Document:

goro_Ex10_19

		

			Exhibit 10.19

		

		

			 

		

		

			

		

		

			 

		

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

		
			Las Rosas No. 339
		

		
			Col. Reforma, Oaxaca, Oaxaca
		

		
			CP 68050
		

		
			Mexico
		

		
			Ph. +52 951 5216 8258
		

		
			 
		

		
			21 December 2016
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						PURCHASE CONTRACT

					
					
						303-16CMX-230-0-P

				

		
			 
		

		
			This contract is concluded on the 21st day of December 2016 (the “Effective Date”) between DON DAVID GOLD MEXICO S.A. DE C.V., Las Rosas No. 339 Col. Reforma, Oaxaca, Oaxaca, C.P. 68050 Mexico (the “Seller”) and TRAFIGURA MEXICO, S.A. DE C.V., Reforma 115 piso 21, despacho 2102, Col. Lomas de Chapultepec, Mexico D.F., Mexico (the “Buyer”).
		

		
			 
		

		
			SCOPE OF THE CONTRACT
		

		
			 
		

		
			The Seller agrees to sell copper concentrate and the Buyer agrees to buy copper concentrate at the terms and conditions set out below:
		

		
			 
		

		
			DEFINITIONS
		

		
			 
		

			
					
						1 ounce means:

					
					
						1 troy ounce of 31.1035 grams;

				
	
					
						1 ton means:

					
					
						1 metric ton of 1,000 kilograms or 2204.62 lbs;

				
	
					
						1 unit means:

					
					
						1% of the dry net weight;

				
	
					
						Affiliates means:

					
					
						in relation to any company or corporation, a Subsidiary or Holding Company of that company or corporation or any other Subsidiary of that company or corporation or of that Holding Company;

				
	
					
						Banking Day and Business 
Day mean:

					
					
						any day except a Saturday or Sunday on which banks in the city of New York, New York, USA, Mexico City, Mexico, are generally open for the conduct of business;

				
	
					
						Holding Company means: 

					
					
						in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary;

				
	
					
						IMO/BC Code means:

					
					
						the International Maritime Organisation Code of Safe Practice for Solid Bulk Cargoes prevailing at the time of delivery;

				
	
					
						INCOTERMS 2010 means:

					
					
						the 2010 edition of the standard trade definitions published by the International Chamber of Commerce;

				
	
					
						LBMA means:

					
					
						London Bullion Market Association;

				

		
			 
		

		
			
		

		

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						1

				

		

			 

		

 

		

			

		

		

			 

		

	
					
						

					
						LME means:

					
					
						London Metal Exchange;

				
	
					
						Month of Scheduled 
Shipment (MOSS) means:

					
					
						in respect of any shipment of the concentrate, the calendar month in which shipment has been scheduled as per the clause SHIPMENT or as otherwise agreed in writing between the parties;

				
	
					
						Subsidiary means:

					
					
						in relation to any company or corporation, a company or corporation which is controlled, directly or indirectly, by the first mentioned company or corporation; more than half the issued share capital of which is beneficially owned, directly or indirectly by the first mentioned company or corporation; or which is a Subsidiary of another Subsidiary of the first mentioned company or corporation; and for this purpose, a company or corporation shall be treated as being controlled by another if that other company or corporation is able to direct its affairs and/or to control the composition of its board of directors or equivalent body;

				
	
					
						US$ means:

					
					
						the lawful currency of the United States of America;

				
	
					
						Valid TML means:

					
					
						Transportable Moisture Limit valid for the current shipment;

				
	
					
						Valid FMP means:

					
					
						Flow Moisture Point valid for the current shipment.

				

		
			 
		

		
			QUANTITY AND QUALITY
		

		
			 
		

		
			100% of copper concentrates (the “Concentrate”) production estimated to be 3,300 DMT evenly spread in monthly deliveries between January 2017 through to and including December 2017.
		

		
			 
		

		
			The concentrate shall assay as follows:
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Estimated Copper Assays 2017
Estimated Production DMT-3,300

				
	
					
						Element

					
					
						Conc Cu

					
					
						Units

				
	
					
						Cu

					
					
						24 - 26

					
					
						%

				
	
					
						Ag

					
					
						7,000 - 13,000

					
					
						g/t

				
	
					
						Au

					
					
						60 - 100

					
					
						g/t

				
	
					
						Pb

					
					
						6.0 - 11.0

					
					
						%

				
	
					
						Zn

					
					
						4.0 - 7.0

					
					
						%

				
	
					
						Sb

					
					
						1.4 - 2.5

					
					
						%

				
	
					
						As

					
					
						0.6 - 0.9

					
					
						%

				
	
					
						Fe

					
					
						20 - 25

					
					
						%

				
	
					
						S

					
					
						20 - 30

					
					
						%

				
	
					
						SiO2

					
					
						4.0 - 7.0

					
					
						%

				
	
					
						Bi

					
					
						0.01 - 0.02

					
					
						%

				
	
					
						F

					
					
						100 - 150

					
					
						ppm

				
	
					
						Hg

					
					
						15.0 - 20.0

					
					
						ppm

				
	
					
						Cd

					
					
						400 - 600

					
					
						ppm

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						2

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			In the event the actual assays are outside of the above described contractual assays both parties agree to discuss in good faith to reach a solution in line with prevailing market terms.
		

		
			 
		

		
			The Concentrate shall otherwise be free from deleterious impurities harmful to the smelting and / or refining processes and shall be able to withstand the voyage, upon all customary forms of transportation, to the destination intended by the Buyer. The Concentrate shall conform to all local regulations and the IMO/BC Code of Safe Practice for Solid Bulk Cargoes. Seller shall promptly present valid TML, FMP and moisture certificates if so requested by Buyer.
		

		
			 
		

		
			DELIVERY
		

		
			 
		

		
			DAP (Delivery At Place) Impala Terminals Mexico warehouse in Manzanillo. (Incoterms 2010).
		

		
			 
		

		
			DAP — Seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading inside the storage facilities designated by Buyer at the named place of destination. Risks transfer at this point from seller to buyer.
		

		
			 
		

		
			All export charges and the cost of loading the concentrate into the carrying vessel shall be for Buyer's account, Seller shall have the right to collect the 16% VAT.
		

		
			 
		

		
			In case the maritime service from Salina Cruz Port starts operating, both parties agree to discuss in good faith, the option to start delivering concentrates to this port instead of Manzanillo, Mexico.
		

		
			 
		

		
			PRICE
		

		
			 
		

		
			Payments
		

		
			 
		

		
			Copper
		

		
			 
		

		
			Deduct 1 unit per dry metric ton, and pay the balance at the official London Metal Exchange cash settlement quotation for copper, as published in the Metal Bulletin in US$ and averaged over the quotational period.
		

		
			 
		

		
			Silver
		

		
			 
		

		
			Pay for 96.5% (ninety-six point five per cent) of the silver content of the Concentrate, subject to a minimum deduction of 50 grams per dry metric ton of the Concentrate, at the LBMA Silver Price, as published in US$ at www.lbma.org.uk  and averaged over the quotational period.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						3

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			Gold
		

		
			 
		

		
			Pay for 96% (ninety-three per cent) of the gold content of the Concentrate, subject to a minimum deduction of 1.0 gram per dry metric ton of the Concentrate, at the balance of the final gold content at the mean of the official AM/PM LBMA Gold Price, as published on www.lbma.org.uk  and averaged over the quotational period.
		

		
			 
		

		
			Deduction
		

		
			 
		

		
			Treatment Charge
		

		
			 
		

		
			US$175.00 per dry metric ton of the Concentrate delivered basis DAP Impala warehouse, Manzanillo, Mexico.
		

		
			 
		

		
			Refining Charges
		

		
			 
		

		
			Copper: The refining charge shall be US$0.175 per payable pound.
		

		
			 
		

		
			Silver: The refining charge shall be US$0.75 per payable ounce.
		

		
			 
		

		
			Gold: The refining charge shall be US$15.00 per payable ounce.
		

		
			 
		

		
			Penalties
		

		
			 
		

		
			As + Sb: US$3.00 for each 0.10% that the final content exceeds 0.70%, up to 2%;
		

		
			US$5.00 for each 0.10% that the final content exceeds 2%
		

		
			 
		

		
			Pb + Zn: US$2.50 for each 1% that the final content exceeds 3%.
		

		
			 
		

		
			Fractions pro rata.
		

		
			 
		

		
			QUOTATIONAL PERIOD
		

		
			 
		

		
			The quotational for all payable metals shall be the month following the month of arrival at the warehouse (M+1).
		

		
			 
		

		
			The chosen Quotational Period shall apply for the entire contract. Upon Seller's agreement, the chosen Quotational Period could change once during the contract, and the benefit for this change, shall be shared 50/50 between the parties.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						4

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			Subject to Buyer's agreement, Seller shall have the option to fix the price of the payable metal units contained in the Concentrate once the lot has been delivered to the warehouse and prior to the start of the Buyer's elected QP in a mutually agreed date. For good order's sake, in case Seller elects to fix the prices for the payables, the escalators, if any, shall continue running at Buyer's elected QP.
		

		
			 
		

		
			PAYMENT
		

		
			 
		

		
			All payments shall be made in US$ by telegraphic transfer.
		

		
			 
		

		
			Provisional Payment
		

		
			 
		

		
			95% (ninety five percent) of the provisional invoice value of the Concentrate, based on the final wet weight, final moisture, provisional assays, the metal forward LME prices for Copper and the metal forward LBMA prices for Silver and Gold, referred to the contractual QP at the date the invoice is issued, shall be paid 5 (five) calendar days after the truck delivery to the Impala Manzanillo warehouse against the presentation of the following documents:
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Seller's provisional invoice

			
	
			
				 2.
			

			
	
			
			Seller's provisional weight and provisional moisture certificate

			
	
			
				 3.
			

			
	
			
			Seller's provisional assay certificate

		
			 
		

		
			The Seller shall be able to deliver thru its Mexican Subsidiary and collect 16% VAT on the provisional and final payments.
		

		
			 
		

		
			Second Provisional Payment
		

		
			 
		

		
			100% of the second provisional invoice value of the Payments less the Deductions, less the first provisional payment, based on the final wet weights and dry weights received at Impala warehouse, and final prices shall be paid to the party so owing 40 days after the first provisional payment date based on the following;
		

		
			 
		

			
	
			
				 -
			

			
	
			
			Second provisional invoice

			
	
			
				 -
			

			
	
			
			Final wet weight and moisture certificate duly signed by an independent surveyor company acceptable to Buyer

		
			 
		

		
			Final Payment
		

		
			 
		

		
			Final payment shall be made by the party so owing latest 3 (three) Banking Days after the date final assays, weights and prices are known against presentation of the final invoice.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						5

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			In case Seller is indebted to Buyer by reason of having received provisional payment in excess of the amount of the final invoice, this difference shall be re-paid by Seller to Buyer by telegraphic transfer within 3 (three) Banking Days of final weights, final assays and final prices being known.
		

		
			 
		

		
			TITLE AND RISK
		

		
			 
		

		
			Title and Risk in the Concentrate shall pass from Seller to Buyer when the Concentrate has been delivered to Buyer at Impala Warehousing, S.A. de C.V. in Manzanillo, Mexico.
		

		
			 
		

		
			WEIGHING, SAMPLING AND MOISTURE DETERMINATION
		

		
			 
		

		
			The operations of weighing, sampling and moisture determination shall be carried out by Impala Warehousing S.A. de C.V. in Manzanillo, Colima, Mexico in the usual technical manner in accordance with standard international practices.
		

		
			 
		

		
			Sampling shall be done on top of the truck. Moisture samples shall be taken by using a post hole shovel with 5 samples taken from corner to corner of each truck box. The depth of each sample shall reach the bottom of the truck box and each sample shall contain 1 to 1.5kg. The sample shall be placed in a plastic sample bag and the five (5) samples should make up approximately 6 — 8kg composite sample. The quality sample shall be taken using an electrically operated auger sampler. A grid of 80 holes (5 X 16) with each hole drilled to the full depth of the Concentrate and the sample recovered in the receiving pan (approx 1 — 1.5kg per drill hole). The total weight of the composite sample should contain approximately 8- - 100kg.
		

		
			 
		

		
			The moisture and the wet weight thus determined, less a weight franchise of 0.1% (zero point one percent) shall be final and binding for settlement purposes.
		

		
			 
		

		
			Seller shall have the right to appoint an internationally recognized supervision company to conduct supervision of these operations. The costs of these operations shall be borne by the Seller.
		

		
			 
		

		
			The operations of weighing, sampling and moisture determination shall be carried out at the Buyer's Impala warehouse in lots of approximately 250 wet metric tonnes. The final contents for all elements shall be calculated on a lot-by-lot basis. The sum of the individual lot contents will constitute the total of the shipment.
		

		
			 
		

		
			The samples shall be taken, prepared and sealed in the presence of Seller's surveyor. Each party shall give their sample dispatch instructions and can receive four (4) sets of samples for every composite lot prepared.
		

		
			 
		

		
			A reserve sample is kept in case of an eventual umpire and shall be dispatched directly from Impala to the appointed third party Lab as per instructions received by both Buyer and Seller.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						6

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			ASSAYING
		

		
			 
		

		
			Assays shall be made independently by each party and the results of such assays shall exchanged on a lot-by-lot basis for all payable and penalty elements on a mutually agreed date in the event of greater difference in assay exchange than contractually agreed, an umpired assay shall be made by an umpire laboratory rotating lab for each quota, but in any event not later than forty-five (45) calendar days after the assay samples are sealed and sent to the respective parties. Such date shall be calculated starting after the sealing date of the last composite sample of the monthly quota. In the event of greater difference in assay exchange than contractually agreed, an umpire assay shall be made by an umpire laboratory rotating lab for each quota. In the event that assays have not been exchanged by the 45th (forty-fifth) day after samples were sealed and sent to the respective parties, then the party which is ready to exchange assays shall notify the other party by fax or email that it is ready to exchange assays. If the other party does not respond within 15 (fifteen) calendar days then the assay results of the party which was ready to exchange its assay results shall be final and binding, save for fraud or manifest error.
		

		
			 
		

		
			Should the difference between the results of both parties be not more than:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Copper

					
					
						0.5%

				
	
					
						Silver

					
					
						100 g/dmt

				
	
					
						Gold

					
					
						1.5 g/dmt

				
	
					
						Lead:

					
					
						0.3 %

				
	
					
						Zinc:

					
					
						0.3 %

				
	
					
						Arsenic:

					
					
						0.1 %

				
	
					
						Antimony:

					
					
						0.1 %

				

		
			 
		

		
			Then the exact mean of the two results shall be taken as the agreed assay for the purpose of final accounting.
		

		
			 
		

		
			In the event of greater difference in assay exchange than contractually agreed, an umpire assay shall be made by an umpire laboratory to be mutually agreed between Buyer and Seller, which shall be one of the following:
		

		
			 
		

		
			Laboratory Services International B.V.
		

		
			Geijssendorfferweg 54
		

		
			3088 GK Rotterdam
		

		
			 
		

		
			Alfred H. Knight International Ltd.
		

		
			Eccleston Grange
		

		
			Prescot Road
		

		
			St. Helens
		

		
			Merseyside WA10 3BQ
		

		
			England
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						7

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			ALS Inspection UK Limited
		

		
			Caddick Road
		

		
			Knowsley Business Park
		

		
			Merseyside
		

		
			L34 9HP
		

		
			England
		

		
			 
		

		
			SGS Nederland B.V
		

		
			Mineral Services
		

		
			Malledijk 18 /PO Box 200
		

		
			3208 LA /3200 AE
		

		
			Spijkenisse
		

		
			The Netherlands
		

		
			 
		

		
			Should the umpire assay fall between the results of the two parties, then the arithmetical mean of the umpire assay and the assay of the party whose results are nearer to the umpire's shall be taken as the agreed assay. Should the umpire assay fall outside the exchanged results, the middle of the 3 (three) results shall be final. If the umpire results coincides with either of the two parties or is the exact mean of the exchanged result, the umpire assay shall be final.
		

		
			 
		

		
			The cost of the umpire assay shall be borne by the party whose result is farthest from the umpire result. The cost of the umpire assay shall be borne equally by both parties when the umpire assay is the exact mean of the exchanged results.
		

		
			 
		

		
			The silver and gold assay shall be determined adjusted for cupel and absorption and slag loss.
		

		
			 
		

		
			FORCE MAJEURE
		

		
			 
		

		
			If either party is prevented, hindered or delayed from performing in whole or in part any obligation or condition of this contract by reason of force majeure (the “Affected Party”), the Affected Party shall give written notice to the other party promptly and in any event within 3 (three) Business Days after receiving notice of the occurrence of a force majeure event giving, to the extent reasonably practicable, the details and expected duration of the force majeure event and the quantity of Concentrate affected (the “Force Majeure Notice”).
		

		
			 
		

		
			Provided that a Force Majeure Notice has been given, for so long as the event of force majeure exists and to the extent that performance is prevented, hindered or delayed by the event of force majeure, neither party shall be liable to the other and the Affected Party may suspend performance of its obligations under this contract (a “Force Majeure Suspension”). During the period of a Force Majeure Suspension, the other
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						8

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			party may suspend the performance of all or a part of its obligations to the extent that such suspension is commercially reasonable.
		

		
			 
		

		
			The Affected Party shall use commercially reasonable efforts to avoid or remove the event of force majeure and shall promptly notify the other party when the event of force majeure is terminated.
		

		
			 
		

		
			If a Force Majeure Suspension occurs, the time for performance of the affected obligations and, if applicable, the term of this contract shall be extended for a period equal to the period of suspension.
		

		
			 
		

		
			If the period of the Force Majeure Suspension is equal to or exceeds 3 months from the date of the Force Majeure Notice, and so long as the force majeure event is continuing, either party may, in its sole discretion and by written notice, terminate this contract or, in the case of multiple deliveries under this contract, terminate the affected deliveries. Upon termination in accordance with this clause, neither party shall have any further liability to the other in respect of this contract or, as the case may be, the terminated deliveries except for any rights and remedies previously accrued under the Contract, including any payment obligations.
		

		
			 
		

		
			“Force Majeure” means any cause or event reasonably beyond the control of a party, including, but not limited to fires, earthquakes, lightning, floods, explosions, storms, adverse weather, landslides and other acts of natural calamity or acts of god; navigational accidents or maritime peril; vessel damage or loss; strikes, grievances, actions by or among workers or lock-outs (whether or not such labour difficulty could be settled by acceding to any demands of any such labour group of individuals); accidents at, closing of, or restrictions upon the use of mooring facilities, docks, ports, harbours, railroads or other navigational or transportation mechanisms; disruption or breakdown of, storage plants, terminals, machinery or other facilities; acts of war, hostilities (whether declared or undeclared), civil commotion, embargoes, blockades, terrorism, sabotage or acts of the public enemy; any act or omission of any governmental authority; good faith compliance with any order, request or directive of any governmental authority; or any other cause reasonably beyond the control of a party, whether similar or dissimilar to those above and whether foreseeable or unforeseeable, which, by the exercise of due diligence, such party could not have been able to avoid or overcome. A party's inability economically to perform its obligations under the Contract shall not constitute an event of force majeure.
		

		
			 
		

		
			This clause shall not apply to any obligations to pay, indemnify or provide security or to any Concentrate for which vessel, truck or rail wagon space has been booked, pricing has been established, the quotational period has commenced or payment has been made unless the Buyer has expressly consented in writing.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						9

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			SUSPENSION OF QUOTATIONS
		

		
			 
		

		
			The metal prices and currency quotations specified under this contract are the quotations in general use for the pricing of the metal content of concentrate.
		

		
			 
		

		
			In the event that any of these price quotations cease to exist or cease to be published or should no longer be internationally recognised as the basis for the settlement of concentrate contracts, then upon the request of either party, Seller and Buyer will promptly consult together with a view to agree on a new pricing basis and on the date for bringing such basis into effect. The basic objective will be to secure the continuity of fair pricing.
		

		
			 
		

		
			DISPUTE RESOLUTION
		

		
			 
		

		
			Any dispute or claim arising out of or relating to this contract, or a breach thereof (a "Dispute"), shall be decided by final and binding arbitration in New York before three arbitrators. The arbitration shall be administered by the American Arbitration Association (the "AAA") in accordance with the United States Arbitration Act (the "Act") and the AAA's Commercial Arbitration Rules (the "Rules"). If there is a conflict between the provisions of this clause and the provisions of the Act or the Rules, the provisions of this clause shall prevail. If there is a conflict between the Act and the Rules, the provisions of the Act shall prevail. Either party may notify the other that the Dispute is to be resolved pursuant to this clause, and in that notice name one arbitrator selected by it. Within 15 (fifteen) calendar days after the receipt of such notice, the other party shall select an arbitrator and notify the party which initiated the arbitration of the name of its arbitrator. Within 15 (fifteen) calendar days after notice is given of the appointment of the second arbitrator, the two arbitrators selected shall select a third arbitrator. If any party fails to appoint an arbitrator or the party- appointed arbitrators fail to appoint the third arbitrator within the prescribed 15 (fifteen) calendar day period then, on reasonable notice to the other party, either party may ask the AAA to appoint such arbitrators within 15 (fifteen) calendar days of the request therefore with due regard for the selection criteria herein. The arbitrators shall be qualified by education, experience or training to render a decision upon the issues of the Dispute.
		

		
			 
		

		
			The arbitrators promptly shall hear and determine (after giving the parties due notice of hearing and reasonable opportunity to be heard) the issues submitted to them and shall render their decision within 60 (sixty) calendar days after they have notified the parties that the arbitration hearings have been closed or, if oral hearings have been waived, from the date of the AAA's transmittal of the parties’ final statements and proofs to the arbitrators. Pending the final decision of the arbitrators, both parties shall proceed diligently with performance of all obligations under this contract, including the payment of all sums not in dispute. Notwithstanding the foregoing the parties reserve the right to apply to any court of competent jurisdiction for the purpose of enforcing the provisions of this clause or obtaining security or other provisional relief to satisfy or effectuate an eventual arbitration award, including without limitation attachment and injunctive relief. The commencement of any such action shall not constitute a waiver of the right to arbitration nor shall it prejudice in any way the right to proceed to arbitration.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						10

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			The arbitrators shall render their decision and the reasons therefore in writing. The decision of no less than a majority of the arbitrators shall be final and binding upon the parties without appeal to the courts. Judgment may be rendered upon such decision in a court of competent jurisdiction. The arbitrators are not empowered to render any award other than monetary damages or to award damages inconsistent with the provisions of this contract, any transaction or in excess of compensatory damages and each party waives its right, if any, to recover any damages in excess of those provided for under this contract or any transaction. Each party shall bear the costs and expenses of its own arbitrator, attorneys and witnesses and the parties shall share equally the costs of the third arbitrator and any hearing expenses. In determining any matter submitted to arbitration, the arbitrators will apply the law governing this contract.
		

		
			 
		

		
			CHOICE OF LAW
		

		
			 
		

		
			This contract shall be governed by and construed in accordance with the laws of the state of New York, United States of America, excluding any conflicts of law provisions that would require the application of the laws of any other jurisdiction. Each party hereby consents to such jurisdiction for all purposes of this contract.
		

		
			 
		

		
			The United Nations Convention of Contracts for the International Sale of Goods (1980) shall not apply to this contract.
		

		
			 
		

		
			TAXES AND TARIFFS
		

		
			 
		

		
			Any taxes, tariffs and duties whether existing or new on the Concentrate or contained metals or on commercial documents relating thereto or on the cargo itself, imposed in the country of origin shall be borne by the Seller.
		

		
			 
		

		
			Any taxes, tariffs and duties whether existing or new on the Concentrate or contained metals or on commercial documents relating thereto or on the cargo itself, imposed in the country of discharge and/or the importing country shall be borne by Buyer.
		

		
			 
		

		
			LICENSES
		

		
			 
		

		
			Seller undertakes that all the necessary export licences and all other authorisations required for the Concentrate have been obtained (and/or will be obtained) for the entire quantity covered by this contract. Seller furthermore guarantees that such licences will remain in force for the full life of this contract.
		

		
			 
		

		
			ASSIGNMENT
		

		
			 
		

		
			Without the prior written consent of the other party, which shall not be unreasonably withheld, neither party may assign or create a trust or otherwise transfer its rights nor obligations under this contract in full or in part.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						11

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			 
		

		
			 
		

		
			THIRD PARTY OF RIGHTS
		

		
			 
		

		
			Any person who is not a party to this contract may not enforce any term of it. The parties agree that the Contracts (Rights of Third Parties) Act 1999 shall not apply to this contract or any other agreement entered pursuant to it.
		

		
			 
		

		
			LIMITATION OF LIABILITY
		

		
			 
		

		
			Neither the Seller nor the Buyer shall be liable, whether in contract or in tort or otherwise, for indirect, consequential or special damages or losses of whatsoever nature, however caused.
		

		
			 
		

		
			Under no circumstances shall Buyer's liability exceed the value of the Concentrate as at the date of shipment.
		

		
			 
		

		
			INCOTERMS
		

		
			 
		

		
			Insofar as not inconsistent herewith INCOTERMS 2010 (and any later amendments thereto) shall apply to this contract.
		

		
			 
		

		
			CHANGE OF CONTROL
		

		
			 
		

		
			In the event of any actual or prospective change in the organisation, control or management of a party , including without limitation, a change to the majority shareholding or privatisation or equivalent process, subject always to DEFAULT, this contract will not be changed or in any way modified and shall continue in full force and affect.
		

		
			 
		

		
			NOTICES
		

		
			 
		

		
			No notice or communication with respect to this contract shall be effective unless it is given in writing and delivered or sent by facsimile or electronic mail to the other party at the address set out herein, or to such other address as each party otherwise notifies the other party.
		

		
			 
		

		
			Notices given by first class mail shall be deemed to have been delivered when received. Notices sent by facsimile or electronic mail shall be deemed to have been received upon completion of successful transmission if sent during normal office hours at the place of receipt. Any facsimile or electronic mail transmitted outside of normal office hours at the place of receipt shall be deemed to have been received on the next Business Day.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						12

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			 
		

		
			 
		

		
			All notices, requests and other communications hereunder shall be addressed:
		

		
			 
		

			
					
						If to Seller:

					
					
						DON DAVID GOLD MEXICO S.A. DE C.V.
Las Rosas No. 339
Col. Reforma, Oaxaca, Oaxaca
CP 68050
Mexico
Ph. +52 951 5216 8258

				
	
					
						 

					
					
						 

				
	
					
						If to Buyer:

					
					
						TRAFIGURA MEXICO„ S.A. DE C.V.
Reforma 115 piso 21, despacho 2102
Col. Lomas de Chapultepec, del. Miguel Hidalgo
Mexico D.F., Mexico
Phone: + 52 55 4021 69

				

		
			 
		

		
			WAIVERS
		

		
			 
		

		
			No waiver by Buyer of any right, power or remedy or of any provision of this contract and no amendment of any provision of this contract shall be effective unless and to the extent that it is expressly made and reduced to writing.
		

		
			 
		

		
			SEVERABILITY
		

		
			 
		

		
			The invalidity, illegality or unenforceability of any one or more of the provisions of this contract shall in no way affect or impair the validity and enforceability of the other provisions of this contract.
		

		
			 
		

		
			CONFIDENTIALITY
		

		
			 
		

		
			The existence of and terms of this contract shall be held confidential by the parties save to the extent that such disclosure is made to a party's banks, accountants, auditors, legal or other professional advisers, or as may be required by law, a competent court or a liquidator or administrator of a party, or the other party has consented in writing to such disclosure.
		

		
			 
		

		
			ENTIRE AGREEMENT
		

		
			 
		

		
			This contract constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes any previous agreements between the parties relating to the subject matter. Each party acknowledges and represents that it has not relied on or been induced to enter into this contract by any representation, warranty or undertaking other than those expressly set out in this contract. A party is not liable to the other party for a representation, warranty or undertaking of whatsoever nature that is not expressly set out in this contract.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						13

				

		

			 

		

 

		

			

		

		

			 

		

		

		
			 
		

		
			FUTURE PRODUCTION
		

		
			 
		

		
			While the Seller has the right to look at opportunities for selling the concentrates to other parties after the termination of this Contract, both parties agree to discuss in good faith a commercial off take agreement for year 2018 and beyond.
		

		
			 
		

		
			IN WITNESS WHEREOF the parties have executed this document as of the respective dates specified below with effect from the Effective Date specified on the first page of this document.
		

		
			 
		

		
			Accepted:
		

		
			 
		

		
			 
		

			
					
						/s/ Jason Reid

					
					
						 

					
					
						/s/ Juan Antonio Moran

				
	
					
						DON DAVID GOLD MEXICO, S.A. DE.CV.

					
					
						    

					
					
						TRAFIGURA MEXICO, S.A. DE C.V.

				
	
					
						(signed by fully authorised signatory)

					
					
						 

					
					
						(signed by fully authorised signatory)

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						Jason Reid

					
					
						 

					
					
						Name:

					
					
						JUAN ANTONIO MORAN

				
	
					
						Date:

					
					
						01-03-17

					
					
						 

					
					
						Date:

					
					
						01-03-17

				

		
			 
		

		 

		

			 

		

			

					

						 

					

					

						CONTRA TO N° 303-l 6CMX-230-0-P (EF)

					

					

						14goro_Ex10_5

		

			Exhibit 10.5

		

		
			GOLD RESOURCE CORPORATION
		

		
			2016 EQUITY INCENTIVE PLAN
		

		
			NOTICE OF GRANT OF NON-QUALIFIED STOCK OPTIONS
		

		
			 
		

		
			This Non-Qualified Stock Option Agreement consists of this Notice of Grant of Non-Qualified Stock Options (the “Grant Notice”) and the Non-Qualified Stock Option Award Agreement immediately following. The Non-Qualified Stock Option Agreement sets forth the specific terms and conditions governing Non-Qualified Stock Option Awards under the Gold Resource Corporation 2016 Equity Incentive Plan (the “Plan”).  All of the terms of the Plan are incorporated herein by reference.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Name of Optionee:

					
					
						 

				
	
					
						Total No. of shares of Stock subject to the Option:

					
					
						 

				
	
					
						Grant Date:

					
					
						 

				
	
					
						Expiration Date:

					
					
						 

				
	
					
						Exercise Price:

					
					
						 

				
	
					
						Vesting Schedule:

					
					
						[Thirty-three percent (33%) of the shares of Stock subject to the Option shall vest and become exercisable on the first anniversary of the Grant Date, another thirty-three percent (33%) of the shares of Stock subject to the Option shall vest and become exercisable on the second anniversary of the Grant Date, and the final thirty-four percent (34%) of the shares of Stock subject to the Option shall vest and become exercisable on the third anniversary of the Grant Date.]

				

		
			 
		

		
			by executing this NON-QUALIFIED stock option AGREEMENT, optionee accepts participation in the plan, acknowledges that he or she has read and understands the provisions of this grant NOTICE and the plan, and agrees that this grant NOTICE, the award agreement AND THE pLAN shall govern the terms and conditions of thIS AWARD.
		

		
			IN WITNESS WHEREOF, the Company and the Optionee have duly executed this Non-Qualified Stock Option Agreement, and this Non-Qualified Stock Option Agreement shall be effective as of the Grant Date set forth above.
		

		

		 

 

	
					
						

					
						GOLD RESOURCE CORPORATION

					
						 

					
						 

					
						By: ____________________________________

					
						 

					
						Print Name: _______________________

					
						 

					
						Its: ______________________________

					
					
						OPTIONEE

					
						 

					
						 

					
						

					
						Signature

					
						 

					
						 

					
						

					
						Print Name

				

		
			

		 

		

			2

		

		

			 

		

 

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT
		

		
			UNDER THE GOLD RESOURCE CORPORATION 
		

		
			2016 EQUITY INCENTIVE PLAN
		

		
			This Non-Qualified Stock Option Award Agreement (this “Agreement”) is between Gold Resource Corporation, a Colorado corporation (the “Company”) and the individual (the “Optionee”) identified in the Notice of Grant of Non-Qualified Stock Options (the “Grant Notice”), and is effective as of the date of grant referenced in the Grant Notice (the “Grant Date”).  This Agreement supplements the Grant Notice to which it is attached, and, together, with the Grant Notice, constitutes the “Non-Qualified Stock Option Agreement” referenced in the Grant Notice. 
		

		
			RECITALS
		

			
	
			
				 A.
			The Board of Directors of the Company (the “Board”) has adopted and the shareholders have approved the Gold Resource Corporation 2016 Equity Incentive Plan (the “Plan”) to promote the success an enhance the value of the Company by linking the personal interests of the Plan’s participants to those of the Company’s shareholders by providing such individuals with an incentive for outstanding performance.

			
	
			
				 B.
			The Compensation Committee of the Board has approved the grant of Non-Qualified Stock Options to Optionee pursuant to Section 6.1 of the Plan.

			
	
			
				 C.
			To the extent not specifically defined in this Agreement, all capitalized terms used in this Agreement shall have the meaning set forth in the Plan.

			
	
			
				 D.
			In consideration of the mutual covenants and conditions hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Optionee agree as follows:

		
			AGREEMENT
		

			
	
			
				 1.
			Grant of Option.  Subject to the terms of this Agreement and Section 6.1 of the Plan, the Company grants to Optionee the right and option to purchase from the Company all or any part of the aggregate number of shares of Stock specified in the Grant Notice (“Option”).  The Option granted under this Agreement is not intended to be an “Incentive Stock Option” under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

			
	
			
				 2.
			Exercise Price.  The exercise price under this Agreement is the exercise price per share of Stock specified in the Grant Notice, as determined by the Committee, which shall not be less than the Fair Market Value of a share of Stock on the Grant Date.

			
	
			
				 3.
			Vesting of Option.  The Option shall vest and become exercisable according to the vesting schedule set forth in the Grant Notice.

			
	
			
				 4.
			Exercise of Option.  This Option may be exercised in whole or in part at any time after it vests in accordance with Section 3 and before the Option expires by delivery of a written 

		 

		

			3

		

		

			 

		

 

	notice of exercise (under Section 5 below) and payment of the exercise price.  The exercise price may be paid in cash, or shares of Stock held for longer than six months (through actual tender or by attestation), or such other method permitted by the Committee (including broker-assisted “cashless exercise” and “net-exercise” arrangements) and communicated to the Optionee before the date the Optionee exercises the Option.

			
	
			
				 5.
			Method of Exercising Option.  Subject to the terms of this Agreement, the Option may be exercised by timely delivery to the Company of written notice in the form of Exhibit A attached hereto, which notice shall be effective on the date received by the Company.  The notice shall state the Optionee’s election to exercise the Option and the number of underlying shares in respect of which an election to exercise has been made.  Such notice shall be signed by the Optionee, or if the Option is exercised by a person or persons other than the Optionee because of the Optionee’s death, such notice must be signed by such other person or persons and shall be accompanied by proof acceptable to the Committee of the legal right of such person or persons to exercise the Option.

			
	
			
				 6.
			Term of Option.  The Option granted under this Agreement expires, unless sooner terminated, ten (10) years from the Grant Date, through and including the normal close of business of the Company on the tenth (10th) anniversary of the Grant Date (the “Expiration Date”).

			
	
			
				 7.
			Termination of Employment (or Service).  

			
	
			
				 (a)
			If the Optionee terminates employment (or service) for any reason other than death, Disability, or Cause, the Option shall lapse on the earlier of: (i) the Expiration Date; or (ii) ninety (90) days after the date the Optionee terminates employment (or service). The Option may be exercised following the Optionee’s termination of employment (or service) only if the Option was exercisable by Optionee immediately prior to his or her termination of employment (or service).  In no event shall the Option be exercisable after the Expiration Date.

			
	
			
				 (b)
			If the Optionee terminates employment (or service) by reason of death or Disability, the Option shall lapse on the earlier of: (i) the Expiration Date; or (ii) twelve (12) months after the date the Optionee terminates employment (or service) due to death or Disability. The Option may be exercised following the death or Disability of Optionee only if the Option was exercisable by Optionee immediately prior to his or her death or Disability.  In no event shall the Option be exercisable after the Expiration Date.

			
	
			
				 (c)
			If the Optionee terminates employment (or service) for Cause, the Option shall immediately terminate and lapse, which means that the Option shall not be exercisable by the Optionee regardless of whether it is already vested.

			
	
			
				 8.
			Withholding.  As described in Article 15 of the Plan, the Company shall have the right to deduct or withhold, or to require the Optionee to remit to the Company, an amount necessary to satisfy any federal, state or local taxes (including the Optionee’s FICA obligation) as are required by law to be withheld with respect to the Options granted pursuant this Agreement.

			
	
			
				 9.
			Nontransferability of Options.  The Options granted by this Agreement shall not be transferable by the Optionee or any other person claiming through the Optionee, either 

		 

		

			4

		

		

			 

		

 

	voluntarily or involuntarily, except by will or the laws of descent and distribution or as otherwise provided by the Committee pursuant to Section 6.1(f) and Article 13 of the Plan.

			
	
			
				 10.
			No Right to Continued Employment (or Service).  This Agreement shall not be construed to confer upon the Optionee any right to continue employment (or service) with the Company and shall not limit the right of the Company, in its sole and absolute discretion, to terminate Optionee’s employment (or service) at any time.

			
	
			
				 11.
			Administration.  This Agreement shall at all times be subject to the terms and conditions of the Plan and the Plan shall in all respects be administered by the Committee in accordance with the terms of and as provided in the Plan.  The Committee shall have the sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the Committee with respect thereto and to this Agreement shall be final and binding upon the Optionee and the Company.  In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

			
	
			
				 12.
			Adjustments.  The number of shares of Stock issued to Optionee pursuant to this Agreement shall be adjusted by the Committee pursuant to Section 5.4 of the Plan, in its discretion, in the event of a change in the Company’s capital structure.

			
	
			
				 13.
			Securities Laws Compliance.  The Company shall not be required to deliver any shares of Stock pursuant to the exercise of the Option if, in the opinion of counsel for the Company, such issuance would violate the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, or any other applicable federal or state securities laws or regulations.

			
	
			
				 14.
			No Shareholders Rights.  The Optionee will have no voting rights or any other rights as a shareholder of the Company with respect to the Option until the Company issues the stock certificates representing the shares of Stock underlying the Option.

			
	
			
				 15.
			Copy of Plan.  By the execution of this Agreement, the Optionee acknowledges receipt of a copy of the Plan.

			
	
			
				 16.
			Governing Law.  This Agreement shall be interpreted and administered under the laws of the State of Colorado.

			
	
			
				 17.
			Amendment.  Except as otherwise provided in the Plan, this Agreement may be amended only by a written agreement executed by the Company and the Optionee.  The provisions of this Agreement may not be waived or modified unless such waiver or modification is in writing and signed by a representative of the Committee.

			
	
			
				 18.
			Clawback.  Pursuant to Section 13.7 of the Plan, every Award issued pursuant to the Plan is subject to potential forfeiture or “clawback” to the fullest extent called for by applicable federal or state law or any policy of the Company.  By accepting this Award, Optionee agrees to be bound by, and comply with, the terms of any such forfeiture or “clawback” provision imposed by applicable federal or state law or prescribed by any policy of the Company.

		
			MANY OF THE PROVISION OF THIS AWARD AGREEMENT ARE SUMMARIES OF SIMILAR PERTINENT PROVISIONS OF THE PLAN.  TO THE EXTENT THAT THIS 

		 

		

			5

		

		

			 

		

 

AGREEMENT IS SILENT ON AN ISSUE OR THERE IS A CONFLICT BETWEEN THE PLAN AND THIS AGREEMENT, THE PLAN PROVISIONS SHALL CONTROL.
		

		
			
		

		
			

		 

		

			6

		

		

			 

		

 

		

		
			EXHIBIT A 
		

		
			 
		

		
			NOTICE AND AGREEMENT OF EXERCISE OF 
		

		
			NON-QUALIFIED STOCK OPTION AWARD UNDER THE 
		

		
			2016 EQUITY INCENTIVE PLAN
		

		
			
		

		
			I hereby exercise my Gold Resource Corporation Stock Option granted pursuant to that  Non-Qualified Stock Option Award Agreement dated July 6, 2016 (the “Agreement”) as to _______________ shares of Gold Resource Corporation Common Stock (the “Option Shares”).
		

		
			Enclosed are the documents and payment specified in Paragraphs 4 and 8 of the Agreement.
		

		
			I understand that no Option Shares will be issued unless and until, in the opinion of Gold Resource Corporation (the “Corporation”), any applicable registration requirements of the Securities Act of 1933, as amended (the “Act”), and any applicable listing requirements of any securities exchange on which stock of the same class is then listed, and any other requirements of law or any regulatory bodies having jurisdiction over such issuance and delivery, shall have been fully complied with.  I hereby acknowledge, represent, warrant and agree, to and with the Corporation as follows:
		

		
			a.Unless the shares have been registered, the Option Shares I am purchasing are being acquired for my own account for investment purposes only and with no view to their resale or other distribution of any kind, and no other person (except, if I am married, my spouse) will own any interest therein.
		

		
			b.I will not sell or dispose of my Option Shares in violation of the Act or any other applicable federal or state securities laws.
		

		
			c.If and so long as I am subject to reporting requirements under Section 16(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), I recognize that any sale by me or my immediate family of the Corporation’s Common Stock within six months before the date of grant of my stock option may create liability for me under Section 16(b) of the Exchange Act.
		

		
			d.I have consulted with counsel regarding the application of Section 16(b) to this exercise of my option.
		

		
			e.I will consult with counsel before I make any sale of the Corporation’s Common Stock, including the Option Shares.
		

		
			f.I agree that the Company may, without liability for its good faith actions, place legend restrictions upon my Option Shares and issue “stop transfer” instructions requiring compliance with applicable securities laws and the terms of the Agreement.
		

		
			

		 

		

			7

		

		

			 

		

 

		

		
			 
		

		
			The number of Option Shares specified above are to be issued in the following registration:
		

		
			 
		

		
			________________
		

		
			(Date)
		

		
			 
		

		
			 
		

		
			____________________________________________________
		

		
			(Print Full Name)(Signature)
		

		
			 
		

		
			 
		

		
			______________________________________________________
		

		
			(Optional—Spouse’s full name if (Address)
		

		
			you wish joint registration)___________________________
		

		
			 
		

		
			___________________________
		

		
			 
		

		
			
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}]]