Sorry that was the summary.
The actual clause is below but someone mentioned they invoked clause 24, not 16 and if they're saying we were under breach of contract for a year without justified motive then I'd like to see them prove it in Arbitration although personally I don't think it will be necessary, as what justification do they have for breach of contract?
CVG was supposedly responsible for the permit but CVG is part of the Venezuelan government so that is definitely not the reason for our breach of contract.
Not to mention, we received a letter from Minamb that our MOC was in good state as recent as August 2010, wasn't it?
If they claim it was due to "delay in the beginning" then that delay is not because of Crystallex.
Suspension of activities? Were we down a security guard last week? or forgot to put in new toilet paper into that clinic Crystallex built?
Seriously now... They have zero justification other then their own whimsical fancy.
I still think this is part of some "process" that in hindsight will make sense and the shareholders that stuck through will do just fine. I don't want to conspire on that anymore. Let's just get it done.
CLAUSE SIXTEENTH
TERMINATION OF THE CONTRACT
1- The CORPORATION and CRYSTALLEX may mutually agree the termination of this Contract when the circumstances so require. Within a period of time to be agreed by the Parties for the resolution of the Contract, both agree to wholly fulfill the obligations under this Contract.
2- In the case of breach by any of the Parties, under clause Sixteenth of this Contract, theaffected Party shall have the right to terminate this Contract immediately after ninety (90) days from the date in which the Party notifies the other in writing, of non-fulfillment of any obligations under this Contract, on condition that within such period of time said breach has not been corrected. If the Party that notifies of the breach considers that it can be corrected before the ninety (90) days mentioned, it must expressly indicate to the other Party in the notification the reasonable period in which the breach of contract must be corrected, with sufficient motivation on which such period is based. If the breach of contract is corrected in a period longer than that reasonably expressed by the aggravated Party, or longer than the period accepted by the latter upon proposal by the aggravating Party, on condition that it not exceed ninety (90) days, the Party that has violated the Contract shall pay the correspondent damages caused by the delay.
The stipulations in this clause shall apply in all cases of breach of contract, except on those cases in which the contract foresees a specific manner and opportunity for the termination of the contract, and the provisions in clause twenty fourth of this contract
...
CLAUSE TWENTY THIRD
APPLICABLE LAW
The Parties agree expressly that the present Contract and its annexes are subject to the Laws of the Bolivarian Republic of Venezuela.
CLAUSE TWENTY FOURTH
RESCITION OF THE CONTRACT
This Contract may unilaterally rescinded by the CORPORATION without indemnity for CRYSTALLEX, in the case of delay in the beginning, suspension of any of its activities or contractual breach for a period of one (1) year without justified motive.
