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                                                                   EXHIBIT 10-52
                                 AMENDMENT NO. 2
                                       TO
                        EXCLUSIVE MANUFACTURING AGREEMENT

         THIS AMENDMENT NO. 2 TO EXCLUSIVE MANUFACTURING AGREEMENT (the
"Amendment") is made and entered into this 7th day of July, 2005 by and between
CIRTRAN CORPORATION, a Nevada corporation ("CTC") and ADVANCED BEAUTY SOLUTIONS,
LLC a California limited liability company ("Client").

                                    RECITALS

         A.       CTC and Client have entered into an Exclusive Manufacturing
Agreement dated January 18, 2005, as amended on _________, 2005 (the
"Agreement"), pursuant to which CTC has agreed to be Client's exclusive
manufacturer for Client's personal hair care product entitled "True Ceramic Pro
- Flat Iron Traveling Kit" which features the True Ceramic Pro - Infra Red Ionic
Styler (the "Product").

         B.       Client has also designed personal hair care products known as
the TCP Home Bio-Ionic Blow Dryer Kit (the "Home Dryer") and the TCP Travel
Bio-Ionic Blow Dryer Kit (the "Travel Dryer" or, together with the Home Dryer,
the "Additional Products").

         C.       Client desires that CTC be its exclusive manufacturer for the
Additional Products and CTC is willing to do so, subject to the terms and
conditions set forth herein.

         D.       Capitalized terms not otherwise defined herein shall have the
meaning set forth in the Agreement.

         NOW THEREFORE, in consideration of the mutual covenants and conditions
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, and intending to be legally bound,
the parties agree as follows:

         1.       Purchase Commitment. A new paragraph is hereby added at the
end of Section 1 of the Agreement as follows:

         "Execution of the Amendment to this Agreement will act as Client's
expression of intent to purchase up to 500,000 units of the Home Dryer and
500,000 units of the Travel Dryer on the terms and condition set forth herein;
provided, there are no minimum purchase requirements for such Additional
Products except as provided in Section 12 of this Amendment. Delivery of the
Additional Products will occur pursuant to Client's scheduling forecast and
release orders as further detailed on Schedule B attached hereto (as updated
from time to time, the "Forecast"). Notwithstanding anything to the contrary
contained herein, time is of the essence and CTC hereby agrees and acknowledges
that all Additional Products shall be shipped to Client within forty-five (45)
days of the date each purchase order is accepted by CTC. Client may use its
standard purchase order form to schedule specific delivery dates consistent with

<PAGE>

the scheduling forecast (a "release order"), to accelerate deliveries described
in the forecast, to specify delivery addresses or other notices provided for
hereunder. The parties agree, however, that the standard purchase order forms
shall only be used for the purposes described in the previous sentence, and any
terms in the purchase order form or other documentation sent by Client to CTC
which are in addition to or inconsistent with this Agreement are expressly
rejected and shall not form part of the contract between CTC and Client. All
release orders must allow for sufficient time for surface shipping and
scheduling. Such release orders which request accelerated or additional
deliveries will normally be deemed accepted by CTC, provided however that CTC
may reject, in its reasonable discretion, any order that does not conform to the
lead-time, flexibility or cancellation terms of this Agreement. CTC shall notify
Client of rejection of any release orders within three (3) working days of
receipt of such order."

         2.       Basic Manufacturing Agreement. References in Section 2 of the
Agreement to the Product also include the Additional Products.

         3.       Exclusivity. References in Section 3(a) of the Agreement to
the TCP Flat Iron also include the Home Dryer and Travel Dryer. The following is
hereby added to the end of the first sentence of Section 3(b) of the Agreement:

         "or blow dryers that are identical to the Home Dryer or the Travel
Dryer."

         4.       Sample Product. A new paragraph is added at the end of Section
4 of the Agreement as follows:

         "CTC agrees to produce an initial run of machine assembled samples of
the Additional Products and their packaging (the "Additional Product Samples")
for Client to inspect. Client shall promptly inspect the Additional Product
Samples and determine whether issues with respect to functionality, performance,
fit and finish of the Additional Product Samples have been resolved by CTC and
authorize the manufacture of the Additional Products. Client will use its
reasonable commercial efforts to cooperate with CTC and will not unreasonably
withhold or delay such authorization. Notwithstanding the foregoing, if CTC does
not provide Client with Additional Product Samples that are satisfactory to
Client within forty-five (45) days of the date hereof, Client may terminate this
Agreement as to the Additional Products. The parties acknowledge that CTC may
not commence manufacture until the Additional Product Samples have been
approved, and that initial delivery dates may therefore be deferred by CTC to
allow time for Additional Product Samples approval, ramp-up of the factory and
surface shipping to Port of Los Angeles."

         5.       Delivery. With the exception of the first sentence of Section
5, references to the Product in the remainder of Section 5 of the Agreement
shall also include the Additional Products.

         6.       Order Flexibility. References in Section 6 of the Agreement to
250,000 units refer to 250,000 units of the Product and 125,000 units of each of
the Additional Products. References to the Product in Section 6 of the Agreement
also include the Additional Products.

<PAGE>

         7.       Forecast, Scheduling Meeting; Tooling; Intellectual Property.
References in Section 7 of the Agreement to the Product also include the
Additional Products.

         8.       Tooling, Intellectual Property. A new paragraph 8(c) is added
to Section 8 as follows:

         "(c) The molds, CAD files and designs for the Additional Products were
         developed by CTC based on specifications provided by Client. During the
         term of this Agreement, and thereafter if Client has purchased at least
         a total of 300,000 units of Additional Product, CTC will not use the
         molds, CAD files and designs to make products for any person other than
         Client. If this Agreement terminates prior to Client's purchase of at
         least a total of 300,000 units of Additional Product, CTC may
         thereafter use the molds, CAD files and designs to make products for
         itself or third parties; provided CTC will not have any right to use
         Client's trade names, product names or trademarks in connection
         therewith except as provided in Section 8(a). Additionally, CTC shall
         not make or sell any item bearing any name, logo or other identifier of
         Client, other than as specifically allowed for herein. CTC shall not
         provide any of the designs of Client to any third party without the
         expressed written authorization of Client.

         9.       Pricing. A new paragraph is hereby added at the end of Section
9 of the Agreement as follows:

         "The price to Client of the Home Dryer shall be $18.50 per unit USD
F.O.B. Port of Los Angeles ($17.50 per unit USD F.O.B. China). The price to
Client of the Travel Dryer shall be $13.00 per unit USD F.O.B. Port of Los
Angeles ($12.25 per unit USD F.O.B. China). This pricing can only be increased
pursuant to the terms of this Agreement or with Client's prior written consent.
All invoices shall contain an itemized break down for the cost of all products
in the Additional Product kit."

         10.      Payment Terms, Distribution Channels; Credit. References in
Sections 10 and 11 of the Agreement to the Product also include the Additional
Products. The credit limit referenced in Section 11 for the first six months of
the Agreement is increased to extended to the date ninety days from the date
hereof and an additional credit limit solely for the Additional Products in the
amount of $1,700,000 is hereby extended until the date ninety days from the date
hereof.

         11.      Term, Termination. (a) Section 12(a) of the Agreement is
hereby deleted and replaced with the following paragraph:

         "(a)     This Agreement shall be for an initial term of the earlier of
         the date (i) with respect to Products only, the date 1,000,000 units of
         Product are delivered to Client (ii) with respect to Additional
         Products only, the date 500,000 units of both Additional Products are
         delivered to Client, or (iii) 30 months from the date of the first
         delivery of Product to Client (the "Initial Term")."

         (b)      References in Section 12(b) of the Agreement to TCP Flat Irons
shall also include the Additional Products.

<PAGE>

         (c)      Section 12(c) of the Agreement is hereby deleted and replaced
with the following:

         "(c)     If Client does not have any other valid means of terminating
         this Agreement pursuant to the terms hereof, and Client still desires
         to terminate this agreement, this Agreement may still be terminated by
         Client prior to the sale of the minimum of 1,000,000 units of Product
         and 500,000 units of both Additional Products by prior written notice
         if all of the following conditions apply:

                  (i)      All invoices for Product and Additional Products and
                  payment for Product and Additional Products subject to
                  non-cancelable orders and the minimum purchase obligation have
                  been paid in full (whether or not then due) and Client is not
                  in default under this Agreement.

                  (ii)     Client, through a senior executive officer, certifies
                  to CTC in writing that (1) Client is no longer advertising or
                  promoting any of the Product or Additional Products and has no
                  plans to advertise or promote the Product or Additional
                  Products or any substantially similar product, (2) continued
                  sale of the Product or the Additional Products is no longer
                  profitable to Client, (3) other than sales of existing
                  inventory of the Product or Additional Product purchased from
                  CTC, Client has no plans or intentions to manufacture,
                  distribute or sell the Product or Additional Products or any
                  substantially similar product, and (4) Client is aware of
                  agrees to abide by its exclusivity provisions as set forth in
                  Section 3 above.

                  (iii)    Client submits to CTC at the time of Client's notice
                  of termination, a release order (the "Final Release") for the
                  shipment as soon as manufacturing schedules permit of a number
                  of units of Product equal to the lesser of (x) 100,000 or (y)
                  three times the average monthly number of units of Product
                  purchased during the term preceding Client's notice of
                  termination.

                  (iv)     The invoice(s) for the Product and Additional
                  Products purchased in the Final Release shall be paid by
                  Client in accordance with Section 10. The provisions of this
                  Agreement requiring forecasts (Section 7) and minimum
                  purchases shall be suspended pending payment of the invoice(s)
                  for the Final Release. This Agreement shall terminate upon
                  payment when due of the invoice(s) for the Final Release;
                  provided that if Client does not pay such invoice(s) when due,
                  Client shall no longer be entitled to terminate pursuant to
                  this Section 12(c) and CTC shall instead be entitled to
                  terminate pursuant to Section 12(b)."

         12.      Obligations on Termination (Other than Section 12(c)). Section
13 of the Agreement is hereby deleted and replaced with the following:

         "CTC will incur substantial expense in anticipation of its performance
obligations under this agreement, and such expenses will not be recovered by it
if the Agreement is terminated prior to the end of the initial scheduled term.

<PAGE>

The damages to be suffered by CTC upon early termination cannot readily be
calculated. The parties have agreed that if the Agreement is terminated during
the Initial Term by CTC due to Client's defaults pursuant to Section 12(b)(i) or
12(b)(ii), then Client shall pay CTC an early termination fee of (a) the
difference between 1,000,000 units and the number of units of Product paid for
by Client multiplied by $21.45. The parties agree that such early termination
fee is a reasonable estimate of CTC's damages and is intended as liquidated
damages, rather than a penalty.

         Termination of this Agreement for any reason shall not affect the
obligations of either party that exist as of the date of termination. Upon
termination of this Agreement due to CTC's default under Section 12(b)(i) or
12(b)(ii), Client shall be responsible to purchase all finished Products and
Additional Products subject to valid purchase orders."

         13.      Term, Termination. The terms and conditions of this Amendment
may be terminated by either party upon sixty (60) days prior written
noticeTermination of this Amendment for any reason or no reason whatsoever shall
not affect the obligations of either party that exist as of the date of
termination.

         14.      Miscellaneous. References in Sections 14, 15, 17, 18, 19, and
20 of the Agreement to the Product shall also include the Additional Products.

         15.      Notices. Section 2.2 of the Agreement is hereby amended so
that all notices to Client shall be addressed to:

                  Jason Dodo
                  Advanced Beauty Solutions, LLC
                  5900 Sepulveda Blvd, Suite 302
                  Van Nuys, CA  91411
                  (818)782-3174

         16.      Force Majeure. References in Section 24 of the Agreement to
TCP Flat Irons shall also include the Home Dryer and Travel Dryer.

         17.      Effect on Agreement. Except as specifically provided in this
Amendment, all provisions of the Agreement shall remain unaffected by this
Amendment and shall continue in full force and effect in accordance with the
provisions of the Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the date first set forth above.

                                            CIRTRAN CORPORATION

                                            By:   /s/
                                                -----------------------------
                                                   Iehab Hawatmeh, President

                                            ADVANCED BEAUTY SOLUTIONS, LLC

                                            By:    /s/
                                                -----------------------------
                                                   Jason Dodo, President

--------------------------------------------------------------------------------Exhibit 4.1

 

SERONO S.A.

company limited by shares

with registered offices at Coinsins, Vaud,
Switzerland

 

ARTICLES OF ASSOCIATION

of April 26, 2005

 

This
document is a translation. The original version of the Articles of Association
of Serono S.A. is the French version dated April 26, 2005 which is
registered with the Commercial register of the State of Vaud, Switzerland.

 

 

SERONO S.A.

 

ARTICLES OF ASSOCIATION

 

SECTION I

 

NAME - REGISTERED OFFICE

OBJECT - DURATION

 

Article 1: Name

 

There is hereby formed a company limited by shares named SERONO S.A.,
which is governed by the present Articles of Association and by Section XXVI
of the Code of Obligations (also referred to hereinafter as “CO”).

 

Article 2: Registered Office

 

The registered offices of the company are in Coinsins (Canton of Vaud).

 

Article 3: Object

 

The principal object of the company is to act as a holding company (for
the acquisition and management of shareholdings in Switzerland and abroad) in
the pharmaceutical and related fields.

 

The company may establish enterprises or companies, carry out any
financial, commercial, industrial and real estate transactions, and conclude
any contracts which further or are directly or indirectly connected with its
object.

 

Article 4: Duration

 

The company is established for an indefinite duration.

 

2

 

SECTION II

 

SHARE CAPITAL

SHARES

 

Article 5: Share Capital

 

The share capital is fixed in the sum of CHF 379,523,900 (three
hundred and seventy-nine million five hundred and twenty-three thousand nine
hundred Swiss francs), divided into:

 

a)                        11,013,040 registered “A”
shares with restricted transferability, each with a par value of CHF 10 (ten
Swiss francs), fully paid up; and

 

b)                       10,775,740 bearer “B” shares, each with a par value of CHF 25
(twenty-five Swiss francs), fully paid up.

 

Article 5
bis: conditional capital

 

A. Conditional capital for
option and/or convertible loans

 

The share capital of the company shall be increased by
a maximum of CHF 36,300,000
(thirty six million three hundred thousand Swiss francs) through the issue of 1’452,000
(one million four hundred and fifty-two thousand)
bearer “B” shares with a par value of CHF 25 (twenty-five Swiss francs) each,
to be fully paid up by the exercise of the option and/or conversion rights
granted in connection with loans issued by companies of the Serono group.

 

The amount and conditions of the loans, together with
the procedures and conditions for the exercise of option and/or conversion
rights and the issue price shall be determined by the Board of Directors. The
new shares may be purchased or acquired by holders of convertible bonds or
option rights arising from option bonds.

 

The Board of Directors may resort to the issuance of
loans to be subscribed by a consortium, with a subsequent public offering,
subject to the provisions indicated below.

 

The Board of Directors shall determine the procedures
for the exercise of preferential subscription rights. Preferential subscription
rights which are not exercised shall revert

 

3

 

to the company. The Board of Directors may offer them
at market rates or allow them to expire.

 

The Board of Directors may remove the shareholders’
preferential subscription right if loans are issued to finance the acquisition
of shareholdings or other rights in companies or with a view to financing
research and development projects. Should the Board of Directors remove the
shareholders’ preferential subscription right, the following conditions shall
apply:

 

a)              conversion rights may be
exercised for a maximum period of 15 years and option rights for a period of 7
years from the date of issue of the related loan

 

b)             convertible loans and/or
loans with options shall be issued subject to normal market conditions
(including the normal market conditions relating to protection against dilution
for the holders of option and/or conversion rights); and

 

c)              conversion and/or option
prices shall correspond at the least to the average rate quoted on the Zurich
stock exchange for the shares of the company during the 5 days preceding the
determination of the definitive issue conditions for the convertible loan or
loan with options in question.

 

B. Conditional capital for a stock option
plan

 

The share capital of the company shall be increased by
a maximum of CHF 18,166,275
(eighteen million one hundred and sixty-six thousand two hundred and
seventy-five Swiss francs), namely 726,651(seven hundred and twenty-six
thousand six hundred and fifty-one) bearer “B” shares,
each with a par value of CHF 25 (twenty-five Swiss francs), fully paid up,
through the exercise of option rights which the Board of Directors intends to
grant to employees of companies of the Serono group and to the directors of the
company.

 

The subscription right of shareholders shall be
removed for these new shares.

 

The Board of Directors shall lay down regulations
specifying the conditions and procedures for the granting and exercise of the
options.

 

The shares may be subscribed at a rate lower than the
stock market rate.

 

4

 

Article 5 ter: Authorised
capital

 

The Board of Directors shall be authorised, until 25 May 2006,
to increase the share capital by a maximum of CHF 35,000,000 (thirty-five
million Swiss francs) through the issuance of a maximum of 1,400,000 (one
million and four hundred thousand) bearer shares, each with a par value of CHF
25 (twenty-five Swiss francs), fully paid up. The Board of Directors may
proceed to increase the share capital either all at once or in instalments. The
preferential subscription rights which have been granted, but not exercised,
are at the disposal of the Board of Directors, which may use them in the
interest of the company.

 

The Board of Directors is authorised to withdraw the
preferential subscription right of shareholders in favour of a bank or another
institution selected by the Board of Directors which shall purchase the shares
on a firm basis, if the bank or institution which firmly purchases the shares undertakes
to offer the subscription of the newly issued shares to the shareholders in
proportion to their current participation. The Board of Directors is also
authorised to withdraw the preferential subscription right of shareholders and grant
shares or preferential subscription rights to third parties in the case of the
purchase of a business or part of a business, taking a participation in a
business/company, or similar transactions.

 

The issue price of the shares, the manner in which they are paid up and
the date as from which the new shares give right to dividends as well as the
conditions for the exercise of the preferential subscription right shall be
determined by the Board of Directors.

 

Article 6: Shares

 

6.1.                    The shares are registered shares or bearer shares. They are numbered
and signed by a director, whose signature may be printed.

 

Each share shall be entitled to a proportional part of
the profits and of the proceeds of liquidation.

 

6.2.                    Instead of issuing individual registered or bearer shares, the
company may issue certificates representing a number of shares.

 

5

 

6.3.                    Registered Shares

 

The company considers registered shares to be indivisible and
recognises only one holder for each registered share. Shareholders who hold
registered shares must notify the company of any change of domicile. Any
communication from the company to the shareholder shall be deemed valid if sent
to the shareholder’s last recorded address.

 

6.4.                    Register of Registered Shares

 

The company shall keep a register, indicating the names and addresses
of the owners and usufructuaries of registered shares. The company shall
consider only the persons entered in this register as owners or usufructuaries
of registered shares .

 

No entry shall be made in the share register from the date on which the
General Meeting of Shareholders is convened until the day following the General
Meeting.

 

6.5.                    Transfer of Registered Shares

 

The transfer of registered shares is subject to approval by the company.
The Board of Directors has the power to grant such approval. It may delegate
this power to the Executive Committee. 
The request for authorisation shall include a declaration whereby the
person acquiring the shares certifies that they are being acquired in its own
name and for his/her own account.  The
company shall inform the applicant whether the transfer has been approved or
rejected.

 

Registration shall be rejected if the applicant does not expressly
declare that the shares are being acquired in its own name and for its own
account.

 

Registration may be rejected for a justifiable cause connected with the
object of the company or its economic independence and, in particular, if the
applicant is a competitor of the company or of a company in which Serono S.A.
holds a participating interest.

 

The company may, without giving reasons, refuse to approve a transfer
of shares by offering to the seller to buy back the shares for its own account,
for the account of other shareholders or for the account of third parties, at
their real value at the time the transfer request is received by the company.

 

In the case of a transfer by succession, the company must enter the
name of the acquirer in the share register, unless there is a justifiable cause
not to do so in accordance with Paragraph 3 above. In such an eventuality, if
the company intends to refuse to allow the transfer, it must offer to buy back
the shares for its

 

6

 

own account, for the account of other shareholders or for the account
of third parties, at their real value at the time the registration request is
received by the company.

 

If the company offers to buy back the shares for the account of
shareholders, it must abide by the principle of equal treatment of all holders
of registered shares.

 

After hearing the persons concerned, the Board of Directors, or the
Executive Committee by delegation of the Board of Directors, may cancel, with
retroactive effect, any entries made in the share register on the basis of
false declarations.

 

The foregoing provisions shall also apply where the registered shares
of the company are made subject to a usufruct.

 

The registered shares may not be used by way of pledge, guarantee or
security in any form whatsoever, save with the express prior authorisation of
the Board of Directors, which is free to give or not to give reasons for its
decision. The Board of Directors may delegate this power to the Executive
Committee.

 

The restrictions on the free transfer of registered shares shall be
noted on the documents representing the shares.

 

The provisions of Article 6.5 may be amended only by a resolution
carried by the majority as stipulated in Article 704 Paragraph. 1 CO.

 

6.6.                    Conversion of Shares

 

The General Meeting may decide at any time to convert some or all of
the registered shares into bearer shares and vice versa.

 

Article 7: Increase in share capital

 

7.1.                    The General Meeting may decide at any time to increase the share
capital by issuing new registered shares or new bearer shares. Each category of
shares may be the sole object of a particular issuance.

 

7.2.                    Every shareholder shall be entitled to a portion of the new share
issue corresponding to his previous holding. In the event of an increase in
share capital comprising an increase of registered shares and of bearer shares
in the same proportion, each shareholder in possession of registered shares
shall be entitled to subscribe for the new registered shares only in proportion
to the number of registered shares it holds. Similarly, each shareholder in
possession

 

7

 

of bearer shares shall be entitled to subscribe for the new bearer
shares only in proportion to the number of shares it holds.

 

8

 

SECTION III

 

ORGANISATION OF THE COMPANY

 

A.                                   The General Meeting

 

Article 8

 

8.1.                    The General Meeting is the highest authority of the company. Its
resolutions are binding on all shareholders.

 

8.2.                    Resolutions of the General Meeting which violate the law or the
Articles of Association may be contested by the Board of Directors or by any
shareholder under the conditions stipulated in Article 706 of the Code of
Obligations.

 

Article 9

 

The General
Meeting of Shareholders has the inalienable right:

 

9.1.                    to adopt and to amend the Articles of Association;

 

9.2.                    to appoint and to dismiss the members of the Board of Directors and
the auditors;

 

9.3.                    to approve the Group’s annual report and accounts;

 

9.4.                    to approve the annual accounts, to determine the distribution of
profits and, in particular, to fix the dividend;

 

9.5.                    to give discharge to the members of the Board of Directors;

 

9.6.                    to resolve upon all matters reserved to it by the law and the
Memorandum and Articles of Association.

 

9

 

Article 10

 

10.1.              No resolution may be passed on items which have not been placed on
the agenda, except for a proposal to convene an Extraordinary General Meeting
or to have a special audit carried out.

 

10.2.              Advance notice is not required for proposals falling within the
scope of items on the agenda or for deliberations which do not have to be
followed by a vote.

 

Article 11

 

11.1.              The General Meeting shall be held at the registered offices of the
company or at a place designated by the Board of Directors.

 

11.2.              The Ordinary General Meeting shall be held every year within six
months of the close of the financial year.

 

11.3.              Extraordinary General Meetings may be convened as often as
necessary, in particular in the cases provided for by law, as well as upon a
resolution passed by the General Meeting itself.

 

Article 12

 

The General
Meeting shall be convened by the Board of Directors and, where necessary, by
the auditors. Liquidators shall also have the right to convene the General
Meeting.

 

Article 13

 

13.1.              The General Meeting shall be convened, at least twenty days prior to
the date on which it is to be held, by registered letter sent to every
registered shareholder at the address indicated in the share register, as well
as by an announcement published in the Feuille Officielle Suisse
du Commerce (Swiss Official Trade Gazette).

 

13.2.              The invitation shall state the items on the agenda, together with
the proposals of the Board of Directors and of the shareholders who requested
the calling of the Meeting or the entry of an item on the agenda, the request having to be submitted
in writing to the Board of Directors at least 45 days before the date of

 

10

 

the Annual General Meeting. The invitation must also state the date, place and time of the
Meeting.

 

13.3.              Proposals to amend the Memorandum and Articles of Association shall
be placed at the disposal of the shareholders at the registered office of the
company. Their availability for inspection shall be stated in the invitation.

 

13.4.              The invitation to attend the Ordinary General Meeting must inform
the shareholder that the annual report, the profit and loss account and the
balance sheet, as well as the Group accounts and the auditors’ report will be
placed at the disposal of shareholders at the registered office of the company
at least twenty days prior to the General Meeting.

 

Article 14

 

Provided that
there is no objection, the owners or representatives of all the shares may hold
a General Meeting without following the convening procedure. As long as they
remain present, such a meeting shall have the right to deliberate and duly pass
resolutions on all matters which fall within the competence of the General
Meeting.

 

Article 15

 

Each share shall be entitled to one vote.

 

Article 16

 

Every holder
of registered shares may arrange to have all or any of its shares represented
by another person, who must be in possession of a written proxy form.

 

Article 17

 

17.1.              As a rule, the General
Meeting has a quorum irrespective of the number of shares represented.

 

17.2.              Unless otherwise
required by the law or by the Articles of Association, the General Meeting
shall proceed to pass resolutions and to conduct elections by an absolute majority
of the votes attached to the shares represented.

 

11

 

17.3.              However, at least
two-thirds of the votes attached to the shares represented and an absolute
majority of the par values represented shall be necessary to pass any
resolution of the General Meeting to amend the object of the company, to
introduce preferential voting shares, to restrict the transferability of
registered shares, to increase the share capital, whether the increase is
authorised or conditional, to increase the share capital from shareholders’
equity in consideration of a contribution in kind or with a view to acquire
assets and the granting of special advantages, to limit or remove the right of
preferential subscription, to transfer the registered office of the company,
and to dissolve the company without liquidation.

 

Article 18

 

18.1.              Minutes shall be kept of
the General Meeting, stating the number, type, par value and category of the
shares represented by the shareholders, the organs of the company, the
independent representatives and the trustee representatives the resolutions and
the results of the elections, the requests for information and the replies
given as well as the declarations which shareholders ask to be recorded. The
minutes shall be signed by the chairman and the secretary of the General
Meeting.

 

18.2.              Extracts from the
minutes shall be certified by a director or by any other person appointed for
such purpose by a director.

 

Article 19

 

19.1.              The General Meeting shall
be chaired by the chairman of the Board of Directors or by another director
designated by the Board. Failing that, the chairman shall be designated by the
General Meeting.

 

19.2.              The chairman of the
General Meeting shall designate the secretary and the person or persons who
shall count the votes.

 

B.                                   The Board of Directors

 

Article 20

 

20.1.              The Board of Directors
shall consist of at least five and at most ten members, chosen from among the
shareholders and appointed by the General Meeting.

 

12

 

20.2.              The majority of the
members of the Board of Directors must be Swiss nationals domiciled in
Switzerland, unless the company obtains a derogation from this rule in
accordance with Article 708 
Paragraph 1 CO.

 

Article 21

 

21.1.              The members of the Board
of Directors shall be appointed for a term of one year.

 

21.2.              There is no limit on the
number of times they may be re-elected.

 

21.3.              The Board of Directors
shall appoint its chairman and secretary by a simple majority.

 

Article 22

 

22.1.              Meetings of the Board of
Directors shall be convened , as often as business may require, either by the
chairman or, upon his order, by the secretary.

 

22.2.              Minutes shall be kept of
the discussions and resolutions of the Board of Directors and they shall be
signed by the chairman and the secretary.

 

Article 23

 

23.1.              The resolutions of the
Board of Directors shall be adopted by a majority of the members present,
provided that they form a majority of the Board of Directors and that a
majority of the members of the Executive Committee is present.

 

23.2.              In the event of a tie
vote, the chairman shall have the casting vote.

 

23.3.              Unless one member
insists on oral discussions, resolutions of the Board of Directors may also be
adopted by written approval of a motion by a majority of the directors, all of
whom must be informed of the motion. Such resolutions must be entered in the
minutes.

 

13

 

Article 24

 

The Board of
Directors shall have the widest powers to manage the company. It shall be
authorised to pass all resolutions regarding the company’s business which are
not attributed to or reserved for the General Meeting or other organs of the
company.

 

Article 25

 

25.1.              The Board of Directors may
delegate all or any part of the management and the representation of the
company to one or more board members (managing directors) or to third parties
who need not necessarily be shareholders.

 

25.2.              The Board of Directors
shall appoint the proxies and other attorneys of the company.

 

25.3.              The Board of Directors
shall grant individual or joint powers to sign on behalf of the company.

 

25.4.              At least one member of
the Board of Directors, domiciled in Switzerland, must have authority to
represent the company.

 

Article 26

 

The Board of Directors shall adopt its own rules of
procedure.

 

C.                                   The Executive Committee

 

Article 27

 

27.1.              The Board of Directors
shall appoint from among its members an Executive Committee of at least three
and at most five members.

 

27.2.              The Board shall appoint
the members of the Executive Committee at the proposal of the chairman. A
vice-chairman shall be appointed to replace the chairman if he/she is prevented
from acting.

 

27.3.              The chairman must be a
member of the Executive Committee.

 

14

 

27.4.              The powers of the
Executive Committee shall be defined in the Rules of Procedure of the
company.

 

D. The
Auditors

 

Article 28

 

28.1.              The General Meeting
shall elect one or more auditors. It may also designate deputy auditors. At
least one of the auditors must be domiciled in Switzerland and have his
registered office or a branch office entered in the Commercial Register in
Switzerland.

 

28.2.              The auditors shall be
elected for the period up to the next Ordinary General Meeting. They shall be
immediately eligible for re-election.

 

28.3.              The auditors shall be
required to attend the Ordinary General Meeting.

 

28.4.              The auditors must comply
with the provisions of Articles 728 et seq. of the
Code of Obligations.

 

28.5.              The General Meeting may
appoint every year a special auditor, which may be re-elected, with the duty to
proceed with the special verifications (provided in particular by articles
652f, 653f and 653i of the Code of Obligations) which are required in relation
with capital increases.

 

SECTION IV

 

ANNUAL ACCOUNTS

AND DISTRIBUTION OF PROFITS

 

Article 29

 

The company’s
financial year shall begin on 1 January and end on 31 December.

 

15

 

Article 30

 

30.1.              The annual accounts
shall be drawn up in accordance with the provisions of Articles 662 to 670 of
the Code of Obligations.

 

30.2.              The accounts shall be
closed on 31 December.

 

Article 31

 

31.1.              Each year, a sum of
one-twentieth of the profit for the financial year shall be set aside to
constitute a general reserve until the said reserve amounts to one-fifth of the
paid-up share capital. If any of the reserve is used, it shall again be made up
from the profits in the same way.

 

31.2.              The balance of the
profits shall be distributed in accordance with the resolutions of the General
Meeting, upon the recommendation of the Board of Directors.

 

31.3.              The mandatory provisions
of the law relating to reserves must be respected.

 

Article 32

 

The payment of
the dividend shall take place at the time appointed by the Board of Directors.
Any dividend which is not claimed within five years of the date on which it
becomes due shall automatically revert to the company.

 

SECTION V

 

LIQUIDATION

 

Article 33

 

33.1.              If it is decided to wind
up the company, the liquidation shall be effected by the Board of Directors,
unless the General Meeting resolves otherwise.

 

33.2.              At least one of the
liquidators must be domiciled in Switzerland and have authority to represent
the company.

 

33.3.              The liquidators shall
decide among themselves the method by which they will sign for the company.

 

16

 

Article 34

 

34.1.              During the liquidation,
the powers of the organs of the company shall be restricted to acts which are
necessary for the liquidation process and which, by their nature, do not fall
within the competence of the liquidators.

 

34.2.              The General Meeting of
Shareholders shall retain the right to approve the liquidation accounts and to
approve the acts of the liquidators.

 

34.3.              The liquidator or
liquidators may transfer the assets and liabilities of the dissolved company to
third parties against payment or other consideration only by virtue of a
resolution of the General Meeting.

 

SECTION VI

 

ANNOUNCEMENTS

 

Article 35

 

Company notices shall be published in the Feuille Officielle Suisse du Commerce.

 

17

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