TERMINATION OF GFI ARRANGEMENT AGREEMENT
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On August 27, 2009 GFI responded to the Company’s termination notice referred to in the Company’s news
release of August 25, 2009. GFI accepted that the Agreement was terminated but disputed the Company’s
entitlement to receive the Break Fee and alleged certain breaches of the Agreement by Forsys. Further to GFI’s
letter, on September 3, 2009 the Company was served with a Statement of Claim filed in the Superior Court of
Justice (Ontario) seeking damages of $150 million and a declaration that the Break Fee was not payable.
On September 17, 2009 the Company issued a demand for payment of the Break Fee under the personal
guarantee given by Mr. George A Forrest.
On September 23, 2009 a Statement of Defence and Counterclaim for the Break Fee was filed on behalf of the
Company in the Superior Court of Justice (Ontario) against GFI and Mr. George A Forrest.
The Company is strongly of the view that the GFI claim is entirely without merit and will vigorously pursue
payment of the Break Fee. No accrual has been made in the Company’s third quarter financial statements for
any contingent loss resulting from GFI’s allegations. The Company will not record the Break Fee until an award
has been made by the Court and this amount has been received by the Company.
sedar.com/...Code.do;jsessionid=0000HBnCt_jtqC4zbyF2UoLnFVi:-1
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On August 27, 2009 GFI responded to the Company’s termination notice referred to in the Company’s news
release of August 25, 2009. GFI accepted that the Agreement was terminated but disputed the Company’s
entitlement to receive the Break Fee and alleged certain breaches of the Agreement by Forsys. Further to GFI’s
letter, on September 3, 2009 the Company was served with a Statement of Claim filed in the Superior Court of
Justice (Ontario) seeking damages of $150 million and a declaration that the Break Fee was not payable.
On September 17, 2009 the Company issued a demand for payment of the Break Fee under the personal
guarantee given by Mr. George A Forrest.
On September 23, 2009 a Statement of Defence and Counterclaim for the Break Fee was filed on behalf of the
Company in the Superior Court of Justice (Ontario) against GFI and Mr. George A Forrest.
The Company is strongly of the view that the GFI claim is entirely without merit and will vigorously pursue
payment of the Break Fee. No accrual has been made in the Company’s third quarter financial statements for
any contingent loss resulting from GFI’s allegations. The Company will not record the Break Fee until an award
has been made by the Court and this amount has been received by the Company.
sedar.com/...Code.do;jsessionid=0000HBnCt_jtqC4zbyF2UoLnFVi:-1