Document:

EXHIBIT1022-AGILITYFINALLOANAGREEMENT

EXHIBIT 10.22

LOAN AGREEMENT
Dated as of October 24, 2013
by and between
AGILITY CAPITAL II, LLC
as “Agility” or “Lender”
and
RAINMAKER SYSTEMS, INC.
as “Borrower”
TOTAL CREDIT AMOUNT:  Initially up to $500,000, but may be up to $650,000
	
		
	Maturity Date:
	No later than April 24, 2014; see Section 1(f) of the Agreement.

	Formula:
	Variable, per Agreement

	Facility Origination Fee:
	$13,000

	Interest:
	12% fixed per annum

	Warrants:
	See Warrant for coverage

The information set forth above is subject to the terms and conditions set forth in the balance of this Agreement.  The parties agree as follows:

		
	1.
	Advance and Payments.

(a)Advances. Borrower may request one or more advances (each, an “Advance” and collectively, the “Advances”), up to the lesser of the principal amount of $500,000 (or $650,000 upon Lender’s receipt of a signed letter of intent between Borrower and a strategic investor in form and substance satisfactory to Lender in its sole discretion) or the Borrowing Base.  “Borrowing Base” is the amount equal to 30% of Borrower’s Net Eligible Accounts Receivable, as defined in the Comerica Loan and Security Agreement dated June 14, 2012, as amended and in effect as of the date hereof (including pursuant to that certain Forbearance Agreement And Amendment To Loan and Security Agreement dated as of April 15, 2013 and that certain Second Amendment to Loan and Security Agreement dated as of September 25, 2013 (collectively, the “Comerica Agreement”). If at any time thereafter the outstanding Advances exceed the lesser of $650,000 or the Borrowing Base, Borrower shall immediately pay to Agility the amount of such excess.  Borrower may repay and reborrow Advances at any time through the Maturity Date.  Agility’s obligation to make any portion of the Advance under this Agreement is subject to (i) Agility’s determination, in its sole discretion, that there has not occurred a circumstance or circumstances that have a Material Adverse Effect, and (ii) the execution, delivery and filing of such certificates, instruments and agreements, as Agility reasonably deems appropriate, each in form and substance reasonably satisfactory to Agility, including but not limited to (A) a warrant to purchase stock; (B) subordination agreement with Borrower’s other creditors/noteholders (if any); and (C) that certain Subordination Agreement with Comerica Bank as of October ___, 2013 between Lender and Comerica Bank (the “Intercreditor Agreement”).
(b)Interest.  Borrower shall pay interest on the outstanding principal balance of the Advances at a fixed rate per annum equal to twelve percent (12.0%).  Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed, shall accrue from the date of the Advance and continue until such Advance has been repaid, and shall be payable in arrears on the first day of each month until such Advance has been repaid.  
(c)Payments. Borrower shall make interest-only payments on the first day of each month as set forth in Section 1(b) above.  Any partial month shall be prorated on the basis of a 30-day month based on the actual number of days outstanding. Borrower may prepay all or a portion of Advances at any time without penalty or premium, and reborrow such amounts until the Maturity Date, subject to the terms of this Agreement, All payments made to Agility shall be made via wire transfer per wire transfer instructions separately provided by Agility to Borrower or by automated clearing house (ACH) transfer.  All payments received by Agility shall be applied first to outstanding fees and expenses owing to Agility, then to accrued and unpaid interest, then to principal.  Any fees or interest not paid when due shall be compounded by becoming a part of the Obligations, and such fees or interest shall thereafter accrue interest at the applicable interest rate.
(d)Voluntary Termination; Prepayment. Borrower may terminate this Agreement prior to the Maturity Date, provided Borrower (i) provides written notice to Lender of its election to terminate the Agreement at least five (5) days prior to such termination, provided, however, that any such notice of termination may state that such notice is conditioned upon the effectiveness of other borrowings from a Person other than Lender or the completion of any other transaction, in which case such termination notice may be revoked by Borrower if such condition is not satisfied, and (ii) pays to the Lender on the termination date an amount equal to the sum of (A) all outstanding principal of the Advances plus accrued and unpaid interest thereon through the prepayment date, (B) a fee equal to $25,000 minus the aggregate amount of interest paid by Borrower prior to the termination date, plus (C) all of Lender’s fees and expenses incurred in connection with this Agreement and any other present or future agreement, document, or instrument entered into in connection herewith (collectively, the “Transaction Documents”).
(e)Fees.  On the date hereof, Borrower shall pay to Agility an origination fee of $13,000, which is fully earned and nonrefundable, and shall be deducted from the initial proceeds of the Advance.  Borrower shall pay Agility a loan management fee of $500 per month, payable in arrears on the first day of each month, each of which are fully earned and nonrefundable on each such date.
(f)Maturity Date.  All amounts outstanding hereunder are due and payable on the earlier of (i) the date amounts owing to Comerica Bank become due (whether by the stated maturity date or acceleration of indebtedness) or (ii) October 25, 2014 (the “Maturity Date”). 
(g)Late Payments; Default Interest; Default Fees.  After the occurrence and during the continuance of an Event of Default under this Agreement as defined in Section 5, the Obligations shall bear interest at a rate equal to 18%.  In addition, upon the occurrence of such Event of Default arising from Borrower’s failure to comply with any principal payment required under this Agreement, Borrower shall pay Agility a default fee of $10,000. For each subsequent 30 day period in which such Event of Default remains outstanding and uncured to Agility’s satisfaction, Borrower shall pay Agility an additional default fee of $15,000, until such Event of Default is cured and waived in writing by Agility. The terms of this paragraph shall not be construed as Agility’s consent to Borrower’s failure to pay any amounts in strict accordance with this Agreement, and Agility’s charging any such fees and default interest and/or acceptance of any such payments shall not restrict Agility’s exercise of any remedies arising out of any such failure.
(h)Use of Proceeds.  The proceeds from the Advance shall be used for Borrower’s working capital purposes and other general corporate purposes. 
2.Security Interest.  As security for all present and future indebtedness, guarantees, liabilities, and other obligations of Borrower to Agility under the Transaction Documents, including all fees specified in Section 1 (collectively, the “Obligations”), Borrower grants Agility a security interest in all of Borrower’s personal property, whether now owned or hereafter acquired, including without limitation the property described on Exhibit A attached hereto, and all products, proceeds and insurance proceeds of the foregoing (collectively, the “Collateral”).  Borrower authorizes Agility to execute such documents and take such actions as Agility reasonably deems appropriate from time to time to perfect or continue the security interest granted hereunder.
3.Representations, Warranties and Covenants.  Borrower represents to Agility as follows (which shall be deemed continuing throughout the term of this Agreement, including the date the Advance is made):
(a)Authorization. The execution, delivery and performance by Borrower of the Transaction Documents, and all other documents contemplated hereby have been duly and validly authorized by all necessary corporate action, and do not violate Borrower’s Certificate of Incorporation or by-laws, or any law or any material agreement or instrument which is binding upon Borrower or its property.  
(a)    State of Incorporation; Places of Business; Locations of Collateral.  Borrower is and will continue to be, duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation.  Borrower is and will continue to be qualified and licensed to do business in all jurisdictions in which it is required to do so.  The address set forth in this Agreement under Borrower’s signature is Borrower’s chief executive office.  Other than the chief executive office, the Collateral is located at the address(es) set forth on Exhibit B.
(b)    Title to Collateral; Permitted Liens.  Borrower is now, and will at all times in the future be, the sole owner of all the Collateral.  The Collateral now is and will remain free and clear of any and all liens, security interests, encumbrances and adverse claims, except for (i)  purchase money security interests in specific items of equipment; (ii) leases of specific items of equipment; (iii) liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings, provided the same have no priority over any of Lender’s security interests; (iv) liens of materialmen, mechanics, warehousemen, carriers, or other similar liens arising in the ordinary course of business and securing obligations that are not delinquent; (v) the lien in favor of Comerica Bank (or any replacement lender providing senior working capital financing), provided such lien is subject to an intercreditor agreement in form and substance satisfactory to Lender; (vi) the liens set forth on Exhibit B; and (vii) other Permitted Liens (as defined in the Comerica Agreement in effect as of the date hereof, which defined term is incorporated herein, mutatis mutandis) (collectively, “Permitted Liens”).
(c)    Financial Condition, Statements and Reports.  The financial statements provided to Agility by Borrower have been prepared in accordance with generally accepted accounting principles, consistently applied (“GAAP”).  All consolidated financial statements related to Borrower and any Subsidiary of Borrower that are delivered by Borrower to Lender fairly present in all material respects Borrower's consolidated financial condition as of the date thereof and Borrower's consolidated results of operations for the period then ended. There has not been a material adverse change in the consolidated financial condition of Borrower since the date of the most recent of such financial statements submitted to Bank.  Borrower has timely filed, and will timely file, all material tax returns and reports required by applicable law, and Borrower has timely paid, and will timely pay, all applicable material taxes, assessments, deposits and contributions now or in the future owed by Borrower.  
(d)    Compliance with Law.  Borrower has complied, and will comply, in all material respects, with all provisions of all material applicable laws and regulations.
4.Information.  All information provided to Agility by or on behalf of Borrower on or prior to the date of this Agreement is true and correct in all material respects, and no representation or other statement made by Borrower to Agility contains any untrue statement of a material fact or omits to state a material fact necessary to make any statements made to Agility not misleading at the time made.
(e)    Litigation.  Except as disclosed on Exhibit B, there is no claim or litigation pending or (to best of Borrower’s knowledge) threatened against Borrower.  Borrower will promptly inform Agility in writing of any material claim or litigation in the future.  Borrower shall also provide Agility prompt updates to any substantive changes to the claims listed in Exhibit B.
(f)    Subsidiaries; Investments.  Except as disclosed on Exhibit B, Borrower has no wholly-owned or partially owned subsidiaries, and Exhibit B sets forth all loans by Borrower to, and all investments by Borrower in, any person, entity, corporation partnership or joint venture.
(g)    Deposit and Investment Accounts.  Borrower maintains only the operating, savings, deposit, securities and investment accounts listed on Exhibit B.  
5.Other Covenants.
(a)    Reports.  Borrower will provide to Agility in form and substance acceptable to Agility reports consistent with those required in the Comerica Agreement for so long as such agreement is in effect; and thereafter: (i)  within thirty (30) days after the last day of each month, monthly financial statements, prepared in accordance with GAAP, consistently applied; (ii) within fifteen (15) days after the last day of each month, copies of all reports and statements received by Borrower from any of its banks or other financial institutions (in lieu of such requirement, Borrower may grant Agility on-line “view only” access to all of its accounts on terms acceptable to Agility); (iii) annual financial statements prepared in accordance with GAAP, consistently applied, and audited by an independent certified public accountant of national standing or otherwise acceptable to Agility; (iv) within twenty (20) days of the end of each month, aged listings of accounts receivable and accounts payable along with a borrowing base certificate in substantially similar form as attached hereto; (v) copies of any additional periodic reports or information submitted to Comerica Bank (including all reports and information specified in Section 6.2 of the Comerica Agreement) (or any replacement lender providing senior working capital financing) at the same time such reports or information is due to such lender; and (vi) upon request, such other information relating to Borrower’s operations and condition, as Agility may reasonably request from time to time.  Agility shall have the right to review and copy Borrower’s books and records and audit and inspect the Collateral, from time to time, upon reasonable notice to Borrower.  Agility or its officers, employees, or agents shall have a right to visit Borrower’s premises and interview Borrower’s officers at Borrower’s expense.  Notwithstanding the foregoing, unless an Event of Default has occurred and is continuing, Agility may so audit and inspect the Collateral or visit Borrower’s premises and interview Borrower’s officers no more than once in any 6-month period.
(b)    Insurance.  Borrower will maintain insurance on the Collateral and Borrower’s business, in amounts and of a type that are customary to businesses similar to Borrower’s, and Agility will be named in a loss payable endorsement in favor of Agility, in form reasonably acceptable to Agility, subject to the rights of Comerica Bank (or any replacement lender providing senior working capital financing) pursuant to an intercreditor agreement with Lender.
(c)    Financial Covenants. Borrower shall comply with those covenants required in the Comerica Agreement for so long as such Agreement is in effect, and thereafter, comply with such financial covenants as may be mutually agreed upon by Lender and Borrower in good faith.
(d)    Negative Covenants.  Without Agility’s prior written consent, Borrower shall not do any of the following:  (i) acquire any assets outside the ordinary course of business; (ii)  sell, lease, license, transfer or otherwise dispose of (each, a “Transfer”) any Collateral except for  except for Transfers (A) of inventory in the ordinary course of business; (B) of worn out or obsolete equipment that is, in the reasonable judgment of Borrower, no longer economically practicable to maintain or useful in the ordinary course of business of Borrower; (C) consisting of the sale or issuance of any stock of Borrower; (D) of non-exclusive licenses for the use of the property of Borrower or its subsidiaries in the ordinary course of business; and (E) other Permitted Transfers (as defined in the Comerica Agreement in effect as of the date hereof, which defined term is incorporated herein, mutatis mutandis); (iii) pay or declare any dividends on Borrower’s stock; (iv) redeem, repurchase or otherwise acquire, any of Borrower’s stock, other than the repurchase the stock of former employees pursuant to stock repurchase agreements as long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect to such repurchase; (v) make any investments in, or loans or advances to, any person, including without limitation any investments in, or downstreaming of funds to, any subsidiary or affiliate of Borrower; other than Permitted Investments (as defined in the Comerica Agreement in effect as of the date hereof, which defined term is incorporated herein, mutatis mutandis); (vi)  incur any indebtedness, including any guaranties or other contingent liabilities, other than (A) trade debt and capital lease obligations incurred in the ordinary course of business, (B) indebtedness owing to Comerica Bank (or any replacement lender providing senior working capital financing), provided such indebtedness is subject to an intercreditor agreement in form and substance satisfactory to Lender, (C) indebtedness existing on the date of this Agreement; and (D) other Permitted Indebtedness (as defined in the Comerica Agreement in effect as of the date hereof, which defined term is incorporated herein, mutatis mutandis); (vii) make any deposits or investments into any investment or depository accounts unless they are subject to an account control agreement acceptable to Agility, subject to the terms of any intercreditor agreement between Agility and Comerica Bank (or any replacement lender providing senior working capital financing); (viii) make any payment on any of Borrower’s indebtedness that is subordinate to the Obligations, other than in accordance with the subordination agreement, if any, in favor of Lender relating thereto; (ix) permit or suffer a merger, change of control, or acquisition of all or any substantial part of Borrower’s assets; (x) use any part of the Advances to repay loans (other than loans made under the Comerica Agreement) or pay deferred salaries or other amounts owing to any officers, directors, shareholders or affiliates of Borrower; or (xi) encumber any of the Collateral, except for Permitted Liens.  Notwithstanding the foregoing provisions of this Section 4(d),  it is the intent of Lender and Borrower that the negative covenants under this Section 4(d) shall be no more restrictive than the negative covenants applicable to the Borrower and its subsidiaries under the Comerica Agreement for so long as the Comerica Agreement is in effect.  Accordingly, for so long as the Comerica Agreement is in effect, if any act or omission of Borrower or its subsidiaries shall be permitted under the terms of the Comerica Agreement, then such act or omission shall also be deemed permitted under the terms of this Agreement, notwithstanding anything to the contrary in this Section 4(d).
6.Events of Default.  Any one or more of the following events shall constitute an Event of Default under this Agreement; provided however, for so long as the Comerica Agreement is in effect, to the extent that such event under the comparable provision in the Comerica Agreement is more favorable to Borrower or provides for a longer cure period than that which is provided for herein, then such event shall not constitute an Event of Default hereunder until such time as such event constitutes an Event of Default under the Comerica Agreement:
(a)    Borrower shall fail to pay any principal or interest due hereunder within ten days after the date due, provided that any amounts due on the Maturity Date shall be paid on that date, with no grace period; or
(b)    Borrower shall fail to comply with Section 4 of this Agreement; or
(c)    Borrower shall fail to comply with any other provision of this Agreement other than those listed in Section 4 of this Agreement or any other Transaction Document and as to any default under such other term, provision, condition or covenant that can be cured, has failed to cure such default within ten (10) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, so long as Borrower continues to diligently attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default; or
(d)    Any warranty, representation, statement, report or certificate made or delivered to Agility by Borrower or on Borrower’s behalf shall be untrue or misleading in a material respect as of the date given or made; or
(e)    Any Event of Default under the Comerica Agreement; or any default or event of default occurs in any other agreement to which Borrower is subject or by which Borrower is bound (i) resulting in a right by the other party or parties, whether or not exercised, to accelerate the maturity of any indebtedness in excess of $100,000 or (ii) that could reasonably be expected to have a Material Adverse Effect; or
(f)    Any portion of Borrower’s assets is attached, seized or levied upon, or a judgment for more than $50,000 is awarded against Borrower and is not stayed within ten days; or
(g)    Dissolution or termination of existence of Borrower; or appointment of a receiver, trustee or custodian, for all or any material part of the property of, assignment for the benefit of creditors by, or the commencement of any proceeding by or against Borrower under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect (except that, in the case of a proceeding commenced against Borrower, Borrower shall have 60 days after the date such proceeding was commenced to have it dismissed, provided Agility shall have no obligation to make any Advances during such period); or
(h)    The occurrence of any circumstance that could reasonably be expected to have a “Material Adverse Effect”, which shall mean  (i) a material adverse change in Borrower’s prospects, business or financial condition, or (ii) a material impairment in the prospect of repayment of all or any portion of the Obligations or in otherwise performing Borrower's obligations under the Transaction Documents, (iii) a material impairment in the perfection, value or priority of Lender’s security interests in the Collateral; or
(i)    If any guaranty of all or a portion of the Obligations (a “Guaranty”), if any, ceases for any reason to be in full force and effect, or any guarantor fails to perform any obligation, or any event of default occurs, under the Guaranty, or if any of the circumstances described in clauses (c) through (g) above with respect to any guarantor or any guarantor dies or becomes subject to any criminal prosecution.
7.Remedies.
(a)    Remedies.  Upon the occurrence and during the continuance of any Event of Default, Agility, at its option, may do any one or more of the following:  (i) Accelerate and declare the Obligations to be immediately due, payable, and performable; (ii) Take possession of any or all of the Collateral wherever it may be found, and for that purpose Borrower hereby authorizes Agility to enter Borrower’s premises without interference to search for, take possession of, keep, store, or remove any of the Collateral, and remain on the premises or cause a custodian to remain on the premises in exclusive control thereof, without charge by Borrower for so long as Agility reasonably deems it necessary in order to complete the enforcement of its rights under this Agreement or any other Transaction Document; provided, however, that should Agility seek to take possession of any of the Collateral by Court process, Borrower hereby waives:  (A) any bond and any surety or security relating thereto; (B) any demand for possession prior to the commencement of any suit or action to recover possession thereof; and (C) any requirement that Agility retain possession of, and not dispose of, any such Collateral until after trial or final judgment; (iii) Require Borrower to assemble any or all of the Collateral and make it available to Agility at places designated by Agility; (iv) Complete the processing of any Collateral prior to a disposition thereof and, for such purpose and for the purpose of removal, Agility shall have the right to use Borrower’s premises, equipment and all other property without charge by Borrower; (v) Collect and dispose of and realize upon any investment property, including withdrawal of any and all funds from any deposit or securities accounts; (vi) Dispose of any of the Collateral, at one or more public or private sales, in lots or in bulk, for cash, exchange or other property, or on credit, and to adjourn any such sale from time to time without notice other than oral announcement at the time scheduled for sale; and (vii) Demand payment of, and collect any accounts, general intangibles or other Collateral and, in connection therewith, Borrower irrevocably authorizes Agility to endorse or sign Borrower’s name on all collections, receipts, instruments and other documents, and, in Agility’s good faith business judgment, to grant extensions of time to pay, compromise claims and settle accounts, general intangibles and the like for less than face value; Borrower grants Agility a license, exercisable from and after an Event of Default has occurred and while it is continuing, to use and copy any trademarks, service marks and other intellectual property in which Borrower has an interest to effect any of the foregoing remedies.  All reasonable attorneys’ fees, expenses, costs, liabilities and obligations incurred by Agility with respect to the foregoing shall be added to and become part of the Obligations, and shall be due on demand.
(b)    Application of Proceeds.  All proceeds realized as the result of any sale or other disposition of the Collateral shall be applied by Agility first to the reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by Agility in the exercise of its rights under this Agreement or any other Transaction Document, second to any fees and Obligations other than interest and principal, third to the interest due upon any of the Obligations, and fourth to the principal of the Obligations, in such order as Agility shall determine in its sole discretion.  Any surplus shall be paid to Borrower or other persons legally entitled thereto; Borrower shall remain liable to Agility for any deficiency.
(c)    Remedies Cumulative.  In addition to the rights and remedies set forth in this Agreement, Agility shall have all the other rights and remedies accorded a secured party under the California Uniform Commercial Code and under all other applicable laws, and under any other instrument or agreement now or in the future entered into between Agility and Borrower, and all of such rights and remedies are cumulative and none is exclusive.  Exercise or partial exercise by Agility of one or more of its rights or remedies shall not be deemed an election, nor bar Agility from subsequent exercise or partial exercise of any other rights or remedies.  The failure or delay of Agility to exercise any rights or remedies shall not operate as a waiver thereof, but all rights and remedies shall continue in full force and effect until all of the Obligations have been fully paid and performed.
(d)    Power of Attorney.  After the occurrence and during the continuance of an Event of Default, Borrower irrevocably appoints Agility (and any of Agility’s designated employees or agents) as Borrower’s true and lawful attorney in fact to:  endorse Borrower’s name on any checks or other forms of payment; make, settle and adjust all claims under and decisions with respect to Borrower’s policies of insurance; settle and adjust disputes and claims respecting accounts, general intangibles and other Collateral; execute and deliver all notices, instruments and agreements in connection with the perfection of the security interest granted in this Agreement; sell, lease or otherwise dispose of all or any part of the Collateral; and take any other action or sign any other documents required to be taken or signed by Borrower, or reasonably necessary to enforce Agility’s rights or remedies or otherwise carry out the purposes of this Agreement and the other Transaction Documents.  The appointment of Agility as Borrower’s attorney in fact, and each of Agility’s rights and powers, being coupled with an interest, are irrevocable until all Obligations owing to Agility have been paid and performed in full.
8.Waivers.  The failure of Agility at any time or times to require Borrower to strictly comply with any of the provisions of this Agreement or any other Transaction Document between Borrower and Agility shall not waive or diminish any right of Agility later to demand and receive strict compliance therewith.  Any waiver of any default shall not waive or affect any other default, whether prior or subsequent, and whether or not similar.  None of the provisions of this Agreement or any other agreement shall be deemed to have been waived except by a specific written waiver signed by an authorized officer of Agility.  Borrower waives demand, protest, notice of protest and notice of default or dishonor, notice of payment and nonpayment, release, compromise, settlement, extension or renewal of any commercial paper, instrument, account, general intangible, document or guaranty at any time held by Agility on which Borrower is or may in any way be liable, and notice of any action taken by Agility, unless expressly required by this Agreement.
9.Indemnity.  Borrower shall indemnify Agility for any costs or liabilities, including reasonable attorneys’ fees, incurred by Agility in connection with this Agreement or any other Transaction Document, except for any losses caused by Lender’s gross negligence or willful misconduct.
10.Confidentiality.  In handling any confidential non-public information provided to Agility by Borrower, Agility shall exercise the same degree of care that it exercises with respect to its own proprietary information of the same types to maintain the confidentiality of the same, except that disclosure of such information may be made (i) to subsidiaries or affiliates of Agility in connection with their present or prospective business relations with Borrower, (ii) to prospective transferees or purchasers of any interest in the Obligations, provided that they have entered into a comparable confidentiality agreement with respect thereto, (iii) as required by law, regulations, rule or order, subpoena, judicial order or similar order, (iv) as may be required in connection with the examination, audit or similar investigation of Agility, and (v) as Agility may deem appropriate in connection with the exercise of any remedies hereunder.  Confidential information shall not include information that either:  (a) is in the public domain, or becomes part of the public domain, after disclosure to Agility through no fault of Agility; or (b) is disclosed to Agility by a third party, provided Agility does not have actual knowledge that such third party is prohibited from disclosing such information.
11.Governing Law; Jurisdiction; Venue.  The Transaction Documents, all acts and transactions under the Transaction Documents, and all rights and obligations of Agility and Borrower shall be governed by the internal laws (and not the conflict of laws rules) of the State of California.  As a material part of the consideration to Agility to enter into this Agreement, Borrower (i) agrees that all actions and proceedings relating directly or indirectly to the Transaction Documents shall, at Agility’s option, be litigated in courts located within California, and, at Agility’s option, the venue therefor shall be Santa Barbara County; (ii) consents to the jurisdiction and venue of any such court and consents to service of process in any such action or proceeding by personal delivery or any other method permitted by law; and (iii) waives any and all rights Borrower may have to object to the jurisdiction of any such court, or to transfer or change the venue of any such action or proceeding.
12.MUTUAL WAIVER OF JURY TRIAL.  BORROWER AND AGILITY EACH WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN AGILITY AND BORROWER INCLUDING ALL OTHER TRANSACTION DOCUMENTS, OR ANY CONDUCT, ACTS OR OMISSIONS OF AGILITY OR BORROWER OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH AGILITY OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. IF THIS JURY WAIVER IS FOR ANY REASON UNENFORCEABLE, THE PARTIES AGREE TO RESOLVE ALL CLAIMS, CAUSES AND DISPUTES THROUGH JUDICIAL REFERENCE PURSUANT TO CODE OF CIVIL PROCEDURE SECTION 638 ET SEQ BEFORE A MUTUALLY ACCEPTABLE REFEREE SITTING WITHOUT A JURY OR, IF NO AGREEMENT ON THE REFEREE IS REACHED, BEFORE A REFEREE SELECTED BY THE PRESIDING JUDGE OF THE CALIFORNIA SUPERIOR COURT FOR SANTA BARBARA COUNTY.  THIS PROVISION SHALL NOT RESTRICT A PARTY FROM EXERCISING NONJUDICIAL REMEDIES UNDER THE CODE.
13.General.  This Agreement and the other Transaction Documents are the final, entire and complete agreement between Borrower and Agility and supersede all prior and contemporaneous negotiations and oral representations and agreements, all of which are merged and integrated in this Agreement and the other Transaction Documents.  There are no oral understandings, representations or agreements between the parties which are not set forth in the Transaction Documents.  The terms and provisions of this Agreement or any other Transaction Document may not be waived or amended, except in a writing executed by Borrower and a duly authorized officer of Agility.  Agility may assign all or any part of its interest in this Agreement or any other Transaction Document and the Obligations to any person or entity, or grant a participation in, or security interest in, any interest in this or any other Transaction Document, with notice to, but without consent of, Borrower.  Borrower may not assign any rights under or interest in this Agreement or any other Transaction Document without Agility’s prior written consent.  
14.Publicity.  Borrower authorizes Agility to use Borrower’s tradenames and logos in Agility’s marketing materials in respect of the transactions evidenced by this Agreement.      
15.Lender’s License. This loan is made pursuant to the California Finance Lenders Law, Division 9 (commencing with Section 22000) of the Financial Code.  Agility Capital II, LLC, 812 Anacapa Street, Suite A, Santa Barbara, CA  93101, License Number 603 H822.  FOR INFORMATION CONTACT THE DEPARTMENT OF CORPORATIONS, STATE OF CALIFORNIA.
16.Subordination. The Obligations owing to Lender are subject to the terms of the Intercreditor Agreement.
[SIGNATURE PAGE FOLLOWS]

	
		
	AGILITY CAPITAL II, LLC
	RAINMAKER SYSTEMS, INC.

	By:     
	By:     

	Title:     
	Title:     

	 
	 

	Address for notices:
	Address for notices:

	Agility Capital II, LLC 
812 Anacapa Street, Suite A 
Santa Barbara, CA  93101 
Attn:  Jeff Carmody 
Fax:  805-568-0427
	RAINMAKER SYSTEMS, INC.
900 East Hamilton Ave, Suite 400
Campbell, CA 95008
Attn:  _________________
FAX:  _________________

EXHIBIT A
COLLATERAL DESCRIPTION ATTACHMENT 
TO LOAN AND SECURITY AGREEMENT

All personal property of Borrower (herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located, including, but not limited to:
(a)     all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), commercial tort claims, deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto), general intangibles (including copyrights, patents, trademarks, goodwill and all intellectual property, payment intangibles and software), goods (including fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records; and 
(b)     any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds, and all supporting obligations and the security therefor or for any right to payment.  All terms above have the meanings given to them in the California Uniform Commercial Code, as amended or supplemented from time to time.
Notwithstanding the foregoing, the term “Collateral” shall not include property that (i) is nonassignable by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, Sections 9406 and 9408 of the Code), (ii) the granting of a security interest therein is contrary to applicable law, provided that upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral, or (iii) constitutes the capital stock of a controlled foreign corporation (as defined in the IRC), in excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporations entitled to vote.

EXHIBIT B

Places of Business and Locations of Collateral (Section 3(b)):

Permitted Liens (Section 3(c))

Litigation (Section 3(g)):

Subsidiaries and partnerships and joint ventures (Section 3(h)):

Accounts (Section 3(i))

CORPORATE RESOLUTIONS AND INCUMBENCY CERTIFICATE
	
	
	Borrower:  RAINMAKER SYSTEMS, INC.

I, the undersigned Secretary or Assistant Secretary of RAINMAKER SYSTEMS, INC. (the “Corporation”), HEREBY CERTIFY that the Corporation is organized and existing under and by virtue of the laws of the state of Delaware.
I FURTHER CERTIFY that attached hereto as Attachments 1 and 2 are true and complete copies of the Certificate of Incorporation and Bylaws of the Corporation, each of which is in full force and effect on the date hereof.
I FURTHER CERTIFY that by unanimous written consent of the Directors of the Corporation, (or by other duly authorized corporate action in lieu of a meeting), the following resolutions were adopted.
BE IT RESOLVED, that any one (1) of the following named officers, employees, or agents of this Corporation, whose actual signatures are shown below:
	
			
	Names
	Position
	Actual Signatures

	 
	 
	 

	   
	   
	   

	 
	 
	 

	   
	   
	   

	 
	 
	 

	   
	   
	   

	 
	 
	 

	   
	   
	   

	 
	 
	 

acting for and on behalf of this Corporation and as its act and deed be, and they hereby are, authorized and empowered:
Borrow Money.  To borrow from time to time from Agility Capital II, LLC (“Agility”), on such terms as may be agreed upon between the officers, employees, or agents and Agility, such sum or sums of money as in their judgment should be borrowed, without limitation, including such sums as are specified in that certain Loan Agreement (the “Agreement”).
Execute Agreement.  To execute and deliver the Agreement to Agility, and also one or more renewals, extensions, modifications, refinancings, consolidations, or substitutions for one or more of the notes, or any portion of the notes.
Grant Security.  To grant a security interest to Agility in the Collateral described in the Agreement, which security interest shall secure all of the Corporation’s obligations, as described in the Agreement.
Issue Warrants. To issue one or more warrants to purchase the capital stock of the Corporation to Agility.
Further Acts.  To designate additional or alternate individuals as being authorized to request advances thereunder, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute and deliver such other documents and agreements as they may in their discretion deem reasonably necessary or proper in order to carry into effect the provisions of these Resolutions.”
BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, that these Resolutions shall remain in full force and effect and Agility may rely on these Resolutions until written notice of their revocation shall have been delivered to and received by Agility.  Any such notice shall not affect any of the Corporation’s agreements or commitments in effect at the time notice is given.
I FURTHER CERTIFY that the officers, employees, and agents named above are duly elected, appointed, or employed by or for the Corporation, as the case may be, and occupy the positions set forth opposite their respective names; that the foregoing Resolutions now stand of record on the books of the Corporation; and that the Resolutions are in full force and effect and have not been modified or revoked in any manner whatsoever.
IN WITNESS WHEREOF, I have hereunto set my hand as of October 24, 2013 and attest that the signatures set opposite the names listed above are their genuine signatures.
	
			
	 
	 
	CERTIFIED AND ATTESTED BY:

	 
	 
	 

	 
	 
	 

	 
	 
	By:    

	 
	 
	 
Name:    
 
Title:    

 

1
1174858 v10/HNexh4_1.htm

Exhibit 4.1

 

	
CONTRATO DE CESION DE DERECHOS(“CONVENIO” 0 “CONTRATO) QUE CELEBRAN, POR UNA PARTE, COMPANIA MINERA ZAPATA, S.A. DE C.V., REPRESENTADA EN ESTE ACTO POR EL SR. FRANCISCO HEIRAS MANCERA (EN ADELANTE IDENTIFICADA COMO “LA CEDENTE”); Y, POR UNA SEGUNDA PARTE, DON DAVID GOLD MEXICO, S.A. DE C.V. (EN ADELANTE LA "CESIONARIA"), REPRESENTADA EN ESTE ACTO POR EL SENIOR DANIEL ISAAC SALCEDO ZERMENO, AL TENOR DE LAS SIGUIENTES DECLARACIONES Y CLAUSULAS.

DECLARACIONES

1. Declara la CEDENTE. oor conducto de

	
ASSIGNMENT OF RIGHTS AGREEMENT (“AGREEMENT” OR “CONTRACT”) ENTERED INTO BY AND BETWEEN, AS FIRST PARTY COMPANIA MINERA ZAPATA, S.A. DE C.V., HEREBY REPRESENTED BY MR. FRANCISCO HEIRAS MANCERA (HEREINAFTER IDENTIFIED AS THE “ASSIGNOR”; AND AS THE SECOND PARTY, DON DAVID GOLD MEXICO, S.A. DE C.V., HEREBY REPRESENTED BY MR. DANIEL ISAAC SALCEDO ZERMENO, (HEREINAFTER IDENTIFIED AS THE "ASSIGNEE"), IN ACCORDANCE WITH THE FOLLOWING REPRESENTATIONS AND CLAUSES.

REPRESENTATIONS

I. The ASSIGNOR, represents throuqh

	
su reoresentante:

 

1. Que es una sociedad minera constituida conforme a las leyes de los Estados Unidos Mexicanos, segun consta en la escritura publica 6,023, de fecha 27 de febrero de 1998, otorgada ante el licenciado Jose Luis Villavicencio Castaneda, Notario 218 del Distrito Federal, inscrita en el Registro Publico de Comercio del Distrito Federal en el folio mercantil numero 234949 con fecha 24 de abril de 1998, igualmente inscrita en el Registro Federal de Contribuyentes con la clave MZA-980227-RE3 y que, de acuerdo con su objeto social, esta capacitada para ser titular de concesiones mineras y para celebrar cualquier clase de contratos que tengan por objeto derechos derivados de dichas concesiones y, por tales razones, se encuentra autorizada para celebrar este Contrato y obligarse en los terminos y condiciones establecidos en este documento.

 

 

2. Que su representante cuenta con facultades necesarias para obligarla en los terminos del presente contrato, tal y como se acredita con la escritura publica numero

	
its representative:

 

1. That it is a Mexican mining company incorporated in accordance with the laws of the Mexican United States, as evidenced in pubic instrument 6,023 of February 27, 1998 granted before Mr. Jose Luis Villavicencio Castaneda Notary Public 218 for the Federal District, registered at the Public Registry of Commerce of Mexico City under mercantile folio number 234949 on April 24, 1998 likewise recorded with the Federal Taxpayers’ Registry under number MZA-980227-RE3; and that according with the company’s by­laws, it has legal capacity to hold mining concessions and to enter into any agreement thereto, therefore it has the legal capacity to enter into this Agreement and be bound by the terms and conditions established herein.

 

 

2. That its legal representative has enough authority to act for and on behalf, and to bind the ASSIGNOR in terms of this Agreement, as evidenced in public instrument

 

 

 

  

  

  

 

 

10,081, de fecha 18 de septiembre del 2002, otorgada ante el licenciado Jose Sergio Miller Mata, titular de la Notaria 5 de Hidalgo del Parral Estado de Chihuahua, mismas facultades que, a la fecha de firma de este documento, no le han sido revocadas, limitadas o modificadas en forma alguna.

 

3. Que es unica titular de los derechos derivados de las concesiones mineras que amparan a los lotes: “San Pedro Fraccion 1”, titulo 233694; y, “San Pedro Fraccion 2”, titulo 233693, cuyos datos de identification son los siguientes:

 

	
a)  

	
"San Pedro Fraccion 1”, concesion minera, titulo 233694, expedido el 31 de marzo de 2009, ubicado en el Municipio de SanPedro Totolapan, Oaxaca, con una superficie de 2,554.0000 hectareas, inscrito bajo el numero 114 a fojas57 del volumen 375 del Libro General de Concesiones del Registro Publico de Mineria; y,

 

	
b)  

	
"San Pedro Fraccion 2", concesion minera, titulo 233693, expedido el 31 de marzo del 2009, ubicado en el Municipio de San Pedro Totolapan, Oaxaca, con una superficie de

1, 860.2110 hectareas, inscrito bajo el numero 113 a fojas 57 del volumen 375 del Libro General de Concesiones del Registro Publico de Mineria.

 

Las concesiones mineras a que se refieren los incisos anteriores son identificadas conjuntamente como los LOTES.

 

4. Que a su leal saber y entender, se encuentra al corriente en el cumplimiento de la obligacion de presentar ante la Direction General de Minas comprobaciones de las obras y trabajos efectuados en los LOTES.

 

5. Que hasta donde es de su conocimiento, se encuentra al corriente en el cumplimiento de la obligacion consistente en pagar los derechos sobre mineria que number 10,081 dated September 18, 2002, granted before Mr. Jose Sergio Miller Mata Notary Public 5, in Hidalgo del Parral for the State of Chihuahua, which authority, as of the date of execution of this document has not been revoked nor modified in any manner whatsoever.

 

3. That it is the holder of the rights deriving from the mining concessions covering the lots: “San Pedro Fraccion 1”, title 233694, and, “San Pedro Fraccion 2”, title 233693, with the following identification data:

 

	
a)  

	
"San Pedro Fraccion 1", mining concession, title 233694, issued on March 31, 2009, located in the Municipality of San Pedro Totolapan, Oaxaca, with a surface of 2,554.0000 hectares, recorded under number 114 page 57 volume 375 of the Book of Mining Concessions kept by the Public Registry of Mining; and,

 

	
b)  

	
"San Pedro Fraccion 2” mining concession, title 233693, issued on March 31, 2009, located in the Municipality of San Pedro Totolapan, Oaxaca, with a surface of 1,860.2110 hectares, recorded under number 113 page 57 volume 375 of the Book of Mining Concessions kept by the Public Registry of Mining.

 

The mining concessions referred to in the previous paragraphs are jointly identified as the LOTS.

 

4. That to the best of its knowledge, it is current in the compliance of the obligation consisting in filing before the General Direction of Mines, proof of assessment works carried out within the LOTS.

 

That to the best of its knowledge, itis current in the compliance of the obligation consisting of the payment of mining duties referred to in the Federal Law of Duties and

 

 

  

  

  

 

 

3. establece la Ley Federal de Derechos y que corresponden a los LOTES.

 

No obstante lo anterior, en caso de que las autoridades determinen la existencia de diferencias a cargo de la CEDENTE, entre los derechos sobre mineria que hayan sido pagados y los derechos que debieron haberse cubierto en su oportunidad hasta la fecha de celebration de este Contrato, la CEDENTE pagara tales diferencias, lo cual llevara a cabo a la mayor brevedad y siempre dentro del plazo que se le conceda para tales efectos. En este sentido, la CEDENTE manifiesta que hasta esta fecha no ha recibido de la Direction General de Minas oficio alguno mediante el cual se le requiera el pago de diferencias por concepto de derechos sobre mineria derivado de las concesiones que amparan a los LOTES.

 

4. Que hasta donde es de su conocimiento, las mojoneras que precisan la ubicacion del punto de partida de cada uno de los LOTES se encuentran en buen estado de conservation, fueron construidas en los terminos de ley y conservadas en el mismo lugar previamente aprobado por las autoridades mineras.

 

5. Que los derechos derivados de las concesiones mineras que amparan a los LOTES se encuentran libres de toda carga, gravamen o limitation de dominio de cualquier naturaleza, excepto por los derechos de la CEDENTE y que, a esta fecha, la CEDENTE no tiene celebrado ni celebrara contrato alguno distinto a los contenidos en este documento, ni han ejecutado o ejecutara acto alguno respecto a los LOTES, que limite, en cualquier forma, los derechos que tiene sobre las concesiones mineras citadas, por lo que la CEDENTE garantiza la existencia, legitimidad y disponibilidad de sus derechos.

 

6. Que con relation a las actividades mineras desarrolladas en los LOTES hasta esta fecha, hasta donde es de su which correspond to the LOTS.

 

Notwithstanding the foregoing, should the authorities determine the existence of any balance due by the ASSIGNOR, resulting from the mining duties effectively paid up to this date and those duties that should have been paid up to the date of execution of this Contract, the ASSIGNOR commits itself to pay said balances, which shall be made at its earliest convenience and always within the respective term granted to that effect. In said sense, the ASSIGNOR declares that as of this date, same has not received from the General Direction of Mines any official communication whereby the authority requires the payment of any balance deriving from mining duties of the mining concessions covering the LOTS.

 

3. That to the best of its knowledge, the landmarks indicating the location of the starting point of each one of the LOTS, are well preserved, were built according to the law and are maintained in the same place previously approved by the mining authorities.

 

4. That the rights derived from the mining concessions covering the LOTS are free of any lien, encumbrance, charge or ownership limitation of any nature, except for those of the ASSIGNOR, and that to this date, the ASSIGNOR has not entered into any agreement other than this one, nor has it executed nor will it execute any act in relation with the LOTS that may limit, in any way whatsoever, the rights covering the aforementioned mining concessions, therefore the ASSIGNOR guarantees the existence, legitimacy and availability of the rights it has over the mining concessions covering the LOTS.

 

That in relation with the mining activities carried out within the LOTS until this date, the it represents that, to the best of its

 

 

 

  

  

  

 

3. conocimiento, la misma se encuentra en total cumplimiento con las leyes y reglamentos aplicables, incluyendo los relativos a asuntos de Indole laboral, fiscal y ambiental; asimismo que, hasta donde es del conocimiento de la propia CEDENTE:

 

	
(i)  

	
Las condiciones en las que se encuentran los LOTES y las operaciones llevadas a cabo en los mismos, esta en apego a las leyes aplicables en materia ambiental, incluyendo pero no limitandose a asuntos relacionados con el almacenamiento y eliminacion de desechos;

 

	
(ii)  

	
No existen ordenes o requerimientos vigentes relacionados con asuntos ambientales, por los que se solicite cualquier reparation, trabajo, construction o gasto con respecto a los LOTES o a las operaciones relacionadas con los mismos, ni la CEDENTE ha recibido comunicado alguno relacionado con lo anterior, ni se encuentra al tanto de que exista base alguna para suponer que dichas ordenes o requerimientos pudieran ser emitidos.

 

	
(iii)  

	
Las concesiones mineras que amparan a los LOTES, a la fecha de celebration de este Contrato, no se encuentran ubicadas dentro de Areas Naturales Protegidas ni Reserva Ambiental alguna, sea de caracter federal o estatal, ni la CEDENTE ha recibido comunicacion alguna sobre la posible creation de una reserva de ese tipo sobre el area en donde se localizan los LOTES.

 

4. Que la CEDENTE, en este acto, desea celebrar con la CESIONARIA, Contrato de Cesion de todos los Derechos derivados de las concesiones mineras que amparan a los LOTES.

knowledge, it is in compliance with the applicable laws and regulations, including all labor, fiscal and environmental matters; likewise, that to the best of its knowledge:

 

	
(i)  

	
The condition of the LOTS in relation to the operations carried out within them are in compliance with the applicable environmental laws and regulations, including but not limiting to all matters related with wastes storage and disposal;

 

	
(ii)  

	
There are no outstanding orders or requirements related with environmental matters for which any repair, work, construction or expense has been requested in relation with the LOTS, or the operations related with same, nor has the ASSIGNOR received any notice related with the aforementioned, nor does it have any knowledge that there is any reason for which such order or requirement must be issued.

 

	
(iii)  

	
The mining concessions covering the LOTS are, as at the date of this Contract, not located within any Protected Natural Areas or Environmental Reservation, either federal or state, nor has the ASSIGNOR received any information related to the possible creation of a reservation of this type within the area where the LOTS are located.

 

That the ASSIGNOR hereby wishes to enter into, with the ASSIGNEE, this Contract of Assignment of Rights deriving from the mining concessions covering the LOTS.

 

 

  

  

  

 

1. Registro Federal de Contribuyentes bajo la clave GTR- 970919-T44, y que, de acuerdo con su objeto social, esta capacitada para ser titular de concesiones mineras, asi como para celebrar contratos que tengan por objeto derechos privados derivados de dichas concesiones.

 

2. Que con fecha 23 de febrero de 2012, la CEDENTE cambio su denominacion por la de Don David Gold Mexico, S.A. de C.V., segun consta en la escritura publica 7,922 de fecha 23 de febrero del 2012, otorgada ante el licenciado Guillermo A. Vigil Chapa, titular de la Notaria numero 247 del Distrito Federal, y debidamente inscrita en el folio mercantil electronico numero 230110 del Registro Publico de la Propiedad y de Comercio del Distrito Federal, inscrita en el Registro Federal de Contribuyentes bajo la clave DDG- 970919-675, continuando capacitada para ser titular de concesiones mineras, as! como para celebrar contratos que tengan por objeto derechos privados derivados de dichas concesiones.

 

3. Que con fecha 25 de mayo de 2012, la CEDENTE se fusiono con la sociedad del mismo grupo corporativo denominada Don David Gold, S.A. de C.V., y derivado de lo cual, subsiste Don David Gold Mexico, S.A. de C.V., segun consta en la escritura publica 8,293 de fecha 25 de mayo del 2012, otorgada ante el licenciado Guillermo A. Vigil Chapa, titular de la

II. Declara la CESIONARIA por conducto de su representante:

 

Que es una sociedad minera mexicana, constituida originalmente bajo la denominacion Golden Trump Resources, S.A. de C.V. conforme a las leyes de los Estados Unidos Mexicanos, segun consta en la escritura publica 39,618 de fecha 19 de septiembre de 1997, otorgada ante el licenciado Jose Manuel Gomez del Campo Lopez, titular de la Notaria numero 136 del Distrito Federal, y debidamente inscrita en el folio mercantil electronico numero 230110 del Registro Publico de la Propiedad y de Comercio del Distrito Federal, inscrita en el

1. mining concessions and to enter into any agreement thereto.

 

2. That on February 23, 2012, the ASSIGNOR changed its corporate name to Don David Gold Mexico, S.A. de C.V., as evidenced in pubic instrument 7,922 of February 23, 2012, granted before Mr. Guillermo A. Vigil Chapa, Notary Public 247 for the Federal District, duly recorded in the Public Registry of Commerce of Mexico Federal District under electronic folio number 230110, recorded with the Federal Taxpayers’ Registry under number DDG-970919-675, and maintaining its legal capacity to hold mining concessions and to enter into any agreement thereto.

 

3. That on May 25, 2012, the ASSIGNOR merged with the company of the same group of interest Don David Gold, S.A. de C.V. and from which Don David Gold Mexico, S.A. de C.V. survived, as evidenced in pubic instrument 8,293 of May 25, 2012, granted before Mr. Guillermo A. Vigil Chapa, Notary Public 247 for the Federal District, duly

 

 

  

  

  

 

1. Que con fecha 25 de mayo de 2012, la CEDENTE se fusiono con la sociedad del mismo grupo corporativo denominada Don David Gold, S.A. de C.V., y derivado de lo cual, subsiste Don David Gold Mexico, S.A. de C.V., segun consta en la escritura publica 8,293 de fecha 25 de mayo del 2012, otorgada ante el licenciado Guillermo A. Vigil Chapa, titular de la

II. The ASSIGNEE represents through its representative:

 

That it is a Mexican mining company incorporated originally under the corporate name of Golden Trump Resources, S.A. de C.V. in accordance with the laws of the Mexican United States, as evidenced in pubic instrument 39,618 of September 19, 1997, granted before Mr. Jose Manuel Gomez del Campo Lopez, Notary Public 136 for the Federal District, duly recorded in the Public Registry of Commerce of Mexico Federal District under electronic folio number 230110, recorded with the Federal Taxpayers’ Registry under number GTR-970919-T44, and that according with the company’s by-laws, it has legal capacity to hold whatsoever. 
 

2. That the ASSIGNEE declares to know the legal status of the mining concessions that cover the LOTS.

 

3. Given that it wishes to acquire from the ASSIGNOR all of the rights and obligations deriving from the mining concessions covering the LOTS, the ASSIGNEE wishes to enter into this contract with the ASSIGNOR in order to acquire said rights.

Given the foregoing declarations, the parties agree to the following:

CLAUSES

 

FIRST. The ASSIGNOR, on the terms and subject to the conditions set forth in this Contract, hereby transfers to the ASSIGNEE and the ASSIGNEE hereby acquires, without limitation of any nature whatsoever, in terms of article 23 of the Mining Law, the totality of the rights and obligations deriving from the mining concessions covering the LOTS. los LOTES

 

1. That on May 25, 2012, the ASSIGNOR merged with the company of the same group of interest Don David Gold, S.A. de C.V. and from which Don David Gold Mexico, S.A. de C.V. survived, as evidenced in pubic instrument 8,293 of May 25, 2012, granted before Mr. Guillermo A. Vigil Chapa, Notary Public 247 for the Federal District, duly

Notaria numero 247 del Distrito Federal, y debidamente inscrita en el folio mercantil electronico numero 230109 del Registro Publico de la Propiedad y de Comercio del Distrito Federal, inscrita en el Registro Federal de Contribuyentes bajo la clave DDG- 970919-675, y que continua estando capacitada para ser titular de concesiones mineras, as! como para celebrar contratos que tengan por objeto derechos privados derivados de dichas concesiones.

 

Que el representante de la CESIONARIA, tiene facultades suficientes para actuar en nombre y representation de esta, obligandola en los terminos de estos Contratos, como consta en la escritura publica 4,900 de 24 de febrero del 2010, otorgada ante el licenciado Guillermo Aaron Vigil Chapa, Notario Publico  
1. 247 del Distrito Federal; facultades que, a la fecha de firma de este documento, no le han sido revocadas, limitadas o modificadas en forma alguna.

 

2. Que la propia CESIONARIA conoce el estado legal que guardan las concesiones mineras que amparan los LOTES.

 

3. Que dado que desea adquirir del CEDENTE, todos los derechos y obligaciones que derivan de las concesiones mineras que amparan alos LOTES, la CESIONARIA desea celebrar con el CEDENTE este Contrato con la finalidad de adquirir los mismos.

Dadas las declaraciones anteriores, las partes convienen en las siguientes:

CLAUSULAS

 

PRIMERA. La CEDENTE, de acuerdo a los terminos y condiciones establecidas en este Contrato, en este acto transmite a la CESIONARIA y la CESIONARIA adquiere, sin reserva ni limitation alguna, en terminos del articulo 23 de la Ley Minera, la titularidad y todos los derechos y obligaciones que derivan de las concesiones mineras que amparan a recorded in the Public Registry of Commerce of Mexico Federal District under electronic folio number 230109, recorded with the Federal Taxpayers’ Registry under number DDG-970919-675, and maintaining its legal capacity to hold mining concessions and to enter into any agreement thereto.

 

 

  

  

  

 

Esta cesion surtira efectos en los terminos de este Contrato y conforme a la Ley Minera y su Reglamento.

 

SEGUNDA. La contraprestacion que en este acto se paga a la CEDENTE, por la cesion de derechos objeto de este Contrato, es la cantidad total de $100,000.00 dls. (cien mil dolares 00/100 moneda de los Estados Unidos de America), mas el Impuesto al Valor Agregado (IVA) correspondiente, mas $16,555.00 (dieciseis mil quinientos cincuenta y cinco dolares 00/100 moneda de los Estados Unidos de America) siendo una parte proporcional de la CESIONARIA de los pagos de derechos realizados el 31 de enero del 2013, misma cantidad que se paga a la celebration de este Contrato.

 

En relation con lo anterior, la CEDENTE manifiesta haber recibido de la CESIONARIA, a  
su entera satisfaction la cantidad a que se refiere el parrafo que antecede, mas el Impuesto al Valor Agregado correspondiente, por lo que en este mismo acto otorga a la CESIONARIA el finiquito mas amplio que en derecho proceda respecto de dicha cantidad, expidiendo al efecto el recibo correspondiente, en terminos de las disposiciones fiscales aplicables.

 

TERCERA. Asimismo, a partir del initio de la production comercial de Productos de las concesiones mineras que amparan a los LOTES, la CESIONARIA pagara a la CEDENTE, una regalia equivalente al 2.0% (Dos por ciento) (en adelante identificada como Regalia de Production) de los Ingresos Netos de Fundicion, la cual sera calculada y pagada de acuerdo con el Convenio de Regalia que se adjunta como Anexo “A” de este Contrato como si a la letra se insertase (en adelante identificado como el “Convenio de Regalia”).

 

CUARTA. A partir de la fecha de firma y

 

SECOND. The consideration that is hereby paid to the ASSIGNOR for the assignment of rights under this Contract, is the amount of US$100,000.00 (One hundred thousand dollars from the United Stated of America) plus the corresponding Added Value Tax, plus US$16,555.00 (Sixteen thousand five hundred and fifty five dollars from the United States of America) being ASSIGNEE’S pro-rata share of the mineral taxes paid on January 31, 2013, which amount is paid upon the execution of this Contract.

 

With respect to that mentioned above, the ASSIGNOR acknowledges having received from the ASSIGNEE the amount referred to in the preceding paragraph, plus the corresponding Value Added Tax, reason why, it hereby grants to the ASSIGNEE the broadest discharge with respect to said amount, issuing for such purpose the corresponding invoice, in the accordance with the applicable legal provisions. 
 

THIRD.                                  Likewise, upon the

commencement of commercial production of the LOTS, the ASSIGNEE shall pay to the ASSIGNOR a royalty equal to 2.0% (Two percent) of the net smelter returns (hereinafter “Production Royalty”) to be calculated and paid in accordance with the Royalty Agreement attached as Schedule “A” to this Contract and made a part hereof (hereinafter “Royalty Agreement”).

 

FOURTH. As from the date of execution

 

 

  

  

  

 

and ratification before a Notary of this Contract by both parties, the ASSIGNEE shall be responsible for complying with any obligation, contingency or requirement which may result from the activities carried out within the LOTS.

 

Likewise, as from the date of execution of this Contract of Assignment of Rights, the ASSIGNEE shall comply with each and every obligation deriving from the titles of mining concession covering the LOTS.

 

FIFTH. The parties ratify before a Notary Public the content and signatures of this Contract and the Royalty Agreement and, for the purposes mentioned in the first paragraph of article 23 of the Mining Law, the ASSIGNEE expressly obligates itself to request the registration of this Contract and the Royalty Agreement at the Public Registry of Mining in terms of the applicable legal provisions.

 

SIXTH. ASSIGNEE may at any time sell, transfer or otherwise dispose of all or any portion of the mining concessions covering the LOTS, provided that any purchaser or transferee of any such interest will have first delivered to ASSIGNOR its agreement to comply with the Production Royalty payment, containing:

 

a covenant by such transferee to comply with all the obligations of

	
(a)  

	
ASSIGNEE to be performed under this Contract and the Royalty Agreement;

 

	
(b)  

	
a provision subjecting any further sale, transfer or other disposition of the referred lots or any portion thereof to compliance with the obligations contained in this Contract and

ratification ante Notario de este Contrato por ambas partes, la CESIONARIA sera responsable de hacer frente a cualquier obligacion, contingencia o requerimiento que derive de las actividades que se desarrollen en las concesiones mineras que amparan a los LOTES.

Asimismo, a partir de la fecha de celebration de este Contrato de Cesion de Derechos, la CESIONARIA sera responsable de dar cumplimiento a las obligaciones que derivan de los titulos de concesion minera que amparan a los LOTES.

 

QUINTA. Las partes ratifican el contenido y firmas de este Contrato y del Convenio de Regalia ante Notario Publico y, para los fines senalados en el primer parrafo del articulo 23 de la Ley Minera, la CESIONARIA se obliga expresamente a solicitar la inscription de este Contrato y del Convenio de Regalia en el Registro Publico de Mineria, en los terminos de las disposiciones legales aplicables.

 

SEXTA. La CESIONARIA en todo momento podra vender, transferir o disponer de toda o una parte de las concesiones mineras que amparan a los LOTES, siempre y cuando el comprador o adquirente haya entregado primero

a la CEDENTE su conformidad de dar cumplimiento al pago de la Regalia sobre Production, en la que se incluya:

 

	
(a)  

	
Un acuerdo por parte de dicho cesionario de cumplir con todas las obligaciones de la CESIONARIA conforme al presente Contrato y del Convenio de Regalia;

 

una estipulacion en donde se someta la venta, transferencia u otra disposition adicional de las referidas concesiones

 

 

  

  

  

 

mineras al cumplimiento de las obligaciones contenidas en este Contrato y del Convenio de regalia;

 

El presente Contrato sera obligatorio para ambas partes y sus respectivos sucesores, herederos y cesionarios permitidos.

 

SEPTIMA. Moneda de Pago e IVA.

Todas las cantidades referidas a dolares en este Contrato, se entienden en dolares de los Estados Unidos de America y la CESIONARIA podra cubrir tales cantidades en dicha moneda, o bien, su equivalente en moneda nacional a la fecha de pago; asimismo, a las cantidades que deban ser cubiertas conforme a este Contrato, se les agregara el Impuesto al Valor Agregado (IVA) correspondiente a cada pago.

 

OCTAVA. Caso Fortuito o Fuerza Mayor. Queda                                                                                     expresamente

convenido que la CESIONARIA no sera responsable por la demora o incumplimiento total o partial, de sus obligaciones al amparo de este Contrato y del Convenio de Regalia y de efectuar los pagos a que se refiere la Clausula Tercera de este Contrato, cuando dicha demora o incumplimiento provenga o resulte de caso fortuito o fuerza mayor, esto es, de hechos o acontecimientos de la naturaleza o del hombre que sean imprevisibles o que, aun cuando puedan preverse, no puedan evitarse por la CESIONARIA.

 

En caso de que se presente algun supuesto que  
de lugar al caso fortuito o a la fuerza mayor, la CESIONARIA debera notificarlo a la CEDENTE dentro de un termino de 30 (treinta) dlas naturales, contados a partir de la fecha en que la CESIONARIA haya tenido conocimiento del suceso.

Si el caso fortuito o la fuerza mayor se mantienen por mas de 30 (treinta) dias

the Royalty Agreement;

 

This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors, heirs and permitted assigns

 

SEVENTH. Currency and VAT. All the

amounts referred to in dollars in this Agreement, are understood in dollars of the United States of America and the ASSIGNEE may pay said amounts in said currency or, in its equivalent in Mexican currency on the date of payment; likewise to all of the amounts that according to this Agreement must be paid, the corresponding Value Added Tax (VAT) shall be included.

 

EIGHTH. Force majeure or Acts of God. It is expressly agreed that the ASSIGNEE shall not be liable for the delay whether total or partial non-fulfillment of its obligations under this Agreement and to make the Production Royalty payments referred to in Clause Third of this Agreement, when such delay or non-fulfillment results from acts of God or force majeure, that is, by nature or man caused facts or events which are unpredictable or, even if they may be, cannot be avoided by the ASSIGNEE.

 

In the event some situation occurs causing the acts of God or force majeure, the ASSIGNEE shall notify it to the ASSIGNOR within a term of 30 (thirty) calendar days, counted as of the date

in which the ASSIGNEE is aware of the event.

 

If the act of God or the force majeure continues for over 30 (thirty) calendar days, naturales, la vigencia de este Contrato o pagos conforme a este Contrato, se extenderan por un plazo igual al de la duration del caso fortuito o la fuerza mayor, en forma consistente.

 

 

 

  

  

  

 

naturales, la vigencia de este Contrato o pagos conforme a este Contrato, se extenderan por un plazo igual al de la duration del caso fortuito o la fuerza mayor, en forma consistente.

 

NOVENA. Gastos, Honorarios e Impuestos. Todos los gastos, honorarios y derechos que se causen con motivo del otorgamiento de estos Contratos seran por cuenta de la CESIONARIA.

 

Lo anterior, salvo por lo que se refiere a los honorarios y gastos en que incurra la CEDENTE por concepto de asesoria legal o de cualquier otra Indole, y el Impuesto Sobre la Renta a cargo de la CEDENTE, quien se obliga a expedir las facturas correspondientes y que debera reunir todos los requisitos fiscales, en los terminos de las disposiciones legales que resulten aplicables.

 

Asimismo, la CEDENTE se compromete a dar cumplimiento con todas las obligaciones que le impone las leyes fiscales vigentes, en virtud de haber manifestado a la CESIONARIA estar inscrita en el Registro Federal de Contribuyentes bajo la clave MZA-980227- RE3.

 

Conforme a los terminos de la Ley del Impuesto al Valor Agregado, por cada pago que reciba la CEDENTE, esta trasladara y desglosara en forma expresa el Impuesto al Valor Agregado correspondiente, conforme a los articulos aplicables de la Ley citada, asi como aplicables del Codigo Fiscal de la Federation.

 

DECIMA. Comunicaciones. Todas las comunicaciones que se hagan las partes conforme a este Contrato seran por escrito, entregadas en sus domicilios en forma fehaciente o por medio de facsimile contrasenado y, al efecto, las partes senalan los siguientes domicilios:

and the term to perform any payment in accordance to this Agreement shall be extended for a term which duration is equal to the acts of God or the force majeure in a consisting manner.

 

NINTH. Expenses, Fees and Taxes. All

the expenses, fees and taxes caused as a consequence of the execution of this Agreement shall be borne by the ASSIGNEE.

 

The foregoing except for the legal fees or any other expenses incurred by the ASSIGNOR and the Income Tax of the ASSIGNOR, who is responsible of issuing the respective invoices on the amounts received by it and which shall meet with all the tax requirements in terms of the applicable legal provisions.

 

Likewise, the ASSIGNOR, has the obligation to comply with each and all of the obligations imposed by the applicable tax provisions given it declared to the ASSIGNEE be registered with the Federal Taxpayers’ Registry under number MZA-980227-RE3.

 

Pursuant to the provisions of the Value Added Tax Law, for each payment that the ASSIGNOR has received, it shall transfer and separate in an express manner, the amount corresponding to the Value Added Tax, pursuant to the applicable articles of the abovementioned Law, as well as those applicable articles of the Fiscal Code of the Federation.

 

TENTH. Communications.     All communications to be made among the parties pursuant to this Agreement shall be in writing, delivered at their domiciles; and, for such purpose, the parties designate the following domiciles:

 

 

  

  

  

 

LA CEDENTE:

COMPANIA MINERA ZAPATA S.A. DE C.V.

Maclovio Herrera No. 64 Interior L. Colonia

Centro C.P. 33800 
Hidalgo del Parral, Chihuahua

At’n. Representante legal

Tel. (627)522 22 93

 

LA CESIONARIA:

DON DAVID GOLD MEXICO, S.A. DE C.V. Paseo de las Palmas No. 755-902 Col. Lomas de Chapultepec C.P. 11000, Mexico D.F.

At’n. Representante Legal Tel: 55-5540-3020

 

Cualquier cambio de domicilio o de representante se comunicara por escrito, entregado en forma fehaciente. No obstante lo anterior, si cualquiera de las partes omite notificar a la otra de cualquier cambio de domicilio, se entendera que las notificaciones efectuadas en el ultimo domicilio senalado seran plenamente validas y surtiran todos sus efectos.

 

DECIMA PRIMERA. Ausencia de Lesion.

Las partes, no obstante la naturaleza de este documento, declaran expresamente que en las convenciones objeto del mismo no existe lesion y, aun cuando la hubiese, renuncian expresamente al derecho de pedir la nulidad relativa de que tratan los articulos 2228 y 2239 del Codigo Civil para el Distrito Federal y sus correlativos del Codigo Civil Federal.

 

DECIMA SEGUNDA. Leyes Aplicables y Jurisdiction. Este contrato que se celebra en terminos del artlculo 78 del Codigo de Comercio es de naturaleza mercantil, por lo que, para lo que no este expresamente aqul pactado y para la interpretation y cumplimiento del mismo se aplicara la Ley Minera, su Reglamento y el Codigo de Comercio, asi como, en su caracter de supletorio, el Codigo Civil Federal, para lo no previsto en los primeros.

THE ASSIGNOR :

COMPANIA MINERA ZAPATA, S.A. DE C.V.

Maclovio Herrera No. 64 Interior L. Colonia

Centro C.P. 33800

Hidalgo del Parral, Chihuahua

At’n. Legal Representative

Tel. (627)522 22 93

THE ASSIGNEE:

DON DAVID GOLD MEXICO, S.A. DE C.V.

Paseo de las Palmas No. 755-902

Col. Lomas de Chapultepec

C.P. 11000, Mexico Federal District

At’n. Legal Representative

Tel: 55-5540-3020

 

Any change of address or representative shall be communicated in writing and delivered conclusively. Notwithstanding the foregoing, if any of the parties fails to notify the other of any change of address, it is understood that the notifications made to the last domicile pointed out will be fully valid.

 

ELEVENTH. Absence of Injury.

Notwithstanding the nature of this document, the

parties expressly declare that no injury derives from the covenants contained in this document and, even in case it might exist, they expressly waive the right to request the relative nullity referred to in articles 2228 and 2239 of the Civil Code for the Federal District, the corresponding articles of the Federal Civil Code.

 

TWELFTH. Applicable Laws and Jurisdiction. This Agreement which is entered into in terms of article 78 of the Commerce Code, are of a mercantile nature; therefore, for all that not expressly agreed upon herein and for the interpretation of and compliance with same, the Mining Law, its Regulations and the Commerce Code shall apply, and for all that is not mentioned in the abovementioned laws and regulations, the Federal Civil Code.

 

 

  

  

  

 

	
Todas las desavenencias que deriven, resulten, o se relacionen con este Contrato distintas al Convenio de Regalia, seran resueltas definitivamente ante los tribunales competentes de la Ciudad de Mexico, Distrito Federal o de Chihuahua, Chihuahua, a election de la parte, renunciando a cualquier jurisdiction que pudiesecorresponderles en razon de sus actuales o futuros domicilios o por cualquier otra causa.

Leldo que fue por las partes este documento, lo ratifican en todos sus terminos y firman para debida constancia la CEDENTE el 11 de marzo de 2013, en la Ciudad de Chihuahua, Chihuahua; v la CESIONARIA el de de 2013 en la Ciudad de

	  
	  
	
LA CEDENTE

COMPANIA MINERA ZAPATA, S.A. DE C.V,.. 

	
""7 Francisco Heiras Mancera

LA CESIONARIA

DON DAVID GOLD MEXICO, S.A. DE C.V.

	
Daniel Isaac Salcedo Zermeho

 

	
All disputes arising from and/or in connection with this Agreement other than under the Royalty Agreement shall be definitively settled by the courts of Mexico City, Federal District or of Chihuahua, Chihuahua, at the election of the respective party, resigning to any jurisdiction that may correspond to them by virtue of their current or future domiciles or because of any other reason.

Having read this document, the parties ratify same in its entirety and sign it, the ASSIGNOR on March, 11 2013, in the City of Chihuahua, Chihuahua; and the ASSIGNEE on , 2013, in the City of

	  
	
THE ASSIGNOR

COMPANIA MINERA ZAPATA, S.A. DE C.V.

	
THE ASSIGNOR

COMPANIA MINERA ZAPATA, S.A. DE C.V.

	
Francisco Heiras Mancera

THE ASSIGNEEE

DON DAVID GOLD MEXICO, S.A. DE C.V.

	
Daniel Isaac Salcedo Zermeno

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