Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Nord Resources Corp. - Exhibit 4.1

MODIFICATION AGREEMENT

          BY
  THIS MODIFICATION AGREEMENT (the “Agreement”), made and entered
  into as of the 30th day of September, 2006, NORD RESOURCES CORPORATION,
  a company organized under the laws of Delaware (“Borrower”),
  and NEDBANK LIMITED, a limited liability company organized under the
  laws of the Republic of South Africa (“Lender”), confirm and
  agree as follows:

RECITALS

          A.
  Borrower executed an Amended and Restated Secured Promissory Note dated May
  31, 2006 (the “Note”), in terms whereof inter alia Borrower
  undertook to pay to Lender the original principal amount of $4,900,000 with
  simple interest accruing from the date of the Note until the Note is paid in
  full at a rate of 10% per annum.

          B.
  The Note is secured by, among other things, the Deed of Trust and a UCC-1 financing
  statement (the “UCC Financing Statement”), associated with
  the Johnson Camp Collateral (the Deed of Trust, the UCC Financing Statement
  and the other documents contemplated by the Note are collectively referred to
  as the other “Credit Documents”).

          C.
  Borrower and Lender desire to modify the Note as set forth herein. All undefined
  capitalized terms used herein shall have the meaning given them in the Note.

1. MODIFICATIONS OF THE NOTE.

          (a)
  From and after the date of this Agreement, the rate at which interest shall
  accrue on the principal amount of the Note shall be increased to 11% per annum
  and the rate at which interest shall accrue during the continuance of a Default
  shall be increased to 14% per annum.

          (b)
  Section 1 of the Note is hereby deleted in its entirety and replaced with the
  following:

“1. Maturity Date. The
principal balance hereof, and accrued but unpaid interest thereon, shall be due
and payable on the earlier of: (a) December 22, 2006; (b) the closing of a
registered equity offering by Borrower which raises not less than
$20,000,000.”

2. OTHER MODIFICATIONS, RATIFICATIONS AND
AGREEMENTS.

          (a)
  All references to the Note in the other Credit Documents are hereby amended
  to refer to the Note as hereby amended.

          (b)
  Borrower acknowledges that the principal indebtedness evidenced by the Note
  is just and owing, that the balance thereof in the amount of $4,900,000 for
  the Note, as of September 30, 2006 is correctly shown in the records of Lender
  as of the date hereof, and Borrower agrees to pay the indebtedness evidenced
  by the Note and the indebtedness secured by the other Credit Documents, according
  to the terms thereof, as herein modified. 

           (c)
  Borrower hereby reaffirms to Lender each of the representations, warranties,
  covenants and agreements of Borrower set forth in the Note and the other Credit
  Documents, with the same force and effect as if each were separately stated
  herein and made as of the date hereof.

           (d)
  Borrower hereby ratifies, reaffirms, acknowledges, and agrees that the Note
  and the other Credit Documents represent valid, enforceable and collectible
  obligations of Borrower, and that there are no existing claims, defenses, personal
  or otherwise, or rights of setoff whatsoever with respect to any of these documents
  or instruments. Borrower further acknowledges and represents that, except as
  acknowledged above, no event has occurred and no condition exists that, after
  notice or lapse of time, or both, would constitute a default under this Agreement,
  the Note or any other Credit Documents.

           (e)
  All terms, conditions and provisions of the Note and the other Credit Documents
  are continued in full force and effect and shall remain unaffected and unchanged
  except as specifically amended hereby. The Note and the other Credit Documents,
  as amended hereby, are hereby ratified and reaffirmed by Borrower, and Borrower
  specifically acknowledges the validity and enforceability thereof.

3. GENERAL.

           (a)
  This Agreement in no way acts as a release or relinquishment of those liens,
  security interests and rights securing payment of the Loan, including, without
  limitation, the Deed of Trust and the UCC Financing Statement. Such liens, security
  interests and rights are hereby ratified, confirmed, renewed and extended by
  Borrower in all respects.

           (b)
  The modifications contained herein shall not be binding upon Lender until Lender
  shall have received all of the following: 

                     (i)
  An original of this Agreement fully executed by the Borrower; (ii) Payment for
  all accrued and unpaid interest up to the date hereof; 

                    (ii)
  Payment to Lender of a closing fee in an amount equal to $49,000;

                     (iii)
  Delivery to Lender of 150,000 warrants (the “Warrants”) to be issued
  substantially in the form attached hereto as Exhibit “A”, as follows:
  (A) 88,770Warrants shall be issued to Lender; and (B) 61,230 Warrants shall
  be issued to Auramet Trading, LLC (“Auramet”); provided, however,
  that the Borrower’s obligation to deliver any Warrants to Auramet hereunder
  shall be contingent upon receipt by the Borrower of a declaration from Auramet
  substantially in the form attached hereto as Exhibit “B”; and

                     (iv)
  Such other documents as Lender may reasonably require.

           (c)
  Each Warrant shall be exercisable until 5:00 p.m. (Tucson time) on September
  30, 2008, and shall entitle the holder thereof to purchase one share of Borrower’s
  common stock (each a “Warrant Share” and together with the “Warrants”
  the “Securities”) at an exercise price that shall be 

equal to the average of the closing prices of the Borrower’s common stock on the Pink Sheets LLC during the twenty trading days immediately preceding September 30, 2006.

           (d)
  The Lender acknowledges and agrees that: (i) the Warrants and any Warrant Shares
  issuable upon exercise of the Warrants have not been registered under the United
  States Securities Act of 1933, as amended (the “U.S. Securities
  Act”) or the securities laws of any state of the United States and will
  be “restricted securities”, as defined in Rule 144 under the U.S.
  Securities Act; (ii) the offer and sale of the Securities contemplated hereby
  is being made in reliance on an exemption from such registration requirements;
  and (iii) subject to certain exceptions provided under the U.S. Securities Act,
  the Warrants and the Warrant Shares may not be transferred or exercised in the
  United States or by or on behalf of a U.S. person (within the meaning assigned
  in Regulation S under the U.S. Securities Act) unless such Securities, as applicable,
  are registered under the U.S. Securities Act and applicable state securities
  laws, or unless an exemption from such registration requirements is available.

           (e)
  The Lender represents and warrants that

                     (i)
  It is an “accredited investor” as defined in Rule 501 of Regulation
  D of the U.S. Securities Act by virtue of being an organization described in
  Section 501(c)(3) of the United States Internal Revenue Code, a corporation,
  a Massachusetts or similar business trust or partnership, not formed for the
  specific purpose of acquiring the Securities, with total assets in excess of
  US$5,000,000;

                     (ii)
  It has such knowledge and experience in financial and business matters as to
  be capable of evaluating the merits and risks of an investment in the Securities
  and it is able to bear the economic risk of loss of its entire investment;

                     (iii)
  The Borrower has provided to the Lender the opportunity to ask questions and
  receive answers concerning the terms and conditions of the offering, and it
  has had access to such information concerning the Borrower as it has considered
  necessary or appropriate in connection with its investment decision to acquire
  the Securities, including access to the Borrower's public filings with the Securities
  and Exchange Commission, and any answers to the Lender’s questions and
  any request for information have been complied with to the Lender’s satisfaction;
  and

                     (iv)
  It is acquiring the Warrants referred to in clause 3(b)(iii)(A) of this Agreement
  for its own account, for investment purposes only, and not with a view to any
  resale, distribution or other disposition of such Warrants or the underlying
  Warrant Shares in violation of the United States securities laws.

           (f)
  Borrower shall execute and deliver such additional documents and do such other
  acts as Lender may reasonably require to fully implement the intent of this
  Agreement.

           (g)
  Borrower shall pay Lender’s costs and expenses associated with this Agreement,
  including, but not limited to, reasonable attorneys’ fees actually incurred
  by Lender in connection herewith.

 -3-

          (h)
  Notwithstanding anything to the contrary contained herein or in any other instrument
  executed by Borrower or Lender, or in any other action or conduct undertaken
  by Borrower or Lender on or before the date hereof, the agreements, covenants
  and provisions contained herein shall constitute the only evidence of Lender’s
  consent to modify the terms and provisions of the Note or any other Credit Documents.
  Accordingly, no express or implied consent to any further modifications involving
  any of the matters set forth in this Agreement or otherwise shall be inferred
  or implied by Lender’s execution of this Agreement. Further, Lender’s
  execution of this Agreement shall not constitute a waiver (either express or
  implied) of the requirement that any further modification of the Note or any
  other Credit Document shall require the express written approval of Lender;
  no such approval (either express or implied) has been given as of the date hereof.

          (i)
  This Agreement shall be binding upon, and shall inure to the benefit of, the
  parties hereto and their heirs, personal representatives, successors and assigns.

          (j)
  This Agreement shall be governed by and construed according to the laws of the
  State of Arizona.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

-4-

IN WITNESS WHEREOF, the parties have executed this Agreement as
of the date first written above.

	 	BORROWER: 
	 	 
	 	NORD RESOURCES CORPORATION 
	 	 
	 	 
	 	By: /s/ John Perry
    
	 	Name: John Perry 
	 	Title: Chief Financial
      Officer 

	 	LENDER: 
	 	 
	 	NEDBANK LIMITED 
	 	 
	 	 
	 	 
	 	By: /s/ S. Chislett               
      /s/ D. McDonnell 
	 	Name: S. Chislett                
      D. McDonnell 
	 	Its: Head of Credit              
      Project Management 

-5-

Exhibit A
To the Modification Agreement

Form of Warrants

NORD RESOURCES CORPORATION

WARRANT CERTIFICATE

	No. ____________________	____________________Warrants

THE WARRANTS REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, NOR REGISTERED NOR QUALIFIED UNDER ANY
STATE SECURITIES LAWS. SUCH WARRANTS MAY NOT BE OFFERED FOR SALE, SOLD,
DELIVERED AFTER SALE, TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS QUALIFIED AND
REGISTERED UNDER APPLICABLE STATE AND FEDERAL SECURITIES LAWS OR UNLESS, IN THE
OPINION OF COUNSEL SATISFACTORY TO NORD RESOURCES CORPORATION SUCH QUALIFICATION
AND REGISTRATION IS NOT REQUIRED PURSUANT TO AN EXEMPTION THEREFROM. NO TRANSFER
OF ANY SUCH WARRANT SHALL BE VALID OR EFFECTIVE UNTIL SUCH CONDITIONS HAVE BEEN
FULFILLED.

WARRANTS FOR THE 
PURCHASE OF COMMON STOCK

Issue Date: September 30, 2006

THIS CERTIFIES THAT, FOR VALUE RECEIVED, __________________, a
______________limited liability company (the “Holder”), is the owner of
______________Warrants to purchase an equal number of validly-issued, fully-paid
and non-assessable shares of Common Stock (the “Warrant Shares”) of NORD
RESOURCES CORPORATION, a corporation organized and existing under the laws of
the State of Delaware (the “Corporation”). 

The Warrants represented by this Warrant Certificate are fully
vested as of the date hereof. Purchase may be made at any time, and from time to
time, prior to 5:00 p.m. Central Time on the Expiration Date (as hereinafter
defined), upon the presentation and surrender of this Warrant Certificate with a
written notice signed by the Holder stating the number of shares of Common Stock
with respect to which such exercise is being made, at the principal corporate
address of the Corporation, accompanied by payment of the Purchase Price, in
lawful money of the United States of America in cash or by official bank or
certified check made payable to NORD RESOURCES CORPORATION. The Purchase Price
and the number of shares of Common Stock subject to purchase upon the exercise
of the Warrants are subject to modification or adjustment as set forth
herein.

	SECTION 1. 	DEFINITIONS. As used
      herein, the following terms shall have the following meanings, unless the
      context shall otherwise require: 

	 	 	(a) 	 “Adjusted Purchase Price” shall have
        the meaning given to it in Section 5 of this Certificate.

	 	 	 	 
	 	 	(b) 	 “Change of Shares” shall have the meaning
        given to it in Section 5 of this Certificate.

	 	 	 	 
	 	 	(c) 	 “Common Stock” shall mean the common
        stock of the Corporation, which has the right to participate in the distribution
        of earnings and assets of the Corporation without limit as to amount or
        percentage.

	 	 	 	 
	 	 	(d) 	 “Corporate Office” shall mean the office
        of the Corporation at which, at any particular time, its principal business
        shall be administered, which office is currently located at 1 West Wetmore
        Road, Suite 203, Tucson, Arizona, 85705.

	 	 	 	 
	 	 	(e) 	 “Exercise Date” shall mean, as to any
        Warrant, the date on which the Corporation shall have received both (a)
        this Warrant Certificate, together with a written notice of exercise in
        accordance herewith, duly executed by the Holder hereof, or his attorney
        duly authorized in writing, and indicating that the Holder is thereby
        exercising such Warrant(s), and (b) payment by wire transfer, or by official
        bank or certified check made payable to the Corporation, of an amount
        in lawful money of the United States of America equal to the applicable
        Purchase Price for such Warrant(s).

	 	 	 	 
	 	 	(f) 	 “Exercise Price” shall mean, as to
        any Warrant, the average closing price of the Common Stock (as quoted
        on the Pink Sheets, LLC) for the 20 trading days prior to September 30,
        2006, being $_____.

	 	 	 	 
	 	 	(g) 	 “Expiration Date” shall mean 5:00 P.M.
        (Tucson Time) on September 30, 2008.

	 	 	 	 
	 	 		 If the Expiration Date falls on a holiday or a day on
        which banks are authorized to be closed in the State of Arizona, then
        the Expiration Date shall mean 5:00 P.M. (Tucson Time) of the next consecutive
        day which does not fall on a holiday or a day on which banks are authorized
        to be closed in the State of Arizona.

	 	 	 	 
	 	 	(h) 	 “Holder” shall have the meaning given
        to it in the face page hereof.

	 	 	 	 
	 	 	(i) 	 “Purchase Price” shall mean the purchase
        price to be paid upon exercise of each Warrant hereunder in accordance
        with the terms hereof, which price shall be the Exercise Price, subject
        to adjustment from time to time pursuant to the provisions of Section
        5 hereof.

2

	 	 	(j) 	 “Securities Act” shall mean the Securities
        Act of 1933, and any amendments or modifications, or successor legislation,
        thereto adopted, and all regulations, rules or other laws enacted or adopted
        pursuant thereto.

	 	 	 	 
	 	 	(k) 	 “Warrant Certificate” shall mean any
        certificate representing Warrants.

	 	 	 	 
	 	 	(l) 	 “Warrant Registry” means the official
        record maintained by the Corporation in which are recorded, with respect
        to each Warrant Certificate issued by the Corporation: the date of issuance,
        the name and address of the original Holder, the name and address of each
        subsequent transferee of such original Holder, and the number identifying,
        such Warrant Certificate.

	 	 	 	 
	 	 	(m) 	 “Warrant Shares” shall have the meaning
        given to it in the face page hereof.

	 	 	 	 
	 	 	(n) 	 “Warrants” shall mean the Warrants
        represented by this Warrant Certificate.

	SECTION 2. 	EXERCISE OF WARRANTS.
  

	 	 	(a) 	 Each Warrant evidenced hereby may be exercised by the
        Holder at any time on the Exercise Date, upon the terms and subject to
        the conditions set forth herein, by delivery to the Corporation of a completed
        Notice of Exercise in the form attached as Schedule A hereto. A Warrant
        shall be deemed to have been exercised immediately prior to the close
        of business on the Exercise Date and the person entitled to receive shares
        of restricted common stock of the Corporation deliverable upon such exercise
        shall be treated for all purposes as the Holder of a Warrant Share upon
        the exercise of the applicable Warrant as of the close of business on
        the Exercise Date. Promptly following, and in any event within ten (10)
        business days after, the date on which the Corporation first receives
        clearance of all funds received in payment of the Purchase Price pursuant
        to this Warrant Certificate, the Corporation shall cause to be issued
        and delivered to the person or persons entitled to receive the same, a
        certificate or certificates evidencing the issuance to such Holder of
        the applicable number of Warrant Shares (plus a Warrant Certificate for
        any remaining issued but unexercised Warrants of the Holder). Notwithstanding
        the foregoing sentence, in the event that any registration or qualification
        (or filing for exemption from any such requirements) is required prior
        to the issuance of such Warrant Shares

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	 	 		 by the Corporation in accordance with Section 3(b) below,
        then the obligation to deliver any such certificates shall arise only
        upon completion of such requirements and at such time as the Corporation
        may lawfully do so.

	 	 	 	 
	 	 	(b) 	 Upon the exercise of the Warrants represented hereby,
        if the Corporation so requests, the Holder shall certify to the Corporation
        that it is not exercising such Warrants with a view to distribute the
        Warrant Shares in violation of the Securities Act, and shall provide such
        other investor representations as the Corporation may require to confirm
        the ability of the Corporation to rely upon the exemption from registration
        under the Securities Act which applies to the distribution of Warrant
        Shares at the time of such distribution.

	SECTION 3. 	RESERVATION OF SHARES; REGISTRATION
      RIGHTS; TAXES; ETC. 

	 	 	(a) 	 The Corporation covenants that it will at all times
        reserve and keep available out of its authorized Common Stock, solely
        for the purpose of issue upon the valid exercise of Warrants, such number
        of Warrant Shares as shall then be issuable upon the exercise of all Warrants
        then outstanding. The Corporation covenants that all shares of Common
        Stock which shall be issuable upon exercise of the Warrants shall, at
        the time of delivery, be duly and validly issued, fully-paid, non- assessable
        and free from all taxes, liens and charges with respect to the issuance
        thereof (other than those which the Corporation shall promptly pay or
        discharge, or any liens created thereon by the Holder thereof and/or any
        predecessor of such Holder).

	 	 	 	 
	 	 	(b) 	 The Corporation shall not be obligated to deliver any
        Warrant Shares pursuant to the exercise of the Warrants represented hereby
        unless and until a registration statement under the Securities Act and/or
        under any applicable state securities laws and regulations, with respect
        to such securities is effective, or an exemption from such registration
        is available to the Corporation at the time of such exercise. The Corporation
        covenants that if any Warrant Shares reserved for the purpose of exercise
        of Warrants hereunder require registration with, or approval of, any governmental
        authority under any federal or state securities law before such securities
        may be validly issued or delivered upon such exercise, then the Corporation
        will in good faith and as expeditiously as reasonably possible, endeavor
        to secure such registration or approval. However, in the event that this
        Warrant Certificate represents Warrants which have been transferred by
        an initial holder thereof, the Warrants represented hereby may not be
        exercised by, nor shares of Common Stock issued

4

	 		
      to, the Holder hereof in any state in which such exercise
      and issuance would be unlawful.

	 	 	 
	 	(c) 	
      If at any time from the date hereof until the earliest to
      occur of (A) the date as of which all the Warrant Shares may be sold by
      the Holder without regard to the volume limitations set forth in Rule
      144(e) under the Securities Act, and (B) such date as of which all the
      Warrant Shares held by the Holder have been sold, and there is not an
      effective registration statement covering all of the Warrant Shares, the
      Corporation shall determine to prepare and file with the United States
      Securities and Exchange Commission a registration statement relating to an
      offering for its own account or the account of others under the Securities
      Act, of any of its equity securities (other than on Form S-4 or Form S-8
      under the Securities Act, or their then equivalents, relating to equity
      securities to be issued solely in connection with any acquisition of any
      entity or business, or equity securities issuable in connection with stock
      incentive or other employee benefit plans), then the Corporation shall
      send to the Holder written notice of such determination and, if within
      fifteen days after receipt of such notice, the Holder shall so request in
      writing, the Corporation shall include in such registration statement all
      or any part of the Warrant Shares the Holder requests to be registered;
      provided that: (i) the Corporation shall not be required to register any
      Warrant Shares pursuant to this Section that are eligible for resale
      pursuant to Rule 144(k) promulgated under the Securities Act; and (ii) the
      Corporation shall not be required to register any Warrant Shares until
      after the Holder has exercised the Warrant.

	 	 	 
	 	(d) 	
      The Corporation shall pay all documentary, stamp or
      similar taxes and other governmental charges that may be imposed with
      respect to the issuance of the Warrants, or the issuance or delivery of
      any shares of Common Stock upon exercise of the Warrants; provided,
      however, that if the shares of Common Stock are to be delivered in a name
      other than the name of the Holder hereof, then no such delivery shall be
      made unless the person requesting the same has paid to the Corporation the
      amount of transfer taxes or charges incident thereto, if
  any.

	SECTION 4. 	LOSS OR MUTILATION. Upon
      receipt by the Corporation of evidence satisfactory to it of the ownership
      of, and loss, theft, destruction or mutilation of, this Warrant
      Certificate and (in case of loss, theft or destruction) of indemnity
      satisfactory to the Corporation, and (in the case of mutilation) upon
      surrender and cancellation thereof, the Corporation shall execute and
      deliver to the Holder in lieu thereof a new Warrant Certificate of like
      tenor representing an equal aggregate number of Warrants as was indicated
      to be 

5

outstanding on the prior lost or
mutilated Warrant Certificate (provided, however, that to the extent that any
discrepancy may exist between the number of Warrants purported to be outstanding
in respect of any Holder as evidenced by a Warrant Certificate that has been
lost or mutilated and the number attributable to such Holder in the Warrant
Registry, then the Warrant Registry shall control for all purposes, absent a
showing of manifest error. Each Holder requesting a substitute Warrant
Certificate due to loss, theft or destruction shall, prior to receiving such
substitute certificate, provide an affidavit to the Corporation in the form
prescribed thereby and signed by (and notarized on behalf of) such Holder.
Applicants for a substitute Warrant Certificate shall comply with such other
reasonable regulations and pay such other reasonable charges as the Corporation
may prescribe.

	SECTION 5. 	ADJUSTMENT OF PURCHASE PRICE
      AND NUMBER OF WARRANT
      SHARES OR WARRANTS. 

	 	 	(a) 	 Subject to the provisions of this Warrant Certificate
        and applicable law, in the event the Corporation shall, at any time or
        from time to time after the date hereof, issue any shares of Common Stock
        as a stock dividend to the holders of Common Stock, or subdivide or combine
        the outstanding shares of Common Stock into a greater or lesser number
        of shares (any such sale, issuance, subdivision or combination being herein
        called a “Change of Shares”), then, and thereafter upon
        each further Change of Shares, the Purchase Price in effect immediately
        prior to such Change of Shares shall be reduced, but in no event increased,
        to a price (the “Adjusted Purchase Price”) determined
        by multiplying the Purchase Price in effect immediately prior to such
        Change of Shares by a fraction, the numerator of which shall be the sum
        of the number of shares of Common Stock outstanding immediately prior
        to the issuance of such additional shares plus the number of shares of
        Common Stock which the aggregate consideration received by the Corporation
        would purchase at such Purchase Price, and the denominator of which shall
        be the sum of the number of shares of Common Stock outstanding immediately
        after the issuance of such additional shares. Such adjustment to the Purchase
        Price shall be made successively whenever an issuance is made after a
        Change of Shares has occurred.

	 	 	 	 
	 	 		 Upon each adjustment of the Purchase Price pursuant
        to this Section 5(a), the total number of shares of Common Stock purchasable
        upon the exercise of each Warrant shall become (subject to the provisions
        contained in Section 5(b) hereof) such number of shares (calculated to
        the nearest tenth) purchasable at the Purchase Price in effect immediately
        prior to such adjustment multiplied by a fraction, the numerator of which
        shall be the Purchase Price in effect immediately

6

	 			 prior to such adjustment and the denominator of which
        shall be the applicable Adjusted Purchase Price (rounded to the nearest
        whole number of shares). No fractional shares shall be issued or called
        for as a result of any adjustment made hereunder.

	 	 	 	 
	 	 	(b) 	 The Corporation may elect, at its sole discretion, upon
        any adjustment of the Purchase Price hereunder, to adjust the number of
        Warrants outstanding, in lieu of adjustment of the number of Warrant Shares
        purchasable upon the exercise of each Warrant as hereinabove provided,
        so that each Warrant outstanding after such adjustment shall represent
        the right to purchase one Warrant Share. Each Warrant held of record prior
        to such adjustment of the number of Warrants shall become that number
        of Warrants (calculated to the nearest tenth) determined by multiplying
        the number one by a fraction, the numerator of which shall be the Purchase
        Price in effect immediately prior to such adjustment and the denominator
        of which shall be the Adjusted Purchase Price. Upon each adjustment of
        the number of Warrants pursuant to this Section 5(b), the Corporation
        shall, as promptly as practicable, cause to be distributed to each Holder
        of Warrant Certificates, on the date of such adjustment, Warrant Certificates
        evidencing the adjusted number of Warrants to which such Holder shall
        be entitled as a result of such adjustment or, at the sole option of the
        Corporation, cause to be distributed to such Holder in substitution and
        replacement for the Warrant Certificates held by him prior to the date
        of adjustment, and upon surrender thereof, (if required by the Corporation)
        new Warrant Certificates evidencing the aggregate number of Warrants to
        which such Holder shall be entitled after such adjustment.

	 	 	 	 
	 	 	(c) 	 In case of any reclassification, capital reorganization
        or other change of outstanding shares of Common Stock, or in case of any
        consolidation or merger of the Corporation with or into another corporation
        (other than a consolidation or merger in which the Corporation is the
        continuing corporation and which does not result in any reclassification,
        capital reorganization or other change of outstanding shares of Common
        Stock), or in case of any sale or conveyance to another corporation of
        all, or substantially all, of the property of the Corporation (other than
        a sale/leaseback, mortgage or other financing transaction), the Corporation
        shall cause effective provision to be made so that each holder of a Warrant
        then outstanding shall have the right thereafter, by exercising such Warrant,
        to purchase the kind and number of shares of stock or other securities
        or property (including cash) receivable upon such reclassification, capital
        reorganization or other change, consolidation, merger, sale or conveyance
        by a holder of the number of Warrant

7

	 			 Shares that might have been purchased upon exercise
        of such Warrant immediately prior to such reclassification, capital reorganization
        or other change, consolidation, merger, sale or conveyance. Any such provision
        shall include provision for adjustments that shall be as nearly equivalent
        as may be practicable to the adjustments provided for in this Section
        5 upon a Change of Shares. The Corporation shall not effect any such consolidation,
        merger or sale without the written consent of Holders of a majority of
        the Warrants then outstanding, unless prior to or simultaneously with
        the consummation thereof the successor (if other than the Corporation)
        resulting from such consolidation or merger or the corporation purchasing
        assets or other appropriate corporation or entity shall assume, by written
        instrument executed and delivered to the Corporation, the obligation to
        deliver to the holder of each Warrant such substitute warrants, shares
        of stock, securities or assets as, in accordance with the foregoing provisions,
        such Holders may be entitled to purchase, and the other obligations of
        the Corporation set out in this Certificate. The foregoing provisions
        shall similarly apply to successive reclassifications, capital reorganizations
        and other changes of outstanding shares of Common Stock and to successive
        consolidations, mergers, sales or conveyances.

	 	 	 	 
	 	 	(d) 	 Irrespective of any adjustments or changes in the Purchase
        Price or the number of Warrant Shares purchasable upon exercise of the
        Warrants, all Warrant Certificates issued (whether prior to or subsequent
        to any event causing an adjustment thereof) shall continue to express
        the Purchase Price per share, and the number of shares purchasable thereunder
        as originally expressed in the Warrant Certificate initially issued to
        any Holder.

	 	 	 	 
	 	 	(e) 	 After each adjustment of the Purchase Price pursuant
        to this Section 5, the Corporation will promptly prepare a certificate
        signed by the Chairman or Chief Executive Officer, and attested by the
        Secretary or an Assistant Secretary, of the Corporation setting forth:
        (i) the Purchase Price as so adjusted, (ii) the number of shares of Common
        Stock purchasable upon exercise of each Warrant after such adjustment
        or, if the Corporation shall have elected to adjust the number of Warrants,
        the number of Warrants to which the Holder of each Warrant shall then
        be entitled, and (iii) a brief statement of the facts accounting for such
        adjustment. The Corporation will promptly cause a brief summary thereof
        to be sent by ordinary first class mail to each Holder of Warrants at
        his or her last address as it shall appear on the registry books of the
        Corporation. No failure to mail such notice nor any defect therein nor
        in the mailing thereof shall affect the validity thereof. The affidavit
        of the Secretary or an Assistant

8

	 			 Secretary of the Corporation that such notice has been
        mailed shall, in the absence of fraud, be prima facie evidence of the
        facts stated therein.

	 	 	 	 
	 	 	(f) 	 As used in this Section 5, references to “Common
        Stock” shall mean and include all of the Corporation’s Common
        Stock authorized on the date hereof and shall also include any capital
        stock of any class of the Corporation thereafter authorized which shall
        not be limited to a fixed sum or percentage in respect of the rights of
        the holders thereof to participate in dividends and in the distribution
        of assets upon the voluntary liquidation, dissolution or winding up of
        the Corporation; provided, however, that “Warrant Shares” shall
        include only shares of such class designated in the Corporation’s
        Certificate of Incorporation as Common Stock on the date hereof or (i)
        in the case of any reclassification, change, consolidation, merger, sale
        or conveyance of the character referred to in Section 5(c) hereof, the
        stock, securities or property provided for in such section, or (ii) in
        the case of any reclassification or change in the outstanding shares of
        Common Stock issuable upon exercise of the Warrants as a result of a subdivision
        or combination or consisting of a change in par value, or from par value
        to no par value, or from no par value to par value, such shares of Common
        Stock as so reclassified or changed.

	 	 	 	 
	 	 	(g) 	 Any determination as to whether an adjustment in the
        Purchase Price in effect hereunder is required pursuant to this Section
        5, or as to the amount of any such adjustment, if required, shall be binding
        upon all holders of Warrants and the Corporation if made in good faith
        by the Board of Directors of the Corporation. For purposes of this Section
        5(g), the Corporation’s Board of Directors shall be deemed to have
        acted in good faith if it makes any such decision in reliance upon advice
        of its legal counsel and/or another independent professional hired to
        advise the Board on such matters.

	SECTION 6. 	RESTRICTIVE LEGEND.
  

	 	 	(a) 	 Neither the Warrants represented by this Warrant Certificate
        nor the Warrant Shares to be issued upon exercise of the Warrants have
        been registered under the Securities Act or any state securities laws.
        Accordingly, neither the Warrants nor the Warrant Shares may be offered,
        sold or otherwise transferred in the United States or to or for the account
        or benefit of a U.S. Person or a person in the United States, unless registered
        under the U.S. Securities Act and applicable state securities laws, or
        an exemption from registration is available. Except as otherwise provided
        in this Section 6, each certificate evidencing the issuance of Warrant
        Shares (whether issued in the

9

name of the original Holder of this
Certificate or of any subsequent transferee thereof), shall be stamped or
otherwise imprinted with a legend in substantially the following form:

“THE SHARES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, NOR REGISTERED NOR QUALIFIED UNDER ANY STATE SECURITIES LAWS. SUCH
SHARES MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED,
PLEDGED, OR HYPOTHECATED UNLESS QUALIFIED AND REGISTERED UNDER APPLICABLE STATE
AND FEDERAL SECURITIES LAWS OR UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY TO
NORD RESOURCES CORPORATION, SUCH QUALIFICATION AND REGISTRATION IS NOT REQUIRED.
NO TRANSFER OF ANY SUCH SHARE SHALL BE VALID OR EFFECTIVE UNTIL SUCH CONDITIONS
HAVE BEEN FULFILLED.”

	 	 	(b) 	 Except as otherwise provided in this Section 6, each
        Warrant Certificate shall be stamped or otherwise imprinted with a legend
        in substantially the following form:

“THE WARRANTS REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR REGISTERED
NOR QUALIFIED UNDER ANY STATE SECURITIES LAWS. SUCH WARRANTS MAY NOT BE OFFERED
FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED, OR HYPOTHECATED
UNLESS QUALIFIED AND REGISTERED UNDER APPLICABLE STATE AND FEDERAL SECURITIES
LAWS OR UNLESS, IN THE WRITTEN OPINION OF COUNSEL SATISFACTORY TO NORD RESOURCES
CORPORATION, SUCH QUALIFICATION AND REGISTRATION IS NOT REQUIRED. NO TRANSFER OF
ANY SUCH WARRANT SHALL 

10

BE VALID OR EFFECTIVE UNTIL SUCH
CONDITIONS HAVE BEEN FULFILLED.”

	 	 	(c) 	 The legend requirements of Sections 6(a) and 6(b) above
        shall terminate as to any particular Warrant or Warrant Share: (i) when
        and so long as such security shall have been effectively registered under
        the Securities Act and is disposed of pursuant thereto; or (ii) when the
        Company shall have received an opinion of counsel reasonably satisfactory
        to it that such shares may be sold to the public without registration
        thereof under the Securities Act. Whenever the legend requirements imposed
        by this Section 6 shall terminate as to any Warrant Share, as hereinabove
        provided, the Holder hereof shall be entitled to receive from the Corporation,
        at the Corporation’s expense, a new certificate representing such
        Warrant Shares and not bearing the restrictive legend set forth in Section
        6(a).

	SECTION 7. 	RIGHTS OF ACTION. All
      rights of action with respect to the Warrants are vested in the Holders of
      the Warrants, and any Holder of a Warrant, without consent of the holder
      of any other Warrant, may, in such Holder’s own behalf and for his own
      benefit, enforce against the Company his right to exercise his Warrants
      for the purchase of Warrant Shares in the manner provided in this Warrant
      Certificate. 

	SECTION 8. 	AGREEMENT OF WARRANT HOLDERS.
      Every holder of a Warrant, by his or her acceptance thereof, consents
      and agrees with the Corporation and every other holder of a Warrant that:
    

(a) The Warrant Registry shall be
maintained by the Corporation’s Secretary, and shall be the official register of
all Warrants issued to any person in the Offering. The Warrant Registry shall be
dispositive as to the issuance, ownership, transfer and other aspects of each
Warrant issued by the Corporation which are recorded therein and, absent
manifest error, such records shall control for all purposes.

(b) The Warrants are transferable only
on the Warrant Registry by the Holder thereof in person or by his attorney duly
authorized in writing and only if the Warrant Certificates representing such
Warrants are surrendered at the Corporate Office of the Corporation, duly
endorsed or accompanied by a proper instrument of transfer satisfactory to the
Corporation in its sole discretion, together with payment of the amount of any
applicable transfer taxes; and 

(c) The Corporation may deem and treat
the person in whose name the Warrant Certificate is registered on the Warrant
Registry 

11

as the holder and as the absolute,
true and lawful owner of the Warrants represented thereby for all purposes, and
the Corporation shall not be affected by any notice or knowledge to the
contrary, except as otherwise expressly provided in this Certificate.

	SECTION 9. 	MODIFICATION OF WARRANTS.
      Other than with respect to any adjustment made by the Corporation in
      accordance with the provisions of Section 5 hereof, this Certificate may
      only be modified, supplemented or altered by the Corporation, and only
      with the consent in writing of the Holders of Warrants representing
      greater than fifty percent (50%) of the total Warrants then outstanding;
      provided, that no change in the number or nature of the securities
      purchasable upon the exercise of any Warrant, or the acceleration of the
      Exercise Date, shall be made without the consent in writing of the Holder
      of the Warrant Certificate representing such Warrant, other than such
      changes as are specifically prescribed by this Certificate as originally
      executed or are made in compliance with applicable law. 
	  	  
	SECTION 10. 	NOTICES. All notices,
      requests, consents and other communications hereunder shall be in writing
      and shall be deemed to have been made when delivered or mailed first class
      registered or certified mail, postage prepaid as follows: if to the Holder
      of a Warrant Certificate, at the address of such Holder as shown on the
      Warrant Registry maintained by the Corporation; and if to the Corporation,
      at 1 West Wetmore Road, Suite 203, Tucson, Arizona, 85705, or such other
      place as may be designated by the Corporation from time to time in
      accordance with this Section 10. 
	  	  
	SECTION 11. 	GOVERNING LAW. This
      Certificate shall be governed by and construed in accordance with the laws
      of the State of New York, without giving effect to the law of conflicts of
      laws applied thereby. In the event that any dispute shall occur between
      the parties arising out of or resulting from the construction,
      interpretation, enforcement or any other aspect of this Certificate, the
      parties hereby agree to accept the exclusive jurisdiction of the Courts of
      the State of New York. In the event either party shall be forced to bring
      any legal action to protect or defend its rights hereunder, then the
      prevailing party in such proceeding shall be entitled to reimbursement
      from the non-prevailing party of all fees, costs and other expenses
      (including, without limitation, the reasonable expenses of its attorneys)
      in bringing or defending against such action. 
	  	  
	SECTION 12. 	ENTIRE UNDERSTANDING. This
      Certificate contains the entire understanding among the Corporation and
      the Holder relating to the subject matter covered herein, and merges all
      prior discussions, negotiations and agreements, if any between them. Neither
      of the parties to this agreement shall be bound by any representations,
      warranties, covenants, or other understandings relating to such subject
      matter, other than as expressly provided for or referred to herein. 

12

IN WITNESS WHEREOF, the Corporation has caused this Warrant
Certificate to be duly executed, manually or in facsimile, by two of its
officers thereunto duly authorized, as of the date set forth below.

NORD RESOURCES CORPORATION

 

	By: 	____________________________________
	 	 
	 	 
	Date: 	September 30, 2006 

13 

SCHEDULE A

NOTICE OF EXERCISE

TO: Nord Resources Corporation

(1) The undersigned hereby elects to purchase
______________________________ Warrant Shares of the Corporation pursuant to the
terms of the Warrant Certificate, and tenders herewith payment of the exercise
price in full, together with all applicable transfer taxes, if any.

(2) Please issue a Warrant Certificate registered in the name
and address of the undersigned as specified below:

__________________________________________________________

__________________________________________________________

__________________________________________________________

(3) The Warrant Shares shall be delivered to the following:

__________________________________________________________

__________________________________________________________

__________________________________________________________

	(4) 	
      The undersigned hereby represents and warrants to the
      Corporation that the undersigned:

	 	 	 
		(a) 	
      is an “accredited investor” as defined in Rule 501 under
      the Securities Act of 1933, as amended (the “Securities Act”);

	 	 	 
		(b) 	
      is purchasing the Warrant Shares solely for its own
      account for investment and not with a view to or for sale or distribution
      of the Warrant Shares or any portion thereof and without any present
      intention of selling, offering to sell or otherwise disposing of or
      distributing the Warrant Shares or any portion thereof in any transaction
      other than a transaction complying with the registration requirements of
      the Securities Act; and

	 	 	 
		(c) 	
      is not exercising the Warrants as a result of any form of
      “general solicitation” or “general advertising” as used in Rule 502(c) of
      Regulation D.

	 	 	 
	(5) 	
      The undersigned hereby acknowledges that:

	 	 	 
		(a) 	
      the Warrant Shares issuable upon exercise of the Warrants
      are “restricted securities” as defined in Rule 144 of the Securities
      Act;

	 	 	 
		(b) 	
      the Corporation shall refuse to register any transfer of
      the Warrant Shares not made in accordance with the provisions of
      Regulation S, pursuant to registration under the Securities Act, or
      pursuant to an available exemption from registration under the Securities
      Act; and

	 	(c) 	
      the Corporation may require the Holder to provide such
      information as may be reasonably necessary to permit the Corporation to
      verify the accuracy of the representations and warranties of the
      information contained herein, and may require the Holder to complete a
      Certification of U.S. Purchaser in form and substance reasonably
      satisfactory to the Corporation and its legal
counsel.

	By: 	_______________________________________
	 	[HOLDER] 

Exhibit B
To the Modification Agreement

Form of Declaration by Auramet Trading, LLC

D E C L A R A T I O N

	To: 	Nord Resources Corporation 
		1 West Wetmore Road 
	  	Suite 203 
	  	Tucson, Arizona 85705 

REFERENCE IS MADE to that certain Modification Agreement
between Nord Resources Corporation, as Borrower (the “Borrower”), and Nedbank
Limited, as lender (the “Lender”), dated for reference September 30, 2006 (the
“Modification Agreement”), pursuant to which the Borrower has agreed to deliver
to Lender 150,000 warrants (the “Warrants”) to be issued substantially in the
form attached hereto as Exhibit “A” to the Modification Agreement, as follows:
(A) 88,770 Warrants shall be issued to Lender; and (B) 61,230 Warrants shall be
issued to Auramet Trading, LLC (“Auramet”).

WHEREAS Auramet must execute and deliver this
Declaration to the Borrower as a precondition to receiving its Warrants under
the Modification Agreement, in order to permit the Borrower to satisfy itself
that it shall have complied with applicable United States securities laws in
connection with the issuance of the Warrants to Auramet;

NOW, THEREFORE:

	1. 	
      Auramet hereby acknowledges and agrees that:

	 	 	 
		(a) 	
      Each Warrant shall be exercisable until 5:00 p.m. (Tucson
      time) on September 30, 2008, and shall entitle the holder thereof to
      purchase one share of Borrower’s common stock (each a “Warrant Share” and
      together with the “Warrants” the “Securities”) at an exercise price that
      shall be equal to the average of the closing prices of the Borrower’s
      common stock on the Pink Sheets LLC during the twenty trading days
      immediately precedingSeptember 30, 2006;

	 	 	 
		(b) 	
      the Warrants and any Warrant Shares issuable upon
      exercise of the Warrants have not been registered under the United States
      Securities Act of 1933, as amended (the “U.S. Securities Act”) or
      the securities laws of any state of the United States and will be
      “restricted securities”, as defined in Rule 144 under the U.S. Securities
      Act;

	 	 	 
		(c) 	
      the offer and sale of the Securities contemplated by the
      Modification Agreement is being made in reliance on an exemption from such
      registration requirements; and

	 	 	 
		(d) 	
      subject to certain exceptions provided under the U.S.
      Securities Act, the Warrants and the Warrant Shares may not be transferred
      or exercised in the United States or by or on behalf of a U.S. person
      (within the meaning assigned in Regulation S under the U.S. Securities
      Act) unless such Securities, as applicable, are registered under the U.S.
      Securities Act and

		
      applicable state securities laws, or unless an exemption
      from such registration requirements is available.

	 	 	 
	2. 	
      Auramet represents and warrants that:

	 	 	 
		(a) 	
      it is an “accredited investor” as defined in Rule 501 of
      Regulation D of the U.S. Securities Act by virtue of being an organization
      described in Section 501(c)(3) of the United States Internal Revenue Code,
      a corporation, a Massachusetts or similar business trust or partnership,
      not formed for the specific purpose of acquiring the Securities, with
      total assets in excess of US$5,000,000;

	 	 	 
		(b) 	
      it has such knowledge and experience in financial and
      business matters as to be capable of evaluating the merits and risks of an
      investment in the Securities and it is able to bear the economic risk of
      loss of its entire investment;

	 	 	 
		(c) 	
      the Borrower has provided to Auramet the opportunity to
      ask questions and receive answers concerning the terms and conditions of
      the offering, and it has had access to such information concerning the
      Borrower as it has considered necessary or appropriate in connection with
      its investment decision to acquire the Securities, including access to the
      Borrower's public filings with the Securities and Exchange Commission, and
      any answers to Auramet’s questions and any request for information have
      been complied with to Auramet’s satisfaction; and

	 	 	 
		(d) 	
      it will be acquiring its Warrants for its own account,
      for investment purposes only, and not with a view to any resale,
      distribution or other disposition of such Warrants or the underlying
      Warrant Shares in violation of the United States securities
  laws.

DATED this _____day of September 30, 2006.

	 	AURAMET TRADING, LLC 
	 	 	  
	 	 	  
	 	 	  
	 	By: 	/s/ Justin
      Sullivan 
	 	 	Authorized Signatory 

2Filed by Automated Filing Services Inc. (604) 609-0244 - Sound Revolution Inc. - Exhibit 10.1

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR THE
PORTIONS MARKED “[***]” AND HAS BEEN FILED SEPARATELY WITH THE
COMMISSION

Wholesale Digital Download and Master Tone
  Agreement

This Agreement is entered into as of September 25, 2006 by and
between CD Baby, Inc. ("CD Baby") and Sound Revolution Inc. ("COMPANY") on the
following terms and conditions: 

	1. 	
      Right to Sell. During the term described below, CD
      Baby authorizes COMPANY (i) to sell digital copies of certain “Master
      Recordings” (as defined below) as permanent digital music downloads; and
      (ii) to convert certain Master Recordings into “Master Tones” and to
      distribute such Master Tones from servers solely controlled by COMPANY, to
      mobile, cellular, and wireless communications devices. “Master Tone” means
      (i) a digital copy of a thirty (30) second portion of a Master Recording
      sounded to a calling party; or (ii) a digital audio file embodying a
      thirty (30) second portion of a Master Recording that is played back to
      the user of a mobile, cellular, or wireless communications device when
      such device is receiving an incoming call. All such authorization shall be
      non-exclusive and shall extend to sales to customers who are located
      throughout the United States and Canada. COMPANY agrees that CD Baby shall
      have the right to approve the excerpt of each particular Master Recording
      that may be used as a Master Tone. All other rights, obligations and
      provisions hereof shall apply with respect to such Master Tones. COMPANY
      shall only host the Master Recordings and Master Tones on servers located
      in Vancouver, British Columbia, and may only sell the downloads and Master
      Tones directly to consumers and shall not sell or otherwise distribute the
      downloads and Master Tones through or to other vendors, including by way
      of syndication, linking, bundling arrangements, co-branded sites and the
      like without the prior written consent of CD Baby. COMPANY shall also have
      the right to stream promotional audio clips of not more than thirty (30)
      seconds duration, and to use approved album artwork and artists' names,
      and approved likenesses and biographical material concerning artists that
      are provided by CD Baby in connection with such downloads and Master
      Tones, and the promotion thereof (subject to any artist-related or other
      restrictions or limitations as to which CD Baby may give COMPANY notice
      from time to time). Each artist or other third party who shall provide CD
      Baby with rights to one or more Master Recordings is sometimes referred to
      herein as a "Rightsholder".

	 	 
	2. 	
      Term. The initial term of this Agreement shall
      start as of date hereof and shall continue unless sooner terminated as
      provided herein for one (1) year. Thereafter, the term shall extend from
      year to year unless one party gives the other party notice of termination
      no later than thirty (30) days' prior to the

		
      start of the next year. After the end of the term,
      COMPANY shall make no further sales of downloads and Master Tones derived
      from the Master Recordings and shall either return any source materials
      provided by CD Baby or destroy same at CD Baby’s election. The provisions
      of paragraphs 6, 7 and 10 hereof shall survive any termination of the
      term.

	 	 	 
	3. 	
      Master Recordings .

	 	 	 
		a. 	
      “Master Recordings” shall include only those sound
      recordings that CD Baby chooses to make available to COMPANY for use in
      the creation of Master Tones and/or for sale as digital music downloads
      during the term. CD Baby reserves the right without limitation, to limit
      certain Master Recordings for use only as downloads and not as Master
      Tones. Notwithstanding the foregoing or anything to the contrary contained
      herein, Master Recordings shall only include those sound recordings as to
      which CD Baby has received the applicable distribution rights from the
      applicable Rightsholder. All such Master Recordings shall be provided by
      CD Baby to COMPANY in a digital data format including applicable metadata,
      and CD Baby shall have the right to update such digital data from time to
      time during the term to change or add metadata or to add or delete Master
      Recordings from availability hereunder as determined by CD Baby. Company
      agrees that it shall promptly update any revised or new metadata provided
      by CD Baby and only utilize such revised or new metadata from after five
      (5) business days of its receipt of same. Without limiting the generality
      of the foregoing, Company agrees that CD Baby shall have the absolute
      unfettered right by notice to COMPANY to cause the removal by Company of
      any individual Master Recording and/or entire album (and any Master Tones
      derived from same) from COMPANY’S service, including without limitation in
      the event that CD Baby’s rights to a particular Master Recording or album
      shall lapse, or be called into question, or if CD Baby is requested by the
      applicable Rightsholder for any reason to remove any such Master
      Recording(s) and/or Master Tone(s) from COMPANY’S service. If CD Baby
      notifies COMPANY that any such Master Recording(s) and/or Master Tone(s)
      are to be removed from COMPANY’s service then COMPANY shall so remove the
      applicable Master Recording(s) and/or Master Tone(s) from availability on
      its service as promptly as possible but in no event later than two (2)
      days following the applicable notice from CD Baby.

	 	 	 
		b. 	
      The Master Recordings licensed hereunder shall be made
      available to COMPANY at generally the same time that CD Baby makes the
      same available to other similarly situated companies, subject to special
      promotions, and subject to any rights and restrictions from the
      Rightsholder.

2

		c. 	
      In accordance with the provisions of Schedules A and B
      attached hereto, CD Baby shall furnish the Master Recordings to COMPANY in
      the form of digital files together with metadata and cover art if
      available. COMPANY will be responsible for and shall pay all costs of
      delivery and insurance in connection therewith, and shall promptly return
      to CD Baby at COMPANY’s sole expense any materials that shall be provided
      by CD Baby to COMPANY that are not purchased by COMPANY in accordance with
      the provisions of the attached Schedules. The delivery method and amounts
      of insurance shall be agreed by the parties prior to the shipment to
      COMPANY of the applicable materials.

	 	 	 
	4. 	
      Security. COMPANY shall utilize appropriate
      safeguards to ensure that all downloads or other transmissions of Master
      Tones and Master Recordings shall be authorized and that no activities
      that might infringe the copyrights in and to any Master Recordings,
      including without limitation in and to the musical compositions embodied
      therein, shall occur. In the event of a security breach in any of
      COMPANY's systems, COMPANY shall promptly alert CD Baby of such breach and
      shall use its best efforts to cure same as soon as practicable and shall
      be responsible for, and hereby fully indemnifies CD Baby against, any
      claim, demand or action that may be the result thereof.

	 	 	 
	5. 	
      Wholesale Price. With respect to downloads,
      COMPANY shall pay CD Baby the greater of: (a) [***] percent ([***]%) of
      the applicable retail price to COMPANY’s customers with respect to each
      download or transmission of a Master Recording; or (b) the applicable
      wholesale price set by CD Baby from time to time with respect to each
      download or transmission of a Master Recording. With respect to Master
      Tones, COMPANY shall pay CD Baby the greater of: (a) [***] percent
      ([***]%) of the applicable retail price to COMPANY’S customers with
      respect to each download or transmission of a Master Tone; or (b) the
      applicable wholesale price set by CD Baby from time to time with respect
      to each download or transmission of a Master Tone. The initial wholesale
      prices to be charged by CD Baby shall be as specified
  below:

Applicable Wholesale Price for
Download and Master Tone Sales to Customers in the United States:

	 	Permanent Download Tracks: 	$[***] per track 
	 	Permanent Download Albums (single disc): 	$[***] per album 

--------------------------------
[***] Certain information
on this page has been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted
portions.

3

		Permanent Download Albums (multiple disc): 	$[***] multiplied by number of discs
    

	 	  	  
		Master Tones 	$[***] USD per Master Tone 

Applicable Wholesale Price for Download and Master Tone Sales
  to Customers in Canada:

	 	Permanent Download Tracks: 	$[***] per track 
	 	Permanent Download Albums (single disc): 	$[***] per album 
		Permanent Download Albums (multiple disc): 	$[***] multiplied by number of discs
		Master Tones 	$[***] per Master Tone 

		
      Such wholesale prices shall in no event be reduced by any
      discounts, specials, promotions and the like as may be implemented by
      COMPANY, nor shall the failure of COMPANY to collect payment in any
      instance excuse the obligation of COMPANY to make payment to CD Baby for
      each and every completed download or transmission of a Master Tone or
      Master Recording hereunder. CD Baby shall give COMPANY no less than
      fifteen (15) days’ prior notice of any wholesale price changes. COMPANY
      shall be responsible for and shall pay any and all taxes as shall result
      from the sale of downloads and Master Tones, and the operation of
      COMPANY’S systems. The parties hereto agree that this Agreement is
      executed on a so-called “Most Favored Nations” basis. In the event during
      the term COMPANY calculates or pays royalties to any sound recording owner
      or licensor in any amounts greater or on terms more favorable than those
      provided herein, then with the effective date of any such calculation or
      payment, CD Baby shall be entitled to and shall receive all benefits of
      such more favorable treatment. Notice of any such more favorable treatment
      and the terms thereof shall be communicated to CD Baby in writing no later
      than two (2) days after such treatment is offered or granted to any other
      party.

	 	 
	6. 	
      Accounting. COMPANY shall render to CD Baby an
      accounting on a monthly basis, fifteen (15) days after month end,
      accompanied by payment of the amounts due to CD Baby hereunder. Such
      accounting shall include each download and Master Tone distributed
      hereunder by

--------------------------------
[***]Certain information on
this page has been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted
portions.

4

		
      track title, ISRC code, and UPC code of corresponding
      album. COMPANY shall account to CD Baby utilizing the unique identifiers
      supplied to COMPANY by CD Baby when CD Baby provides the applicable
      metadata with respect to the Master Recording and/or album to COMPANY.
      COMPANY shall maintain complete and accurate books and records relating to
      the subject matter hereof. Upon reasonable notice, CD Baby shall have the
      right to audit or authorize a third party to audit COMPANY's such books
      and records to verify the completeness and accuracy thereof and of such
      statements, at the place in the United States where COMPANY maintains such
      records (which is currently and shall remain throughout the term in
      Seattle, Washington) or, at CD Baby’s election, at the COMPANY's head
      office at 1511 West 40th , Vancouver, British Columbia, Canada,
      V6M 1V7 where an additional set of the Company's books and records are
      kept. Any such examination shall take place during normal business hours
      and on at least thirty (30) days' prior notice and in connection therewith
      CD Baby and/or its representative shall be entitled to make and take
      copies and extracts from such books and records. If any of CD Baby’s such
      audits shall reveal a discrepancy of five percent (5%) or greater in the
      amounts shown to have been payable to CD Baby, COMPANY shall reimburse CD
      Baby their reasonable costs and expense of such audit. In addition, in
      order to provide CD Baby with accurate real time information about monies
      payable to CD Baby hereunder, COMPANY shall permit CD Baby on-line access
      to COMPANY's internal sales reporting system so as to allow CD Baby to
      monitor COMPANY’s distribution of downloads and Master Tones, and
      estimated revenues generated from such distribution hereunder.

	 	 
	7. 	
      Third Party Obligations .

	 	 
		
      a. 
	 In connection with the sale of downloads hereunder, CD Baby
      shall require that all Rightsholders shall undertake and agree to be
      responsible for the payment of all record royalties due to artists and
      other persons who performed in the making of the Master Recordings, and
      for all mechanical royalties payable to music publishers with respect to
      same. Notwithstanding the foregoing sentence, COMPANY acknowledges and
      agrees that COMPANY may, in certain territories, be subject to the
      obligation to pay mechanical royalties as a distributor of the Master
      Recordings in such territories notwithstanding any provision hereof, and
      agrees that in such event COMPANY shall accept such obligation and shall
      pay any such royalties due, provided that in respect of such payments,
      COMPANY shall be entitled to a credit against monies otherwise payable to
      CD Baby hereunder equal to the lesser of (i) the royalty actually paid by
      COMPANY pursuant to such obligation, if any; and (ii) the then current
      United States statutory

5

mechanical royalty rate for a single
musical composition of three (3) minutes of playing time. In such events,
COMPANY shall provide CD Baby with a detailed accounting showing such payments
made by COMPANY.

	 	b. 	In connection with the sale of Master Tones
      hereunder, CD Baby shall require that all Rightsholders shall undertake
      and agree to be responsible for the payment of all record royalties due to
      artists and other persons who performed in the making of the Master
      Recordings (or digital files embodying the content thereof) not deemed by
      CD Baby to be controlled compositions, and COMPANY agrees that it will be
      responsible for paying all mechanical royalties payable to music
      publishers with respect to same 
	 	  	 
	 	c. 	COMPANY shall be solely responsible for any and
      all other music publishing licenses required in connection with its
      service and the use of materials supplied by CD Baby, including without
      limitation any and all of public performance and synchronization licenses
      as may be required. 

	8. 	
      Content and Promotional Opportunities . To the
      extent that COMPANY, or any of COMPANY’s approved syndicated, co-branded,
      or “white label” partners which make available CD Baby content, has the
      technical ability to implement a searchable database of Master Tones
      through software applications or portable device interfaces, COMPANY or
      such approved distributor shall make CD Baby’s Master Tones available in
      such searchable database. To the extent that COMPANY offers promotional
      opportunities to other similarly situated independent record labels
      furnishing recordings for use in COMPANY’s service(s), it will generally
      afford CD Baby similar opportunities to participate, subject to special
      promotions, it being understood that CD Baby shall be afforded the
      opportunity to participate in such special promotions from time to
      time.

	 	 
	9. 	
      CD Baby Right of Termination . In the event that
      COMPANY shall materially breach this Agreement, including by any failure
      to account, failure to utilize and/or update accurate information with
      respect to any download or Master Tone that COMPANY elects to distribute,
      failure to comply with the security obligations hereunder, or otherwise,
      then, in any such event, CD Baby shall have the right upon notice in
      writing to COMPANY to terminate the term hereof with immediate effect. No
      election by CD Baby to waive its right of termination in any particular
      instance, shall constitute a waiver of CD Baby's rights in any other
      instance.

6

	10 	
      Miscellaneous.

	 	 	 
		a. 	
      All notices hereunder shall be given by fax or certified
      mail, return receipt requested, to the respective addresses
  below

	 	To CD Baby: 	CD Baby, Inc. 
	 	  	5925 NE 80th Avenue 
	 	  	Portland, OR 97218-2891 
	  	 	Fax: 503-252-3194  

	 	To COMPANY: 	Charity Tunes Inc. 
	 	  	1511 West 40th Avenue 
	 	  	Vancouver, BC V6M 1V7 
	 	  	Attention: Penny Green 
	 	  	Fax: (604) 408 5177 

	 	b. 	
      CD Baby warrants and represents that it has the right and
      authority to enter into this Agreement and to grant to COMPANY all rights
      specified; all of the Master Recordings, artwork, metadata, videos and any
      other materials furnished by CD Baby to COMPANY or relating to the Master
      Recordings are controlled by CD Baby and shall not infringe on the
      copyrights or other rights of any person or entity; and that COMPANY shall
      have the right to exploit same in all manner hereunder free from adverse
      claim, subject to the provisions of Paragraph 10(d) hereof.

	 	 	 
	 	c. 	
      COMPANY warrants and represents that it has the right and
      authority to enter into and fully perform this Agreement and that the
      conduct of its service complies with all applicable laws and that, without
      limiting the foregoing, it shall timely account for and pay all sums
      becoming due to CD Baby as provided hereunder, without offset of any kind
      or nature.

	 	 	 
	 	d. 	
      Each party shall defend and indemnify the other party
      (including its directors, members, officers, employees and other
      representatives) against any third party claims or expenses and losses
      resulting from breach of the respective warranty, including reasonable
      attorneys' fees and litigation expenses. The indemnifying party shall
      defend the other party at the indemnifying party's expense with counsel
      approved by such other party (which approval shall not be unreasonably
      withheld). Notwithstanding this paragraph or anything to the contrary
      contained herein, the total amount of CD Baby’s indemnification of COMPANY
      or any other obligation to COMPANY with respect to the subject matter
      hereof, shall not exceed in the aggregate the net sum retained by CD Baby
      (after

7

	 		
      relevant distributions to Rightsholders) from monies
      received by CD Baby from COMPANY hereunder.

	 	 	 
	 	e. 	
      Unless required by law, COMPANY shall not disclose or
      publish the applicable wholesale price of the Master Tones or the Master
      Recordings (the "Wholesale Price") or the percentage of the retail price
      that COMPANY is obligated to pay CD Baby pursuant to this Agreement. CD
      Baby acknowledges that COMPANY is obligated to file a copy of this
      Agreement as an exhibit to its quarterly report on Form 10-QSB which will
      be due to be filed on October 15, 2006. Within 2 business days of signing
      of this Agreement, COMPANY agrees to make a request to the U.S. Securities
      and Exchange Commission that the Wholesale price may be treated
      confidentially and blacked out from any filings of the Agreement with
      COMPANY's filed quarterly or other reports. If, within one month of
      signing this Agreement, the SEC has not granted such confidentiality to
      COMPANY, CD Baby shall have the option of returning any and all payments
      it has received from the Company pursuant to this Agreement, and canceling
      the Agreement.

	 	 	 
	 	f. 	
      This Agreement supersedes any prior discussions or
      agreements regarding the subject matter hereof. No change to this
      Agreement shall be binding unless in writing signed by both parties. This
      Agreement shall be governed by California law and the parties hereby grant
      to the U.S. District Court for the Central District of California, or the
      Superior Court of California, Los Angeles County, exclusive jurisdiction
      to hear any disputes arising under or in connection with this
      Agreement.

     The parties hereto hereby execute
  this Agreement as of the date first written above.

	 	SOUND REVOLUTION INC.
	 	 	 
	Date:	By:	/s/ Penny Green 
	 	 	
 
	 	 	Penny Green 
	 	 	President & CEO 

 

	 	CD Baby, Inc.
	 	 	 
	Date:	By:	/s/ Spencer Trowbridge 
	 	 	
 
	 	 	Spencer Trowbridge 
	 	 	Director of Licensing 

8

Schedule A: Digital Media Delivery Specifications

	I. 	
      Full Song Specification:

		
      TBD By COMPANY and approved by CD Baby

	II. 	
      Sample Song Specifications

		
      TBD By COMPANY and approved by CD Baby

	III. 	
      Cover Art Formats:

		
      TBD By COMPANY and approved by CD Baby

	IV. 	
      File naming:

		
      TBD By COMPANY and approved by CD Baby

	V. 	
      Directory Structure:

		
      TBD By COMPANY and approved by CD Baby

	VI. 	
      Meta Data Format: Standard CD Baby
  XML

Here is an example XML document:
<?xml
version="1.0"
encoding="UTF-8"?>
<album>
<barcode>634479000000</barcode>
<sku>our_tracking_sku</sku>
<distributor>CD
Baby</distributor>
<artist_name>Some
Artist</artist_name>
<album_title>An
Album</album_title>
<record_label>SubLabel</record_label>
<album_length>74:59</album_length>
<release_date>2004-01-10</release_date>
<digital_publish_date>2003-12-04</digital_publish_date>
<c_line>(C)
200? Copyholder Inc.</c_line>
<p_line>(P) 200? Publisher
Inc.</p_line>
<genres>
<genre>PRIMARY
GENRE:
subgenre</genre>
</genres>
<album_description_short>A
short
description.</album_description_short>
<album_description_long>A
longer description, almost always written by
the artist themselves.
Likely to contain URLs, copy-pasted press reviews, lots of
exclamation
points,
etc.</album_description_long>
<buy_cd_url>http://cdbaby.com/cd/somealbum</buy_cd_url>
<buy_cd_price>$.$$</buy_cd_price>
<similar_artists>
similar artists
</similar_artists>
<related_albums>
<related_album>
</related_albums>
<tracks>
<track>
<isrc>usmc454545098</isrc>
<base_filename>our_tracking_sku-01</base_filename>
<track_number>1</track_number>
<track_title>It's
a Song</track_title>
<track_artist>Some
Artist</track_artist>
<track_length>10:42</track_length>

9

<track_composer>Composer Guy,
Composer
Gal</track_composer>
<track_publisher>Publisher
Guy,
Publisher
Gal</track_publisher>
</track>
[
..... etc.
.....]
</tracks>
<graphic>
<filename>graphicfile.jpg</filename>
<format>jpeg</format>
<dimensions>800x800</dimensions>
</graphic>
</album>

10

Schedule B

	1. 	
      Delivery of Digital Encoded Content (Master
      Recordings) . Digital Encoded Content includes 1 XML File per UPC,
      accompanying digital audio files per UPC and 2 digital image files per UPC
      as detailed in the specifications in Section A.

	 	 	 
	2. 	
      Encoded Content.

	 	 	 
		2.1. 	
      CD Baby agrees to provide the licensed Master Recordings
      at the rates set forth below. All rates are subject to change by CD Baby
      upon notice in writing.

	 	 	 
		2.2. 	
      Initial Encoding/Delivery: Est. 100,000 Track Initial
      Delivery as provided at $.10 per file.

	 	 	 
		2.3. 	
      Monthly New Release Delivery Cost: $.10 per file, to be
      billed by CD Baby and paid by COMPANY on a monthly basis when
      applicable.

	 	 	 
		2.4. 	
      Custom Format, Bitrate, XML, Image Specifications to be
      agreed on a case-by-case basis.

	 	 	 
	3. 	
      Methods of Delivery .

	 	 	 
		3.1. 	
      CD Baby agrees to provide 250GB "Industry Standard"
      Firewire drives and FTP deliveries at the rates detailed below.

	 	 	 
			
      3.1.1. 
	 Hard Drives procured by CD Baby on COMPANY's
      behalf at the following costs:

	 	 	3.1.1.1. 	 250 GB Firewire $350

	 	 	 	 
	 	 	3.1.1.2. 	 500 GB Firewire $600

	 	 	 	 
	 	 	3.1.1.3. 	 1000 GB Firewire $1,000

	 	 	 	 
	 	 3.1.2.	Hard Drives procured by Customer and provided to
      CD Baby: $50.00 per Hard Drive loading fee.

	 	3.2. 	
      Standard FTP Deliveries.

	 	 	 
	 	3.3. 	
      Custom FTP requests agreed upon by CD Baby and
      Customer.

	4. 	
      Shipment. CD Baby agrees to provide the Digital
      Media Encoded Content via Hard Drive.

	 	 	 
		4.1. 	
      Domestic: FedEx Express 2 day courier – To be paid by
      COMPANY.

	 	 	 
		4.2. 	
      International: FedEx Express 2 day courier – To be paid
      by COMPANY.

11

	5. 	
      Delivery Schedule of Encoded Content .

	 	 	 
		5.1. 	
      Initial Delivery of digital Masters Recordings: To be
      determined by COMPANY and CD Baby.

	 	 	 
		5.2. 	
      New Release Schedule of digital Master Recordings: To be
      determined by COMPANY and CD Baby.

	 	 	 
	6. 	
      Deposit and Payment for Encoded Content.

	 	 	 
		6.1. 	
      COMPANY agrees to pay CD Baby a fifty percent (50%)
      deposit for the initial bulk delivery. This deposit is required no later
      than fifteen (15) business days after the execution of the contract.
      COMPANY will not receive a delivery until the deposit is received. This
      deposit will be applied to initial invoiced amount.

	 	 	 
		6.2. 	
      Payment for initial content delivery is required in full
      no later than thirty (30) calendar days following rendition of invoice.
      Invoices will be issued via email upon delivery of digital files and/or
      and the shipment by CD Baby of physical media (Hard Drives).

	 	 	 
		6.3. 	
      Payment of ongoing monthly charges is required no later
      than thirty (30) calendar days following rendition of invoice. Invoices
      will be issued via email upon the delivery of monthly new release updates
      either via ftp or otherwise agreed upon delivery method pursuant to
      paragraph 3 of this Schedule B.

	 	 	 
		6.4. 	
      All payments are required to be made in US Dollars unless
      otherwise agreed upon by CD Baby and COMPANY.

12

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