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EXHIBIT 10.23
 
 
 
 

 
 
 

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NOTE AND TRUST DEED MODIFICATION AGREEMENT
OF JANUARY 2009

I.           BACKGROUND:  Effective August 5, 2005, the undersigned Calais
Resources, Inc, a British Columbia corporation (“Calais-BC”), and Calais
Resources Colorado, Inc, a Nevada corporation (“Calais-CO”) (collectively, the
“Calais Companies”) executed a promissory note (the “Note”) in which Calais-BC
and Calais-CO promised to pay Duane A. Duffy, Glenn E. Duffy, James Ober, and
Luke Garvey (Holders herein) the sum of $807,650.11.  Concurrently, the Calais
Companies and the Holders entered into a Security Agreement, pursuant to which
the Calais Companies executed a deed of trust encumbering certain real property
located in Boulder County, Colorado.  On or about December 15, 2005, the Calais
Companies made a principal payment due under the Note in the amount of
$166,000.  In March 2007, following a default by the Calais Companies on further
payments, the Note was modified and extended to require monthly installment
payments of $75,000.00 on the fifteenth (15th) day of each month, beginning
April 15, 2007 and continuing until the entire Note balance was paid.  No
monthly payments were made by the Calais Companies.  On or about March 31, 2007,
the Calais Companies made a further payment of $200,000 on the amount due and
payable.  In November 2007, the Calais Companies and the Holders agreed to a
further modification of the Note to extend repayment terms through April 1,
2008, pending the expected resolution by the Calais Companies of certain
financial issues.  Subsequent to the April Agreement on April 1, 2008 Calais
made a payment of $100,000, an additional payment of $50,000 on May 1, 2008, and
an additional payment of $25,000 on June 20, 2008.  As of August 1, 2008 the
agreed to balance is $816,800.07.  A payment in the amount of $12,500 was made
on August 5, 2008.

In the interest of assuring full payment of all principal and interest due under
the Note as modified, the Calais Companies and the Holders now agree to revise
and amend the terms of the Note further, as follows:

II.           AGREEMENTS OF THE PARTIES:

A.     
The balance due under the Note as of January 1, 2009 shall be $861,725.19 as set
forth on attached Exhibit 1.  Commencing January 1, 2009, interest on the unpaid
balance shall accrue at a rate of 15.9 percent per annum through the date on
which the unpaid balance is paid in full.

B.     
The Calais Companies shall make an initial payment of $20,000 on May 1, 2009,
and shall thereafter pay, on or before the first day of each of the (7) seven
succeeding months, commencing June 1, 2009, the sum of $50,000 per
month.  Commencing January 1, 2010 the monthly payment will be increased to
$100,000 per month and will be paid until the loan balance including all
interest and fees is paid in full.

 
 

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C.     
The Calais Companies shall issue new warrants to the Duffy Group as summarized
below with an exercise price of $0.12 and expiration date of January 1, 2020.

Name                                                Number of New Warrants

Duane Duffy                                                           1,656,064

Glenn Duffy                                                           1,806,064

James Ober                                                              297,184

Luke Garvey                                                              297,184

Previously issued warrant documents for Calais Resources will be returned to the
Company.

D.     
All payments to Holders by the Calais Companies, shall be delivered to each
Holder directly in accordance with the following allocation:

 
 
Duane A. Duffy – 40.3746 %

 
Glenn E. Duffy  – 40.3746 %

 
James Ober       --   9.6254 %

 
Luke Garvey     --   9.6254 %

 
Cash payments shall be delivered by wiring the respective funds to each Holder
in accordance with instructions to be furnished by electronic mail to David K.
Young at DYoung1619@aol.com.
 
All modifications of the Note described herein shall also modify the terms of
the deed of trust and security agreement referenced herein.. All other terms of
the Note and such deed of trust and security agreement shall remain in full
force and effect.

Executed on the dates shown below by:

 
 

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CALAIS RESOURCES, INC.     CALAIS RESOURCES COLORADO, INC.                      
By:  _______________________________
   
By: __________________________
 
        David K. Young
   
       David K. Young
 
        President and Chief Executive Officer
   
       President and Chief Executive Officer
 

STATE OF COLORADO                  )
) ss.
COUNTY OF ____________         )

On this ____ day of _______________, 2009, before the undersigned officer,
personally appeared David K. Young, who acknowledged himself to be the President
and Chief Executive Officer of Calais Resources, Inc. and Calais Resources
Colorado, Inc., and who, as such, being authorized so to do, executed the
foregoing instrument for the purposes therein contained, by signing on behalf of
each such corporation.
 
IN WITNESS WHEREOF, I hereunto set my hand and official seal.

My Commission
Expires:                                                                           ___________________________________
                                                                                                                       
Notary Public
_______________________

Duane A. Duffy

________________                                                                      ___________________________________
Date                                                                          Duane
A. Duffy

STATE OF COLORADO                  )
) ss.
COUNTY OF ____________         )

The foregoing instrument was acknowledged before me on this _____ day of
________, 2008, by Duane A. Duffy.

My Commission
Expires:                                                                           ___________________________________
                                        Notary Public
_____________________

 
 

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Glenn E. Duffy

__________________________________
Date                                                                       Glenn
E. Duffy

 
STATE OF FLORIDA                       )
) ss.
COUNTY OF ____________         )

The foregoing instrument was acknowledged before me on this _____ day of
________, 2008, by Glenn E. Duffy.

My Commission
Expires:                                                                           ___________________________________
                                       Notary Public
_______________________

Luke Garvey

__________________________________
Date:                                                                           Luke
Garvey
 

STATE OF______________          )
) ss.
COUNTY OF ____________         )

The foregoing instrument was acknowledged before me on this _____ day of
________, 2008, by Luke Garvey.

My Commission
Expires:                                     ___________________________________
Notary Public
_______________________

 
 

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James Ober

__________________________________
Date:                                                                           James
Ober

 
STATE OF______________          )
) ss.
COUNTY OF ____________         )

The foregoing instrument was acknowledged before me on this _____ day of
________, 2008, by James Ober.

My Commission
Expires:                                   ___________________________________
Notary Public
_________________________

 
 

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Exhibit 1

 
Calculation of Note Principal as of January 1, 2009
 

 

 
Item
Interest / Day
Days
Amount
New Principal
Principal and interest due as of August 1, 2008:
     
$816,800.07
Payment - $12,500 on August 5, 2008
   
$12,500.00
804,300.07
Per Diem Interest Accruing since August 1, 2008 to Sept 1, 2008 at 15.9% APR
$350.37
31
10,861.36
$815,161.43
Per Diem Interest Accruing since Sept 1, 2008 to Dec 31, 2008 at 15.9% APR
$355.10
122
$43,321.92
858,483.35
Late Fees for Sept, Oct, Nov, Dec 2008 with interest
   
$3,241.84
861,725.19
Total Amount Due – Dec 31, 2008
     
$861,725.19

 
 
 
 
 
 
 

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