Document:

Unassociated Document

1st AMENDMENT AND RESTATEMENT TO THE LEASE AGREEMENT

This 1st amendment and restatement of the lease agreement (hereinafter simply referred to as the “Amendment”) is entered on August 04, 2011, by and between

RHI MINERAÇÃO LTDA. (formerly denominated as Mineral – Parceiros em Mineração Ltda.)., a limited-liability company headquartered at Avenida Presidente Wilson, 210, 4o floor, room 409, Zip Code 20030-021, in the city and State of Rio de Janeiro, enrolled with National Roll of Legal Entity of Ministry of Finance (hereinafter simply referred to as “CNPJ/MF”) under no. 12.506.224/0001-59, herein duly represented by its attorney-in-fact MICHAEL CAMPBELL, American citzen, married, businessman, bearer of American passport No. 460934290, enrolled with the CPF/MF under No. 234.378.188-56, resident and domiciled at 11753 Willard Avenue, Tustin, California 92782, USA, hereinafter simply referred to as “LESSOR”; and

REGINALDO LUIZ DE ALMEIDA FERREIRA – ME, a sole proprietorship company located at Bom Jardim farm, Rodovia BR-070. Km 20, in the city of Nossa Senhora do Livramento, State of Mato Grosso, enrolled with CNPJ/MF under no. 08.838.089/0001-71; herein represented by REGINALDO LUIZ DE ALMEIDA FERREIRA, hereinafter jointly referred to as “LESSEE”;

  

LESSOR and LESSEE are each individually referred to as a “PARTY” and jointly as the “PARTIES”.

WHEREAS

	
  

	
a)

	
On April 4, 2011, the PARTIES executed the Lease Agreement (“Lease Agreement” or “Agreement”) by which the LESSOR agreed to lease to the LESSEE certain equipment and machines for the development of its activities relating to the ore extraction;

	
  

	
b)

	
Shortly after the execution of this Agreement, it is anticipated that Meserole, LLC, an investment fund with head offices at 152 West 57th Street, 54th Floor, New York, NY, USA (“Meserole”), extended a loan finance to Resource Holdings, Inc., a company with head offices at 11753 Willard Avenue, California 92782, USA (“RHI”) in the amount of USD 11,400,000.00 (eleven million and four hundred thousand US dollars) (“Funds”) for the development of its business in Brazil pursuant to a certain Note Purchase Agreement dated as of the date hereof (“Finance Agreement”).

  

 

  

 

	
  

	
c)

	
Upon closing of the Finance Agreement, pursuant to the INTERCOMPANY DEMAND NOTE (as defined in the Loan Agreement) RHI will send the Funds to the LESSOR, of which it is a controlling shareholder, to be invested in a project related to the mining activity of the LESSEE.

	
  

	
d)

	
The Funds to be sent to the LESSOR will be used to, among other things, loan funds to the LESSEE, as agreed in a loan agreement between them (“Loan Agreement”), and the purchase of equipment and machines for the development of its activities relating to the ore extraction, which will be leased to the LESSEE as provided for in the Lease Agreement;

	
  

	
e)

	
The LESSEE has a permission issued by the Departamento Nacional de Produção Mineral (“DNPM”) to explore ore at the Fazenda Bom Jardim, Rodovia BR-070. Km 20, in the city of Nossa Senhora do Livramento, State of Mato Grosso (“Farm”), and is the owner of the mines located in the Farms and registered at DNPM under no. 866.592/2007, for an area of 38.94 hectares, 866.597/2007, for an area of 50 hectares, 866.600/2007, for an area of 50 hectares, and 866.601/2007, for an area of 50 hectares (“Ore Properties”); and

	
  

	
f)

	
Based on the above, the PARTIES agree to amendment certain clauses of the Agreement as well as restate certain existing clauses.

The PARTIES hereby agree to execute the Amendment to amend and restate the Agreement which shall become effective with the following new wording:

	
1.

	
“The Subject

	
1.1.

	
LESSOR herein undertakes to lease to LESSEE the Equipment and any auxiliary equipment required to the operations, as described on Attachment I hereof, (“Equipment”), according to the provisions and conditions set forth herein, and Attachments hereto.

 

  

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1.2.

	
LESSOR represents that the leased Equipment should be available whenever required at the beginning of the operations (hereinafter simply referred to as “Start-up”), and that it holds the proper authorizations to sign this Agreement and lease the Equipment to LESSEE.

	
1.2.1.

	
The Parties herein agree that the date of the Start-up shall be the date of the beginning of the Ore Properties operation after the interruption to construct the new processing plant and install Equipment, according to the provisions under the Loan Agreement.

	
1.3.

	
LESSOR represents that the Equipment shall be delivered in perfect condition, as applicable, and when assembled they shall be in perfect operating condition.

	
1.3.1 

	
LESSEE is herein obliged to provide to LESSOR within ten (10) days of the lease, the list of any defaults found in the Equipment.  If LESSEE fails to do so, the Equipment shall be deemed in perfect condition of usage, maintenance and conservation, and LESSOR will not be able to claim any defect in the Equipment after such term.

	
1.4.

	
The use of the Equipment shall be done only in the terms of this Agreement, and in a careful and proper manner for its functions, maintenance and conservation, and shall comply with any manufacturer’s manuals or instructions and conform to all national, state and municipal laws, whether criminal law and other laws, ordinance and regulations in any way relating to the Equipment. The possession, use or maintenance of the Equipment may be operated by competent duly qualified personnel, under LESSEE’s entirely responsibility.

 

2. LESSEE OBLIGATIONS

	
2.1.

	
The LESSEE undertakes:

	
a)

	
To pay timely the lease amounts as agreed on Attachment II hereof.

	
b)

	
Insure, preserve, and maintain on its own account the Equipment in perfect condition during the term of this Agreement, except for the natural wear and tear arising from the Equipment use and operation of the Equipment.

	
c)

	
The Equipment shall not be used for purposes other than the intended purposes, and different from industry standards, or causing the deterioration and damages to Equipment, excluding those arising from the regular use.

  

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d)

	
Allow the access to LESSOR’s representatives during business hours, for inspection according to the Clause 8.

	
e)

	
Inform LESSOR of any and all trespass by third Parties.

	
f)

	
Return the Equipment at the termination of the lease in the same condition as they were received, and no compensation of the natural wear and tear is applicable which arises from the regular use of the Equipment.

	
g)

	
No change shall be made to the Equipment structure and components thereof, without LESSOR’s prior authorization.

	
  

	
a.         LESSEE is not entitled to receive, reimburse or withhold any improvement required or useful to the performance of the Equipment, with or without LESSOR’s express consent.

	
h)

	
Being liable for any damage or loss caused to LESSOR or third Parties resulting from its representatives and/or employee’s acts or omission arising to the lease.

	
i)

	
Preserve and hold LESSOR exempt from any claims, demands, complaints, representations whatsoever arising from the action or omission thereof, or subcontracted action or omission.

	
j)

	
It shall hold LESSOR harmless from any and all indemnity claim for losses and damages or any losses suffered by LESSEE in respect to this Agreement, regardless of whether proper and sufficient insurance had contracted for such circumstances.

	
k)

	
To be liable for the correct use, keeping and conservation of Equipment, materials and tools, provided by LESSOR, as well as reimbursing LESSEE for occasional loss, damage, deterioration or depreciation if they are not related to regular performance of this Agreement.

	
l)

	
Contract for insurance according to the Clause 7 of this Agreement.

	
m)

	
Except upon LESSOR’s prior and express consent (subeject to LESSOR’s obligations under Finance Agreement), the assets in guarantee of this Agreement should not be disposed, leased, sublet, or transferred under any title.

  

  

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n)

	
Bearing with replacement costs regarding the Equipment, tools, spare parts, material and accessories for the Equipment and expenses of any repair, which shall be performed rapidly and efficiently.

	
  

	
a.    The replacement and repair costs mentioned above, comprise all the due expenses, from the spare parts, accessories and materials acquisition up to the installation and assembly in original Equipment.

	
  

	
b.    Equipment repair or maintenance shall be made by specialized and qualified companies or professionals which names and respective qualifications shall be submitted to LESSOR for prior approval.

	
o)

	
Submit monthly (by the 20th of previous month), to LESSOR, a detailed operating budget prepared in accordance with BRAZILIAN GAAP (as defined in the Loan Agreement). In addition, submit monthly, to LESSOR an actual statement, in form and substance acceptable to the LESSOR, also prepared in accordance with BRAZILIAN GAAP, for the two previous months, describing the use of proceeds by the LESSEE.

	
2.2

	
LESSEE is liable for paying all obligations and burdens related to the Equipment including, but not limited to, the maintenance, filling thereof among other costs related to Equipment’s use.  LESSEE is liable also for all burdens and labor obligations related to any LESSEE employee or any third Party operating the Equipment.  Therefore, there is no labor bond between such people and LESSOR.

	
2.3

	
LESSEE shall have no right, title or interest in relation to the ownership of the Equipment, being forbidden to LESSEE to sell and/or transfer the Equipment for any reason.

	
2.4

	
All Equipment shall have GPS tracking device and shall not leave premises without LESSOR or its designee’s consent. The LESSOR shall hire, at the expense of the LESSEE, a company that renders tracking services to monitor the EQUIPMENT at all times and ensure the fulfilment of the obligation provided in this clause 2.4.

 

	
3.

	
THE LESSOR OBLIGATIONS

	
3.1.

	
The LESSOR undertakes:

  

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a)

	
To ensure the Equipment is free and clear of any burden, lien and/or restriction whatsoever.

	
b)

	
Ensure the Equipment possession and use by LESSEE of the Equipment during the validity term of this Agreement.

	
c)

	
Supply the technical instructions to LESSEE related to the Equipment operation for the proper use thereof.

 

	
4.

	
COMMITMENT

	
4.1.

	
At the end of the second year of the Agreement validity, if LESSEE has (i) fulfilled all the obligations herein, and (ii) the accounts and financial statements were examined by audit and comply with the generally accepted accounting principles of the United State of America (USGAAP), and LESSOR with LESSEE support has concluded the audit satisfactory to the requirements of U.S. Securities and Exchange Commission, and if there is no outstanding obligations under the Finance Agreement, LESSOR undertakes to contribute with the Equipment herein granted in consideration for the receipt of thirty percent (30%) share on all ore activities performed in Ore Properties, from the ore extraction, waste processing, and cancel the loan granted by the Loan Agreement.  If the Parties fail to complete the audit in time to allow LESSOR to cancel the loan, and contribute with Equipment, the Parties herein agree to extend the term under this Clause until the conclusion of the qualified audit.

	
4.1.1

	
If there are outstanding obligations under the Finance Agreement, the contribution of the Equipment may be only made with the prior and written consent of Meserole.

	
4.1.2

	
The PARTIES acknowledge and agree that the responsibilities and approval/discretionary rights of LESSOR hereunder are subject to LESSOR’s obligations under the Finance Agreement

	
4.2.

	
Timely, the Parties should evaluate in good faith the most efficient form and structure for both Parties to be adopted to ensure the feasibility of the goal provided for under item 4.1.  Generally, the Parties agree to organize a new company pursuant the laws of Brazil, and perform the following contributions to the new company:

  

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a)

	
LESSEE shall contribute/ transfer to the new company, all the ore activities in Ore Properties, waste processing equipment and machinery to exploit, process, package, research and develop the Ore Properties, exempted from any burdens prior to the Company, and LESSOR is entitled to thirty percent (30%) of the net income of all ore activities performed in Ore Properties, from ore extraction, waste processing and all exploitation equipment.

	
b)

	
LESSOR shall cancel all debt arising from the loan, and contribute equipment and machinery under the lease agreement, for ore processing, which title shall be owned by the new company.

 

	
5.

	
THE TERM

	
5.1.

	
The lease term shall be ten (10) years from this date, and should be extended automatically for one (1) year period, except, if any Party expresses in writing the intent on the non-renewal of the Agreement at least ninety (90) days prior to the termination date, or (ii) if the Parties agree otherwise.

 

	
6.

	
PRICE

	
6.1.

	
The monthly lease amount is provided for in Attachment II hereof.  The rental shall be payable by LESSEE monthly up to the fifth (5th) day of the month subsequent to the lease.

	
6.2.

	
LESSEE should make prepayments on its own discretion on the amounts provided for under Attachment II hereof.

	
6.3.

	
Any deterioration, appreciation or devaluation of Equipment, although with no LESSEE fault should not allow or cause the reduction on the monthly fixed rental agreed by the PARTIES  in this Agreement.

	
6.4.

	
Should LESSEE fail to pay the rent established above on the maturity date, the amount owed and not paid shall be adjusted and shall accrue a pecuniary default fine and interest on arrears, calculated from the date of noncompliance until the date of actual payment, without prejudice to applicable legal remedies that may be taken by LESSOR against LESSEE.

  

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7.

	
INSURANCE

	
7.1.

	
LESSEE on its own account shall arrange the contracting of the damages insurance required for the fulfillment of this Agreement according to the Brazilian Laws and intended to cover the Equipment, including all and any movement and third Parties on LESSOR service, taking into account the amount required for the full replacement of the Equipment, also the civil liability insurance for damages to be caused to third Parties by the operation thereof, as personal damages (such as body injury, death) and material or moral damages.  The Parties agree they shall work jointly to find the proper insurance with all conditions required to cover totally LESSEE against any damage, losses and third Parties.

 

	
8.

	
INSPECTION

	
8.1.

	
LESSOR may, with a 5 business days prior notice to LESSEE, at its sole discretion, have the right to inspect the Equipment to check the proper use and the Equipment status. The inspection shall be made by LESSOR’s representative in charge for checking the Equipment.

	
8.2.

	
The inspection shall not imply in any agreement with eventual irregularities caused by LESSEE, and the inspection total or partial action or omission should not exempt LESSEE from the total liability for the Equipment.

	
8.3.

	
The inspection shall take place during normal working hours of a business day, under the supervision of LESSEE or its representative, being LESSEE obliged to correct any reported irregularities in the Equipment resulting from acts or facts caused by LESSEE.

	
8.4.

	
LESSEE shall ensure the general, unlimited and unrestricted access to the Mineral Properties and operations maintained by LESSEE in Ore Properties of LESSOR representative to check the progress, costs and outcomes of the daily ore production of LESSEE, also granting access to LESSEE’s accountancy including the taxes paid by LESSEE and whatever is required to determine the Production Net Income.

 

  

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8.4.1

	
Production Net Income is the income from the ore production in Ore Properties after the COSTS AND EXPENSES assessed and payable on the total of ore production are calculated and deducted. COST AND EXPENSES means all operating costs, expenses, taxes, fess and charges associated with the Ore Properties.

 

	
9.

	
GUARANTEE

	
9.1.

	
The following guarantee shall be established on LESSOR’s behalf on the date the Agreement is signed to ensure the payment of any obligation arising from this Agreement such as rentals, interests, fines and collection expenses.

	
9.1.1

	
Second priority security interest (subject to  Meserole’s first priority security interest) on the ore deposited in the waste tank of Ore Properties identified by the following geographic coordinates 15o41’30,51” and 56o21’06,84”, located at the sideways of the plant where the ore should be processed, with approximately 350 x 300 m extension, and 28 meters in height.

	
9.1.2

	
Second priority security interest (subject to Meserole’s first priority security interest) of thirty percent (30%) of the Production Net Income of gold extracted from Ore Properties, from the date of Lease beginning.

	
9.1.3

	
If the amounts received by RHI through the remittance of interest (as described in the Loan Agreement) and the lease payments under this Agreement are not enough to allow RHI to comply with its obligations under the Finance Agreement, the LESSEE further irrevocably and irreversibly undertakes, in accordance with art. 818 et seq of Law 10,406. of January 10, 2002 (“Brazilian Civil Code”), to pay by way of LESSEE’s share of revenue from Ore Properties (as provided in Loan Agreement) any such amount due and owing by or otherwise payable by RHI to Meserole, under the Finance Agreement, and expressly waives the benefits of Articles 366, 827 and 835 to 838, of the Brazilian Civil Code.

	
9.2.

	
All guarantees established herein should follow the provisions under the law to the formalization, and the Parties undertake to take all measures and sign any document required to the formalization up to the date of the signature hereof and LESSOR shall not make Equipment available if the guarantees are not previously formalized.

 

  

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9.3.

	
In the event of any default of LESSEE or if LESSEE be released from the total payment of the Loan, LESSEE shall grant unconditionally and irrevocably to LESSOR the irreversible and unconditional access to the assets under the guarantee, and shall allow and contribute with LESSOR to totally satisfy the credit held thereby.

	
9.4.

	
Except the burdens established herein on LESSOR behalf (and on Meserole’s behalf), LESSEE represents the assets mentioned under this Clause 9 are under peaceful and undisturbed possession free and released from any burdens, including tax.

	
9.5.

	
The total payment of rental, expenses, etc being made by LESSEE, the guarantees set forth under Clause 9.1 shall be automatically released and the guarantees shall be terminated, therefore LESSOR undertakes to take all required measures before LESSEE to perform the release of said guarantees.

	
9.6.

	
LESSOR may provide for, at any time, regardless of sending notice to LESSEE, any registrations or filings necessary or desirable to protect or comply, as the case may be, its security interest in the Equipment. The LESSEE shall reimburse the LESSOR for any such costs and expenses within 5 days from the receipt of a notice to that effect.

 

10. EQUIPMENT LIEN

	
10.1.

	
If LESSEE intends to dispose of the Equipment under this instrument, LESSEE has the preference on the acquisition, under the same conditions and prices of third Parties, which shall be notified thereon in writing at least in fifteen (15) days.  If the term ends and LESSEE has not expressed an interest in making the acquisition, the Equipment shall be disposed to the interested Party.

 

	
11.

	
TERMINATION

	
11.1.

	
This Agreement should be terminated immediately, upon written notice on the occurrence of one or more events hereunder, when the Equipment shall be immediately returned by LESSEE to LESSOR:

	
a)

	
Any Party if the other breaches the contractual obligations and fails to cure said breach within ten (10) days from the pertaining notice;

  

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b)

	
Any Party, if the other Party is ordered to undergo the court-supervised bankruptcy and such reorganization is accepted, or has a liquidation or dissolution requested;

	
c)

	
By the LESSOR at any time upon at least ten (10) days prior notice to LESSEE;

	
d)

	
By LESSOR, if the event of termination of the Loan Agreement, for any reason whatsoever, in accordance with its terms;

	
e)

	
By LESSOR if LESSEE is in default of rental payments under the provisions of the Attachment II.

	
f)

	
By LESSOR, if the LESSEE assigns, totally or partially, its obligations under this Agreement, without previous and express consent of the LESSOR or its designee;

	
g)

	
By LESSOR, if LESSEE assigns, leases or transfers the Equipment to third Parties without the written consent of the LESSOR;

	
h)

	
By LESSOR, if LESSEE disobeys any decision of administrative or judicial authority that may cause a relevant adverse impact on the Lease, at the discretion of the LESSOR;

	
i)

	
By LESSOR, if LESSEE does not renovate, cancel, revoke or suspend its authorizations, concessions and licenses, required to the exercise of its activities.

	
11.1.1

	
If any of the events listed in clause 11.1 above occurs, LESSOR may not demand the early termination of this Agreement without the prior and written consent of Meserole.

	
11.2

	
LESSEE on its own discretion should require the termination of this Agreement, if LESSEE is not in default of its obligations herein and the Loan Agreement upon LESSOR’s discretion and LESSOR fails to make the disbursement related to the loan installments as provided for under Loan Agreement, provided there are no outstanding amount (or amounts due and not paid by RHI to Meserole) arising from the Finance Agreement. In this case, the Agreement may only be terminated with the prior and written consent of Meserole.

 

  

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11.2.1

	
Notwithstanding the foregoing, in the event that the LESSEE is not able to early terminate the Agreement, LESSEE reserves the right to carry out any judicial or extrajudicial measures against the LESSOR seeking the fulfillment of its obligations under this Agreement.

	
11.3

	
In any such event justifying this Agreement termination as provided for under Clause 11, the defaulting Party shall have thirty (30) days term from the date of being properly notified by the other Party, pursuant the Clause 12, to cure such default.  Such term being elapsed and default Party has not cured the default, and upon notifying Party discretion, this Agreement shall be automatically terminated under the provisions of this Clause 11 and Clause 12 below.

 

	
12.

	
FINES

	
12.1.

	
If any Party, LESSEE or LESSOR fails to comply with any obligations arising herein, the defaulting Party is subject to the payment of the fine, non compensatory, corresponding to twenty percent (20%) of the rental amount of the  month immediately prior to the occurrence of the beginning of the breach of contractual obligation.

	
  

	
 

	
12.2.

	
In any termination and/or at the Agreement termination, LESSEE is obliged to return immediately on its own account, irrespective of notice or prior notice, all Equipment to LESSOR, under the penalty of paying a monthly fine, non-compensatory, corresponding to twenty percent (20%) of the monthly rental amount, to be assessed on the termination date, based on pro rata die monthly rental amount of the last month of the Agreement.

	
12.3.

	
The penalties set forth under this Clause  has no compensatory nature and do not exclude any other provided by law or this Agreement, nor is LESSEE liable for losses and damages caused to LESSOR in view of the breach of any provision or Clause of this Agreement, or the improper use of Equipment.

	
12.4.

	
LESSOR is ensured the right of return in respect to LESSEE if LESSOR is obliged to repair any damage caused by LESSEE to third Parties for an event related to the Equipment that occurred during the period LESSEE is or was on the possession thereof.

	
12.4.1

	
The effectively obtained by third Parties in court or elsewhere shall be subject to the right of return added from all accessories, such as court and extra judicial expenses, lawyer’s fees among others.

  

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13.

	
REPRESENTATIONS AND WARRANTIES

	
13.1

	
LESSEE represents and warrants to the LESSOR that as of the date of this Agreement and on any other date when such representations and warranties are required to be made or deemed to have been made under this Agreement (or any amendment thereto) or any other relevant agreement, the following:

	
a)

	
it is a company validly organized and existing under the laws of Brazil, is duly qualified to do business and is in good standing;

	
b)

	
it has obtained all necessary corporate authorizations to execute and enter into this Agreement;

	
c)

	
has full power, capacity and authority, under the laws and by its instrument of incorporation to enter into this Agreement, to carry out its obligations, whether financial or not, and to comply with the clauses of this Agreement;

	
d)

	
the execution of this Agreement and the exercise of its rights and performance of its obligations hereunder will not violate any provision of any existing law or the articles of association of the LESSEE or any decree of any court or arbitrator or of any contractual undertaking to which the LESSEE is a Party or which is binding upon the LESSEE;

	
e)

	
has lawful, good and valid ownership, license and authorization and all necessary assets for the performance of its activities; and

	
f)

	
all information given to the LESSOR regarding the performance of the obligations of this Agreement are complete and true in all aspects, and there are no relevant information that have not been made available to the LESSOR.

 

14. LOSSES AND DAMAGES

	
14.1.

	
Excluded losses or damages attributable to negligent act or willful misconduct of LESSOR, LESSEE hereby assumes and shall bear the entire risk of losses and damages to the Equipment from any and every cause whatsoever. No loss or damage to the Equipment or any part thereof shall impair any obligation of LESSEE under this Agreement which shall continue in full force and effect through the term of this lease.

  

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14.2

	
In the event of losses or damages of any kind whatever to the Equipment, LESSEE shall, after sending the respective notice to LESSOR:

	
a)

	
Place the same in good repair, reestablishing its good usage conditions, with the same parts of equal standards and purchased before the same relevant manufacture; or

	
b)

	
Replace the lost or damaged Equipment with new, identical and same standard equipments; or

	
c)

	
Pay immediately to LESSOR the replacement cost of the lost or damaged Equipment, if LESSOR so prefers and counter-notifies LESSOR in such way, as soon as being notified by LESSOR of such replacement.

 

15. DISTRIBUTIONS

	
15.1

	
The LESSEE shall grant the LESSOR full-time, online and real time access to the BORROWERS’s AUTHORIZED BANK ACCOUNT (as defined in the Loan Agreement) allowing the LESSOR to monitor all bank transactions. The LESSEE will not make any expenditures and or transfer any funds outside of the normal course of business, unless the expenditures and transfers are pre-approved in advance by both Parties (subject to LESSOR’s obligations under the Finance Agreement).

	
15.1.1

	
The BORROWER’S AUTHORIZED BANK ACCOUNT (as defined in the Loan Agreement) shall be opened and operating (a) within 60 (sixty) days counted from this date; or (b) in the date that the first amount to be deposited in the mentioned account is due, whichever occurs first.

	
15.1.2

	
The LESSEE undertakes not to open any bank account to conduct its business with the ORE PROPERTIES, except for the BORROWER’S AUTHORIZED BANK ACCOUNT.

	
15.2

	
Each buyer or payer of gold shall be irrevocably instructed to direct all the proceed from the sale of gold mined on the Ore Properties to the CLEARING ACCOUNT (as defined in the Loan Agreement). All the proceed deposited into the CLEARING ACCOUNT (as defined in the Loan Agreement) will be transferred solely and exclusively by Meserole (or whomever Meserole expressly indicates), as follow:

  

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a)

	
Seventy percent (70%) shall be deposited into the BORROWER’s AUTHORIZED BANK ACCOUNT (as defined in the Loan Agreement) of which: (i) forty percent (40%) will be allocated to pay the COST AND EXPENSES; and (ii) the remaining thirty percent (30%) will be allocated as LESSEE’s profit. Notwithstanding the above, if the amount described in item (i) above is not enough to settle the full amount of the COST AND EXPENSES, the PARTIES hereby agree that the amount deposited in the BORROWER’s AUTHORIZED BANK ACCOUNT and the amount deposited in SPECIFIED ACCOUNT (as defined in the Loan Agreement) will be used, equally, to settle the outstanding amount of COST AND EXPENSES;

	
  

	
b)

	
Thirty percent (30%) shall be deposited in the SPECIFIED ACCOUNT, and applied 20% (twenty percent) of of the PRODUCTION NET INCOME toward the payment due on and in accordance with the Loan Agreementt between the PARTIES, and 30% (thirty percent) of the PRODUCTION NET INCOME towards the payment due on and in accordance with this Agreement; and

	
  

	
c)

	
The distribution amount described in items (a) and (b) above will be adjusted every 3 (three) months and the distribution percentage will be changed  by LESSOR, upon approval by Meserole, taking into account the actual percentage of the excess or deficit of the COST AND EXPENSES, as the case may be, for this 3 (three) month period, and reflected in the gold sales invoice to the gold buyer.

	
15.2.1

	
Within 10 (ten) days from the end of each month, the accounting records of the previous month will be agreed upon by both Parties and closed, and any excess or deficit of COSTS AND EXPENSES of the mining operation will be distributed to/collected from the Parties. If there is a deficit, the amount equivalent to 50% thereof shall be deducted from the distribution of the subsequent month to the Parties, and, if there is an excess, an amount equivalent to 50% of such excess shall be distributed to each Party in the month following the distribution.

 

  

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15.3

	
Each party shall have the choice of receiving their profits remunerated in gold or cash. If the LESSOR chooses payment in gold, the amount to be delivered by the LESSEE to the LESSOR, shall be accrued based on the closing price of gold from the previous day, on an index internationally accepted for definition of the daily price of gold.

	
15.4

	
Any payment in gold shall be made upon delivery by the LESSEE to the LESSOR at the Ore Property and shall be deemed delivered upon evidence of receipt issued by the LESSOR to the LESSEE, on the delivery date.

	
15.5

	
The LESSOR shall be responsible for any and all transportation and security expenses to transport the gold from the Ore Properties to its designation.

 

16. CERTAIN REMEDIES

	
16.1

	
The amounts received by LESSOR under the Loan Agreeemnt and the amount of lease payments arising from the Lease Agreement, will be remitted to RHI in order to enable the repayment of Funds to Meserole under the Finance Agreement (as described in Whereas b above) and will be subject to a pledge to Meserole.  In the event (a) the amounts received by RHI are not enough to allow RHI to comply with its obligations under the Finance Agreement; or (b) as a result of a disbursement under this Agreement, RHI will not have financial conditions at, its discretion, to comply with its obligations under the Finance Agreement, then:

	
a)

	
Additional disbursements under the Loan Agreement to LESSEE will be suspended until RHI is able to meet its loan obligations under the Finance Agreement and pay any amounts, including default amounts and or additional interest or penalty payments owed by RHI to Meserole.

	
b)

	
the LESSEE will forfeit any profits payment it is owed from the mining operation and direct all or a portion of to RHI, which is equal to the amount that RHI is short on their obligations under the Finance Agreement, depositing them in the SPECIFIED ACCOUNT (as defined in the Loan Agreement).

	
16.1.1.

	
Any amount that LESSEE makes available from its portion of profits and or an amount derived from processing tailings, will be accrued with interest at a rate of 10% annually and owed to LESSEE and paid back from RHI’s profits (arising from the rent established in this Agreement and of the payments under the Loan Agreement) only at the time that RHI is current with its debt obligations to Meserole and has sufficient capital above its minimal operating expenses.

  

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16.1.2.

	
For the purposes of Clause 16.1.1, the determination of the capacity and financial condition of RHI to make payments present and future under the Finance Agreement will be done by Meserole, in accordance with the terms of the Finance Agreement, as it’s reasonable discretion, and will be conclusive and binding among the PARTIES.

 

17. GENERAL PROVISIONS

	
17.1.

	
LESSEE or LESSOR’s omission in requiring in one or more events, the total fulfillment of the contractual obligations or performing any right should not be a waiver or novation whatsoever.

	
17.2.

	
This Agreement is the total understanding between the Parties in respect to the object thereof, and succeeds all understanding and previous agreement, oral or written, between the Parties.  Any change or amendment shall be effective if agreed in writing, in an instrument properly singed by legal representatives of each Party.

	
17.3.

	
The rights and obligations under this Agreement should be assigned only to third Party upon the other Party’s prior written authorization.  LESSOR is herein authorized to assign this Agreement to other companies in its economic group, upon a simple notice to the other Party in such event; the assignor shall remain jointly liable for the obligations of the affiliate or associate under this Agreement.

	
17.4.

	
LESSEE is herein prohibited from subcontracting in whole or in Party this Agreement subject except if the subcontracting is previously and expressly authorized in writing by LESSOR.

	
17.5.

	
For the purposes of this Agreement, any notice, authorization, or requirement shall be in writing, and shall be deemed as performed, when delivered personally, or two (2) days after transmitted by fax (with transmission evidence) or three (3) days after sending the letter by international courier service to the address informed hereunder:

If addressed to LESSOR:

Address:  Av. Presidente Wilson, 231 - 21o andar

20030-021 - Rio de Janeiro  RJ - BRAZIL

Attn:  Alexandre Bittencourt Calmon

Veirano Advogados

  

17

  

   

If addressed to LESSEE:

Address:  Av. Rubens de Mendonça, 2254, Ed. American Business Center, sala 604, Jardim Aclimação, Cuiabá – MT – CEP 78050-000

Attn:  Raquel Cristina Rockenbach Bleich

Sole Paragraph.  The notices addresses should be changed, which changes shall be effective only when the other Party has been notified on such change as provided for in the Clause 17.5 above.

	
17.6.

	
This Agreement is governed by the laws of the Federative Republic of Brazil.

	
17.7.

	
The Parties herein elect the Courts of Cuiabá, State of Mato Grosso, to solve any conflicts and controversies arising from the interpretation or performance of this Agreement excluding any other the most privileged it might be.

	
17.8

	
This agreement constitutes an extrajudicial enforcement instrument according to Brazilian Civil Procedure Code.

	
17.9

	
This agreement is irrevocable and shall bind the Parties and inure to the benefit of their relevant successors and assignees for any reason;

	
17.10

	
The Parties shall give any other statements, perform any other acts and execute any other documents as may be required by the other Party to give effect to the agreement and to protect their respective rights there under.”

	
1.

	
The PARTIES acknowledge that the Agreement shall remain unchanged in relation to the clauses that have not been expressly amended by this Amendment.

	
2.

	
No failure to exercise, nor any delay in exercising any right or remedy under this Agreement shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.

	
3.

	
If, at any time, any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

  

18

  

 

	
4.

	
This Amendment constitutes irrevocable and irreversible obligations of the PARTIES e and shall be also binding on their respective successors.

	
5.

	
This Amendment will be governed by Brazilian laws. The PARTIES hereby elect the courts of the City of Cuiabá, State of Mato Grosso, as competent to judge any lawsuit or proceeding aiming at resolving any dispute or controversy arising from this Amendment.

In witness whereof the PARTIES sign this agreement in 03 (three) counterparts of the same text and form in the presence of two witnesses.

Cuiabá (MT), August 04, 2011.

  
/s/ Michael B. Campbell

RHI MINERAÇÃO LTDA.

Name: MICHAEL CAMPBELL

Title: Attorney-in-fact

 

   

/s/ Reginaldo Luiz De Almeida Ferreira

REGINALDO LUIZ DE ALMEIDA FERREIRA – ME

Name: REGINALDO LUIZ DE ALMEIDA FERREIRA

Title: Owner

	
Witnesses:

	  	  
	  	  	  
	
1.          /s/ Raquel Cristina Bleich               

	  	
2.         /s/ Cristiano Ruy                 

	
Name:  Raquel Cristina Bleich 

	  	
Name: Cristiano Ruy

	
RG:

	  	
RG:

	
CPF:

	  	
CPF:

 

  

19

  

  

Attachment I – Equipment

	
Equipment 

	     	
Manufacturer

	     	
Quantity

	 	 	
Unit Price (R$)

	 	 	
Total Value (R$)

	 
	
Excavator 460 Blc

	 	
VOLVO

	 	 	1	 	 	R$	 960,000	 	 	R$	 960,000	 
	
Excavator 360 Blc

	 	
VOLVO

	 	 	2	 	 	R$	 790,000	 	 	R$	 1,580,000	 
	
Loader L60

	 	
VOLVO

	 	 	3	 	 	R$	 370,000	 	 	R$	 1,110,000	 
	
Excavator Trade-In

	 	
VOLVO

	 	 	1	 	 	R$	(620,000	)	 	R$	(620,000	)
	
Tractor 2831

	 	
MERCEDES BENZ 2831

	 	 	12	 	 	R$	 279,000	 	 	R$	 3,348,000	 
	
Dump Bed

	 	
GF

	 	 	12	 	 	R$	 30,000	 	 	R$	 360,000	 
	
Hammer Mill - 86

	 	
AURI

	 	 	3	 	 	R$	 70,000	 	 	R$	 210,000	 
	
Ball Mill - 6 metors

	 	
HIDRO

	 	 	2	 	 	R$	 600,000	 	 	R$	 1,200,000	 
	
Centrifuge

	 	
FAMAG

	 	 	12	 	 	R$	 15,000	 	 	R$	 180,000	 
	
Ford Ranger Pick-up

	 	
FORD

	 	 	1	 	 	R$	 100,000	 	 	R$	 100,000	 
	
TOTAL INVESTMENT:

	 	  	 	 	 	 	 	 	 	 	 	R$	 8,428,000	 
	  	 	  	 	 	 	 	 	
Exchange Rate

	 	 	 	 	 
	  	 	  	 	
USD

	 	 	
(July 29, 2011)

	 	 	
BRL

	 
	
Total Money Available for Equipment Purchases

	 	  	 	$	5,368,824	 	 	
1.00 to 1.57

	 	 	R$	8,429,054	 
	
Available for purchase expenses

	 	  	 	$	671	 	 	 	 	 	 	R$	 1,054	 

 

  

20

  

Attachment II – LEASE PRICE

1. LESSEE shall pay monthly thirty percent (30%) on the PRODUCTION NET INCOME to LESSOR on the Equipment rental as obtained from ORE PROPERTIES.

2.         The rentals shall be paid up to the 5th business day of each month by LESSEE, in REAIS or gold, irrespective any collection from LESSOR.

2.1.      In any rental payment in gold, the  amount to be delivered by LESSEE to LESSOR shall be determined based on the ore (gold) closing price on the day prior to the payment of the standard index internationally accepted for the definition of the daily price of the ore (gold).

2.2       The rental payment in gold should be made on the delivery of the ore by LESSEE to LESSOR, to be made available by LESSEE to LESSOR at LESSEE operation place to be confirmed by LESSEE toLESSOR.  The ore shall be deemed delivered on any evidence of the receipt to be issued by LESSOR to LESSEE on the delivery date, which is an evidence of the settlement of the due interests installment.

2.3.      LESSEE is liable for arranging and bears with the ore transportation expenses from LESSEE operation place to be confirmed thereby to LESSOR, and all shall bear the costs related thereon. .

2.4.      The amount of any interests’ payment in REAIS shall be deposited in LESSOR current account to be indicated to LESSEE. .

  

21Unassociated Document

1st AMENDMENT AND RESTATEMENT TO THE LOAN AGREEMENT

This 1st amendment and restatement of the loan agreement (hereinafter simply referred to as the “Amendment”) is entered on August 04, 2011, by and between

RHI MINERAÇÃO LTDA. (formerly denominated as Mineral – Parceiros em Mineração Ltda.)., a limited-liability company headquartered at Avenida Presidente Wilson, 210, 4o floor, room 409, Zip Code 20030-021, in the city and State of Rio de Janeiro, enrolled with National Roll of Legal Entity of Ministry of Finance (hereinafter simply referred to as “CNPJ/MF”) under no. 12.506.224/0001-59, herein duly represented by its attorney-in-fact MICHAEL CAMPBELL, American citzen, married, businessman, bearer of American passport No. 460934290, enrolled with the CPF/MF under No. 234.378.188-56, resident and domiciled at 11753 Willard Avenue, Tustin, California 92782, USA, hereinafter simply referred to as “CREDITOR”; and

REGINALDO LUIZ DE ALMEIDA FERREIRA – ME, a sole proprietorship company located at Bom Jardim farm, Rodovia BR-070. Km 20, in the city of Nossa Senhora do Livramento, State of Mato Grosso, enrolled with CNPJ/MF under no. 08.838.089/0001-71; herein represented by REGINALDO LUIZ DE ALMEIDA FERREIRA, hereinafter jointly referred to as “BORROWER”;

  

CREDITOR and BORROWER are each individually referred to as a “PARTY” and jointly as the “PARTIES”.

WHEREAS

	
  

	
a)

	
On April 4, 2011, the PARTIES executed the Loan Agreement (“Loan Agreement” or “Agreement”) by which the CREDITOR lent to the BORROWER the amount equivalent in REAIS to US$8,631,176.00 (eight million six hundred thirty-one thousand one hundred seventy-six US dollars);

	
  

	
b)

	
Shortly after the execution of this Agreement, it is anticipated that Meserole, LLC, an investment fund with head offices at 152 West 57th Street, 54th Floor, New York, NY, USA (“Meserole”), will extend a loan finance to Resource Holdings, Inc., a company with head offices at 11753 Willard Avenue, California 92782, USA (“RHI”) in the amount of USD 11,400,000.00 (eleven million and four hundred thousand US dollars) (“Funds”) for the development of its business in Brazil pursuant to a certain Note Purchase Agreement dated as of the date hereof (“Finance Agreement”).

  

 

  

	
  

	
c)

	
Upon closing of the Finance Agreement, pursuant to the INTERCOMPANY DEMAND NOTE, RHI will send certain amounts of the Funds to the CREDITOR, of which it is a controlling shareholder, to be invested in a project related to the mining activity of the BORROWER.

	
  

	
d)

	
The Funds to be sent to the CREDITOR will be used to, among other things, loan funds to the BORROWER, as agreed in the Agreement, and for the purchase of equipment and machines for the development of its activities relating to the ore extraction, which will be leased to the BORROWER through a lease agreement of equipment dated as of the date hereof (“Lease Agreement”);

	
  

	
e)

	
The BORROWER has a permission issued by the Departamento Nacional de Produção Mineral (“DNPM”) to explore ore at the Fazenda Bom Jardim, Rodovia BR-070. Km 20, in the city of Nossa Senhora do Livramento, State of Mato Grosso (“Farm”), and is the owner of the mines located in the Farms and registered at DNPM under no. 866.592/2007, for an area of 38.94 hectares, 866.597/2007, for an area of 50 hectares, 866.600/2007, for an area of 50 hectares, and 866.601/2007, for an area of 50 hectares; and

	
  

	
f)

	
Based on the above, the PARTIES agree to amendment certain clauses of the Agreement as well as restate certain existing clauses.

The PARTIES hereby agree to execute the Amendment to amend and restate the Agreement which shall become effective with the following new wording:

	
  

	
1.

	
“Definitions

	
  

	
a)

	
BORROWER’S AUTHORIZED BANK ACCOUNT means the operating bank account that will be used by the BORROWER to conduct its business related to the ORE PROPERTIES and shall be opened and operating (a) within 5 (five) BUSINESS DAY counted from this date; or (b) in the date that the first amount to be deposited in the mentioned account is due, whichever occurs first;

	
  

	
b)

	
“BRAZILIAN GAAP” means the accounting principles generally accepted in Brazil, based on the Law No. 6,404 of December 15, 1976, as amended, on the rules and normative standards issued by the Brazilian Securities Commission, when applicable, and in accordance with the rules and principles of the Brazilian Institute of Independent Auditors

  

- 2 -

  

	
  

	
c)

	
BUSINESS DAY means any day when the Banks in Rio de Janeiro (Brazil) are open for the operations provided for herein.

	
  

	
d)

	
CIVIL CODE means Law No. 10,406 of January 15, 2002, as amended;

	
  

	
e)

	
CLEARING ACCOUNT means the bank account of the BORROWER and controlled by Meserole, where the payments of the proceeds from the sale of gold mined on the ORE PROPERTIES will be concentrated and shall be opened and operating (a) within 5 (five) BUSINESS DAY counted from this date; or (b) in the date that the first amount to be deposited in the mentioned account is due, whichever occurs first.

	
  

	
f)

	
COSTS AND EXPENSES means all operating costs, expenses, taxes, fees and charges associated with  ORE PROPERTIES;

	
  

	
g)

	
DATE OF THE BEGINNING OF INTEREST PAYMENTS means the first date of the production of any ore in MINERAL PROPERTIES or 90 (ninety) days after the DISBURSEMENT DATE, whichever first occurs.

	
  

	
h)

	
INTERCOMPANY DEMAND NOTE means that certain demand note issued by CREDITOR to RHI dated as of the closing of the Finance Agreement evidencing the loan of Funds from RHI to CREDITOR.

  

	
  

	
i)

	
INITIAL DISBURSEMENT DATE shall have the meaning attributed to it in Section 2.3.

	
  

	
j)

	
LOAN is the principal amount obtained from the installments sum as provided for in Sections 2.1, 2.3 and 2.4 and effectively made available by CREDITOR to BORROWER in this Agreement, in addition to interest, as set forth under paragraph 3.

	
  

	
k)

	
MATURITY DATE shall have the meaning attributed to it in Section 5.1.

	
  

	
l)

	
ORE PROPERTIES means the ore mining areas owned by BORROWER located at Fazenda Bom Jardim, Rodovia BR-070. Km 20, in the city of Nossa Senhora do Livramento, State of Mato Grosso, registered at DNPM under no. 866.592/2007, 866.597/2007, 866.600/2007 and 866.601/2007.

  

- 3 -

  

	
  

	
m)

	
PRODUCTION NET INCOME is the income from the ore production in ORE PROPERTIES after the COSTS AND EXPENSES assessed and payable on the total of ore production are calculated and deducted.

	
  

	
n)

	
REAIS means the currency circulating at any time in Brazil.

	
  

	
o)

	
SPECIFIED ACCOUNT means the controlled bank account of the CREDITOR which shall be opened and operating (a) within 5 (five) BUSINESS DAY counted from this date; or (b) in the date that the first amount to be deposited in the mentioned account is due, whichever occurs first.

	
2.

	
Loan

	
2.1.

	
CREDITOR undertakes to comply with certain conditions, loan the equivalent in REAIS to US$ 8,631,176.00 (eight million six hundred thirty-one thousand one hundred seventy-six US dollars) to BORROWER.  The money shall be used expressly as follows:

	
a)

	
The equivalent in REAIS to US$ 352,941.00 (three hundred fifty-two thousand nine hundred forty-one US dollars) to the construction costs associated for the construction of a new processing plant.

	
b)

	
Equivalent in REAIS to US$ 778,235.00 (seven hundred seventy-eight thousand two hundred thirty-five US dollars) for working capital during the two-month period BORROWER’s plant will be non-operational to build and install new equipment.

	
c)

	
The equivalent in REAIS to US$ 7,500,000.00 (seven million and five hundred thousand US dollars) for BORROWER’s benefit.

	
2.2.

	
The LOAN shall be available to BORROWER as provided for in Sections 2.3 and 2.4 which efficacy shall depend on the effective transfer of Funds from (i) Meserole to RHI; (ii) from RHI to CREDITOR; and (iii) from CREDITOR to BORROWER.

  

- 4 -

  

	
2.3

	
For the purposes under this Agreement, CREDITOR shall make available to BORROWER solely upon the conditions in Section 4 below being met, the first LOAN installment equivalent in REAIS to US$ 4,131,176.00 (four million one hundred thirty-one thousand one hundred seventy-six US dollars) (“INITIAL DISBURSEMENT”) of which: (a) US$ 352,941.00 (three hundred fifty-two thousand nine hundred forty-one US dollars) will be used as described in Section 2.1 a) above; (b) US$ 778,235.00 (seven hundred seventy-eight thousand two hundred thirty-five US dollars) will be used as described in Section 2.1 b) above; and (c) US$3,000,000.0 (three million US dollars) will be used for the BORROWER’S benefit,  in only one disbursement to be made within thirty (30) days from this date (hereinafter simply referred to as "INITIAL DISBURSEMENT DATE").

	
2.3.1

	
Notwithstanding the foregoing, at least 30 (thirty) days before the first LOAN, the BORROWER shall prepare and submit to Meserole, which will check and approve, in substance and form acceptable to Meserole, a detailed budget related to the LOAN that will be used for the purposes described in Sections 2.1 a) and b) above (“DISBURSEMENT BUDGET”).

	
2.4

	
For so long as (a) the terms and conditions in this Agreement are being timely fulfilled by BORROWER, at CREDITOR’s sole and exclusive discretion (as approved by Meserole pursuant to the Finance Agreement); and (b) the representations and warranties of the BORROWER remain true and correct on each disbursement date, CREDITOR undertakes to make available the second installment of the LOAN in an amount equivalent in REAIS to US$ 4,500,000.00 (four million five hundred thousand US dollars) by means of two disbursements to be made as follows:  (i) the first disbursement equivalent in REAIS to US$ 2,500,000.00 (two million five hundred thousand US dollars) to be made within six (6) months from this date; and (ii) the second disbursement equivalent in REAIS to US$ 2,000,000.00 (two million US dollars) to be made within twelve (12) months from this date.

	
2.4.1.

	
In the event of any default hereunder on any provisions and conditions herein, CREDITOR is released from the disbursements related to LOAN installments, as referred to in Section 2.4 and no compensation, penalty or payment is payable to BORROWER. Moreover, BORROWER is subject to the consequences set forth herein in respect to the breach of the obligations.

	
2.4.2.

	
If CREDITOR without case fails to make any disbursement described in Section 2.4, it shall be subject to the payment of  a twenty percent (20%) fine on the disbursement amount, notwithstanding the anticipated termination of the Agreement, which being requested by BORROWER shall occur according to the provisions in Section 9.2.

  

- 5 -

  

	
3.

	
Financial Adjustments

	
3.1.

	
BORROWER shall pay a monthly twenty percent (20%) interest on the PRODUCTION NET INCOME obtained from ORE PROPERTIES to CREDITOR regarding the LOAN from the DATE OF THE BEGINNING OF INTEREST PAYMENTS up to the MATURITY DATE. 

	
3.1.1

	
The amounts received by CREDITOR characterized as interest, as described in Section 3.1, and the amount of lease payments arising from the Lease Agreement, will be remitted to RHI in order to enable the repayment of Funds to Meserole under the Finance Agreement (as described in Whereas C above) and will be subject to a pledge to Meserole.  If (a) the amounts received by RHI through the remittance are not enough to allow RHI to comply with its obligations under the Finance Agreement; or (b) as a result of a disbursement under this Agreement, RHI will not have financial conditions to comply with its obligations under the Finance Agreement, then:

	
  

	
a)

	
Additional loans to BORRWER will be suspended until RHI is able to meet its loan obligations under the Finance Agreement and payoff any amounts, including default amounts and or additional interest or penalty payments owed by RHI to Meserole.

	
  

	
b)

	
BORROWER will forfeit any profits payment it is owed from the mining operation and direct all or a portion of to RHI, in the SPECIFIED ACCOUNT which is equal to the amount that RHI is short on their obligations under the Finance Agreement.

	
3.1.2.

	
Any amount that BORROWER makes available from its portion of profits and or an amount derived from processing tailings, will be accrued with interest at a rate of 10% annually and owed to BORROWER and paid back from RHI’s profits (arising from the interest established in this Agreement and of the payments of the Lease Agreement) only at the time that RHI is current with its debt obligations to Meserole and has sufficient capital above its minimal operating expenses.

	
3.1.3.

	
For the purposes of Sections 3.1.1 and 3.1.2  above, the determination of the capacity and financial condition of RHI to make present and future payments under the Finance Agreement will be done by Meserole, in accordance with the terms of the Finance Agreement, as it’s reasonable discretion, and will be conclusive and binding among the PARTIES.

  

- 6 -

  

	
3.2.

	
The interest shall be paid up to the fifth BUSINESS DAY of each month by BORROWER, in REAIS or gold, irrespective of any collection from CREDITOR.

	
3.2.1.

	
In any interest payment in gold, the  amount to be delivered by BORROWER to CREDITOR shall be determined based on the ore (gold) closing price on the day prior to the payment of the standard index internationally accepted for the definition of the daily price of the ore (gold).

	
3.2.2.

	
The interest payments in gold should be made on the delivery of the ore by BORROWER to CREDITOR, to be made available by BORROWER to CREDITOR at BORROWER’s place of business to be confirmed by BORROWER to CREDITOR.  The ore shall be deemed delivered upon evidence of the receipt to be issued by CREDITOR to BORROWER on the delivery date, which is an evidence of the settlement of the due interests installment.

	
3.2.3.

	
CREDITOR is liable for arranging and bears the ore transportation expenses from BORROWER’s place of business to be confirmed thereby to CREDITOR.

	
3.2.4.

	
The amount of any interest payments in REAIS shall be deposited in SPECIFIED ACCOUNT.

	
  

	 

	
4.

	
Precedent Conditions to Initial Disbursement

	
4.1.

	
The Initial Disbursement  shall only be made upon receipt of the following documents or approvals by the CREDITOR, as the case may be:

	
  

	
a)

	
original and executed copies of this Agreement, the Finance Agreement and the INTERCOMPANY DEMAND NOTE;

	
  

	
b)

	
documents evidencing the (i) good standing and incorporation of the BORROWER; (ii) corporate document authorizing the execution of this Agreement; (iii) powers of the person executing this Agreement.

	
  

	
c)

	
any other document that the CREDITOR may request at its sole discretion.

	
  

	
d)

	
any necessary documents to allow Meserole (including, but not limited to power of attorney and electronic key for transfers), at its sole discretion, to have the full and complete control of the CLEARING ACCOUNT  .

  

- 7 -

  

	
  

	
e)

	
the approval of the DISBURSEMENT BUDGET by Meserole.

	
5.

	
Amortization and Term

	
5.1.

	
The total outstanding principal LOAN amount shall be paid to CREDITOR in only one installment within  ten (10) years from the disbursement date of the first LOAN installment by CREDITOR to BORROWER (hereinafter simply referred to as “MATURITY DATE”).  If all conditions provided for herein are fulfilled, CREDITOR on its own discretion should release BORROWER from paying the interests related to the last year of the Agreement, therefore BORROWER with the incomes from ORE PROPERTIES should be allowed to accrue the necessary amounts to pay the principal LOAN amount, as provided for in Section 5.1.

	
5.2.

	
Upon CREDITOR exclusive discretion and express written approval, the MATURITY DATE mentioned herein should be extended for additional one (1) year period.

	
5.3.

	
The payment of the principal by BORROWER shall be made in REAIS, within forty-eight (48) hours from MATURITY DATE, without any offset and shall be deposited in SPECIFIED ACCOUNT.

	
5.4.

	
All payments related to principal amounts, interest, as well as all taxes incurred or that may be incurred shall be paid by BORROWER, in accordance with the terms of this Agreement and of the applicable Brazilian tax laws.

	
6.

	
Guarantees

	
6.1.

	
In order to guarantee the payment of any obligation arising herein as debt principal and interest, BORROWER establishes the following guarantees on CREDITOR’s behalf and prior to the DISBURSEMENT DATE:

	
  

	
a)

	
Second priority security interest (subject to Meserole’s first priority security interest) on the ore deposited in the waste tank of ORE PROPERTIES identified by the following geographic coordinates 15o41’30,51” and 56o21’06,84”, located at the sideways of the plant where the ore should be processed, with approximately 350 x 300 m extension, and 28 meter height.

  

- 8 -

  

	
  

	
b)

	
Second priority security interest (subject to Meserole’s first priority security interest) on 20 % (twenty percent) the PRODUCTION NET INCOME of gold extracted from ORE PROPERTIES, from the DATE OF BEGINNING THE INTERESTS PAYMENT up to MATURITY DATE.

	
6.2.

	
If the amounts received by RHI through the remittance of interest (as described in Section 3.1.1 above) and the lease payments under the Lease Agreement are not enough to allow RHI to comply with its obligations under the Finance Agreement, the BORROWER further irrevocably and irreversibly undertakes, in accordance with art. 818 et seq of CIVIL CODE to pay by way of BORROWER’s share of revenue from ORE PROPERTIES (as provided in Section 11.3) any such amount due and owing by or otherwise payable by RHI to Meserole, under the Finance Agreement, and expressly waives the benefits of Articles 366, 827 and 835 to 838, of the CIVIL CODE.

	
6.3.

	
All guarantees established herein should follow the provisions under the law, in particular the CIVIL CODE, to effect formalization, and the Parties undertake to take all measures and sign any document required for formalization prior to the DISBURSEMENT DATE. CREDITOR shall not make any disbursements if the guarantees are not previously formalized.

	
6.4.

	
In the event of any default of BORROWER, BORROWER shall grant unconditionally and irrevocably to CREDITOR irreversible and unconditional access to the assets under the guarantee, and shall allow and contribute with CREDITOR to totally satisfy the credit held thereby.

	
6.5.

	
Except the burdens established herein on CREDITOR’s behalf (and on Meserole’s behalf), BORROWER represents that the assets mentioned under sixth clause are under peaceful and undisturbed possession free and released from any burdens, including tax.

	
6.6.

	
In the event that the guarantees created in favor of CREDITOR in terms of this Agreement cease themselves, become insufficient, deteriorate or depreciate of such manner as the guarantees become defalcated, or, in addition, in the event that  the guarantee be subject to attachment, seizure or any other judicial or administrative measure of similar effect, the BORROWER shall, within 5 (five) BUSINESS DAY counted as from the date that occurs one of the events mentioned above, reinforce them in satisfactory form to the CREDITOR, as of its sole discretion, in the terms of CIVIL CODE (“Security Reinforcement”).  The document which will govern the Security Reinforcement shall identify the assets over which the pledge will be created .

  

- 9 -

  

	
6.7.

	
Upon the total LOAN payments and all other obligations being made by BORROWER, the guarantees set forth in Section 6.1 shall be automatically released and the guarantees shall be terminated, and CREDITOR undertakes to take all required measures to release BORROWER from said guarantees.

	
7.

	
BORROWER Obligations

	
7.1.

	
BORROWER undertakes to:

	
  

	
a)

	
Maintain the obligation in compliant status before environment and ore regulation bodies (DNPM) during the validity of the Agreement, inform CREDITOR of any non-compliance that might cause the qualified bodies to deem unfulfilled any (i) Brazilian ore regulation or (ii) environmental protection rule that may give rise to an indemnity obligation for any environmental damage.

	
  

	
b)

	
Except with CREDITOR’s prior and express consent (subject to CREDITOR’s obligations under the Finance Agreement), the assets owned thereby shall not be disposed, leased, sublet, or transferred under any title which are used to the exploitation of the ORE PROPERTIES.

	
  

	
c)

	
Except on CREDITOR prior and express consent (subject to CREDITOR’s obligations under the Finance Agreement), (i) third parties obligations should not be guaranteed, (ii) no burdens or encumbrances of any kind shall be placed to assets, and (iii) no credit, financing, loan or advancement shall be granted to any other person.

	
  

	
d)

	
Submit monthly, to CREDITOR during the validity of this Agreement, monthly financial statements, and quarterly and annual financial statements duly examined by in accordance with audit standards and submit monthly (by the 20th of previous month), to CREDITOR, an detailed operating budget prepared in accordance with BRAZILIAN GAAP. In addition, submit monthly, to CREDITOR an actual statement, in form and substance acceptable to the CREDITOR, also prepared in accordance with BRAZILIAN GAAP, for the two previous months, describing the use of proceeds by  the BORROWER.

	
  

	
e)

	
No additional loan shall be made without CREDITOR’s prior and express authorization.

  

- 10 -

  

	
  

	
f)

	
No corporate restructuring shall be performed including incorporation, liquidation, merger, split-up, or any other similar corporate action without CREDITOR’s express consent.

	
  

	
g)

	
Ensure the general, unlimited and unrestricted access to the MINERAL PROPEPRTIES and operations maintained by BORROWER in the ORE PROPERTIES by CREDITOR’s representative to check the progress, costs and outcomes of the daily ore production of BORROWER, and also grant access to BORROWER’s accountancy including the taxes paid by BORROWER and whatever is required to determine the NET PRODUCTION INCOME.

	
  

	
h)

	
Shall maintain the necessary assets for its activities in good condition of conservation and covered by insurance regarding the risks normally covered in mineral activities.

	
  

	
i)

	
Shall conduct its business according to legal determinations concerning its activities, applying consistently conduct standards and compatible quality with the type of activity developed and with standards usually observed by companies of the same nature of the BORROWER and that practice similar activities.

	
  

	
j)

	
Shall not modify, without previous and express agreement of the CREDITOR, its corporate purpose.

	
  

	
k)

	
Shall remit, within 5 days, any document or relevant information related to the Loan Agreement that had not been previously disclosed to the CREDITOR and that became known after the date of execution of this Agreement.

	
  

	
l)

	
Inform about the occurrence of any of event of default provided in the Loan Agreement, on date of respective occurrence.

	
  

	
m)

	
Grant to CREDITOR full-time, online, and real time access to the BORROWER’S AUTHORIZED BANK ACCOUNT, allowing the CREDITOR to monitor all bank transactions, being understood that the BORROWER’S AUTHORIZED BANK ACCOUNT shall be opened and operating (a) within 5 (five) BUSINESS DAY days counted from this date; or (b) in the date that the first amount to be deposited in the mentioned account is due, whichever occurs first.

  

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n)

	
Not to keep or open any bank account to conduct its business with the ORE PROPERTIES, except for the BORROWER’S AUTHORIZED BANK ACCOUNT and the CLEARING ACCOUNT.

	
  

	
o)

	
Provide all necessary documents (including, but not limited to power of attorney and electronic key for transfers) to allow Meserole, at its sole discretion, to have the full and complete control of the CLEARING ACCOUNT.

	
  

	
p)

	
Shall not make any expenditures and or transfer any funds outside of the normal course of business, unless the expenditures and transfers are pre-approved in advance by both PARTIES and Meserole (subject to CREDITOR’s obligations under the Finance Agreement).

	
7.2.

	
The PARTIES herein agree that as of the end of the second year of this Agreement, the PARTIES shall use their best efforts and work in good faith to reinvest part of the income from this Agreement in ORE PROPERTIES, all in accordance with the provision of Section 11 below.

	
8.

	
Representations and Warranties

	
8.1.

	
The BORROWER represents and warrants to the CREDITOR, under the penalties of the law, that as of the date of this Agreement, in each date a disbursement occurs  and on any other date when such representations and warranties are required to be made or deemed to have been made under this Agreement (or any amendment thereto) or any other relevant agreement, the following:

	
  

	
a)

	
it is a company validly organized and existing under the laws of Brazil, is duly qualified to do business and is in good standing;

	
  

	
b)

	
has full power, capacity and authority, under the laws and by its instrument of incorporation to enter into this Agreement, to carry out its obligations, whether financial or not, and to comply with the clauses of this Agreement;

	
  

	
c)

	
the execution of the Agreement and the exercise of its rights and performance of its obligations hereunder will not violate any provision of any existing law or the articles of association of the BORROWER or any decree of any court or arbitrator or of any contractual undertaking to which the BORROWER is a party or which is binding upon the BORROWER or any of its assets.

  

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d)

	
has lawful, good and valid ownership, license and authorization and all necessary assets for the performance of its activities.

	
  

	
e)

	
there are no pending proceedings or/and an adverse decision that may cause a relevant effect to the financial situation of the BORROWER impacting on its capacity to comply with the obligations under this Agreement, or affect the validity or performance of this Agreement.

	
  

	
f)

	
all information given to the CREDITOR regarding the performance of the obligations of this Agreement are complete and true in all aspects, and there are no relevant information that have not been made available to the CREDITOR.

	
9.

	
Termination Events

	
9.1.

	
CREDITOR may terminate, at its own discretion, this Agreement and required the anticipated payment, including accrued interests, as applicable, on the occurrence of any events hereunder:

	
  

	
a)

	
Any breach of the obligations undertaken by BORROWER herein;

	
  

	
b)

	
If any governmental license, consent, authorization, permission, or concession is required by BORROWER for the fulfillment of the obligations herein is revoked or withheld or materially modified or is not totally and effectively valid.

	
  

	
c)

	
If any order is issued by a qualified court or a resolution is addressed to BORROWER requesting BORROWER to appoint a liquidator, trustee or any similar administrator for a substantial part of the BORROWER’s assets, except for a merger or reorganization (other than insolvency), such provisions shall be approved in writing by CREDITOR.

	
  

	
d)

	
If BORROWER fails to pay or is unable to fulfill thereof, or admits to being unable to pay the debts on maturity date, or is bankrupt or insolvent, or takes part in any CREDITORS’ composition.

	
  

	
e)

	
If BORROWER terminates or threatens to terminate the business development or a substantial part of the ore business involving ORE PROPERTIES, or BORROWER’s assets were subject to seizure or appropriation, or

  

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f)

	
If any reproduction, guarantee or statement by BORROWER herein, or in writing hereof is not complied with or proves to be false on the date it was produced or repeated.

	
  

	
g)

	
Petition of bankruptcy against the BORROWER.

	
  

	
h)

	
Request of judicial or extrajudicial recovery made by BORROWER.

	
  

	
i)

	
Extinction, liquidation, dissolution, voluntary bankruptcy request, adjudication of bankruptcy, or any analogue procedure that become to be created by law, of the BORROWER that is not dully elided by the BORROWER within 15 (fifteen) days.

	
  

	
j)

	
If the BORROWER assigns, totally or partially, its obligations under this Agreement, without previous and express consent of the CREDITOR.

	
  

	
k)

	
If BORROWER assigns, leases or transfers any assets that may cause a material adverse impact on the Loan, at the discretion of the CREDITOR.

	
  

	
l)

	
Spin-off, incorporation, merger or any other form of corporate reorganization of the BORROWER, without the prior and written consent of the CREDITOR.

	
  

	
m)

	
If any event of articles 333 and 1.425 of the Civil Code occurs.

	
  

	
n)

	
Lawful protest of bills against the BORROWER and/or its controlled which the individual or aggregate amount exceeds R$10,000.00 (ten thousand REAIS).

	
  

	
o)

	
Early termination of any of its financial obligations undertaken in other agreements which individual or aggregate amount exceeds R$10,000.00 (ten thousand REAIS).

	
  

	
p)

	
Failure of RHI to enter into the Finance Agreement or the INTERCOMPANY DEMAND NOTE, or default of any RHI’s obligations under the Finance Agreement, or  default of any of CREDITOR’s obligations to RHI under the INTERCOMPANY DEMAND NOTE, or if any other event of default established therein, or in the Lease Agreement occurs.

	
  

	
q)

	
If BORROWER disobeys any administrative decision or final and unappeallable court decision.

  

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r)

	
Reduction in the capital stock of BORROWER (unless previously authorized by the CREDITOR).

	
  

	
s)

	
Any change in the financial condition of BORROWER that impacts the compliance of its obligations set forth in this Agreement.

	
  

	
t)

	
If the representations made by BORROWER in this Agreement are false or deceptive, or, in addition, in relevant way, are incorrect, inconsistent or incomplete.

	
  

	
u)

	
if the BORROWER does not renew or cancel, revoke or suspend its authorizations, concessions and licenses, required to the exercise of its activities.

	
  

	
v)

	
any governmental authority act with the purpose of seizure, nationalization, expropriation or in any circumstances acquire, compulsorily, entirety or substantial part of the assets, properties, of the shares of the capital stock of the BORROWER that may substantially affect the payment of its obligations related to this Agreement.

	
9.1.1

	
If any of the events listed in section 9.1 above occurs, CREDITOR may not demand the early termination of this Agreement without the prior and written consent of Meserole.

	
9.2.

	
BORROWER may, in its own discretion, terminate this Agreement, if BORROWER does not breach the obligations herein, and CREDITOR fails to perform the disbursements related to the LOAN installments within the terms set forth in Sections 2.3 and 2.4, subject to the penalty in Section 2.4.2 in any disbursement in Section 2.4, provided there are no outstanding amount (or amounts due and not paid by RHI to Meserole) arising from the Finance Agreement. In this case, the Agreement may only be terminated with the prior and written consent of Meserole.

	
9.2.1

	
Notwithstanding the foregoing, in the event that the BORROWER is not able to early terminate the Agreement, BORROWER reserves the right to carry out any judicial or extrajudicial measures against the CREDITOR seeking the full fulfillment of its obligations under this Agreement.

	
9.3

	
In any such event justifying the termination of this Agreement as provided for under Paragraph 9, the defaulting PARTY shall have thirty (30) days term from the date of being properly notified by the other PARTY, pursuant the Paragraph 14, to cure such default.  If the curing period has elapsed and the defaulting PARTY has not cured the default, then upon notifying the other PARTY at the non-defaulting PARTY’s discretion, this Agreement shall be automatically terminated under the provisions of this Paragraph 9.

  

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10.

	
Default

	
10.1.

	
Notwithstanding the provisions under Paragraphs 7, 8 and 9, if BORROWER fails to fulfill any obligation hereof, including those related to the interest and principal payments, it shall be subject to the execution of the guarantees set forth under the provisions of Paragraph 6 and of any additional guarantee that may be created for the benefit of the CREDITOR related to the purpose of this Agreement.

	
11.

	
Commitment

	
11.1.

	
At the end of the second year of the Agreement term, if BORROWER has (i) fulfilled all of the obligations herein, and (ii) the accounts and financial statements were audited and comply with generally accepted accounting principles of the United States of America (USGAAP), and CREDITOR with BORROWER’s support, has concluded that the audit satisfies the requirements of the U.S. Securities and Exchange Commission (“SEC”) and if there is no outstanding obligations under the Finance Agreement, CREDITOR undertakes to cancel the LOAN and convert into 20% share of net income all ore activities performed in ORE PROPERTIES, from the ore extraction, and waste processing and to contribute the equipment and machinery belonging to CREDITOR which are  already leased to BORROWER.  If the PARTIES fail to complete the audit in time to allow CREDITOR to cancel the LOAN and contribute with equipment and machinery, the PARTIES herein agree to extend the term under this Paragraph until the conclusion of the qualified audit.

	
11.1.1.

	
If there are outstanding obligations under the Finance Agreement, the cancelation of the LOAN may be only made with the prior and written consent of Meserole.

	
11.1.2

	
The PARTIES acknowledge and agree that the responsibilities and approval/discretionary rights of CREDITOR hereunder are subject to CREDITOR’s obligations under the Finance Agreement.

	
11.2.

	
Timely, the PARTIES should evaluate in good faith the most efficient form and structure for both PARTIES to be adopted to the feasibility of the goal provided for in Section 11.1.  Generally, the PARTIES agree to organize a new company pursuant the laws of Brazil, and perform the following contributions to the new company:

 

  

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a)

	
BORROWER shall contribute/ transfer to the new company, all the ore activities in ORE PROPERTIES, waste processing equipment and machinery to exploit, process, package, research and develop, the ORE PROPERTIES, exempted from any burdens prior to the formation of the Company , and CREDITOR is entitled to twenty percent (20%) of the net income of all ore activities performed on ORE PROPERTIES, from ore extraction, waste processing and all exploitation equipment.

	
  

	
b)

	
CREDITOR shall cancel an amount of debt arising from the LOAN, and shall contribute equipment and machinery under the lease agreement, for ore processing, which title shall be owned by the new company.

	
11.3.

	
Each buyer or payer of gold shall be irrevocably instructed to direct all the proceed from the sale of gold mined on the ORE PROPERTIES to the CLEARING ACCOUNT. All the proceed deposited into the CLEARING ACCOUNT will be transferred solely and exclusively by Meserole (or whomever Meserole expressly indicates), as follow:

	
  

	
a)

	
Seventy percent (70%) shall be deposited into the BORROWER’s AUTHORIZED BANK ACCOUNT of which: (i) forty percent (40%) will be allocated to pay the COST AND EXPENSES; and (ii) the remaining thirty percent (30%) will be allocated as BORROWER’s profit. Notwithstanding the above, if the amount described in item (i) above is not enough to settle the full amount of the COST AND EXPENSES, the PARTIES hereby agree that the amount deposited in the BORROWER’s AUTHORIZED BANK ACCOUNT and the amount deposited in the SPECIFIED ACCOUNT will be used, equally, to settle the outstanding amount of  COST AND EXPENSES.

	
  

	
b)

	
Thirty percent (30%) shall be deposited in the SPECIFIED ACCOUNT, and applied 20% (twenty percent) of the PRODUCTION NET INCOME toward the payment due on and in accordance with this Agreement between the Parties, and 30% (thirty percent) of the PRODUCTION NET INCOME towards the payment due on and in accordance with the Lease Agreement.

	
  

	
c)

	
The distribution amount described in items (a) and (b) above will be adjusted every 3 (three) months and the distribution percentage will be changed by CREDITOR, upon approval by Meserole taking into account the actual percentage of the excess or deficit of the COST AND EXPENSES, as the case may be, for this 3 (three) month period, and reflected in the gold sales invoice to the gold buyer.

  

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11.3.1.

	
Within 10 (ten) days from the end of each month, the accounting records of the previous month will be agreed upon by both Parties and closed, and any excess or deficit of COSTS AND EXPENSES of the mining operation will be distributed to/collected from the PARTIES. If there is a deficit, the amount equivalent to 50% thereof shall be deducted from the distribution of the subsequent month to the PARTIES, and, if there is an excess, an amount equivalent to 50% of such excess shall be distributed to each Party in the month following the distribution.

	
11.3.2

	
Each party shall have the choice of receiving their profits remunerated in gold or cash. If the CREDITOR chooses payment in gold, the amount to be delivered by the BORROWER to the CREDITOR, shall be accrued based on the closing price of gold from the previous day, on an index internationally accepted for definition of the daily price of gold.

	
11.3.3

	
Any payment in gold shall be made upon delivery by the BORROWER to the CREDITOR at the ORE PROPERTY and shall be deemed delivered upon evidence of receipt issued by the CREDITOR to the BORROWER, on the delivery date.

	
11.3.4

	
The CREDITOR shall be responsible for any and all transportation and security expenses to transport the gold from the ORE PROPERTIES to its designation.

	
11.3.5.

	
The PARTIES undertake to create a security interest for the benefit of Meserole over the SPECIFIED ACCOUNT in order to provide Meserole with the control of the transactions of the SPECIFIED ACCOUNT.

	
11.4.

	
Subject to CREDITOR’s obligations under the Finance Agreement the PARTIES agree that will reinvest a portion of their profits each year to increase: (i) the mining and processing volume; and (ii) gold recovery rate.

	
11.4.1.

	
The Parties will invest up to an estimated US$3,000,000.00 (three million US dollars) equally in the beginning of the 2nd year to add a “chemical circuit” to the gravity plant that will be built in the first year. The chemical circuit is planned to include flotation, cyanide, and electro-winning processes to the gravity circuit to increase the gold recovery rate.

  

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11.4.2.

	
The Parties will invest up to an estimated US$9,000,000.00 (nine million US dollars) equally in the beginning of the 3rd year to double the overall mining, processing and recovery capacity by adding additional trucks, excavators, loaders, and processing plant (both gravity and chemical).

	
11.4.3.

	
The PARTIES will reinvest a portion of their profits if they are generating enough profits from the mining operation to do so, as determined by Meserole, as its sole discretion.

	
11.4.4.

	
Notwithstanding the foregoing in Sections 11.4.1, 11.4.2 and 11.4.3, the reinvestments will only be allowed with prior and prior written consent of Meserole. Therefore, CREDITOR undertakes to send a notification to Meserole requesting the prior approval within at least 30 (thirty) days prior notice of the reinvestment date.

	
12.

	
No waiver

	
12.1.

	
Lack of the performance and/or delay in performing any right, power or privilege by any PARTY is not deemed a waiver, nor should preclude the exercise of any right, or part thereof, power or privilege.  The rights and remedies contained herein are cumulative and does not exclude any right or remedy under the law.

	
13.

	
Prepayment

BORROWER is prohibited, in any situation, to prepay this Agreement until all obligations of RHI to Meserole related to the Finance Agreement are fully complied. Nevertheless, after the compliance of all obligations set forth in the Finance Agreement, the prepayment of this Agreement will only be allowed with prior and written consent of CREDITOR.

	
14.

	
Notices

	
14.1.

	
For the purposes of this Agreement, any notice, authorization, or requirement shall be in writing, and shall be deemed as performed, when delivered personally, or 2 (two) days after transmitted by fax (with transmission evidence) or three (3) days after sending the letter by international courier service to the address informed hereunder:

	 	
If addressed to CREDITOR:

	
Address: Av. Presidente Wilson, 231 - 21o andar

20030-021 - Rio de Janeiro  RJ - BRAZIL

Attn.:  Alexandre Bittencourt Calmon

Veirano Advogados

  

- 19 -

  

	 	
If addressed to BORROWER:

	
Address: Av. Rubens de Mendonça, 2254,

Ed. American Business Center, sala 604,

Jardim Aclimação, Cuiabá – MT – CEP 78050-000

Attn.:  Raquel Cristina Rockenbach Bleich

	
14.2.

	
The notices addresses should be changed, which changes shall be effective only when the other PARTY has been notified on such change as provided for in this Clause.

	
15.

	
Assignment

	
15.1.

	
The PARTIES herein should not transfer or assign any obligation or assign any right hereof except if approved in writing by the other PARTY.

	
16.

	
Applicable Laws and Venue

	
16.1.

	
The PARTIES herein elect the Courts of Cuiabá, State of Mato Grosso, to solve any conflicts and controversies arising hereof excluding any other the most privileged it might be.”

	
1.

	
The PARTIES acknowledge that the Agreement shall remain unchanged in relation to the clauses that has not been expressly amended by this Amendment.

 

	
2.

	
No failure to exercise, nor any delay in exercising any right or remedy under this Agreement shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.

	
3.

	
If, at any time, any provision of this Agreement is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

	
4.

	
This Amendment constitutes irrevocable and irreversible obligations of the PARTIES e and shall be also binding on their respective successors.

  

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5.

	
This Amendment will be governed by Brazilian laws. The PARTIES hereby elect the courts of the City of Cuiabá, State of Mato Grosso, as competent to judge any lawsuit or proceeding aiming at resolving any dispute or controversy arising from this Amendment.

 

In witness whereof the PARTIES sign this agreement in 03 (three) counterparts of the same text and form in the presence of two witnesses.

Cuiabá (MT), August 4, 2011.

	/s/ Michael B. Campbell
	
RHI MINERAÇÃO LTDA

	
Name: MICHAEL CAMPBELL

	
Title: Attorney-in-fact

	  
	/s/ Reginaldo Luiz De Almeida Ferreira
	
REGINALDO LUIZ DE ALMEIDA FERREIRA – ME

	
Name: REGINALDO LUIZ DE ALMEIDA FERREIRA

	
Title: Owner

Witnesses:

	
1.

	/s/ Raquel Cristina Bleich  	  	
2.

	  
	
Name:       Raquel Cristina Bleich 

	  	
Name:

	
Identity card:

	  	
Identity card:

	
CPF/MF:

	
  

	
CPF/MF:

 

  

- 21 -

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