Document:

TIGR 3.31-2012 EX 10.9

Exhibit 10.9

TIGERLOGIC CORPORATION
2011 AMENDED AND RESTATED EMPLOYEE STOCK PURCHASE PLAN

Adopted by the Board of Directors October 11, 2011
Approved by the Stockholders February 23, 2012

1.Purpose.
(a)    The purpose of the Plan is to provide employees of the Company and its Designated Parents or Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions.
(b)    The Plan is an amendment and restatement of the TigerLogic Corporation 2001 Employee Stock Purchase Plan.
(c)    The Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code.  The provisions of the Plan shall be construed accordingly.
2.    Definitions.  As used herein, the following definitions shall apply:
(a)    “Administrator” means either the Board or a committee of the Board that is responsible for the administration of the Plan as is designated from time to time by resolution of the Board.
(b)    “Applicable Laws” means the legal requirements relating to employee stock purchase plans under applicable provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to participation in the Plan by residents therein.
(c)    “Board” means the Board of Directors of the Company.
(d)    “Code” means the Internal Revenue Code of 1986, as amended.
(e)    “Common Stock” means the common stock of the Company.
(f)    “Company” means TigerLogic Corporation, a Delaware corporation.
(g)    “Compensation” means an Employee's base salary, overtime, bonuses, annual awards, and other incentive payments from the Company or one or more Designated Parents or Subsidiaries, including such amounts of base salary as are deferred by the Employee (i) under a qualified cash or deferred arrangement described in Section 401(k) of the Code, or (ii) to a plan qualified under Section 125 of the Code or an arrangement under Section 132(f)(4) of the Code.  Compensation does not include reimbursements or other expense allowances, fringe benefits (cash or noncash), moving expenses, deferred compensation, contributions (other than contributions described in the first sentence) made on the Employee's behalf by the Company or one or more Designated Parents or Subsidiaries under any employee benefit or welfare plan now or hereafter established, and any other payments not specifically referenced in the first sentence.
(h)    “Corporate Transaction” means any of the following transactions:
(i)    Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company's then outstanding voting securities (but excluding any “person” who is the “beneficial owner” of an aggregate of 50% or more of the total voting power of the Company's outstanding securities as of the Effective Date, or any affiliate thereof);
(ii)    The consummation of (A) a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or the entity that controls the Company or such surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or the entity that controls the Company or such surviving entity 

outstanding immediately after such merger or consolidation, or (B) the sale or disposition by the Company of all or substantially all the Company's assets; or
(iii)    The complete liquidation of the Company.
(i)    “Designated Parents or Subsidiaries” means the Parents or Subsidiaries which have been designated by the Administrator from time to time as eligible to participate in the Plan.
(j)    “Director” means a member of the Board.
(k)    “Effective Date” means October 15, 2011.  However, should any Designated Parent or Subsidiary become a participating company in the Plan after such date, then such entity shall designate a separate Effective Date with respect to its employee-participants.
(l)    “Employee” means any individual, including an officer or Director, who is an employee of the Company or a Designated Parent or Subsidiary for purposes of Section 423(b)(4) of the Code.  For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the individual's employer.  Where the period of leave exceeds ninety (90) days and the individual's right to reemployment is not guaranteed either by statute or by contract, the employment relationship will be deemed to have terminated on the ninety-first (91st) day of such leave, for purposes of determining eligibility to participate in the Plan.  For purposes of this Plan, neither service as a Director nor payment of a Director's fee shall be sufficient, by themselves, to make an individual an Employee.
(m)    “Enrollment Date” means the first day of each Offer Period.
(n)    “Exchange Act” means the Securities Exchange Act of 1934, as amended.
(o)    “Exercise Date” means the last day of each Offer Period (or Purchase Period, if applicable).
(p)    “Fair Market Value” means, as of any date, the value of Common Stock determined as follows:
(i)    If the Common Stock is listed on any established stock exchange or a national market system, including without limitation The Nasdaq Global Market or The Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable;
(ii)    If the Common Stock is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized securities dealer, but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on date of determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or
(iii)    In the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market Value thereof shall be determined by the Administrator in good faith and in a manner consistent with Section 260.140.50 of Title 10 of the California Code of Regulations which requires that consideration be given to (A) the price at which securities of reasonably comparable corporations (if any) in the same industry are being traded, or (B) if there are no securities of reasonably comparable corporations in the same industry being traded, the earnings history, book value and prospects of the issuer in light of market conditions generally.
(q)    “Offer Period” means an Offer Period established pursuant to Section 4 hereof.
(r)    “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.
(s)    “Participant” means an Employee of the Company or Designated Parent or Subsidiary who is actively participating in the Plan.
(t)    “Plan” means this Employee Stock Purchase Plan.

(u)    “Purchase Period” means a period specified as such pursuant to Section 4(b) hereof.
(v)    “Purchase Price” shall mean an amount equal to 85% of the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower.
(w)    “Reserves” means the sum of the number of shares of Common Stock covered by each option under the Plan which have not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option.
         (x)    “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.
3.    Eligibility

(a)    General.  Subject to the provisions of Subsection 3(c) below, any individual who is an Employee on a given Enrollment Date shall be eligible to participate in the Plan for the Offer Period commencing with such Enrollment Date.
(b)    Limitations on Grant and Accrual.  Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such Employee (taking into account stock owned by any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any Parent or Subsidiary, or (ii) which permits the Employee's rights to purchase stock under all employee stock purchase plans of the Company and its Parents or Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the Fair Market Value of the shares at the time such option is granted) for each calendar year in which such option is outstanding at any time.  The determination of the accrual of the right to purchase stock shall be made in accordance with Section 423(b)(8) of the Code and the regulations thereunder.
(c)    Other Limits on Eligibility.  Notwithstanding Subsection 3(a) above, the following Employees shall not be eligible to participate in the Plan for any relevant Offer Period: (i) Employees whose customary employment is twenty (20) hours or less per week; (ii) Employees whose customary employment is for not more than five (5) months in any calendar year; (iii) Employees who have been employed for fewer than five (5) business days as of the Enrollment Date for such Offer Period; and (iv) Employees who are subject to rules or laws of a foreign jurisdiction that prohibit or make impractical the participation of such Employees in the Plan.
4.    Offer Periods.
(a)    The Plan shall be implemented through overlapping or consecutive Offer Periods until such time as: (i) the maximum number of shares of Common Stock available for issuance under the Plan shall have been purchased, or (ii) the Plan shall have been sooner terminated in accordance with Section 19 hereof.  The maximum duration of an Offer Period shall be six (6) months.  Initially, the Plan shall be implemented through consecutive Offer Periods of six (6) months' duration commencing each February 15 and August 15 following the Effective Date (except that the initial Offer Period under the Plan shall commence on the later to occur of (i) February 15, 2012 or (ii) the date stockholder approval of the Plan shall have been received by the Company, and shall end on August 14, 2012).
(b)    A Participant shall be granted a separate option for each Offer Period in which he or she participates.  The option shall be granted on the Enrollment Date and shall be automatically exercised on the last day of the Offer Period.  However, with respect to any Offer Period, the Administrator may specify shorter Purchase Periods within an Offer Period, such that the option granted on the Enrollment Date shall be automatically exercised in successive installments on the last day of each Purchase Period ending within the Offer Period.
(c)    Except as specifically provided herein, the acquisition of Common Stock through participation in the Plan for any Offer Period shall neither limit nor require the acquisition of Common Stock by a Participant in any subsequent Offer Period.
5.    Participation.
(a)    An eligible Employee may become a Participant in the Plan by completing a subscription agreement 

authorizing payroll deductions in the form of Exhibit A to this Plan (or in such other form or procedure the Administrator determines for evidencing elections to participate) and filing it with the designated payroll office of the Company at least ten (10) business days prior to the Enrollment Date for the Offer Period in which such participation will commence, unless a later time for filing the subscription agreement is set by the Administrator for all eligible Employees with respect to a given Offer Period.
(b)    Payroll deductions for a Participant shall commence with the first partial or full payroll period beginning on the Enrollment Date and shall end on the last complete payroll period during the Offer Period, unless sooner terminated by the Participant as provided in Section 10.
6.    Payroll Deductions.
(a)    At the time a Participant files a subscription agreement, the Participant shall elect to have payroll deductions made during the Offer Period in amounts between one percent (1%) and not exceeding ten percent (10%) of the Compensation which the Participant receives during the Offer Period.
(b)    All payroll deductions made for a Participant shall be credited to the Participant's account under the Plan and will be withheld in whole percentages only.  A Participant may not make any additional payments into such account.
(c)    A Participant may discontinue participation in the Plan as provided in Section 10, or may increase or decrease the rate of payroll deductions during the Offer Period by completing and filing with the Company a change of status notice in the form of Exhibit B to this Plan authorizing an increase or decrease in the payroll deduction rate.  Any increase or decrease in the rate of a Participant's payroll deductions shall be effective with the first full payroll period commencing ten (10) business days after the Company's receipt of the change of status notice unless the Company elects to process a given change in participation more quickly.  A Participant's subscription agreement (as modified by any change of status notice) shall remain in effect for successive Offer Periods unless terminated as provided in Section 10.  The Administrator shall be authorized to limit the number of payroll deduction rate changes during any Offer Period.
d)    Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) herein, a Participant's payroll deductions shall be decreased to 0%.  Payroll deductions shall recommence at the rate provided in such Participant's subscription agreement, as amended, at the time when permitted under Section 423(b)(8) of the Code and Section 3(b) herein, unless such participation is sooner terminated by the Participant as provided in Section 10.
7.    Grant of Option.  
(a)    On the Enrollment Date, each Participant shall be granted an option to purchase (at the applicable Purchase Price) up to a maximum of one thousand five hundred (1,500) shares of the Common Stock, subject to adjustment as provided in Section 18 hereof; provided that such option shall be subject to the limitations set forth in Sections 3(b), 6 and 12 hereof.  Exercise of the option shall occur as provided in Section 8, unless the Participant has withdrawn pursuant to Section 10, and the option, to the extent not exercised, shall expire on the last day of the Offer Period.
(b)    The maximum aggregate number of shares that all Participants shall be able to purchase during an Offer Period shall be the remaining Shares available under the Plan as of the Enrollment Date for that Offer Period.
(c)    In accordance with Section 423(b)(5) of the Code, all Employees granted an option under the Plan shall have the same rights and privileges.
8.    Exercise of Option.  Unless a Participant withdraws from the Plan as provided in Section 10 below, the Participant's option for the purchase of shares will be exercised automatically on each Exercise Date by applying the accumulated payroll deductions in the Participant's account to purchase the number of full shares subject to the option by dividing such Participant's payroll deductions accumulated prior to such Exercise Date and retained in the Participant's account as of the Exercise Date by the applicable Purchase Price.  No fractional shares will be purchased; any payroll deductions accumulated in a Participant's account which are not sufficient to purchase a full share shall be carried over to the next Offer Period (or Purchase Period, if applicable) or returned to the Participant, if the Participant withdraws from the Plan.  Notwithstanding the foregoing, any amount remaining in a Participant's account following the purchase of shares on the Exercise Date due to the application of Section 423(b)(8) of the Code or Section 7 above shall be returned to the Participant and shall not be carried over to the next Offer Period (or Purchase Period, if applicable).  During a Participant's lifetime, a Participant's option to purchase shares hereunder is exercisable only by the Participant.
9.    Delivery.  Upon receipt of a request from a Participant after each Exercise Date on which a purchase of 

shares occurs, the Company shall arrange the delivery to such Participant, as promptly as practicable, of a certificate representing the shares purchased upon exercise of the Participant's option.
10.    Withdrawal; Termination of Employment.
(a)    A Participant may either (i) withdraw all but not less than all the payroll deductions credited to the Participant's account and not yet used to exercise the Participant's option under the Plan or (ii) terminate future payroll deductions, but allow accumulated payroll deductions to be used to exercise the Participant's option under the Plan at any time by giving written notice to the Company in the form of Exhibit B to this Plan.  If the Participant elects withdrawal alternative (i) described above, all of the Participant's payroll deductions credited to the Participant's account will be paid to such Participant as promptly as practicable after receipt of notice of withdrawal, such Participant's option for the Offer Period will be automatically terminated, and no further payroll deductions for the purchase of shares will be made during the Offer Period.  If the Participant elects withdrawal alternative (ii) described above, no further payroll deductions for the purchase of shares will be made during the Offer Period, all of the Participant's payroll deductions credited to the Participant's account will be applied to the exercise of the Participant's option on the next Exercise Date, and after such Exercise Date, such Participant's option for the Offer Period will be automatically terminated.  If a Participant withdraws from an Offer Period, payroll deductions will not resume at the beginning of the succeeding Offer Period unless the Participant delivers to the Company a new subscription agreement.
(b)    Upon termination of a Participant's employment relationship (as described in Section 2(l)) at a time more than three (3) months from the next scheduled Exercise Date, the payroll deductions credited to such Participant's account during the Offer Period but not yet used to exercise the option will be returned to such Participant or, in the case of his/her death, to the person or persons entitled thereto under Section 14, and such Participant's option will be automatically terminated.  Upon termination of a Participant's employment relationship (as described in Section 2(l)) within three (3) months of the next scheduled Exercise Date, the payroll deductions credited to such Participant's account during the Offer Period but not yet used to exercise the option will be applied to the purchase of Common Stock on the next Exercise Date, unless the Participant (or in the case of the Participant's death, the person or persons entitled to the Participant's account balance under Section 14) withdraws from the Plan by submitting a change of status notice in accordance with subsection (a) of this Section 10.  In such a case, no further payroll deductions will be credited to the Participant's account following the Participant's termination of employment and the Participant's option under the Plan will be automatically terminated after the purchase of Common Stock on the next scheduled Exercise Date.
11.    Interest.  No interest shall accrue on the payroll deductions credited to a Participant's account under the Plan.
12.    Stock.
(a)    The maximum number of shares of Common Stock which shall be made available for sale under the Plan shall be one million (1,000,000) shares, subject to adjustment upon changes in capitalization of the Company as provided in Section 18.  If the Administrator determines that on a given Exercise Date the number of shares with respect to which options are to be exercised may exceed (x) the number of shares then available for sale under the Plan or (y) the number of shares available for sale under the Plan on the Enrollment Date(s) of one or more of the Offer Periods in which such Exercise Date is to occur, the Administrator may make a pro rata allocation of the shares remaining available for purchase on such Enrollment Dates or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine to be equitable, and shall either continue all Offer Periods then in effect or terminate any one or more Offer Periods then in effect pursuant to Section 19, below.
(b)    A Participant will have no interest or voting right in shares covered by the Participant's option until such shares are actually purchased on the Participant's behalf in accordance with the applicable provisions of the Plan.  No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date of such purchase.
(c)    Shares to be delivered to a Participant under the Plan will be registered in the name of the Participant or in the name of the Participant and his or her spouse.
13.    Administration.  The Plan shall be administered by the Administrator which shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan.  Every finding, decision and determination made by the Administrator shall, to the full extent permitted by Applicable Law, be final and binding upon all persons.
14.    Designation of Beneficiary.
(a)    Each Participant will file a written designation of a beneficiary who is to receive any shares and cash, if any, from the Participant's account under the Plan in the event of such Participant's death.  If a Participant is married and the 

designated beneficiary is not the spouse, spousal consent shall be required for such designation to be effective.
(b)    Such designation of beneficiary may be changed by the Participant (and the Participant's spouse, if any) at any time by written notice.  In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living (or in existence) at the time of such Participant's death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Administrator), the Administrator shall deliver such shares and/or cash to the spouse (or domestic partner, as determined by the Administrator) of the Participant, or if no spouse (or domestic partner) is known to the Administrator, then to the issue of the Participant, such distribution to be made per stirpes (by right of representation), or if no issue are known to the Administrator, then to the heirs at law of the Participant determined in accordance with Section 27.
15.    Transferability.  Neither payroll deductions credited to a Participant's account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 14 hereof) by the Participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Administrator may treat such act as an election to withdraw funds from an Offer Period in accordance with Section 10.
16.    Use of Funds.  Each Participant's payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.
17.    Reports.  Individual accounts will be maintained for each Participant in the Plan.  Statements of account will be given to Participants at least annually, which statements will set forth the amounts of payroll deductions, the Purchase Price, the number of shares purchased and the remaining cash balance, if any.
18.    Adjustments Upon Changes in Capitalization; Corporate Transactions.
(a)    Adjustments Upon Changes in Capitalization.  Subject to any required action by the stockholders of the Company, the Reserves, the Purchase Price, the maximum number of shares that may be purchased in any Offer Period, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, (ii) any other increase or decrease in the number of issued shares of Common Stock effected without receipt of consideration by the Company, or (iii) as the Administrator may determine in its discretion, any other transaction with respect to Common Stock to which Section 424(a) of the Code applies; provided, however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Administrator and its determination shall be final, binding and conclusive.  Except as the Administrator determines, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the Reserves and the Purchase Price.
(b)    Corporate Transactions.  In the event of a proposed Corporate Transaction, each option under the Plan shall be assumed by such successor corporation or a parent or subsidiary of such successor corporation, unless the Administrator, in the exercise of its sole discretion and in lieu of such assumption, determines to shorten the Offer Period then in progress by setting a new Exercise Date (the “New Exercise Date”).  If the Administrator shortens the Offer Period then in progress in lieu of assumption in the event of a Corporate Transaction, the Administrator shall notify each Participant in writing at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the Participant's option has been changed to the New Exercise Date and that either:
(i)    the Participant's option will be exercised automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Offer Period as provided in Section 10; or
(ii)    the Company shall pay to the Participant on the New Exercise Date an amount in cash, cash equivalents, or property as determined by the Administrator that is equal to the difference in the Fair Market Value of the shares subject to the option and the Purchase Price due had the Participant's option been exercised automatically under Subsection (b)(i) above.
For purposes of this Subsection, an option granted under the Plan shall be deemed to be assumed if, in connection with the Corporate Transaction, the option is replaced with a comparable option with respect to shares of capital stock of the successor corporation or Parent thereof.  The determination of option comparability shall be made by the Administrator prior to the Corporate Transaction and its determination shall be final, binding and conclusive on all persons.

19.    Amendment or Termination.
(a)    The Administrator may at any time and for any reason terminate or amend the Plan.  Except as provided in Section 18, no such termination can affect options previously granted, provided that the Plan or any one or more Offer Periods may be terminated by the Administrator on any Exercise Date or by the Administrator establishing a new Exercise Date with respect to any Offer Period (and/or any Purchase Period, if applicable) then in progress if the Administrator determines that the termination of the Plan or such one or more Offer Periods is in the best interests of the Company and its stockholders.  Except as provided in Section 18 and this Section 19, no amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant without the consent of affected Participants.  To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other Applicable Law), the Company shall obtain stockholder approval in such a manner and to such a degree as required.
(b)    Without stockholder consent and without regard to whether any Participant rights may be considered to have been “adversely affected,” the Administrator shall be entitled to limit the frequency and/or number of changes in the amount withheld during Offer Periods, implement and/or change the length of Purchase Periods within any Offer Period, determine the length of any future Offer Period, determine whether future Offer Periods shall be consecutive or overlapping, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company's processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant's Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable and which are consistent with the Plan.
20.    Notices.  All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Administrator at the location, or by the person, designated by the Administrator for the receipt thereof.
21.    Conditions Upon Issuance of Shares.  Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance.  As a condition to the exercise of an option, the Company may require the Participant to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned Applicable Laws.  In addition, no options shall be exercised or shares issued hereunder before the Plan shall have been approved by stockholders of the Company as provided in Section 23.
22.    Term of Plan.  The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the stockholders of the Company.  The Plan shall continue until it is terminated in accordance with Section 19.
23.    Stockholder Approval.  Continuance of the Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted.  Such stockholder approval shall be obtained in the degree and manner required under Applicable Laws.
24.    No Employment Rights.  The Plan does not, directly or indirectly, create any right for the benefit of any employee or class of employees to purchase any shares under the Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Company or a Designated Parent or Subsidiary, and it shall not be deemed to interfere in any way with such employer's right to terminate, or otherwise modify, an employee's employment at any time.
25.    No Effect on Retirement and Other Benefit Plans.  Except as specifically provided in a retirement or other benefit plan of the Company or a Designated Parent or Subsidiary, participation in the Plan shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Designated Parent or Subsidiary, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation.  The Plan is not an “employee benefit pension plan” or  an “employee welfare benefit plan” under the Employee Retirement Income Security Act of 1974, as amended.
26.    Effect of Plan.  The provisions of the Plan shall, in accordance with its terms, be binding upon, and inure to 

the benefit of, all successors of each Participant, including, without limitation, such Participant's estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such Participant.
27.    Governing Law.  The Plan is to be construed in accordance with and governed by the internal laws of the State of California (as permitted by Section 1646.5 of the California Civil Code, or any similar successor provision) without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of California to the rights and duties of the parties, except to the extent the internal laws of the State of California are superseded by the laws of the United States.  Should any provision of the Plan be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.
28.    Information to Participants.  The Company shall provide to each Participant, during the period for which such Participant has an option outstanding, copies of financial statements at least annually and all annual reports and other information which is provided to all shareholders of the Company.sono_ex101.htm

EXHIBIT 10.1

 

SHARE PURCHASE AGREEMENT

 

THIS AGREEMENT (the “Agreement”) is made June ___, 2012.

 

BETWEEN:

 

SONO RESOURCES INC., a company incorporated under the laws of Nevada

(the “Vendor”)

 

AND:

 

PINETTE COPPER CORP., a company incorporated under the laws of Canada

(the “Purchaser”)

 

RECITALS

 

	
A.

	
The Vendor is the registered and beneficial holder 1,000 common shares of Bonnyridge (Pty) Ltd. (“Bonnyridge”), a company incorporated under the laws of Botswana, representing 100% of all the issued and outstanding shares (the “Shares”) in the capital of Bonnyridge.

 

	
B.

	
The Vendor has agreed to sell, and the Purchaser has agreed to purchase the Shares, on the terms and subject to the conditions provided in this Agreement.

 

TERMS OF AGREEMENT

 

In consideration of the premises and the covenants, agreements, representations, warranties and payments contained in this Agreement, the parties agree with each other as follows:

 

	
1.  

	
Description of Shares

 

Based on the representations and warranties contained in this Agreement and upon the terms and subject to the conditions of this Agreement, the Vendor agrees to sell, assign and transfer to the Purchaser, and the Purchaser agrees to purchase from the Vendor the Shares, which Shares constitute 100% of the issued and outstanding shares in the capital of Bonnyridge, effective as of and from June 15, 2012 or such other date as the parties may agree (the “Closing Date”), in consideration for the payment by the Purchaser of the Purchase Price (as defined below) in accordance with and subject to the terms and conditions set forth in this Agreement
(the “Transaction”).

 

  

1

  

 

	
2.  

	
Purchase Price

 

The purchase price for the Shares is $500,000 in Canadian currency (the “Purchase Price”), payable by the Purchaser on the Closing Date, subject to the terms and conditions set out herein.  The exchange of debt obligations owed by the Vendor to third parties and assumed by the Purchaser at the Closing Date may form valid and bonafide consideration as the Purchase Price in this Agreement.

 

	
3.  

	
Representations and Warranties of the Vendor

 

The Vendor represents and warrants to the Purchaser as follows, with the intent that the Purchaser will rely on these representations and warranties in entering into this Agreement, and in concluding the Transaction (the “Closing”).

 

	
3.1  

	
The Vendor is duly incorporated and validly existing and in good standing under the laws of Nevada and has all necessary corporate power and authority to own and dispose of its assets and carry on its business as presently carried.

 

	
3.2  

	
The execution and delivery of this Agreement and the Closing have been duly and validly authorized by all necessary corporate action on the part of the Vendor, and this Agreement constitutes a legal, valid and binding obligation of the Vendor enforceable against the Vendor in accordance with its terms except as may be limited by laws of general application affecting the rights of creditors.

 

	
3.3  

	
Neither the execution and delivery of this Agreement nor the Closing will:

 

	
(a)  

	
violate any of the terms and provisions of the memorandum or articles of the Vendor or Bonnyridge, or any order, decree, statute, by-law, regulation, material contract, covenant or restriction applicable to the Vendor, Bonnyridge or any of the Shares;

 

	
(b)  

	
give any person the right to terminate, cancel or seize any of the Shares; or

 

	
(c)  

	
result in any fees, duties, taxes, assessments or other amounts relating to any of the Shares becoming due or payable by the Purchaser in connection with the Transaction.

 

	
3.4  

	
The Vendor owns and possesses and has a good marketable title to the Shares, free and clear of all mortgages, liens, charges, pledges, security interests, encumbrances and other claims.  No person, firm or company has any agreement, option, right or privilege (whether pre-emptive, contractual or otherwise) capable of becoming an agreement for the purchase, acquisition, subscription for or issue of the Shares.

 

	
3.5  

	
The Shares constitute 100% of the issued and outstanding shares in the capital of Bonnyridge, which is duly incorporated and validly existing and in good standing under the laws of Botswana and has all necessary corporate power and authority to own or lease its assets and carry on its business as presently carried on and is duly licensed and qualified to carry on its business in each jurisdiction in which the location of its assets requires such license or qualification.

 

  

2

  

 

	
3.6  

	
Neither the Vendor nor Bonnyridge has committed an act of bankruptcy, is insolvent, has proposed a compromise or arrangement to its creditors generally, has had a petition or a receiving order in bankruptcy filed against it, or has it taken (or had taken against it) any similar proceedings.

 

	
3.7  

	
Foreign Corrupt Practices.  The Vendor, Bonnyridge and any person acting on the Vendor’s or Bonnyridge’s behalf have not made or offered with respect to the Shares, the Project (as defined below) or the Transaction:

 

	
(a)  

	
any compensation, commission, agency fee, introduction fee, payment, gift, promise or advantage to a third party, where such payment or advantage would violate any applicable law;

 

	
(b)  

	
except as may be required by the terms of the Licenses (as defined below) comprising the Project, any compensation, commission, agency fee, introduction fee, payment, gift, promise or advantage to a third party which is based or calculated on any capital employed, cost incurred, cash flow, revenue, or profit earned or generated or estimated to be earned or generated by Bonnyridge the Vendor or in respect of the Project; or

 

	
(c)  

	
any compensation, commission, agency fee, introduction fee, payment, gift, promise or advantage, whether directly or through intermediaries, to or for the use of any person, while knowing or being aware of a high probability that any such money or thing of value will be offered, paid, given or promised, directly or indirectly, to any public official including any person holding a legislative, administrative or judicial office, exercising a public function for a public agency, a public enterprise or a public international organisation (collectively “Officials”), for the purposes of influencing any act or decision of such Officials in their official capacity, or
inducing such Officials to use their influence in obtaining or retaining business or the Project for or with, or directing business to, Bonnyridge.

 

	
3.8  

	
The corporate records and minute books of Bonnyridge have been maintained in compliance with applicable laws, rules and regulations, except for such non-compliance as would not subject Bonnyridge to any penalty or fine, and contain complete and accurate records of all meetings and other corporate actions of the board of directors, committees of the board of directors, and shareholders of Bonnyridge.

 

	
3.9  

	
There is no action, suit, proceeding, judgment, claim or investigation pending or, to the knowledge of the Vendor, threatened against Bonnyridge and no event has occurred in the business of Bonnyridge that would reasonably be expected to give rise to any such action, suit, proceeding, judgement claim or investigation.  There are no judgments against Bonnyridge which are unsatisfied, nor are there any consent decrees or injunctions to which Bonnyridge is subject. There are no judgments against the Vendor which are unsatisfied, nor are there any consent decrees or injunctions to which the Vendor is subject, which could have a material adverse effect on the Shares or the Transaction.

 

	
3.10  

	
Bonnyridge has conducted and is conducting its business in compliance in all material respects with all applicable laws, rules, regulations, tariffs, orders and directives of each jurisdiction in which it carries on business and possesses all material approvals, consents, certificates, registrations, authorizations, permits and licences issued by the appropriate provincial, state, municipal, federal or other regulatory agency or body necessary to carry on the business currently carried on by it, is in compliance in all material respects with the terms and conditions of all such approvals, consents, certificates, authorizations, permits and licences and with all laws, regulations, tariffs, rules, orders and directives material to
the operations, and Bonnyridge has not received any notice of the modification, revocation or cancellation or, any intention to modify, revoke or cancel or any proceeding relating to the modification, revocation or cancellation of any such approval, consent, certificate, authorization, permit or licence which, singly or in the aggregate, if the subject of an unfavourable decision, order, ruling or finding, would materially and adversely affect the conduct of the business or operations of, or the assets, liabilities (contingent or otherwise), condition (financial or otherwise) of Bonnyridge.

 

  

3

  

 

	
3.11  

	
Bonnyridge is not in default of any material term, covenant or condition under or in respect of any agreement or instrument to which it is a party or to which it or any of the property or assets thereof are or may be subject, and no event has occurred and is continuing, and no circumstance exists which has not been waived, which constitutes a default in respect of any commitment, agreement, document or other instrument to which Bonnyridge is a party or by which it is otherwise bound entitling any other party thereto to accelerate the maturity of any amount owing thereunder or which could have a material adverse effect upon the condition (financial or otherwise), property, assets, operations or business of Bonnyridge.

 

	
3.12  

	
Bonnyridge is the beneficial and registered or recorded owner of a 100% interest in three (3) prospecting licenses in Botswana, as more particularly detailed in Schedule “A” to this Agreement (the “Licenses”), which licenses constitute the Bonnyridge Project (the “Project”) and are the only interest that Bonnyridge has in any mineral project or assets.  Bonnyridge has obtained or acquired all rights or powers necessary in, over or to the surface area of the Project to access the property and to conduct exploration and mining operations on area encompassing the Project
necessary to be obtained or acquired as at the date hereof.  All work or expenditure obligations applicable to the Project, all reports of the work or expenditure and other requirements to be satisfied or filed to keep the Project in good standing, which were to have been satisfied by the date hereof, have been satisfied or filed to the satisfaction of the applicable authority.

 

	
3.13  

	
There are no orders or directions relating to environmental matters requiring any work, repairs, construction or capital expenditures with respect to the Project or the conduct of the business related to the Project, nor to the knowledge of the Vendor, has any activity on the Project been in violation of any applicable environmental law, regulations or regulatory prohibition or order as a result of the operations of the Vendor or Bonnyridge, and to the knowledge of the Vendor, the conditions on and relating to the Project are in material compliance with those laws, regulations, prohibitions and orders.  There has been no material spill, discharge, leak, emission, ejection, escape, dumping, or any release or threatened
release of any kind, of any toxic or hazardous substance or waste (as defined by any applicable law) from, on, in or under the Project or into the environment as a result of the operations of the Vendor or Bonnyridge, except releases expressly permitted or otherwise authorized by applicable law.  To the knowledge of the Vendor, and except as is expressly permitted by the terms of the mineral rights comprising the Project, no toxic or hazardous substance or waste has been treated, disposed of or is located or stored on the Project as a result of operations of the Vendor or Bonnyridge.

 

	
3.14  

	
Bonnyridge is in compliance with the requirements of all applicable laws regulations and statues (including all environmental laws and regulations) in the jurisdictions in which it carries on business and which may materially affect Bonnyridge and neither of the Vendor nor Bonnyridge has received a notice of non-compliance, nor does the Vendor know of or have any reasonable grounds to know of any facts that could give rise to a notice of non-compliance with any such laws, regulation and statutes. Neither of the Vendor nor Bonnyridge are aware of any pending or contemplated change to any applicable law, regulation, statute or governmental position that could materially affect the business of the Vendor or Bonnyridge or any
business or legal environment in which Bonnyridge currently operates.

 

	
3.15  

	
All operations conducted by or on behalf of the Vendor or Bonnyridge on the Project have to the knowledge of the Vendor been conducted and are currently conducted in all material respects in accordance with good practices and any applicable material workers’ compensation, health and safety laws regulations and policies in the jurisdictions in which Bonnyridge currently operates.

 

  

4

  

 

	
3.16  

	
Bonnyridge has all licences, permits, approvals, consents, certificates, registrations and other authorizations (collectively the “Permits”) under all applicable laws and regulations necessary for the operation of the businesses carried on or proposed to be commenced by it and each Permit is valid, subsisting and in good standing and Bonnyridge is not in default or breach of any Permit, and to the best of the knowledge of the Vendor, no proceeding is pending or threatened to revoke or limit any Permit.

 

	
3.17  

	
To the Vendor’s knowledge, information and belief, none of the directors or officers of Bonnyridge is or has ever been subject to prior regulatory, criminal or bankruptcy proceedings.

 

	
3.18  

	
Neither Bonnyridge, nor to the best of the Vendor’s knowledge, any other person, is in default in the observance of performance of any terms, covenant, obligation to be performed by Bonnyridge or such other person under any material instrument, document, agreement, or arrangement (including memorandums of understanding or joint venture agreements) to which Bonnyridge is a party or otherwise bound and all such material instruments, contracts, agreements, or arrangements (including memorandums of understanding or joint venture agreements) are in good standing and no event has occurred which with notice or lapse of time or both would constitute such a default by Bonnyridge or, to the best of the Vendor’s knowledge, any
other party.

 

	
3.19  

	
No order ceasing, halting or suspending trading in securities of Bonnyridge nor prohibiting the sale of any of the securities of Bonnyridge has been issued to and is outstanding against Bonnyridge or its directors, officers or promoters.

 

	
3.20  

	
Bonnyridge does not have any loans or other indebtedness outstanding to the Vendor or any other person other than as disclosed in recent financial statements of Bonnyridge and pursuant to operations and exploration initiatives normal to that business with such amounts to be detailed by Bonnyridge before the Closing Date.

 

	
3.21  

	
Bonnyridge has filed all tax returns which are required to be filed, or has requested extensions thereof, and has fully paid all taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable.  Bonnyridge has established on its books and records reserves which are adequate for the payment of all taxes not yet due and payable and there are no liens for taxes on the assets of Bonnyridge except for taxes not yet due, and there are no audits of any tax returns of Bonnyridge which are known by the Vendor to be pending, and there are no claims which have been or may be asserted relating to any such tax returns which, if determined
adversely, would result in the assertion by any governmental agency of any deficiency which would have a material adverse effect on the properties, business or assets of Bonnyridge.

 

	
3.22  

	
The Vendor is not a non-resident of Canada within the meaning of the Income Tax Act (Canada).

 

	
3.23  

	
No certificate furnished by or on behalf of the Vendor to the Purchaser at the Closing in respect of the representations, warranties or covenants of the Vendor will contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained in the certificate not misleading.

 

  

5

  

 

	
4.  

	
Covenants of the Vendor

 

	
4.1  

	
Conduct of Business.  Until the Closing, the Vendor shall use its best efforts to preserve its ownership interest in the Shares.

 

	
4.2  

	
Access by Purchaser.  The Vendor shall give to the Purchaser and Purchaser’s counsel, accountants and other representatives full access, during normal business hours throughout the period prior to the Closing, to all of the properties, books, contracts, commitments and records of the Vendor relating to Bonnyridge and the Project, and shall furnish to the Purchaser during that period all such information as the Purchaser may reasonably request for the purposes of conducting its due diligence investigations.  All information provided or to be provided by or on behalf
of the Vendor will be true, accurate and complete in all material respects as at the Time of Closing.  The Vendor will promptly provide to the Purchaser for review any new information relating to the Shares, the Project or the Transaction that becomes available prior to the Time of Closing.

 

	
4.3  

	
Procure Consents.  The Vendor shall diligently take all reasonable steps required to obtain, before the Closing, any consent or approval (the “Consents”) to the transfer of title to the Shares that may be required.

 

	
4.4  

	
Closing Documents.  The Vendor shall execute, as required, and deliver at Closing all of the Vendor’s Documents (as defined in section 10.2).

 

	
4.5  

	
Covenant of Indemnity.  The Vendor shall indemnify and hold harmless the Purchaser from and against:

 

	
(a)  

	
any and all liabilities, whether accrued, absolute, contingent or otherwise, existing at the Closing and which are not agreed to be assumed by the Purchaser under this Agreement;

 

	
(b)  

	
any and all damage or deficiencies resulting from any misrepresentation, breach of warranty or non-fulfilment of any covenant on the part of the Vendor under this Agreement or from any misrepresentation in or omission from any certificate or other instrument furnished or to be furnished to the Purchaser under this Agreement; and

 

	
(c)  

	
any and all claims, actions, suits, demands, costs and legal and other expenses incident to any of the foregoing.

 

	
5.  

	
Representations and Warranties of the Purchaser

 

The Purchaser represents and warrants to the Vendor as follows, with the intent that the Vendor will rely on these representations and warranties in entering into this Agreement and in the Closing.

 

	
5.1  

	
Status of Purchaser.  The Purchaser is a corporation duly incorporated, validly existing and in good standing under the laws of Canada and with respect to the filing of annual returns, has the power and capacity to enter into this Agreement and carry out its terms.

 

	
5.2  

	
Authority to Purchase.  The execution and delivery of this Agreement and the Closing have been duly and validly authorized by all necessary corporate action on the part of the Purchaser, and this Agreement constitutes a legal, valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms except as limited by laws of general application affecting the rights of creditors.

 

  

6

  

 

	
6.  

	
Covenants of the Purchaser

 

	
6.1  

	
Consents.  The Purchaser shall at the request of the Vendor execute and deliver such applications for consent and such assumption agreements, and provide such information as may be necessary to obtain the consents referred to in section 4.3 and will assist and co-operate with the Vendor in obtaining the consents.

 

	
6.2  

	
Closing Documents.  The Purchaser shall execute, as required, and deliver at Closing all of the Purchaser’s Documents (as defined in section 10.3).

 

	
6.3  

	
Covenant of Indemnity.  The Purchaser shall indemnify and hold harmless the Vendor from and against:

 

	
(a)  

	
any and all damage or deficiencies resulting from any misrepresentation, breach of warranty or non-fulfilment of any covenant on the part of the Purchaser under this Agreement or from any misrepresentation in or omission from any certificate or other instrument furnished or to be furnished to the Vendor under this Agreement; and

 

	
(b)  

	
any and all claims, actions, suits, demands, costs and legal and other expenses incident to any of the foregoing.

 

	
7.  

	
Survival of Representations, Warranties and Covenants

 

	
7.1  

	
Vendor’s Representations, Warranties and Covenants.  All statements contained in any certificate or other instrument delivered by or on behalf of the Vendor under this Agreement or in connection with the Transaction shall be deemed to be representations and warranties by the Vendor.  All representations, warranties, covenants and agreements made by the Vendor in or pursuant to this Agreement shall, unless otherwise expressly stated, survive Closing and any investigation at any time made by or on behalf of the Purchaser, and shall continue in full force and effect for
the benefit of the Purchaser for a period of one calendar year from the Closing Date.

 

	
7.2  

	
Purchaser’s Representations, Warranties and Covenants.  All representations, warranties, covenants and agreements made by the Purchaser in or pursuant to this Agreement shall, unless otherwise expressly stated, survive Closing and any investigation at any time made by or on behalf of the Vendor, and shall continue in full force and effect for the benefit of the Vendor for a period of one calendar year from the Closing Date.

 

	
8.  

	
Conditions Precedent to the Obligations of the Purchaser

 

All obligations of the Purchaser under this Agreement are subject to the fulfilment at or before the Closing of the following conditions:

 

	
(a)  

	
the Vendor’s representations and warranties contained in this Agreement and in any certificate or document delivered under this Agreement or in connection with the Transaction will be true at and as of the Closing as if such representations and warranties were made at and as of such time;

 

  

7

  

 

	
(b)  

	
the Vendor will have performed and complied with all agreements, covenants and conditions required by this Agreement to be performed or complied with by it before or at the Closing;

 

	
(c)  

	
the Vendor will have delivered to the Purchaser a certificate of an officer of the Vendor, dated the Time of Closing, certifying in such detail as the Purchaser, acting reasonably, may specify to the fulfilment of the conditions set forth in sections 8(a) and 8(b);

 

	
(d)  

	
the Purchaser will have received duly executed copies of the Consents;

 

	
(e)  

	
the Vendor will have delivered to the Purchaser a favourable legal opinion of the Vendor’s Botswana legal counsel addressed to the Purchaser and its legal counsel and dated as of the Closing Date, in form and content acceptable to the Purchaser and its legal counsel, acting reasonably, relating to title to the Licenses and Bonnyridge’s ability to conduct the activities it is presently conducting and those activities that are anticipated to be conducted in respect thereof (the “Title Opinion”);

 

	
(f)  

	
the Vendor will have delivered to the Purchaser a favourable legal opinion of the Vendor’s Botswana legal counsel addressed to the Purchaser and its legal counsel and dated as of the Closing Date, in form and content acceptable to the Purchaser and its legal counsel, acting reasonably, relating to corporate status of Bonnyridge (the “Corporate Opinion”); and

 

	
(g)  

	
the Purchaser being satisfied, in its sole discretion, acting reasonably, with the results of its due diligence review and investigation with respect to Bonnyridge.  If the Purchaser is not so satisfied, the Purchaser shall be entitled to terminate its obligations under this Agreement by notice to that effect given to the Vendor any time prior to the Time of Closing.

 

Each of the foregoing conditions are for the exclusive benefit of the Purchaser and any such condition may be waived in whole or in part by the Purchaser at or before the Time of Closing by delivering to the Vendor a written waiver to that effect signed by the Purchaser.

 

	
9.  

	
Conditions Precedent to the Obligations of the Vendor

 

All objections of the Vendor under this Agreement are subject to the fulfilment, before or at the Closing, of the following conditions:

 

	
(a)  

	
the Purchaser’s representations and warranties contained in this Agreement will be true at and as of the Closing as though such representations and warranties were made as of such time;

 

	
(b)  

	
the Purchaser will have performed and complied with all covenants, agreements and conditions required by this Agreement to be performed or complied with by it at or before the Closing;

 

	
(c)  

	
the Purchaser will have delivered to the Vendor a certificate of an officer of the Purchaser, dated the Time of Closing, certifying the fulfillment of the conditions set forth in sections 9(a) and 9(b); and

 

	
(d)  

	
all consents or approvals required to be obtained by the Vendor for the purpose of selling, assigning or transferring the Shares will have been obtained, provided that this condition may only be relied upon by the Vendor if the Vendor has diligently exercised its reasonable commercial best efforts to procure all such consents or approvals and the Purchaser has not waived the need for all such consents or approvals.

 

Each of the foregoing conditions are for the exclusive benefit of the Vendor and any such condition may be waived in whole or part by the Vendor at or before the Time of Closing by delivering to the Purchaser a written waiver to that effect signed by the Vendor.

 

  

8

  

 

	
10.  

	
Closing

 

	
10.1  

	
Time of Closing.  Subject to the terms and conditions of this Agreement, the Closing shall be held at 11:00 a.m., (Vancouver time) at the offices of the Purchaser’s counsel at such other time and date agreed upon in writing between the parties (the “Time of Closing”).

 

	
10.2  

	
Documents to be Delivered by the Vendor.  At the Closing the Vendor will deliver or cause to be delivered to the Purchaser:

 

	
(a)  

	
the Title Opinion;

 

	
(b)  

	
the Corporate Opinion;

 

	
(c)  

	
the certificates representing the Shares along with an executed share transfer power of attorney or other suitable document to transfer title to the Shares appropriate to effectively vest a good and marketable title to the Shares in the Purchaser to the extent contemplated by this Agreement, and immediately registrable with any required governmental or other authority;

 

	
(d)  

	
the certificate to be given under section 8(c);

 

	
(e)  

	
certified copies of resolutions of each of the shareholders and directors of the Vendor authorizing the execution, delivery and implementation of this Agreement and of all documents to be delivered by the Vendor under this Agreement;

 

	
(f)   

	
the Consents if such have not already been provided to the Purchaser prior to the Time of Closing; and

 

	
(g)  

	
a duly executed receipt for the Purchase Price.

 

The parties may agree in writing to waive any deliveries or conditions precedent to effect the Closing so long as both parties are in agreement.

 

(the “Vendor’s Documents”).

 

	
10.3  

	
Documents to be Delivered by the Purchaser.  At the Closing the Purchaser will deliver or cause to be delivered:

 

	
(a)  

	
the certificate to be given under section 9(c);

 

	
(b)  

	
a certified cheque or bank draft made payable to “McMillan LLP in trust” representing the Purchase Price payable under this Agreement, or such other method of payment of the same amount against delivery of the Shares as the Vendor may accept; and

 

	
(c)  

	
certified copies of a resolution of the directors of the Purchaser authorizing the execution, delivery and implementation of this Agreement and of all documents to be delivered by the Purchaser under this Agreement.

 

  

9

  

 

(the “Purchasers Documents”)

 

The parties may agree in writing to waive any deliveries or conditions precedent to effect the Closing so long as both parties are in agreement.

 

	
11.  

	
Further Assurances

 

The parties will execute such further and other documents and do such further and other things as may be necessary to carry out and give effect to the intent of this Agreement.

 

	
12.  

	
Notice

 

All notices, requests, demands or other communications required or permitted to be given by any party to another pursuant to this Agreement shall be given in writing and delivered by personal service or facsimile, addressed as follows:

 

to the Purchaser at:

Pinette Copper Corp.

Bay Adelaide Centre

P.O. Box 2900

333 Bay Street, Suite 2900

Toronto, Ontario  M5H 2T4

Attention: Jaime McVicar, c/o Heenan Blaikie - jmcvicar@heenan.ca

Tel:              (416) 360-6336

Fax:              (416) 360-8425

 

to the Vendor at:

 

Sono Resources Inc.

Suite 880 – 666 Burrard street

Vancouver, BC  V6C 2X8

 

Attention:  President

Tel:               (604) 662 3660

Fax:               (604) 662 3630

 

  

10

  

 

subject to any notice of change of address or fax number given in accordance herewith, any notice shall be deemed to have been given and received:

 

	
(a)  

	
if personally delivered, on the day of personal actual delivery to the recipient party, provided that if such date is a day other than a Saturday, Sunday or a day on which banks in Vancouver, British Columbia are generally closed for business (a “Business Day”) such notice shall be deemed to have been given and received on the first Business Day, following the date of personal service; or

 

	
(b)  

	
if sent by facsimile transmission, on the first Business Day, following the date of transmission.

 

	
13.  

	
Arbitration

 

If any controversy, dispute, claim, question or difference (a “Dispute”) arises with respect to this Agreement or its performance, enforcement, breach, termination or validity, the parties shall use their best efforts to settle the Dispute and to this end they shall consult and negotiate with each other, in good faith and understanding of their mutual interests, to find a just and equitable solution satisfactory to both parties; provided, save as expressly otherwise provided herein if the parties are unable within a period of 15 days following first notice of the Dispute by one party to the other, to attain resolution of the Dispute there upon
written notice by one party to the other, the Dispute shall be settled by the arbitration in Vancouver, British Columbia of a single arbitrator, in accordance with the provisions of the Commercial Arbitration Act (British Columbia), which decision shall include the question of costs and shall be final and binding on the parties.  Should a Dispute arise between the parties, both parties shall be responsible to pay their equal share of all costs, fees, and expenses incurred as a result of the Arbitration, mediation, or dispute resolution.

 

	
14.  

	
Amendment

 

No alteration, amendment, modification or interpretation of this Agreement or any provision of this Agreement shall be valid and binding upon the parties hereto unless such alteration, amendment, modification or interpretation is in written form executed by the both parties.

 

	
15.  

	
Entire Agreement

 

This Agreement constitutes the entire agreement between the parties and there are no representations or warranties, express or implied, statutory or otherwise and no collateral agreements other than as expressly set forth or referred to in this Agreement.

 

	
16.  

	
Time of the Essence

 

Time will be the essence of this Agreement.

 

  

11

  

 

	
17.  

	
Applicable Law

 

This Agreement will be governed by and interpreted in accordance with the laws of British Columbia.

 

	
18.  

	
Counterparts.

 

This Agreement may be executed in any number of counterparts, each of which when delivered, either in original, facsimile form, or other electronic transmission capable of producing a printed signature, shall be deemed to be an original and all of which together shall constitute one and the same document that is a valid and binding agreement between the Vendor and the Purchaser in accordance with the terms hereof.

 

	
19.  

	
Successors and Assigns.

 

The terms and conditions of this Agreement shall be binding upon and enure to the benefit of the Vendor and the Purchaser and their respective successors and assigns.  Except as otherwise provided in this Agreement, this Agreement shall not be assignable or transferable by any party without the written consent of the other party hereto.

 

	
20.  

	
Survival.

 

This Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the Transaction as described herein.

 

	
21.  

	
Currency.

 

All dollar amounts referred to herein are in U.S. dollars.

 

	
22.  

	
Statutory References.

 

Any reference to a statute or enactment herein is a reference to a statute or enactment as amended.

 

	
23.  

	
Headings

 

The headings appearing in this Agreement are inserted for convenience of reference only and will not affect the interpretation of this Agreement.

 

  

12

  

AS EVIDENCE OF THEIR AGREEMENT the parties have executed this Agreement as of the day and year first above written.

 

	
SONO RESOURCES INC.

	 
	 	 	 
	
By: 

	 	 
	 	Name: Gary Powers	 
	 	Title: President	 
	 	 	 
	 	 	 
	PINETTE COPPER CORP.	 
	 	 	 
	By:	 	 
	 	Name: Marc Paul Lindsay	 
	 	Title: Director	 

 

  

13

  

 

SCHEDULE A

THE LICENSES

 

	
Company

	 	
PL Number

	 	
Size km2

	 	
Date

Issued

	 	
Date

Renewal

	 	
Explore 

Spend YR1

	 	
Explore 

Spend YR2

	 	
Explore 

Spend YR3

	 
	
Bonnyridge

	 	
PL700/2009

	 	983	 	
1 Oct 2009

	 	
30 Sept 2012

	 	P100000	 	P300000	 	P600000	 
	
Bonnyridge

	 	
PL701/2009

	 	992.2	 	
1 Oct 2009

	 	
30 Sept 2012

	 	P100000	 	P300000	 	P600000	 
	
Bonnyridge

	 	
PL702/2009

	 	990.4	 	
1 Oct 2009

	 	
30 Sept 2012

	 	P100000	 	P300000	 	P600000	 

 

 

 

14

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