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AMENDED AND RESTATED SHARE PURCHASE AGREEMENT

Purchase and Sale Agreement

AMENDED AND RESTATED SHARE PURCHASE AGREEMENT | Document Parties: PANTERA PETROLEUM INC. You are currently viewing:
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PANTERA PETROLEUM INC.

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Title: AMENDED AND RESTATED SHARE PURCHASE AGREEMENT
Governing Law: Texas     Date: 9/15/2008

AMENDED AND RESTATED SHARE PURCHASE AGREEMENT, Parties: pantera petroleum inc.
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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:

 

(a)

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;

 

 

 

 

(b)

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;

 

 

 

 

(c)

“Escrow Agent” means Clark Wilson LLP;

 

 

 

 

(d)

Escrow Agreement ” means the Escrow Agreement dated November 21, 2007 among Pubco, Artemis and Clark Wilson LLP, as Escrow Agent;

 

 

 

 

(e)

“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;

 

 

 

 

(f)

Regulation S ” means Regulation S under the Securities Act;

 

 

 

 

(g)

SEC ” means the Securities and Exchange Commission;

 

 

 

 

(h)

Securities Act ” means the United States Securities Act of 1933, as amended; and

 

 

 

 

(i)

U.S. Person ” has the meaning set forth in Regulation S.

1.3         Interpretation

In this Agreement, unless otherwise expressly stated or the context otherwise requires:

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(a)

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;

 

 

 

 

(b)

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;

 

 

 

 

(c)

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;

 

 

 

 

(d)

the word “including” means “including, without limiting the generality of the foregoing”; and

 

 

 

 

(e)

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.

1.4          Schedules

The following schedules are attached to and form part of the Agreement:

 

Schedule 1

Certificate of Non U.S. Shareholder

 

Schedule 2

Wiring Instructions for Aurora and Boreal

 

Schedule 3

Aurora Leases, Subleases, Claims, Capital Expenditures,

 

 

 

Taxes of other Property Interests

 

Schedule 4

Boreal Leases, Subleases, Claims, Capital Expenditures,

 

 

 

Taxes of other Property Interests

 

Schedule 5

Aurora Material Contracts

 

Schedule 6

Boreal Material Contracts

 

Schedule 7

Form of Pubco Warrant

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)

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;

 

 

 

 

(b)

on or about July 26, 2007, Pubco paid $25,000 to each of Aurora and Boreal, for an aggregate payment of $50,000;

 

 

 

 

(c)

on or about November 30, 2007, Pubco paid $75,000 to each of Aurora and Boreal, for an aggregate payment of $150,000; and

 

 

 

 

(d)

on or about July 31, 2008, Pubco paid $225,000 to each of Aurora and Boreal, for an aggregate payment of $450,000.

3.            TRANSACTIONS BY ARTEMIS

3.1          Transactions by Artemis

 

(a)

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;

 

 

 

 

 

(b)

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;

 

 

 

 

 

(c)

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;

 

 

 

 

 

(d)

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;

 

 

 

 

 

(e)

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:

 

 

 

 

 

 

(i)

27% of the issued and outstanding shares of Aurora for amounts previously advanced by Pubco to Aurora (the “ First Aurora Warrant” );

 

 

 

 

 

 

(ii)

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)

additional shares of Aurora in accordance with Section 6 hereof (the “ Additional Aurora Warrants ”); and

 

 

 

 

(iv)

additional shares of Boreal in accordance with Section 6 hereof (the “ Additional Boreal Warrants ”); and

 

 

(f)

except as contemplated by this Agreement, Artemis agrees not to:

 

 

 

 

 

 

 

(i)

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 ”);

 

 

 

 

 

 

 

(ii)

enter into any agreement, undertaking or commitment to effect a Transfer; or

 

 

 

 

 

 

 

(iii)

grant:

 

 

 

 

 

 

 

 

A.

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;

 

 

 

 

 

 

 

 

B.

any trust arrangement;

 

 

 

 

 

 

 

 

C.

any arrangement which creates a right of set-off out of the ordinary course of business;

 

 

 

 

 

 

 

 

D.

any option, warrant, right or privilege capable of becoming a Transfer; or

 

 

 

 

 

 

 

 

E.

any agreement to grant any such rights or interests,

 

 

 

 

 

 

 

 

in respect of any of the shares of each of Aurora and Boreal owned by Artemis without the prior written consent of Pubco.

4.            ACKNOWLEDGEMENT AND REPAYMENT OF LOAN AMOUNTS

4.1          Aurora Loan Amounts

 

(a)

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)

Aurora is indebted to Pubco, as of the date of this Agreement, in the amount of $335,000; and

 

 

 

 

(ii)

Aurora is indebted to Artemis, as of the date of this Agreement, in the amount of $221,126;

 

 

(b)

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;

 

 

 

 

 

(c)

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

 

 

 

 

 

(d)

If at any time after the date of this Agreement there occurs:

 

 

 

 

 

 

(i)

a sale, consolidation, amalgamation or merger of Aurora with or into any other body corporate, or plan of arrangement involving Aurora; or

 

 

 

 

 

 

(ii)

the transfer of the undertaking or assets of Aurora as an entirety or substantially as an entirety to another corporation or entity,

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:

 

A.

Aurora will repay each of Pubco and Artemis equal payments until Pubco and Artemis each receive $221,126, plus accumulated interest; and

 

 

 

 

B.

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.

4.2          Boreal Loan Amounts

 

(a)

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:

 

 

 

 

 

 

(i)

Boreal is indebted to Pubco, as of the date of this Agreement, in the amount of $335,000; and

 

 

 

 

 

 

(ii)

Boreal is indebted to Artemis, as of the date of this Agreement, in the amount of $193,041;

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(b)

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;

 

 

 

 

 

(c)

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

 

 

 

 

 

(d)

If at any time after the date of this Agreement there occurs:

 

 

 

 

 

 

(i)

a sale, consolidation, amalgamation or merger of Boreal with or into any other body corporate, or plan of arrangement involving Boreal; or

 

 

 

 

 

 

(ii)

the transfer of the undertaking or assets of Boreal as an entirety or substantially as an entirety to another corporation or entity,

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:

 

A.

Boreal will repay each of Pubco and Artemis equal payments until Pubco and Artemis each receive $193,041, plus accumulated interest; and

 

 

 

 

B.

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.

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:

 

(a)

Artemis shall issue to Pubco:

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(i)

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

 

 

 

 

(ii)

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

 

 

(b)

Subject to the completion of:

 

 

 

 

 

 

(i)

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

 

 

 

 

 

 

(ii)

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” ).

6.1A      Adjustment to Purchase

 

(a)

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:

A = (B/C) x D

where:

 

A

the percentage of the issued and outstanding shares of Aurora to be purchased by the Additional Aurora Warrants;

 

 

 

 

B

amount of payment made by Pubco to Aurora;

 

 

 

 

C

stated investment amount as specified in each of Sections 6.1(a)(i) and (b)(i), as applicable; and

 

 

 

 

D

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)

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:

A = (B/C) x D

where:

 

A

the percentage of the issued and outstanding shares of Boreal to be purchased by the Additional Boreal Warrants;

 

 

 

 

B

amount of payment made by Pubco to Boreal;

 

 

 

 

C

stated investment amount as specified in each of Sections 6.1(a)(ii) and (b)(ii), as applicable; and

 

 

 

 

D

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.

6.1B      Warrants Issued to Artemis

 

(a)

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

 

 

 

 

(b)

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.

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:

 

(a)

Aurora will:

 

 

 

 

 

 

(i)

consult and work together with Pubco to plan and execute any exploration and development activities conducted by Aurora,

 

 

 

 

 

 

(ii)

provide Pubco with annualized budgets, which annualized budgets will provide cost projections on a monthly basis, and

 

 

 

 

 

 

(iii)

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

 

 

 

 

 

(b)

Boreal will:

 

 

 

 

 

 

(i)

consult and work together with Pubco to plan and execute any exploration and development activities conducted by Boreal;

 

 

 

 

 

 

(ii)

provide Pubco with annualized budgets, which annualized budgets will provide cost projections on a monthly basis, and

 

 

 

 

 

 

(iii)

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.

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:

 

(a)

Artemis is a corporation duly organized, validly existing and in good standing under the laws of England;

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(b)

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:

 

 

 

 

 

 

(i)

as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally,

 

 

 

 

 

 

(ii)

as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies, and

 

 

 

 

 

 

(iii)

as limited by public policy;

 

 

 

 

 

(c)

neither the execution, delivery and performance of this Agreement, nor the consummation of the transactions contemplated hereby, will:

 

 

 

 

 

 

(i)

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,

 

 

 

 

 

 

(ii)

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

 

 

 

 

 

 

(iii)

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;

 

 

 

 

 

(d)

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;

 

 

 

 

 

(e)

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;

 

 

 

 

(f)

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

 

 

 

 

(g)

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.

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:

 

(a)

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;

 

 

 

 

 

(b)

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:

 

 

 

 

 

 

(i)

as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally,

 

 

 

 

 

 

(ii)

as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies, and

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(iii)

as limited by public policy;

 

 

(c)

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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