Document:

Tally Ho 10-KSB 12-31-05 Amend 1 Ex 10-2 ProTrust Heads of Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      10.2

     

    PRIVATE
      AND CONFIDENTIAL

     

    To:
      The
      Directors

     

    Protrust
      Financial Services Group SA (the "Vendor") Via Frasca 5

     

    PO
      Box
      5237

     

    CH-6901
      Lugano

     

    Switzerland

     

    HEADS
      OF AGREEMENT

     

    November
      29 2005

     

    Subject
      to Contract

     

    Dear
      Sirs,

     

    RE:
      Proposed acquisition of the entire issued share capital of Protrust Private
      Clients SA (the "Target")

     

    We
      set
      out below the basis upon which Tally Ho Ventures Inc (the "Purchaser"), would
      be
      prepared (subject to contract) to purchase the whole of the issued share capital
      of the Target (the "Acquisition").

     

    For
      the
      avoidance of doubt this letter is not intended to create legal relations between
      the parties save that paragraphs 3 and 4 shall be legally binding on the parties
      and enforceable in the courts of England in accordance with paragraph
      5.2.

     

    1.
      CONSIDERATION

     

    The
      price
      payable for the issued share capital of the Target is US$ 8 million (eight
      million US dollars) (the "Consideration"). Completion will be subject only
      to
      satisfactory due diligence, agreement of legal documentation and approval by
      the
      board of the Purchaser.

     

    The
      Consideration will be satisfied as follows:

     

    1.1
      US$ 4
      million (four million US dollars) in cash payable in the following
      manner:

     

    (a)
      US$ 2
      million (two million US dollars) to be paid on completion; and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)
      US$ 2
      million (two million US dollars) to be paid within 3 calendar months of
      completion; and

     

    1.2
      the
      issue to the Vendor of 800,000 duly authorized and fully paid shares of common
      stock in the capital of Tally Ho Ventures Inc. (the "Consideration Stock").
      The
      Consideration Stock will be duly and validly issued on completion, registered
      for sale under the Securities Act 1933 and will be eligible for immediate public
      resale in the United States and will not constitute restricted securities.
      All
      necessary NASDAQ approvals for the listing of the Consideration Stock to be
      obtained prior to completion.

     

    The
      Purchaser will either:

     

    (a)
      enter
      into an agreement on completion under which it will be obliged, on request
      by
      the Vendor at any time after the first anniversary of completion, to purchase
      all of the Consideration Stock from the Vendor at a fixed price of US$5 (five
      US
      dollars) per share of common stock or the market value of the Consideration
      Stock if higher. Such repurchase obligation to be guaranteed by a reputable
      United States bank; or

     

    (b)
      arrange for a put option in favour of the Vendor with a reputable United States
      financial institution to be placed over the Consideration Stock on completion
      at
      a fixed price of US$5 (five US dollars) per share of common stock, such option
      to be exercisable at any time after the first anniversary of
      completion.

     

    2.
      DUE
      DILIGENCE

     

    The
      parties will exchange information and provide any and all due diligence and/or
      any other documentary information requested by the Purchaser or the
      Vendor.

     

    3.
      CONFIDENTIALITY

     

    The
      matters contemplated by this letter are to be treated in the strictest
      confidence and should not be disclosed to any person whatsoever (save to the
      extent required by law or by the rules and requirements of any applicable
      regulatory body) without the prior written consent of the other party hereto.
      In
      the event that the Acquisition is not completed, the Purchaser undertakes that
      it will not disclose or make use of, for its own benefit, any of the information
      of a confidential nature relating to the Target or the Vendor which has been
      disclosed to the Purchaser. The provisions of this paragraph 3 do not apply
      to
      any information which is publicly available at the time of disclosure unless
      disclosed through breach of this undertaking nor does it apply to any
      information disclosed by the parties to the extent that disclosure is required
      by law or any regulation.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.
      COSTS

     

    Save
      as
      expressly set out in this letter, both the Vendor and the Purchaser agree to
      bear their own legal, accountancy and other costs and expenses incurred in
      connection with the negotiation, preparation and implementation of this letter
      and the Acquisition.

     

    5.
      GOVERNING LAW AND JURISDICTION

     

    5.1
      This
      letter (and any dispute, controversy, proceedings or claim of whatever nature
      arising out of or in any way relating to this letter or its formation) shall
      be
      governed by and construed in accordance with English law.

     

    5.2
      Each
      of the parties to this letter irrevocably agrees that the courts of England
      shall have exclusive jurisdiction to hear and decide any suit, action or
      proceedings, and/or to settle any disputes, which may arise out of or in
      connection with this letter (respectively, "Proceedings" and "Disputes") and,
      for these purposes, each party irrevocably submits to the jurisdiction of the
      courts of England.

     

    5.3
      Without prejudice to any other permitted mode of service the parties agree
      that
      service of any claim form, notice or other document for the purpose of any
      Proceedings begun in England shall be duly served upon it if delivered
      personally or sent by registered post, in the case of:

     

    (a)
      the
      Vendor to Protrust Financial Services Group SA, Via Frasca 5, PO Box 5237,
      CH-6901, Lugano, Switzerland (marked for the attention of Alex Bell);
      and

     

    (b)
      the
      Purchaser to Tally Ho Ventures Inc, 410 Park Avenue, 15th Floor, New York,
      NY
      10022, USA

     

    or
      such
      other person and address in as the parties shall notify to the other from time
      to time.

     

    Yours
      faithfully,

     

    Peter
      James Smith

     

    an
      authorised representative on behalf of 

     

    TALLY
      HO VENTURES INC

     

    We
      confirm our acceptance to the terms of this letter by signing a copy of this
      letter.

     

    Alex
      Bell

     

    Authorised
      representative on behalf of

     

    PROTRUST
      FINANCIAL SERVICES GROUP SATally Ho 10-KSB 12-31-05 Amend 1 Ex 10-3 Winterman Group Loan

    EXHIBIT
      10.3

     

    DATED
      19TH NOVEMBER 2005

     

    WINTERMAN
      GROUP LIMITED

     

    AND

     

    TALLY
      HO VENTURES, INC.

     

    AGREEMENT

     

    FOR

     

    SECURED
      LOAN AND SHARE OPTION

     

    THIS
      AGREEMENT is made the 19th November 2005

     

    BETWEEN

     

    (1)
      TALLY
      HO VENTURES, INC., a company incorporated under the laws of State of Delaware
      whose administrative office is at 115 Route d'Arlon, L-8311 Capellen, Luxembourg
      (hereinafter called "the Company"); and

     

    (2)
      WINTERMAN GROUP LIMITED a company incorporated under the laws of Republic of
      Seychelles with registration number 020656 with registered office at 306
      Victoria House, Victoria, Mahe, Seychelles and administrative office at Avenda.
      Marques del Duero 76, Tercer Piso, Ofi F, San Pedro de Alcantara, 29760 Malaga,
      Spain ("the Investor").

     

    WHEREAS
      the Investor has been requested to make a loan to the Company which the Investor
      has agreed to do upon the terms and conditions hereinafter
      contained.

     

    THE
      parties agree as follows:

     

    1.
      Nature
      of Loan

     

    The
      Investor shall forthwith loan to the Company the sum of $2,000,000 (two million
      United States Dollars) (the "Loan") upon the terms hereinafter
      mentioned.

     

    2.
      Purpose of the Loan

     

    The
      loan
      shall be for the purpose of purchasing Master Finance Holdings S A and its
      subsidiaries (the Target Company) of 115 Route d'Arlon, L-8311 Capellen,
      Luxembourg.

     

    3.
      Security

     

    The
      Company shall deliver as security for the loan a charge over the entirety of
      the
      shares in Master Finance Holdings S A (the Security). This security shall remain
      in place until the loan has been fully repaid or until such time as the parties
      agree.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Upon
      default of the repayment of the loan or upon any liquidation process applied
      to
      the Company the sum loaned plus any interest accrued shall be repaid by the
      full
      transfer of all rights, interests and ownership of Master Finance Holdings
      S
      A.

     

    4.
      Interest

     

    The
      Company shall pay to the Investor interest on the loan at the rate of 10% per
      annum the first such payment to be made on a pro rata basis on 30th June 2006
      and thereafter (if the Option Period is extended by the Investor) annually
      beginning the 31st January 2007, unless conversion has taken place as per clause
      6.

     

    5.
      Repayment

     

    (A)
      Save
      as otherwise herein or by the Security provided the Company will repay the
      Loan
      by a payment after 3rd January 2006 but before the 30th June 2006 (the "Option
      Period") or on demand as the Investor may choose, this provision is in addition
      to clause 6 which details conversion rights.

     

    (B)
      The
      demand may be exercised by the Investor in whole or in part at any time or
      times
      during the Option Period by serving written notice on the Company stating the
      amount of the loan in respect of which the demand is being sought on that
      occasion.

     

    6.
      Option
      to convert into shares and application of proceeds

     

    (A)
      The
      Company hereby grants to the Investor an option (the "Option") to convert the
      loan for up to 666,667 ordinary shares of the Company at a price of $3.00 (three
      United States Dollars) per ordinary share (the "Option Price") at any time
      after
      the loan is made ("the Option Period"). If the market price is below $3.00
      per
      share at the time of conversion the conversion shall take place at a 25%
      discount to the prevailing market price on that day.

     

    (B)
      The
      Option may be exercised by the Investor in whole or in part at any time or
      times
      during the Option Period by serving written notice on the Company stating the
      number of shares in respect of which the Option is being exercised on that
      occasion.

     

    (C)
      The
      ordinary shares to be issued by the Company pursuant to any exercise of the
      Option will be allotted within 14 days after service of the notice by which
      they
      are exercised and certificates in respect of such shares will be dispatched
      not
      later than twenty eight days after the date of such service to the Investor
      or
      as the Investor may direct.

     

    (D)
      If at
      the date of any exercise of the Option any of the ordinary shares of the Company
      are admitted to OTC Bulletin Board or other exchange, the Company shall make
      application for the admission of the ordinary shares issued upon any exercise
      of
      the Option to the Official List or (as appropriate) for permission for dealings
      to take place on the appropriate market and shall use its best endeavors to
      procure such admission as soon as possible following allotment.

     

    (E)
      After
      any allotment of fully paid ordinary shares in the Company by way of
      capitalization of profits or reserves to holders of ordinary shares on the
      register on a date (or by reference to a record date) on or before the expiry
      of
      the Option Period or upon any sub-division or consolidation of the ordinary
      shares on such a date, the number and/or nominal value of ordinary shares to
      be
      subscribed on any subsequent exercise of the Option will be increased or, as
      the
      case may be, reduced in due proportion and the Option Price will be adjusted
      accordingly, with effect from the record date for such capitalization,
      sub-division or consolidation. On any such capitalization, sub-division or
      consolidation the auditors for the time being of the Company shall certify
      the
      appropriate adjustments and, within twenty-eight days thereafter, a copy of
      such
      certificate will be sent to the Investor.

     

    7.
      Protection of share option

     

    (A)
      The
      Company agrees with the Investor that until the expiry of the Option Period
      the
      Company shall procure that:

     

    (i)
      there
      shall be at all times a sufficient number of un-issued shares in the capital
      of
      the Company to enable the Company to discharge its obligations under the Option
      without increasing its authorised share capital and the Company shall procure
      that it has the relevant authorisations of the shareholders of the Company
      to
      issue ordinary shares to the Investor to discharge its obligations under the
      Option;

     

    (B)
      The
      Company warrants that authorized share capital of the Company immediately prior
      to the Company's execution of this agreement is $100000 divided into 100 million
      ordinary shares of $0.001 each of which 8 million ordinary shares have been
      issued and are fully paid.

     

    (C)
      The
      Company warrants that there are no options or agreements outstanding which
      call
      for the issue of or accord to any person or company the right to call for the
      issue of any shares in the capital of the Company or any of its
      subsidiaries.

     

    8.
      Subsidiaries

     

    The
      Company agrees with the Investor that the Company will procure that all of
      its
      subsidiaries both present and future shall observe and perform the provisions
      and conditions contained in this agreement to be observed and performed by
      subsidiaries of the Company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    9.
      Liaison and information

     

    The
      Company agrees with the Investor that the Company will keep the Investor
      informed of the progress of its business and that of each of its subsidiaries
      and furnish the Investor to such extent and in such form and detail as the
      Investor may from time to time reasonably require with particulars of any
      matters concerned with and arising out of the activities of the Company and
      those of each of its subsidiaries and in particular but without limiting the
      generality of the foregoing shall furnish the Investor with:

     

    (a)
      copies of the trading and profit and loss account and audited balance sheet
      in
      respect of each financial year of the Company and every subsidiary thereof
      forthwith upon the same becoming available and not in any event later than
      four
      months after the end of each such financial year.

     

    10.
      Application of terms and conditions

     

    The
      parties hereto agree that save as hereby or by writing between the parties
      varied all the provisions contained in the Security shall so far as applicable
      apply to the payment of the loan together with all interest thereon and shall
      remain in full force and effect so long as the loan remains outstanding. If
      there is any conflict between the terms of this agreement and the Security
      then
      the terms of this agreement shall prevail.

     

    11.
      Duration of agreement

     

    The
      terms
      of this agreement come into affect on receipt of the loan and will last until
      the loan has been repaid or the conversion as per clause 6 is
      affected.

     

    12.
      Notices

     

    Where
      a
      notice is to be given to any party hereto it may be served by leaving it at
      the
      registered office or last known address of that party or by sending it
      first-class letter post to the registered office or the last known address
      of
      that party when it shall be deemed to have been served at the expiration of
      forty-eight hours after it has been posted.

     

    13.
      Definitions

     

    Where
      words and expressions used in this agreement are also used in the Companies
      Act
      1985 such words and expressions shall have the meanings attached to them
      respectively by that Act and the following expression used in this agreement
      shall have the meaning as set out below:

     

    "The
      Investors' Group" means the Investor, any parent company of the Investor and any
      subsidiary of the Investor or any such parent company.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    14.
      Interpretation

     

    IN
      this
      agreement unless the context otherwise requires:

     

    (A)
      The
      masculine gender includes the feminine and words denoting the singular number
      only shall include the plural and vice versa;

    

     (B)
      Covenants, warranties, undertakings and guarantees by more than one
      party
      hereto shall be deemed to be made jointly and

    
      severally;

    

     

    (C)
      Covenants warranties and undertakings given by an individual shall be binding
      on
      his personal representatives and executors.

     

    15.
      Counterparts

     

    This
      agreement may be executed in any number of counterparts and by the Parties
      to it
      on separate counterparts, each of which, when executed and delivered, shall
      be
      an original but all the counterparts shall together constitute one and the
      same
      instrument.

     

    16.
      Law
      and Jurisdiction

     

    THIS
      agreement shall be governed by and construed in accordance with United States
      law and under the Laws of the State of Delaware and each party to this agreement
      submits to the non-exclusive jurisdiction of these courts.

     

    THIS
      agreement has been executed and delivered as at the date first above
      mentioned.

    

    
      	
              Executed
                by )

              Peter
                Smith )

              )
                .............................................

               

              President

              Tally
                Ho Ventures Inc

               

              Executed
                by )

              Nic
                Day ) .............................................

              )
                Director Winterman Group Ltd

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