Document:

exhibit10-5.htm

    AMENDMENT
NO. 1 TO AGREEMENT AND PLAN OF MERGER

    

    

    This
Amendment No. 1 (the “Amendment”), entered into July
7, 2009, to the Agreement and Plan of Merger (the “Agreement” or “Merger Agreement”) executed on
or around May 22, 2009, by and between SARS Corporation (“SARS”), a corporation formed
under the laws of the State of Nevada, and/or its assignees, Environmental
Insulation, LLC (“EI”),
a limited liability company formed under the laws of the State of Nevada, EI
Acquisition Corp. (the “EI
Merger Sub”), a corporation to be formed under the laws of the State of
Nevada and a wholly owned subsidiary of SARS, ESDD, LLC (“ESDD”), a limited liability
company formed under the laws of the State of Tennessee, ESDD Acquisition Corp.,
a corporation to be formed under the laws of the State of Nevada and a wholly
owned subsidiary of SARS (the “ESDD Merger Sub”),
Alternatech, Inc. (“Alternatech”), a corporation
formed under the laws of the State of Illinois, Alternatech Acquisition Corp.
(the “Alternatech Merger
Sub”), a corporation to be formed under the laws of the State of Nevada
and a wholly owned subsidiary of SARS, Associated Mechanical, Inc. (“AMI”), a corporation formed
under the laws of the State of Illinois, AMI Acquisition Corp. (the “AMI Merger Sub”), a
corporation to be formed under the laws of the State of Nevada and a wholly
owned subsidiary of SARS, Swank Enterprises, Inc. (“SEI”) d/b/a Art and Print,
Inc. (“A&P”), a
corporation formed under the laws of the State of Illinois, A&P Acquisition
Corp. (the “A&P Merger
Sub”), a corporation to be formed under the laws of the State of Nevada
and a wholly owned subsidiary of SARS  and R.J. Power Plumbing &
Heating Company (“RJP”),
a corporation formed under the laws of the State of Illinois, RJP Acquisition
Corp. (the “RJP Merger Sub”), a corporation to
be formed under the laws of the State of Nevada and a wholly owned subsidiary of
SARS.  Hereinafter, EI, ESDD, Alternatech, AMI, A&P and RJP shall
be referred to collectively as the “Acquisition
Entities”:

    

    WHEREAS,
the Parties desire to revise the Closing Date of the Agreement;

    

    WHEREAS,
the Parties wish to consolidate the individual merger subsidiaries, as
previously contemplated by the Parties into one (1) merger
subsidiary;

    

    WHEREAS,
the Parties wish to revise the number of SARS shares received by the EI, ESDD,
Alternatech, AMI, A&P and RJP collectively;

    

    WHEREAS,
the Parties desire the effective date of this Amendment to be retroactively
effective as of June 30, 2009;

    

    WHEREAS,
the Parties now wish to amend the Agreement, as set forth herein;
and

    

    WHEREAS, except as set forth herein,
all other terms to the Agreement shall remain in full force and
effect.

    

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth
herein, it is hereby covenanted and agreed to by the Parties as
follows:

    

    

    1.           The
“Closing Date” in the
Agreement shall be defined as July 8, 2009.

    

    2.           
All references to the “EI
Merger Sub, ESDD Merger
Sub, Alternatech Merger
Sub, AMI Merger
Sub, A&P Merger
Sub, the RJP Merger
Sub and the Merger
Subs” shall be removed and replaced by “FasTech Services,
Inc.”  FasTech Services, Inc. shall be formed by SARS as a
wholly-owned subsidiary of SARS.

    

    3.           Section 1.01”The Share
Exchange” subsection (b) shall be stricken and replaced in its entirety
by the following:

    

    “The
Acquisition Entities shall receive twenty four million (24,000,000) shares of
SARS’ restricted common stock shares, on a pro rata basis, otherwise known
herein as the ‘Merger
Shares’;”

    

    4.           Section 1.02 “The Merger”
subsection (b)(i)(3) shall be stricken and replaced in its entirety by
the following:

    

    “The
Merger Shares acquired in the Share Exchange shall represent, when issued, the
equivalent of approximately, but no less than, sixty percent (60%) of SARS’
issued and outstanding common stock at the Effective Time (defined, herein
below).”

    

    5.           Section 1.02 “Conversion of
Merger Sub Stock” subsection (b)(ii) shall be stricken and replaced in
its entirety by the following:

    

    “At the
Effective Time (defined, herein below), by virtue of the Merger and without any
action on the part of the Acquisition Entities and FasTech Services, Inc. and
SARS, or the holders of any of their respective securities, each share of
capital stock of the FasTech Services, Inc. outstanding, immediately prior to
the Effective Time (defined herein, below), shall be converted into one
(1)  unit of EI membership units, one (1) unit of ESDD membership
units, one (1) share of capital stock of Alternatech, one (1) share of the
capital stock of AMI, one (1) share of capital stock of A&P and one (1)
share of the capital stock of RJP, whereby FasTech Services, Inc. shall be the
‘Surviving Entity,’ and
the shares of capital stock of the Surviving Entity so issued in such conversion
shall constitute the only outstanding shares of capital stock of the Surviving
Entity shall be a wholly owned subsidiary of SARS.”

    

    6.           Section 1.05 “Effective
Time” subsections (a) through (f) shall be stricken and replaced in its
entirety by the following:

    

    “At the
Effective Time and subject to and upon the terms and conditions of this Merger
Agreement, FasTech Services, Inc. shall, and SARS shall cause FasTech Services,
Inc., to merge with and into the Acquisition Entities (as defined in the
Agreement, or: EI, ESDD, Alternatech, AMI, A&P and RJP) in accordance with
the provisions of the Nevada Revised Statutes.  FasTech Services, Inc.
shall continue as the Surviving Entity.  The Effective Time shall
occur upon the filing with the Nevada Secretary of State, executed in accordance
with the applicable provisions of the Nevada Secretary of State, the Tennessee
Department of State and the Illinois Secretary of State, as
necessary.”

    

    7.           Section 1.10 “Employment
Agreements” shall be added to Article I of the Agreement with the
following:

    

    “Following
the Closing Date of the Merger Agreement, Frank Bonadio and Mark Swank shall
mutually agree to voluntarily terminate their existing employment agreements
with the Acquisition Entities and to and execute terms of employment with
SARS.”

    

    

    8.           Section 2.03
“Capitalization” subsection (b) shall be stricken and replaced in its
entirety by the following:

    

    “It is
acknowledged that as of the Closing Date, the individuals named, which shall be
disclosed on Schedule
2.03 and attached hereto prior to the Closing, collectively, will own of
record and beneficially up to approximately twenty four  million
(24,000,000) of the issued and outstanding SARS Common Shares, constituting
sixty percent (60%) of such shares.  Five million (5,000,000) SARS
Common Shares shall be reserved for issuance to as part of the employee stock
option plan for SARS. There exist no other outstanding rights, warrants, options
or agreements for the exchange of SARS Common or Preferred Shares except as
provided in this Merger Agreement.”

    

    9.           Section 3.02
“Capitalization” subsections (a) through (f) shall be revised, with
respect to issued and outstanding membership units or shares of common stock for
each entity, in accordance with the capitalization table included below,
otherwise the remainder of the existing language shall survive:

    

    
      	
              Acquisition
      Entity

            	
              Membership
      Unit/Common Stock Ownership by Mark Swank (75%), pre-merger closing
      date

            	
              Membership
      Unit/Common Stock Ownership by Frank Bonadio (25%), pre-merger closing
      date

            
	
              Environmental
      Insulation

            	
              100.00

            	
              33.33

            
	
              Associated
      Mechanical, Inc.

            	
              70.00

            	
              23.33

            
	
              Swank
      Enterprises

            	
              100,000.00

            	
              33.333.33

            
	
              R.J.
      Power, Plumbing & Heating

            	
              51.00

            	
              17.00

            
	
              Alternatech,
      Inc.

            	
              178.00

            	
              59.33

            
	 
      	 
      	 
      
	
              Total

            	
              100,399.00

            	
              36,466.32

            

    

    

    10.           Section 3.03 “Authority for
Merger Agreement” shall be stricken and replaced in its entirety by the
following:

    

    “The
execution, delivery and performance of this Merger Agreement by the Acquisition
Entities has been duly authorized by all necessary corporate action, and this
Merger Agreement constitutes the valid and binding obligation of the Acquisition
Entities, enforceable against the Acquisition Entities, in accordance with its
terms, except as enforceability may be affected by bankruptcy, insolvency or
other laws of general application affecting the enforcement of creditors'
rights.  The execution and consummation of the Merger contemplated by
this Merger Agreement and compliance with its provisions by the Acquisition
Entities will not violate any provision of Applicable Law and will not conflict
with or result in any breach of any of the terms, conditions, or provisions of,
or constitute a default under, the Acquisition Entities’ Certificates of
Incorporation or Bylaws, in each case as amended, or, to the Knowledge of the
Acquisition Entities, in any material respect, any indenture, lease, loan
agreement or other agreement instrument to which the Acquisition Entities are a
party to or by which it or any of them or any of its or their properties are
bound, or any decree, judgment, order, statute, rule or regulation applicable to
the Acquisition Entities.

    

    Notwithstanding
the above, SARS acknowledges that the transfer of shares of the Acquisition
Entities pursuant to the Closing of the Agreement may violate the terms of loan
agreements previously entered into by the Acquisition Entities.”

    

    11.  Section 3.07 “Governmental
or Third Party Consent” shall be stricken and replaced in its entirety by
the following:

    

    “No
consent, waiver, approval, order or authorization of, or registration,
declaration or filing with, any court, administrative agency or commission or
other federal, state, county, local or other foreign governmental authority,
instrumentality, agency or commission or any third party, including a party to
any agreement with the Acquisition Entities, is required by or with respect to
the Acquisition Entities in connection with the execution and delivery of this
Merger Agreement or the consummation of the Merger contemplated hereby, except
for such consents, waivers, approvals, orders, authorizations, registrations,
declarations and filings as may be required under (i) applicable securities
laws, (ii)  the Nevada General Corporation Law, the Illinois Business
Corporation Act of 1983 or the Tennessee Business Corporation Act; (iii)
existing lending institutions currently having the extension of credit to the
Acquisition Entities; (iv) Soy Capital Bank; (v) Associated Bank; (vi) SouthSide
Trust Bank; (vii) Citizens Bank of Cropsey; and (viii) the Internal Revenue
Service.”

    

    12.           Section 5.01 “Conditions
Precedent to the Parties’ Obligations” subsection (a) shall be stricken
and replaced in its entirety by the following:

    

    “Consents,
Approvals.  The Parties shall have obtained all necessary
consents and approvals of their respective boards of directors, and all
consents, approvals and authorizations required under their respective charter
documents, and all material consents, including any material consents and
waivers by the Parties’ respective lenders and other third parties, if
necessary, to the consummation of the transactions contemplated by this Merger
Agreement.  The Parties acknowledge and accept that consent to enter
this Merger Agreement was not sought or provided by: (i) Soy Capital Bank; (ii)
Associated Bank; (iii) Southside Trust Bank; (iv) Citizens Bank of Cropsey; and
(v) the Internal Revenue Service.”

    

    13.           Section 5.01 “Conditions
Precedent to the Parties’ Obligations” subsection (c) shall be stricken
and replaced in its entirety by the following:

    

    “Absence of Certain
Litigation.  Notwithstanding any actions brought by: (i) Soy
Capital Bank; (ii) Associated Bank; (iii) Citizens Bank of Cropsey; and (iv) the
Internal Revenue Service, no action or proceeding shall be threatened or pending
before any governmental entity or authority which, in the reasonable opinion of
counsel for the Parties, is likely to result in a restraint, prohibition or the
obtaining of damages or other relief in connection with this Merger Agreement or
the consummation of the transactions contemplated hereby.”

    

    14.           Section 5.02 “Employment
Agreement” subsection (i) shall be stricken in its entirety.

    

    15.           Section 5.03 “Employment
Agreement” (l) shall be stricken in its entirety.

    

    16.           Section 6.01 “Termination,
Unwinding” subsections (a) through (f) shall survive in their entirety,
and become subsections (b) through (g).  In addition, a new subsection
(a) shall be added to Section 6.01 with the following:

    

    “(a) At
any time whatsoever immediately upon and during the seven (7) years following
the Closing of this Merger Agreement, this Merger Agreement may be cancelled and
unwound by either of the Parties should any known or unknown third party
creditors of the Acquisition Entities present any act or action which would
jeopardize the ownership of the Acquisition Entities’ assets by SARS or the
ownership of SARS shares pursuant to this Merger Agreement by Mark Swank
individually.  In the event of cancellation and unwinding of this
Merger Agreement by either of the Parties, as provided herein, this Merger
Agreement shall forthwith become void and have no effect, without any liability
or obligation on the part of the Parties, and such cancellation and unwinding
shall not relieve any party hereto for any intentional breach prior to such
cancellation and unwinding by a party hereto of any of its representations or
warranties or any of its covenants or agreements set forth in this Merger
Agreement.  In the event of cancellation and unwinding of this Merger
Agreement, (i) the Acquisition Entities agree to make a good faith effort to
return all consideration tendered and delivered by SARS, as detailed in Section
1.01 of this Merger Agreement; and (ii) SARS agrees to return the Merger Shares
and the assets of the Acquisition Entities.”

    

    

    Except as
set forth herein, all other terms to the Agreement shall remain in full force
and effect.

     

    [Remainder of this page left
intentionally blank; signature page to follow]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    This
Amendment may be executed simultaneously in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     

    IN WITNESS WHEREOF, the Parties have
executed this Amendment on the date indicated above and agree that the effective
date of this Amendment shall be retroactively effective as of June 30,
2009.

    

    
      	
              SARS
      CORPORATION

            	 	 

    

    

     

    
      
        	
                By:

              	/s/ Geoff
      Meagher	 

      

      
        	
                Name:

              	
                Geoff
      Meagher

              
	Title: 	Interim
      Chairman and Chief Executive
Officer

    

    FASTECH
SERVCES, INC.

     

     

    
      
        	
                By:

              	/s/ Geoff
      Meagher	 

      

      
        	
                Name:

              	
                Geoff
      Meagher

              
	Title: 	Interim
      Chairman and Chief Executive
Officer

    

    ENVIRONMENTAL
INSULATION, LLC

    

    

    
      	
              By:

            	/s/ Mark
      Swank 	 

    

    
      	
              Name:

            	
              Mark
      Swank

            
	Title: 	Manager 

    

     

    

    

    ESDD,
LLC

     

     

    
      	
              By:

            	/s/ Frank
      Bonadio 	 

      
        	
                Name:

              	
                Frank
      Bonadio

              
	Title: 	Manager 

      

       

    

    

    ALTERNATECH,
INC.

    
 

    
      	
              By:

            	/s/ Frank
      Bonadio 	 

      
        	
                Name:

              	
                Frank
      Bonadio

              
	Title: 	President

      

    

    
    

    
    

    
    

    

    

    ASSOCIATED
MECHANICAL, INC.

    

     

    
      	
              By:

            	/s/ Frank
      Bonadio 	 

      
        	
                Name:

              	
                Frank
      Bonadio

              
	Title: 	President

      

    

     

    SWANK
ENTERPRISES, INC. d/b/a ART & PRINT, INC.

    

    

    
      	
              By:

            	/s/ Frank
      Bonadio 	 

      
        	
                Name:

              	
                Frank
      Bonadio

              
	Title: 	President

R.J.
POWER PLUMBING & HEATING COMPANY

    

    

    

    
      	
              By:

            	/s/ Frank
      Bonadio 	 

      
        	
                Name:

              	
                Frank
      Bonadio

              
	Title: 	President

         

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    Agreement
and Plan of Mergerex-10_5.htm

    Exhibit 10.5

      

      DATE                      1 July
2009

      

      

      

      

      

      

      

      TRILLIANT
EXPLORATION CORP

      

      

      

      

      

      

      

      

      

      

      

      

      ______________________________________________________________

      

      LOAN
NOTE INSTRUMENT

      CONSTITUTING

      TRILLIANT
EXPLORATION LOAN NOTES 2009

      ______________________________________________________________

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      GSC
Solicitors

      31-32 Ely
Place

      London  EC1N
6TD

      Tel:  020
7822 2222

      Fax:  020
7822 2211

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      CONTENTS

      

      

      1       DEFINITIONS
AND INTERPRETATION

      2       AMOUNT
AND STATUS OF LOAN NOTES

      3       INTEREST

      4       REDEMPTION
OF LOAN NOTES

      5       VOLUNTARY
EARLY REPAYMENT

      6       CHANGE
OF CONTROL

      7       DEFAULT
EVENTS

      8       TRANSFER

      9       CERTIFICATES

      10       REGISTER
OF THE LOAN NOTES

      11       WARRANTIES
AND UNDERTAKINGS

      12       MEETINGS

      13       NO
SET-OFF 

      14       AMENDMENT
OF INSTRUMENT

      15       COSTS
AND EXPENSES

      16       THIRD
PARTY RIGHTS

      17       GOVERNING
LAW AND JURISDICTION

      SCHEDULE
1 

      LOAN NOTE
CERTIFICATE

      SCHEDULE
2

      PROVISIONS
AS TO REGISTRATION, TRANSFER AND OTHER MATTERS

      SCHEDULE
3

      CONVERSION

      SCHEDULE
4

      PROVISIONS
FOR MEETINGS OF THE NOTEHOLDERS

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      THIS INSTRUMENT is made by way
of deed poll on 1 July 2009

       

      
        	
                BY:

              	
                Trilliant
      Exploration Corp a company registered under the laws of Nevada USA with
      company registration number 0001378948 and having its registered office at
      2300 West Sahara Avenue Suite 800, Las Vegas, NV 89102 United States of
      America the "Company").

              

      

       

      RECITAL:

       

      The
Company has agreed to create up to £1,500,000 loan notes (the "Loan Notes") identifiable as
the Trilliant Exploration Loan Notes 2009 and has determined to constitute and
issue the same on the terms set out below.

       

      
        	
                1

              	
                DEFINITIONS
      AND INTERPRETATION

              

      

       

      
        	
                1.1

              	
                Definitions

              

      

       

      The
following words have these meanings in this Instrument unless a contrary
intention appears;

       

      “Adjustment Event” means any or
all of the following, at any time, or by reference to any record date, while the
Notes remain in issue:

       

      
        	
                 
      

              	
                (a)

              	
                any
      allotment or issue of Equity Securities by the Company by way of
      capitalisation of profits or
reserves;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                any
      cancellation, purchase or redemption of Equity Securities, or any
      reduction or repayment of Equity Securities, by the
    Company;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                any
      sub-division or consolidation of Equity Securities by the Company;
      and

              

      

       

      
        	
                 
      

              	
                (d)

              	
                any
      issue of securities or other instruments convertible into shares in, or
      Equity Securities of, the Company or any grant of options, warrants or
      other rights to subscribe for, or call for the allotment or issue of,
      shares in, or Equity Securities of, the
Company,

              

      

       

      but
excluding any issue of Equity Securities of the Company pursuant to the exercise
of any options granted to employees or directors of the Company.

       

      “Aggregate Principal Amount”
means, in respect of the Loan Notes in issue at any time, the aggregate nominal
amount of the Loan Notes outstanding at that time together with all accrued
and/or capitalised interest;

       

      “Business Day” means a day
other than a Saturday or a Sunday on which banks are open for business in London
and times of such days shall be construed in accordance with the time then
prevailing in London;

       

      “Certificate” means a
certificate evidencing title of the Loan Notes, in the form, or substantially
the form, set out in Schedule 1;

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      “Change of Control Event” means
a person or group of persons acting in concert (the “Bidder”) making an offer for
50% or more of the issued Shares of the Company and such offer being declared
unconditional or the Bidder otherwise acquiring more than or controlling the
voting rights attached to 50% or above of the issued Shares of the
Company.

       

      “Commencement Date” means the
date of this Instrument;

       

       “Conversion Date” means the
date within 5 Business Days of receipt of Notice of Conversion by the
Company;

       

      “Conversion Price” means the
price of 45 cents per Share;

       

      “Default Event” has the meaning
given to that term in Clause 6.1;

       

      “Directors” means the Board of
Directors of the Company from time to time;

       

      “Equity Securities” has the
meaning given in section 94 of the Companies Act 1985;

       

      “Extraordinary Resolution” has
the meaning given to that term in paragraph 16 of Schedule 4;

       

       “Group Company” means the
Company, any parent company of the Company, and any subsidiary or subsidiary
undertakings of the Company or any such parent company, each of its parent
undertakings and each of its and their respective subsidiary undertakings and
“Group” shall be
construed accordingly;

       

       “Instrument” means this loan
note instrument;

       

      “Interest Rate” means 12% per
annum (or part thereof) for the remainder of the Term to be paid in accordance
with the provisions of paragraph 3 below;

       

      “Heads of Agreement” means the
heads of agreement entered into between the Charms Investments Limited and
Benbrack Charkit Limited whereby Benbrack Charkit Limited agreed to subscribe
for Loan Notes constituted under the terms of this Instrument to the value of
£1,500,000 in the Company;

       

      “Investor” means Benbrack
Charkit Limited being a party to the Heads of Agreement;

       

      “Loan Notes” means, as the
context requires:

       

      
        	
                 
      

              	
                (a)

              	
                the
      secured loan notes of the Company constituted by this Instrument pursuant
      to the terms of the Investment
Agreement;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      amount of the secured loan notes of the Company constituted by this
      Instrument then issued and outstanding and fully paid up (whether in one
      or more tranches); or

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (c)

              	
                a
      specific portion of the secured loan notes of the Company constituted by
      this Instrument or the monies represented by the secured loan notes of the
      Company constituted by this
Instrument;

              

      

       

      “Loan Note Subscription Date”
means the date on which the Loan Notes (or any of them) are subscribed and paid
for in cash by the Investor;

       

      “Noteholders” means the
person(s) for the time being entered in the Register as the holders of the Loan
Notes;

       

      “Notice of Conversion” means
notice of Conversion of Loan Notes in writing to be given at any time prior to
the expiry of the Term to the Company by Noteholders requiring conversion of
Loan Notes into Shares at the Conversion Price.

       

      “Register” means the register
of Noteholders maintained by the Company as provided for in Clause
9;

       

      “Registered Office” means the
registered office of the Company from time to time;

       

      “Repayment Date” means the date
fixed for repayment by the Noteholder(s) being 24 June 2010;

       

      “Share Charge” means the share
charge to be granted by the Company on or before the Commencement Date securing
the aggregate of the Loan Notes to be issued pursuant to the terms of this Loan
Note Instrument.

       

      “Shares” means the shares in
the capital of the Company in issue from time to time; and

       

      “Term” means the period from
the Commencement Date to the Repayment Date (or, if later, the date of repayment
of all of the Loan Notes);

       

      
        	
                1.2

              	
                Interpretation

              

      

       

      In this
Instrument, unless the contrary intention appears:

       

      
        	
                 
      

              	
                (a)

              	
                the
      singular includes the plural and vice versa and any gender includes any
      other gender;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                ‘person’
      includes a firm, a partnership, a body corporate, an unincorporated
      association or body, a state or agency of state, a trust or a foundation
      (whether or not having separate legal
  personality);

              

      

       

      
        	
                 
      

              	
                (c)

              	
                a
      reference to:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                a
      person includes that person’s heirs, executors, administrators,
      successors, and assigns;

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                a
      document means that document as amended, replaced or
    novated;

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (iii)

              	
                a
      statute or other law means that statute or other law as amended or
      replaced, whether before or after the date of this deed and includes
      regulations and other instruments made under
it;

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                a
      clause or schedule is a reference to a clause or a schedule in this
      Instrument;

              

      

       

      
        	
                 
      

              	
                (v)

              	
                a
      thing or an amount includes the whole and each part of
  it;

              

      

       

      
        	
                 
      

              	
                (vi)

              	
                a
      month means a calendar month; and

              

      

       

      
        	
                 
      

              	
                (vii)

              	
                a
      group of persons includes all of the collectively, any two or more
      collectively and each of them
individually;

              

      

       

      
        	
                 
      

              	
                (d)

              	
                where
      the word ‘including’ or ‘includes’ is used, it is to be taken to be
      followed by the words: ‘but not limited to’ or ‘but is not limited to’, as
      the case requires;

              

      

       

      
        	
                 
      

              	
                (e)

              	
                where
      a period of time is expressed to be calculated from or after a specified
      day, that day is included in the
period;

              

      

       

      
        	
                 
      

              	
                (f)

              	
                “Pounds
      Sterling” and “£” denote the lawful currency of the United
      Kingdom;

              

      

       

      
        	
                 
      

              	
                (g)

              	
                a
      reference to “date of redemption” means the date on which all the
      outstanding nominal amount and compounded and/or accrued interest on all
      the outstanding Loan Notes is finally paid;
and

              

      

       

      
        	
                 
      

              	
                (h)

              	
                The
      Investment Agreement shall be deemed to be incorporated into this
      Instrument.

              

      

       

      
        	
                1.3

              	
                Business
    Day

              

      

       

      If a
payment is due, or an event should occur, on a day that is not a Business Day,
the date for payment or the occurrence of the event is the next succeeding
Business Day.

       

      
        	
                1.4

              	
                Headings

              

      

       

      Headings
are inserted for convenience and do not affect the interpretation of this
Instrument.

       

      
        	
                2

              	
                AMOUNT
      AND STATUS OF LOAN NOTES

              

      

       

      
        	
                2.1

              	
                The aggregate nominal
      amount of the Loan Notes constituted by this Instrument is limited to
      £1,500,000 and shall be referred to as the Trilliant Exploration Loan
      Notes 2009.

              

      

       

      
        	
                2.2

              	
                The
      Company will issue the Loan Notes on the relevant Loan Note Subscription
      Date for cash at par (being £1.00 per Loan Note) in integral multiples of
      £1.00 in any number of tranches on the Subscription
  Date.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                2.3

              	
                Subject to this Instrument
      and the Schedules, the whole of the Loan Notes as and when issued shall
      rank pari passu equally and rateably without discrimination or preference
      and as an obligation of the Company secured by the grant of the Share
      Charge.

              

      

       

      
        	
                2.4

              	
                The
      Loan Notes issued under the terms of this Instrument shall be subordinated
      to $1.5m convertible loan notes issued to Trafalgar Capital Advisors and
      affiliates issued prior to the date of this Instrument save that the Share
      Charge shall rank as a first charge over the Secured Assets comprising
      shares in Global Diamond Resources
Plc.

              

      

       

      
        	
                3

              	
                INTEREST

              

      

       

      
        	
                3.1

              	
                Until the Loan Notes are
      redeemed or repaid in accordance with this Instrument, interest on the
      Aggregate Nominal Amount together with capitalised interest shall accrue
      at the Interest Rate.

              

      

       

      
        	
                3.2

              	
                All interest shall be
      capitalised, compounded and payable quarterly or upon payment or
      redemption of the Loan Notes;

              

      

       

      
        	
                3.3

              	
                Interest shall be
      calculated on the basis of the actual number of days elapsed for the
      relevant period.

              

      

       

      
        	
                4

              	
                REDEMPTION
      OF LOAN NOTES

              

      

       

      
        	
                4.1

              	
                The
      Company shall repay to the Noteholder the principal amount together with
      interest on the Loan Notes at the Interest Rate on the Repayment Date
      provided always that repayment shall not be required if the Loan Notes are
      converted in accordance with Schedule 3
hereto.

              

      

       

      
        	
                4.2

              	
                All
      Loan Notes redeemed by the Company pursuant to the terms of this
      Instrument will be cancelled and will not be available for
      reissue.

              

      

       

      
        	
                4.3

              	
                In
      the event that any income or other tax is deducted from a payment, the
      Company will issue to the Noteholder as soon as reasonably practicable a
      certificate of deduction of tax in respect of the tax deducted or
      withheld.

              

      

       

      
        	
                5

              	
                VOLUNTARY
      EARLY REPAYMENT

              

      

       

      
        	
                5.1

              	
                The
      Company may at any time, by giving the Noteholders not less than one
      month's written notice, repay all or a portion of the Loan Notes (such
      portion being the amount of £100,000 or integral multiples thereof) and
      immediately upon the expiration of such notice the Company shall repay the
      amount to the Noteholders specified in such notice (Specified
      Amount).

              

      

       

      
        	
                5.2

              	
                The
      Company shall also pay to the Noteholders all interest accrued due on the
      Specified Amount to the date of repayment of the Specified
      Amount.

              

      

       

      
        	
                5.3

              	
                Any
      payment in reduction in the amount of the Loan Notes under clause 5.1
      shall be made pro rata to all Noteholders in proportion to the outstanding
      amounts of the Loan Notes held by each of
them.

              

      

       

      
        	
                6

              	
                CHANGE
      OF CONTROL

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                6.1

              	
                The
      Company shall immediately notify the Noteholders in writing of a Change of
      Control Event (the “Notification”) and shall
      promptly disclose to the Noteholder all reasonably requested information
      in relation thereto.  Within 60 days of receipt of the
      Notification, each of the Noteholders shall be entitled by giving notice
      in writing to the Company to demand immediate repayment of the Aggregate
      Principal Amount of Loan Notes held by the
  Noteholder.

              

      

       

      
        	
                7

              	
                DEFAULT
      EVENTS

              

      

       

      
        	
                7.1

              	
                Without
      prejudice to Clauses 4 and 5 each Noteholder shall be entitled to require
      that all outstanding Loan Notes held by him are immediately repayable at
      par (with all accrued and/or capitalised interest) on the happening of any
      of the following events (each a “Default
      Event”):

              

      

       

      
        	
                 
      

              	
                (a)

              	
                the
      Company fails to repay any of the Loan Notes within 5 Business Days of the
      due date for redemption or payment thereof;
or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                if
      an order is made or an effective resolution passed for winding-up of the
      Company  (otherwise than for the purposes of or in the course of
      a solvent re-organisation, reconstruction or amalgamation previously
      approved by the Noteholder); or

              

      

       

      
        	
                 
      

              	
                (c)

              	
                if
      an encumbrancer has taken possession of or if a receiver, administrative
      receiver, liquidator, judicial factor or other similar officer is
      appointed to take possession of the whole or any material part of the
      property or undertaking of the Company and in any such case is not
      discharged, withdrawn or removed within 14 days of possession being taken
      or an appointment being made (excluding any period during which the
      possession or appointment is being contested in good faith);
      or

              

      

       

      
        	
                 
      

              	
                (d)

              	
                any
      administration order or any administration application has been made in
      respect of the Company; or

              

      

       

      
        	
                 
      

              	
                (e)

              	
                if
      the Company (otherwise than in the course of a reorganisation,
      reconstruction or amalgamation with another company in terms previously
      approved by the Noteholder) ceases or threatens to cease to carry on its
      business or a substantial part of its business;
  or

              

      

       

      
        	
                 
      

              	
                (f)

              	
                the
      Company is deemed to be unable to pay its debts as they fall due or is
      unable to pay its debts pursuant to or for the purposes of any applicable
      law; or

              

      

       

      
        	
                 
      

              	
                (g)

              	
                if
      a material default or breach is made by the Company in the performance or
      observance of any covenant or provisions (other than any covenant for the
      payment of the nominal amount on the Loan Notes) binding on it under the
      Loan Notes which has a material adverse effect on the Company (to be
      determined by the Noteholder acting reasonably and in good faith ) and, in
      the case of any default or breach which is capable of remedy, the Company
      fails to remedy the breach within the period of 10 days after receipt of a
      written request by the Noteholder;
or

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (h)

              	
                if
      the security constituted by any mortgage, charge or other security
      document of the Company becomes enforceable as a result of an event of
      default (other than an event of default arising out of a liability being
      contested in good faith) and the security holder takes steps to enforce
      the security;

              

      

       

      
        	
                 
      

              	
                (i)

              	
                if
      any warranty given by the Company pursuant to this Instrument proves to
      have been incorrect in any material respect;
or

              

      

       

      
        	
                 
      

              	
                (j)

              	
                there
      is a material breach of the terms of this
  Instrument.

              

      

       

      The
Company will immediately give notice to the Noteholder of the happening of any
Default Event upon becoming aware of the same.

       

      
        	
                8

              	
                TRANSFER

              

      

       

      The Loan
Notes shall be freely transferable (in multiples of not less than £1,000) in
accordance with the terms set out in Schedule 2.

       

      
        	
                9

              	
                CERTIFICATES

              

      

       

      
        	
                9.1

              	
                The
      Certificates will be in the form or substantially in the form set out in
      Schedule 1.

              

      

       

      
        	
                9.2

              	
                Every
      sole Noteholder is entitled without charge to receive one Certificate for
      the Loan Notes held by that
Noteholder.

              

      

       

      
        	
                9.3

              	
                Joint
      Noteholders are entitled to only one Certificate in respect of the Loan
      Notes held jointly by them.  Such Certificate will be delivered
      to the joint holder whose name stands first in the Register in respect of
      the joint holding or to another person as the joint holders direct in
      writing.

              

      

       

      
        	
                9.4

              	
                The
      Company is not bound to register more than 4 persons as joint holders of
      any Loan Notes.

              

      

       

      
        	
                9.5

              	
                Where
      part of a holding of Loan Notes has been transferred or redeemed the
      Company will issue, free of charge to the relevant Noteholder, a fresh
      Certificate for the balance of the Loan Notes retained by that
      Noteholder.

              

      

       

      
        	
                9.6

              	
                The
      Company will recognise the registered holder of any Loan Notes as the
      absolute owner of the Loan Notes.  The Company is not bound to
      take notice or see to the execution of any trust whether express, implied
      or constructive to which any Loan Notes may be
  subject.

              

      

       

      
        	
                9.7

              	
                The
      receipt of the registered holder for the time being of any Loan Notes or
      in the case of joint registered holders the receipt of any of them for any
      other monies payable in respect of the Loan Note is a good discharge to
      the Company, despite any notice it may have, whether express or otherwise,
      of the right, title, interest or claim of any other person to or in such
      Loan Notes or monies.

              

      

       

      
        	
                9.8

              	
                Every
      Noteholder, any of whose Loan Notes is due to be redeemed under any of the
      provisions of this Instrument, shall, not later than the due date for such
      redemption, deliver up to the Company (at its Registered Office) the
      Certificate(s) for the Loan

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                Notes
      which are due to be redeemed (or an indemnity in lieu thereof in a form
      acceptable to the Company where such Certificate(s) is lost, defaced or
      destroyed), in order that the same may be cancelled and, upon such
      delivery, the Company shall pay the relevant redemption amount to the
      Noteholder. If any Certificate so delivered includes any Loan Notes which
      are not to be redeemed at the time at which it is so delivered, the
      Company shall issue to the Noteholder, without charge, a new Certificate
      for the balance of such Loan Notes.

              

      

       

      
        	
                9.9

              	
                If
      any Noteholder, any of whose Loan Notes are liable to be redeemed under
      any of the provisions of this Instrument, shall fail or refuse to deliver
      up the Certificate(s) for such Loan Notes (or an indemnity in lieu thereof
      acceptable to the Company where such Certificate(s) is lost, defaced or
      destroyed) at the time and place fixed for the redemption of such Loan
      Notes, then the Company shall set aside the relevant amount due to that
      Noteholder, pay it into a separate interest-bearing bank account which
      shall be held by the Company in trust for such Noteholder (but without
      interest (save as may accrue in such account)) and such setting aside
      shall be deemed, for all purposes of these conditions, to be a payment to
      such Noteholder and the Company shall thereby be discharged from all
      obligations in connection with such Loan
Notes.

              

      

       

      
        	
                9.10

              	
                If
      the Company shall place such amount on deposit at a bank, the Company
      shall not be responsible for the safe custody of such amount or for any
      interest accruing on such amount in such
  account.

              

      

       

      
        	
                10

              	
                REGISTER
      OF THE LOAN NOTES

              

      

       

      
        	
                10.1

              	
                The
      Company will at all times keep at its Registered Office, or at such other
      place as the Company may have appointed for the purpose, a register
      showing:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                the
      nominal amount of the Loan Notes held by every
  Noteholder;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      serial number of each Loan Note
issued;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                the
      date of issue and all subsequent transfers and changes of ownership;
      and

              

      

       

      
        	
                 
      

              	
                (d)

              	
                the
      names and addresses of the
Noteholders.

              

      

       

      
        	
                10.2

              	
                Any
      Noteholder may at all reasonable times during office hours inspect the
      Register and take copies of or extracts from the
  Register.

              

      

       

      
        	
                10.3

              	
                The
      Register may be closed by the Company for such periods and at such times
      as it thinks fit but not more than 30 days in any calendar
      year.

              

      

       

      
        	
                10.4

              	
                Any
      change of name or address on the part of any Noteholder will be notified
      to the Company and the Register will be altered
    accordingly.

              

      

       

      
        	
                11

              	
                WARRANTIES
      AND UNDERTAKINGS

              

      

       

      
        	
                11.1

              	
                The
      Company undertakes to the Noteholder
that:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                it
      will perform and observe the obligations imposed on it by this
      Instrument;

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (b)

              	
                it
      will comply with the provisions of the Certificates and the provisions set
      out in Schedules 2 and 3;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                the
      Loan Notes are held subject to and with the benefit of the terms and
      conditions set out in this Instrument and are binding on the Company and
      the Noteholder and all persons claiming through or under
    them.

              

      

       

      
        	
                11.2

              	
                The
      Company warrants to the Noteholder as
follows:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                it
      is duly incorporated and validly existing under the laws of
      England;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                it
      has the power and authority to enter into this Instrument and to issue the
      Loan Notes and to exercise its rights and perform its obligations under
      this Instrument and the Loan Notes;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                it
      has taken all necessary corporate, shareholder and other action to
      authorise the execution, delivery and performance of this Instrument and
      the Loan Notes;

              

      

       

      
        	
                 
      

              	
                (d)

              	
                the
      obligations expressed to be assumed by it in this Instrument and the Loan
      Notes are, in each case, legal and valid obligations, binding on it in
      accordance with the terms of this Instrument and the Loan
      Notes;

              

      

       

      
        	
                 
      

              	
                (e)

              	
                that
      so far as the Company is aware, all consents, licences, approvals,
      authorisations, filings and registrations required in connection with the
      entry into, and performance of, this Instrument and the Loan Notes by it
      have been obtained and are in full force and
  effect;

              

      

       

      
        	
                 
      

              	
                (f)

              	
                the
      Company is not insolvent and no order has been made, petitioned or
      presented or resolution proposed for the appointment of a liquidator,
      administrator, receiver or similar officer over or in respect of the
      Company or any of its assets; and

              

      

       

      
        	
                 
      

              	
                (g)

              	
                the
      Company has been duly incorporated and is validly subsisting and in good
      standing under the laws of England and
Wales.

              

      

       

      
        	
                11.3

              	
                The
      Company acknowledges that the Noteholder is subscribing for the Loan Notes
      in reliance on each of the Warranties but not on the basis of any other
      information.

              

      

       

      
        	
                11.4

              	
                The
      Company agrees to notify the Noteholders as soon as reasonably practicable
      after it becomes aware of any material breach of any of the Warranties
      after the date of this Instrument.

              

      

       

      
        	
                11.5

              	
                While
      any of the Loan Notes remain outstanding, the Company undertakes that it
      will and will procure that all Group Companies
  will:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                not
      make a declaration or distribution of any dividend or distribute any
      capital or profits to shareholders without offering to the Noteholders the
      right to repayment of the Aggregate Principal
  Amount;

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (b)

              	
                save
      as required to comply with any change to legislation, amend, repeal,
      supplement or otherwise change its memorandum and articles in any
      manner  or

              

      

       

      
        	
                 
      

              	
                (c)

              	
                not
      sell, transfer, lease, assign or otherwise dispose of a material part of
      the undertaking, property, assets of the Company or of any Group Company,
      or contract to do so otherwise than in the ordinary course of
      business.

              

      

       

      
        	
                11.6

              	
                No
      application has been, or is intended to be, made to any listing authority,
      stock exchange or other market for the Loan Notes to be listed or
      otherwise traded.

              

      

       

      
        	
                12

              	
                MEETINGS

              

      

       

      Meetings
of Noteholders will be conducted in accordance with the provisions of Schedule
4.

       

      
        	
                13

              	
                NO
      SET-OFF

              

      

       

      Payments
under this Instrument will be paid by the Company to the Noteholders without
regard to any set-off, cross-claim or equities between the Company and the
Noteholders.

       

      
        	
                14

              	
                AMENDMENT
      OF INSTRUMENT

              

      

       

      This
Instrument may only be amended with the written consent of the Company and the
prior approval of the Noteholders given by an extraordinary resolution of the
Noteholders.

       

      
        	
                15

              	
                COSTS
      AND EXPENSES

              

      

       

      The
Company shall reimburse the Noteholders in respect of all reasonable expenses,
including, without limitation, legal fees (and any value added or similar tax
thereon) properly incurred by the Noteholders in connection with any actual or
proposed amendment or extension of, or any waiver or consent under, or the
enforcement or preservation of any of their respective rights under this
Instrument, or any of the documents referred to herein.

       

      
        	
                16

              	
                THIRD
      PARTY RIGHTS

              

      

       

      No person
other than a Noteholder shall have any right under The Contract (Rights of Third
Parties) Act 1999 to enforce any term of this Instrument.

       

      
        	
                17

              	
                GOVERNING
      LAW AND JURISDICTION

              

      

       

      
        	
                17.1

              	
                Governing
      Law

              

      

       

      This
Instrument is governed by the law of England and Wales.

       

      
        	
                17.2

              	
                Jurisdiction

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                The
      Company irrevocably submits to the exclusive jurisdiction of the courts of
      England and Wales as regards any claim, dispute or matter arising out of
      or in connection with this
Instrument.

              

      

       

      

      EXECUTED and DELIVERED as a deed poll on
the day and year first set out above.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      

       

      SCHEDULE
1

       

      LOAN
NOTE CERTIFICATE

       

      No. of Certificate
........................                                                                                        Amount of Loan
Notes £.....................

       

      Trilliant
Exploration Corp

       

      (the
“Company")

       

      (Registered
in Nevada)

       

      £1,500,000
Loan Notes 2009

       

      (the
“Notes”)

       

      This Loan
Note is issued under the authority of the Memorandum and Articles of Association
of the Company and pursuant to a Resolution of the Board of Directors of the
Company passed on ● and a Loan Note Instrument dated ●  (the “Instrument”).

       

      
        	
                 
      

              	
                Name
      and Address(es) of Noteholder: ●

              

      

       

      Amount of
Loan Notes:  £ ●

       

      Registration
Date: ●

       

      THIS IS TO CERTIFY THAT the
above Noteholder is the registered holder of the amount shown above of Notes
constituted by the Instrument. The Notes are issued subject to and with the
benefit of the provisions contained in the Instrument.

       

      EXECUTED
as a
DEED                     
)

       

      for and
on behalf
of                            )                                       Director

       

      Trilliant Exploration
Corp                )

       

      by:                                                         
)                             
Director/Secretary

       

      NOTES

       

      No
transfer or conversion of the whole or any part of the Loan Notes represented by
this Certificate can be registered or a new Certificate issued unless
accompanied by this Certificate or a certificate of indemnity in a form approved
by the Directors of the Company.

       

      Transfers
of Loan Notes should be lodged for registration with the Company at the
Company’s Registered Office.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      SCHEDULE
2

       

      PROVISIONS
AS TO REGISTRATION, TRANSFER AND OTHER MATTERS

       

      
        	
                1.

              	
                The
      Company will recognise the registered holder of any Loan Notes as the
      absolute owner of the Loan Notes.  The Company is not bound to
      take notice or see to the execution of any trust whether express, implied
      or constructive to which any Loan Notes may be
  subject.

              

      

       

      
        	
                2.

              	
                The
      receipt of the registered holder for the time being of any Loan Notes or
      in the case of joint registered holders the receipt of any of them for the
      interest accruing on or for any other monies payable in respect of the
      Loan Note is a good discharge to the Company, despite any notice it may
      have whether express or otherwise of the right, title, interest or claim
      of any other person to or in such Loan Notes, interest or
      monies.

              

      

       

      
        	
                3.

              	
                The
      Loan Notes are transferable by written instrument in any usual or common
      form (or in such other form as the Directors may
      approve).  Subject to compliance with the terms of the Loan
      Notes, the Directors are bound to approve and arrange registration of a
      transfer of Loan Notes pursuant to this paragraph
  3.

              

      

       

      
        	
                4.

              	
                Every
      instrument of transfer accompanied by the Certificate for the Loan Notes
      to be transferred must be left for registration with the Company at its
      Registered Office and every transfer will be processed in a manner
      approved by the Directors.

              

      

       

      
        	
                5.

              	
                The
      transferor must sign every instrument of transfer.  The
      transferor is deemed to remain the owner of the Loan Notes to be
      transferred until the name of the transferee is entered in the
      Register.

              

      

       

      
        	
                6.

              	
                No
      fee may be charged for the registration of any transfer or for the
      registration of any other document relating to or affecting the title to
      any Loan Notes.

              

      

       

      
        	
                7.

              	
                Any
      person who becomes entitled to any of the Loan Notes as a result of the
      death or bankruptcy of any Noteholder, or of any other event giving rise
      to the transmission of such Loan Notes by operation of law may, upon
      producing such evidence that he sustains the character in respect of which
      he proposes to act under this condition or of his title as the Directors
      shall think sufficient be registered himself as the holder of such Loan
      Notes or, subject to the preceding conditions as to transfer, may transfer
      such Loan Notes.  The Company may retain any payments paid upon
      any such Loan Notes which any person under this provision is entitled to
      transfer until such person is registered or has duly transferred the Loan
      Notes.

              

      

       

      
        	
                8.

              	
                Any
      nominal amount, interest or other monies payable in respect of the Loan
      Notes may be paid by cheque or warrant sent through the post at the risk
      of the holder to:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                the
      registered address of the holder;
or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                in
      the case of joint registered holders, to the registered address of the
      first joint registered holder named on the Register;
  or

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (c)

              	
                to
      such person and to such address as the registered holder or the joint
      registered holders may direct in
writing.

              

      

       

      
        	
                9.

              	
                Every
      such cheque or warrant must be made payable to the person to whom it is
      sent and payment of the cheque or warrant by the bank upon which it is
      drawn is a satisfaction of the monies being
  paid.

              

      

       

      
        	
                10.

              	
                If
      any Certificate is defaced, lost or destroyed it may be replaced on such
      terms (if any) as to evidence and indemnity as the Directors reasonably
      require.  In the case of defacement the defaced Loan Note must
      be surrendered before the new Certificate is
  issued.

              

      

       

      
        	
                11.

              	
                Any
      notice or other communication to be given under this Instrument must be in
      writing and will be served by delivering it personally or sending it by
      pre-paid recorded delivery or registered post or by facsimile to the
      address and for the attention of the relevant party as notified by that
      party.  Any notice will be deemed to have been
      received:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                if
      delivered personally, at the time of
delivery;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                in
      the case of pre-paid recorded delivery or registered post, 48 hours from
      the date of posting;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                in
      the case of registered airmail within 3 Business Days of the date of
      posting; and

              

      

       

      
        	
                 
      

              	
                (d)

              	
                in
      the case of fax, at the time of
transmission.

              

      

       

      If deemed
receipt occurs before 9 am on a Business Day the notice is deemed to have been
received at 9 am on that day and if deemed receipt occurs after 5 pm on a
Business Day, the notice is deemed to have been received at 9 am on the next
Business Day. The addresses and facsimile numbers of the parties for the
purposes of the Instrument are in the case of the Noteholders as set out in the
Register from time to time or such other address or facsimile number as may be
notified in writing by the Company to the Noteholders from time to
time.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      SCHEDULE
3

       

      CONVERSION

       

      
        	
                1.

              	
                Conversion
      of the Loan Notes pursuant to this Schedule 3 shall take place at the sole
      discretion of individual Noteholders giving Notice of Conversion to the
      Company. For the avoidance of doubt, in the event that Notice of
      Conversion is not delivered in respect of any Loan Notes issued pursuant
      to this Instrument the provisions of this Schedule 3 shall not be
      applicable and all of the outstanding Loan Notes shall remain outstanding
      and repayable or redeemable by the Company in accordance with the terms of
      this Instrument.

              

      

       

      
        	
                2.

              	
                All
      outstanding and fully paid Loan Notes shall convert on receipt of Notice
      of Conversion into fully paid Shares of the class set out below at the
      Conversion Price, (subject to any Adjustment Event), and otherwise in
      accordance with the terms of this Schedule 3 within 5 Business Days of the
      date of Receipt of Notice of Conversion by the
  Company.

              

      

       

      
        	
                3.

              	
                Conversion
      of the Loan Notes shall be effected by the Company redeeming the relevant
      Loan Notes on the Conversion Date. Each Noteholder whose Loan Notes are
      being converted shall be deemed to irrevocably authorise and instruct the
      Company to apply the redemption moneys payable to that Noteholder in
      subscribing for Shares at the Conversion Price on conversion of the Loan
      Notes.

              

      

       

      
        	
                4.

              	
                Shares
      arising on conversion of the Loan Notes shall be issued and allotted by
      the Company on the Conversion Date and the certificates for such Shares
      shall be despatched to the persons entitled to them at their own
      risk.

              

      

       

      
        	
                5.

              	
                The
      Shares arising on conversion of the Loan Notes shall be credited as fully
      paid and rank pari passu with Shares of the same class in issue on the
      Conversion Date and shall carry the right to receive all dividends and
      other distributions declared after the Conversion
  Date.

              

      

       

      
        	
                6.

              	
                The
      entitlement of each Noteholder to a fraction of a Share shall be rounded
      to the nearest whole number of Shares which result from the conversion of
      the Loan Notes.

              

      

       

      
        	
                7.

              	
                The
      Company undertakes that, while the Loan Notes remain in issue, it shall
      (pending either the payment of any redemption moneys in respect of the
      Loan Notes or the issue of the Shares on conversion, each in accordance
      with the provisions of this
Instrument):

              

      

       

      
        	
                 
      

              	
                (a)

              	
                notify
      each Noteholder in writing as soon as reasonably practicable after the
      relevant board or general meeting of shareholders (whichever is the
      earliest) has resolved to implement an Adjustment Event specifying the
      prospective date of the Adjustment Event and the proposed terms of it;
      and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                maintain
      sufficient authorised but unissued equity share capital in the Company to
      satisfy in full, without the need for the passing of any further
      resolutions of its shareholders, the rights of conversion to be attached
      to the Loan Notes;

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                8.

              	
                Following
      an Adjustment Event, the professional advisors or auditors of the Company
      for the time being shall certify to the Company in writing the adjustments
      to the number and nominal value of the Shares to be converted which they
      consider to be necessary so that, after such adjustment and on conversion,
      the Noteholders shall be entitled to receive the same percentage of the
      issued share capital of the Company carrying the same proportion of votes
      exercisable at a general meeting of shareholders and the same entitlement
      to participate in distributions of the Company, in each case as nearly as
      practicable, as would have been the case had no Adjustment Event occurred
      (and making such reduction or increase as is necessary to the premium
      arising on the issue and allotment of the Shares on conversion of the Loan
      Notes). The Company shall then notify the Noteholders in writing of the
      necessary adjustment as determined by the professional advisors or
      auditors.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      SCHEDULE
4

       

      PROVISIONS
FOR MEETINGS OF THE NOTEHOLDERS

       

      
        	
                1.

              	
                The
      Company may at any time, and will upon a written request signed by the
      registered holders of not less than 10% in nominal value of the Loan Notes
      for the time being outstanding, convene a meeting of the Noteholders by
      giving at least 14, and not more than 21, days notice and specifying the
      place, day and hour of the meeting.  Any such notice will
      specify the general nature of the business to be transacted at the meeting
      convened but, except in the case of a resolution to be proposed as an
      Extraordinary Resolution, it is not necessary to specify the terms of any
      resolutions to be proposed.  The non-receipt of notice or the
      accidental omission to give notice to any Noteholder does not invalidate
      any resolution passed at any such
meeting.

              

      

       

      
        	
                2.

              	
                In
      the case of a meeting convened by the Company, a Noteholder nominated by
      the Company is entitled to take the chair at every such meeting and, in
      the case of a meeting convened by the Noteholders, the Noteholders present
      will choose one of their number to be Chairman.  The Directors
      and officers of the Company and any other person authorised in that behalf
      by the Directors may attend any such meeting and speak but not
      vote.

              

      

       

      
        	
                3.

              	
                At
      any such meeting convened, at least 2 persons holding or representing by
      proxy greater than 50% in nominal amount of the Loan Notes for the time
      being outstanding shall form a quorum.  No business (other than
      the choosing of a Chairman) may be transacted at any meeting unless the
      requisite quorum is present at the commencement of
    business.

              

      

       

      
        	
                4.

              	
                If
      within 15 minutes from the time appointed for any meeting of the
      Noteholders a quorum is not present the meeting, if convened upon the
      requisition of the Noteholders, will be dissolved.  In any other
      case it will stand adjourned to such day and time (being not less than 14
      days or more than 21 days later) and to such place as may be appointed by
      the Chairman.  At such adjourned meeting at least 2 persons
      holding or representing by proxy greater than 50% in nominal amount of the
      Loan Notes for the time being outstanding shall form a quorum provided
      that at least 7 days notice was given of such adjourned
      meeting.

              

      

       

      
        	
                5.

              	
                Every
      question submitted to a meeting of Noteholders is decided in the first
      instance on a show of hands.

              

      

       

      
        	
                6.

              	
                At
      any meeting of Noteholders (unless a poll is demanded by the Chairman or
      by one or more Noteholders present in person or by proxy and holding or
      representing in the aggregate not less than 5% in nominal amount of the
      Loan Notes then outstanding) a declaration by the Chairman that a
      resolution has been carried, or carried by a particular majority, is
      conclusive evidence of the fact.

              

      

       

      
        	
                7.

              	
                If
      at any meeting a poll is demanded it will be taken in such manner and
      either at once or after such adjournment as the Chairman directs and the
      result of such poll is deemed to be the resolution of the meeting at which
      the poll was demanded.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                8.

              	
                Any
      poll demanded at any meeting on the election of a Chairman or on any
      question of adjournment must be taken at the meeting without
      adjournment.

              

      

       

      
        	
                9.

              	
                The
      registered holders of any of the Loan Notes or in the case of joint
      holders any of them are entitled to vote in respect of such Loan Notes
      either in person or by proxy and in the latter case as if such joint
      holder were solely entitled to such Loan Notes.  If more than
      one joint holder is present at any meeting either personally or by proxy
      the vote of the senior who tenders a vote (seniority being determined by
      the order in which the joint holders are named in the Register) will be
      accepted to the exclusion of the votes of the other joint
      holders.

              

      

       

      
        	
                10.

              	
                Every
      instrument appointing a proxy must
be:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                in
      writing signed by the appointer or their attorney or in the case of a
      corporation by a director, secretary or authorised representative of the
      corporation; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                in
      any usual or common form or in such other form as the Directors
      approve.

              

      

       

      
        	
                11.

              	
                Such
      instrument of proxy, unless the contrary is stated, is valid as well for
      an adjournment of the meeting as for the meeting to which it relates and
      need not be witnessed.  A proxy need not be a
      Noteholder.

              

      

       

      
        	
                12.

              	
                The
      instrument appointing a proxy and the power of attorney or other authority
      (if any) under which it is signed (or a certified copy of such power of
      attorney or authority) must be deposited at the Registered Office of the
      Company at least 48 hours before the time appointed for holding the
      meeting or adjourned meeting at which the person named in the instrument
      proposes to vote, in default of which the instrument of proxy is
      invalid.  A vote given in accordance with the terms of an
      instrument appointing a proxy is valid despite the death or insanity of
      the principal or revocation of the instrument of proxy or of the authority
      under which the instrument of proxy is given or transfer of the Loan Notes
      in respect of which it is given unless previous written notice of such
      death, insanity, revocation or transfer has been received at the
      Registered Office.

              

      

       

      
        	
                13.

              	
                On
      a show of hands every Noteholder who (being an individual) is present in
      person or (being a corporation) is present by a representative has one
      vote and on a poll every Noteholder present in person or by a
      representative or by proxy has one vote for every £1.00 nominal amount of
      the Loan Notes (rounded down to the nearest Pound Sterling) of which they
      are the holder.

              

      

       

      
        	
                14.

              	
                A
      meeting of the Noteholders may by Extraordinary Resolution and with the
      consent of the Company sanction any modification or compromise in any
      respect of:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                the
      provisions of the Instrument; or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      rights of the Noteholders as Noteholders against the Company, whether such
      rights arise under the Instrument or otherwise;
  or

              

      

       

      
        	
                 
      

              	
                (c)

              	
                postponing
      or advancing the time for the payment of the nominal moneys or interest
      payable in respect of the Loan Notes;
or

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                (d)

              	
                reducing
      the rate of interest or for the capitalisation of interest;
    or

              

      

       

      
        	
                 
      

              	
                (e)

              	
                the
      exchange of Loan Notes for other securities of the Company or any other
      company formed or to be formed; and

              

      

       

      
        	
                 
      

              	
                (f)

              	
                may
      assent to any modification proposed by the Company to the provisions
      contained in the Instrument.

              

      

       

      
        	
                15.

              	
                An
      Extraordinary Resolution is binding upon all the Noteholders whether
      present or not present at such meeting and each of the Noteholders is
      bound to give effect to any such Extraordinary Resolution.  The
      passing of any such resolution is conclusive evidence that the
      circumstances justify the passing of such
  resolution.

              

      

       

      
        	
                16.

              	
                The
      expression "Extraordinary Resolution" means a resolution
      passed:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                at
      a meeting of the Noteholders convened and held in accordance with these
      provisions; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                by
      a majority consisting of not less than 75% of the persons present and
      entitled to vote, voting upon a show of hands, or if a poll is demanded
      then by a majority consisting of not less than 75% of the votes given on
      such poll.

              

      

       

      
        	
                17.

              	
                A
      written resolution signed by the holders of 90% in nominal amount of the
      Loan Notes for the time being outstanding who are entitled to receive
      notice of meetings in accordance with these provisions is valid and
      effective as an Extraordinary Resolution. Such written resolution may be
      contained in one document or in
counterparts.

              

      

       

      
        	
                18.

              	
                Any
      Noteholder or their proxy or representative may validly participate in a
      meeting of the Noteholders by conference telephone or other form of
      communication equipment if all persons participating in the meeting are
      able to hear and speak to each other throughout the meeting.  A
      person so participating is deemed to be present in person at the meeting
      and is counted in the quorum and is entitled to vote.  Such a
      meeting is deemed to take place where the largest group of those
      participating is assembled or, if there is no group which is larger than
      any other group, where the chairman of the meeting
  is.

              

      

       

      
        	
                19.

              	
                Minutes
      of all resolutions and proceedings at every meeting will be made and
      entered in books provided by the Company. Any such Minutes purporting to
      be signed by the Chairman of the meeting at which such resolutions were
      passed or proceedings held or by the Chairman of the next succeeding
      meeting of the Noteholders is conclusive evidence of the matters contained
      in such minutes until the contrary is proved. Every such meeting in
      respect of the proceedings of which Minutes have been signed is deemed to
      have been duly convened and held and all resolutions passed at such
      Meeting to have been duly
passed.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      EXECUTED and DELIVERED as a deed on the
date first above written.

       

      for and
on behalf
of                         )

       

      Trilliant Exploration
Corp            
)

       

      By:                                                      )

       

      

       

      /s/ William R.
Lieberman,  Director

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