Document:

Exhibit 10.1

 

	
CONTRATO DE CESIÓN DE DERECHOS   QUE CELEBRAN POR UNA PARTE MINERA WILLIAM, S.A. DE C.V. Y POR LA OTRA GOLDEN   TAG DE MEXICO, S.A. DE C.V., AL TENOR DE LAS SIGUIENTES:
    	
 
    	
ASSIGNMENT OF RIGHTS AGREEMENT   ENTERED INTO BY AND BETWEEN MINERA WILLIAM, S.A. DE C.V. AND GOLDEN TAG DE   MEXICO, S.A. DE C.V., UNDER THE FOLLOWING:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
DECLARACIONES
    	
 
    	
RECITALS
    
	
 
    	
 
    	
 
    
	
I. Declara MINERA WILLIAM, S.A. de C.V., a través de su representante   (en lo sucesivo “Minera William”):
    	
 
    	
I. MINERA WILLIAM, S.A. de C.V. (hereinafter referred to as “Minera   William”), through its representative declares:
    
	
 
    	
 
    	
 
    
	
I.A.      Que es una sociedad minera mexicana,   incorporada bajo la denominación “Minera William, S.A. de C.V.”, cuya   constitución consta en la escritura pública número 36,539, otorgada el 14 de   Marzo de 1996 ante el Lic. Adrián R. Iturbide Galindo, Notario Público 139   del Distrito Federal, e inscrita en el Registro Público de la Propiedad y del   Comercio de Torreón, Coahuila en el Folio Mercantil número 75811*1, el 24 de   octubre del 2006, y en el Registro Público de Minería bajo el número 40,   fojas 53 frente a 54, volumen XXXIV del Libro de Sociedades Mineras y   Registro Federal de contribuyentes: MWI960314368.
    	
 
    	
I.A.      That it is a Mexican mining company,   which was incorporated under the name of “Minera William, S.A. de C.V.” in   terms of the public deed number 36,539 granted on March 14, 1996, before   Adrian R. Iturbide Galindo, Notary Public No. 139 of the Federal   District, and registered at the Public Registry of Property and Commerce of   Torreon, Coahuila, under Mercantile Folio number 75811*1, on October 24,   2006, and at the Public Registry of Mining under number 40, page 53   front to 54, volume XXXIV of the Book of Mining Corporations, and Federal   Taxpayer’s Registry: MWI960314368.
    
	
 
    	
 
    	
 
    
	
I.B.      Que su representante tiene facultades   suficientes para actuar en nombre y representación de Minera William,   obligándola en los términos de este contrato, facultades que a la fecha de la   firma de este documento no le han sido revocadas o modificadas en forma   alguna.
    	
 
    	
I.B.      That its representative has the   necessary authority to act in name and representation of Minera William,   obligating it in the terms of this agreement, authority that as of the date   of signature of this document has not been revoked or modified in any way.
    
	
 
    	
 
    	
 
    
	
II. Declara GOLDEN TAG DE   MEXICO, S.A. DE C.V. a través de sus representantes (en lo sucesivo “GTM”):
    	
 
    	
II. GOLDEN TAG DE MEXICO, S.A.   DE C.V. (hereinafter referred to as “GTM”), through its representatives   declares:
    

 

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II.A.     Que es una sociedad minera mexicana, cuya   constitución consta en la escritura pública número 93,990, de fecha 19 de   septiembre de 2008, otorgada ante la fe del Lic. José Visoso del Valle,   Notario Público No. 92, del Distrito Federal; debidamente inscrita en el   Registro Público de Comercio del Distrito Federal, bajo el folio mercantil   No. 388482, y en el Registro Público de Minería bajo el número 127,   volumen XL del Libro General de Sociedades el 10 de febrero de 2009, y   Registro Federal de Contribuyentes: GTD-080919-MB6.
    	
 
    	
II.A.     That it is a Mexican mining company,   which was incorporated by deed 93,990, granted on September 19, 2008   before Mr. José Visoso del Valle , Notary Public No. 92 of the   Federal District, and registered at the Public Registry of Property and   Commerce of Mexico city, under number 388482, and at the Public Registry of   Mining under number 127, volume XL of the General Book of Corporations on   February 10, 2009, and Federal Taxpayer’s Registry: GDT-080919-MB6.
    
	
 
    	
 
    	
 
    
	
II.B.     Que sus representantes tienen facultades   suficientes para actuar en nombre y representación de GTM, obligándola en los   términos de este contrato, facultades que a la fecha de la firma de este   documento no les han sido revocadas o modificadas en forma alguna.
    	
 
    	
II.B.     That its representatives have the   necessary authority to act in name and representation of GTM, obligating it   in the terms of this agreement, authority that as of the date of signature of   this document has not been revoked or modified in any way.
    
	
 
    	
 
    	
 
    
	
III. Declaran Minera William y   GTM por conducto de sus respectivos representantes:
    	
 
    	
II. Minera William and GTM,   declare through their respective representatives:
    
	
 
    	
 
    	
 
    
	
III.A.    Que ambas son la actuales y únicas   co-titulares por partes iguales de las concesiones del Proyecto denominado   “San Diego”, registradas en su favor en el Registro Público de Minería y que   son: SAN JOSE No. Titulo 166662, con   una superficie de 26 Has; AMPLIACION DE SAN JOSE   No. Titulo 166989, con una superficie de 15 Has; DINO   CATARINO No. Titulo 177272, con una superficie de 3 Has; UNIFICACION EL REFUGIO No, Titulo 186040, con una   superficie de 47.6455 Has. (en lo sucesivo conjuntamente las “Concesiones”)
    	
 
    	
III.A.    Both of them are co-holders in equal parts   of the concessions forming the Project called “San Diego”, and registered in   their favor at the Public Registry of Mining, and that are: SAN JOSE No. Title 166662, with a surface 26 Has; AMPLIACION DE SAN JOSE No. Title 166989, with a   surface 15 Has; DINO CATARINO   No. Title 177272, with a surface 3 Has; UNIFICACION   EL REFUGIO No. Title 186040, with a surface 47.6455 Has.   (hereinafter jointly the “Concessions”)
    
	
 
    	
 
    	
 
    
	
III.B.    Que las Concesiones se encuentran al corriente   en el cumplimiento de las obligaciones que requiere la Ley Minera y su   Reglamento y específicamente en (1) la ejecución y 
    	
 
    	
III.B.    That the Concessions are in compliance   with the obligations required by the Mining Law and its Regulations and specifically   in (1) the execution and reporting of assessment work, and in (2) 
    

 

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comprobación de obras y trabajos, en   (2) el pago de los derechos sobre minería, debido a lo cual no se existe   causa alguna para que las Concesiones sean canceladas o declaradas nulas.
    	
 
    	
the payment of mining rights, due to   which there is no cause for the Concessions to be cancelled or declared void.
    
	
 
    	
 
    	
 
    
	
III.C.    Que las Concesiones están libres de   cualquier gravamen o afectación, que no existe juicio o controversia contra   persona o autoridad alguna, ni existe circunstancia alguna que pudiera   impedir u obstruir el libre ejercicio de los derechos derivados de las   Concesiones.
    	
 
    	
III.C.    That the Concessions are free of any lien   or encumbrance, that there is no trial or controversy against any person or   authority, and that there is not any circumstance that may impede or obstruct   the free exercise of the rights resulting from the Concessions.
    
	
 
    	
 
    	
 
    
	
III.D.    Que por este instrumento Minera William   desea ceder a GTM el porcentaje del 50% respecto del cual es titular la   propia Minera William en las Concesiones, de conformidad al presente   contrato.
    	
 
    	
III.D     That it wishes to hereby assign to GTM   its percentage of 50% of ownership that Minera William has in the   Concessions, according to this agreement.
    
	
 
    	
 
    	
 
    
	
III.E.    Que GTM desea adquirir de Minera William   el 50% (cincuenta por ciento) de la titularidad y de los derechos derivados   de las Concesiones, de conformidad con el presente contrato.
    	
 
    	
III.E.    That GTM wishes to acquire from Minera   William the 50% (fifty percent) of title and of the rights derived from the   Concessions, according to this agreement.
    
	
 
    	
 
    	
 
    
	
III.F.     Que actualmente GTM es titular del 50%   (cincuenta por ciento) restante de la titularidad y de los derechos derivados   de las Concesiones, razón por la cual, declara conocer el estado actual de   las mismas Concesiones para todos los efectos legales a que haya lugar.
    	
 
    	
III.F.     That GTM is currently holder of the   remaining 50% (fifty percent) of the title and of the rights derived from the   Concessions, therefore it declares to be aware on the current status of such   Concessions for all legal purposes.
    
	
 
    	
 
    	
 
    
	
III.G.    Que derivado de la transmisión del 50%   (cincuenta por ciento) de la titularidad y de los derechos derivados de las   Concesiones en favor de GTM, se consolidará la titularidad y los derechos   derivados de las Concesiones en GTM, siendo dicha sociedad la única titular   de los derechos derivados de las citadas Concesiones.
    	
 
    	
III.G.    That derived from the transfer of the 50%   (fifty percent) of title and of the rights derived from the Concessions in   favor of GTM, the ownership of title and of the rights derived from the   Concessions shall be consolidated in GTM, remaining such company as the only   holder of the rights derived from such Concessions.
    
	
 
    	
 
    	
 
    
	
En   virtud de lo anterior, Minera William y GTM acuerdan las siguientes:
    	
 
    	
Given   the above, Minera William and GTM agree on the following:
    

 

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C L A U S U L A S
    	
 
    	
C L A U S E S
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
PRIMERA.- Minera William cede por medio de   este instrumento a GTM, quien adquiere, el 50% (cincuenta por ciento) de la   titularidad y de los derechos y obligaciones derivados de las Concesiones.
    	
 
    	
FIRST.- Minera William hereby assigns to   GTM, who acquires, the 50% (fifty percent) of the title and of the rights and   obligations derived from the Concessions.
    
	
 
    	
 
    	
 
    
	
A partir de la fecha de ratificación   ante Notario de este Contrato de Cesión de Derechos, GTM es la única titular   de los derechos derivados de las Concesiones.
    	
 
    	
As from the date of ratification of   this Contract of Assignment of Rights, GTM is the only holder of the rights   derived from the Concessions.
    
	
 
    	
 
    	
 
    
	
Esta cesión surtirá efectos en los   términos de este Contrato y conforme a la Ley Minera y su Reglamento.
    	
 
    	
This Assignment of Rights is valid   and effective in the terms of this Contract and in accordance with that   provided in the Mining Law and its Regulations.
    
	
 
    	
 
    	
 
    
	
SEGUNDA.- El precio por la cesión de la   titularidad y de los derechos derivados de las Concesiones es la cantidad de   US$455,160 (cuatrocientos cincuenta y cinco mil ciento sesenta Dólares   00/100), moneda de los Estados Unidos de América, misma cantidad que es pagada   de la siguiente manera: US$379,300 (trescientos setenta y nueve mil   trescientos Dólares 00/100), más la entrega de 2,500,000 acciones comunes de   Golden Tag Resources Ltd. por un valor de US$75,860 (setenta y cinco mil   ochocientos sesenta Dólares 00/100), más el correspondiente impuesto al valor   agregado respecto de ambas cantidades, la cual será pagada en la Fecha de   Ratificación (según se define más adelante) de este contrato.
    	
 
    	
SECOND.- The price for the assignment of the   title and of the rights derived from the Concessions is the amount of    US$455,160 (United States dollars four hundred and fifty-five thousand   dollars and one hundred sixty) which is being paid as to US$379,300 (US   dollars three hundred and seventy-nine thousand and three hundred) plus a payment   of 2,500,000 shares of Golden Tag Resources Ltd., valued at US$75,860 (US   dollars seventy-five thousand eight hundred and sixty), plus the   corresponding value added tax on both amounts, which amount shall be paid on   the Date of Ratification (as defined below) of this agreement.
    
	
 
    	
 
    	
 
    
	
Minera William se obliga a entregar   en la Fecha de Ratificación la factura correspondiente que cumpla con los   requisitos fiscales en vigor.
    	
 
    	
Minera William shall deliver on the   Date of Ratification the corresponding invoice that meets tax requirements in   force.
    
	
 
    	
 
    	
 
    
	
TERCERA.- Adicionalmente, como parte de la   contraprestación por la cesión de derechos objeto del presente contrato, GTM   estará obligada a pagar a Minera William una regalía del 2.00% 
    	
 
    	
THIRD.- Likewise, as part of the   consideration on the assignment of rights purpose of this agreement, GTM   shall be obligated to pay to Minera William the 2.00% (two percent) a net   smelter return royalty in respect to the Concessions as 
    

 

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(dos por ciento) sobre   el ingreso neto de fundición respecto de las Concesiones conforme al “Anexo   A” del presente contrato (“Regalía sobre Ingresos Netos de Fundición”).
    	
 
    	
per “Exhibit A” of this   agreement (“Net Smelter Return Royalty”)
    
	
 
    	
 
    	
 
    
	
GTM solamente podrá transmitir las   Concesiones a uno o más terceros si estos se obligan a pagar la Regalía a   Minera William en los términos del “Anexo A” de este contrato y a cualquier   transmisión subsecuente de la Regalía quede sujeta a esta misma restricción,   siendo la intención de las partes que la Regalía siempre esté aparejada con   la titularidad de las Concesiones.
    	
 
    	
GTM shall only transfer the   Concessions to one or more third parties, in whole or in part, if such   transferee, obligates itself to pay the Royalty to Minera William in the   terms of “Exhibit “A” of this agreement and that any subsequent transfer   of the Royalty be subject to this same restriction, it being the intent of   the parties that the Royalty shall run with the title over the Concessions.
    
	
 
    	
 
    	
 
    
	
CUARTA.      A   partir de la fecha en que las partes ratifiquen este contrato ante el notario   que elija GTM (“Fecha de Ratificación”), GTM será responsable de hacer frente   a cualquier obligación, contingencia o requerimiento que derive de las   actividades que se desarrollen en las Concesiones.
    	
 
    	
FOURTH. As from the date on which the   parties ratify this agreement before the notary chosen by GTM (“Date of   Ratification”), GTM shall be responsible for complying with any obligation,   contingency or requirement which may result from the activities carried out   within the Concessions.
    
	
 
    	
 
    	
 
    
	
Asimismo, a partir de la Fecha de   Ratificación, GTM será responsable de dar cumplimiento a las obligaciones que   derivan de las Concesiones Mineras de acuerdo a las leyes y reglamentos.
    	
 
    	
Likewise, as from the Date of   Ratification, GTM shall comply with each and every obligation deriving from   the Mining Concessions in accordance with the laws and regulations.
    
	
 
    	
 
    	
 
    
	
QUINTA.- Los impuestos, honorarios y gastos   notariales que se ocasionen con el otorgamiento y ratificación notarial del   presente contrato serán cubiertos por GTM.
    	
 
    	
FIFTH.- The taxes, fees and notary expenses   resulting from the granting and notary ratification of the present agreement   shall be covered by GTM.
    
	
 
    	
 
    	
 
    
	
SEXTA.- A partir de la Fecha de   Ratificación, GTM se obliga a solicitar la inscripción del mismo ante el   Registro Público de Minería dentro de los 15 (quince) días siguientes a dicha   ratificación, obligándose Minera William y GTM a proveer y/o firmar cualquier   documento adicional que pueda ser necesario para obtener la inscripción y   para dar pleno efecto a este contrato.
    	
 
    	
SIXTH.- From the Date of Ratification, GTM   shall apply for the registry of the same before the Public Registry of Mines   within the 15 (fifteen) following days of said ratification, being obligated   Minera William and GTM to provide and/or sign any additional document that   may be necessary to obtain the registration and to give full effect to this   agreement.
    
	
 
    	
 
    	
 
    
	
SEPTIMA.- GTM acepta que recibe las   Concesiones objeto de la 
    	
 
    	
SEVENTH.- GTM accepts that it receives the   Concessions subject to the
    

 

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cesión del presente contrato bajo una   base de “como está”, y Minera William no hace representación alguna sobre la   condición de las Concesiones cedidas adicional a las hechas en las   Declaraciones del presente contrato.
    	
 
    	
assignment purpose of this agreement   on an “as is” basis, and Minera William does not make any representation on   the condition of the assigned Concessions additional to those made in the   Recitals of this agreement..
    
	
 
    	
 
    	
 
    
	
Minera William proveerá a GTM copias   de la información que tenga sobre las Concesiones, según corresponda, dentro   de los 30 días naturales siguientes a la Fecha de Ratificación, asimismo,   ambas partes reconocen que los núcleos de perforación o esquirlas de roca de   perforaciones anteriores se encuentran en posesión de GTM, por lo que Minera   William se encuentra liberada de entregar núcleos o muestras de trabajos de   exploración que pudiesen derivar de las Concesiones.
    	
 
    	
Minera William shall provide to GTM   copies of the information it may have on the Concessions, as corresponds,   within 30 calendar days of the Date of Ratification, likewise, both parties   acknowledge that the drilling cores or prior drilling rock splinters are in   possession of GTM, therefore, Minera William is released from the delivery of   drilling cores or samples of exploration works that could derive from the   Concessions.
    
	
 
    	
 
    	
 
    
	
OCTAVA.- Todos los avisos entre las partes   conforme al presente contrato se harán de manera indubitable, por escrito, a   los siguientes domicilios:
    	
 
    	
EIGHTH.- Every notice between the parties   according to the present agreement shall be made in an indubitable way, in   writing, to the following addresses:
    
	
 
    	
 
    	
 
    
	
MINERA WILLIAM, S.A. DE C.V.
    	
 
    	
MINERA WILLIAM, S.A. DE C.V.
    
	
Río Támesis No. 2505
    	
 
    	
Río Támesis No. 2505
    
	
Colonia Magdalenas C.P. 27010
    	
 
    	
Colonia Magdalenas C.P. 27010
    
	
Torreón, Coahuila, México
    	
 
    	
Torreón, Coahuila, México
    
	
Teléfono: (871)7475750
    	
 
    	
Phone Number: (871)7475750
    
	
 
    	
 
    	
 
    
	
GOLDEN TAG DE MÉXICO,
   S.A. DE C.V.
    	
 
    	
GOLDEN TAG DE MÉXICO,
   S.A. DE C.V
    
	
Américas 1506 – 101
    	
 
    	
Américas 1506 – 101
    
	
Country Club
    	
 
    	
Country Club
    
	
Guadalajara, Jalisco
    	
 
    	
Guadalajara, Jalisco
    
	
C.P. 44610
    	
 
    	
C.P. 44610
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
NOVENA.- Para toda controversia que surja   entre las partes respecto a la interpretación o ejecución del presente   contrato, o en relación con el mismo, las partes se someten a la jurisdicción   de los tribunales federales en el Distrito Federal y renuncian expresamente a   cualquier otra que pudiera corresponderles.
    	
 
    	
NINTH. For every controversy that may arise   between the parties regarding the interpretation or execution of the present   agreement, or in connection therewith, the parties submit to the jurisdiction   of the competent federal courts in the Federal District and expressly waive   any other that may correspond to them.
    

 

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DECIMA.- El presente contrato se firma en   sus versiones en inglés y español en doble columna. En caso de contradicción   entre ambas versiones, deberá prevalecer la versión en español. La versión en   español, sin incluir la presente Cláusula Décima, también será firmada solo   en español, ratificada ante Notario, y presentada para inscripción en el   Registro Público de Minería.
    	
 
    	
TENTH.- This agreement is signed in   side-by-side English and Spanish versions. In the event of contradiction, the   Spanish version shall prevail. The Spanish language version, without   including this Clause Tenth, will also be signed in Spanish only, ratified   before a Mexican Notary Public, and filed for registration at the Public   Registry of Mining.
    
	
 
    	
 
    	
 
    
	
El presente contrato se firma en   cuatro ejemplares el 2 de agosto de 2016.
    	
 
    	
This agreement is signed in four   execution copies on August 2, 2016.
    

 

 

 

 

MINERA WILLIAM, S.A. DE CV.

 

 

 

 

 

 

  /s/ Alberto Mauricio Vázquez Sánchez        

Representada por/Represented by:

Alberto Mauricio Vázquez Sánchez

 

 

 

GOLDEN TAG DE MEXICO, S.A. DE C.V.

 

 

 

 

 

  /s/ José Eduardo Ribé Martínez de Velasco      

Representada por/Represented by:

José Eduardo Ribé Martínez de Velasco

 

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ANEXO “A”
    	
 
    	
EXHIBIT “A”
    
	
 
    	
 
    	
 
    
	
REGALÍA SOBRE INGRESOS NETOS DE FUNDICIÓN
    	
 
    	
NET SMELTER RETURN ROYALTY
    
	
 
    	
 
    	
 
    
	
Conforme   a la Cláusula Tercera del Contrato de Cesión de Derechos, pudiere hacerse   pagadera una regalía calculada en base a los ingresos netos de fundición, a Minera William. Este Anexo “A” estipula la manera en que   se calculará y pagará dicha regalía de producción (en adelante denominada la   “Regalía”). La Regalía se pagará sobre cualquier producción a escala   comercial de Mineral que sea extraído de las Concesiones.   A menos que aquí se defina lo contrario, los términos en mayúsculas o con su   primera letra en mayúsculas utilizados en este Anexo “A” tendrán el   significado que se les asigna en el Contrato.
    	
 
    	
Pursuant   to Clause Third of the Contract of Assignment of Rights , a royalty   calculated on the net smelter returns (NSR) may become payable to Minera William. This Exhibit “A” sets forth the   manner in which such production royalty (hereinafter called the “Royalty”)   shall be calculated and paid. The Royalty shall be paid on the commercial   scale production of Mineral extracted from the areas covered by the Concessions. Unless otherwise defined herein, fully   capitalized terms or terms with their initial letter in capitals used in this   Exhibit “A” shall have the meaning assigned to them in the Contract.
    
	
 
    	
 
    	
 
    
	
1.           Definiciones. Tal como se   utilizan en este Anexo “A”, las palabras y expresiones siguientes con su   primera letra en mayúsculas tendrán los significados establecidos a   continuación:
    	
 
    	
1.           Definitions. As used in this   Exhibit “A”, the following capitalized words and phrases shall have the   meanings set forth below:
    
	
 
    	
 
    	
 
    
	
“Minera William” significa Minera   William, S.A. de C.V., cualquier sucesor y cualquier cesionario de   la totalidad o cualquier porción de la Regalía.
    	
 
    	
“Minera William” means Minera William, S.A. de   C.V., any successor and any assignee of all or of any portion of   the Royalty.
    
	
 
    	
 
    	
 
    
	
“GTM” significa Golden Tag de México,   S.A. de C.V., cualquier sucesor y cualquier obligado al pago de la   Regalía.
    	
 
    	
“GTM” means Golden Tag de Mexico,   S.A. de C.V., any successor and any obligated party to pay the   Royalty
    
	
 
    	
 
    	
 
    
	
“Contrato” significa el Contrato de Cesión de Derechos al   que se anexa este documento como anexo “A”.
    	
 
    	
“Contract” means the Contract of Assignment of Rights to   which this document is attached as Exhibit “A”.
    
	
 
    	
 
    	
 
    
	
“Cotización del Precio del Mineral” para el oro en   cualquier Día Hábil en Londres en particular, significa la cotización diaria   de la tarde (precio de cierre) de la Asociación del Mercado de 
    	
 
    	
“Mineral Price Quotation” for gold on any particular London   Business Day, means the daily afternoon fix (closing price) on the London   Bullion Market Association (commonly referred to 
    

 

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Metales Preciosos de Londres (London Bullion Market Association) (referida comúnmente   como la “segunda fijación de precio de Londres” o second   London fixing, el “cierre de Londres” o London   closing, o “la fijación de precio de Londres p.m.” o London fixing p.m.) para el oro en ese Día Hábil en   Londres, según la misma es publicada por las pulicaciones Metals Week, The Wall Street Journal   o cualquier otra publicación de confiabilidad comparable; y para cualquier   otro mineral que no sea el oro en cualquier Día Hábil Comex, significa el   precio de dicho mineral cotizado al cierre de los negocios en ese día por la   Bolsa de Materias Primas de Nueva York (New York Commodity   Exchange). En caso que se descontinúe la publicación de la   Cotización del Precio del Mineral o la negociación en la Asociación del   Mercado de Metales Preciosos de Londres (London Bullion Market   Association) o en la Bolsa de Materias Primas de Nueva York (New York Commodity Exchange), GTM seleccionará y utilizará   una cotización comparable de mineral, razonablemente aceptable para Minera   William, a fines de calcular la Regalía. La Cotización del Precio para el oro   será por una onza troy de oro con ley de mínimo 0.995.
    	
 
    	
as the “second London fixing,” the   “London Closing” the “London fixing p.m.”) for gold on that London Business   Day, as published by Metals Week, The Wall Street Journal or other   publication of comparable reliability; and for any other mineral other than   gold on any Comex Business Day, means the price of such mineral quoted at the   close of business on such day by the New York Commodity Exchange. If publication   of the Mineral Price Quotation or trading on the London Bullion Market   Association or New York Commodity Exchange shall be discontinued, GTM shall   select and utilize a comparable mineral quotation, reasonably acceptable to   Minera William, for purposes of calculating the Royalty. The Price Quotation   for gold shall be for a troy ounce of gold of 0.995 minimum fineness.
    
	
 
    	
 
    	
 
    
	
“Deducciones” tendrá el significado aquí asignado dentro de   la definición de Ingresos Netos de Fundición estipulada más adelante en esta   Sección 1.
    	
 
    	
“Deductions” shall have the meaning assigned thereto within   the definition of Net Smelter Returns set forth below in this Section 1.
    
	
 
    	
 
    	
 
    
	
“Día Hábil Comex” significa cualquier día en que la Bolsa   de Materias Primas de Nueva York (New York Commodity   Exchange) esté abierta para la venta y negociación de materias   primas.
    	
 
    	
“Comex Business Day” means any day on which the New York   Commodity Exchange is open for the sale and trading of commodities.
    
	
 
    	
 
    	
 
    
	
“Día Hábil en Londres” significa cualquier día en que la   Asociación del Mercado de Metales Preciosos de Londres (London   Bullion Market Association) esté abierta para la venta y 
    	
 
    	
“London Business Day” means any day on which the London   Bullion Market Association is open for the sale and trading of commodities.
    

 

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negociación de materias primas.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
“Filial de Minera William” significa: (a) cualquier   persona o entidad que posea acciones u otra forma de participación en el   capital social de Minera William ; y (b) cualquier persona o entidad que   sea propiedad o sea controlada por cualquier persona o entidad descrita en el   literal (a) anterior.
    	
 
    	
“Minera William’s Affiliate” means (a) any person or   entity owning shares of stock or other form of participating interest in the   capital stock of Minera William, and (b) any person or entity owned or   controlled by any person or entity described in the preceding clause (a).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
“Ingresos Netos de Fundición” imputable a cualquier   Trimestre Calendario en particular, significa el Valor Estipulado para ese   Trimestre Calendario de todos los Minerales que acrediten a la cuenta de GTM   cualquier fundidor, refinador u otro comprador directo de primera mano de   buena fe durante ese Trimestre Calendario, menos los costos y gastos   siguientes (“Deducciones”): (i) todos los cargos y costos, si los   hubiere, de carga y transporte de los Minerales (respecto a los que se paga   la Regalía) a un fundidor, refinador o comprador directo de primera mano,   junto con todos los costos de asegurar tales Minerales durante su tránsito;   (ii) todos los cargos, costos y penalidades, si los hubiere, por el   tratamiento, procesamiento, fundición y refinación de tales Minerales;   (iii) todos los cargos, costos y comisiones, si las hubiere, de vender   tales Minerales; y (iv) los pagos, impuestos u honorarios por las ventas   o por motivos similares o relacionados que sean pagaderos por GTM o por   cualquier operador o administrador de las Concesiones,   si los hubiere, basados directamente e imputados realmente al valor o   cantidad de los Minerales transportados, pero excluyendo todos y cualesquiera   de los siguientes pagos, impuestos y honorarios:
    	
 
    	
“Net Smelter Returns” attributable to any particular   Calendar Quarter, means the Stipulated Value for that Calendar Quarter of all   Minerals that are credited to the account of GTM by a smelter, refiner or   other bona fide first hand purchaser during that Calendar Quarter, less the   following costs and expenses (“Deductions”): (i) all charges and costs,   if any, for loading and transporting Minerals (with respect to which the   Royalty is paid) to a smelter, refiner, or first hand purchaser, together   with all costs of insuring such Minerals in transit; (ii) all charges,   costs and penalties, if any, for treating, processing, smelting and refining   of such Minerals; (iii) all charges, costs and commissions, if any, of   selling such Minerals; and (iv) sales, or other similar or related   payment, tax or fee payable by the GTM or any operator or manager of the Concessions, if any, based directly upon and actually   assessed against the value or quantity of Minerals shipped, but excluding any   and all of the following payments, taxes, and fees:
    
	
 
    	
 
    	
 
    
	
(1)    aquéllos   basados en el ingreso neto o bruto que perciba GTM o cualquier operador o   administrador de 
    	
 
    	
(1)    those   based upon the net or gross income received by GTM or any operator or manager   of las Concessions subject to 
    

 

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lasConcesiones sujetas a la Regalía, es decir, el impuesto   sobre la renta y el impuesto al valor agregado (IVA) que se causen a cargo y   sean responsabilidad de GTM;
    	
 
    	
royalty,   that is, income tax and value added tax (VAT) for the account and   responsibility of GTM;
    
	
 
    	
 
    	
 
    
	
(2)    aquéllos   basados en el valor de las Concesiones   sujetas a la Regalía, el privilegio de hacer negocios, y otros pagos,   impuestos u honorarios basados en motivos similares;
    	
 
    	
(2)    those   based upon the value of the Concessions   subject to the Royalty, the privilege of doing business, or other similarly   based payments, taxes or fees;
    
	
 
    	
 
    	
 
    
	
(3)    aquéllos   que no estén basados directamente e imputados realmente al valor o cantidad   de los Minerales extraídos de las Concesiones y   transportados; y
    	
 
    	
(3)    those   not based directly upon and actually assessed against the value or quantity   of Minerals extracted from the Concessions   and shipped; and
    
	
 
    	
 
    	
 
    
	
(4)    aquéllos   pagaderos al operador de las Concesiones sujetos   a la Regalía, basados directamente e imputados realmente al valor o cantidad   de los Minerales transportados.
    	
 
    	
(4)    those   payable to the operator of the Concessions   subject to Royalty based directly upon and actually assessed against the   value or quantity of Minerals shipped.
    
	
 
    	
 
    	
 
    
	
En   caso de que la fundición y/o refinación se realicen en instalaciones que sean   propiedad de o sean controladas por GTM o una Filial de GTM los cargos,   costos y penalidades por tales operaciones, incluyendo sin limitación por la   carga, transporte y seguro asociado, equivaldrán a la suma que GTM o la   Filial de GTM hubiese pagado si tales operaciones se hubiesen realizado en   instalaciones que no fuesen propiedad de o no estuviesen controladas por GTM   o la Filial de GTM, que ofrezcan, para ese momento, servicios comparables   para productos comparables, de acuerdo con los términos y condiciones   prevalecientes en el mercado.
    	
 
    	
In the   event that smelting and/or refining are carried out in facilities owned or   controlled by GTM or a GTM’s Affiliate, then charges, costs and penalties for   such operations, including without limitation for loading, transportation and   associated insurance, shall mean the amount that GTM or GTM’s Affiliate would   have paid if such operations were carried out at facilities not owned or   controlled by GTM or GTM’s Affiliate then offering comparable services for   comparable products on prevailing market terms.
    
	
 
    	
 
    	
 
    
	
“Mineral” significa todas las menas, concentrados,   precipitados y productos extraídos, producidos, recuperados y vendidos, que   provengan directamente de las Concesiones   que estén sujetas a la Regalía (exceptuando
    	
 
    	
“Mineral” means all ores, concentrates, precipitates and   products extracted, produced, recovered and sold, directly coming from the Concessions subject to the Royalty (exclusive of   Non-Commercial Production), the selling price 
    

 

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la Producción No Comercial), cuyo   precio de venta sea acreditado a la cuenta de GTM por un fundidor, refinador   u otro comprador directo de primea mano de buena fe.
    	
 
    	
of which is credited to the account   of GTM by a smelter, refiner or other bona fide first hand purchaser.
    
	
 
    	
 
    	
 
    
	
“Porcentaje de los Ingresos Netos de Fundición” con   respecto a cualquier Trimestre Calendario en particular, significa el   porcentaje de los Ingresos Netos de Fundición que sea pagadero como Regalía   para ese Trimestre Calendario, según lo determinado en la Sección 2 de este   anexo “A”;
    	
 
    	
“Net Smelter Returns Percentage” attributable to any   particular Calendar Quarter means the percentage of the Net Smelter Returns   payable as Royalty for that Calendar Quarter as determined under   Section 2 of this Exhibit “A”;
    
	
 
    	
 
    	
 
    
	
“Precio Promedio del Mineral No Aurífero” con respecto a   cualquier Trimestre Calendario en particular y con respecto a cualquier   mineral distinto del oro en particular, significa el promedio aritmético   sencillo de la Cotización del Precio del Mineral para ese mineral en cada Día   Hábil Comex durante ese Trimestre Calendario.
    	
 
    	
“Non-Auriferous Mineral Average Price” with respect to any   particular Calendar Quarter and any particular mineral other than gold, means   the simple arithmetical average of the Mineral Price Quotation for that   mineral on each Comex Business Day during that Calendar Quarter.
    
	
 
    	
 
    	
 
    
	
“Precio Promedio del Oro” con respecto a cualquier   Trimestre Calendario, significa el promedio aritmético sencillo de la   Cotización del Precio del Mineral para el oro en cada Día Hábil en Londres   durante ese Trimestre Calendario.
    	
 
    	
“Gold Average Price” for any Calendar Quarter, means the   simple arithmetical average of the Mineral Price Quotation for gold on each   London Business Day during that Calendar Quarter.
    
	
 
    	
 
    	
 
    
	
“Producción No Comercial” significa todas las menas,   metales, minerales, colas, concentrados, precipitados y productos minerales   extraídos de las Concesiones   que están sujetas a la Regalía, con fines de realizar toda clase de pruebas,   incluyendo, sin limitación, muestras a granel, ensayos, análisis geoquímicos,   grado de respuesta a la molienda y lixiviación, y determinaciones de la   recuperación, pruebas piloto de la planta y operaciones de prueba de descarga   del molino (trómel);
    	
 
    	
“Non-Commercial Production” means all ores, metals,   minerals, tailings, concentrates, precipitates and mineral products extracted   from the Concessions subject to the Royalty   for carrying out all kinds or tests, including without limitation for bulk   samples, assays, geochemical analyses, amenability to milling and leaching   and recovering determinations, pilot plant tests and test trommel operations;
    
	
 
    	
 
    	
 
    
	
“Regalía” significa la regalía de 
    	
 
    	
“Royalty” means the production 
    

 

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producción sobre los Ingresos Netos   de Fundición que pudiere ser pagadera a Minera William conforme a la Cláusula   Tercera del Contrato.
    	
 
    	
royalty on Net Smelter Returns that   may become payable to Minera William pursuant to Clause Third of the   Contract.
    
	
 
    	
 
    	
 
    
	
“Trimestre Calendario” significa cada período de tres meses   que finaliza el 31 de marzo, el 30 de junio, el 30 de septiembre y el 31 de   diciembre de cada año calendario.
    	
 
    	
“Calendar Quarter” means each three-month period ending on   March 31, June 30, September 30 and December 31 of each   calendar year.
    
	
 
    	
 
    	
 
    
	
“Valor Estipulado” significa el precio de venta del Mineral   acreditado a la cuenta de GTM por un fundidor, refinador u otro comprador   directo de primera mano de buena fe, durante cualquier Trimestre Calendario,   es decir, el número acreditado de onzas de oro o de unidad de medida de   volumen aplicable de cualquier otro Mineral distinto del oro, multiplicado   por el Precio Promedio del Oro o por el Precio Promedio del Mineral No   Aurífero, según el Mineral de que se trate, para ese Trimestre Calendario.
    	
 
    	
“Stipulated Value” means the selling price of the Mineral   credited to the account of GTM by a smelter, refiner or other bona fide first   hand purchaser during any Calendar Quarter, that is, the credited number of   ounces of gold or of the applicable measurement unit of volume for any other   Mineral other than gold, multiplied by the Gold Average Price or the   Non-Auriferous Mineral Average Price, depending on the relevant Mineral, for   that Calendar Quarter.
    
	
 
    	
 
    	
 
    
	
2.         Regalía de producción. GTM   pagará en efectivo a Minera William una Regalía del 2.00% (dos   por ciento) establecida en la Cláusula Tercera del Contrato sobre   los Ingresos Netos de Fundición que se obtengan de los Minerales extraídos,   recuperados y vendidos que provengan directamente de las   Concesiones sujetas a la Regalía, durante cada Trimestre   calendario, basada en el Precio Promedio del Oro o en el Precio Promedio del   Mineral No Aurífero, según el Mineral de que se trate, para el Trimestre   Calendario que corresponda. GTM no tendrá obligación de pagar Regalía alguna   sobre la Producción No Comercial.
    	
 
    	
2.         Production Royalty. GTM shall   pay in cash to the Minera William a Royalty of the 2.00% (two   percent) established in Clause Third of the Contract on the Net   Smelter Returns obtained from the Minerals extracted, recovered and sold   directly coming from the Concessions subject   to Royalty, during each Calendar Quarter, based upon the Gold Average Price   or the Non-Auriferous Mineral Average Price, depending on the relevant   Mineral, for the pertinent Calendar Quarter. GTM shall have no obligation to   pay any Royalty whatsoever on Non-Commercial Production.
    
	
 
    	
 
    	
 
    
	
3.         Pago. Dentro del período de   veinte (20) días hábiles contados después de finalizar cada Trimestre   Calendario y sujeto a los ajustes aplicables estipulados en este anexo “A”,   GTM pagará a Minera William la Regalía imputable a ese Trimestre Calendario. 
    	
 
    	
3.         Payment. Within twenty (20)   business days from the end of each Calendar Quarter, and subject to any   applicable adjustments set forth in this Exhibit “A”, GTM shall pay to   Minera William the Royalty attributable to that Calendar Quarter. Such   payment shall 
    

 

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Dicho pago será un pago dinerario, ya   sea en cheque, transferencia bancaria o cualquier instrumento monetario de   pago, a menos que Minera William opte por tomar la Regalía en especie de acuerdo   con la Sección 6 de este anexo “A”. En caso de que dicho pago se haga   exigible antes de la liquidación final de las cuentas con un fundidor,   refinador u otro comprador directo de primera mano de buena fe, respecto de   uno o más lotes de Mineral, GTM pagará a Minera William una Regalía   provisional basada en la liquidación preliminar de cuentas. Los pagos de la   Regalía provisional estarán sujetos a ajuste posterior según lo estipulado   más adelante en la Sección 4.
    	
 
    	
be a monetary payment, whether in cash,   check, bank transfer or any other monetary payment instrument, unless Minera   William elects to take the Royalty in kind pursuant to Section 6 of this   Exhibit “A”. In the event that such payment becomes due prior to final   settlement with a smelter, refiner or other bona fide first hand purchaser   for one or more Mineral plot, then GTM shall pay Minera William a provisional   Royalty based upon the preliminary settlement. Payments of the provisional   Royalty shall be subject to subsequent adjustment as provided below in   Section 4.
    
	
 
    	
 
    	
 
    
	
4.         Ajustes. En caso de que GTM   determine que cualquier pago de Regalía se efectúo por menos o por más de lo   efectivamente debido, GTM corregirá dicho pago de menos o de más ajustando la   cantidad en el siguiente pago de inmediato de la Regalía de acuerdo a dicha   determinación.
    	
 
    	
4.         Adjustments. In the event that   GTM determines that any payment of Royalty was underpaid or overpaid, GTM   shall correct such overpayment or underpayment by adjustment to the amount of   the next subsequent payment of Royalty following such determination.
    
	
 
    	
 
    	
 
    
	
5.         Declaración. En el momento en   que GTM haga cualquier pago de la Regalía, proporcionará directamente a   Minera William una breve declaración escrita estableciendo la manera cómo se   calculó dicho pago de la Regalía e incluyendo detalles de cualquier   determinación efectuada por GTM respecto al pago de menos o de más de la   Regalía. Se considerará que Minera William ha renunciado irrevocablemente a   cualquier derecho que pudiere haber tenido a cuestionar u objetar cualquier   pago en particular de la Regalía, a menos que notifique a GTM por escrito tal   cuestionamiento indicando los motivos específicos para ello, dentro del   período de seis (6) meses después de recibir la declaración de GTM con   respecto a dicho pago.
    	
 
    	
5.         Statement. At such time as GTM   makes any payment of Royalty, GTM shall provide directly to Minera William a   brief written statement setting forth the manner in which such payment of   Royalty was calculated and including details of any determination made by the   GTM as to the over or under payment of Royalty. Minera William shall be   deemed to have irrevocably waived any right it may have had to dispute or   oppose to any particular payment of Royalty unless Minera William notifies   GTM in writing of such dispute, stating the specific grounds therefore,   within six (6) months from the receipt of GTM’s statement with respect   to such payment.
    
	
 
    	
 
    	
 
    
	
6.         Opción de Tomar la Regalía en   Especie. Minera William podrá optar, proporcionando para ello 
    	
 
    	
6.         Election to Take the Royalty in   Kind. Minera William may elect, by providing written notice to GTM
    

 

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notificación escrita a GTM con al   menos sesenta (60) días naturales de antelación al comienzo de cualquier   Trimestre Calendario, por tomar en especie la Regalía correspondiente a   cualquier Mineral que sea refinado en ese Trimestre Calendario en lugar de   tomar la Regalía correspondiente al mismo en dinero en efectivo. En caso de   que Minera Willliam no dé a GTM la notificación antes referida con la   antelación necesaria, se entenderá que Minera William está de acuerdo en   recibirla en efectivo. Está opción será irrevocable respecto al Trimestre   Calendario en cuestión. En caso que Minera William opte por tomar en especie,   tendrá derecho a tomar un porcentaje igual al de la Regalía, respecto de todo   el Mineral que se refine durante ese Trimestre Calendario, sujeto a la   obligación de correr con ciertos costos y gastos, sin duplicación, tal como   se describe a continuación. Minera William tendrá derecho a tomar la entrega   de su cuota de Mineral únicamente en la refinería, después de haberlo   refinado. Minera William asumirá y pagará inmediatamente el Porcentaje de los   Ingresos Netos de Fundición que le corresponda respecto de todos los   conceptos que integran las Deducciones relacionadas con el Mineral tomado en   especie. Minera William hará todos los arreglos necesarios para tomar la   entrega de su cuota de producción en la refinería, establecerá una cuenta en   la refinería pertinente, en la que se depositará su cuota de la Regalía de   dicho Mineral refinado y correrá con todos los costos, gastos, riesgos y   responsabilidades asociadas con dicha toma, incluyendo sin limitación, los   costos de separar la cuota de Minera William de la producción de GTM y de cargar   y sacar dicha cuota de producción de la refinería. Cualquier gasto extra   incurrido en relación con la toma de la Regalía en especie o la segregación o   división del Mineral con ello relacionada, correrá por cuenta y será pagada   exclusivamente por Minera William. En caso de que Minera 
    	
 
    	
not less than sixty (60) calendar   days prior to the commencement of any Calendar Quarter, to take the Royalty   in kind in respect of any Mineral which is refined in that Calendar Quarter   instead of taking the Royalty corresponding to the same in cash. If Minera   William does not deliver to GTM the above-mentioned notice as early as   required, it shall be understood that Minera William agrees to receive it in   cash. Such election shall be irrevocable with respect to the Calendar Quarter   in question. In the event of such election by Minera William to take in kind,   Minera William shall be entitled to take a percentage equal to the Royalty   with regard to all Mineral which is refined during that Calendar Quarter,   subject to the obligation to bear certain costs and expenses, without   duplication, as described further below. Minera William shall be entitled to   take delivery of its share of Mineral only at the refinery after the refining   thereof. Minera William shall bear and promptly pay the Net Smelter Returns   Percentage corresponding to him with respect to all items making up the   Deductions related to the Mineral so taken in kind. Minera William shall make   all necessary arrangements to take delivery of its share of production at the   refinery, shall establish an account at the applicable refinery into which   its Royalty share of such refined Mineral shall be deposited, and shall bear   all costs, expenses, risks and responsibilities associated with such taking,   including without limitation the costs of separating the Minera William’s   share from GTM’s production, and of loading and removing such share of   production from the refinery. Any extra expenditure incurred in connection   with the taking of the Royalty in kind or with the segregation or division of   Mineral in connection therewith shall be borne and paid exclusively by Minera   William. Should Beneficiary fail to take its share of production in kind   after having notified GTM that he would do so, the Minera William agrees that   if his share of production is lost, stolen or otherwise 
    

 

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William no tome su cuota de la   producción en especie después de haber notificado a GTM que así lo haría,   está de acuerdo en que, si su cuota de producción se pierde, roba o daña de   otra manera después de la división o segregación de la misma en la refinería,   será el único responsable de ello y GTM no tendrá responsabilidad alguna al   respecto y se considerará que ha cumplido plenamente con su obligación de   pagar la Regalía en cuestión.
    	
 
    	
damaged after the division or   segregation thereof at the refinery, Minera William shall be solely   responsible for such failure or loss and GTM shall have no responsibility   therefore and shall be deemed to have fully performed its obligation to pay   the Royalty in question.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
7.         Derecho a hacer auditorías.
    	
 
    	
7.         Audit Rights.
    
	
 
    	
 
    	
 
    
	
(a)        Aspectos generales. GTM llevará   registros y libros contables exactos de todas las actividades mineras   realizadas por ella o bajo su control en las   Concesiones sujetos al pago de la Regalía, que indiquen en   particular la cantidad, ley y composición de todos los Minerales, todos los   recibos de la venta de los mismos y todas las Deducciones. Minera William   podrá, cuando así lo solicite, pero no más frecuentemente que una vez por   cada período de seis (6) meses, por su sola cuenta y riesgo y corriendo   con los gastos, dirigir o realizar, en momentos y lugares razonables, todas o   cualquiera de las actividades siguientes: (i) inspeccionar las Concesiones y cualquier lugar utilizado en relación con   las actividades en ellos realizadas o relacionadas con el procesamiento,   almacenamiento o transporte de cualquiera de los Minerales;   (ii) inspeccionar, revisar y fotocopiar todos y cualesquiera libros,   registros, documentos, correspondencia, planes mineros, datos geológicos,   estudios y otra información, de cualquier tipo y descripción, perteneciente o   relacionada de cualquier manera con el cálculo de la Regalía pagadera   conforme al Contrato, las actividades mineras u otras efectuadas en las Concesiones o el procesamiento, almacenamiento o
    	
 
    	
(a)        General Matters. GTM shall keep   accurate accounting records and books of account for all mining operations   conducted by it or under its control on the   Concessions subject to Royalty payment, showing in particular the   quantity, grade and composition of all Minerals, all receipts from the sale   thereof and all Deductions. Minera William may, upon request, but not more   frequently than once in any six (6) month period, at its sole cost, risk   and expense and at reasonable times and places, conduct or perform any or all   of the following activities: (i) inspect the   Concessions and any sites utilized in connection with operations   thereon or related to the processing, storage or transportation of any   Minerals; (ii) inspect, review and photocopy any and all books, records,   documents, correspondence, mine plans, geological data, studies and other   information, of all types and descriptions whatsoever, pertaining or relating   in any way to the calculation of the Royalty payable pursuant to the   Contract, the mining or other operations conducted on the   Concessions payment or the processing, storage or transportation   of any Minerals; and (iii) audit the books of account and all other   records and information, of all types and descriptions whatsoever, bearing   upon the calculation 
    

 

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transporte   de cualesquiera Minerales; y (iii) auditar los libros de contabilidad y   todos los otros registros e información, de todo tipo y descripción,   relacionados con el cálculo de los pagos de la Regalía conforme al Contrato.
    	
 
    	
of   Royalty payments pursuant to the Contract.
    
	
 
    	
 
    	
 
    
	
(b)        Confidencialidad. Toda la información obtenida   por Minera William respecto a las Concesiones,   y a las actividades en las mismas, como resultado de la realización de   cualquier auditoría o inspección, se mantendrá estrictamente confidencial y   no se revelará a tercero alguno, así como tampoco al público, sin el   consentimiento previo por escrito de GTM. Las obligaciones de   confidencialidad estipuladas en esta Sección 7(b) no se aplicarán a   información alguna que: (i) estaba, según quede demostrado de registros   escritos, en posesión o bajo control de GTM antes de la fecha en que se   otorgó la Regalía; o (ii) era de dominio público para la fecha en que se   otorgó la Regalía o pasó a ser de dominio público posteriormente sin   incumplimiento de las obligaciones de confidencialidad estipuladas en este   anexo, en el Contrato o en cualquier otro acuerdo. Tales obligaciones de   confidencialidad tampoco se aplicarán a la revelación:
    	
 
    	
(b)        Confidentiality. All information   obtained by Minera William with respect to the   Concessions, and the operations thereon, as a result of the   performance of any audit or inspection, shall be kept strictly confidential   and shall not be disclosed to any third party or the public without the prior   written consent of GTM. The obligations of confidentiality set forth in this   Section 7(b) shall not apply with respect to any information that:   (i) was, as shown by written records, in the possession or under the   control of GTM prior to the date on which the Royalty was granted, or   (ii) was in the public domain as of the date on which the Royalty was   granted or entered the public domain thereafter without violation of the   obligations of confidentiality set forth herein, in the Contract or in any   other agreement. Such obligations of confidentiality shall also not apply to   a disclosure:
    
	
 
    	
 
    	
 
    
	
(1)        A un   consultor que tiene necesidad de buena fe de estar informado;
    	
 
    	
(1)        To a   consultant that has a bona fide need to be informed;
    
	
 
    	
 
    	
 
    
	
(2)        A   cualquier tercero a quien Minera William esté considerando hacer una   transferencia de la totalidad o cualquier parte de su participación en la   Regalía; o
    	
 
    	
(2)        To any   third party to whom Minera William contemplates a transfer of all or any part   of its interest in the Royalty; or
    
	
 
    	
 
    	
 
    
	
(3)        A un   organismo gubernamental o tribunal, en la medida en que a Minera William le   sea formalmente requerido ello, conforme a la ley o reglamento que le resulte   aplicable que le obliguen, siempre y cuando 
    	
 
    	
(3)        To a   governmental agency or court to the extent in which Minera William is   formally required to do so pursuant to the applicable Law or regulation   obliging Minera William, provided that Minera William 
    

 

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Minera   William se limite a proporcionar ante dichas instancias la información a la   que se encuentre legalmente obligado;
    	
 
    	
limits   himself to provide to such instances the information to which it is legally   obliged;
    
	
 
    	
 
    	
 
    
	
en el entendido, sin embargo, que en   cualquier caso en que el numeral (2) anterior de esta Sección 7 se   aplique, Minera William entregará notificación escrita a GTM, con no menos de   48 horas de antelación, de la revelación y, en cualquier caso al que el numeral   (3) anterior de ésta Sección 7 se aplique, Minera William empleará sus   mejores esfuerzos para entregar notificación escrita a GTM, con no menos de   48 horas de antelación, de la revelación. Con respecto a cualquier revelación   que se haga conforme a los numerales (1) ó (2) de esta Sección 7,   solamente se revelará la información confidencial que el tercero tenga   legítima necesidad comercial de conocer, debiendo dicho tercero convenir   primero por escrito que protegerá la información confidencial para que no siga   revelándose, en la misma medida en que está obligado a hacerlo Minera William   conforme a este anexo “A”.
    	
 
    	
provided that, in any case to which   the foregoing item (2) of this Section 7 applies, Minera William   shall give not less than 48 hours prior written notice to GTM of the intended   disclosure and, in any case to which the foregoing item (3) of this   Section 7 applies, Minera William shall exercise its best efforts to   give not less than 48 hours prior written notice to the GTM of the intended disclosure.   As to any disclosure pursuant to the foregoing items (1) or (2) of   this Section 7, only such confidential information as such third party   has a legitimate business need to know shall be disclosed and such third   party shall first agree in writing to protect the confidential information   from further disclosure to the same extent as Minera William is obligated   under this Exhibit “A”.
    
	
 
    	
 
    	
 
    
	
8.         Naturaleza de la Regalía. La   Regalía es intrínseca a las Concesiones   y será vinculante y operará en beneficio de GTM y de Minera William y de sus   respectivos sucesores y cesionarios permitidos. La Regalía aquí prevista es   estrictamente pasiva y no participativa, no dando derecho a Minera William a   participar en decisión alguna, de cualquier índole que sea, sobre las Concesiones o sobre las actividades en ellas realizadas.   GTM no hace aseveración, garantía o promesa alguna de ningún tipo, expresa o   implícita, relativa a las Concesiones,   el desarrollo de las mismas o las actividades en ellas realizadas. GTM   determinará, a su solo y absoluto criterio, si se llevarán a cabo actividades   de exploración, desarrollo, producción u otras en las   Concesiones, 
    	
 
    	
8.         Nature of the Royalty. The   Royalty shall run with the Concessions,   and be binding upon and inure to the benefit of GTM and Minera William and   their respective permitted successors and permitted assigns. The Royalty   provided for herein is a strictly passive and non-participating interest and   shall not entitle Minera William to participate in any decisions whatsoever   concerning the Concessions or concerning the   operations thereon. GTM makes no representations, warranties or covenants   whatsoever, express or implied, concerning the   Concessions, the development thereof or the operations thereon.   GTM shall determine, at its sole and absolute discretion, whether or not any   exploration, development, production or other operations will be conducted on
    

 

18

 

	
así como el momento, amplitud, lugar,   alcance y método de las mismas, si las hubiere.
    	
 
    	
the   Concessions, as well as the timing, extent, location, scope and   method thereof, if any.
    
	
 
    	
 
    	
 
    
	
9.         Cesión. Minera William no   transferirá total o parcialmente su derecho a percibir la Regalía sin el   consentimiento previo y por escrito de GTM y sin primero ofrecer transferir   dicha participación a GTM términos, condiciones y precio en que pretenda   transferirla a un tercero independiente. GTM podrá ceder sus derechos y   obligaciones bajo este anexo “A” sin el consentimiento previo por escrito de   Minera William, siempre y cuando el cesionario convenga por escrito en quedar   vinculado por los términos de este anexo “A” y así lo notifique dicho   cesionario por escrito a Minera William.
    	
 
    	
9.         Assignment. Minera William   shall not fully or partially transfer its right to receive the Royalty   without the prior written consent of GTM and without first offering to   transfer such interest to GTM on the same terms, conditions and price on   which Payee intends to transfer the same to an unrelated third party. GTM may   assign its rights and obligations under this Exhibit “A” without the   prior written consent of Minera William, provided that the assignee agrees in   writing to be bound by the terms of this Exhibit “A” and so notifies in   writing to Minera William.
    
	
 
    	
 
    	
 
    
	
10.       Idiomas. Las Partes reconocen   que este anexo “A” ha sido suscrito tanto en el idioma castellano como en el   idioma inglés, y acuerdan para todos los fines legales a que haya lugar, que   la versión suscrita en idioma inglés será la versión prevaleciente y que la   versión en idioma español será considerada únicamente como una traducción   informativa de la versión en idioma inglés.
    	
 
    	
10.       Languages. The Parties   acknowledge that this Exhibit “A” has been executed in both the Spanish   language and the English language, and agree that, for all applicable legal   purposes, the version executed in the English language shall be the   controlling version and that the version in the Spanish language shall be   deemed only as a translation for information purposes only of the English   version.
    
	
 
    	
 
    	
 
    
	
11.       Resolución de Controversias.   Para toda controversia que surja entre las partes respecto a la   interpretación o ejecución del presente Anexo, o en relación con el mismo,   las partes se someten a la jurisdicción de los Juzgados Competentes en la   Ciudad de México y renuncian expresamente a cualquier otra que pudiera   corresponderles.
    	
 
    	
11.       Dispute Resolution. For every   controversy that may arise between the parties regarding the interpretation   or execution of the present Exhibit, or in connection therewith, the parties   submit to the jurisdiction of the competent Courts in Mexico City and   expressly waive any other that may correspond to them.
    

 

19loco-ex1027_237.htm

Exhibit 10.27

 

Initial FMV Options—Time Vesting Only

US Employees Only

EL POLLO LOCO HOLDINGS, INC.

2014 OMNIBUS EQUITY INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

THIS AWARD AGREEMENT (this “Award Agreement”), is made effective as of [______  __], 2016 (the “Date of Grant”), by and between El Pollo Loco Holdings, Inc., a Delaware corporation (the “Company”), and _____________(the “Participant”):

R E C I T A L S:

WHEREAS, the Company has adopted the El Pollo Loco Holdings, Inc. 2014 Omnibus Equity Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Award Agreement.  Capitalized terms used but not otherwise defined herein shall have meanings ascribed to such terms in the Plan; and

WHEREAS, the Administrator has determined that it would be in the best interests of the Company and its stockholders to grant the Option provided for herein to the Participant pursuant to the Plan and the terms set forth herein.

NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree as follows:

1.Grant of the Option.  The Company hereby grants to the Participant the right and option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, all or any part of an aggregate of [___________] shares of Common Stock (each a “Share” and collectively, the “Shares”).  The purchase price of the Shares subject to the Option shall be equal to $[____] per Share as of the Date of Grant (the “Option Price”).  The Option is intended to be a non-qualified stock option, and is not intended to be treated as an option that complies with Section 422 of the Code.

2.Vesting. The Option granted hereunder shall vest and become exercisable with the passage of time.  The Option shall vest and become exercisable in four (4) equal installments on each of the first four (4) anniversaries of the Date of Grant. Any portion of the Option which has become vested and exercisable in accordance with this section shall hereinafter be referred to as the “Vested Portion.”

3.Exercise of Option.

(a)Period of Exercise.  Subject to the provisions of the Plan and this Award Agreement, the Participant may exercise all or any part of the Vested Portion of the Option at any time prior to the earliest to occur of:

(i)the tenth (10th) anniversary of the Date of Grant; or

(ii)ninety (90) days following the date of the Participant’s termination of employment for any reason other than for Cause or due to the Participant’s death or Disability; or

1

 

(iii)six (6) months following the date of the Participant’s termination of employment due to the Participant’s death or Disability. 

The entire Option (whether vested or unvested) held by a Participant immediately prior to the cessation of the Participant’s employment shall immediately terminate upon such cessation if such cessation of employment was for Cause.

(b)Method of Exercise.

(i)Each election to exercise the Vested Portion shall be subject to the terms and conditions of the Plan and shall be in writing, signed by the Participant or by his or her executor, administrator, or permitted transferee (subject to any restrictions provided under the Plan), made pursuant to and in accordance with the terms and conditions set forth in the Plan and received by the Company at its principal offices, accompanied by payment in full as provided in the Plan or in this Award Agreement.

(ii)The Option Price may be paid by (A) the delivery of cash or check acceptable to the Administrator, including an amount to cover the minimum statutory withholding taxes with respect to such exercise, or (B) any other method, if any, approved by the Administrator, including (X by means of consideration received under any cashless exercise procedure, if any, approved by the Administrator (including the withholding of Shares otherwise issuable upon exercise) or (Y) any other form of consideration approved by the Administrator and permitted by Applicable Laws.  

(c)Notwithstanding any of the foregoing, the Company shall have the right to specify all conditions of the manner of exercise, which conditions may vary by country and which may be subject to change from time to time. Upon the Company’s determination that the Vested Portion of the Option has been validly exercised as to any of the Shares, the Company may issue certificates in the Participant’s name for such Shares.  However, the Company shall not be liable to the Participant for damages relating to any reasonable delays in issuing the certificates to such Participant, any loss of the certificates, or any mistakes or errors in the issuance of the certificates or in the certificates themselves which it promptly undertakes to correct.

(d)In the event of the Participant’s death, the Option shall remain exercisable by the Participant’s executor or administrator, or the person or persons to whom the Participant’s rights under this Award Agreement shall pass by will or by the laws of descent and distribution as the case may be, to the extent set forth in Section 3(a).  Any heir or legatee of the Participant shall take rights herein granted subject to the terms and conditions hereof.

4.Termination of Employment.

(a)General.  If the Participant’s employment is terminated for any reason, the Option shall, to the extent not then vested, terminate upon such termination of employment and the Vested Portion of the Option shall remain exercisable for the period set forth in Section 3(a) and shall thereafter terminate.

(b)For Cause.  The Option (including any Vested Portion thereof) shall terminate immediately upon the Participant’s termination of employment for Cause.

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5.Conditions to Issuance of Stock Certificates.  The Shares deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued Shares, treasury Shares or issued Shares which have then been reacquired by the Company. Such Shares shall be fully paid and nonassessable.  

6.No Right to Continued Employment.  The granting of the Option evidenced hereby and this Award Agreement shall impose no obligation on the Company or any Affiliate to continue the employment of the Participant and shall not lessen or affect the Company’s or any Affiliate’s right to terminate the employment of such Participant.

7.Legend on Certificates.  The certificates representing the Shares purchased by exercise of the Vested Portion shall be subject to such stop transfer orders and other restrictions as the Administrator reasonably deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable Federal or state laws, and the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

8.Transferability.  

(a)The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance in contravention of the foregoing shall be void and unenforceable against the Company or any Affiliate; provided, that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.  No such permitted transfer of the Option to heirs or legatees of the Participant shall be effective to bind the Company unless the Administrator shall have been furnished with written notice thereof and a copy of such evidence as the Administrator may deem necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof.  During the Participant’s lifetime, the Vested Option is exercisable only by the Participant.

(b)The Option shall not be liable for the debts, contracts or engagements of the Participant or the Participant's successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy) unless and until the Option has been exercised, and any attempted disposition thereof prior to exercise shall be null and void and of no effect, except to the extent that such disposition is permitted by Section 8(a) hereof.

9.Withholding.  Subject to Section 3(b)(ii), the Participant may be required to pay to the Company or any Affiliate and the Company shall have the right and is hereby authorized to withhold from any payment due or transfer made under the Option or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other securities or other property) of any applicable withholding taxes in respect of the Option, its exercise or any payment or transfer under or with respect to the Option or the Plan and to take 

3

 

such other action as may be necessary in the opinion of the Administrator to satisfy all obligations for the payment of such withholding taxes.  

10.Securities Laws.  The issuance of any Shares hereunder shall be subject to the Participant making or entering into such written representations, warranties and agreements as the Administrator may reasonably request in order to comply with applicable securities laws and government regulations. 

11.Notices.  Any notice necessary under this Award Agreement shall be addressed to the Company in care of its Vice President, Legal at the principal executive office of the Company and to the Participant at the address appearing in the personnel records of the Company for the Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other.  Any such notice shall be deemed effective upon receipt thereof by the addressee.

12.Governing Law/Jurisdiction. This Award Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed therein.  Any suit, action or proceeding with respect to this Agreement, or any judgment entered by any court in respect of any thereof, shall be brought in any court of competent jurisdiction in the State of Delaware, and the Company and the Participant hereby submit to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment.  The Participant and the Company hereby irrevocably waive (i) any objections which it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction in the State of Delaware, (ii) any claim that any such suit, action or proceeding brought in any such court has been brought in any inconvenient forum and (iii) any right to a jury trial. 

13.Option Subject to Plan.  By entering into this Agreement, the Participant agrees and acknowledges that the Participant has received and read a copy of the Plan as set forth on Exhibit A hereto.  The Option is subject to the Plan, as may be amended from time to time, and the terms and provisions of the Plan are hereby incorporated herein by reference.  In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

14.Section 409A.  It is intended that the terms of this Agreement be exempt from or comply with Section 409A of the Code.  If it is determined that the terms of this Agreement have been structured in a manner that would result in adverse tax treatment under Section 409A of the Code, the parties agree to cooperate in taking all reasonable measures to restructure the arrangement to minimize or avoid such adverse tax treatment without materially impairing Participant’s economic rights.

15.Signature in Counterparts.  This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

16.Amendments and Termination.  To the extent permitted by the Plan, this Agreement may be wholly or partially amended, altered or terminated at any time or from time 

4

 

to time by the Administrator or the Board, but no amendment, alteration or termination shall be made that would materially impair the rights of an Participant under the Option without such Participant’s consent. 

17.Entire Agreement  The Plan and this Agreement (including all Exhibits thereto, if any) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof. 

18.Electronic Signature; Electronic Delivery and Acceptance.  The Participant’s electronic signature of this Agreement shall have the same validity and effect as a signature affixed by hand. The Company may, in its sole discretion, decide to deliver any documents related to the Participant’s current or future participation in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

19.Waiver.  The Participant acknowledges that a waiver by the Company of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant. 

20.Severability.  The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

5

 

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

 

 

EL POLLO LOCO HOLDINGS, INC.

 

____________________________________

Name:

Title:

 

 

PARTICIPANT

 

___________________________________

 

 

6

 

EXHIBIT A

 

El Pollo Loco Holdings, Inc. 2014 Omnibus Equity Incentive Plan

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