered under the laws of the British Virgin Islands whose
registered office is at PO Box 3136 24 De Castro Street Wickhams
Cay 1 Road Town Tortola British Virgin Islands (the
“Seller”).
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NOW IT IS AGREED
as follows:
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1.
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DEFINITIONS
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In this Agreement:
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1.1
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“Agreement” means this Agreement;
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1.2
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“Bozel Disclosure
Letter” means the
Disclosure Letter to be delivered by the Sellers to the Purchaser
at Completion making disclosures against the Warranties in the
agreed form;
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1.3
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“Bozel
Warrants” means the
warrants to subscribe for shares created pursuant to various
Warrant Instruments dated 31 January 2008 and 1 July 2008, said
warrants issued to Trafalgar Specialised Investments Fund,
Crastvell Trading Limited and others entitling Warrant Holders to
subscribe for shares in Bozel, and which warrants, if fully
exercised, would give Warrant Holders approximately 45% of the Sale
Shares on a fully diluted basis;
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1.4
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“Breach” means any instance of the Warranty being untrue,
incorrect or misleading in any respect;
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1.5
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“Certificates of Good
Standing and Incumbency” means certificates of Good Standing and
Incumbency, or the equivalents of such certificates, for the
Company and the Subsidiaries and the Purchaser and its subsidiaries
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1.6
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“Company” means, Bozel SA, a company organized under the
laws of Luxembourg;
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1.7
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“Completion” means completion of the sale and purchase of the
Sale Shares;
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1.8
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“ Completion
Date” means 16 September 2009;
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1.9
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“Confidential
Information” means
all information not at present in the public domain used in or
otherwise relating to the business, customers or financial or other
affairs of the relevant company including, without limitation,
information relating to:
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(a)
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the marketing of any products or
services including, without limitation, customer names and lists
and any other details of customers, sales targets, sales
statistics, market share statistics, prices, pricing methods,
discount practices, market research reports and surveys, and
advertising or other promotional materials; and
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(b)
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future projects, business
development or planning, commercial relationships and
negotiations;
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1.10
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“
Consideration” means the consideration for the sale
and purchase of the Sale Shares amounting to Eighty Million Dollars
($80,000,000) to be settled by the issue of the Consideration
Shares to be delivered to the Seller pursuant to the provisions of
clauses 5.1 below;
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1.11
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“Consideration
Shares” means
Common Shares in the capital of the Purchaser to the value of
Eighty Million Dollars ($80,000,000) to be delivered to the Seller
and Warrant Holders who have accepted the Offer to Warrant Holders
and exercised their respective conversion rights or such lesser
amount having regard to the provisions of Clauses 3.4 – 3.6
below based on the average volume weighted price of the
Company’s shares during the 20 trading day period prior to
Completion;
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1.12
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“CVRD”
means Compagnia de Vale do Rio
Dolce, a company registered in Brazil;
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1.13
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“CVRD
Indemnity” means
the Indemnity given by CVRD (known as Vale under the terms of the
Original Acquisition Agreement);
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1.14
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“Debenture” means the Debenture in the agreed form to be
executed by the Company to secure repayment of the Loan and all
interest and other charges thereunder;
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1.15
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“Dollar or
$” means the lawful
currency of the United States of America;
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1.16
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“Encumbrance”
means any mortgage, charge, pledge,
lien, option, restriction, right of first refusal, right of
pre-emption, third party right or interest, any other encumbrance
or security interest of any kind, and any other type of
preferential arrangement (including, without limitation, title
transfer and retention arrangements) having a similar
effect;
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1.17
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“Loan”
means the loan in the sum of $20
million to be advanced by the Purchaser to the Company on or before
Completion pursuant to the provisions of Clauses 5.3 – 5.6
below;
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1.18
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“Offer to Warrant
Holders” means the
offer to Warrant Holders to purchase all and any shares in the
Company that may be issued and allotted as a result of the Warrant
Holders converting their respective Bozel Warrants into shares in
the capital of the Company, said offer to be made by the Purchaser
in accordance with the terms of the Bozel Warrants and pursuant to
the provisions of Clause 3.4 below; which offer shall remain in
effect for 30 days from the date of the signature of this
Agreement;
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1.19
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“Offer
Letter” means the
Offer letter dated 30 August 2009 from the Purchaser to the Seller
outlining the sale and purchase envisaged under the terms of this
Agreement;
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1.20
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“Original Acquisition
Agreement” means
the acquisition agreement between the Company and CVRD relating to
the sale and purchase of Bozel Mineracao SA dated 12 February
2008;
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1.21
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“Parties” means the parties to this Agreement and
“Party” means each such party severally;
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1.22
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“ Purchaser’s
Solicitors” means GSC Solicitors, 31-32 Ely Place,
London, EC1N 6TD;
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1.23
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“ Sale Shares”
means the shares in issue in the capital of the Company owned by
the Seller comprising 100% of the issued share capital of the
Company or as the case may be the enlarged issued and allotted
share capital of the Company that may be issued and allotted as a
result of conversion of the Bozel Warrants following the issue of
the Offer to Warrant Holders;
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1.24
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“Secured
Indebtedness” means
all sums due and payable by the Company to Trafalgar Capital
Specialised Investment Fund and Crastvell Trading
Limited;
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1.25
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“Subsidiaries”
means Bozel Mineracao SA, Bozel
Europe SAS and Bozel LLC which are each 100% owned by the
Company;
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1.26
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“Trilliant Disclosure
Letter” means the
disclosure Letter to be delivered by the Purchaser to the Seller at
Completion making disclosures against the Warranties in the agreed
form;
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1.27
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“Warrant
Holders” means
holders of the Bozel Warrants;
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1.28
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“Warranties” means the mutual warranties, representations and
undertakings set out in Schedule 1 below;
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2.
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INTERPRETATION
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In this Agreement:
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2.1
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words importing the singular
shall include the plural and vice versa ;
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2.1.1
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words importing any gender shall
include all other genders;
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2.1.2
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words importing the whole shall
be treated as including reference to any part of the
whole;
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2.1.3
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reference to a Recital or Clause
is to the relevant recital or clause of this Agreement;
and
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2.1.4
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reference to this Agreement or to
any other document is a reference to this Agreement or to that
other document as modified, amended, varied, supplemented,
assigned, novated or replaced from time to time;
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2.2
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Headings used in this Agreement
shall not affect its construction or interpretation;
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2.3
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Words and phrases defined in any
part of this Agreement bear the same meanings throughout this
Agreement; and
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2.4
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Except as specifically stated in
this Agreement any action required to be performed by a party to
this Agreement which is required to be performed on a day which is
not a business day shall be performed by the close of business on
the immediately following business day.
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3.
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SALE AND
PURCHASE
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3.1
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The Seller shall sell, as
beneficial owner, with full title guarantee and the Purchaser shall
purchase the Sale Shares free from all Encumbrances, including
without limitation any claims, charges, liens, equities or other
encumbrances, and together with all rights attached thereto
including the rights to receive any dividend declared but unpaid
with effect from Completion.
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3.2
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The Seller hereby waives all
pre-emption rights which it has in relation to the Sale Shares
pursuant to the Articles of Association of the Company or otherwise
and in relation to the sale of the Sale Shares to the
Purchaser.
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3.3
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The Seller covenants, save to the
extent that Warrant Holders may have rights in respect of the Sale
Shares, that the full legal and beneficial interest in the Sale
Shares will be transferred to the Purchaser at Completion on the
terms set out in this Agreement.
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3.4
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The Purchaser shall make the
Offer to Warrant Holders immediately following signing and exchange
of this Agreement offering to purchase all of the Sale Shares,
assuming full conversion of Bozel Warrants, for the
Consideration.
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3.5
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In the event any of the Warrant
Holders elect not to participate in the proposed sale and purchase
of the Sale Shares or take no action to respond to the Offer to
Warrant holders as envisaged under the terms of this Agreement the
Consideration and the number of Consideration Shares shall be
adjusted accordingly on a pro rata basis.
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3.6
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For the avoidance of doubt the
Warrant Holders not participating in the sale and purchase
following expiry of the Offer to Warrant Holders shall no longer
have any right to participate in the Sale and purchase envisaged
under the terms of this Agreement.
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3.7
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The Purchaser covenants with the
Seller not to issue and allot any new shares in the capital of the
Purchaser between signing, exchange and Completion of this
Agreement without first securing the written approval of any
proposed allotee to the transaction contemplated by this Agreement
including the appointment of Michel Marengere as Chairman and Chief
Executive Officer of the Purchaser.
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4.
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CONDITIONS
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4.1
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This Agreement is conditional
upon: the Parties carrying out mutual legal, financial, geological
and engineering due diligence into the affairs and business carried
on by the Company and the Subsidiaries and the Purchaser and its
subsidiaries (as the case may be); each party securing all relevant
shareholder, regulatory and other approvals to enable the
transactions contemplated by this Agreement to proceed; and the
satisfaction of all requirements and delivery of all funds and
documents pursuant to Section 6 of this Agreement.
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4.2
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Between execution of this
Agreement and exchange and Completion of the Agreement the Parties
and their advisors shall carry out mutual due diligence and in the
event any material issue arises concerning due diligence or the
ability of either party to perform pursuant to Section 6 herein,
either Party acting in good faith may on notice in writing
terminate this Agreement in which case neither Party shall have any
further obligation to the other.
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4.3
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The Offer to Warrant Holders and
Completion of this Agreement is conditional upon the Purchaser
purchasing not less than 66% of the issued capital of the Company
after exercise of the Bozel Warrants on a fully diluted
basis.
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5.
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CONSIDERATION AND
LOAN
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5.1
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The Consideration payable to the
Seller and the Warrant Holders who convert their respective Bozel
Warrants into shares in the capital of the Company for the Sale
Shares shall, subject to any adjustment pursuant to the provisions
of clauses 3.4 – 3.6 above, amount to Eighty Million Dollars
($80,000,000) payable by the issue and allotment of the
Consideration Shares..
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5.2
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At Completion the Purchaser shall
advance the Loan to the Company.
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5.3
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The Loan shall subsist for a term
of one year and shall carry an interest coupon, at the rate of not
to exceed 14% per annum. In addition, the Loan may contain other
terms and conditions consistent with market terms generally
available for a loan of this type.
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5.4
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As security for the Loan the
Company shall execute the Debenture on drawdown of the
Loan.
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5.5
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The Loan shall be applied in
paying the Secured Indebtedness and to provide working capital for
the Company.
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6.
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COMPLETION
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6.1
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Completion shall take place at
the offices of the Purchaser’s Solicitors on the Completion
Date, or at such other location as mutually agreed upon by the
Parties.
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6.2
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At Completion the Seller shall
deliver to the Purchaser:
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6.2.1
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share certificates for the Sale
Shares together with Stock Transfer Forms duly signed in favour of
the Purchaser;
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6.2.2
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the Certificates of Incorporation
of the Company and the Company’s Statutory Books Minute
Books, books of account and other customary records and papers of
the Company and the Subsidiaries;
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6.2.3
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a copy of the Memorandum and
Articles of Association of the Company;
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6.2.4
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all statutory papers for the
Subsidiaries together with share certificates in the name of the
Company;
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6.2.5
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a Certificates of Good Standing
and Incumbency; and
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6.2.6
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a capitalization table showing
the capital structure of the Company immediately preceding
Completion on a fully diluted basis.
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6.3
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At Completion the Seller shall
procure that the Directors of the Company shall convene and hold a
meeting of the Board of Directors of the Company at which the
Directors shall:
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6.3.1
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in the case of the Company, vote
in favour of the registration of the Purchaser as member of the
Company in respect of the Sale Shares;
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6.3.2
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appoint William Lieberman as
director of the Company with immediate effect and approve the
resignations of such persons as directors and secretary as may be
required by the Purchaser provided however that Michel Marengere
shall remain a Director, Chairman and CEO of the Company and the
Subsidiaries, and as Chairman and Chief Executive Officer of the
Purchaser on mutually agreed terms;
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6.3.3
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approve the Loan and the
execution of the Debenture and any other letters or deeds of
priority with other secured lenders to the Company; and
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6.3.4
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Approve th
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