Document:

EXHIBIT 10

             EXHIBIT 10.1 TECHNOLOGY PURCHASE AGREEMENT

                         TECHNOLOGY PURCHASE AGREEMENT

This Agreement made this 

27th

 day of APRIL , 2004.

BETWEEN:

QUADRA VENTURES, INC., a Nevada corporation having a Registered and Records Office located at: 50 Liberty Street West, Suite 880 

Reno, Nevada USA, 89501

(hereinafter referred to as the "Purchaser")

OF THE FIRST PART

AND:                           3493734 MANITOBA, LTD. A Manitoba corporation

 having a place of business located at:

387 Broadway

 Winnipeg, Manitoba

Canada, R3C 0V5

(hereinafter collectively referred to as the "Vendor")

OF THE SECOND PART

WHEREAS the Vendor has developed certain information, expertise,

  know-how, show-how related to a proprietary Soft Ware Program,

 marketed under the trade name “ Forcefield”.  (collectively referred to as

 the “Technology”).

AND WHEREAS the Vendor has utilized the Technology to develop and

Market this Soft Ware Program.

AND WHEREAS the Vendor wishes to sell and the Purchaser wishes to 

                       purchase the Technology and related Software programs.

NOW THEREFORE this Agreement witnesses that in consideration of the 

premises, and of the mutual covenants and agreements herein contained and other 

good and valuable consideration, the receipt and sufficiency of which is hereby 

acknowledged the parties hereto have agreed to and do hereby agree as follows:

1.

DEFINITIONS

1.1

In this Agreement, unless a contrary intention appears, the following words and phrases  shall mean:

a.

“Technology” means and shall include any Patents and all of the information, data, schematics blueprints, drawings, registered and unregistered trademarks, trade-names, copyrights, designs expertise, and know-how of every nature and kind related to this Soft Ware Program, held by the Vendor either directly or indirectly and shall include any improvements modifications or variations thereto.

            b. "Net Sales Revenue" shall have the meaning as set out in Schedule "A"

 

2.

PURCHASE AND SALE OF ASSETS

0.1

     Upon the terms and subject to the conditions hereof, the Purchaser agrees to 

              purchase, and the Vendor agrees to sell, assign and transfer to the Purchaser the 

              Technology. 

0.1

the parties shall, enter into such further agreements and execute any and all 

            documents as may be necessary and reasonably required to ensure that ownership

            of the Technology vests and remains with the Purchaser. 

3.

PURCHASE PRICE

0.1

      The Vendor agrees to sell and the Purchaser agrees to purchase the Technology 

              from the Vendor for the following consideration:

a.

The sum of SEVEN THOUSAND FIVE HUNDRED USD ($7,500)  $2500.00 USD payable upon execution of this agreement, and the additional sum of $5,000.00 payable at the closing of this transaction; and

b.

ONE HUNDRED THOUSAND (100,000) Common Shares in the capital stock of the Purchaser on the Closing Date; and

a.

 A royalty of TWO (2%) PERCENT calculated on the Net Sales Revenue of any product that uses all or any portion of the Technology until, development costs incurred to date have been recovered to a maximum of USD TWO HUNDRED FIFTY THOUSAND ($250,000) DOLLARS. After which the royalty shell be reduced to ONE (1%) PERCENT; and

b.

TWO HUNDRED FORTY FIVE THOUSAND USD ($245,000)

In additional Software development costs to be managed and led

By the vendor.

a.1

      The royalty shall be paid quarterly in arrears following the first commercial sale 

             of products incorporating the Technology. 

4.

TAXATION

a.1

The Purchaser and the Vendor shall take such steps and execute such documents, and certifies and makes such elections pursuant to the Canada Customs and Revenue Agency (CCRA) as may be required in order to affect the transfer of the Technology in a  tax efficient manner such that the minimum tax liability will accrue to the parties.

a.2

The Vendor and the Purchaser covenant and agree that the purchase price of the Assets will be the aggregate fair market value thereof and further covenant and agree that if the CCRA or any other competent authority at any time proposes to issue or issues any assessment or assessments that would impose or imposes any liability for tax of anynature or kind on any of the parties hereto or on any other person on the basis that the aggregate fair market value of the property transferred herein is greater or lesser than the  amount stipulated in paragraph 3 hereof (hereinafter referred to as the "Stipulated Amount"), and in the event that the parties agree, or a competent tribunal finally adjudges that the aggregate fair market value of the property is a greater or lesser amount hereinafter referred to as the "Adjusted Amount") than the Stipulated Amount, then the  redemption amount in respect of the preferred shares in the capital stock of the Purchaser 

            will be determined by reference to the Adjusted Amount to the exclusion of the 

            Stipulated Amount and the Vendor and the Purchaser will do all such things and 

            perform all such acts as may be necessary to revise the redemption amount

            accordingly.

5. CLOSING 

5.01

The closing of the transaction of sale and purchase hereunder will take place on April 27, 2004 at the business offices of Gregory Yanke, Barrister and Solicitor of Vancouver British Columbia at  1:00p.m. (the "Closing Date").

6.

REPRESENTATIONS AND WARRANTIES

a.1

The Vendor represents and warrants to the Purchaser (and acknowledges that the 

             Purchaser has relied upon such representations and warranties in entering into this 

             Agreement) that except as disclosed herein:

a.

the Vendor has the power and capacity to own and dispose of the assets and to enter into this Agreement and to carry out its terms to the full extent;

b.

there are no actions, suits, judgments, litigation proceedings or investigations outstanding, pending or to the knowledge of the Vendor threatened against the technology , nor does the Vendor know  or have any reasonable grounds or know of any basis for any such actions, suits, litigation proceedings or investigations;

c.

all material transactions of the business have been properly and promptly recorded or filed in or with its respective books and records and the minute books of the business contain complete records of all meetings and proceedings of the Shareholders and Directors;

d.

the execution and delivery of this Agreement and the completion of the transactions contemplated hereby 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 effecting the rights of creditors and by general principals of equity;

e.

the Vendor warrants and represents that the Vendor has good and marketable title to the Technology and the Technology is free and clear of all liens, mortgages, charges, pledges, security interests, encumbrances or other claims whatsoever, other than leases and encumbrances disclosed herein;

f. 

the Vendor has taken all necessary and proper steps to register and to keep the patent in good standing and the vendor is not aware of any conflicting claims or patent applications .

g.

the Vendor is the sole owner of any copyright, patent, trademark, etc. and no other person(s) or party has advanced a claim of ownership or claiming an interest in the product, nor is any claim likely to be made in the future to the knowledge of the Vendor and there have been no legal proceedings or threats of legal proceedings of which involving the product of which the vendor is aware.

h.

neither the execution nor delivery of this Agreement nor the completion of the transactions contemplated hereby shall;

                      

i.

Violate any of the terms and provisions of any order, decree, statute, by-law or regulation agreement, covenant or restriction applicable to Vendor;

j.

the Vendor represents and warrants to the Purchaser and acknowledges that the Purchaser has relied upon same that the Vendor owns and has full and clear title to the Technology;

6.02

the Purchaser represents and warrants to The Vendor (and acknowledges that the Purchaser has relied upon such representations and warranties in entering into this Agreement) that except as disclosed herein:

(a)

the  company is duly organized, existing, in good standing and has the power, authority, and capacity to enter into this Agreement and to carry out the transactions contemplated by this Agreement, all of which have been duly and validly authorized by all requisite corporate proceedings

i.1

From the date hereof until the closing the Vendor shall diligently and in the manner of a  prudent businessperson in the ordinary course of business and will use its best efforts to  preserve the Technology.

7.

INDEMNIFICATION CLAUSE

.1

The Vendor covenants and agrees to indemnify and hold harmless the Purchaser from and against:

a.

any and all losses, damages 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 or omission from any certificate or other instrument, furnished or to be furnished from the Company hereunder; and

b.

all actions, suits, proceedings, demands, assessments, judgments, costs and legal and other expenses incidental to any of the foregoing, the cause of action, subject matter, or basis of which arose prior to March 1, 2004 and the Purchaser may, on notice in writing to the Vendor, settle such  claims and make any payment in relation thereof as the Purchaser sees fit.

.2

The Purchaser covenants and agrees to indemnify and hold harmless the Vendor from and against:

a.

any and all losses, damages 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 mission from any certificate or other instrument, furnished or to be furnished from the Company hereunder; and

b.

all actions, suits, proceedings, demands, assessments, judgments, costs and legal and other expenses incidental to any of the foregoing, the cause of action, subject matter, or basis of which arose after March 1, 2004 and the Vendor may, on notice in writing to the Purchaser, settle such claims  and make any payment in relation thereof as the Vendor sees fit.

8.

SURVIVAL

.1

Notwithstanding any enquiry or investigation by the Purchaser, the representation and warranties of the Vendor contained in this agreement shall survive its closing of the transactions contemplated by this agreement and shall continue in full force for the benefit of the Purchaser thereafter.

9.

NON-COMPETITION

9.01

The Vendor shall not, for a period of Three (3) years from the Closing Date, individually or in partnership or jointly or in conjunction with any company / person as principal, agent, employee, contractor, landlord, consultant, supplier, lender, financier, shareholder, or in any other manner, directly or indirectly, engage in, carry on or provide services to, be employed by or have an interest in, or otherwise be concerned with any other business in Canada and the United States of America which offers services or sells products that compete with the services and products resulting from the Technology whatsoever.

10.

ENTIRE AGREEMENT

10.01

This agreement constitutes the entire agreement between the parties hereto relating to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties and there are no general or specific warranties, representations or other agreements by or among the parties in connection with the entering into of this agreement or the subject matter thereof except as specifically set forth herein.

11.

SEVERABILITY

11.01 If any provisions of this agreement are held unenforceable or invalid by a Court of competent jurisdiction, the parties hereto acknowledge and agree that the enforceability or validity of the remaining provisions shall not be affected thereby.

12.

JURISDICTION

12.01

This agreement shall be governed by and in construed accordance with the laws of the State of Nevada and the parties hereto hereby submit to the jurisdiction of the Courts of the State of Nevada.

13.

TIME OF THE ESSENCE

.1

Time shall be of the essence in this agreement.

13.02  This agreement may be executed in counterpart and by facsimilie

14.

ENUREMENT

14.01

This agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

IN WITNESS WHEREOF THE PARTIES have hereunto set their hands and Corporate Seals, duly attested to be the hands of their properly authorized officers in their behalf on the day and year first above written.

Signed for and on behalf of

3493734 MANITOBA LTD.

By its authorized signatory

Per: /S/ Larry Cheret

Authorized Signatory

SIGNED, SEALED AND DELIVERED

)

By QUADRA VENTURES, INC. in the presence of:)

)

Kennedy Kerster

)

Name

)

)

Address

)         Per: /S/ Bruno Benedet

)

Occupation: Consultant

Bruno Benedet, President

#

SCHEDULE "A"

"Net Sales Revenue":  all revenues, receipts, monies and the fair market value of all other considerations, directly or indirectly collected or received, whether by way of cash or credit or any barter, benefit, advantage, or concession received by the Company or its affiliate companies from marketing, manufacturing, sale, or distribution of the products that incorporate all or a portion of the Technology, world wide less the following:

(i)

trade and quantity discounts actually given to the purchasers thereof to a maximum discount of 60%;

(ii)

all government taxes customs and excise, sales and value added taxes and other charges or governmental fees of every nature or kind (except for taxes on or measured by income);

(iii)

transportation and insurance charges and commissions in connection with the sale of Products; and

(iv)

credit allowances or refunds given on account of returned goods, up to a maximum of 5% of Net Sales Revenue.

                    EXHIBIT 23.1CONSENT OF AMISANO HANSON, CHARTERED ACCOUNTANTS

#AMENDED AND RESTATED

AMENDED AND RESTATED

CERTIFICATE OF RESOLUTION

OF BANCO SANTANDER PUERTO RICO

 

I, NICOLAS LOPEZ PEÑA, duly appointed Secretary of BANCO SANTANDER PUERTO RICO (the "Bank"), a bank organized and existing under the laws of the Commonwealth of Puerto Rico, HEREBY CERTIFY that the following resolutions were duly adopted by the Board of Directors of the Bank pursuant to the authority conferred upon the Board of Directors by the provisions of the Articles of Incorporation, as amended, at a meeting thereof duly held on June 9, 1998:
RESOLVED, that pursuant to the authority expressly vested in the Board of Directors of the Bank by Article FIFTH of its Articles of Incorporation, the Board of Directors hereby authorizes the issuance of up to 3,000,000 shares of its preferred stock, par value $25.00, liquidation preference $25.00 per share to be designated as Banco Santander Puerto Rico Noncumulative Perpetual Monthly Income Preferred Stock, Series A (the "Series A Preferred Stock").

The preferences, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption, of the shares of the Series A Preferred Stock are as follows:

1. Dividend Rights

	Holders of record of Series A Preferred Stock shall be entitled to receive noncumulative cash dividends payable monthly in arrears for each month at the Initial Dividend Rate or the Fixed Dividend Rate (as hereinafter defined) as applicable, when and as and if declared by the Board of Directors, or a duly authorized committee thereof, out of funds legally available therefor. Dividends on the Series A Preferred Stock will accrue from their date of issuance and will be payable monthly in arrears in United States dollars commencing on August 1st 1998, and for each month dividend period commencing on the first day of each month thereafter, and ending on and including the day next preceding the first day of the next Dividend Period (each, a "Dividend Period") to the holder of record of the Series A Preferred Stock a they appear on the books of the Bank on the second business day (as defined below), immediately preceding the relevant Dividend Payment Date (as defined below). Dividends so declared will be payable on the first day of each month commencing on August 1st, 1998 (each, a "Dividend Payment Date"). The amount of dividends payable per share of Series A Preferred Stock for each Dividend Period shall be computed on the basis of twelve 30-day months and a 360-day year. The amount of dividends payable for any period shorter than a full month dividend period will be computed on the basis of the actual number of days elapsed in such period.

	Holders of Series A Preferred Stock will not participate in dividends, if any, declared and paid on the common stock of the Bank (the "Common Stock"). Except as descried herein, holders of the Series A Preferred Stock will have no other right to participate in the profits of the Bank or to receive dividends. The right of holders of Series A Preferred Stock to receive dividends is noncumulative.

	If the Board of Directors of the Bank or an authorized committee thereof does not declare a dividend on the Series A Preferred Stock for a Dividend Period, then holders of the Series A Preferred Stock will have no right to receive a dividend for that Dividend Period, and the Bank will have no obligations to pay the dividend accrued for that Dividend Period, whether or not dividend are declared for any subsequent Dividend Period.

	dividends are not paid in full on the Series A Preferred Stock and on any other preferred shares stock of the Bank ranking on a parity as to the payment of dividends with the Series A Preferred Stock, all dividends declared upon the Series A Preferred Stock and any such other shares of Preferred Stock will be declared pro rata so that the amount of dividends declared per share on the Series A Preferred Stock and any such other shares of Preferred Stock will in all cases bear to each other the same ratio that the liquidation preference per share of the Series A Preferred Stock and any such other Preferred Stock bear to each other.

	So long as any shares of the Series A Preferred Stock remain outstanding, unless the full dividends on all outstanding shares of Series A Preferred Stock have been declared and paid or set apart for payment for the current Dividend Period and have been paid for all Dividend Periods for which dividends were declared and not paid, (i) no dividend (other than a dividend in Common Stock or in any other stock of the Bank ranking junior to the Series A Preferred Stock as to dividends or distribution of assets upon liquidation, dissolution or winding up) may be declared and paid, or set apart for payment, or other distribution declared or made, on the Common Stock or on any other stock ranking junior to or on a parity with the Series A Preferred Stock as to dividends or distribution of assets upon liquidation, dissolution or winding up and (ii) no shares of Common Stock or shares of any other stock of the Bank ranking junior to or on a parity with Series A Preferred Stock as to dividends or distribution of assets upon liquidation, dissolution or winding up, will be redeemed, purchased or otherwise acquired for any consideration by the Bank or any subsidiary of the Bank (nor may any moneys be paid to or made available for a sinking or other fund for the redemption, purchase or other acquisition of any shares of any such stock), other than by conversion into or exchange for Common Stock or any other stock of the Bank ranking junior to the Series A Preferred Stock as to dividends or distribution of assets upon liquidation, dissolution or winding up.

	When a Dividend Payment Date falls on a day that is not a Business Day, without any interest or accumulation on payment in respect of any such delay. A "Business Day" is a day on which the New York Stock Exchange is open for trading and which is not a Saturday, Sunday or other day on which the banks in the Commonwealth of Puerto Rico or New York City are authorized or obligated by law to close.

2. Dividend Rate

	The Board of Directors or a duly authorized committee thereof ("Pricing Committee") shall set an initial annual dividend rate per share for the Series A Preferred Stock at the time of issuance (the "Initial Dividend Rate").

	The Initial Dividend Rate shall be subject to only one change by the Pricing Committee prior to the sale of Series A Preferred Stock to the public by one or more shareholder of Series A Preferred Stock that hold in the aggregate more than 50% of the outstanding shares of the Series A Preferred Stock. Such one time change shall result in a fixed dividend rate (the "Fixed Dividend Rate") which may not be changed by Pricing Committee thereafter. When the Pricing Committee establishes the Fixed Dividend Rate it shall notify the Fixed Dividend Rate to holders of Series A Preferred Stock.

	The Pricing Committee may set the Initial Dividend Rate and the Fixed Dividend Rate from a minimum of 3% per annum to a maximum rate equal to the annual Price Rate charged by the Bank to its clients plus 10% (the "Rate Range").

3. Conversion; Exchange

The Series A Preferred Stock will not be convertible into, or exchangeable for any

other securities of the Bank. 

4. Redemption at the Option of the Bank

	The shares of the Series A Preferred Stock are not redeemable prior to July 1st, 2003. On or after such date, the shares of Series A Preferred Stock will be redeemable in whole or in part from time to time at the option of the Bank, upon not less than 30 nor more than 60 days' notice, by mail, at the redemption prices to be determined by the Pricing Committee and set forth in the Offering Circular used to sell the Preferred Stock to public, subject to the prior approval of the FDIC and the Commissioner, plus an amount equal to dividends declared and unpaid for the then current Dividend Period (without accumulation of accrued and unpaid dividends for prior Dividend Period (without accumulation of accrued and unpaid dividends for prior Dividend Periods and without interest) to the date fixed for redemption.

	In no event shall the Bank redeem less than all he outstanding Series A Preferred Stock, unless dividends for the then-current Dividend Period to the date fixed for redemption for such series shall have been declared and paid or set apart for payment on all outstanding Series A Preferred Stock, provided however, that the foregoing provisions will not prevent, if otherwise permitted, the purchase or acquisition by the Bank of Series A Preferred Stock pursuant to a tender or exchange offer made on the same terms to holders of all the outstanding Series A Preferred Stock and mailed to the holders of record of all such outstanding shares at such holders' address as the same appear on the books of the Bank; and provided, further, that if some, but less than all, of the Series A Preferred Stock are to be purchased or otherwise acquired by the Bank, the Series A Preferred Stock so tendered will be purchased or otherwise acquired by the Bank on a pro rata basis (with adjustments to eliminate fractions) according to the number of such shares tendered by each holder so tendering Series A Preferred Stock for such purchase or exchange. 

	In the event that less than all of the outstanding shares of the Series A Preferred Stock are to be redeemed in any redemption at the option of the Bank, the total number of shares to be redeemed in such redemption shall be determined by the Board of Directors and the shares to be redeemed shall be allocated pro rata or by lot as may be determined by the Board of Directors or by such other method as the Board of Directors may approve and deem equitable, including any method to conform to any rule or regulation of any national or regional stock exchange or automated quotation system upon which the shares of the Series A Preferred Stock may at the time be listed or eligible for quotation.

	The Bank may redeem the Series A Preferred Stock without ever having declared or paid a dividend on such stock.

	Notice of any proposed redemption shall be given by the Bank mailing a copy of such notice to the holders of record of the shares of Series A Preferred Stock to be redeemed, at their address of record, not more than 60 nor less than 30 days prior to the redemption date. The notice of redemption to each holder of shares of Series A Preferred Stock shall specify the number of shares of Series A Preferred Stock to be redeemed, the redemption date and the redemption price payable to such holder upon redemption and shall state that from and after said date dividends thereon will cease to accrue. If less than all the shares owned by a holder are then to be redeemed at the option of the Bank, the notice shall also specify the number of shares of Series A Preferred Stock which are to be redeemed and the numbers of the certificates representing such shares. Any notice which is mailed as herein provided shall be conclusively presumed to have duly given, whether or not the stockholder receives such notice. Failure to duly to give such notice by mail, or any defect in such notice, to the holders of any stock designated for redemption shall not affect the validity of the proceedings for the redemption of any other shares of Series A Preferred Stock.

Notice having been mailed as aforesaid, from and after the redemption date (unless default be made in the payment of the redemption price for any shares to be redeemed), all dividends on the shares of Series A Preferred Stock called for redemption shall cease to accrue and all rights of the holders of such shares as stockholders of the Bank by reason of the ownership of such shares (except the right to receive the redemption price, on presentation and surrender of the respective certificates representing the redeemed shares) shall cease on the redemption date, and such shares shall not after the redemption date be deemed to be outstanding. In case less than all the shares represented by any such certificate are redeemed, a new certificate shall be issued without cost to the holder thereof representing the unredeemed shares, if requested by such shareholder.

	At its option, the Bank may, on or prior to the redemption date, irrevocably deposit with a paying agent (a "Paying Agent"), having surplus and undivided profits aggregating at least $50 million, funds necessary for such redemption in trust, with irrevocable instructions and authorization that such funds be applied to the redemption of the shares of Series A Preferred Stock called for redemption upon surrender of certificates for such shares ( properly endorsed or assigned for transfer. If notice of redemption shall have been mailed and such deposit is made and the funds so deposited are made immediately available to the holders of the shares of the Series A Preferred Stock to be redeemed, the Bank shall thereupon be released and discharged (subject to the provisions described in the next paragraph) from any obligation o make payment of the amount payable upon redemption of the shares of the Series A Preferred Stock to be redeemed. Notwithstanding that any certificates for such shares shall not have been surrendered for cancellation, the shares represented thereby shall no longer be deemed to be outstanding. Thereupon, the holders of such shares shall look only to the Paying Agent for such payment. Thereafter, all rights of the holders of such shares as holders of Series A Preferred Stock (except the right to receive the redemption price, but without interest) will cease.

	Any funds remaining unclaimed at the end of two years from and after the redemption date in respect of which such funds were deposited shall be returned to the Bank forthwith and thereafter the holders of shares of the Series A Preferred Stock called for redemption with respect to which such funds were deposited shall look only to the Bank for the payment of the redemption price thereof. Any interest accrued on any funds deposited with the Paying Agent shall belong to the Bank and shall be paid to it from time to time on demand.

	Any shares of the Series A Preferred Stock which shall at any time have been redeemed shall, after such redemption, have the status of authorized but unissued shares of Preferred Stock, without designation as to series, until such shares are once more designated as part of a particular series by the Board of Directors.

5. Voting Rights

	Except as indicated herein, or except as required by applicable law, the holders of the Series A Preferred Stock will not be entitled to receive notice of or attend or vote at any meeting of the stockholders of the Bank.

	A "Voting Event" will be deemed to have occurred in the event that dividends payable on any share or shares of Series A Preferred Shares shall not be declared and paid at the stated rate for the equivalent of eighteen full monthly Dividend Periods (whether or not consecutive). A Voting Event will be deemed to have been terminated when dividends have been paid regularly for twelve consecutive monthly Dividend Periods, subject always to the revesting of the right of holders of the Series A Preferred Stock voting as a class with the holders of any other preferred stock, to elect two directors as provided herein in the event of any future failure on the part of the Bank to pay dividends at the stated rate for any eighteen full monthly Dividend Period, (whether or not consecutive).

	If a Voting Event occurs, the holders of outstanding shares of the Series A Preferred Stock, together with the holders of shares of any one or more other series of preferred stock entitled to vote for the election of directors in the event of any failure to pay dividends, acting as a single class will be entitled, by written notice to the Bank given by the holders of a majority in liquidation preference of such shares or by ordinary resolution passed by the holders of a majority in liquidation preference, such shares present in person or by proxy at a separate special meeting of such holders convened for the purpose, to appoint two additional members of the Board of Directors of the Bank, to remove any such member from office and to appoint another person in place of such member. Not later than 30 days after such entitlement arises, if written notice by a majority of the holders of such shares has not been given as provided for in the preceding sentence, the Board of Directors or an authorized committee thereof will convene a separate special meeting for the above purpose. If the Board of Directors or such authorized committee fails to convene such meeting within such 30-day period, the holders of 10% of the outstanding shares of the Series A Preferred Stock and any such other stock will be entitled to convene such meeting. The provisions of the Articles of Incorporation and the By-Laws of the Bank relating to the convening and conduct of general meetings of stockholders will apply with respect to any such separate special meeting. Any member of the Board of Directors so appointed shall vacate office if, following the event which gave rise to such appointment, the Bank shall have resumed the payment of dividends in full on the Series A Preferred Stock and each such other series of stock for twelve consecutive monthly Dividend Periods. The Articles of Incorporation of the Bank provide for a minimum of five members of the Board of Directors and a maximum of eleven members.

	Any variation or abrogation of the rights, preferences and privileges of the Series A Preferred Stock by way of amendment of the Articles of Incorporation or otherwise (including, without limitation, the authorization or issuance of any shares of the Bank ranking, as to dividend rights or rights on liquidation, winding up and dissolution, senior to the Series A Preferred Stock) shall not be effective (unless otherwise required by applicable law) except with the consent in writing of the holders of at least two-thirds of the outstanding shares of the Series A Preferred Stock or with the sanction of a special resolution passed at a separate special meeting by the holders of at least two-thirds of the outstanding shares of the Series A Preferred Stock. Notwithstanding the foregoing, the Bank may without the consent or sanction of the holders of Series A Preferred Stock, authorize and issue shares of the Bank ranking as to dividend rights and rights on liquidation, winding up or dissolution, on a parity with or junior to the Series A Preferred Stock.

	No vote of the holders of the Series A Preferred Stock will be required for the Bank to redeem or purchase and cancel the Series A Preferred Stock in accordance with the Articles of Incorporation and the Authorizing Resolution.

	The Bank will cause a notice of any meeting at which holders of Series A Preferred Stock are entitled to vote to be mailed to each record holder of the Series A Preferred Stock. Each such notice will include a statement setting forth (i) the date of such meeting, (ii) a description of any resolution to be proposed for adoption at such meeting on which such holders are entitled to vote and (iii) instructions for deliveries of proxies.

5. Liquidation Preference

	In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Bank, the holders of shares of Series A Preferred Stock will be entitled to receive out of assets of the Bank available for distribution to stockholders, before any distribution of the assets is made to the holders of shares of the Common Stock or on any other class or series of stock of the Bank ranking junior to the Series A Preferred Stock as to such a distribution, an amount equal to $25.00 per share, plus an amount equal to dividends declared and unpaid for the then current Dividend Period(without accumulation of accrued and unpaid dividends for prior Dividends Periods) to the date fixed for payment of such distribution.

	If, upon any voluntary or involuntary liquidation, dissolution or winding up the Bank, the assets of the Bank are insufficient to make the full liquidation payment on the Series A Preferred Stock and liquidating payments or any other class or series of stock of the Bank ranking on a parity with the Series A Preferred Stock as to any such distribution, then such assets will be distributed among the holders of the Series A Preferred Stock and such other class or series of parity stock, ratably in proportion to the respective full preferential amounts to which they are entitled.

	After any liquidating payments, the holders of the Series A Preferred Stock will be entitled to no other payments. A consolidation or merger of the Bank with or into any other corporation or corporations or the sale, lease or conveyance, whether for cash, shares of stock, securities or properties, of all or substantially all the assets of the Bank will not be regarded a liquidation, dissolution or winding up of the Bank.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Corporation this 26th day of June, 1998.

 
Nicolás López Peña
Secretary

 

Affidavit # ______

 

Sworn and subscribed before me by Nicolás López Peña, of legal age, married, executive, resident of Toa Alta, Puerto Rico, in his capacity as Secretary of the Board of Directors of Banco

Santander Puerto Rico, personally known to me, this 26th day of June 1998, in San Juan, Puerto Rico.

 
NOTARY PUBLIC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]