Document:

exhibit_10-1.htm

EXHIBIT 10.1

 

Issuing Office:

Australia and New Zealand Banking Group Limited

Level 11, 20 Martin Place

Sydney NSW 2000

Phone: +61 2 9226 4552

Fax: +61 2 9226 4553

Mitchell.White@anz.com

www.anz.com

13 November 2012

 

The Directors

Royal Wolf Trading Australia Pty Ltd

Suite 202, Level 2

22-28 Edgeworth David Avenue

Hornsby NSW 2077

Dear Sirs,

 

Variation Letter – Royal Wolf Trading Australia Pty Ltd ACN 069 244 417

 

We set out the proposed changes to your financial arrangements with us on the terms of this letter.

 

The Facilities are offered on the terms set out in:

 

	
·  

	
this letter;

 

	
·  

	
each existing Letter of Offer;

 

	
·  

	
the ANZ Standard Terms (First Edition 2011) (Standard Terms) as last provided;

 

	
·  

	
the Specific Terms for the Cash Advance Facility as enclosed;

 

	
·  

	
unless otherwise enclosed, any Specific Terms for the Facilities as last provided,

 

which, together, comprise the offer.

 

Certain terms used in this letter are defined in this letter and the Standard Terms.

 

Amendments

 

The Letter of Offer is varied by:

 

	
1.  

	
(Part 2 (Facilities))

 

	
(a)  

	
inserting the following Facility schedules under Part 2 (Facilities).

 

	
FACILITY

	
CASH ADVANCE FACILITY (1)

	
Borrower:

	
Royal Wolf Trading Australia Pty Ltd ACN 069 244 417

	
Facility Limit:

	
AUD15,000,000

	
Termination Date:

	
14 November 2014.

	
Purpose:

	
To assist with future growth capital expenditure for the business.

	
Repayment:

	
The Facility Amount Owing is payable on the Termination Date. Interest is payable throughout the term.

 

  

1

  

 

	
    Interest rate:

	
BBR (for the relevant Interest Period) plus a margin of 0.35% pa.

	
    Fees:

	
Loan administration charge:

 

A loan administration charge of AUD195 per drawing is payable quarterly on the last Business Day of January, April, July and October (each a “Payment Date” for the purposes of this charge).

 

The charge is payable on each drawing which is outstanding under the Facility on a Payment Date without reference to the number of days in which each relevant drawing was drawn in the quarter.

	  	
 

Line fee:

    

    A line fee of 1.50% pa of the Facility Limit is payable quarterly in advance, commencing on the date on which the Facility is first accepted. If the Facility Limit is reduced or cancelled in

    the quarter the fee is not refundable. 

	
    Specific Terms:

	
Specific Terms for the Facility are enclosed and apply.

 

	
FACILITY

	
CASH ADVANCE FACILITY (2)

	
Borrower:

	
Royal Wolf Trading Australia Pty Ltd ACN 069 244 417

	
Facility Limit:

	
AUD71,000,000

	
Termination Date:

	
30 June 2014.

	
Purpose:

	
To assist with fluctuating container purchase facility.

	
Repayment:

	
The Facility Amount Owing is payable on the Termination Date. Interest is payable throughout the term.

	
    Interest rate:

	
BBR (for the relevant Interest Period) plus a margin of 0.55% pa.

	
    Fees:

	
Loan administration charge:

 

A loan administration charge of AUD195 per drawing is payable quarterly on the last Business Day of January, April, July and October (each a “Payment Date” for the purposes of this charge).

 

The charge is payable on each drawing which is outstanding under the Facility on a Payment Date without reference to the number of days in which each relevant drawing was drawn in the quarter.

	  	
 

Line fee:

 

    A line fee of 1.50% pa of the Facility Limit is payable quarterly in advance, commencing on the date on which the Facility is first accepted. If the Facility Limit is reduced or cancelled in 

    the quarter the fee is not refundable. 

	
    Specific Terms:

	
Specific Terms for the Facility are enclosed and apply.

 

  

2

  

 

	
(b)  

	
deleting the Facility schedule for the Multi Option Facility (2) made available to Royal Wolf Trading Australia Pty Ltd ACN 069 244 417 where it appears under Part 2 (Facilities).

 

	
2.  

	
(Total Facility Limits under Summary of Facilities) deleting “113,000,000” where it appears as the Total Facility Limits under Summary of Facilities and replacing it with “104,000,000”.

 

	
3.  

	
(Facility and Facility Limit under Summary of Facilities)

 

	
(a)  

	
inserting “Cash Advance Facility (1)” and its corresponding Facility Limit of “15,000,000” under the Facilities made available to Royal Wolf Trading Australia Pty Ltd ACN 069 244 417 under Summary of Facilities.

 

	
(b)  

	
inserting “Cash Advance Facility (2)” and its corresponding Facility Limit of “71,000,000” under the Facilities made available to Royal Wolf Trading Australia Pty Ltd ACN 069 244 417 under Summary of Facilities.

 

	
(c)  

	
deleting “Multi Option Facility (2)” and its corresponding Facility Limit of “95,000,000” where it appears under the Facilities made available to Wolf Trading Australia Pty Ltd ACN 069 244 417 under Summary of Facilities.

 

	
4.  

	
(Part 4 (Security) – Security held) deleting the following Security where it appears under the heading "Security held" under Part 4 (Security).

 

Security held

	
 

(a) 

	
Cross Guarantee and Indemnity dated 30 May 2011 between:

	  	
-

	
Royal Wolf Holdings Limited ACN 121 226 793

	  	
-

	
Royal Wolf Trading Australia Pty Ltd ACN 069 244 417

	  	
-

	
Royalwolf NZ Acquisition Co. Limited Company Number 2115393

	  	
-

	
Royalwolf Trading New Zealand Limited Company Number 1062072

 

	
5.  

	
(Part 4 (Security) – Security to be released) inserting the following at the end of Part 4 (Security).

 

Security to be released

	
 

(a) 

	
Cross Guarantee and Indemnity dated 30 May 2011 between:

	  	
-

	
Royal Wolf Holdings Limited ACN 121 226 793

	  	
-

	
Royal Wolf Trading Australia Pty Ltd ACN 069 244 417

	  	
-

	
Royalwolf NZ Acquisition Co. Limited Company Number 2115393

	  	
-

	
Royalwolf Trading New Zealand Limited Company Number 1062072

 

	
6.  

	
(Part 4 (Security) – Security to be taken) inserting the following under Part 4 (Security).

 

Security to be taken

	
 

(a) 

	
Corporate Guarantee and Indemnity between:

	  	
-

	
Royal Wolf Est Pty Ltd ACN 079 735 050

	  	
-

	
Royal Wolf Holdings Limited ACN 121 226 793

	  	
-

	
Royal Wolf Trading Australia Pty Ltd ACN 069 244 417

	  	
-

	
Royalwolf NZ Acquisition Co. Limited Company Number 2115393

	  	
-

	
Royalwolf Trading New Zealand Limited Company Number 1062072

	  	
in favour of ANZ Bank New Zealand Limited and ANZ.

  

3

  

 

	
7.  

	
(Clause 6.2 (Financial covenants))

 

	
(a)  

	
deleting clause 6.2(a)(i)(Debt to EBITDA Ratio) and replacing it with the financial covenant below.

 

	
  

	
(i)

	
(Debt to EBITDA Ratio) the Debt to EBITDA Ratio of the Testing Entities for any Relevant Period ending within a period set out in column 1 below must not exceed the corresponding ratio set out in column 2 below:

 

	
Column 1

	
Column 2

	
Period

	
Ratio

	
1 October 2012 to 30 December 2012

	
3.00 : 1

	
Commencing 1 January 2013 and thereafter

	
2.75 : 1

 

Conditions precedent

 

ANZ's obligation to provide any drawing under, or make available, a Facility is conditional on the conditions precedent in clause 2 (Conditions Precedent) of the Standard Terms and (unless stated otherwise) the conditions precedent in any existing Letter of Offer being met and each of the documents set out below being received by ANZ, in form and substance satisfactory to ANZ.

 

	
(a)  

	
(Certificate of value and location of assets) If the Borrower has indicated on the acceptance page of this letter that a Security Provider has some but not all assets located in New South Wales over which the Security Provider has provided or will provide security to ANZ, a certificate in the form provided by ANZ signed by a representative of the Borrower which sets out the location and value of assets of those Security Providers.

 

	
(b)  

	
(Loan Approval Fee) If it has not already done so, the Borrower must pay ANZ a loan approval fee of AUD75,000 on the Acceptance Date. ANZ may debit this fee to any account of the Borrower with ANZ at or after that time.

 

Facility Document

 

ANZ and the Borrower agree that this letter constitutes a Facility Document for the purpose of the Letter of Offer.

 

Except as expressly provided in this letter, all other provisions of the Letter of Offer shall remain in full force and effect and binding on the parties.

 

Acceptance

This offer is available for acceptance until close of business on 13 December 2012, unless extended by us in writing.

Unless you accept our offer within the offer period, the existing terms for the Facilities continue.

 

To accept our offer, please sign and date the enclosed copy of the Variation Letter on the acceptance page, and return it to me at this office together with the following completed documents:

	
o

	
Security Provider acknowledgement page of this Variation Letter dated and signed by each Security Provider

	
o

	
If you have indicated on the acceptance page of this letter that a Security Provider has some but not all assets located in New South Wales over which the Security Provider has provided or will provide security to ANZ, a Certificate of Value and Location of Assets

  

4

  

 

Once accepted, this letter varies each existing Letter of Offer and together they set out the terms of your financial arrangements with us.  To the extent that this letter is inconsistent with any existing Letter of Offer, this letter prevails.

 

We may withdraw our offer at any time before you accept it if we become aware of anything which, in our opinion, adversely alters the basis on which we made our offer.

 

We have included the following documents to be completed and returned to us when required under the Letter of Offer:

 

	
·

	
Compliance Certificate

	
·

	
Notice in accordance with the Specific Terms for the Cash Advance Facility

 

As your dedicated relationship banker we are committed to working with you to assist your business in achieving its goals and we look forward to continuing our strong relationship with you.  Please feel free to call us with any queries in relation to this letter or any other products or services that we may provide.

 

Yours faithfully,

 

 

/s/ Mitchell White

	
Mitchell White

Relationship Manager

	  	  

 

 

 

  

5

  

 

BORROWER ACCEPTANCE

 

Acceptance of Variation Letter dated 13 November 2012

 

	
1.

	
The Borrower accepts ANZ's offer to provide the Facilities on the terms detailed in this letter and acknowledges receipt of the Standard Terms and any applicable Specific Terms.

 

	
2.

	
If the Borrower has given or will give any Security to ANZ, the Borrower acknowledges and agrees that those Securities secure all present and future obligations of the Borrower to ANZ, including obligations in respect of the Facilities and any Uncommitted Markets Facility, subject to any limitations (if any) on the Security Provider's liability under the terms of any such Security.

 

	
3.

	
In relation to the Authorised Representatives for the Borrower, the Borrower certifies that there has been no change to the Authorised Representatives as disclosed to ANZ in the last Authorised Representative Certificate provided to ANZ.

 

	
4.

	
Do the Security Providers have assets (eg. debtors, plant, land, inventory, goodwill and loans) located in New South Wales over which the Security Providers have or will provide security to ANZ?

 

o Yes, all assets are located in New South Wales

 

T Yes, some assets are located in New South Wales

 

o No, no assets are located in New South Wales

 

(Please indicate by marking one box)

 

 

Dated                      26/11/2012________________

 

	
EXECUTED by Royal Wolf Trading Australia Pty Ltd:

 

	  	  
	
/s/ Robert Allan

	  	
/s/ Greg Baker

	
Signature of director

	  	
Signature of director/secretary

	
 

R. Allan

	  	
G. Baker

	
Name

	  	
Name

 

  

6

  

 

SECURITY PROVIDER ACKNOWLEDGEMENT

 

Acknowledgement to Variation Letter dated 13 November 2012 (Variation Letter)

 

Corporate Security Provider Acknowledgement

 

	
1.

	
Each of the following Security Providers acknowledges and agrees that the Securities given, or to be given by it, secure its guarantee of all present and future obligations of the Borrower to ANZ, including obligations in respect of the Facilities and any Uncommitted Markets Facility, subject to any limitations (if any) on the Security Provider's liability under the terms of any such Security.

 

	
2.

	
By providing this Acknowledgement, each Security Provider agrees to be bound by the obligations of the Security Provider as set out in the Variation Letter and the Standard Terms (which it acknowledges it has received) and acknowledges that the privacy disclosures made in clause 24 (Privacy) of the Standard Terms apply to it.

 

 

Dated                      26/11/2012______________

 

	
EXECUTED by Royal Wolf Est Pty Ltd:

 

	  	  
	
/s/ Robert Allan

	  	
/s/ Greg Baker

	
Signature of director

	  	
Signature of director/secretary

	
 

R. Allan

	  	
G. Baker

	
Name

	  	
Name

 

	
EXECUTED by Royal Wolf Holdings Limited

 

	  	  
	
/s/ Robert Allan

	  	
/s/ Greg Baker

	
Signature of director

	  	
Signature of director/secretary

	
 

R. Allan

	  	
G. Baker

	
Name

	  	
Name

 

  

7

  

	
EXECUTED by Royalwolf NZ Acquistion Co. Limited:

 

	  	  
	
/s/ Robert Allan

	  	
/s/ Greg Baker

	
Signature of director

 

	  	
Signature of director/secretary

	
R. Allan

	  	
G. Baker

	
Name

	  	
Name

 

	
EXECUTED by Royalwolf Trading New Zealand Limited:

 

	  	  
	
/s/ Robert Allan

	  	
/s/ Greg Baker

	
Signature of director

 

	  	
Signature of director/secretary

	
R. Allan

	  	
G. Baker

	
Name

	  	
Name

 

  

8

  

 

CERTIFICATE OF VALUE AND LOCATION OF ASSETS

 

To:                          Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (ANZ)

 

	
Borrower:

	
Royal Wolf Trading Australia Pty Ltd ACN 069 244 417

 

	
Instructions:

	
If the Borrower has indicated that the Security Providers have some assets located in New South Wales over which the Security Providers have or will provide security to ANZ, the Borrower must complete, sign and return this form to ANZ.  This certificate will assist in calculating any stamp duty payable on the Facility Documents.

 

For each Security Asset listed below, please complete the corresponding columns.  If the Security Asset listed comprises all of the assets of an entity, please provide the value of all the assets of that entity (eg. debtors, plant, land, inventory, goodwill and loans – excluding intercompany loans to other entities that have all their assets included on the list).

 

This certificate may be signed by one Borrower or an Authorised Representative of one Borrower on behalf of each Security Provider.

 

	
Security Asset

	
Value of Security Asset

	
In NSW

	
In Australia outside NSW

	
Outside Australia

	
Royal Wolf Est Pty Ltd ACN 079 735 050: All assets

	  	  	  
	
Royal Wolf Holdings Limited ACN 121 226 793: All assets

	
62,558,000

	  	  
	
Royal Wolf Trading Australia Pty Ltd ACN 069 244 417: All assets

	
AUD 86,899,990

	
AUD 81,473,383

	
AUD

	
Royalwolf NZ Acquisition Co. Limited Company Number 2115393: All assets

	
AUD

	
AUD

	
AUD

	
Royalwolf Trading New Zealand Limited Company Number 1062072: All assets

	
AUD

	
AUD

	
AUD 40,202,571

	
Total value

	
AUD 149,457,990

	
AUD 81,473,383

	
AUD 40,202,571

 

The value of the Security Asset is based on:

 

o an independent valuation of the Security Asset

 

o property valuations used in preparing an annual return under the Corporations Act

 

o financial reports certified by an independent auditor

 

o agreed valuations of the Security Asset for insurance purposes

 

(Please indicate by marking one box)

  

  

  

 

Dated                      26/11/2012_______________

 

	
EXECUTED by Royal Wolf Trading Australia Pty Ltd:

 

	  	  
	
/s/ Robert Allan

	  	
/s/ Greg Baker

	
Signature of director

	  	
Signature of director/secretary

	
 

R. Allan

	  	
G. Baker

	
Name

	  	
Name

 

  

  

  

 

COMPLIANCE CERTIFICATE

 

	
To:

	
Australia and New Zealand Banking Group Limited ABN 11 005 357 522 (ANZ)

 

	
Borrower:

	
Royal Wolf Trading Australia Pty Ltd ACN 069 244 417

 

	
Instructions:

	
In line 1, paragraph 1, please insert the relevant Compliance Date.

 

In the Borrowing Base Declaration section in paragraph 1, please complete each table.

 

In the Other Declarations section in paragraph 1, please complete each table.

 

In the first table in the Financial Covenants Declaration section in paragraph 1, please insert the "actual value" of the financial covenant as at that Compliance Date in the relevant column for each financial covenant.  If the actual value meets the required value for that financial covenant, please insert "Yes" in the "Comply?" column.  If not, please insert "No" and complete the second table.  Please attach to the Compliance Certificate additional page(s) setting out in reasonable detail your computations as to compliance or otherwise with each financial covenant.

 

In the Financial Indebtedness Declaration section in paragraph 1, please insert the AUD amount of the item as at that Compliance Date in the relevant column for each item.

 

In paragraph 2, if there is no Default or Review Event, please delete "[except for:]" and the table.  If there is any Default or Review Event, please delete the square brackets in paragraph 2 and complete the table.

 

In paragraph 3, please complete and delete the square brackets as necessary.

 

In the signature block, please insert the full name and ACN of the Obligor which is the head company of the Borrowers.  Please have a director of that company complete and sign the Compliance Certificate.  If it is not appropriate for that director to give the Compliance Certificate in this form, please promptly notify ANZ to discuss an alternative form.

 

If there is not enough space for any section, please insert "see attached pages" and attach additional pages with the information.

 

I refer to the Letter of Offer dated 13 November 2012 between ANZ and the Borrower and others.  Unless the context otherwise requires, definitions applying in the Letter of Offer have the same meanings in this certificate.

 

I certify that:

 

	
1.  

	
as at __________________:

 

BORROWING BASE DECLARATION IN RESPECT OF the Royal Wolf Group

 

Aged Debtors (from date payable)

 

	
Current

	
AUD

	
< 30 days

	
AUD

  

  

  

 

	
30 < 60 days

	
AUD

	
60 < 90 days

	
AUD

	
> 90 days

	
AUD

	
Total

	
AUD

 

Included in the above total

 

	
Value of bad/doubtful debts

	
AUD

	
Value of debtors owing from related or associated companies

	
AUD

	
Value of credit notes

	
AUD

	
Value of disputed debts and/or debtors exercising a set-off

	
AUD

 

Inventory/Stock

 

	
Raw materials

	
AUD

	
Work in progress

	
AUD

	
Finished goods

	
AUD

	
Total

	
AUD

 

Included in the above total

 

	
Value of slow moving/obsolete/damaged stock

	
AUD

	
Value of stock held under supplier retention of title agreements

	
AUD

	
Value of stock in transit

	
AUD

 

Trade payables/creditors

	
 

Current

	
 

AUD

	
< 30 days

	
AUD

	
30 < 60 days

	
AUD

	
60 < 90 days

	
AUD

	
> 90 days

	
AUD

	
Total

	
AUD

  

  

  

 

Included in the above total

	
 

Value of creditors subject to contra/mutual trading agreements

	
 

AUD

	
Has any major creditor stopped credit?

	
Yes/No

 

OTHER DECLARATIONS IN RESPECT OF the Royal Wolf Group

 

Statutory obligations to the Australian Tax Office (ATO)

including but not limited to CGT, FBT, PAYG and superannuation

	
 

Are any payments in arrears?

	
 

Yes/No

	
Have alternative arrangements for payment been negotiated?

	
Yes/No

	
Balance of all ATO running balance accounts (RBA)

	
AUD

	
Balance of any taxes payable which are being contested in good faith

	
AUD

	
Balance of any obligations payable under the Superannuation Guarantee Charge Act 1992 (Cth)

	
AUD

 

Statutory obligations to State or local governments

including but not limited to work cover payments, stamp duty, council rates, water rates, land tax

 

	
Are any payments in arrears?

	
Yes/No

	
Have alternative arrangements for payment been negotiated?

	
Yes/No

	
Balance of any taxes payable which are being contested in good faith

	
AUD

	
Have you lodged your annual WorkCover statement?

	
Yes/No

 

Other employee obligations

	
Are all employee deductions/obligations current and within normal terms (eg. novated leases, union fees etc.)?

	
Yes/No

	
Balance of any superannuation obligations yet to be remitted to nominated superannuation funds

	
AUD

  

  

  

 

Legal action

	
Has any party initiated legal action against the company/group or directors in the past 5 years (whether pre or post judgement, including disputes 

between directors, related parties, creditors, debtors, Government Agencies etc.)?

	
Yes/No

 

FINANCIAL COVENANT DECLARATION

 

	
Financial covenant description

	
Actual value

	
Comply?

	
Debt to EBITDA Ratio

	  	  
	
EBITDA Interest Cover Ratio

	  	  
	
Loan to Value Ratio

	  	  
	
Dividend Payments

	  	  
	
Drawn balance of Debtor Financing Facility

	  	  

	
 

If the Borrower does not comply with a financial covenant, (A) what steps are or will be taken to remedy it and (B) when will the non-compliance be remedied?

	  
	  
	
 

  

 

 

FINANCIAL INDEBTEDNESS DECLARATION IN RESPECT OF the Royal Wolf Group

	
Indebtedness in respect of consideration for the acquisition of assets or services payable more than 90 days after 

acquisition (and, for the avoidance of doubt, this includes indebtedness owing to "Trade payables/creditors > 

90 days" as set out in the Borrowing Base Declaration section in paragraph 1)

	
AUD

	
If the above value is greater than "Trade payables/creditors > 90 days" as set out in the Borrowing Base Declaration section in paragraph 1, insert a description of the transaction(s) that the difference is attributable to:

 

	
Indebtedness in respect of any derivative transaction entered into in connection with protection against or benefit 

from fluctuation in any rate or price

	
AUD

  

  

  

 

	
Without double counting, indebtedness in respect of any counter-indemnity obligation in respect of a guarantee, 

indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank, financial 

institution or other entity

	
AUD

	
Without double counting, guarantees of or indemnities for any type of Financial Indebtedness (as defined in 

clause 7.6 of the Letter of Offer) eg. a guarantee given on behalf of a third party whose borrowings is not otherwise 

relevant to the financial covenants in the Letter of Offer

	
AUD

 

 

	
2.  

	
there is no Default or Review Event continuing [except for:]

 

	
Description of Default or Review Event

	
(A) What steps are or will be taken to remedy it and (B) when will the Default or Review Event be remedied?

	  	  
	  	  
	
 

  

	  

 

 

	
3.  

	
[the Financial Statements required under the Letter of Offer are attached to this certificate; and]

 

	
4.  

	
the information contained in and attached to this certificate is true, correct and not misleading.

 

 

Dated                      _________________________

 

	
SIGNED by a director of

 

	  	  
	  	  	  
	
Company name and ACN

	  	  
	  	  	  
	  	  	
Signature of director

	  	  	  
	  	  	
Nameglla_ex101.htm

EXHIBIT 10.1

 

SHARE PURCHASE AGREEMENT

THIS AGREEMENT made with effect as of the 22nd day of June, 2012.

B E T W E E N:

GILLA INC.

a corporation incorporated under

the laws of the State of Nevada

("GILLA" or the “Vendor”)

- and -

CREDIFINANCE CAPITAL CORPORATION

a corporation incorporated under

the laws of the State of Delaware

("CFCC" or the “Purchaser”)

WHEREAS GILLA owns 990 shares of the common stock of GISOR SA (the “Purchased Shares”), a private company registered in the Democratic Republic of the Congo with a head office at 4A de l’Avenue Révolution, Quartier Socimat, Commune de la Gombe, Kinshasa, Democratic Republic of the Congo;

AND WHEREAS CFCC or its designee has received a fifteen percent (15%) non-dilution interest in all real and personal property held by GILLA in GISOR SA;

AND WHEREAS the Vendor has agreed to sell and the Purchaser has agreed to purchase all of the Purchased Shares on the terms and conditions hereinafter set out;

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the respective covenants and agreements herein contained the parties hereto agree to the terms set out below.

1.           Purchase and Sale of the Purchased Shares

1.1         Subject to the terms and conditions of this agreement, the Vendor shall sell, assign and transfer unto the Purchaser and the Purchaser shall purchase from the Vendor the Purchased Shares for a purchase price of (the “Purchase Price”) of $10,000.

1.2         The Purchase Price shall be paid and satisfied on execution of this Agreement by payment of the Purchase Price by the Purchaser to the Vendor.

  

1

  

 

2.           Representations and Warranties

2.1         The Vendor hereby represents and warrants to the Purchaser as follows and hereby acknowledges and confirms that the Purchaser is relying on such representations and warranties in connection with the purchase by the Purchaser of the Purchased Shares:

a)           the Purchased Shares are registered in the name of and beneficially owned by the Vendor with a good and valid title thereto, free and clear of all mortgages, liens, charges, pledges, claims, security interests and other encumbrances whatsoever;

b)           no person, firm or corporation has any agreement, other than the fifteen percent interest held by the Purchaser prior to this Agreement, or option or right capable of becoming an agreement or option for the purchase from the Vendor of the Purchased Shares.

3.           Covenants

3.1         The Vendor shall do, or cause to be done, all acts, deeds and things necessary to complete the transaction of purchase and sale of the Purchased Shares herein provided for so that following closing the Purchaser shall be the legal owner of such Purchased Shares.

4.           Closing

4.1         The closing of the purchase and sale of the Purchased Shares shall take place contemporaneously with the execution of this agreement, the actual time when such closing is to take place being herein referred to as the “Time of Closing”.

5.           General

5.1         The covenants, representations and warranties herein contained shall survive the closing of the purchase and sale of the Purchased Shares herein provided for and notwithstanding such closing, shall continue in full force and effect for the respective benefit of the Purchaser and the Vendor, as the case may be.

5.2         This agreement may be executed in one or more counterparts, each of which when so executed shall constitute an original and all of which together shall constitute one and the same agreement.

5.3         The provisions of this agreement shall enure to the benefit of and shall be binding upon the parties hereto and their respective legal personal representatives, successors and assigns.

5.4         Any notice required or permitted to be given pursuant to or concerning this agreement shall be in writing and may be given by personal service or may be given by prepaid registered mail to the respective parties at their respective addresses noted below or at such other address of which notice may have been given in accordance with the provisions of this Section 4, and if so mailed, shall be deemed to have been received ten (10) days after the date of mailing, except in the event of any interruption of normal postal service which might affect such mailing, in which case such mailing shall be deemed received on actual receipt by the addressee:

  

2

  

 

GILLA at:

112 North Curry Street

Carson City, NV 89702

Attention:                      Mr. Georges Benarroch

CFCC at:

1232 North Ocean Way

Palm Beach, FL 33480

Attention:                      Mr. Georges Benarroch

 

IN WITNESS WHEREOF the parties have executed this agreement as of the 22nd of June, 2012.

 

	GILLA INC.	 
	 	 
	By: 	/s/Georges Benarroch	 
	 	Georges Benarroch	 
	 	 
	
CREDIFINANCE CAPITAL CORP.

	 
	 	 
	By: 	/s/Georges Benarroch	 
	 	Georges Benarroch	 

 

 

 

3

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