Document:

Exhibit
4.33

This
document is important and requires your immediate attention. If you are in any
doubt as to how to deal with it, you should consult your investment dealer,
stock broker, bank manager trust company manager, accountant, lawyer or other
professional advisor. No securities regulatory authority has expressed an
opinion about the securities that are subject to this Offer and it is an
offence to claim otherwise.

This Offer has not been approved or
disapproved by any securities regulatory authority nor has any securities
regulatory authority passed upon the fairness or merits of the Offer or upon
the adequacy of the information contained in this document. Any representation
to the contrary is an offence.

September 12, 2007

NOTICE OF EXTENSION

by

YAMANA GOLD INC.

of its

OFFER TO PURCHASE

all of the outstanding common shares of

MERIDIAN GOLD INC.

on the basis of 2.235 Yamana common
shares

and Cdn$4.00 in cash
(the ”Offer Consideration”)

for each common share of
Meridian Gold Inc.

Yamana Gold Inc. (the “Offeror” or “Yamana”)
hereby gives notice that it is extending its offer, originally dated
July 19, 2007, as varied and extended by the Notice of Variation and
Extension (the “First Variation
and Extension”) dated August 14, 2007 (collectively
referred to herein as the “Offer”)
to purchase all of the outstanding common shares of Meridian Gold Inc. (“Meridian”), which includes common shares
that may become outstanding after the date of the Offer but before the expiry
time of the Offer upon exercise of stock options (“Options”) or other securities of Meridian that are convertible
into or exchangeable or exercisable for common shares, together with the
associated rights (the “SRP Rights”)
issued under the Shareholder Rights Plan of Meridian (collectively, the “Shares”), in order to extend the expiry of
the Offer to 8:00 p.m. (Toronto time) on
September 24, 2007.

THE OFFER HAS BEEN EXTENDED AND IS NOW OPEN FOR
ACCEPTANCE UNTIL 8:00 P.M. (TORONTO TIME) ON SEPTEMBER 24, 2007,
UNLESS FURTHER EXTENDED OR WITHDRAWN.

This Notice of Extension
should be read in conjunction with the Offer and Circular dated July 19,
2007, as amended by the First Variation and Extension (collectively referred to
herein as the “Offer and Circular”).
Except as otherwise set forth herein, the terms and conditions previously set
forth in the Offer and Circular and the related Letter of Transmittal and
Notice of Guaranteed Delivery continue to be applicable in all respects. All
references to the “Offer” in the Offer and Circular, the Letter of Transmittal,
the Notice of Guaranteed Delivery and this Notice of Extension mean the
original offer, as amended by the First Variation and Extension and this Notice
of Extension, and all references in such documents to the “Circular” mean the
original circular, as amended by the First Variation and Extension and this
Notice of Extension. Unless the context requires otherwise, capitalized terms
used herein but not defined herein have the respective meanings given to them
in the Offer and Circular.

The Dealer
Managers for the Offer are:

	
  In Canada

  	
   

  	
  In the
  United States

  
	
   

  	
   

  	
   

  
	
  Genuity Capital Markets

  Canaccord Capital Corporation

  	
   

  	
  Genuity
  Capital Markets USA Corp.

  Canaccord Adams Inc.

  

 

NOTICE TO
SHAREHOLDERS IN THE UNITED STATES

The Offer is
being made for the securities of a Canadian issuer and by a Canadian issuer
that is permitted, under a multijurisdictional disclosure system adopted by the
United States, to prepare the Offer and Circular, and this Notice of
Extension, in accordance with the disclosure requirements of Canada.
Shareholders should be aware that such requirements are different from those of
the United States. The financial statements included or incorporated by reference
in the Offer and Circular have been prepared in accordance with Canadian
generally accepted accounting principles, and may be subject to Canadian
auditing and auditor independence standards, and thus may not be comparable to
financial statements of United States companies.

Shareholders in
the United States should be aware that the disposition of Shares and the
acquisition of Yamana Common Shares by them as described in the Offer and
Circular may have tax consequences both in the United States and in Canada.
Such consequences may not be fully described herein and such Shareholders are
encouraged to consult their tax advisors. See “Canadian Federal Income Tax
Considerations” in Section 23 of the Circular and “United States
Federal Income Tax Considerations” in Section 24 of the Circular.

The enforcement
by Shareholders of civil liabilities under the United States federal
securities laws may be affected adversely by the fact that the Offeror is
incorporated under the laws of Canada, that some or all of its officers and
directors may be residents of jurisdictions outside the United States,
that the Canadian Dealer Managers for the Offer and some or all of the experts
named in the Offer and Circular may be residents of jurisdictions outside the
United States and that all or a substantial portion of the assets of the
Offeror and said persons may be located outside the United States.

The Offeror has
filed with the SEC a Registration Statement on Form F-10, as amended by
Amendment No. 1 dated August 14, 2007, Amendment No. 2 dated August 21, 2007
and Amendment No. 3 dated August 30, 2007 (collectively, the “Amended
Registration Statements”) and expects to mail this Notice of Extension to
Shareholders concerning the proposed business combination with Meridian.
SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE AMENDED
REGISTRATION STATEMENTS AND THE OFFER AND CIRCULAR AND ANY OTHER RELEVANT
DOCUMENTS TO BE FILED WITH THE SEC, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Investors and security holders will be able to obtain the
documents free of charge at the SEC’s website, www.sec.gov. In addition,
documents filed with the SEC by the Offeror will be available free of charge
from the Offeror. You should direct requests for documents to the Vice
President, Legal, General Counsel and Assistant Corporate Secretary of Yamana,
150 York Street, Suite 1102, Toronto, Ontario M5H 3S5, telephone
416-815-0220. To obtain timely delivery, such documents should be requested not
later than September 17, 2007, five business days before the
Expiry Date.

THE SECURITIES
OFFERED PURSUANT TO THE OFFER AND CIRCULAR HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SEC OR ANY UNITED STATES STATE SECURITIES COMMISSION NOR HAS
THE SEC OR ANY UNITED STATES SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THE OFFER AND CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENCE.

NOTICE TO
SHAREHOLDERS IN THE UNITED KINGDOM

The Offer and Circular does not
constitute a prospectus for the purposes of the Prospectus Rules published by
the Financial Services Authority of the United Kingdom (the “FSA”). Accordingly, the Offer and Circular,
as supplemented and amended by this Notice of Extension, have not been, and
will not be, approved by the FSA or by London Stock Exchange plc. No
action has been or is intended to be taken by Yamana or by Genuity Capital
Markets or Canaccord Capital Corporation, or any of their affiliated entities,
that would permit a public offer of Yamana Common Shares to be made in the
United Kingdom, which would require an approved prospectus to be made
available to the public in the United Kingdom (in accordance with the
United Kingdom Financial Services and Markets Act 2000 (“FSMA”) and the Prospectus Rules
(as hereinafter defined)) before such an offer was made. Accordingly, as
regards Shareholders resident in, or receiving the Offer or the Offer and
Circular in the United Kingdom (“UK
Shareholders”), the Offer is only being made to or directed at, and
deposits of Shares will only be accepted from, a UK Shareholder who is, and is
able to establish to the satisfaction of the Offeror that it is: (i) a
Qualified Investor acting as principal; (ii) a Qualified Investor which
operates in the financial markets acting on behalf of a person, not being a Qualified
Investor, on a discretionary basis concerning the acceptance of offers on that
person’s behalf; or (iii) acting on behalf, and on the instructions, of a
Qualified Investor (in which case the Offer is made to or directed at that
Qualified Investor). In addition, in the 

 i
 

 

United Kingdom, the Offer and Circular are being
distributed only to, and are directed only at, Qualified Investors (i) who
have professional experience in matters relating to investments falling within
Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005, as amended (the “Order”)
and Qualified Investors falling within Article 49(2)(a) to (d) of the
Order. A “Qualified Investor” is (i) a legal entity which is authorized or
regulated to operate in the financial markets or, if not so authorized or
regulated, whose corporate purpose is solely to invest in securities;
(ii) a legal entity which has two or more of: (1) an average of at
least 250 employees during the last financial year; (2) a total
balance sheet of more than € 43,000,000; and (3) an annual net
turnover of more than €50,000,000, in each case as shown in its last annual or
consolidated accounts; (iii) a person entered on the register of Qualified
Investors maintained by the FSA for this purpose pursuant to section 87R
of FSMA; or (iv) an investor authorized by a European Economic Area (“EEA”) State other than the
United Kingdom to be considered as a qualified investor for the purposes
of the Prospectus Directive (as defined herein), in each case within the
meaning and as more particularly described in section 86(7) of FMSA.
Accordingly, any UK Shareholder purporting to accept the Offer must provide
supporting evidence satisfactory to the Offeror that it is entitled to do so,
and the Offeror shall in its sole discretion be entitled to reject any such
purported acceptance of the Offer, as further described in the Offer and
Circular and in the Letter of Transmittal. Shareholders receiving the Offer in
the United Kingdom should consult with their legal advisers to determine
whether they (or any person on whose behalf they act) are able to receive
and accept the Offer. Further details in connection with the Offer and its
acceptance by UK Shareholders are set out in the Offer and Circular.

The Offer is not being made to or
directed at, and deposits of Shares will not be accepted from, any UK
Shareholder that is not an Eligible UK Shareholder.

Shareholders who
have validly deposited and not withdrawn their Shares need take no further
action to accept the Offer.
Shareholders who wish to accept the Offer must properly complete and execute
the Letter of Transmittal (printed on yellow paper in the case of all
Shareholders other than Eligible UK Shareholders and on green paper in the case
of Eligible UK Shareholders) (the “Letter
of Transmittal”) that accompanied the Offer and Circular (or a
manually signed facsimile thereof) and deposit it, together with the
certificates representing their Shares and all other required documents, with
Kingsdale Shareholder Services Inc. (the “Depositary” and the “Information
Agent”), at the office set out in the Letter of Transmittal in
accordance with the instructions in the Letter of Transmittal. Alternatively,
Shareholders may (1) accept the Offer in the United States by
following the procedures for book-entry transfer of Shares described under “Manner
of Acceptance — Acceptance by Book-Entry Transfer in the
United States” in Section 3 of the Offer; or (2) accept the
Offer where the certificates representing the Shares are not immediately available,
or if the certificates and all of the required documents cannot be provided to
the Depositary before the Expiry Time, by following the procedures for
guaranteed delivery described under “Manner of Acceptance — Procedure for
Guaranteed Delivery” in Section 3 of the Offer using the accompanying
notice of guaranteed delivery (the “Notice
of Guaranteed Delivery”) (printed on pink paper) (or a manually
signed facsimile thereof) that accompanied the Offer and Circular. Shareholders
will not be required to pay any fee or commission if they accept the Offer by
depositing their Shares directly with the Depositary or if they make use of the
services of a member of the Soliciting Dealer Group to accept the Offer.

Questions and requests for
assistance may be directed to the Dealer Managers, the Depositary and the
Information Agent. Additional copies of this document, the Offer and Circular,
the Letter of Transmittal and the Notice of Guaranteed Delivery may be
obtained without charge on request from the Dealer Managers or the Depositary
and Information Agent at their respective addresses shown on the last page of
this document.

STATEMENTS
REGARDING FORWARD-LOOKING INFORMATION

The Offer and Circular and this
Notice of Extension, including some of the information incorporated by
reference in the Offer and Circular, contain “forward-looking statements”
and “forward-looking information” under applicable United States and
Canadian securities laws concerning the proposed transaction and the business,
operations and financial performance and condition of the Offeror, Northern
Orion Resources Inc. (“Northern Orion”)
and Meridian and estimated production and mine life of the various mineral
projects of the Offeror, Northern Orion or Meridian. Statements concerning
mineral reserve and resource estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the mineralization that will
be

 ii
 

 

encountered if the property is developed. Except for
statements of historical fact relating to the companies, certain information
contained herein constitutes forward-looking statements. Forward-looking
statements are frequently characterized by words such as “plan,” “expect,” “project,”
“intend,” “believe,” “anticipate”, “estimate” and other similar words, or
statements that certain events or conditions “may” or “will” occur. Forward-looking
statements are based on the opinions and estimates of management at the date
the statements are made, and are based on a number of assumptions and subject
to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the
forward-looking statements. Assumptions upon which such forward-looking
statements are based include that the Offeror will be successful in acquiring
100% of the issued and outstanding Meridian shares, that all required third
party regulatory and governmental approvals to the transactions will be
obtained and all other conditions to completion of the transactions will be
satisfied or waived. Many of these assumptions are based on factors and events
that are not within the control of the Offeror and there is no assurance they
will prove to be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward-looking statements
include changes in market conditions, variations in ore grade or recovery
rates, risks relating to international operations, fluctuating metal prices and
currency exchange rates, changes in project parameters, the possibility of
project cost overruns or unanticipated costs and expenses, labour disputes and
other risks of the mining industry, failure of plant, equipment or processes to
operate as anticipated, the Yamana Common Shares issued in connection with the
Offer having a market value lower than expected, the businesses of the Offeror,
Meridian and Northern Orion not being integrated successfully or such
integration may be more difficult, time-consuming and costly than expected and
the expected combined benefit from the Northern Orion Transaction and/or the
Offer not being fully realized or realized within the expected time frame. See “Strategic
Rationale” in Section 5 of the Circular, “Purpose of the Offer” in
Section 6 of the Circular, “Plans for Meridian” in Section 6 of the
Circular and “Business Combination Risks” in Section 8 of the Circular as
well as those risk factors discussed or referred to in the annual Management’s
Discussion and Analysis and Annual Information Form for each of the Offeror, Northern
Orion and Meridian filed with the securities regulatory authorities in all
provinces of Canada and available under each of the company’s respective
profiles at www.sedar.com, and the Annual Report on Form 40-F of each
of the Offeror, Northern Orion and Meridian filed with the United States
Securities and Exchange Commission (the “SEC”)
under each of the company’s respective profile at www.sec.gov. These
factors are not intended to represent a complete list of the factors that could
affect the Offeror and the combination of the Offeror, Meridian and Northern
Orion. Additional factors are noted elsewhere in the Offer and Circular and in
the documents incorporated by reference.

Although the Offeror has
attempted to identify important factors that could cause actual actions, events
or results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The Offeror
undertakes no obligation to update forward-looking statements if
circumstances or management’s estimates or opinions should change except as
required by applicable securities laws. The reader is cautioned not to place
undue reliance on forward-looking statements. Any forward-looking
statements of facts related to Meridian are derived from Meridian’s publicly
filed reports.

INFORMATION
CONCERNING MERIDIAN

Except as otherwise indicated,
the information concerning Meridian contained in the Offer and Circular has
been taken from or is based upon publicly available documents and records on
file with the SEC, the Canadian securities regulatory authorities and other
public sources. Meridian has not reviewed the Offer and Circular and has not
confirmed the accuracy and completeness of the information in respect of
Meridian contained in the Offer and Circular. Although the Offeror has no
knowledge that would indicate that any statements contained herein concerning
Meridian taken from or based upon such documents and records are untrue or
incomplete, neither the Offeror nor any of its directors or officers assumes
any responsibility for the accuracy or completeness of such information,
including any of Meridian’s financial statements, or for any failure by
Meridian to disclose events or facts which may have occurred or which may
affect the significance or accuracy of any such information but which are
unknown to Meridian.

 iii
 

 

INFORMATION
CONCERNING NORTHERN ORION

Except as otherwise indicated,
the information concerning Northern Orion contained in the Offer and Circular
including information incorporated by reference, has been taken from or is
based upon publicly available documents and records on file with the SEC, the
Canadian securities regulatory authorities and other public sources. Northern
Orion has reviewed the Offer and Circular and confirmed the accuracy and
completeness of the information in respect of Northern Orion herein. Although
the Offeror has no knowledge that would indicate that any statements contained
herein concerning Northern Orion taken from or based upon such documents and
records are untrue or incomplete, neither the Offeror nor any of its directors
or officers assumes any responsibility for the accuracy or completeness of such
information, including any of Northern Orion’s financial statements, or for any
failure by Northern Orion to disclose events or facts which may have occurred
or which may affect the significance or accuracy of any such information but
which are unknown to Northern Orion.

NOTICE TO HOLDERS
OF OPTIONS

The Offer is made only for Shares
and is not made for any Options exercisable to acquire Shares. Any holder of
Options who wishes to accept the Offer should, to the extent permitted by the
terms of the security and applicable Law, exercise the Options in order to
obtain certificates representing Shares and deposit those Shares pursuant to
the Offer. Any such exercise must be completed sufficiently in advance of the
Expiry Time to assure the holder of such Options will have certificates
representing the Shares received on such exercise available for deposit before
the Expiry Time, or in sufficient time to comply with the procedures referred
to under “Manner of Acceptance — Procedure for Guaranteed Delivery” in
Section 3 of the Offer. If a holder of Options does not exercise such
Options before the Expiry Time, such Options will remain outstanding in
accordance with their terms and conditions, including with respect to term to
expiry, vesting and exercise prices, except that, to the extent permitted,
after completion of a Compulsory Acquisition or Subsequent Acquisition Transaction,
an option to acquire Shares will become an option or right to acquire a number
of Yamana Common Shares, as determined in accordance with the terms of the
Option. The tax consequences to holders of Options of exercising their Options
are not described in “Canadian Federal Income Tax Considerations” in
Section 23 of the Circular or “United States Federal Income Tax
Considerations” in Section 24 of the Circular. Holders of the Options
should consult their tax advisors for advice with respect to potential income
tax consequences to them in connection with the decision to exercise or not
exercise their Options.

REPORTING
CURRENCIES AND ACCOUNTING PRINCIPLES

Unless otherwise indicated, all
references to “Cdn$”, “$” or “dollars” in this Notice of Extension refer to
Canadian dollars and all references to “US$” refer to United States
dollars. Yamana’s financial statements that are included and/or incorporated by
reference in the Offer and Circular are reported in United States dollars
and are prepared in accordance with Canadian GAAP. Financial statements of
Northern Orion that are incorporated by reference in the Offer and Circular are
reported in United States dollars and are prepared in accordance with
Canadian GAAP. Certain of the financial information in the financial statements
is reconciled to US GAAP. For a discussion of the material measurement
differences between US GAAP and Canadian GAAP: (i) in the context of
Yamana, see Note 30 to Yamana’s audited consolidated financial
statements as at and for the year ended December 31, 2006; (ii) in
the context of Viceroy, see Note 11 to Viceroy’s audited consolidated
financial statements as at and for the year ended December 31, 2005; and
(iii) in the context of Northern Orion, see Note 16 to Northern
Orion’s audited consolidated financial statements as at and for the year ended
December 31, 2006.

 iv
 

 

NOTE CONCERNING
MINERAL RESOURCE CALCULATIONS

Information contained in the
Offer and Circular, by incorporation by reference or otherwise, and disclosure
documents of Yamana and Northern Orion that are filed with securities
regulatory authorities concerning mineral properties have been prepared in
accordance with the requirements of securities laws in effect in Canada, which
differ from the requirements of United States securities laws.

Without limiting the foregoing,
these documents use the terms “measured resources”, “indicated resources” and “inferred
resources”. United States investors are advised that, while such terms are
recognized and required by Canadian securities laws, the SEC does not recognize
them. Under United States standards, mineralization may not be classified
as a “reserve” unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time the reserve
determination is made. United States investors are cautioned not to assume
that all or any part of measured or indicated resources will ever be converted
into reserves. Further, inferred resources have a great amount of uncertainty
as to their existence and as to whether they can be mined legally or
economically. It cannot be assumed that all or any part of the inferred
resources will ever be upgraded to a higher category. Therefore,
United States investors are also cautioned not to assume that all or any
part of the inferred resources exist, or that they can be mined legally or
economically. Disclosure of contained ounces is permitted disclosure under
Canadian regulations; however, the SEC normally only permits issuers to report
resources as in place tonnage and grade without reference to unit measures.
Accordingly, information concerning descriptions of mineralization and
resources contained in these documents may not be comparable to information
made public by United States companies subject to the reporting and
disclosure requirements of the SEC.

National Instrument 43-101 Standards
of Disclosure for Mineral Projects (“NI 43-101”)
is a rule developed by the Canadian Securities Administrators, which
established standards for all public disclosure an issuer makes of scientific
and technical information concerning mineral projects. Unless otherwise
indicated, all resource estimates contained in the Offer and Circular, by
incorporation by reference or otherwise, have been prepared in accordance with
NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum
Classification System.

EXCHANGE RATES

On June 27, 2007, the date
of the announcement of the Offeror’s intention to make the Offer, the exchange
rate for one US dollar expressed in Canadian dollars based upon the noon buying
rates provided by the Bank of Canada was $1.0702.

The closing, high, low and
average exchange rates for the US dollar in terms of Canadian dollars for the
six months ended June 30, 2007, and the calendar years ended
December 31, 2006, December 31, 2005 and December 31, 2004, as
reported by the Bank of Canada, were as follows:

	
   

  	
   

  	
  Six Months Ended

  June 30, 2007

  	
   

  	
  Year Ended

  December 31, 2006

  	
   

  	
  Year Ended

  December 31, 2005

  	
   

  	
  Year Ended

  December 31, 2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Closing

  	
   

  	
  $

  	
  1.06

  	
   

  	
  $

  	
  1.17

  	
   

  	
  $

  	
  1.16

  	
   

  	
  $

  	
  1.20

  	
   

  
	
  High

  	
   

  	
  1.18

  	
   

  	
  1.17

  	
   

  	
  1.27

  	
   

  	
  1.40

  	
   

  
	
  Low

  	
   

  	
  1.06

  	
   

  	
  1.10

  	
   

  	
  1.15

  	
   

  	
  1.18

  	
   

  
	
  Average(1)

  	
   

  	
  1.14

  	
   

  	
  1.13

  	
   

  	
  1.21

  	
   

  	
  1.30

  	
   

  
														

(1)             Calculated
as an average of the daily noon rates for each period.

On September 11, 2007, the
noon rate of exchange as reported by the Bank of Canada for one US dollar
expressed in Canadian dollars was $1.04.

 v

NOTICE OF
EXTENSION

September 12,
2007

TO: THE
SHAREHOLDERS OF MERIDIAN

This Notice of Extension extends
the expiry of the Offer pursuant to which the Offeror is offering to purchase,
on the terms and subject to the conditions contained in the Offer and Circular,
all of the outstanding Shares, which includes Shares that may become
outstanding after the date of the Offer but before the Expiry Time of the Offer
upon exercise of Options or other securities of Meridian that are convertible
into or exchangeable or exercisable for Shares, as well as the Letter of
Transmittal and Notice of Guaranteed Delivery.

Except as otherwise set forth in
this Notice of Extension, the terms and conditions previously set forth in the
Offer and Circular, Letter of Transmittal and Notice of Guaranteed Delivery
continue to be applicable in all respects. This Notice of Extension should be
read in conjunction with the Offer and Circular, the Letter of Transmittal and
the Notice of Guaranteed Delivery.

All references to the “Offer” in the
Offer and Circular, the Letter of Transmittal, the Notice of Guaranteed
Delivery and this Notice of Extension mean the original offer dated
July 19, 2007 as amended by the First Variation and Extension and by
this Notice of Extension and all references in such documents to the “Circular”
mean the original circular dated July 19, 2007 as amended by the
First Variation and Extension and by this Notice of Extension. Capitalized
terms used in this Notice of Extension and not defined herein that are defined in
the Offer and Circular have the respective meanings ascribed thereto in the
Offer and Circular.

1.             Extension of the Offer

By notice given to the Depositary
on September 11, 2007, the Offeror has extended the expiry of the Offer to
8:00 p.m. (Toronto time) on September 24, 2007, unless the Offer is
further extended or withdrawn. Accordingly, the definition of “Expiry Date” in
the “Definitions” section of the Offer and Circular is deleted and replaced by
the following:

“Expiry Date” means September 24, 2007 or such later date or dates
as may be fixed by the Offeror from time to time as provided under “Extension,
Variation or Change in the Offer” in Section 5 of the Offer, unless the
Offer is withdrawn by the Offeror”.

In addition, all references to
September 7, 2007 in the Offer and Circular, the Letter of Transmittal and
the Notice of Guaranteed Delivery are amended to refer to
September 24, 2007.

2.             Recent Developments

On August 15, 2007, the
Offeror received listing approval from the New York Stock Exchange in
connection with the additional Yamana Common Shares to be issued in connection
with the Offer and the Northern Orion Transaction.

On August 22, 2007, the
shareholders of Northern Orion voted in favour of the Northern Orion
Transaction at a special meeting of Northern Orion shareholders.

On August 22, 2007, the
Offeror issued a press release announcing a positive construction decision for
the main Quebrada Del Diablo (QDD) deposit, which is the first of three mining
opportunities encompassed within the Offeror’s Gualcamayo project in San Juan,
Argentina. The construction decision is based on the results of a positive
feasibility study for the QDD deposit and on the formal approval for its
Gualcamayo Environmental Assessment report. The Offeror also announced the
receipt of a scoping study for the Amelia Inés and Magdalena deposits.

On August 27, 2007, the
Supreme Court of British Columbia granted its final order approving the
Northern Orion Transaction.

As of August 30, 2007, the
Offeror and Northern Orion agreed to terminate the Loan.

On August 30, 2007, the
Mexican Federal Competition Commission issued its final resolution authorizing
the three-way Business Combination transaction to proceed.

 1
 

 

On September 5, 2007, in
response to an application made by the Offeror to the Ontario Securities
Commission (the “OSC”) on August 24, 2007, the OSC
issued an order in favour of the Offeror ordering that trading cease in respect
of any securities issued, or to be issued, under or in connection with the
Shareholder Rights Plan of Meridian as against the Offer, effective at
9:00 a.m. (Toronto time) on September 11, 2007. The OSC order
also provided that the Offeror be permitted to extend the Expiry Time of its
Offer from 8:00 p.m. (Toronto time) on September 7, 2007 to 8:00 p.m. (Toronto
time) on September 11, 2007.

3.             Manner of Acceptance

Shares may be deposited to the
Offer in accordance with the provisions of Section 3 of the Offer, “Manner
of Acceptance”.

4.             Take up of and Payment for
Deposited Shares

If all the conditions referred to
under “Conditions of the Offer” in Section 4 of the Offer have been
satisfied or waived at or before the Expiry Time, the Offeror will become
obligated to take up and pay for Shares validly deposited under the Offer and
not properly withdrawn promptly following the Expiry Time. Any Shares deposited
to the Offer after the first date on which Shares have been taken up by the
Offeror but before the Expiry Date will be taken up and paid for promptly.
See Section 6 of the Offer, “Take up and payment for deposited Shares”,
for additional detail.

5.             Right to Withdraw Deposited Shares

Shares may be withdrawn by or on
behalf of a depositing Shareholder (unless otherwise required or permitted by
applicable law) (i) at any time when the Shares have not been taken up;
(ii) if the Shares have not been paid for within three business days after
having taken them up; (iii) at any time before the expiration of ten days
from the date upon which either a notice of change or a notice of variation is
mailed or otherwise communicated to Shareholders; (iv) during a Subsequent
Offering Period with respect to the Offer; or (v) as required by the US
Exchange Act at any time after 60 days from the commencement of
the Offer.

See Section 7 of the Offer, “Right
to Withdraw Deposited Shares”, for additional detail regarding withdrawal of
deposited Shares.

6.             Consequential Amendments to the
Offer and Circular and Other Documents

The Offer and Circular, the Letter
of Transmittal and the Notice of Guaranteed Delivery are amended to the extent
necessary to reflect the amendments contemplated by, and the information
contained in this Notice of Extension.

7.             Offerees’ Statutory Rights

In the event that there is a misrepresentation
contained in a take-over bid circular or a notice of change or variation that
is required to be delivered to securityholders in connection with a take-over
bid, subject to certain defences, the securities legislation in the provinces
of Ontario, Alberta, British Columbia, Manitoba, New Brunswick,
Newfoundland, Nova Scotia and Saskatchewan provides securityholders with, in
addition to any other rights they may have at law, rights of rescission against
an offeror and/or a right of action for damages against each of: (i) an
offeror, (ii) every person who was a director of the offeror at the time
the circular or notice was signed, (iii) every person whose consent has
been filed, as prescribed, regarding a report, opinion or statement made by
such person in connection with the circular or notice; and (iv) each
person who signed the certificate in the circular or notice, excluding persons
included in (ii) above. The securities legislation in Quebec provides that
a person who has transferred securities in response to a take-over bid effected
with a circular or exemption, as proscribed by such legislation, containing a
misrepresentation may apply to have the transfer rescinded or the price
revised, and such person may also claim damages from the offeror, its officers
and its directors, and from those experts whose opinions, containing a
misrepresentation, appeared in the circular with such person’s consent.

The foregoing is a summary only of the rights of rescission
and rights of action that may be available to a Shareholder and is qualified by
the specific provisions of the securities legislation in each of the provinces
of Canada. Shareholders should refer to the applicable provision of the
securities legislation in their province and consult their own legal advisors
with respect to their rights based on their particular circumstances.

8.             Directors’ Approval

The contents of this Notice of
Extension have been approved, and the sending thereof to the securityholders of
Meridian has been authorized, by the board of directors of the Offeror.

 2
 

 

APPROVAL AND
CERTIFICATE OF YAMANA GOLD INC.

The contents of this Notice of
Extension have been approved, and the sending thereof to the securityholders of
Meridian Gold Inc. has been authorized, by the Board of Directors of
Yamana Gold Inc.

The foregoing, together with the
Offer and Circular, contains no untrue statement of a material fact and does
not omit to state a material fact that is required to be stated or that is
necessary to make a statement not misleading in the light of the circumstances
in which it was made. In addition, the foregoing, together with the Offer and
Circular, does not contain any misrepresentation likely to affect the value or
the market price of the securities subject to the Offer or the securities to
be distributed.

DATED: September 12, 2007

	
  (Signed) PETER MARRONE

  	
   

  	
  (Signed) CHARLES MAIN

  
	
  Chairman and
  Chief Executive Officer

  	
   

  	
  Vice President,
  Finance and Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  On
  behalf of the Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Signed) NIGEL LEES

  	
   

  	
  (Signed) JOHN BEGEMAN

  
	
  Director

  	
   

  	
  Director

  

 

 3

 

Any questions and requests for
assistance may be directed to

Kingsdale Shareholder Services Inc. and
the Dealer Managers for the Offer

at the telephone numbers and location set
out below:

The Exchange Tower

130 King Street West, Suite 2950,
P.O. Box 361

Toronto, Ontario

M5X 1E2

North American
Toll Free Phone:

1-866-879-7644

Email:
contactus@kingsdaleshareholder.com

Facsimile: 416-867-2271

Toll Free Facsimile: 1-866-545-5580

Outside North America, Banks and
Brokers Call Collect: 416-867-2272

The
Dealer Managers for the Offer May be Contacted at

the
Following Telephone Numbers and Location:

	
  In Canada:

  	
   

  	
  In the
  United States:

  
	
   

  	
   

  	
   

  
	
  Genuity
  Capital Markets

  	
   

  	
  Genuity
  Capital Markets USA Corp.

  
	
  Scotia Plaza,
  Suite 4900

  	
   

  	
  717 Fifth
  Avenue, Suite 1403

  
	
  40 King
  Street West, PO Box 1007

  	
   

  	
  New York,
  New York 10022

  
	
  Toronto, ON
  M5H 3Y2

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone:
  416-603-6000

  	
   

  	
  Telephone:
  212.644.0001

  
	
  Toll Free:
  877-603-6001

  	
   

  	
  Fax:
  212.644.1341

  
	
  Fax:
  416-603-3099

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Canaccord
  Capital Corporation

  	
   

  	
  Canaccord
  Adams Inc.

  
	
  BCE PLACE

  	
   

  	
  99 High
  Street, Suite 1200

  
	
  161 Bay
  Street, Suite 2900

  	
   

  	
  Boston, MA 02110

  
	
  P.O. Box 516

  	
   

  	
  United States

  
	
  Toronto, ON

  	
   

  	
   

  
	
  Canada
  M5J 2S1

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone:
  (416) 869-7368

  	
   

  	
  Telephone:
  (617) 371-3900

  
	
  Toll Free
  (Canada): 1-800-382-9280

  	
   

  	
  Toll Free:
  1-800-225-6201

  
	
  Toll Free (US):
  1-800-896-1058

  	
   

  	
  Fax:
  (617) 371-3798United States Securities and Exchange Commission EDGAR Filing

EXHIBIT 10.1

EQUITY CONTRIBUTION AGREEMENT

Dated as of August 17, 2007

by and between

ATOMIC GUPPY, INC., 

YABBLY HOLDINGS, LLC

AND 

YABBLY, LLC

TABLE OF CONTENTS

Page

[TO BE PROVIDED]

EQUITY CONTRIBUTION AGREEMENT

This EQUITY CONTRIBUTION AGREEMENT (the “Agreement”), dated as of August 17, 2007, by and between Atomic Guppy, Inc., a Nevada corporation ("AGI"), Yabbly Holdings, LLC, a Florida limited liability limited company ("YHI"), and Yabbly, LLC, a Florida limited liability company (“Yabbly”).  Each of AGI, YHI and Yabbly are referred to herein, individually, as a “Party” and, collectively, as the “Parties.” 

PRELIMINARY STATEMENT

AGI desires to issue and contribute to Yabbly Nine Hundred Seventy Six Thousand Nine Hundred Twenty One (976,921) shares of AGI Common Stock (as hereinafter defined) (the “AGI Common Shares”) in exchange for the issuance of Two Thousand (2,000) Class C Membership Units in Yabbly (the “Yabbly Membership Interests”), on the terms and subject to the conditions set forth herein.  

Accordingly, in consideration of the mutual agreements hereinafter set forth, AGI, YHI and Yabbly agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

1.1

Definitions.  In this Agreement, the following terms have the meanings specified or referred to in this Section 1.1 and shall be equally applicable to both the singular and plural forms.

"Affiliate" means, with respect to any Person, any other Person which directly or indirectly controls, is controlled by or is under common control with such Person.

“AGI Common Stock” means the common stock, par value $.001, of AGI.

“AGI First Warrant” means that certain Warrant in the form attached hereto as Exhibit B  to be executed and delivered on the date hereof and pursuant to which YHI may purchase up to Four Hundred Ninety Seven Thousand Five Hundred Eighty Two (497,582) shares of AGI Common Stock. 

“AGI Second Warrant” means that certain Warrant in the form attached hereto as Exhibit C to be executed and delivered on the date hereof and pursuant to which YHI may purchase up to Four Hundred Ninety Six Thousand Three Hundred Forty Two (496,342) shares of AGI Common Stock.

“Ancillary Documents” means this Agreement, the AGI First Warrant, the AGI Second Warrant, and all other documents, instruments and agreements delivered by the Parties in connection with the transactions contemplated by this Agreement.

2

“Breach” means any breach of, or any inaccuracy in, any representation or warranty or any breach of, or failure to perform or comply with, any covenant or obligation, in or of this Agreement.

"Code" means the Internal Revenue Code of 1986, as amended.

"Court Order" means any judgment, order, award or decree of any foreign, federal, state, local or other court or tribunal and any award in any arbitration proceeding.

“Development Agreement” means that certain agreement dated of even date herewith between AGI and Land Shark Holdings, LLC, a Delaware limited liability company or its designee (such party, the “Developer”) and attached hereto as Exhibit A pursuant to which the Developer would develop software and provide related services for AGI.  

"Employee Benefit Plan" means (a) each "employee pension benefit plan" (as such term is defined in Section 3(2) of ERISA) maintained by a Person or an ERISA Affiliate, or with respect to which such Person or an ERISA Affiliate is or will be required to make any payment, or which provides or will provide benefits to present or prior employees of such Person or an ERISA Affiliate due to such employment, and (b) each "employee welfare benefit plan" (as such term is defined in Section 3(1) of ERISA) maintained by such Person, or with respect to which such Person is or will be required to make any payment, or which provides or will provide benefits to present or prior employees of such Person due to such employment.

"Encumbrance" means any lien (statutory or other), claim, charge, security interest, mortgage, deed of trust, pledge, hypothecation, assignment, conditional sale, security agreement or preferential arrangement of any kind or nature, and any easement, encroachment, covenant, restriction, right of way, defect in title or other encumbrance of any kind.

"ERISA" means the Employee Retirement Income Security Act of 1974 and the regulations promulgated thereunder.

"ERISA Affiliate" means (a) any corporation which at any time on or before the Closing Date is or was a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as a Person, (b) any partnership, trade or business (whether or not incorporated) which at any time on or before the Closing Date is or was under common control (within meaning of section 414(c) of the Code) with such Person, and (c) any entity which at any time on or before the Closing Date is or was a member of the same affiliated service group (within the meaning  of Section 414(m) of the Code) as either such Person, any corporation described in clause (a) or any partnership, trade or business described in clause (b) of this paragraph.

"Expenses" means any and all expenses incurred in connection with investigating, defending or asserting any claim, action, suit or proceeding incident to any matter indemnified against hereunder (including court filing fees, court costs, arbitration fees or costs, witness fees, and reasonable fees and disbursements of legal counsel, investigators, expert witnesses, consultants, accountants and other professionals).

3

"Family Members" means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include adoptive relationships.

"Governmental Body" means any:  (i) nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction or any nature; (ii) federal, state, local,  foreign or other government; or (iii) governmental, self-regulatory or quasi-governmental authority of any nature (including any governmental division, department, agency, commission, instrumentality, official, organization, unit, body or entity and any court or other tribunal).  

"Intellectual Property" means all copyrights, trademarks, service marks, trade secrets, patents, patent applications, moral rights and other proprietary rights. 

"IRS" means the Internal Revenue Service.

"Knowledge" whether or not capitalized herein means:

 (a) with respect to an individual:  (i) if such individual is actually aware of such fact or other matter; (ii) if such individual would reasonably be expected to have such knowledge given such individual's title and duties to the Person; or (iii) if such individual would have had knowledge of such fact following a reasonable investigation, if under the circumstances a reasonable person would have determined such investigation was required or appropriate in the normal course of fulfillment of such individual's duties; and 

(b) with respect to a Person not an individual, if any director, officer, management-level employee, trustee or person in a similar capacity with respect to such Person has knowledge of such fact or other matter.

"Legal Requirement" means any federal, state, local, municipal, foreign or international, multinational or other law, statute, constitution, principle of common law, resolution, ordinance, code, edict, decree, rule, regulation, court order, ruling or requirement issued, enacted, adopted, promulgated implemented or otherwise put into effect by or under the authority of any Governmental Body.

"Letter of Intent" means that certain non-binding letter of intent, dated as of June 6, 2007, by and among AGI, YHI and Yabbly.   

"Losses" means any and all losses, costs, obligations, liabilities, settlement payments, awards, judgments, fines, penalties, damages, expenses, deficiencies or other charges.

"Material Adverse Effect" or "Material Adverse Change" means any condition, circumstance, change or effect (or any development that, insofar as can be reasonably foreseen, would result in any condition, circumstance, change or effect) that is materially adverse to the assets, business, liabilities, profits, results of operations, prospects or condition (financial or otherwise) of the Person.

4

"Organizational Documents" means the certificate or articles of incorporation and bylaws of any corporation, the certificate or articles of organization and operating agreement (and any equivalent documents) of any limited liability company, the certificate or articles of partnership and partnership agreement (and any equivalent documents) of any partnership and all comparable constituent documents of any Person, together with all amendments thereto, as in effect on the date hereof.

"Other Benefit Obligations" means all obligations, arrangements and customary practices, whether or not legally enforceable, to provide benefits, other than salary, as compensation for services rendered to present or former directors, officers, employees or agents, other than obligations, arrangements and practices that are Plans.  Other Benefit Obligations includes consulting agreements under which the compensation paid does not depend upon the amount of service rendered, sabbatical policies, severance pay policies, and fringe benefits within the meaning of Section 132 of the Code.  

"Permitted Encumbrances" means liens or imperfections on property which are not material in amount, do not interfere with, and are not violated by, the consummation of the transactions contemplated by this Agreement, and do not impair the marketability of, or materially detract from the value of or materially impair the existing use of, the property affected by such lien or imperfection.

"Person" means any individual, corporation, partnership, joint venture, limited liability company, association, joint-stock company, trust, unincorporated organization or Governmental Body.

"Plan" has the meaning specified in Section 3(3) of ERISA.

"Securities Act" means the Securities Act of 1933, as amended.

"Software" means computer software programs and software systems, including all databases, compilations, tool sets, compilers, higher level or "proprietary" languages, related documentation and materials, whether in source code, object code or human readable form, but does not include any third party software.

"Subsidiaries" means any corporation, partnership, limited liability company, joint venture or other entity in which a Person (i) owns, or at any relevant time owned, directly or indirectly, 50% or more of the outstanding voting securities or equity interests or (ii) is a general partner.

"Tax" (and, with correlative meaning, "Taxes" and "Taxable") means:  (i) any federal, state, local or foreign net income, gross income, gross receipts, windfall profit, severance, property, production, sales, use, license, excise, franchise, employment, payroll, withholding, alternative or add-on minimum, ad valorem, value-added, transfer, stamp, or environmental tax, or any other tax, custom, duty, governmental fee or other like assessment or charge of any kind whatsoever, together with any interest or penalty, addition to tax or additional amount imposed by any governmental authority; and (ii) any liability of a Person for the payment of amounts with 

5

respect to payments of a type described in clause (i) as a result of being a member of an affiliated, consolidated, combined or unitary group, or as a result of any obligation of the Person under any tax sharing arrangement or Tax indemnity arrangement.

"Tax Return" means any return, report or similar statement required to be filed with respect to any Tax (including any attached schedules), including, without limitation, any information return, claim for refund, amended return or declaration of estimated Tax.

1.2

Interpretation.  As used in this Agreement, the word "including" means without limitation, the word "or" is not exclusive and the words "herein", "hereof", "hereby", "hereto" and "hereunder" refer to this Agreement as a whole.  Unless the context otherwise requires, references herein:  (i) to Articles, Sections, Exhibits and Schedules mean the Articles and Sections of and the Exhibits and Schedules attached to this Agreement; (ii) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and by this Agreement; and (iii) to a statute means such statute as amended from time to time and includes any successor legislation thereto.  The Schedules and Exhibits referred to herein shall be construed with and as an integral part of this Agreement to the same extent as if they were set forth verbatim herein.  Titles to Articles and headings of Sections are inserted for convenience of reference only and shall not be deemed a part of or to affect meaning or interpretation of this Agreement.  

ARTICLE II

CONTRIBUTION OF EQUITY

2.1

Contribution of Equity.  Subject to the terms and conditions contained in this Agreement, at Closing (i) Yabbly shall issue to AGI the Yabbly Membership Interests and (ii) AGI shall issue and contribute to Yabbly the AGI Common Shares.  The Parties intend and agree that such transactions shall be treated as a contribution of the AGI Common Shares to Yabbly in exchange for the Yabbly Membership Interests in accordance with Section 721 of the Code and Revenue Ruling 99-57 under the Code.  

2.2

Issuance of Additional Shares of AGI Common Stock; AGI First Warrant and AGI Second Warrant.  In addition to the AGI Common Shares, AGI upon execution hereof, AGI shall:

(a)

issue to YHI One Hundred Fifty Thousand (150,000) shares of AGI Common Stock (the “Additional AGI Common Shares”) and shall deliver to YHI certificates evidencing same.  The Additional AGI Common Shares shall be fully paid and non-asssessable and may be retained by YHI regardless of whether or not the Closing occurs. 

(b)

execute and deliver to YHI the AGI First Warrant and the AGI Second Warrant.  The AGI First Warrant and the AGI Second Warrant shall be exercisable on the terms and conditions set forth therein, and YHI acknowledges that such warrants shall be subject to 

6

termination by AGI in the event that this Agreement is terminated pursuant to the provisions of Section 3.5 hereof. 

2.3

Delivery of Yabbly Membership Interests and AGI Common Shares.  

(a)

At Closing, AGI shall deliver to Yabbly certificates evidencing the AGI Common Shares.  

(b)

At Closing, Yabbly shall deliver to AGI certificates evidencing the Yabbly Membership Interests.

2.4

Valuation of AGI Common Shares for Tax and Capital Account Purposes. The Parties acknowledge and agree that the AGI Common Shares shall be valued for tax purposes and for purposes of Section 704 of the Code at $0.80 per share.

ARTICLE III

CLOSING; DELIVERIES AND OTHER ACTIONS

3.1

Closing.  The closing (“Closing”) of the delivery of AGI Common Shares and Yabbly Membership Interests contemplated by this Agreement shall take place upon satisfaction or waiver of the conditions precedent set forth in Sections 3.3 and 3.4 hereof or such other time or date as the Parties may mutually agree (the date on which the Closing occurs, the “Closing Date”).

3.2

Closing Deliveries and Actions.  At the Closing:

(a)

AGI shall deliver the AGI Common Shares in accordance with Section 2.3;

(b)

YHI shall deliver the Yabbly Membership Interests in accordance with Section 2.3;

(c)

AGI and YHI shall execute and deliver the Amended and Restated Operating Agreement of Yabbly in the form attached hereto as Exhibit D;

(d)

Adam Bauman, Chief Executive Officer of AGI, shall be appointed as a member of the board of managers of Yabbly; 

(e)

AGI shall appoint Michael Egan as the Chairman of the Advisory Board of AGI;

(f)

AGI shall deliver a certificate, dated as of the Closing Date, signed by the Secretary of  AGI (i) attaching copies of the Articles of Incorporation and Bylaws of AGI, (ii) attaching a good standing certificate of AGI, duly certified by the Nevada Secretary of State, (iii) certifying that attached thereto are true and correct copies of action by written consent or resolutions duly adopted by the board of directors and shareholders, if required, of AGI which authorize and approve the execution, delivery and performance of this Agreement and the 

7

consummation of the transactions contemplated thereby and (iv) certifying the incumbency, signature and authority of the officers of AGI authorized to execute, deliver and perform this Agreement and all other documents, instruments or agreements related thereto executed or to be executed by AGI; 

(g)

YHI shall deliver a certificate, dated as of the Closing Date, signed by the manager/managing member of  YHI (i) attaching copies of the Articles of Organization of YHI,  (ii) attaching a good standing certificate of YHI, duly certified by the Florida Secretary of State, (iii) certifying that attached thereto are true and correct copies of action by written consent or resolutions duly adopted by the manager/managing members which authorize and approve the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated thereby and (iv) certifying the incumbency, signature and authority of the officers of YHI authorized to execute, deliver and perform this Agreement and all other documents, instruments or agreements related thereto executed or to be executed by YHI; 

(h)

Yabbly shall deliver a certificate, dated as of the Closing Date, signed by the manager/managing member of  Yabbly (i) attaching copies of the Articles of Organization and Operating Agreement of Yabbly, (ii) attaching a good standing certificate of Yabbly, duly certified by the Florida Secretary of State, (iii) certifying that attached thereto are true and correct copies of action by written consent or resolutions duly adopted by the manager/managing members which authorize and approve the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated thereby and (iv) certifying the incumbency, signature and authority of the officers of Yabbly authorized to execute, deliver and perform this Agreement and all other documents, instruments or agreements related thereto executed or to be executed by Yabbly; 

(i)

AGI shall deliver a certificate, dated as of the Closing Date, signed by a duly authorized officer of AGI, certifying that all representations and warranties of AGI set forth herein, in any of the Ancillary Documents or any Schedule or Exhibit hereto are accurate on the Closing Date; 

(j)

YHI shall deliver a certificate, dated as of the Closing Date, signed by a duly authorized officer of YHI, certifying that all representations and warranties of YHI set forth herein, in any of the Ancillary Documents or any Schedule or Exhibit hereto are accurate on the Closing Date; 

(k)

Yabbly shall deliver a certificate, dated as of the Closing Date, signed by a duly authorized officer of Yabbly, certifying that all representations and warranties of Yabbly set forth herein, in any of the Ancillary Documents or any Schedule or Exhibit hereto are accurate on the Closing Date; and

(l)

The Parties shall also deliver such other certificates, documents and instruments as the Parties may reasonably request  to evidence or facilitate the transactions contemplated by this Agreement.

8

3.3

Conditions Precedent to AGI’s Obligation to Close. AGI’s obligation to issue and contribute the AGI Common Shares, to acquire the Yabbly Membership Interests and to consummate the transactions contemplated hereby (other than the issuance of the Additional AGI Common Shares) is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by AGI, in whole or in part):

(a)

All of YHI and Yabbly’s representations and warranties in this Agreement shall be accurate in all material respects as of the date of this Agreement, and shall be accurate in all material respects as of the time of the Closing as if then made. 

(b)

All of the covenants and obligations that Yabbly and YHI are required to perform or to comply with pursuant to this Agreement at or prior to the Closing shall have been duly performed and complied with in all material respects.

(c)

Yabbly and YHI shall have caused the documents and instruments required to be delivered by them pursuant to Section 3.2 to be delivered to AGI. 

(d)

Developer and AGI shall have agreed upon the “Specifications” (as defined in the Development Agreement).

(e)

AGI shall have consummated its private placement of AGI Common Stock (the “Proposed Private Placement”). 

3.4

Conditions Precedent to Yabbly and YHI’s Obligation to Close. Yabbly obligation to issue the Yabbly Membership Interests, to acquire the AGI Common Shares and to consummate the transactions contemplated hereby is subject to the satisfaction, at or prior to the Closing, of each of the following conditions (any of which may be waived by YHI, in whole or in part):

(a)

All of AGI’s representations and warranties in this Agreement shall be accurate in all material respects as of the date of this Agreement, and shall be accurate in all material respects as of the time of the Closing as if then made. 

(b)

All of the covenants and obligations that AGI is required to perform or to comply with pursuant to this Agreement at or prior to the Closing shall have been duly performed and complied with in all material respects.

(c)

AGI shall have caused the documents and instruments required to be delivered by it pursuant to Section 3.2 to be delivered to Yabbly and YHI, as applicable. 

(d)

Developer and AGI shall have agreed upon the “Specifications” (as defined in the Development Agreement). 

(e)

AGI shall have consummated the Proposed Private Placement. 

9

3.5

Termination. 

(a)

Events of Termination.  By notice given prior to or at the Closing, subject to Section 3.5(b), this Agreement may be terminated as follows:

(i)

by AGI if a material Breach of any provision of this Agreement has been committed by YHI or Yabbly and such Breach has not been waived by AGI;

(ii)

by YHI or Yabbly if a material Breach of any provision of this Agreement has been committed by AGI and such Breach has not been waived by YHI and Yabbly;

(iii)

by AGI if any condition in Section 3.3 has not been satisfied within ninety (90) days after the date hereof, and AGI has not waived such condition; 

(iv)

by YHI or Yabbly if any condition in Section 3.4 has not been satisfied within one hundred twenty (120) days after the date hereof, and YHI and Yabbly have not waived such condition; 

(v)

by any Party in the event that the per share price of the AGI Common Stock sold in the Proposed Private Placement is less than $1.75, or in the event that the net proceeds received by AGI in connection with the Proposed Private Placement is less than $3,000,000 (prior to deducting commissions and costs relating thereto); or 

(vi)

by mutual consent of the Parties; 

(b)

Effect of Termination. Each Party's right of termination under Section 3.5(a) is in addition to any other rights it may have under this Agreement or otherwise, and the exercise of such right of termination will not be an election of remedies. If this Agreement is terminated pursuant to Section 3.5(a), all obligations of the Parties under this Agreement will terminate, except that the obligations of the Parties in this Section 3.5(b) and Article VIII will survive, provided, however, that, if this Agreement is terminated because of a Breach of this Agreement by the nonterminating Party or because one or more of the conditions to the terminating Party's obligations under this Agreement is not satisfied as a result of the Party's failure to comply with its obligations under this Agreement, the terminating Party's right to pursue all legal remedies will survive such termination unimpaired. Notwithstanding the foregoing, termination of this Agreement shall not affect YHI’s right to retain the Additional AGI Common Shares issued to it hereunder. 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF YHI AND YABBLY

As an inducement to AGI to enter into this Agreement and to consummate the transactions contemplated hereby, each of YHI and Yabbly represents and warrants to AGI as follows: 

10

4.1

Organization and Authority of YHI and Yabbly.  

(a)

Yabbly is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Florida.  YHI is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Florida.  Yabbly is duly qualified to transact business as a foreign limited liability company and is in good standing in each jurisdictions in which the ownership or leasing of its assets or the conduct of its business requires such qualification.  No other jurisdiction has demanded, requested or otherwise indicated that Yabbly is required so to qualify.  Yabbly has full power and authority to own or lease and to operate and use its properties and assets and to carry on its business as now conducted. True, correct and complete copies of Yabbly's Organizational Documents, and membership interest ledger of Yabbly, have been delivered to AGI.

(b)

YHI and Yabbly have all requisite power and authority to execute and deliver this Agreement and all of the Ancillary Agreements, to perform their obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.  The execution, delivery and performance of this Agreement and the Ancillary Agreements by YHI and Yabbly have been duly authorized by all necessary limited liability company action.  This Agreement and the Ancillary Agreements have been duly and validly executed and delivered by YHI and Yabbly and, assuming the valid execution and delivery thereof by AGI, each of this Agreement and the Ancillary Agreements constitutes the legal, valid and binding obligations of YHI and Yabbly, as applicable, enforceable against them in accordance with its terms.  Neither YHI nor Yabbly need give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement or any Ancillary Agreement. 

4.2

No Violation.  Except as set forth in Schedule 4.2, neither the execution and delivery of this Agreement or any of the Ancillary Agreements, or the consummation of any of the transactions contemplated hereby or thereby nor compliance with or fulfillment of the terms, conditions and provisions hereof or thereof will, directly or indirectly:

(a)

contravene, conflict with, result in a violation or breach of any of the terms, conditions,  requirements or provisions of, or constitute a default, an event of default or an event creating rights of acceleration, termination or cancellation or a loss of rights under, or result in the creation or imposition of any Encumbrance upon any of the assets or properties of YHI or Yabbly under, or give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate, modify or otherwise obtain any relief under, (i) the Organizational Documents of YHI or Yabbly, (ii) any note, instrument, agreement, mortgage, lease, license, franchise, permit or other authorization, right, restriction or obligation to which YHI or Yabbly is a party or any of the respective assets or properties of YHI or Yabbly is subject or by which YHI or Yabbly is bound, (iii) any Governmental Authorization that is held by YHI or Yabbly or any of its employees or that otherwise relates to the business of, or any of the assets owned or used by, YHI or Yabbly (iv) any Court Order to which YHI or Yabbly is a party or any of the respective assets or properties of YHI or Yabbly is subject or by which YHI or Yabbly is bound, or (v) any Legal Requirements affecting YHI or Yabbly or their respective assets or properties; or

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(b)

require the approval, consent, authorization or act of, or the making by YHI or Yabbly of any declaration, filing or registration with, any Person. 

4.3

Capitalization.  As of the Closing Date, the membership interests of Yabbly will consist of three classes of limited liability company interests, (a) all of which have identical preferences and rights except as expressly set forth in the Operating Agreement of Yabbly, and (b) all of which are held by the Persons set forth on Schedule 4.3.  All of the outstanding membership interests in Yabbly are validly issued, fully paid and nonassessable and were not issued in violation of any preemptive or similar rights.  Except as set forth on Schedule 4.3 or in the Organizational Documents of Yabbly, there are no agreements, arrangements, options, warrants, calls, subscription rights, preemptive rights, rights of first refusal or other rights or commitments of any character outstanding relating to the issuance, sale, distribution, transfer, purchase, redemption or exchange of any membership interests or other ownership interests in Yabbly, there are no outstanding securities or other instruments convertible into or exchangeable for membership interests or other securities of Yabbly, and there are no outstanding membership interest appreciation rights, phantom membership interests, or similar rights outstanding with respect to the membership interests.  There are no proxies, voting trusts, voting agreements or similar Contracts, and no shareholders agreements, buy-sell agreements, redemption agreements, cross-purchase agreements, registration rights agreements, or similar Contracts, relating to the membership interests or any other securities of Yabbly, except as set forth in the Organizational Documents of Yabbly.  Upon the consummation of the Closing, there will be no dividends or distributions on any membership interests that have been declared that have not been paid or distributed in full.   None of the issued or outstanding membership interests was or has been issued, offered, sold, assigned, distributed, repurchased and/or otherwise transferred in violation of Yabbly’s Organizational Documents, the Securities Act or any other Legal Requirement.  

4.4

Yabbly Membership Interests.  Upon consummation of the transactions contemplated hereby and the issuance and delivery of certificates representing the Yabbly Membership Interests to AGI, the Yabbly Membership Interests will be validly issued, fully paid and non-assessable membership interests in Yabbly, will be owned by AGI free and clear of all Encumbrances of any kind (other than as set forth in the Organizational Documents of Yabbly), and will not be subject to Yabbly’s compliance with or satisfaction of any pre-emptive or similar rights held by the members Yabbly or such member’s waiver of any such rights. The Yabbly Membership Interests will represent AGI’s right to receive 6.9375% of the allocations of profits and losses in Yabbly and the right to receive distributions of the Company’s assets attributable to the Class C Membership Units in Yabbly on the terms and conditions of the Operating Agreement of Yabbly. 

4.5

No Subsidiaries or Investments.  Yabbly does not, directly or indirectly, own, of record or beneficially, any outstanding voting securities, equity interests or other ownership interest of any kind or nature (whether controlling or not) in any corporation, limited liability company, partnership, trust, joint venture or other entity (including, but not limited to, any interest in any profits, capital or business of any entity), and Yabbly does not have any Contract to acquire any such interest.

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4.6

No Business Operations.  Although Yabbly owns certain Intellectual Property and other assets, tangible and intangible, Yabbly (a) does not employ, nor has it ever employed, any employees and (b) is not a party to any contract, except as reflected on Schedule 4.6 or another Schedule to this Agreement.  

4.7

Undisclosed Liabilities. Yabbly does not have any current or long-term liabilities or obligations, whether accrued, absolute, unasserted contingent or otherwise except to the extent reflected on Schedule 4.7.  

4.8

Title to Properties; Encumbrances. 

(a)

Yabbly does not own, and has not ever owned, any real property or any interest in real property.

(b)

Except as set forth in Schedule 4.8(b), Yabbly has good and marketable title to all of its assets and properties free and clear of all Encumbrances, except Permitted Encumbrances.    

4.9

Taxes.  Each of YHI and Yabbly has filed or caused to be filed on a timely basis all Tax Returns that are or were required to be filed by or with respect to Yabbly pursuant to any applicable Legal Requirements.  Each of YHI and Yabbly has timely paid, or made provision for the timely payment of, all Taxes that are required to be paid by YHI (with respect to Yabbly) or Yabbly that have or may have become due pursuant to all Tax Returns or otherwise.

4.10

Employee Benefits.  Yabbly does not maintain, and has never maintained, any Employee Benefit Plans or Other Benefit Obligations.    

4.11

Intellectual Property; Software.

(a)

Intellectual Property; Software. Schedule 4.11(a) contains a list and description of any Intellectual Property rights that Yabbly has applied for, or registered, in the United States or any foreign jurisdiction.

(b)

Schedule 4.11(b) contains a list and description of domain names related to Yabbly’s Intellectual Property, and Software owned by  Yabbly (except as otherwise noted as third party software on such Schedule).

(c)

Except as disclosed on Schedule 4.11(c), to the knowledge of YHI and its Affiliates, (i) Yabbly either: (A) owns the entire right, title and interest in and to the Intellectual Property and Software included in its assets and properties, free and clear of any Encumbrance; or (B) has the perpetual, royalty-free right to use the same; (ii) all Intellectual Property and Software included in Yabbly’s assets is exclusively its own original work or Yabbly has obtained all consents necessary to use such Intellectual Property and Software; and (iii) the Intellectual Property and Software do not violate the rights of any third party. 

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4.12

Compliance with Legal Requirements.  Each of Yabbly and YHI is, and at all times has been, in compliance, in all material respects, with each Legal Requirement that is or was applicable to it or to the conduct or operation of its business or the ownership or use of any of its assets.  Yabbly has not received, at any time since any notice or other communication (whether oral or  written) from any Governmental Body or any other Person regard­ing (A) any actual, alleged, possible, or potential violation of, or failure to comply with, any Legal Requirement, or (B) any actual, alleged, possible, or potential obligation on the part of Yabbly to undertake, or to bear all or any portion of the cost of, any remedial action of any nature.

4.13

  Insurance.  Schedule 4.13 sets forth a list and brief description (including nature of coverage, limits, deductibles, premiums and the loss experience since its inception with respect to each type of coverage) of all policies of insurance maintained, owned or held by or for the benefit of Yabbly on the date hereof.  Yabbly has complied with each of such insurance policies and has not failed to give any notice or present any claim thereunder in a due and timely manner.

4.14

Books and Records.  The books of account, minute books, stock record books, and other records of Yabbly, all of which have been made available to AGI, are complete and correct and have been main­tained in accordance with sound business practices.  The minute books of Yabbly contain complete and accurate records of all meetings held of, all written consents signed by, and of all other corporate actions taken by, the members, managers, and committees of the board of managers of Yabbly, and no meeting of any of the foregoing has been held for which minutes have not been prepared and are not contained in such minute books.  

4.15

Bank Accounts; Powers of Attorney.  Schedule 4.15 sets forth a complete and correct list of all bank accounts and safe deposit boxes of Yabbly and persons authorized to sign or otherwise act with respect thereto as of the date hereof and a complete and correct list of all persons holding a general or special power of attorney granted by Yabbly and a complete and correct copy thereof.

4.16

No Finder.  None of YHI, Yabbly nor any Person acting on its behalf has paid or become obligated to pay any fee or commission to any broker, finder or intermediary for or on account of the transactions contemplated by this Agreement.

4.17

Disclosure.  No representation or warranty of YHI contained herein, as qualified by the Disclosure Schedule, and no certificate furnished or to be furnished to AGI at the Closing contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein not misleading in light of the circumstances under which they were made.  

4.18

Litigation. Except as set forth in Schedule 4.18,  Yabbly (i) is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge or (ii) is not a party to or, to the Knowledge of any of YHI and the directors and officers (and employees with responsibility for litigation matters) of Yabbly, is not threatened to be made a party to any action, suit, proceeding, hearing, or investigation of, in, or before any court or quasi-judicial or 

14

administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator. 

4.19

Related Party Transactions.    Except as set forth in Schedule 4.19 or in another Schedule to this Agreement, there are not currently, and never have been, any transactions, business relationships or other relationships between (a) Yabbly, on the one hand, and (b) any of the following (collectively, the "Related Parties"), on the other hand: (i) any officer, director or employee of Yabbly (other than customary transactions or relationships in their capacity as officer, director or employee), (ii) YHI or any Affiliate thereof, or (iii) Family Members of Michael Egan, Edward Cespedes or Brian Fowler.  None of the Related Parties owns any asset, tangible or intangible, which is used in the business of Yabbly.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF AGI

As an inducement to YHI and Yabbly to enter into this Agreement and to consummate the transactions contemplated hereby, AGI represents and warrants to YHI and Yabbly as follows:

5.1

Organization and Authority of AGI.  

(a)

AGI is corporation duly organized, validly existing and in good standing under the laws of the State of Nevada.  AGI is duly qualified to transact business as a foreign limited liability company and is in good standing in each jurisdictions in which the ownership or leasing of its assets or the conduct of its business requires such qualification.  No other jurisdiction has demanded, requested or otherwise indicated that AGI is required so to qualify.  AGI has full power and authority to own or lease and to operate and use its properties and assets and to carry on its business as now conducted.  True, correct and complete copies of AGI’s Organizational Documents have been provided (or made available) to YHI.

(b)

AGI has all requisite corporate power and authority to execute and deliver this Agreement and all of the Ancillary Agreements, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby.  The execution, delivery and performance of this Agreement and the Ancillary Agreements by AGI have been duly authorized by all necessary corporate action.  This Agreement and the Ancillary Agreements have been duly and validly executed and delivered by AGI and, assuming the valid execution and delivery thereof by YHI and Yabbly, each of this Agreement and the Ancillary Agreements constitutes the legal, valid and binding obligations of AGI enforceable against it in accordance with its terms.  AGI need not give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement or any Ancillary Agreement. 

5.2

No Violation.  Except as set forth in Schedule 5.2, neither the execution and delivery of this Agreement or any of the Ancillary Agreements, or the consummation of any of the transactions contemplated hereby or thereby nor compliance with or fulfillment of the terms, conditions and provisions hereof or thereof will, directly or indirectly:

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(a)

contravene, conflict with, result in a violation or breach of any of the terms, conditions,  requirements or provisions of, or constitute a default, an event of default or an event creating rights of acceleration, termination or cancellation or a loss of rights under, or result in the creation or imposition of any Encumbrance upon any of the assets or properties of AGI under, or give any Governmental Body the right to revoke, withdraw, suspend, cancel, terminate, modify or otherwise obtain any relief under, (i) the Organizational Documents of AGI, (ii) any note, instrument, agreement, mortgage, lease, license, franchise, permit or other authorization, right, restriction or obligation to which AGI is a party or any of the assets or properties of AGI is subject or by which AGI is bound, (iii) any Governmental Authorization that is held by AGI or any of its employees or that otherwise relates to the business of, or any of the assets owned or used by, AGI (iv) any Court Order to which AGI is a party or any of the assets or properties of AGI is subject or by which AGI is bound, or (v) any Legal Requirements affecting AGI or its assets or properties; or

(b)

require the approval, consent, authorization or act of, or the making by AGI of any declaration, filing or registration with, any Person.

5.3

Capitalization.

(a)

The authorized capital stock of AGI consists of 25,000,000 shares of common stock, par value $0.001 per share. 

(b)

Schedule 5.3 sets forth:  (i) the capitalization of AGI as of the date hereof (excluding the issuance of the AGI First Warrant, the AGI Second Warrant and the Additional AGI Common Shares) and following the Closing after giving effect to the transactions contemplated hereby (and assuming the full exercise of the AGI First Warrant and AGI Second Warrant), and (ii) as of the date hereof, AGI’s anticipated capitalization following the closing of the Proposed Private Placement, including the number of shares of the following: (i) issued and outstanding AGI Common Stock; (ii) issued stock options; (iii) stock options not yet issued but reserved for issuance; (iv) any preferred stock; and (v) warrants or stock purchase rights, if any.  Notwithstanding the foregoing, AGI may, in its reasonable discretion, modify the terms of the Proposed Private Placement and any changes resulting therefrom to AGI’s actual capitalization following the closing of the Proposed Private Placement shall not constitute a breach or inaccuracy of Schedule 5.3 or this Section 5.3.  

(c)

All of the outstanding shares of AGI Common Stock are validly issued, fully paid and nonassessable and were not issued in violation of any preemptive or similar rights.  Except for the AGI First Warrant, AGI Second Warrant and as otherwise set forth on Schedule 5.3, there are no agreements, arrangements, options, warrants, calls, subscription rights, preemptive rights, rights of first refusal or other rights or commitments of any character outstanding relating to the issuance, sale, distribution, transfer, purchase, redemption or exchange of any of the capital stock of AGI (including the AGI Common Shares and the Additional AGI Common Shares), there is no outstanding capital stock, other securities or other instruments convertible into or exchangeable for shares of AGI’s capital stock or other securities, and there are no outstanding stock appreciation rights, phantom stock, or similar rights outstanding with respect to the capital stock of AGI.  There are no proxies, voting trusts, voting 

16

agreements or similar Contracts, and no shareholders agreements, buy-sell agreements, redemption agreements, cross-purchase agreements, registration rights agreements, or similar Contracts, relating to any of AGI’s capital stock (including the AGI Common Shares and the Additional AGI Common Shares) or securities.  Upon the consummation of the Closing, there will be no dividends or distributions on any shares of capital stock of AGI that have been declared that have not been paid or distributed in full.   None of the issued or outstanding AGI Common Stock or other securities of AGI was or has been issued, offered, sold, assigned, distributed, repurchased and/or otherwise transferred in violation of AGI’s Organizational Documents, the Securities Act or any other Legal Requirement.    

5.4

AGI Common Shares and Additional AGI Common Shares.  

(a)

Upon consummation of the transactions contemplated hereby and the issuance and delivery of certificates representing the AGI Common Shares to Yabbly, the AGI Common Shares will be validly issued, fully paid and non-assessable shares of AGI Common Stock, will be owned by Yabbly free and clear of all Encumbrances of any kind, and will not be subject to AGI’s compliance with or satisfaction of any pre-emptive or similar rights held by the holders of shares of AGI Common Stock or such holders’ waiver of any such rights. Excluding any shares of AGI Common Stock issued in connection with the Proposed Private Placement, the AGI Common Shares and the Additional AGI Common Shares will represent at least 9.99% of the shares of AGI Common Stock issued and outstanding immediately following the Closing Date. 

(b)

Upon the issuance and delivery of certificates representing the Additional AGI Common Shares to YHI, the Additional AGI Common Shares will be validly issued, fully paid and non-assessable shares of AGI Common Stock, will be owned by YHI free and clear of all Encumbrances of any kind, and will not be subject to AGI’s compliance with or satisfaction of any pre-emptive or similar rights held by the holders of shares of AGI Common Stock or such holders’ waiver of any such rights. 

5.5

SEC Reports.  Copies of AGI's most recent annual report on Form 10-K, its most recent Annual Report to shareholders, all quarterly reports filed since the filing of the Form 10-K, the Proxy Statement for the most recent annual meeting of shareholders of AGI, and any other filings or reports filed with or made to the United States Securities and Exchange Commission (collectively, the “AGI SEC Reports”) have been filed and are available via the United States Securities and Exchange Commission’s EDGAR system except where such AGI SEC Reports are not required to be filed thereon.  As of their respective dates, none of the AGI SEC Reports contained any untrue statements of material fact or omitted to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, and, as of the date hereof, no AGI SEC Report contains any untrue statements of material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances in which they were made, not misleading, which untrue statement or omission has not been corrected or superseded by a statement in a subsequently filed AGI SEC Report.  AGI has timely filed all SEC Reports required to be filed by it pursuant to the Securities Act and the Exchange Act, and such AGI SEC Reports complied as to form at the time such form, 

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document or report was filed, in all material respects with the applicable requirements of the Securities Act and the Exchange Act.

5.6

No Undisclosed Liabilities.  Except as set forth in the AGI SEC Reports and liabilities created hereunder, AGI is not subject to any material liability (including unasserted claims, whether known or unknown), whether absolute, contingent, accrued or otherwise, which is not shown or which is in excess of amounts shown or reserved for in AGI’s most recent balance sheet set forth in the AGI SEC Reports, other than liabilities incurred in the ordinary course of business consistent with past practice since the date of AGI’s most recent balance sheet set forth in the AGI SEC Reports (none of which results from, arises out of, or relates to, is in the nature of, or was caused by any breach of contract, breach of warranty, tort, infringement or violation of law).

5.7

Governmental Authorizations.  

(a)

AGI owns, holds or possesses all required Governmental Authorizations.    

(b)

Except as set forth in Schedule 5.7(b), (i) AGI has fulfilled and performed its obligations under each of the Governmental Authorizations, all of the Governmental Authorizations are valid and in full force and effect, and no event has occurred or condition or state of facts exists which constitutes or, after notice or lapse of time or both, would constitute a breach or default under any such Governmental Authorization or which permits or, after notice or lapse of time or both, would permit revocation, withdrawal, sus­pension, cancellation, or termination of, or any modification to, any such Governmental Authorization, or which might adversely affect the rights of AGI under any such Governmental Authorization, (ii) AGI has not received any notice of cancellation, of default or of any dispute concerning any Governmental Authorization, or of any event, condition or state of facts described in the preceding clause, and (iii) each of the Governmental Authorizations will continue to be in full force and effect immediately after the Closing, in each case without (x) the occurrence of any breach, default or forfeiture of rights thereunder, or (y) the consent, approval, or act of, or the making of any filing with, any Governmental Body.  All applications required to have been filed for the renewal of any such Governmental Authorization have been duly filed on a timely basis with the appropriate Governmental Bodies, and all other filings required to have been made with respect to such Gov­ernmental Authorizations have been duly made on a timely basis with the appropriate Governmental Bodies.

5.8

Compliance with Legal Requirements.  AGI is in material compliance with each Legal Requirement that is applicable to it or to the conduct or operation of its business or the ownership or use of any of its assets.  No event has occurred or circumstance exists that (with or without notice or lapse of time) (i) may constitute or result in a violation by AGI of, or a failure on the part of AGI to comply with, any Legal Requirement, or (ii) may give rise to any obligation on the part of AGI to undertake, or to bear all or any portion of the cost of, any remedial action of any nature.    

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5.9

No Finder.  Neither AGI nor any Person acting on its behalf has paid or become obligated to pay any fee or commission to any broker, finder or intermediary for or on account of the transactions contemplated by this Agreement.

5.10

Disclosure.  No representation or warranty of AGI contained herein, as qualified by the Disclosure Schedule, and no certificate furnished or to be furnished to YHI or Yabbly at the Closing contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein or therein no misleading in light of the circumstances under which they were made.  

ARTICLE VI

ADDITIONAL AGREEMENTS

6.1

Issuance of Restricted Shares of AGI Common Stock.  In the event that Michael Egan joins the AGI Board of Directors within six (6) months of the Closing Date, AGI shall issue to YHI (or its designee) Seven Hundred Thirty-Two Thousand Eight Hundred (732,800) restricted shares of AGI Common Stock.

6.2

Investment Purpose; Unregistered Equity.  

(a)

Yabbly is acquiring the AGI Common Shares and YHI is acquiring the Additional AGI Common Shares for investment for its own account and not with a view to the sale or distribution of any part thereof within the meaning of the Securities Act and any state “blue sky” securities laws; provided, however, that the foregoing shall not prohibit YHI or Yabbly from transferring the AGI Common Shares or the Additional AGI Common Shares (in each case, to the extent not subject to a risk of forfeiture) in a manner that would not violate U.S. securities laws or adversely impact the validity of the exemption from registration pursuant to which the AGI Common Shares have been issued to Yabbly or the Additional AGI Common Shares have been issued to YHI.  YHI and Yabbly (either alone or together with their advisors) has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the AGI Common Shares or the Additional AGI Common Shares, as applicable, and is capable of bearing the economic risks of such investment.  YHI and Yabbly are “accredited investors” as defined by the Securities Act and the rules and regulations promulgated thereunder.  

(b)

YHI and Yabbly understand that except as provided in this Agreement, the sale or re-sale of any AGI Common Shares or any Additional AGI Common Shares has not been and is not being registered under the Securities Act or any applicable state securities laws, and neither the AGI Common Shares nor the Additional AGI Common Shares may be transferred unless (i) such shares are sold pursuant to an effective registration statement under the Securities Act, or (ii) YHI or Yabbly, as applicable, shall have delivered to AGI an opinion of counsel (which opinion shall be in form, substance and scope reasonably acceptable to counsel to AGI) to the effect that the AGI Common Shares or Additional AGI Common Shares, as applicable, to be transferred may be transferred pursuant to an exemption from such registration.

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(c)

YHI and Yabbly understand that until such time as such shares have been registered under the Securities Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be immediately sold, the AGI Common Shares and the Additional AGI Common Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such AGI Common Shares and such Additional AGI Common Shares):

"The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended.  The securities may not be sold, transferred or assigned in the absence of an effective registration statement for the securities under said Act, or an opinion of counsel, in form, substance and scope reasonably acceptable to the Company, that registration is not required."

The legend set forth above shall be removed and AGI shall issue a certificate without such legend to the holder of any AGI Common Shares or Additional AGI Common Shares, as applicable, upon which it is stamped, if, unless otherwise required by applicable state securities laws, (i) such shares are registered for re-sale under an effective registration statement filed under the Securities Act, or (ii) such holder provides AGI with an opinion of counsel, in form, substance and scope reasonably acceptable to AGI, to the effect that a public sale or transfer of such shares may be made without any restriction as to the number of shares of AGI Common Stock as of a particular date that can then be immediately sold without registration under the Securities Act.  YHI and Yabbly agree to sell all AGI Common Shares and all Additional AGI Common Shares, as applicable, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. 

6.3

Piggy-back Registration.

(a)

At any time on or after the Closing Date, whenever AGI proposes to file with the U.S Securities and Exchange Commission (the “SEC”) a registration statement covering the resale of shares of AGI Common Stock for its own account (a “Primary Offering”) or for the account of others, other than on Form S-4 or Form S-8 (as promulgated under the Securities Act) or their equivalents relating to equity securities to be issued solely in connection with an acquisition of any business or entity or equity securities issuable in connection with stock option or other employee benefit plans, it shall give written notice to YHI and Yabbly of its intention to do so at least fifteen (15) business days before the initial filing of such registration statement and, upon the request, delivered to AGI within fifteen (15) days after delivery of any such notice to YHI and Yabbly, of YHI and/or Yabbly to include in such registration the AGI Common Shares and/or the Additional AGI Common Shares (which request shall specify the number of such shares of AGI Common Stock proposed to be included in such registration), AGI shall use its best efforts to cause all such AGI Common Shares and Additional AGI Common Shares to be included in such registration on the same terms and conditions as the securities otherwise being sold in such registration; provided, however, that if the managing underwriter in a Primary 

20

Offering, in its sole discretion, advises AGI that the inclusion of the Other Registrable Shares (as defined below) would interfere with the successful marketing (including pricing) of the Primary Shares (as defined below), then the shares to be included in such registration statement shall be determined in the following priority:  (i) first, all of the Primary Shares; and (ii) second, as many of the Other Registrable Shares as the managing underwriter deems advisable (each holder’s share thereof to be determined on a proportionate basis according to the number of shares such holder requested be included compared to the total number of Other Registrable Shares).  “Primary Shares” means all of the shares of AGI Common Stock proposed to be registered by AGI in the Primary Offering.  “Other Registrable Shares” means all shares of AGI Common Stock to be resold for the account of others (including, without limitation, the AGI Common Shares and the Additional AGI Common Shares) to which the holders thereof are entitled to piggy-back registration rights and for which such holders have requested such shares be included in the registration statement proposed to be filed by AGI.  

(b)

In connection with any Primary Offering, YHI and Yabbly agree that they shall not, directly or indirectly, sell publicly, offer to sell publicly, make any short sale of, or otherwise dispose publicly of, any AGI Common Shares or Additional AGI Common Shares (other than with respect to those shares of AGI Common Stock included in such registration), for a period (the “Lockup Period”) to be designated by the managing underwriter and communicated by AGI in writing to YHI and Yabbly, which period shall not last more than 180 days after effective date of such registration statement and in no event shall such Lockup Period exceed any lock up period applicable to such Primary Offering and agreed to by officers or directors of AGI or shareholders holding more than 10% of the issued and outstanding AGI Common Stock.  YHI  and Yabbly agree that AGI may instruct its transfer agent to place stop transfer notations, as reasonably necessary, to enforce this provision.  If (i) during the last seventeen (17) days of the Lockup Period AGI issues an earnings release or material news or a material event relating to AGI occurs, or (ii) prior to the expiration of the Lockup Period, AGI announces that it will release earnings results during the sixteen (16) day period beginning on the last day of the Lockup Period; the restrictions imposed by this Section 6.3(b) shall continue to apply until the expiration of the eighteen (18) day period beginning on the issuance of the earnings release or the occurrence of the material news or material event. 

6.4

Participation Rights.  If during the twenty-four (24) month period following the Closing Date AGI proposes to issue any AGI Common Stock or any securities of AGI or any Subsidiary which entitle the holder thereof to acquire AGI Common Stock (collectively, “New Issue Securities”), AGI shall first offer the New Issue Securities to YHI in accordance with the following provisions:

(a)

AGI shall give a written notice to YHI (the “Participation Notice”) stating (i) its intention to issue the New Issue Securities, (ii) the number and description of the New Issue Securities proposed to be issued and (iii) the proposed purchase price (calculated as of the proposed issuance date) and the other terms and conditions upon which AGI is proposing to offer the New Issue Securities.

(b)

Transmittal of the Participation Notice to YHI by AGI shall constitute an offer by AGI to sell YHI up to Yabbly’s proportionate number (based upon Yabbly’s percentage 

21

ownership of the total number of issued and outstanding shares of AGI Common Stock as of the date of the Participation Notice) of the New Issue Securities for the price and upon the terms and conditions set forth in the Participation Notice.  For a period of five (5) business days after receipt of the Participation Notice, YHI shall have the option, exercisable by written notice to AGI, to accept (the "Notice of Acceptance") AGI’s offer as to all or any part of YHI’s proportionate number of the New Issue Securities.  If two or more types of New Issue Securities are to be issued or New Issue Securities are to be issued together with other types of securities, including, without limitation, debt securities, in a single transaction or related transactions, the rights to purchase New Issue Securities granted to YHI under this Section must be exercised to purchase all types of New Issue Securities and such other securities in the same proportion as such New Issue Securities and other securities are to be issued by AGI.

(c)

AGI shall have thirty (30) business days after the date of the Participation Notice to offer, issue, sell or exchange all or any part of the New Issue Securities as to which a Notice of Acceptance has not been given by YHI, but only upon terms and conditions that are not more favorable to the acquiring person or persons or less favorable to AGI than those set forth in the Participation Notice.

(d)

The participation rights contained in this Section shall not apply to the issuance and sale by AGI, from time to time hereafter, of (i) shares of AGI Common Stock or any securities of AGI or any Subsidiary which entitle the holder thereof to acquire AGI Common Stock to employees, officers, or directors of, or consultants to, AGI, as compensation for their services to AGI or any of its direct or indirect Subsidiaries pursuant to arrangements approved by the board of directors of AGI, (ii) shares of AGI Common Stock issued and sold in a firm commitment underwritten public offering (which shall not include an equity line of credit or similar financing arrangement) resulting in net proceeds to AGI of in excess of $15,000,000,  (iii) shares of AGI Common Stock issued as consideration for the acquisition of another company or business in which the shareholders of AGI do not have a majority ownership interest, which acquisition has been approved by the board of directors of AGI, (iv) shares of AGI Common Stock issuable upon the exercise of outstanding securities of AGI or any Subsidiary which entitle the holder thereof to acquire AGI Common Stock (but not amendments thereto), or (v) shares of AGI Common Stock or any securities of AGI issued and sold in the Proposed Private Placement.

6.5

Additional Membership Interests in Yabbly.

(a)

As soon as practicable after the Exercise Date (as such term is defined in the First AGI Warrant), Yabbly shall issue and deliver to AGI an additional class of Membership Units in Yabbly representing AGI’s right to receive 2.7847% of the cumulative profits and none of the cumulative losses in Yabbly after the date of issuance thereof.   The parties shall enter into an appropriate amendment to the Operating Agreement of Yabbly to effectuate the foregoing. 

(b)

As soon as practicable after the Exercise Date (as such term is defined in the Second AGI Warrant), Yabbly shall issue and deliver to AGI an additional class of Membership Units in Yabbly representing AGI’s right to receive 2.7778% of the cumulative profits and none of the cumulative losses in Yabbly after the date of issuance thereof.   The 

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parties shall enter into an appropriate amendment to the Operating Agreement of Yabbly to effectuate the foregoing. 

ARTICLE VII

INDEMNIFICATION

7.1

Survival.  Each covenant or agreement in this Agreement shall survive this Agreement without limitation as to time until fully performed in accordance with its terms and each representation and warranty in this Agreement or in the Schedules shall survive the Closing for the eighteen (18) period following the Closing Date (the "Survival Period"); provided, however, that the Survival Period for the representations and warranties set forth in the following sections shall terminate on the expiration of the applicable statute of limitations:  4.1, 4.2, 4.3, 4.4, 4.16, 5.1, 5.2, 5.3, 5.4 and 5.9.  Notice of any claim for indemnification under this Article VII with respect to any representation and warranty must be given to the party against whom indemnification is sought within the Survival Period.

7.2

Indemnification by YHI and Yabbly.  From and after the date hereof, each of YHI and Yabbly (subject to Section 7.5) agrees to indemnify fully, hold harmless, protect and defend AGI, any Affiliates of AGI and their respective directors, officers, agents and employees, successors and assigns from and against:

(a)

any and all Losses and Expenses incurred by any of them arising out of, relating to, or based upon any inaccuracy in, or breach of, any of the representations or warranties of YHI contained in this Agreement, the Ancillary Documents or in the Schedules or Exhibits hereto; and

(b)

any and all Losses and Expenses incurred by any of them arising out of, relating to, or based upon any failure to perform, or other breach of, any of the covenants or agreements of YHI or Yabbly contained in or incorporated into this Agreement, the Ancillary Documents or in the Schedules hereto.

The right of AGI to be indemnified hereunder shall not be limited or affected by any investigation conducted or notice or Knowledge obtained by or on behalf of AGI.  

7.3

Indemnification by AGI.  From and after the date hereof, AGI agrees to indemnify fully, hold harmless, protect and defend YHI, Yabbly and their respective Affiliates, and all of their respective managers, members, officers, agents and employees, successors and assigns from and against:

(a)

any and all Losses and Expenses incurred by any of them arising out of, relating to, or based upon any inaccuracy in, or breach of, any of the representations or warranties of AGI contained in this Agreement, the Ancillary Documents or in the Schedules or Exhibits hereto; 

(b)

any and all Losses and Expenses incurred by any of them arising out of, relating to, or based on any failure to perform, or other breach of, any of the covenants or 

23

agreements of AGI contained in this Agreement, the Ancillary Documents or in the Schedules or Exhibits hereto.  

The right of YHI to be indemnified hereunder shall not be limited or affected by any investigation conducted or notice or Knowledge obtained by or on behalf of YHI.  

7.4

No Contribution.  Following the Closing, YHI shall not have, and shall not exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against Yabbly in connection with any indemnification obligation or any other Losses or Expenses for which YHI may become liable under or in connection with this Agreement. Following the Closing, AGI shall not have, and shall not exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against Yabbly in connection with any indemnification obligation or any other Losses or Expenses for which AGI may become liable under or in connection with this Agreement.

7.5

Indemnification by Yabbly.  Prior to the Closing, (a) AGI shall have the right to proceed against Yabbly for breach of its representations, warranties or covenants in the same manner and to the same extent as AGI may proceed against YHI hereunder and (b) Yabbly  agrees to indemnify AGI in the same manner and to the same extent as YHI is required to indemnify AGI hereunder.  Notwithstanding anything to the contrary set forth herein, (i) all representations, warranties, covenants and agreements made by Yabbly pursuant to this Agreement shall expire at the Closing and no party may assert a claim against AGI after the Closing the basis of which alleges the breach or inaccuracy of representations, warranties, covenants and agreements made by Yabbly pursuant to this Agreement.

ARTICLE VIII

GENERAL PROVISIONS

8.1

Notices.  All notices or other communications required or permitted hereunder shall be in writing and shall be deemed given or delivered (i) when delivered personally, (ii) if transmitted by facsimile when confirmation of transmission is received, or (iii) if sent by registered or certified mail, return receipt requested, or by private courier when received; and shall be addressed as follows:

(a)

If to AGI:

Atomic Guppy, Inc. 

19333 Collins Ave.

Penthouse 2501

Sunny Isles Beach, FL 33160

Attention:  Leigh Rothschild

Telecopy:  (954) 206-0750

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with a copy to:

Akerman Senterfitt

One Southeast Third Avenue, 25th Floor

Miami, Florida  33131

Attention:  Bradley D. Houser, Esq.

Telecopy:  (305) 374-5095

(b)

If to YHI:

Yabbly Holdings, LLC

110 East Broward Blvd.

14th Floor

Fort Lauderdale, FL 33301

Attention:   Edward Cespedes

Telecopy:  (954) 769-5930

with a copy to:

Tripp Scott P.A.

110 SE 6th Street

15th Floor

Fort Lauderdale, FL 33301

Attention:  William J. Gross, Esq.

Telecopy:  (954) 761-8475

or to such other address as such party may indicate by a notice delivered to the other party hereto.

8.2

Successors and Assigns.  The rights of any Party under this Agreement shall not be assignable by such Party without the written consent of the other; provided that YHI and Yabbly may assign their rights under Section 6.3 in connection with a permitted transfer of the AGI Common Shares or Additional AGI Common Shares, as applicable.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and permitted assigns.  

8.3

Entire Agreement; Amendments.  This Agreement and the Exhibits and Schedules referred to herein and the documents delivered pursuant hereto contain the entire understanding of the parties hereto with regard to the subject matter contained herein or therein, and supersede all prior agreements, understandings or letters of intent between or among any of the Parties, including without limitation the Letter of Intent.  This Agreement shall not be amended, modified or supplemented except by a written instrument signed by an authorized representative of each of the Parties.

8.4

Waivers.  Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the Party or Parties entitled to the benefit thereof.  Any such waiver shall be validly and sufficiently given for the purposes of this Agreement if, as to any Party, it is in writing signed by an authorized representative of such Party.  The failure of 

25

any Party to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision.  No waiver of any breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach.

8.5

Partial Invalidity.  Wherever possible, each provision hereof shall be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.

8.6

Execution in Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by each of the Parties and delivered to each of the Parties.

8.7

Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws (as opposed to the conflicts of law provisions) of the State of Florida. 

8.8

Submission to Jurisdiction.  The Parties hereby irrevocably submit in any suit, action or proceeding arising out of or related to this Agreement or any of the transactions contemplated hereby or thereby to the non-exclusive jurisdiction of (i) the United States District Court for the Southern District of Florida and the jurisdiction of any court of the State of Florida located in Broward County or (ii) the United States District Court for the Southern District of New York and the jurisdiction of any court of the State of New York located in New York County and waive any and all objections to jurisdiction that they may have under the laws of the State of Florida or New York or the United States and any claim or objection that any such court is an inconvenient forum.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written.

			
	 
	ATOMIC GUPPY, INC.

	  

	 
	 

	  

	 
	 

	                                                   

	By:

	/s/ Adam Bauman

	 
	Name: Adam Bauman

	 
	Title:   Chief Executive Officer

	  

	 
	 

	  

	 
	 

	 
	YABBLY HOLDINGS, LLC 

	  

	 
	 

	  

	 
	 

	 
	By:

	/s/ Edward A. Cespedes

	 
	Name: Edward A. Cespedes

	 
	Title:   Vice President

	  

	 
	 

	  

	 
	 

	 
	YABBLY, LLC

	  

	 
	 

	  

	 
	 

	 
	By

	/s/ Edward A. Cespedes

	 
	Name: Edward A. Cespedes    

	 
	Title:   Vice President

27

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