AMENDED AND RESTATED SHARE
PURCHASE AGREEMENT
THIS AGREEMENT is made effective
as of the 9th day of September, 2008 (the “Effective
Date”).
BETWEEN:
PANTERA PETROLEUM
INC. , a Nevada
corporation, of 111 Congress Avenue, Suite 400, Austin, Texas, USA
78701
(“ Pubco
”)
AND:
ARTEMIS ENERGY PLC (formerly
Pantera Oil and Gas PLC) , a company registered in England, of 15 Poland
Street, London, England, W1F 8QE
(“ Artemis
”)
AND:
AURORA PETROLEOS SA
, a company registered in Paraguay,
of 1430 Charles de Gaulle, Villa Mora 1885 Asuncion,
Paraguay
(“ Aurora
”)
AND:
BOREAL PETROLEOS SA
, a company registered in Paraguay,
of 390 R1 4 Curupayty, Mariscal Estigaribia 1864 Asuncion,
Paraguay
(“ Boreal
”)
WHEREAS:
A.
On November 21, 2007, as amended March 17, 2008 and July 30, 2008,
Pubco, Artemis, Aurora and Boreal entered into a Share Purchase
Agreement (the “ Purchase Agreement ”), whereby
Pubco agreed to issue 4,000,000 common shares of Pubco to Artemis
and to pay $25,000 to each of Aurora and Boreal, for an aggregate
payment of $50,000, as consideration for the right to purchase up
to 85% of the outstanding shares of each of Aurora and
Boreal;
B.
The Purchase Agreement provides for, among other things, the
payment by Pubco to each of Aurora and Boreal of certain amounts on
or before specified dates in order for Pubco to acquire shares of
each Aurora and Boreal; and
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C.
Pubco, Artemis, Aurora and Boreal have agreed to amend and restate
the terms of the Purchase Agreement on the terms and conditions of
this Agreement.
THEREFORE, in consideration of
the covenants and agreements herein contained and other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto covenant and agree as
follows:
1.
DEFINITIONS AND INTERPRETATION
1.1 Restatement
This Agreement hereby amends and
restates the Purchase Agreement such that the Purchase Agreement is
replaced in its entirety by this Agreement.
1.2 Definitions
The following terms have the
following meanings, unless context indicates otherwise:
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(a)
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“ Agreement ”
means this agreement and any amendment or variation hereto made in
accordance with the provisions hereof, including all schedules,
appendices and any instruments or agreement supplementary or
ancillary hereto;
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(b)
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“ Business Day
” means a day, other than a Saturday or Sunday, on which
banking institutions are open for business in New York, New York,
United States of America;
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(c)
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“Escrow
Agent” means Clark
Wilson LLP;
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(d)
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“ Escrow Agreement
” means the Escrow Agreement dated November 21, 2007 among
Pubco, Artemis and Clark Wilson LLP, as Escrow Agent;
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(e)
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“Pubco
Warrants” means
common share purchase warrants to purchase an aggregate of
2,600,000 common shares of Pubco at an exercise price of $0.27 per
share, for a period of 5 years, and in accordance with Section 6.1B
of this Agreement, in the form of Schedule 7 attached
hereto;
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(f)
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“ Regulation S
” means Regulation S under the Securities Act;
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(g)
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“ SEC ” means
the Securities and Exchange Commission;
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(h)
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“ Securities Act
” means the United States Securities Act of 1933, as amended;
and
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(i)
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“ U.S. Person
” has the meaning set forth in Regulation S.
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1.3 Interpretation
In this Agreement, unless
otherwise expressly stated or the context otherwise
requires:
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(a)
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the division of this Agreement
into articles and sections and the further division thereof and the
insertion of headings are for convenience of reference only and
shall not affect the construction or interpretation of this
Agreement. Unless otherwise indicated, any reference in this
Agreement to an article, section, or schedule refers to the
specified article or section of or schedule to this
Agreement;
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(b)
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the terms “this
Agreement”, “hereof”, “herein”,
“hereunder” and similar expressions refer to this
Agreement and not to any particular section or other portion hereof
and include any agreement or instrument supplementary or ancillary
hereto and, unless otherwise indicated, a reference herein to a
section is to the appropriate section of this Agreement;
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(c)
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words importing the singular
number include the plural and vice versa, words importing the use
of any gender include all genders, and words importing persons
include firms and corporations and vice versa;
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(d)
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the word “including”
means “including, without limiting the generality of the
foregoing”; and
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(e)
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a reference to a statute is to
that statute as now enacted or as the statute may from time to time
be amended, re-enacted or replaced and includes any regulation,
rule or policy made thereunder.
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1.4
Schedules
The following schedules are
attached to and form part of the Agreement:
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Schedule
1
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Certificate of
Non U.S. Shareholder
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Schedule
2
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Wiring
Instructions for Aurora and Boreal
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Schedule
3
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Aurora Leases,
Subleases, Claims, Capital Expenditures,
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Taxes of other
Property Interests
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Schedule
4
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Boreal Leases,
Subleases, Claims, Capital Expenditures,
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Taxes of other
Property Interests
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Schedule
5
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Aurora Material
Contracts
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Schedule
6
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Boreal Material
Contracts
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Schedule
7
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Form of Pubco
Warrant
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1.5 Currency
Unless otherwise indicated,
references to “$” or dollars in this Agreement are to
United States dollars.
2.
PAYMENTS BY PUBCO
2.1 Payments
by Pubco to Artemis, Aurora and Boreal
Each of Pubco, Artemis, Aurora
and Boreal acknowledge and agree that:
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(a)
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on November 21, 2007, Pubco
issued 4,000,000 common shares of Pubco to Artemis, subject to the
terms and conditions of the Escrow Agreement;
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(b)
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on or about July 26, 2007, Pubco
paid $25,000 to each of Aurora and Boreal, for an aggregate payment
of $50,000;
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(c)
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on or about November 30, 2007,
Pubco paid $75,000 to each of Aurora and Boreal, for an aggregate
payment of $150,000; and
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(d)
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on or about July 31, 2008, Pubco
paid $225,000 to each of Aurora and Boreal, for an aggregate
payment of $450,000.
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3.
TRANSACTIONS BY ARTEMIS
3.1
Transactions by Artemis
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(a)
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Artemis acknowledges and agrees
that Pubco issued 4,000,000 common shares of Pubco to Artemis
pursuant to an exemption from the prospectus and registration
requirements of the Securities Act, that the share certificates
representing the 4,000,000 common shares of Pubco are endorsed with
a restrictive legend, and that such shares may not be sold,
transferred or otherwise disposed, except pursuant to an effective
registration statement under the Securities Act, or pursuant to an
exemption from the registration requirements of the Securities Act
and in each case in compliance with all applicable securities
laws;
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(b)
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Artemis acknowledges and agrees
that of the 4,000,000 common shares of Pubco issued to Artemis,
1,400,000 common shares of Pubco have been released from, and
2,600,000 common shares of Pubco are held in, escrow pursuant to
the Escrow Agreement;
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(c)
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Artemis agrees to cancel the
2,600,000 common shares of Pubco held in escrow pursuant to the
Escrow Agreement and shall provide Pubco and the Escrow Agent with
all required documents and authorizations necessary to effect the
cancellation of such shares;
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(d)
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Artemis represents and warrants
that it owns 99.9% of the issued and outstanding shares of each of
Aurora and Boreal free and clear of any and all
encumbrances;
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(e)
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Artemis agrees to issue to Pubco
warrants, or options, or such other instrument in accordance with
applicable securities laws to enable Pubco, on terms and conditions
to be mutually agreed upon by each of Pubco and Artemis, to
purchase:
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(i)
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27% of the issued and outstanding
shares of Aurora for amounts previously advanced by Pubco to Aurora
(the “ First Aurora Warrant” );
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(ii)
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30% of the issued and outstanding
shares of Boreal for amounts previously advanced by Pubco to Boreal
(the “ First Boreal Warrant ”);
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(iii)
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additional shares of Aurora in
accordance with Section 6 hereof (the “ Additional Aurora
Warrants ”); and
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(iv)
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additional shares of Boreal in
accordance with Section 6 hereof (the “ Additional Boreal
Warrants ”); and
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(f)
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except as contemplated by this
Agreement, Artemis agrees not to:
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(i)
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effect any transfer, sale,
assignment, exchange, gift, donation or other disposition of the
shares of each of Aurora and Boreal owned by Artemis where
possession, legal title, beneficial ownership or the economic risk
or return associated with such shares passes directly or indirectly
from one person to another or to the same person in a different
legal capacity, whether or not for value, whether or not voluntary
and however occurring (collectively referred to as a “
Transfer ”);
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(ii)
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enter into any agreement,
undertaking or commitment to effect a Transfer; or
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(iii)
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grant:
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A.
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any mortgage, charge, pledge,
hypothecation, security interest, assignment by way of security,
encumbrance, lien (statutory or otherwise), hire purchase
agreement, conditional sale agreement, deposit arrangement, title
retention agreement or arrangement;
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B.
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any trust arrangement;
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C.
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any arrangement which creates a
right of set-off out of the ordinary course of business;
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D.
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any option, warrant, right or
privilege capable of becoming a Transfer; or
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E.
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any agreement to grant any such
rights or interests,
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in respect of any of the shares
of each of Aurora and Boreal owned by Artemis without the prior
written consent of Pubco.
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4.
ACKNOWLEDGEMENT AND REPAYMENT OF LOAN AMOUNTS
4.1
Aurora Loan Amounts
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(a)
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Aurora acknowledges and agrees
that each of Pubco and Artemis have lent to Aurora and Aurora is
indebted to each of Pubco and Artemis in the following
amounts:
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(i)
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Aurora is indebted to Pubco, as
of the date of this Agreement, in the amount of $335,000;
and
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(ii)
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Aurora is indebted to Artemis, as
of the date of this Agreement, in the amount of
$221,126;
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(b)
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Aurora agrees to issue a five
year note bearing 5% simple interest, in a form to be mutually
agreed upon by Pubco and Aurora, to Pubco in the amount of $335,000
representing all previous payments made by Pubco to Aurora up to
the date of this Agreement;
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(c)
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Aurora further agrees to issue a
five year note bearing 5% simple interest, in a form to be mutually
agreed upon by Pubco and Aurora, upon and as a condition to any
payment by Pubco to Aurora, to Pubco in an amount equal to any
payment made by Pubco to Aurora pursuant to this Agreement;
and
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(d)
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If at any time after the date of
this Agreement there occurs:
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(i)
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a sale, consolidation,
amalgamation or merger of Aurora with or into any other body
corporate, or plan of arrangement involving Aurora; or
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(ii)
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the transfer of the undertaking
or assets of Aurora as an entirety or substantially as an entirety
to another corporation or entity,
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which
results in Aurora receiving cash proceeds, then Aurora agrees to
repay Pubco and Artemis for all outstanding amounts owing at such
time as follows:
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A.
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Aurora will repay each of Pubco
and Artemis equal payments until Pubco and Artemis each receive
$221,126, plus accumulated interest; and
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B.
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upon repayment of the $221,126
plus accumulated interest to each of Pubco and Artemis, Aurora will
repay to Pubco any amounts that Pubco has advanced to Aurora
pursuant to this Agreement.
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4.2
Boreal Loan Amounts
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(a)
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Boreal acknowledges and agrees
that each of Pubco and Artemis have lent to Boreal and Boreal is
indebted to each of Pubco and Artemis in the following
amounts:
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(i)
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Boreal is indebted to Pubco, as
of the date of this Agreement, in the amount of $335,000;
and
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(ii)
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Boreal is indebted to Artemis, as
of the date of this Agreement, in the amount of
$193,041;
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(b)
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Boreal agrees to issue a five
year note bearing 5% simple interest, in a form to be mutually
agreed upon by Pubco and Boreal, to Pubco in the amount of $335,000
representing all previous payments made by Pubco to Boreal up to
the date of this Agreement;
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(c)
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Boreal further agrees to issue a
five year note bearing 5% simple interest, in a form to be mutually
agreed upon by Pubco and Boreal, upon and as a condition to any
payment by Pubco to Boreal, to Pubco in an amount equal to any
payment made by Pubco to Boreal pursuant to this Agreement;
and
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(d)
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If at any time after the date of
this Agreement there occurs:
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(i)
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a sale, consolidation,
amalgamation or merger of Boreal with or into any other body
corporate, or plan of arrangement involving Boreal; or
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(ii)
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the transfer of the undertaking
or assets of Boreal as an entirety or substantially as an entirety
to another corporation or entity,
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which
results in Boreal receiving cash proceeds, then Boreal agrees to
repay Pubco and Artemis for all outstanding amounts owing at such
time as follows:
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A.
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Boreal will repay each of Pubco
and Artemis equal payments until Pubco and Artemis each receive
$193,041, plus accumulated interest; and
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B.
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upon repayment of the $193,041
plus accumulated interest to each of Pubco and Artemis, Boreal will
repay to Pubco any amounts that Pubco has advanced to Boreal
pursuant to this Agreement.
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5.
OFFER, RIGHT TO PURCHASE AND ISSUANCE OF SHARES
5.1
Offer and Right to Purchase
Subject to the terms and
conditions of this Agreement, Artemis hereby covenants and agrees
to issue to Pubco the First Aurora Warrants, the First Boreal
Warrants, the Additional Aurora Warrants and the Additional Boreal
Warrants (collectively, the “ Warrants
”).
5.2 Consideration
As consideration for the right to
receive the Warrants from Artemis, Pubco has agreed to issue the
Pubco Warrants, in the form attached hereto as Schedule 7. Artemis
acknowledges and agrees that the Pubco Warrants will be issued,
pursuant to an exemption from the prospectus and registration
requirements of the Securities Act. As required by applicable
securities law, Artemis agrees to abide by all applicable resale
restrictions and hold periods imposed by all applicable securities
legislation. All certificates representing the Pubco Warrants
issued to Artemis will be endorsed with the following legend
pursuant to the Securities Act in order to reflect the fact
that
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the Pubco
Warrants will be issued to Artemis pursuant to an exemption from
the registration requirements of the Securities Act:
“THE SECURITIES REPRESENTED
HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO
IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“1933 ACT”).
NONE OF THE SECURITIES
REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY
U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE
OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS
DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION,
HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
UNLESS IN COMPLIANCE WITH THE 1933 ACT. “UNITED STATES”
AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER
THE 1933 ACT.”
5.3
Documents Required from Pantera
In connection with and as a
condition to the issuance of the Pubco Warrants, Artemis must
complete and provide Pubco a Certificate of Non-U.S. Shareholder
(the “ Certificate ”), a copy of which is set
out in Schedule 1.
5.4
Restricted Securities
Artemis acknowledges that the
Pubco Warrants will have such hold periods as are required under
applicable securities laws and as a result may not be sold,
transferred or otherwise disposed, except pursuant to an effective
registration statement under the Securities Act, or pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and in each case
only in accordance with all applicable securities laws.
6.
RIGHT TO
PURCHASE
6.1
Right to Purchase
Artemis shall issue to Pubco the
Additional Aurora Warrants and the Additional Boreal Warrants, as
applicable, as follows:
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(a)
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Artemis shall issue to
Pubco:
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(i)
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Additional Aurora Warrants, which
shall entitle Pubco to purchase 38% of the issued and outstanding
shares of Aurora upon Pubco making a payment of $500,000 to Aurora
on or before April 30, 2009 (“ Aurora Investment
Three” ), and
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(ii)
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Additional Boreal Warrants, which
shall entitle Pubco to purchase 35% of the issued and outstanding
shares of Boreal upon Pubco making a payment of $500,000 to Boreal,
on or before April 30, 2009 (“ Boreal Investment
Three” ); and
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(b)
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Subject to the completion
of:
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(i)
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Aurora Investment Three, Artemis
shall issue to Pubco Additional Aurora Warrants, which shall
entitle Pubco to purchase an additional 20% of the issued and
outstanding shares of Aurora upon Pubco making a payment of
$1,500,000 to Aurora, on or before January 10, 2010 (“
Aurora Investment Four” ), and
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(ii)
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Boreal Investment Three, Artemis
shall issue to Pubco Additional Boreal Warrants, which shall
entitle Pubco to purchase an additional 20% of the issued and
outstanding shares of Boreal upon Pubco making a payment of
$1,500,000 to Boreal, on or before January 10, 2010 (“
Boreal Investment Four” ).
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6.1A Adjustment to
Purchase
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(a)
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Subject to Section 3.1, in the
event that Pubco makes less than the stated investment amount to
complete any of Aurora Investment Three or Aurora Investment Four,
the percentage of the issued and outstanding shares of Aurora to be
purchased by the Additional Aurora Warrants will be adjusted as
follows:
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A =
(B/C) x D
where:
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A
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the percentage of the issued and
outstanding shares of Aurora to be purchased by the Additional
Aurora Warrants;
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B
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amount of payment made by Pubco
to Aurora;
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C
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stated investment amount as
specified in each of Sections 6.1(a)(i) and (b)(i), as applicable;
and
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D
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the percentage of the issued and
outstanding shares of Aurora to be purchased by the Additional
Aurora Warrants that Pubco would be entitled to purchase if Pubco
paid the entire investment amount as specified in each of Sections
6.1(a)(i) and (b)(i), as applicable.
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(b)
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Subject to Section 6.1, in the
event that Pubco makes less than the stated investment amount to
complete any of Boreal Investment Three or Boreal Investment Four,
the percentage of the issued and outstanding shares of Boreal to be
purchased by the Additional Boreal Warrants will be adjusted as
follows:
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A =
(B/C) x D
where:
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A
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the percentage of the issued and
outstanding shares of Boreal to be purchased by the Additional
Boreal Warrants;
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B
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amount of payment made by Pubco
to Boreal;
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C
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stated investment amount as
specified in each of Sections 6.1(a)(ii) and (b)(ii), as
applicable; and
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D
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the percentage of the issued and
outstanding shares of Boreal to be purchased by the Additional
Boreal Warrants; that Pubco would be entitled to receive had Pubco
paid the entire investment amount as specified in each of Sections
6.1(a)(ii) and (b)(ii), as applicable.
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6.1B Warrants
Issued to Artemis
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(a)
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Upon completion of Aurora
Investment Three and Boreal Investment Three, Pubco agrees to issue
to Artemis Pubco Warrants to purchase 1,200,000 common shares of
Pubco, which Pubco Warrants will be exercisable for a period of 5
years at a price of $0.27 per share; and
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(b)
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Upon completion of Aurora
Investment Four and Boreal Investment Four, Pubco agrees to issue
to Artemis Pubco Warrants to purchase 1,400,000 common shares of
Pubco, which Pubco Warrants will be exercisable for a period of 5
years at a price of $0.27 per share.
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7.
NO ISSUANCE OF SECURITIES BY AURORA OR BOREAL
7.1 No
Issuance of Securities by Aurora and Boreal
Each of Artemis, Aurora and
Boreal agree that, until this Agreement is terminated, neither
Aurora nor Boreal will issue, sell, offer to issue or sell, or
enter into any agreements to issue or sell any of their respective
capital stock (including any warrants, options or other rights to
purchase shares of Aurora or Boreal, as applicable).
8.
USE OF FUNDS BY AURORA AND BOREAL
Each of Artemis, Aurora and
Boreal covenant and agree that Aurora and Boreal will use any and
all funds paid by Pubco to each of Aurora and Boreal, respectively,
previously or in connection with this Agreement exclusively towards
the exploration and development of the concessions
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held by
each of Aurora and Boreal as set forth on Schedule 5 and Schedule
6, respectively, and that Aurora and Boreal will not use or
otherwise transfer such funds for any other purpose, including the
payment of existing debt, management fees, intercompany loans,
dividends or any other distributions to the shareholders of each of
Aurora or Boreal, respectively.
In addition, each of Pubco,
Artemis, Aurora and Boreal covenant and agree that:
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(a)
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Aurora will:
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(i)
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consult and work together with
Pubco to plan and execute any exploration and development
activities conducted by Aurora,
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(ii)
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provide Pubco with annualized
budgets, which annualized budgets will provide cost projections on
a monthly basis, and
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(iii)
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not incur costs in excess of
$5,000 for any transaction, or series of transactions, to any
particular party, or parties, acting jointly or in concert with one
another, without the prior written consent of either Pubco or
Artemis; and
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(b)
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Boreal will:
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(i)
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consult and work together with
Pubco to plan and execute any exploration and development
activities conducted by Boreal;
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(ii)
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provide Pubco with annualized
budgets, which annualized budgets will provide cost projections on
a monthly basis, and
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(iii)
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not incur costs in excess of
$5,000 for any transaction, or series of transactions, to any
particular party, or parties, acting jointly or in concert with one
another, without the prior written consent of either Pubco or
Artemis.
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9.
reserved.
10.
REPRESENTATIONS AND WARRANTIES OF ARTEMIS, AURORA AND
BOREAL
10.1
Representations and Warranties of Artemis
Artemis represents and warrants
to Pubco, and acknowledges that Pubco is relying upon such
representations and warranties, in connection with the execution,
delivery and performance of this Agreement, notwithstanding any
investigation made by or on behalf of Pubco, as follows:
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(a)
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Artemis is a corporation duly
organized, validly existing and in good standing under the laws of
England;
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(b)
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Artemis has all requisite
corporate power and authority to execute and deliver this Agreement
and any other document(s) contemplated by this Agreement
(collectively, the “ Artemis Documents ”) to be
signed by Artemis and to perform its obligations hereunder and to
consummate the transactions contemplated hereby. The execution and
delivery of each of the Artemis Documents by Artemis and the
consummation of the transactions contemplated hereby have been duly
authorized by Artemis’ board of directors. No other corporate
or shareholder proceedings on the part of Artemis is necessary to
authorize such documents or to consummate the transactions
contemplated hereby. This Agreement has been, and the other Artemis
Documents when executed and delivered by Artemis as contemplated by
this Agreement will be, duly executed and delivered by Artemis and
this Agreement is, and the other Artemis Documents when executed
and delivered by Artemis as contemplated hereby will be, valid and
binding obligations of Artemis enforceable in accordance with their
respective terms except:
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(i)
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as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws
of general application affecting enforcement of creditors’
rights generally,
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(ii)
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as limited by laws relating to
the availability of specific performance, injunctive relief, or
other equitable remedies, and
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(iii)
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as limited by public
policy;
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(c)
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neither the execution, delivery
and performance of this Agreement, nor the consummation of the
transactions contemplated hereby, will:
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(i)
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violate any agreement, written or
oral, to which Artemis or any of its subsidiaries may be a party or
by which Artemis or any of its subsidiaries may be
bound,
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(ii)
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violate any provision of the
Constitution, Articles of Association or any other constating
documents of Artemis, any of its subsidiaries or any applicable
laws, or
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(iii)
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violate any order, writ,
injunction, decree, statute, rule, or regulation of any court or
governmental or regulatory authority applicable to Artemis, any of
its subsidiaries or any of their respective material property or
assets;
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(d)
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Artemis is the registered and
beneficial owner, free and clear of all liens, charges and
encumbrances of any kind whatsoever, of 99.9% of the issued and
outstanding securities of each of Aurora and Boreal;
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(e)
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there are no written instruments,
buy-sell agreements, registration rights or agreements, voting
agreements or other agreements by and between or among Artemis or
any other person, imposing any restrictions upon the
transfer,
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prohibiting the transfer of or
otherwise pertaining to the shares of each of Aurora and
Boreal;
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(f)
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Artemis has the power and
capacity and good and sufficient right and authority to transfer
the legal and beneficial title and ownership of the shares of each
of Aurora and Boreal to the Purchaser; and
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(g)
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no person, firm, corporation or
entity of any kind has or will have any agreement, right or option
of any kind whatsoever to acquire any of the shares of each of
Aurora and Boreal.
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10.2
Representations and Warranties of Artemis and Aurora
Artemis and Aurora, jointly and
severally, represent and warrant to Pubco, and acknowledge that
Pubco is relying upon such representations and warranties, in
connection with the execution, delivery and performance of this
Agreement, notwithstanding any investigation made by or on behalf
of Pubco, as follows:
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(a)
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Aurora is a corporation duly
organized, validly existing and in good standing under the laws of
Paraguay and has the requisite corporate power and authority to
own, lease and to carry on its business as now being conducted.
Aurora is duly qualified to do business and is in good standing as
a corporation in each of the jurisdictions in which Aurora owns
property, leases property, does business, or is otherwise required
to do so, where the failure to be so qualified would have a
material adverse effect on the business of Aurora taken as a
whole;
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(b)
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Aurora has all requisite
corporate power and authority to execute and deliver this Agreement
and any other document contemplated by this Agreement
(collectively, the “ Aurora Documents ”) to be
signed by Aurora and to perform its obligations hereunder and to
consummate the transactions contemplated hereby. The execution and
delivery of each of the Aurora Documents by Aurora and the
consummation of the transactions contemplated hereby have been duly
authorized by Aurora’s board of directors. No other corporate
or shareholder proceedings on the part of Aurora is necessary to
authorize such documents or to consummate the transactions
contemplated hereby. This Agreement has been, and the other Aurora
Documents when executed and delivered by Aurora as contemplated by
this Agreement will be, duly executed and delivered by Aurora and
this Agreement is, and the other Aurora Documents when executed and
delivered by Aurora as contemplated hereby will be, valid and
binding obligations of Aurora enforceable in accordance with their
respective terms except:
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(i)
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as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other laws
of general application affecting enforcement of creditors’
rights generally,
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(ii)
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as limited by laws relating to
the availability of specific performance, injunctive relief, or
other equitable remedies, and
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(iii)
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as limited by public
policy;
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(c)
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the entire authorized capital
stock and other equity securities of Aurora consists of 200,000,000
shares (the “ Aurora Stock ”). As of the date of
this Agreement, there are 25,100,020 shares of Aurora Stock issued
and outstanding. All of the issued and outstanding shares of Aurora
Stock have been duly authorized, are validly issued, were not
issued in violation of any pre-emptive rights and are fully paid
and non-assessable, are not subject to pre-emptive rights and were
issued in full compliance with the laws of Paraguay and its
Constitution and Articles of Association. There are no outstanding
options, warrants, subscriptions, conversion rights, or other
rights, agreements, or commitments obligating Aurora to issue any
additional shares of Aurora Stock, or any other securities
convertible into, exchangeable for, or evidencing the right to
subscribe for or acquire from Aurora any common shares of Aurora
Stock. There are no agreements purporting to restrict the transfer
of the Aurora Stock, no v
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