RE:ETG/HCU vote designation has changed On February 14, 2013, Entre entered into an Equity Participation and Funding Agreement (the “2013 Agreement”)
On March 1, 2016, Entre and Sandstorm entered into an Agreement to Amend,
The 2013 Agreement provided for a partial refund of the Deposit and a pro rata reduction in the number of metal credits deliverable to Sandstorm in the event of a partial expropriation of Entre’s economic interest, contractually or otherwise, in the Entre/Oyu Tolgoi JV Property. The Amended Funding Agreement provides that Entre will not be required to make any further refund of the Deposit if Entre’s economic interest is reduced by up to and including 17%. If there is a reduction of greater than 17% up to and including 34%, the Amended Funding Agreement provides Entre with greater flexibility and optionality in terms of how Entre will refund a corresponding portion of the Deposit. In the event of a full expropriation, the remainder of the of the Unearned Balance after the foregoing refund must be returned in cas with interest
Under the Amended Funding Agreement, Sandstorm will vote its shares of Entre as Entre’s Board specifies with respect to any proposed acquisition of Entre, provided the potential acquirer agrees to execute and deliver to Sandstorm a deed of adherence to the Amended Funding Agreement.
Tight Lines
Gilly