Document:

exv4w5

 

EXHIBIT 4.5

THE WARRANT CONTRACT DATED JULY 2, 2002.

WARRANT

THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE BEEN
ISSUED IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933 (THE “1933 ACT”), AND APPROPRIATE EXEMPTIONS FROM REGISTRATION UNDER
THE SECURITIES LAWS OF OTHER APPLICABLE JURISDICTIONS. THE SECURITIES MAY NOT BE
OFFERED FOR SALE, SOLD OR TRANSFERRED OTHER THAN PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER THE 1933 ACT OR AN EXEMPTION FROM REGISTRATION UNDER THE
1933 ACT AND THE APPLICABLE SECURITIES LAWS OF ANY OTHER
JURISDICTION. THE ISSUER SHALL BE ENTITLED TO REQUIRE AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO IT WITH RESPECT TO COMPLIANCE WITH THE 1933 ACT AND APPLICABLE
SECURITIES LAWS OF ANY OTHER JURISDICTION.

Right to Purchase

Common Stock

of

BINGO.COM, INC.

     Bingo.com, Inc., a Florida corporation (the “Company”), hereby certifies
that, for value received, (HOLDER NAME) (the “Holder”), or its permitted
successors or assigns, is entitled, subject to the terms set forth below, to
purchase from the Company at any time or from time to time until 5:00 p.m.
Eastern Standard Time on the second (2nd) anniversary of the date hereof (the
“Expiration Date”) (Number of warrants) fully paid and nonassessable shares
(“the “Shares”) of common stock of the Company (“Common Stock”) at a purchase
price per share equal to $0.25 per Share (the “Purchase
Price”). The number of Warrants and the per-share Purchase Price are subject to adjustment.

     This Warrant is issued pursuant to and is contemplated by that certain
Convertible Debenture, dated as of July 2, 2002 (the “Debenture”), between the
Company and the Holder, a copy of which is on file at the principal office of
the Company.

     1.     Exercise and Term of Warrant.

     (a)  The purchase rights represented by this Warrant may be exercised by
the Holder in whole or in part by the surrender of this Warrant to the Company
at its principal office, at Suite #1405, Alberni St., Vancouver, B. C., Canada,
V6E 3Z3 along with a written notice stating that the Holder intends to purchase
all or a specified number of the Shares issuable pursuant to this Warrant
together with payment of the Purchase Price for the Shares then
purchased. Such payment will be made, at the option of the Holder, by certified or official
bank check payable to the order of the Company in same day funds, or by wire
transfer of same day funds to an account designated by the Company for such
purpose. If the number of Shares then purchased is less than the total number of
Shares then issuable upon exercise of this Warrant, the Company will cancel
this Warrant upon surrender and will execute and deliver a new Warrant of like
tenor and date for the balance of the number of remaining Shares issuable upon
the exercise of this Warrant. As promptly as practicable after such surrender of
this Warrant, the Company will issue and deliver to the Holder, at the address
appearing in the books of the Company or otherwise designated by Holder, a
certificate or certificates for the applicable number of Shares
purchased. Certificates representing Shares purchased pursuant to this Warrant
will bear restrictive legends substantially similar to those at the beginning
of this Warrant.

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     (b)  This Warrant will expire and be of no further force and effect upon
the earlier of (A) the time when it has been exercised with respect to all
Shares which the Holder is or may become entitled to purchase hereunder, or (B)
on the Expiration Date.

     3.     Reservation
of Shares; Validity of Issuance. The Company covenants and
agrees that it will reserve for issuance and keep available out of its
authorized but unissued Common Stock, free from preemptive rights, such number
of Shares for which this
Warrant is from time to time exercisable. The Company represents and
warrants that all Shares issued upon the exercise of this Warrant will, upon
issuance, be fully paid and nonassessable and free from all taxes, liens,
charges or other type of encumbrance in respect of their issuance. The Shares of
Common Stock issuable on the exercise of this Warrant will be “restricted
securities” (as hereinafter defined) and may be resold in the United States
publicly only following their effective registration under the 1933 Act, or
based upon an available exemption from the registration requirements of that
Act, such as Rule 144.

     4.     Adjustments
for Merger, Consolidation or Sale of Assets. The Purchase
Price and the number of Warrants will be subject to adjustment from time to
time as hereinafter set forth. In the event of any reorganization,
reclassification or any consolidation or merger of the Company with or into any
other company or entity, or the sale of all or substantially all of its assets
to another corporation (each, a “Reorganization”), the Holder will have the
right to purchase and receive, upon the basis and upon the terms and conditions
specified in this Warrant and in lieu of the Shares then purchasable and
receivable upon the exercise of the rights represented by this Warrant, the
kind and number of shares of stock, securities, assets or other property
(including cash) of the Company, or such other corporation resulting from such
consolidation or surviving such merger, the number of shares of such stock then
purchasable and receivable upon the exercise of the rights represented by this
Warrant immediately prior to such Reorganization to which the Holder would have
been entitled to receive with respect to such Reorganization. In any such case
appropriate provision will be made in the application of the provisions herein
set forth with respect to the rights and interests thereafter of the Holder to
the end that the provisions herein set forth will thereafter be applicable, as
nearly as reasonably may be, in relation to any shares, other securities,
assets or property thereafter deliverable upon the exercise of this Warrant. In
the event of a consolidation or merger of the Company as a result of which a
greater or lesser number of shares of common stock of the surviving corporation
are issuable to holders of Common Stock of the Company outstanding immediately
prior to such consolidation or merger, the Purchase Price in effect immediately
prior to such consolidation or merger will be adjusted in the same manner as
though there were a split or combination of the outstanding shares of Common
Stock of the Company. If the Company effects any Reorganization, forthwith after
the consummation of such Reorganization the successor corporation (if other
than the Company) resulting from such Reorganization will assume by written
instrument executed and delivered to the Holder at the address of the Holder
appearing on the books of the Company, or to such other place as may be
designated by the Holder in writing to the Company, the obligation to deliver
to the Holder such shares, securities, assets or property as, in accordance
with the provisions of this Section 4, the Holder may be entitled to
purchase. The provisions of this Section 4 will similarly apply to successive
Reorganizations during the term of this Warrant.

     5.     Adjustments for Stock Splits and Combinations. If the Common Stock is
subdivided into a greater number or a dividend in Common Stock or other
securities of the Company convertible or exchangeable into Common Stock (in
which latter event the number of shares of Common Stock issuable upon the
conversion or exchange of such securities will be deemed to have been
distributed), will be paid in respect to the Common Stock, the number of Shares
which may be acquired by the Holder upon the exercise of this Warrant and the
Purchase Price will, simultaneously with the effectiveness of such subdivision,
additional issue or immediately after the record date of such dividend, be
proportionately adjusted (that is, the number of shares purchasable upon
exercise of the Warrant will be proportionately increased, and the Purchase
Price per share will be proportionately decreased), and conversely, if the
outstanding Common Stock will be combined into a smaller number of shares, the
number of Shares of Common Stock which may be acquired by the Holder upon the
exercise of this Warrant and the Purchase Price will, simultaneously with the
effectiveness of such combination, be proportionately adjusted (that is, the
number of shares subject to the Warrant will be proportionately decreased, and
the Purchase Price per share will be proportionately increased).

     6.     Notice
of Certain Events. If, at any time:

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	 	(i)	 	the Company declares or pays any dividend or makes
any distribution to the holders of its Common Stock;
	 
	 	(ii)	 	there is a Reorganization of the Company;
	 
	 	(iii)	 	there is a voluntary or involuntary dissolution, liquidation or winding up of the Company; or
	 
	 	(iv)	 	there is an adjustment to the Purchase Price pursuant to Section 4 or Section 5;

then, in any one or more of the above cases, the Company will give written
notice, by first class mail, postage prepaid, telecopier, or overnight
delivery, addressed to the Holder at the address of the Holder as shown on the
books of the Company on the date on which (i) the books of the Company will
close or a record will be taken for such dividend or distribution or (ii) such
Reorganization,
dissolution, liquidation or winding up will take place, as the case may be. Such
notice will also specify the date as of which the holders of Common Stock of
record will participate in said dividend, or distribution, or will be entitled
to exchange their Common Stock for securities or other property deliverable
upon such Reorganization, dissolution, liquidation or winding up, as the case
may be. If pursuant to subsection (iv) above, such notice will state the
Purchase Price resulting from such adjustment, setting forth in reasonable
detail the method of calculation and the facts upon which such calculation is
based. Such written notice will be given not less than 30 days prior to the
record date or the date on which the transfer books of the Company are closed
in respect to such record date or prior to the action in question. Any notices
given pursuant to this Section 6 will be effective and deemed received upon the
date of actual receipt or upon the fifth calendar day subsequent to deposit in
the United States mail (or other comparable mail system), whichever is earlier.

     7.     No Impairment. The Company will not, by amendment of its charter or
bylaw documents or through any Reorganization, transfer of assets, dissolution,
issue or sale of securities or any other voluntary action, invalidate or seek
to avoid the observance or performance of any of the terms to be observed or
performed by the Company under this Warrant, but will at all times in good
faith assist in the carrying out of all the provisions of Sections 3 through 6
and in the taking of all such action as may be necessary or appropriate in
order to protect the rights of the Holder.

     8.     No
Voting Rights. This Warrant will not entitle the Holder to any voting
rights or other rights as a shareholder of the Company, and no dividend or
interest will be payable or accrue in respect of this Warrant or the interest
represented by or the Shares purchasable under this Warrant until and unless,
and except to the extent that, this Warrant is exercised.

     9.     Stock Certificates. The Company will issue stock certificates upon the
exercise of this Warrant without charge to the Holder for any tax (other than
taxes attributable to any difference between the fair market value and the
exercise price of this Warrant on the date of the exercise of this Warrant or
transfer taxes resulting from issuance of stock certificates to a person other
than the Holder) in respect of the issuance of such stock. The Holder will be
deemed to have become the holder of record of the Shares issued upon exercise
of this Warrant on the date on which the Warrant was surrendered and payment of
the Warrant Price was made, if the Shares are indeed issued in the name of and
to the Holder, regardless of the date of delivery of the certificate for such
Shares, except that, if the date of such surrender and payment is a date when
the stock transfer books of the Company are closed, the Holder will be deemed
to have become the holder of such Shares at the close of business on the next
succeeding date on which the stock transfer books are open.

     10.     Lost, Stolen, Mutilated or Destroyed Warrant. Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, mutilation or
destruction of this Warrant, and in case of loss, theft or destruction, upon
the agreement of the Holder to indemnify the Company, or in the case of
mutilation, upon surrender and cancellation of this Warrant, the Company will
issue a new Warrant of like denomination and tenor as the Warrant so lost,
stolen, mutilated or destroyed.

     11.     Transferability. This Warrant may not be transferred or assigned, in
whole or in part, without the prior written consent of the Company. Any such
approved transfer must be in accordance with applicable federal and state
securities laws. Such approved transfer will be registered on the books of the
Company maintained for

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such purpose, upon surrender of this Warrant. Upon such
surrender, the Company will execute and deliver a new Warrant or Warrants in
the name of the assignee or assignees and in the denomination specified in such
instrument of assignment, and will issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant will
promptly be cancelled. A Warrant may be exercised by a new Holder for the
purchase of shares of Common Stock without having a new Warrant issued.

     12.     Representations and Warranties of Holder. The Holder hereby represents
and warrants that:

     (a)  Purchase Entirely for Own Account. This Warrant and the underlying
Shares issuable upon exercise hereof (collectively, the “Securities”) will be
acquired for investment for Holder’s own account, not as a nominee or agent,
and not with a view to the resale or distribution of any part thereof, and the
Holder has no present intention of selling, granting any participation in, or
otherwise distributing the same. As of the date hereof, the Holder does not have
any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to any person with respect to any of the
Securities. The Holder represents that it has full power and authority to enter
into this Warrant.

     (b)  Investment Experience. Holder acknowledges that it is able to protect
its own economic interests, can bear the economic risk of its investment and
has such knowledge and experience in financial or business matters that it is
capable of evaluating the merits and risks of the investment in the
Securities. The Holder also represents that it has not been organized for the
purpose of acquiring the Securities.

     (c)  Intentionally deleted

     (d)  Restricted Securities. The Holder understands and acknowledges that the
Securities are characterized as “restricted securities” under the 1933 Act
inasmuch as they are being acquired from the Company in a transaction not
involving a public offering, and that under the 1933 Act such securities may be
resold without registration under the 1933 Act only in certain limited
circumstances. In this connection, the Holder represents that it is familiar
with Rule 144 promulgated under the 1933 Act and understands the resale
limitations imposed thereby and by the 1933 Act.

     (e)  Further Limitations on Disposition. Without in any way limiting the
representations and warranties set forth above, the Holder further agrees not
to make any disposition of all or any portion of the Securities unless and
until (i) there is then in effect a registration statement under the 1933 Act
covering such proposed disposition and such disposition in made in accordance
with such registration statement, or (ii)(A) such Holder will have notified the
Company of the proposed disposition and will have furnished the Company with a
detailed statement of the circumstances surrounding the proposed disposition,
and (B) such Holder will have furnished the Company with an opinion of counsel,
reasonably satisfactory to the Company and its counsel, that such disposition
will not require registration of such shares under the 1933 Act.

     13.     Applicable Law. This Warrant will be governed by and construed in
accordance with the internal laws of the State of Florida, without regard to
its principles of conflicts of laws.

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     IN WITNESS WHEREOF, the Company’s duly authorized officer has executed
this Warrant as of the 2nd day of July, 2002.

	 	 	 
	 	BINGO.COM, INC.
	 	 
	  	By:	 
	 	 	

        Name:

        Title:

     The undersigned is executing this Warrant solely for the purposes of
Section 12 of this Agreement, as of the date first written above.

	 	 	 
	 	 
	  	(HOLDER NAME)
	 	 
	 	By:	 
	 	 	

        Name:

        Title:

-38-exv10w28

 

EXHIBIT 10.28

THE SHARE PURCHASE AGREEMENT FOR THE ACQUISITION OF BINGO.COM (UK) PLC DATED
AUGUST 15, 2002.

SHARE PURCHASE AGREEMENT

THIS AGREEMENT made as of the 15th day of August, 2002.

	 	 	 
	BETWEEN:	 	 
	 	 	
T.M. WILLIAMS, a businessman, residing at 203 Shakespeare Tower, The
Barbican, London, EC2Y 8DR, United Kingdom.
	  	 	 
	 	 	
(the “Vendor”)
	AND:	 	 
	  	 	
BINGO.COM, INC., a Florida company with its head office located at
Suite 1405, 1166 Alberni Street, Vancouver, British Columbia, Canada,
V6E 3Z3.
	  	 	 
	 	 	
(the “Purchaser”)

WHEREAS:

A.     The Vendor is the registered and beneficial owner of approximately 99% of
the issued and outstanding Shares in the capital of Cellstop plc (the
“Company”), being 499,990 Common Shares each with a par value of £0.10. (the
“Shares”).

B.     The Company carries on business in the United Kingdom.

C.     The Vendor, as the registered and beneficial owner of the Shares, has agreed
to sell and the Purchaser has agreed to purchase the Shares, on the terms and
conditions contained in this Agreement.

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the premises
and the covenants and agreements contained in this Agreement, the parties
covenant and agree with each other as follows:

ARTICLE 1 — SCHEDULES

     1.1     The following are the Schedules attached to and incorporated in this
Agreement by reference and deemed to be part of this Agreement:

	 	1.	 	Financial Statements as at August 15, 2002; and
	 
	 	2.	 	Memorandum and Articles of Association of the Company.

ARTICLE 2 — DEFINITIONS

In this Agreement:

2.1     “Business” means the business of the Company in the United Kingdom.

2.2     “Closing Date” means such earlier or later date as may be mutually agreed upon by the parties.

2.3     “Financial Statements” means the financial statements of the Company as attached to this Agreement as Schedule 1.

2.4     “Time of Closing” means 10:00 a.m. (Vancouver Time) on the Closing Date.

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ARTICLE 3 — PURCHASED SHARES AND PURCHASE PRICE

3.1     Purchased Shares

Subject to the terms and conditions of this Agreement and based on the
representations and warranties of the Vendor set forth in this Agreement, on
the Closing Date the Vendor will sell, assign and transfer to the Purchaser and
the Purchaser will purchase from the Vendor the Shares for £40,000.00 (the
“Purchase Price”), payable to the Vendor as provided in Article 3.2. The
Purchase Price will be allocated equally per share.

3.2     Payment of Purchase Price

At the Time of Closing, will pay to the Vendor £20,000 of the Purchase Price
with the balance of the Purchase Price, plus interest at the rate of 5% per
annum on such balance, to be paid no later than six (6) months after the
Closing Date.

ARTICLE 4 — VENDOR’S REPRESENTATIONS AND WARRANTIES

In order to induce the Purchaser to enter into and consummate this Agreement,
the Vendor represents and warrants to and covenants with the Purchaser as
follows:

4.1     The Company is a company duly incorporated and organized under the laws of
England and Wales, is not a reporting company and is a valid and subsisting
company in good standing with Companies House of England and Wales.

4.2     The Company carries on business only in the United Kingdom and does not
carry on business in any other country.

4.3     The authorized capital of the Company is 50,000,000 Common Shares with a
par value of £0.10 per Share, of which the 499,990 Shares constitute
approximately 99% of the issued and outstanding share capital.

4.4     The Vendor owns the Shares as legal and beneficial owner, free and clear of
all liens, claims, charges and encumbrances. The Vendor has due and sufficient
right and authority to enter into this Agreement on the terms and conditions
set forth in this Agreement and to transfer the legal and beneficial title to
and ownership of the Shares to the Purchaser.

4.5     No person, firm or corporation has any agreement or option or any right
capable of becoming an Agreement for the purchase of the Shares or any other
shares in the capital of the Company or any right capable of becoming an
Agreement for the purchase, subscription or issuance of any of the unissued
Shares in the capital of the Company.

4.6     The Company has the corporate power to own the properties owned by it and
to carry on the Business and is duly qualified to carry on business in the
United Kingdom.

4.7     The Company holds all licenses and permits (including operating
authorities) required for carrying on the Business in the manner in which it
has heretofore been carried on and all such licenses and permits are in good
standing.

4.8     The Financial Statements are true and correct in every material respect and
present fairly the assets, liabilities and financial position of the Company as
at August 15, 2002 and the results of its operations to that date, in
accordance with generally accepted accounting principles applied on a basis
consistent with that of the previous year.

4.9     There are no liabilities, contingent or otherwise, of the Company which are
not disclosed or reflected in Schedule 1 and the Company has not guaranteed, or
agreed to guarantee, any debt, liability or other obligation of any person,
firm or corporation. There are no liabilities of any other party capable of
creating a lien or charge on any of the assets of the Company.

4.10     The Company is not indebted to the Vendor or any affiliate, director or
officer of the Company.

4.11     No dividends or other distribution on any Shares in the capital of the
Company have been made, declared or authorized.

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4.12     No payments of any kind have been made or authorized to or on behalf of
the Vendor or to or on behalf of officers, directors or shareholders of the
Company.

4.13     Since
incorporation on the 18th of August 2000:

	 	a)	 	there has not been any material adverse change in the financial position
or condition of the Company or any damages, loss or other change in
circumstances materially affecting the Business or property of the Company
or its right or capacity to carry on business;
	 
	 	b)	 	the Company has not waived or surrendered any right of material value;
	 
	 	c)	 	the Company has not discharged or satisfied or paid any lien or
encumbrance or obligation or liability;
	 
	 	d)	 	the Business of the Company has been carried on in the ordinary course;
and
	 
	 	e)	 	no capital expenditures have been authorized or made.

4.14     The Memorandum and Articles of Association of the Company are as attached
in Schedule 2.

4.15     The Company does not have any contracts, agreements, collective
agreements, pension plans, profit sharing plans, bonus plans, group insurance
or similar plans, undertakings or arrangements whether oral, written or implied
with employees, lessees, licensees, managers, accountants, suppliers, agents,
distributors, officers, directors or lawyers.

4.16     There is no basis for and there are no actions, suits, judgments,
investigations or proceedings outstanding or pending or to the knowledge of the
Vendor threatened against or affecting the Company or before or by any
governmental department, commission, board, bureau or agency.

4.17     The Company is not in breach of any laws, ordinances, statutes,
regulations, by-laws, orders or decrees to which it is subject or which apply
to it.

4.18     The Company has good and marketable title to all its properties and
assets, subject to no mortgage, deed of trust, lien, encumbrance or charge and
all of such properties and assets are in good order and repair.

4.19     The Company has not experienced nor is it or the Vendor aware of any
occurrence or event, which has had, or might reasonably be expected to have, a
materially adverse effect on the Business or the results of its operations.

4.20     Neither the Vendor nor any officer, director or employee of the Company is
now indebted or under obligation to the Company on any account.

4.21     All tax returns and reports of the Company required by law to be filed
before the date of this Agreement have been filed and are substantially true,
complete and correct. All taxes and other government charges have been paid and
there will be no taxes or government charges in respect of the period ending
June 30, 2002.

4.22     All material transactions of the Company have been promptly and properly
recorded or filed in or with its respective books and records.

4.23     The performance of this Agreement will not be in violation of the
Memorandum or Articles of Association of the Company or of any agreement to
which the Vendor or the Company is a party and will not give any person or
company any right enjoyed by the Company and will not result in the creation or
imposition of any lien, encumbrance or restriction of any nature in favour of a
third party upon or against the assets of the Company or the Shares or the
violation of any law or regulation of the United Kingdom or any order or decree
of any court or tribunal to which the Vendor or the Company is subject which
could materially affect the Business or the Company or prevent the due and
valid transfer of the Shares as provided in this Agreement.

4.24     The Company does not own, directly or indirectly, any shares or interests
in any other company or firm.

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4.25     The Vendor is a resident of the United Kingdom (as defined in the Income
and Corporation Taxes Act 1988 of the United Kingdom).

4.26     This Agreement has been duly executed and delivered by the Vendor and is a
valid and binding obligation of the Vendor enforceable in accordance with its
terms.

4.27     There is no difference between the tax value and the accounting value of
the assets of the Business.

ARTICLE 5 — COVENANTS OF THE VENDOR

The Vendor covenants and agrees with the Purchaser as follows:

5.1     Consents

Both before and after the Closing Date, the Vendor shall use best efforts to
assist the Purchaser in obtaining from all appropriate governmental or
administrative bodies and all other persons all such approvals and consents in
form and terms satisfactory to counsel for the Purchaser as are necessary or
required in order to permit the sale, transfer and assignment of all of the
right, title and interest of the Vendor in and to the Shares to the Purchaser.

5.2     Possession

At or before the Time of Closing, the Vendor shall deliver to the Purchaser
possession of all books, records, book accounts, lists of suppliers and
customers of the Company and all other documents, files, records and other
data, financial or otherwise, relating to the Business.

5.3     Books and Records

The Vendor will permit the Purchaser, at any time up to the Closing Date, and
its auditors, solicitors and other authorized persons, to make such
investigation of the properties and assets of the Company and of its financial
and legal condition as the Purchaser deems necessary or advisable to familiar
itself with such properties, assets and other matters and to have full access
to the Business premises and to all records, documents and other information
related to the Business and the Company, including all working papers (internal
and external) and details of accounts and inventories prepared, obtained or
used in connection with the preparation of the Financial Statements.

5.4     Interim Management — Positive Covenants

From the date of this Agreement to the Closing Date, the Vendor will cause the
Company to carry on the Business in the ordinary and normal course, in a
prudent, businesslike, and efficient manner and substantially in accordance
with the procedures and practices in effect on August 15th, 2002.

5.5     Interim Management — Negative Covenants

From the date of this Agreement to the Closing Date, the Vendor will not, and
will not permit the Company to, without the prior consent in writing of the
Purchaser:

	 	a)	 	purchase or sell, consume or otherwise dispose of any of its assets in
connection with the Business;
	 
	 	b)	 	enter into any contract or assume or incur any liability relating to or
in any way affecting the Business except in the ordinary course of
business and which are not material;
	 
	 	c)	 	settle any accounts receivable of a material nature at less than face
value net of the reserve for that account;
	 
	 	d)	 	waive or surrender any material right in connection with the Business;
	 
	 	e)	 	discharge, satisfy or pay any lien, encumbrance, obligation or liability
in connection with the Business; or
	 
	 	f)	 	make any capital expenditures or commitment for any capital expenditures
in connection with the Business.

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5.6     Transfer of Shares

The Vendor will, at the Time of Closing, take all necessary steps and
proceedings as approved by counsel for the Purchaser to permit the shares to be
duly and regularly transferred to the Purchaser and registered in its name,
free and clear of any liens, charges and encumbrances.

5.7     Resignations

The Vendor will cause all directors and officers of the Company to resign in
favour of nominees of the Purchaser, such resignations to be effective as at
the Closing Date.

5.8     Resolutions

On the Closing Date, the Vendor shall deliver to the Purchaser:

	a)	 	certified copies of resolutions of the directors of the Company
authorizing the transfer of the Shares to and the registration of the
transfer of Shares in the name of the Purchaser and authorizing the issue
of new share certificates;
	 
	b)	 	duly executed share certificates representing the Shares in the name of
the Purchaser;
	 
	c)	 	all corporate records of the Company and its corporate seal;

5.9     Representations and Warranties

On the Closing Date, the representations and warranties of the Vendor contained
in this Agreement will be true and correct as if made on and as of the Closing
Date.

ARTICLE 6 — CONDITIONS OF CLOSING

6.1     The obligations of the Purchaser under this Agreement are subject to the
following conditions for the exclusive benefit of the Purchaser being fulfilled
in all material respects in the reasonable opinion of the Purchaser at the Time
of Closing or waived by the Purchaser at or before the Time of Closing or
agreed by the Vendor and the Purchaser to be indemnified for by the Vendor:

	a)	 	the representations and warranties of the Vendor contained in this
Agreement shall be true and correct as of the date of this Agreement and
on and as of the Closing Date;
	 
	c)	 	the Vendor shall have complied with all covenants this Agreement agreed
to be performed or caused to be performed by it respectively on or before
the Closing Date;
	 
	d)	 	the title of the Company to its assets free and clear of liens, charges
and encumbrances, the legality of the incorporation and organization of
the Company, the due creation and issuance as fully paid and
non-assessable of the Shares, all corporate proceedings of the Company,
its shareholders and directors, the right of the Company to carry on the
Business and all other matters which in the opinion of the Purchaser are
material in connection with the transactions of purchase and sale
contemplated by this Agreement shall be subject to the favourable opinion
of the Purchaser;
	 
	e)	 	no material loss or destruction of or damage to any of the assets of the
Company shall have occurred between the date of this Agreement and the
Time of Closing;
	 
	f)	 	no action or proceeding in the United Kingdom shall be pending or
threatened by any person, company, firm governmental authority, regulatory
body or agency to enjoin or prohibit:

	 	i)	 	the purchase and sale of the Shares and other assets
contemplated by this Agreement or the right of the Purchaser to own
the Shares; or
	 
	 	ii)	 	the right of the Company to conduct its operations and carry on
the Business in the normal course as the Business and its operations
have been carried on in the past;

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	g)	 	the Company shall have the benefit of all licenses and permits, contracts
and agreements necessary to permit it to carry on the Business as carried
on by the Vendor.

6.2     If any of the conditions in Article 6.1 are not fulfilled or waived or
indemnified for, the Purchaser on the Closing Date may rescind this Agreement
by notice in writing to the Vendor. In such event, the Purchaser shall be
released from all obligations under this Agreement, and the Vendor will also be
released unless the Vendor was reasonably capable of causing such condition or
conditions to be fulfilled or the Vendor has breached any of its
representations, warranties, covenants or agreements in this
Agreement. The Purchaser shall be repaid the monies paid under Article 3.2.

6.3     The conditions in Article 6.1 may be waived in whole or in part without
prejudice to any right of rescission in the event of the non-fulfilment of any
other condition or conditions. A waiver will be binding only if it is in
writing.

ARTICLE 7 — CLOSING ARRANGEMENTS

7.1     Place

The Closing shall take place at the Time of Closing at London, United Kingdom.

7.2     Share Certificate/Payment

At the Time of Closing, upon fulfilment of all conditions set out in Article 6
which have not been waived in the manner provided in Article 6.3, the Vendor
shall deliver to the Purchaser certificates respecting all the Shares and will
cause such Shares to be duly and regularly recorded in the name of the
Purchaser, whereupon, subject to all other terms and conditions hereof being
complied with, the Purchase Price shall be paid and satisfied in the manner
provided in Article 3.

ARTICLE 8 — GENERAL

8.1     Reliance

The Vendor acknowledges and agrees that the Purchaser has entered into this
Agreement relying on the representations, warranties, covenants and agreements
and other terms and conditions of this Agreement and that no information which
is now known, which may become known or which could upon investigation have
become known to the Purchaser or the Company or any of their present or future
officers, directors or professional advisors shall in any way limit or
extinguish any rights any of them may have against the Vendor, including
without limitation, any right to indemnity under Article 8.2 of this Agreement.

8.2     Indemnification

The Vendor covenants and agrees to indemnify and save harmless the Purchaser
and the Company from any loss, damages, liabilities, costs and expenses
(including without limitation any tax liability) suffered by the Purchaser or
the Company directly or indirectly as a result of or arising out of any breach
of representation, warranty, covenant or agreement of the Vendor contained in
this Agreement or any document or certificate delivered under this Agreement.

8.3     Commissions, Legal Fees

Each of the parties will bear the fees and disbursements of the respective
lawyers, accountants and consultants engaged by them respectively in connection
with this Agreement and will not cause or permit any such fees or disbursements
to be charged to the Company before the Closing Date.

8.4     Notices

Any notice, direction or other instrument required or permitted to be given
under this Agreement shall be in writing and may be given by mailing the same
postage prepaid or delivering the same addressed as follows:

		
	 	     To the Vendor:
	 
	 	     203 Shakespeare Tower, The Barbican, London, EC2Y 8DR, United Kingdom
	 
	 	     To the Purchaser:
	 
	 	     Suite 1405, 1166 Alberni Street, Vancouver, British Columbia, Canada, V6E 3Z3

-44-

 

or to such other address as a party may specify by notice and shall be deemed
to have been received, if delivered, on the date of delivery if it is a
business day and otherwise on the next succeeding business day and, if mailed,
on the fifth (5th) business day following the posting of the notice except if
there is a postal dispute, in which case all communications shall be delivered.

8.5     Time of Essence

Time shall be of the essence of this Agreement.

8.6     Further Assurances

Each of the parties will execute and deliver such further documents and
instruments and do such acts and things as may, before or after the Closing
Date, be reasonably required by another party to carry out the intent and
meaning of this Agreement and to assure to the Purchaser the Shares.

8.7     Proper Law

This Agreement shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by the laws of the Province of British
Columbia, Canada.

8.8     Benefit and Binding Nature of the Agreement

This Agreement shall enure to the benefit of and be binding upon the parties
and their respective successors and assigns.

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IN WITNESS WHEREOF this Agreement has been executed by the parties.

	 	 	 	 
	Signed by T.M. Williams

in the presence of:

 

 

/S/  G. J. Coogan

 

 

 

	 	)

)

)

)

)

)

)

)

)

)

)

)	 

 

 

 

/S/  T. M. Williams

T.M. Williams
	 
	 
	By Bingo.com, Inc.

Per:

 

 

/S/  H. W. Bromley

Authorized Signatory	 

-46-

 

SCHEDULE 1

Financial Statements

SCHEDULE 2

Memorandum and Articles of Association of the Company

-47-

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