Document:

Exhibit 10.54

 

EQUIPMENT FINANCE AGREEMENT

 

AGREEMENT #:_______________________

 

	CUSTOMER	 	VENDOR OF EQUIPMENT ("Supplier")
	EPAZZ, INC.	 	DYNAMIC HEALTH IT
	BILLING ADDRESS:	 	4016 CANAL STREET 1ST FLOOR
	CHICAGO, IL 60606	 	NEW ORLEANS, LA 70119
	COUNTY:	 	 

 

EQUIPMENT DESCRIPTION (Attach separate Equipment List
if needed)     S new    £
used

 

 

SEE EQUIPMENT LIST

 

EQUIPMENT LOCATION: Complete only if Equipment
will not be located at Customer's address above.

ADDRESS: 309 W. Washington St. Chicago, IL 60606

 

SCHEDULE OF PAYMENTS

Term (Months): 36

Number of Payments: 36

Amount of Each Payment: $585.25 x Number Prepayment(s): 1 +
Administrative Fee $395.00 + Security Deposit $0.00= Initial Amount Due: $980.25

 

	Payment Due Date

                                                                      £ 1st       £ 15th 
	 	Pro rata rental is calculated as follows: (Monthly Payment
    divided by 30 days = Daily Rate) x (# of Days Between Acceptance Date and First Payment Date) = Total. Pro rata payment is
    billed on your first invoice.

 

THIS EQUIPMENT FINANCE AGREEMENT ("Agreement") IS
SUBJECT TO THE TERMS AND CONDITIONS PRINTED HEREON AND ON THE FOLLOWING PAGES, ALL OF WHICH ARE MADE A PART HEREOF AND WHICH CUSTOMER
ACKNOWLEDGES HAVING READ. PLEASE READ CAREFULLY BEFORE SIGNING.

 

THIS AGREEMENT, WHICH CONSISTS OF 5 PAGES, IS NOT BINDING UNTIL
ACCEPTED BY SECURED PARTY.

 

	CUSTOMER: EPAZZ, INC.	 	SECURED PARTY: DIRECT CREDIT FUNDING, INC.
	 	 	 
	/s/ Shaun Passley	 	By      /S/ SIGNATURE
	SHAUN PASSLEY, PRESIDENT AND INDIVIDUALLY	 	(Signature only)
	 	 	 
	8/14/2012	 	President
	(Date)	 	(Title)

 

 

THIS IS A NON-CANCELABLE AGREEMENT FOR
THE TERM INDICATED

 

1. AGREEMENT. Subject to the terms of this Agreement, rather
than pay the cash price, Customer has chosen to request that Secured Party finance for Customer the acquisition of personal property
described above together with any replacement parts, additions, repairs or accessories now or hereafter incorporated in or affixed
to (hereinafter referred to as the "Equipment"). Customer hereby promises to pay to Secured Party all amounts described
in this Agreement.

 

CONTINUED ON FOLLOWING PAGES

 

Page 1 of 5 Page Agreement

    	 

    	 

    

 

2. SECURITY INTEREST. The Customer is the owner of the
Equipment and title to the Equipment shall, prior to foreclosure, at all limes remain with the Customer. Customer hereby assigns,
transfers, pledges and grants to the Secured party a first priority security interest in and lien upon the Equipment, and all
accessions thereto, substitutions and replacements therefor, and income and proceeds (including insurance proceeds) thereof to
secure the prompt payment and performance as and when due of all obligations and indebtedness of the Customer to the Secured Party,
now existing or hereafter created under this Agreement and otherwise. Customer authorizes Secured Party to file and/or record
a financing statement(s) under the Uniform Commercial Code ("UCC") or similar instrument to perfect Secured Party's
security interest in the Equipment and related property and agrees to take any other action the Secured Party requests to protect
its rights under this Agreement including any landlord or mortgagee waiver. The Equipment shall remain personal property even
if installed in or attached to real property. The security interest granted under this Section 2 shall only be released and terminated
when all obligations of the Customer to the Secured Party have been indefeasibly paid in full in cash.

 

3. CUSTOMER REPRESENTATIONS. Customer acknowledges and
agrees that Customer has selected both: 1) the Equipment and 2) the Supplier(s). Customer acknowledges that Secured Party has not
participated in any way in Customer's selection of the Equipment or the Supplier(s) and Secured Party has not selected, manufactured,
or supplied the Equipment. Customer also acknowledges that no salesman or agent of the Supplier is authorized to waive or alter
any term or condition of this Agreement and no representation as to the Equipment or any matter by the Supplier shall in any way
effect Customer's duty to pay the monthly payments and perform its other obligations as set forth in this Agreement Customer
represents that its exact legal name, state of formation, location of its chief executive office and/or its place of residence
as applicable have been correctly identified to Secured Party.

 

4. ASSIGNMENT BY CUSTOMER PROHIBITED WITHOUT SECURED PARTY’S
PRIOR WRITTEN CONSENT. CUSTOMER SHALL NOT ASSIGN ANY OF ITS RIGHTS IN THE EQUIPMENT OR THIS AGREEMENT, LEASE THE EQUIPMENT,
PLEDGE OR TRANSFER THIS AGREEMENT, OR OTHERWISE DISPOSE OF THE EQUIPMENT COVERED HEREBY.

 

5. APPLICABLE LAW AND VENUE. ALL MATTERS INVOLVING THE
CONSTRUCTION, VALIDITY, PERFORMANCE, OR ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF WASHINGTON.
CUSTOMER CONSENTS TO THE PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF WASHINGTON AND AGREES THAT
AT SECURED PARTY’S SOLE OPTION, JURISDICTION AND LOCATION FOR ANY DISPUTE, SUIT OR ACTION ARISING UNDER OR IN RELATION TO THE AGREEMENT,
AND ALL DOCUMENTS EXECUTED IN CONNECTION THEREWITH, SHALL BE IN KING COUNTY, STATE OF WASHINGTON. CUSTOMER AGREES THAT CUSTOMER
WILL BRING SUIT AGAINST THE SECURED PARTY ONLY IN SUCH COURTS. CUSTOMER WAIVES THE RIGHT OF JURY TRIAL. SECURED PARTY SHALL HAVE
THE OPTION OF COMMENCING AN ACTION IN ANY COURT HAVING JURISDICTION OVER THE SUBJECT MATTER AND PARTIES TO THE TRANSACTION.

 

6. NO WARRANTY. SECURED PARTY, NOT BEING THE MANUFACTURER
OF THE EQUIPMENT, NOR MANUFACTURER’S AGENT, MAKES NO WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE FITNESS FOR
A PARTICULAR USE OR OTHERWISE, QUALITY, DESIGN, CONDITION, CAPACITY, SUITABILITY, MERCHANTABILITY OR PERFORMANCE OF THE EQUIPMENT
OR OF THE MATERIAL OR WORKMANSHIP THEREOF. IT BEING AGREED THAT THE EQUIPMENT IS FINANCED "AS IS" AND THAT ALL SUCH RISKS,
AS BETWEEN SECURED PARTY AND CUSTOMER, ARE TO BE BORNE BY CUSTOMER AT ITS SOLE RISK AND EXPENSE. CUSTOMER ACCORDINGLY AGREES NOT
TO ASSERT ANY CLAIM WHATSOEVER AGAINST SECURED PARTY BASED THEREON.

 

7. TERM. The initial term of this Agreement is set forth
on the first page of this Agreement. The term begins on the earlier of the following dates: (a) the date Customer requests Secured
Party to make payment to the Supplier; or (b) the Acceptance Date as indicated on the Verification Certificate and shall end upon
the earlier of (a) full performance and observance by Customer of each and every term, condition and covenant set forth in this
Agreement, and any Schedules hereto and any extensions hereof or (b) Secured Party's termination of this Agreement pursuant to
Section 17 hereof.

 

8. PAYMENT; SECURITY DEPOSIT. The periodic payments
shall be in the amount designated in the schedule of payments and shall commence on the indicated payment due date immediately
following the Equipment Acceptance Date. Customer shall pay Secured Party payments on or before the due date, at the office of
Secured Party or to such other person or place as Secured Party may designate in writing. Customer agrees to pay a pro rata payment
(based on the monthly payments) for the period from the Acceptance Date, to the due date of the first payment. Said pro rata payment
shall be in addition to the first payment and shall be made simultaneously with the first payment. Any security deposit shall
remain as security for performance of all the terms and conditions of this Agreement. In the event any default shall be made in
the performance of any of Customer's obligations under this Agreement, Secured Party shall have the right, but shall not be obligated,
to apply the security deposit to the curing of such default. On the expiration or earlier termination or cancellation of this
Agreement, or any extension or renewal hereof, provided Customer has paid all of the payments called for and fully performed all
other provisions of this Agreement, Secured Party will return to Customer any then remaining balance of said security deposit,
without interest. Said security deposit may be commingled with Secured Party's other funds.

 

9. LATE CHARGES AND COLLECTION CHARGES. A late charge
of 10% of the total payment, or $10, whichever is greater, will be assessed when a payment is not received on or before the due
date. An additional late charge will be assessed for each month a payment remains unpaid. If Customer's delinquency requires additional
collection efforts, a charge will be assessed in accordance with Secured Party's collection charge schedule. In addition, Customer
shall be assessed for any charges levied by an outside collection agency following Customer's default.

 

10. LOCATION AND USE OF EQUIPMENT. Customer shall keep
the equipment at the location designated in the Agreement, unless Secured Party, in writing, permits its removal. The Equipment
shall be used solely in the conduct of Customer's business. Customer shall notify Secured Party if equipment is used for transporting
or storing product considered hazardous material. Customer warrants that Equipment is used for commercial or business purposes
and not for consumer, personal, home or family purposes.

 

11. OPERATION, MAINTENANCE AND REPAIR. Secured Party
shall not be obligated to Install, erect, test, adjust, service or make repairs or replacements to the Equipment. Customer shall
bear the expense of all necessary repairs, maintenance, operation, and replacements required to be made to maintain the Equipment
in proper working condition, using as a guide the maintenance program described in the owner's manual, if any, for each item of
Equipment and shall perform all maintenance required to insure full validation of a manufacturer's warranty on the Equipment. Customer
shall comply with all laws and regulations relating to ownership, possession, operation, use and maintenance of the Equipment.
No Equipment shall be used contrary to its intended use, or the provisions of any insurance policy covering the Equipment.

 

12. NOTICES. Services of all notices under this agreement
shall be sufficient if given personally or mailed to Secured Party at 3455 S. 344th Way, Suite 300, Federal Way, WA 98001, or P.O.
Box 4568, Federal Way, WA 98063, or to Customer at Customer's address set forth above or at such other address as a party may provide
in writing from time to time. Any notices required by this Agreement shall be deemed to be delivered when a record property directed
to the intended recipient has been (a) deposited with the US Postal Service. (b) transmitted by facsimile, (c) transmitted through
the Internet, or (d) has been personally delivered.

 

continued
on following pages

Page 2  of 5 Page Agreement

    	 

    	 

    

 

13. LIABILITY AND INDEMNITY; LOSS AND DAMAGE. Customer
shall indemnify and hold Secured Party harmless from liability expense of every kind or nature from whatever cause, including,
but not limited to, the liability arising under any statute, ordinance or regulation in connection with the use of the Equipment
and from all liability on account of any claim for personal injury, death, or property damage to any person or party whatsoever,
including Customer, arising out of the manufacture, selection, operation, use, maintenance, or delivery of the Equipment While
it is not anticipated that Secured Party shall have any liability for torts related to the Equipment, this indemnity covers tort
proceedings including any strict liability claim, any claim under another theory related to latent or other defects and any patent,
trademark or service mark infringement claim. Such Indemnification shall survive the expiration, cancellation, or termination of
this Agreement Customer hereby assumes and shall bear the entire risk of loss and damage to the Equipment from any cause whatsoever,
regardless of whether the loss is insured. In the event of loss or damage to the Equipment, or to any part thereof, Customer, at
the option of the Secured Party, shall (a) Replace the same in good condition, repair and working order; or (b) Replace the same,
with like property of the same or greater value provided, however, at Customer's option, the remaining obligation under this Agreement
can be satisfied by paying the Secured Party in cash the Stipulated Agreement Value as of the loss date. Stipulated Agreement Value
equals the sum of: 1) all amounts due by Customer to Secured Party under this Agreement up to the date of the loss or termination
including, but not limited to, all Monthly Payment Amounts, all taxes, all service charges and interest on delinquent payments
and any cost of collections owed pursuant to sections 17 and 18, 2) the accelerated balance of the total amounts due for the remaining
term of this Agreement discounted to present value at a discount rate of 5% per annum and 3) all other amounts due from Customer
to Secured Party including interest and service charges through the date of full payment to the Secured Party of all Customer obligations.
Except as expressly provided in this paragraph, total or partial destruction of any of the Equipment or total or partial loss of
use or possession thereof to Customer shall not release or relieve Customer from the duty to pay the payments herein provided.

 

14. INSURANCE. Customer, at its own expense, shall keep
the Equipment insured for the full term of this Agreement for the full insurable value thereof against all risks of loss or damage,
and against such other risks in such amounts as Secured Party may specify, including liability Insurance, with limits not less
than $500,000 unless Secured Party specifies a different amount due to the equipment location or use of equipment (bodily injury
and property damage) combined single limit. Provided, however, in those instances where Customer is financing the Equipment defined
by Secured Party as "mobile Equipment," Customer shall procure and maintain, for the full Agreement term, all risk physical
damage insurance as opposed to insurance against fire and theft, with extended or combined coverage. All insurance policies must
provide that no cancellation shall be effective without thirty (30) days' prior written notice to Secured Party. Customer shall
deliver to Secured Party the policies or evidence of insurance with a standard form of endorsement attached thereto showing Secured
Party to be named as an additional insured, together with receipts for the premiums thereunder. Customer shall, at the request
of Secured Party, name as Loss Payee such party who may have a security interest in the Equipment.

 

15. CUSTOMER'S FAILURE TO PAY TAXES, INSURANCE, ETC.
Should Customer fail to make any payment or do any act as herein provided, then Secured Party shall have the right, but not the
obligation without notice to or demand upon Customer, and without releasing Customer from any obligation hereunder.to make or do
the same and to pay, purchase, contest, or compromise any encumbrance, charge or lien which in the judgment of Secured Party appears
to affect the Equipment, and in exercising such rights, incur any liability and expend whatever amounts In Its absolute discretion
it may deem necessary therefore. Should Customer fail to provide Secured Party the policies or evidence of insurance described
herein, Secured Party shall have the right, but not the obligation, to secure insurance on the Equipment in such form and amount
as Secured Party deems reasonable to protect Secured Party's interests. Customer understands that, if Secured Party secures insurance
on the Equipment the insurance may not name Customer as an insured and may not fully protect Customer's Interests. Customer agrees
that, if Secured Party secures insurance on the Equipment, Customer will pay an insurance charge that may be substantially higher
than the premium that Customer would pay if Customer placed said insurance independently. Customer agrees that, In addition to
the premium, the insurance charge Customer is required to pay Secured Party will Include an Interest charge, administrative and
processing fees, which will result In profit to Secured Party and Its agents. All sums so incurred or expended by Secured Party
shall be without demand immediately due and payable by Customer and shall bear Interest at eighteen percent (18%) per annum if
not prohibited by law, otherwise at the highest lawful contract rate. The parties agree that any claim, dispute, or controversy
regarding insurance or any fee charged by Secured Party for securing insurance or for any other action taken by Secured Party under
this Agreement will, upon demand by either party, be submitted to binding arbitration conducted by the American Arbitration Association
in Seattle, Washington; provided however, such agreement does not authorize class arbitration or entitle any party to bring third
parties or other claims into the arbitration proceeding. This agreement to arbitrate certain claims does not limit the right of
any party to commence or continue any legal action with respect to other claims arising under this Agreement.

 

16. AUTHORITY TO SIGN. If Customer is a Limited Liability
Company ("LLC"), partnership or corporation, the person signing the Agreement on behalf of such LLC, partnership or corporation
hereby warrants that (s)he has full authority from the LLC, partnership or corporation to sign this Agreement and obligate the
LLC, partnership or corporation.

 

17. DEFAULT AND REMEDIES. If (a) Customer fails to make
any payment required pursuant to this Agreement when due, (b) Customer fails to perform any obligation in this Agreement or any
other agreement with Secured Party or its assignees, (c) any representation or warranty by the Customer contained herein is false,
(d) as solely determined by the Secured Party, an adverse change occurs in the Customer's financial condition or Secured Party
believes the prospect of payment or performance is impaired or (e) Customer attempts or actually repudiates or revokes this Agreement
or any other agreement with Secured Party or its assignees, then Customer will be in default. If Customer is in default, Secured
Party, with or without notice to Customer, shall have the right to exercise any one or more of the following remedies, concurrently
or separately, and without any election of remedies being deemed to have been made. Secured Party may (a) retain Customer's security
deposit, (b) cancel this Agreement and the Secured Party's remaining obligations. (c) sue for and recover from Customer any and
all amounts due under this Agreement, including the Stipulated Agreement Value,(d) enter upon Customer's premises and without any
court order or other process of law and foreclose on, repossess and remove the Equipment, or render the Equipment unusable without
removal, either with or without notice to Customer provided that such action shall not terminate this Agreement unless Secured
Party notifies Customer in writing, (e) require the Customer to assemble and make the Equipment available to the Secured Party
at a location determined by the Secured Party, (f) upon notice to Customer required by law, foreclose on and sell the Equipment
to any party at a private or public sale and at any sale Secured Party may be the purchaser, (g) upon such terms and conditions
as the Secured Party alone shall determine, foreclose and lease the Equipment to any third party upon notice to Customer required
by law. (h) refer this Agreement to an attorney for collection; or (i) pursue any other remedy available to the Secured party under
any agreement or applicable law. Customer agrees to pay all costs of collection including, but not limited to, costs of repossession,
and any other expenses associated with the collection efforts, including but not limited to long distance telephone charges and
travel costs. Secured Party shall apply the net proceeds of any sale or lease of the Equipment after deducting all costs of such
disposition, including, but not limited to, costs of transportation, repossession, storage, refurbishing, advertising and broker
fees, to the obligations of Customer hereunder with Customer remaining liable for any deficiency. Customer agrees that Secured
Party will not be responsible for paying Customer for any consequential or incidental damages resulting from or in connection With
default by Secured Party under this Agreement. Customer agrees that any delay or failure to enforce Secured Party's rights under
this Agreement does not prevent Secured Party from enforcing any rights at a later time. Secured Party may use any of the remedies
available under Article 9 of the UCC as enacted in the State of Washington or any other law.

 

18. ATTORNEY'S FEES AND EXPENSE. In the event Secured
Party is required to retain an attorney to assist in the enforcement of its rights under this Agreement, it shall be entitled to
a reasonable attorney's fee, however incurred, in addition to costs and necessary disbursements, whether or not suit becomes necessary,
including fees incurred on appeal or in connection with a bankruptcy proceeding.

 

continued
on following pages

 

Page
3  of 5 Page Agreement

    	 

    	 

    

 

19. TITLING. If requested by Secured Party, Customer
shall cause Equipment subject to title registrations laws to be titled as directed by Secured Party. Customer shall advise Secured
Party promptly as to any necessary re-titling. Debtor shall cause all documents of title to be furnished within sixty (60) days
of the date of any titling effected by Customer.

 

20. TAXES. Customer shall pay and discharge all sales,
use, property and other taxes now or hereafter imposed by any taxing authority upon the Equipment based upon the ownership, possession
or use thereof, together with any penalties or interest in connection therewith, and will submit written evidence of the payment
at Secured Party's request.

 

21. SECURED PARTY'S ASSIGNMENT. Secured Party may assign
all or any of Secured Party's other rights hereunder. After such assignment, Customer waives any right Customer may have to claim
or assert any defenses, setoffs or counterclaims against assignee of Secured Party. Customer will settle all claims arising out
of alleged breach of warranties, defenses, setoffs and counterclaims it may have against Secured Party directly with Secured Party
and not set up any such claims against Secured Party's assignee. An assignee of Secured Party shall not be obilgated to perform
any of Secured Party's obligations under this Agreement. Customer, on receiving notice of any such assignment, shall abide thereby
and make payment as may therein be directed. Following such assignment, solely for the purpose of determining assignee's rights
hereunder, the term "Secured Party" shall be deemed to include or refer to Secured Party's assignee.

 

22. OFFER AND ACCEPTANCE. Customer's signing of this
document shall constitute an offer to Secured Party to enter into the Agreement. In consideration of Secured Party's time and effort
in reviewing and acting on the offer, Customer agrees that its other shall be irrevocable for a period of thirty (30) business
days after the date it is submitted to Secured Party. Customer shall execute and deliver such instruments and guarantees including,
but not limited to, personal guarantee, spouse's guarantee and or guarantees of any persons having an ownership interest in the
Customer and other instruments as Secured Party deems necessary. Secured Party's signing of this Agreement shall constitute acceptance
of Customer's offer to enter Into this Agreement; provided that if Customer falls to execute and deliver to Secured Party an Acknowledgment
and Acceptance of Equipment by Customer acknowledging its acceptance of the Equipment within thirty (30) days after it is delivered
to Customer, Secured Party shall have no obligation with respect to this Agreement or any Schedule hereto.

 

23. LIMITED PREARRANGED AMENDMENTS; AUTHORIZATION; SPECIFIC
POWER OF ATTORNEY. In the event it is necessary to amend this Agreement to correct an obvious error or to reflect a change
In the amount financed by Secured Party or the description of the Equipment, Customer agrees that any such amendment shall be described
in a letter from Secured Party to Customer, this Agreement shall be deemed amended and such amendments shall be incorporated in
this Agreement herein as if originally set forth. Customer further grants to Secured Party a specific power of attorney for Secured
Party to sign, endorse or negotiate for Secured Party's benefit any instrument representing proceeds from any policy of insurance
covering the Equipment.

 

24. ADDITIONAL DOCUMENTS, FINANCIAL STATEMENTS; CREDIT REPORTS.
Customer shall provide to Secured Party such documents as Secured Party shall reasonably request to protect Secured Party's interest
in the Equipment. Secured Party may require from time to time, and Customer agrees to furnish. statements setting forth the financial
condition and operations of Customer. Customer authorizes Secured Party, its successors, assigns and prospective assigns, to obtain
a personal credit profile on Customer or any guarantor from any credit reporting company.

 

25. MISCELLANEOUS. Secured Party and Customer agree
that original signatures sent electronically on any document pertaining to this agreement shall be accepted by Secured Party,
Customer and all guarantors as binding and enforceable and to have the same force and effect as original signatures. Customer
authorizes Secured Party to communicate with Customer through electronic means. All Customer email addresses provided to Secured
Party will be confidential and will not be shared, sold or spammed. Delinquent payments and other sums due under this Agreement
shall bear interest at eighteen percent (18%) per annum if not prohibited by law, otherwise at the highest lawful contract rate.
If there is more than one Customer, Secured Party may, with the consent of any one of the Customers, modify, extend, or change
any one of the terms hereof without content or knowledge of the others, without in any way releasing, waiving, or impairing any
right granted to Secured Party against the others. Customers and each of them are jointly and severally responsible and liable to Secured Party under this Agreement. If Secured Party is required by
law to discount any unpaid payment or other sums payable by Customer hereunder, then the parties hereto agree that the discount
rate used shall be five percent (5%) annually. If any provision of this Agreement is contrary to, prohibited by, or held Invalid
under applicable laws or regulations or any Jurisdiction in which it is sought to be enforced, then such provision shall be considered
severable and inapplicable, but shall not invalidate the remaining provisions of this Agreement.

 

26. TIME OF THE ESSENCE. Time is of the essence of this
Agreement, and this provision shall not be impliedly waived by the acceptance on any occasion of late or defective performance.

 

 

 

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND
CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

 

Page 4  of 5 Page Agreement

    	 

    	 

    

 

GUARANTEE

 

To induce Secured Party to enter into an Agreement with or
otherwise extend financial accommodations to EPAZZ, INC. Customer"), the undersigned Guarantor unconditionally guarantees
to Secured Party the prompt payment when due of all Customer's obligations to Secured Party. Secured Party shall not be required
to proceed against the Customer or the Equipment or enforce any other remedy before proceeding against the undersigned. The undersigned
waives notice of acceptance hereof and all other notices or demand of any kind to which the undersigned may be entitled. The undersigned
consents to any extensions or modifications granted to Customer and the release and/or compromise of any obligations of Customer
or any other obligors and guarantors or any collateral therefore without notice and without In any way releasing the undersigned
from his or her obligations hereunder. Guarantor waives any right to require Secured Party to apply payments in a certain manner
and acknowledges that Secured Party may apply payments received In the fashion most advantageous to Secured Party. Furthermore,
Guarantor waives any and all claims against Customer, by subrogation or otherwise, until such time as Customer's obligations to
Secured Party are fully and finally satisfied. This is a continuing guarantee and shall not be discharged, impaired or affected
by death of the undersigned or the existence or nonexistence of Customer as a legal entity. This continuing Guarantee shall bind
the heirs, administrators, representatives, successors, and assigns of the undersigned and may be enforced by or for the benefit
of any assignee or successor of Secured Party.

 

The provisions of the Guarantee shall extend to and apply to
all the obligations of Customer to Secured Party, now existing or hereafter made, incurred or created, however arising, and whether
set forth in separate agreements, schedules, applications, orders or collateral documents. The execution of this Guarantee shall
not extinguish, release or waive any existing obligations, promises, or guarantees of Guarantor for the benefit of Secured Party.
The undersigned agrees to pay a reasonable attorney's fee, and all other costs and expenses incurred by Secured Party or its successors
or assigns '" the enforcement of the Guarantee, whether or not a lawsuit is started.

 

The undersigned personal guarantor consents to Financial Pacific
leasing, LLC obtaining a consumer credit report on the undersigned from time to time In the credit evaluation and review process.

 

Law Which Applies, THIS AGREEMENT IS GOVERNED BY WASHINGTON
LAW. EACH GUARANTOR CONSENTS TO THE PERSONAL JURISDICTION OF THE COURTS OF THE STATE OF WASHINGTON FOR ANY DISPUTE, SUIT OR ACTION
ARISING UNDER OR IN RELATION TO THIS GUARANTEE AND AGREES THAT ALL LAWSUITS COMMENCED BY A GUARANTOR AGAINST SECURED PARTY MUST
BE FILED IN SUCH COURTS. AT SECURED PARTY'S SOLE OPTION, VENUE (LOCATION) FOR ANY PROCEEDING SHALL BE IN KING COUNTY, STATE OF
WASHINGTON. EACH GUARANTOR WAIVES THE RIGHT TO A JURY TRIAL SECURED PARTY SHALL HAVE THE OPTION OF COMMENCING AN

ACTION IN ANY COURT HAVING PROPER JURISDICTION.

 

This Guarantee and each of Its provisions may be waived or modified
only by record signed by Secured Party. Secured Party's waiver of any right to demand performance hereunder shall not be a waiver
of any subsequent or other right to demand performance hereunder. If any provision of this Guarantee shall be determined to be
unenforceable, then such provision shall be severed from this Guarantee without affecting any other provision of the Guarantee
which shall remain fully enforceable.

 

 

	/s/ Shaun Passley	(No Title)	 	(No Title)
	SHAUN PASSLEY	 	 
	 	 	 	 
	Date
    8/14/2012       Social Security # xxxxxxxxx	 	Date                             Social
    Security #
	 	 	 
	Home Phone   #xxx-xxx-xxxx	 	Home Phone #

 

 

		(No Title)	 	(No Title)
		 	 
	 	 	 	 
	Date                             Social
    Security #	 	Date                             Social
    Security #
	 	 	 
	Home Phone  #	 	Home Phone #

 

 

 

DELIVERY AND ACCEPTANCE AUTHORIZATION

 

Customer's signature authorizes Secured Party to verify by phone
with a representative of Customer the date the Equipment was accepted by the Customer; the Equipment description, including the
serial numbers; the schedule of payments; that all necessary installation has been completed; that the Equipment has been examined
by Customer and is in good operating order and condition and is in all respects satisfactory to Customer and that Equipment is
accepted by Customer for all purposes under the Agreement. This Information will be recorded on a Verification Certificate, a copy
of which will be forwarded to Customer upon request. Customer hereby authorizes Secured Party to either insert or correct the Secured
Party and/or Vendor name(s), equipment description, Equipment location and schedule of payments. Customer hereby authorizes Secured
Party to make payment to the Vendor upon completion of the Verification Certificate.

 

	CUSTOMER: EPAZZ, INC	 	 
	 	 	 	 
	/s/ Shaun Passley	 	 	Date: 8/14/2012
	SHAUN PASSLEY	PRESIDENT AND INDIVIDUALLY	 	 

 

 

Page 5  of 5 Page Agreement

    	 

    	 

    

 

EQUIPMENT LIST

 

1. HiTech Compliance Software for MS Health Software Corp

 

AN ELECTRONIC VERSION OF THIS DOCUMENT SHALL BE CONSIDERED
AN ORIGINAL.

 

	SECURED PARTY: DIRECT CREDIT FUNDING, INC.	 	CUSTOMER: EPAZZ, INC. 
	 	 	 	 	 
	By: 	/s/ signature	 	By: 	/s/ Shaun Passley
	 	 	 	 	SHAUN PASSLEY
	 	 	 	 	 
	ITS: 	President	 	ITS:	 PRESIDENT AND INDIVIDUALLY
	 	 	 	 	 
	DATE: 	8/16/12	 	DATE:	 8/14/2012

 

 

Page 1 of 1 Page Equipment List

    	1

    	 

    

 

 

PRE-FUNDING ACCEPTANCE AGREEMENT

AND

AUTHORIZATION TO COMMENCE

 

 

The Secured Party has received a request from the Customer to
advance funds to the Vendor(s) prior to delivery of the equipment. As adequate and valuable consideration for Secured Party and/or
Assignees to advance funds to the Vendor(s), the Customer acknowledges this is a non-cancelable agreement and unconditionally agrees
to the following:

 

 

	X	Initial Here →	/s/ SP	
        Customer agrees to accept the equipment described on the Agreement
        at the Vendor's location

        of business. Customer acknowledges full responsibility for loss
        or damage to the equipment from the time of Customer's acceptance at Vendor's place of business. The undersigned agrees to settle
        all claims, defenses, set-offs and counterclaims it may have with the Vendor of the goods and equipment directly with the Vendor
        and not against Secured Party. Customer warrants to Secured Party that the equipment is merchantable and fit for the purpose for
        which it was selected. Customer makes this acceptance regardless of the working condition or installation of the equipment.

	 	 	 	 
	X	Initial Here →	/s/ SP	The Agreement  will commence  and Customer will begin making payments  to Secured Party, regardless  of the  actual date  of delivery, just as  if  the equipment  had  been  accepted  and delivered. Customer understands that failure by the Vendor to deliver an equipment is the sole responsibility of Customer and payments to Secured Party will not be withheld for any reason.
	 	 	 	 
	X	Initial Here →	/s/ SP	
        By signature below the undersigned specifically authorizes and
        requests Secured Party to make payment to the Vendor(s) of the equipment described in the Agreement. Customer agrees that said
        equipment has not been delivered, installed or accepted on a trial basis.

         

 

Customer's signature authorizes Secured Party to verify by phone
with a representative of Customer the equipment description, including serial numbers and the schedule of payments. This information
will be recorded on a Verification Certificate, a copy of which will be forwarded to Customer upon request. This Acceptance and
Authorization supersedes any other Delivery and Acceptance Authorization.

 

 

Customer understands and authorizes the conditions set forth
in this agreement.

 

 

AN ELECTRONIC VERSION OF THIS DOCUMENT SHALL BE CONSIDERED
AN ORIGINAL.

 

CUSTOMER: EPAZZ, INC.

 

	 	 
	By: 	/s/ Shaun Passley
	 	SHAUN PASSLEY
	 	 
	ITS:	 PRESIDENT AND INDIVIDUALLY
	 	 
	DATE:	 8/14/2012

 

    	 

    	 

    

 

CERTIFICATE OF AUTHORITY FOR RESOLUTION
OF BUSINESS ENTITY FOR FINANCING FROM AND OTHERWISE DEALING WITH DIRECT CREDIT FUNDING, INC.

 

 

The undersigned secretary/authorized recorder of EPAZZ, INC.
("Business Entity") does hereby certify that the following is a true and correct copy of resolutions duly adopted by
the governing body of the Business Entity and that said resolutions are now in full force and effect.

 

RESOLVED that any one of the officers, general partners, members,
managers or agents (hereinafter individually referred to as an "Authorized Person" and collectively, as the "Authorized
Persons") listed below are authorized to take the following actions in the name of and on behalf of the Business Entity.

 

1. To finance from DIRECT CREDIT FUNDING, INC. ("Secured
Party") such equipment or other personal property on such terms as said Authorized Persons deem advisable and in the best
interest of the Business Entity from time to time and the execution of any agreement by any one of said Authorized Persons shall
be conclusive evidence of his/her approval thereof.

 

2. To sign and deliver all agreements and related documents,
including any notes or other evidences of indebtedness as may be requested by Secured Party.

 

3. To pledge as collateral security for the performance of the
obligations of the Business Entity to Secured Party, such assets of the Business Entity as may be required and agreed upon between
the Authorized Persons and Secured Party.

 

 

RESOLVED FURTHER that, except as indicated above, each one of
the Authorized Persons listed below is conferred with a general authority to deal on behalf of and in the name of the Business
Entity with Secured Party.

 

 

RESOLVED FURTHER that the following are the true and correct
signatures and designations of the Officers referred to:

 

	NAMES	 	SIGNATURES	 	TITLES
	 	 	 	 	 
	SHAUN PASSLEY	 	/S/ Shaun Passley	 	PRESIDENT
	 	 	 	 	 
	 	 	 	 	 

 

 

RESOLVED FURTHER that this resolution shall continue in t ce
until notice in writing of its revocation shall be given to and received by Secured Party at the address described in paragraph
12 of the equipment finance agreement, by certified mail, return receipt requested and notwithstanding the giving of such notice,
this resolution shall be effective as to all agreements entered into prior to Secured Party's receipt of such notice.

 

 

RESOLVED FURTHER that the secretary/authorized recorder of the
Business Entity is hereby authorized to furnish this Certificate of Authority to Secured Party and that a copy of this Certificate
shall be conclusive evidence of the authority of the Authorized Persons to deal with Secured Party on behalf of the Business Entity.

 

Type of Business Entity (check one):   S Corporation  £ Limited
Liability Company  £ Partnership

 

DATED this 14th day of August, 2012.

 

/s/ Shaun Passley                              

Signature

 

Shaun Passley                                   

(Print Name) Secretary/Authorized Recorder

 

Signed and sealed (if necessary) with seal of the Business Entity.

 

    	 

    	 

    

 

AUTHORIZATION FOR DIRECT PAYMENTS 

(ACH Debits)

 

 

 

	Company Name:    EPAZZ,INC.	 	Agreement#:__________________

 

 

I (we) hereby authorize DIRECT CREDIT FUNDING, INC., its successors
and assigns, or its assigns, herein called COMPANY, to automatically withdraw from my (our)

 

 

	(Please Select One):	£ Checking Account	£
Savings Account

 

 

indicated below any and all sums due in connection with the
Agreement identified above. The undersigned authorizes the debit of regular monthly payments as well as debit entries for charges
where the amount and time frame varies, including, but not limited to insurance, tax, NSF and late fee payments. I(we) acknowledge
that the origination of ACH transactions to my (our) account must comply with the provisions of U.S. Law. I(we) also acknowledge
that the Company may assign the account to a third party and that assignee may then initiate debit entries pursuant to this authorization.

 

 

	Bank Name 	Citibank	 	Branch: 	River North
	 	 	 	 	 
	City: 	Chicago	 	State: 	IL
	 	 	 	 	 
	Routing Number:	 xxxxxxxxx	 	Account #:	 xxxxxxxxx

 

 

This authorization is to remain in full force and effect until
Company has received written notification seven (7) business days before the due date.

 

*** To view your monthly invoice, go
to fastpay.finpac.com to register.

No written notice will be forwarded.***

 

 

	By: 	/s/ Shaun Passley
	 	SHAUN PASSLEY
	 	 
	Its:	 PRESIDENT AND INDIVIDUALLY
	 	 
	Date:	 8/14/2012
	 	 
	Phone

 Number	xxx-xxx-xxxx
	 	 
	E-mail

 Address: 	shaun@epazz.net

 

 

 

PLEASE ATTACH A COPY OF A VOIDED CHECK.

 

 

 

AN ELECTRONIC COPY OF THIS AGREEMENT WITH SIGNATURE SHALL BE
CONSIDERED AN ORIGINAL

 

Page 1 of 1  Page Automatic Payment Plan

    	2

    	 

    

 

ADDENDUM PAY PROCEEDS DIRECTION

 

 

 

Customer: EPAZZ, INC.

 

Secured Party: DIRECT CREDIT FUNDING, INC.

 

 

 

By signature below the Customer hereby authorizes and instructs
the Secured Party, and or its assigns to disburse the following amounts to the payees designated below:

 

 

 

 

 

 

	Payee Name	 	 	Amount
	DYNAMIC HEALTH IT	 	 	$	13,870.00
	 	Total Amount to be Disbursed	 	$	13,870.00

 

Customer hereby acknowledges and confirms its obligations under
the EFA and any personal guarantee(s) executed by the undersigned.

 

Disbursement by the Secured Party, and or its assigns, in accordance
with the foregoing instructions shall constitute payment to and receipt by Customer of such disbursements.

 

 

 

AN ELECTRONIC VERSION OF THIS DOCUMENT
SHALL BE CONSIDERED AN ORIGINAL

 

 

 

CUSTOMER: EPAZZ, INC.

 

	 	 
	By: 	/s/ Shaun Passley
	 	SHAUN PASSLEY
	 	 
	ITS:	 PRESIDENT AND INDIVIDUALLY
	 	 
	DATE:	 8/14/2012

 

 

 

	App# 507657, 072012C .EFA	 	Page 1 of 1 Page Pay Proceeds DirectionDorato Resources Inc.: Exhibit 4-11 - Filed by newsfilecorp.com

ROYALTY PURCHASE AGREEMENT 

 

BETWEEN 

 

Dorato Resources Inc. 

 

- and -

 

 Franco-Nevada Corporation 

 

 

 

June 22, 2012 

TABLE OF CONTENTS 

		ARTICLE
      1 
INTERPRETATION 	2
	  	  	  
	1.1
      	Definitions
      	2
      
	1.2
      	Gender,
      Number and Other Terms 	4
      
	1.3
      	Sections
      and Headings 	4
      
	1.4
      	Statutes
      	4
      
	1.5
      	Contra
      Preferentum 	4
      
	1.6
      	Currency
      	4
      
	1.7
      	Applicable
      Law 	4
      
	  	  	  
		ARTICLE
      2 
PURCHASE AND SALE 	5
	  	  	  
	2.1
      	Purchase
      and Sale 	5
      
	2.2
      	Purchase
      Price 	5
      
	  	  	  
		ARTICLE
      3 
REPRESENTATIONS AND WARRANTIES OF DORATO
    	5
	  	  	  
	3.1
      	General
      Representations and Warranties of Dorato 	5
      
	3.2
      	Representations
      and Warranties of Dorato as to the Mineral Property 	6
      
	  	  	  
		ARTICLE
      4 
REPRESENTATIONS AND WARRANTIES OF FRANCO
    	7
	  	  	  
	4.1
      	Representations
      and Warranties of Franco 	7
      
	  	  	  
		ARTICLE
      5 
COVENANTS 	8
	  	  	  
	5.1
      	Operations
      by Dorato 	8
      
	5.2
      	Mutual
      Covenants 	8
      
	5.3
      	Performance
      by Affiliates 	9
      
	  	  	  
		ARTICLE
      6 
CLOSING 	10
      
	  	  	  
	6.1
      	Date
      and Place of Closing 	10
      
	6.2
      	Franco's
      Closing Deliveries 	11
      
	6.3
      	Dorato’s
      Closing Deliveries 	11
      
	6.4
      	Concurrent
      Delivery 	11
      
	6.5
      	Conditions
      of Closing 	11
      
	6.6
      	Termination
      of Royalty Option Agreement 	12
      
	  	  	  
		ARTICLE
      7 
RESPONSIBILITY FOR OBLIGATIONS AND
      LIABILITIES 	12
	  	  	  
	7.1
      	Mineral
      Property 	12
      
	7.2
      	Payment
      of Taxes on Sale and Transfer 	12
      
	  	  	  
		ARTICLE
      8 
SURVIVAL OF REPRESENTATIONS AND
      INDEMNIFICATION 	12
      
	  	  	  
	8.1
      	Survival
      	12
      
	8.2
      	Indemnification
      by Dorato 	13
      

- i - 

	8.3 	Indemnification by Franco 	13

	  	  	  
		ARTICLE 9
      
MISCELLANEOUS 	13

	  	  	  
	9.1 	Legal and Other Fees and Expenses 	13

	9.2 	Notices
	13 
	9.3 	Time of the Essence 	14

	9.4 	Brokers' Fees
      and Commissions 	14 
	9.5 	Entire Agreement 	15

	9.6 	Confidentiality; Public Disclosure 	15 
	9.7 	Enurement and Assignment 	15

	9.8 	Severability
      	15 
	9.9 	Further Assurances 	15

	9.10 	Waiver and
      Amendment 	16 
	9.11 	No Third Party Rights 	16

	9.12 	Counterparts;
      Facsimiles 	16 

- ii - 

THIS ROYALTY PURCHASE AGREEMENT is dated as of the 22nd
day of June, 2012, by and between Dorato Resources Inc., a corporation organized
under the laws of British Columbia, whose address for purposes hereof is Suite
2300 – 1177 West Hastings Street, Vancouver, British Columbia V6E 2K3 (“Dorato”)
and Franco-Nevada Corporation, a corporation organized under the laws of Canada,
whose address for purposes hereof is Exchange Tower, 130 King Street West, Suite
740, PO Box 467, Toronto, Ontario M5X 1E4 (“Franco”). 

RECITALS 

	 	A. 	
      Dorato entered into that certain Subscription Agreement
      dated August 18, 2008 with Franco under which Franco agreed to purchase
      and Dorato agreed to issue 1,500,000 shares of Dorato stock at a price and
      under terms and conditions provided therein;

	 	 	 
	 	B. 	
      As additional consideration for Franco’s subscription,
      Dorato and Franco entered into that certain Royalty Option Agreement dated
      August 18, 2008, under which Dorato agreed to grant to Franco an option to
      purchase a net smelter return royalty upon the production from mineral
      properties on terms and conditions provided therein;

	 	 	 
	 	C. 	
      Dorato and Franco entered into that certain Subscription
      Agreement dated March 30, 2009, in which Franco agreed to purchase and
      Dorato agreed to issue to Franco 2,000,000 Units, for C$0.50 per Unit,
      each Unit consisting of one common share and one-half of one common share
      purchase warrant on terms and conditions provided therein;

	 	 	 
	 	D. 	
      As additional consideration for Franco’s subscription,
      Dorato and Franco entered into the First Amendment to Royalty Option
      Agreement dated March 30, 2009 which amended the Royalty Option Agreement
      dated August 18, 2008, to expand the size of the mineral properties to
      which Franco’s royalty would apply in the event Franco exercised its
      options thereunder, upon the terms therein;

	 	 	 
	 	E. 	
      Dorato and Franco have entered into that certain
      Subscription Agreement dated May 22, 2012, in which Franco has agreed to
      purchase and Dorato has agreed to issue to Franco 1,666,667 common shares
      for C$0.09 per common share;

	 	 	 
	 	F. 	
      Dorato and Franco have agreed to terminate the Royalty
      Option Agreement and the First Amendment to Royalty Agreement;
  and

	 	 	 
	 	G. 	
      Dorato desires to sell to Franco and Franco desires to
      purchase from Dorato the Royalty upon the production of minerals from any
      and all of the Mineral Property of Dorato owned or controlled in Peru on
      the effective date hereof .

AGREEMENT 

NOW THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby confessed and acknowledged, Dorato
and Franco agree as follows: 

- 2 - 

ARTICLE 1

INTERPRETATION 

1.1     
Definitions 

           
For the purposes of this Agreement, unless the context otherwise requires, the
following terms shall have the respective meanings set out below and grammatical
variations of such terms shall have corresponding meanings: 

“Affiliate” with respect to a
person means another person which is controlled by, controls or is under common
control with the first mentioned person, and “control” for this purpose
means the ownership of or control or direction over, directly or indirectly,
more than 50% of the voting power attached to the outstanding voting securities
of the relevant person or of sufficient voting securities of such person that
the holder has the right to control the election or appointment of a majority of
the directors or persons acting in a substantially similar capacity (if
applicable) of such person;

 “Agreement” means this
Agreement, including its recitals and Schedules, as amended and supplemented;

“Business Day” means any day
other than a Saturday, Sunday or any statutory or civic holiday in the Provinces
of Ontario and British Columbia, Canada; 

“Closing” means the closing of
the Purchase and Sale of the Royalty (as hereinafter defined) in accordance with
Article 6 hereof; 

“Data” means all files, ledgers
and correspondence, reports, texts, notes, engineering, environmental and
feasibility studies, data, specifications, memoranda, invoices, receipts,
accounts, accounting records and books, financial statements, financial working
papers and all other records and documents of any nature or kind whatsoever,
including, without limitation, those recorded, stored, maintained, operated,
held or otherwise wholly or partly dependent on discs, tapes and other means of
storage including, without limitation, any electronic, magnetic, mechanical,
photographic or optical process, whether computerized or not (and all software,
passwords and other information and means of or for access thereto); 

“Encumbrance” means, whether or
not registered or registrable or recorded or recordable, and regardless of how
created or arising: 

	 	(a) 	
      any mortgage, assignment of receivable, lien,
      encumbrance, adverse claim, charge, execution, title defect, exception,
      reservation, easement, encroachment, servitude, restriction on use, right
      of pre-emption, right of first refusal, privilege, security interest,
      hypothec or pledge, whether fixed or floating, against assets or property
      (whether real, personal, mixed, tangible or intangible), conditional sales
      contract, title retention agreement, and a subordination to any right or
      claim of others in respect thereof;

- 3 - 

	 	(b) 	
      a claim, interest or estate against or in assets or
      property (whether real, personal, mixed, tangible or intangible), granted
      to or reserved or taken by any Person;

	 	 	 
	 	(c) 	
      an option or other right to acquire, or to acquire any
      interest in, any assets or property (whether real, personal, mixed,
      tangible or intangible);

	 	 	 
	 	(d) 	
      any other encumbrance of whatsoever nature and kind
      against assets or property (whether real, personal, mixed, tangible or
      intangible); and

	 	 	 
	 	(e) 	
      any contract to create, or right capable of becoming, any
      of the foregoing;

“Governmental Authority” means
any federal, provincial, state, municipal, county or regional government or
governmental or regulatory authority, domestic or foreign, including any
political subdivision of any of the foregoing, any multi-national organization
or body comprised of one of the foregoing, any agency, department, commission,
board, bureau, court, tribunal or other authority thereof, or any
quasi-governmental or private body exercising any executive, legislative,
judicial, administrative, police, regulatory or taxing authority or power of any
nature; 

“Law” means any law, statute,
regulation, by-law, order, ruling, decision, arbitration award, judgment,
decree, ordinance, treaty, proclamation, convention, rule or requirement of, and
the terms of any authorization issued by, any Governmental Authority; 

“Mineral Property” means all of
the mineral rights, mineral claims, mining leases, permits and concessions and
other property interests owned or controlled by Dorato on the effective date
hereof that are located in Peru, including without limitation, those more
particularly described in Schedule A, including new or replacement claims,
leases, permits or concessions or other after-acquired rights or interests
covering all or part of the same land; 

“Party” or 
“Parties” means one or more of the persons or entities who or which are a
party to this Agreement; 

“Person” includes an individual,
corporation, body corporate, partnership, joint venture, association, trust or
unincorporated organization or any trustee, executor, administrator or other
legal representative thereof or heirs, successors and assigns of such persons as
the context may require; 

“Purchase Price” has the meaning
given to it in Section 2.2; 

“Royalty” means all of the
right, title and interest of Franco in that certain net smelter return royalty
more particularly described in the Royalty Agreement hereinafter defined below;

“Royalty Agreement” means the
Royalty Agreement to be entered into substantially conforming to that attached
hereto as Schedule B. 

- 4 - 

1.2      Gender,
Number and Other Terms

            In
this Agreement, unless the context otherwise requires, words importing the
singular number only shall include the plural and vice versa, words
importing gender shall include all genders and words importing persons shall
include individuals, corporations, partnerships, associations, trusts,
unincorporated organizations, Governmental Authorities and other legal or
business entities of any kind whatsoever, “or” is not exclusive and the word
“including” means “including without limitation” and the word “include” means
“include without limitation”. 

1.3      Sections
and Headings

            The
division of this Agreement into Articles and Sections and the insertion of
headings and a table of contents are for convenience of reference only and shall
not affect the interpretation of this Agreement. Unless otherwise indicated, any
reference in this Agreement to an Article, Section or other subdivision or to a
Schedule refers to the specified Article, Section or other subdivision of, or
Schedule to, this Agreement. 

1.4    
 Statutes

            Unless
otherwise stated, any reference to a statute includes and is a reference to such
statute and to the regulations made pursuant to it, with all amendments thereto
and in force from time to time, and to any statute or regulations that may be
passed which supplement or supersede such statute or such regulations. 

1.5      Contra
Preferentum

            The
Parties waive the application of any rule of law which otherwise would be
applicable in connection with the construction of this Agreement that ambiguous
or conflicting terms or provisions should be construed against the Party who (or
whose counsel) prepared the executed agreement or any earlier draft of the same.

1.6     
Currency 

            Except
where otherwise expressly provided, all monetary amounts in this Agreement are
stated and shall be paid in Canadian currency. 

1.7    
 Applicable Law

            This
Agreement shall be construed, interpreted and enforced in accordance with, and
the respective rights and obligations of the Parties shall be governed by, the
laws of the Province of Ontario and the federal laws of Canada and Peru
applicable therein and all disputes and claims, whether for damages, specific
performance, injunction, declaration or otherwise, both at law and in equity,
arising out of, or in any way connected with, this Agreement will be referred to
the courts of the Province of Ontario. 

- 5 - 

ARTICLE 2 
PURCHASE AND
SALE

2.1      Purchase
and Sale 

            Dorato
hereby agrees to sell to Franco and Franco agrees to purchase from Dorato the
Royalty, stated as two percent (2%) of the net smelter returns from the
production from the Mineral Property for a Purchase Price as set forth in
Section 2.2 below. The closing of the purchase of sale of the Royalty shall be
in accordance with Article 6 below. 

2.2      Purchase
Price

           
The Purchase Price is C$350,000. 

ARTICLE 3 
REPRESENTATIONS AND
WARRANTIES OF DORATO

3.1      General
Representations and Warranties of Dorato 

           
Dorato represents and warrants to Franco as follows and acknowledges that Franco
is relying on the following representations and warranties in connection with
the consummation of the transactions contemplated by this Agreement: 

	 	(a) 	
      Status. Dorato is a duly incorporated and validly
      existing corporation under the laws of British Columbia, Canada, as
      amended or supplemented, is in good standing with respect to the filing of
      annual reports in the office of the Registrar, has never been struck from
      the register maintained by the Registrar or dissolved or liquidated, and
      has full power and capacity to sell the Royalty and to enter into, and
      perform all its obligations under, this Agreement.

	 	 	 
	 	(b) 	
      Due Authorization. The execution and delivery of
      this Agreement and all documents, instruments and agreements required to
      be executed and delivered by Dorato pursuant to this Agreement, and the
      consummation of the transactions contemplated by this Agreement, have been
      duly authorized by all necessary corporate action on the part of Dorato,
      and this Agreement has been duly executed and delivered by Dorato and
      constitutes a legal, valid and binding obligation of Dorato enforceable
      against Dorato in accordance with its terms, except as may be limited by
      bankruptcy, insolvency, liquidation, reorganization, reconstruction and
      other similar laws of general application affecting the enforceability of
      remedies and rights of creditors and except that equitable remedies such
      as specific performance and injunction are in the discretion of a
      court.

- 6 - 

	 	(c) 	
      Non-Contravention. Neither the execution and
      delivery of this Agreement nor the completion and performance of the
      transactions contemplated hereunder will result in a breach of or default
      under, or be contrary to, any of the provisions of the charter documents
      of Dorato or any indenture, contract, agreement or instrument to which
      Dorato is a party or by which Dorato is bound.

	 	 	 
	 	(d) 	
      Enforceability. This Agreement has been, and each
      document, instrument and agreement to be delivered on Closing to which
      Dorato is a party will on Closing be, duly executed and delivered by
      Dorato and this Agreement constitutes, and each such closing document,
      instrument and agreement to which Dorato is a party will on Closing
      constitute, a legal, valid and binding obligation of Dorato enforceable
      against Dorato in accordance with its terms.

3.2     
Representations and Warranties of Dorato as to the Mineral
Property 

            Dorato
represents and warrants to Franco as follows as of the Closing and acknowledges
that Franco is relying on the following representations and warranties in
connection with the consummation of the transactions contemplated by this
Agreement: 

	 	(a) 	
      No Encumbrances. The property rights comprising
      the Mineral Property are free and clear of all Encumbrances and such
      Royalty shall be transferred to Franco free and clear of all
      Encumbrances.

	 	 	 	 
	 	(b) 	
      No Adverse Implications. Neither the execution and
      delivery of this Agreement nor the completion and performance of the
      transactions contemplated by this Agreement will:

	 	 	 	 
	 		(i) 	
      give any person, other than Franco or its Affiliates, the
      right to terminate, cancel or amend any contractual or other right of
      Dorato where such termination, cancellation or removal would have a
      material adverse effect on the Royalty;

	 	 	 	 
	 		(ii) 	
      result in the creation of any Encumbrance on any of the
      Mineral Property or in a breach of or a default under any contract, permit
      or other agreement or in the crystallization of any floating charge on, or
      the acceleration of any rights or obligations in respect of, any of the
      Mineral Property; or

	 	 	 	 
	 		(iii) 	
      give rise to any right of first offer, pre-emptive right,
      right of first refusal or other right to
purchase.

- 7 - 

	 	(c) 	
      Adverse Proceedings. There are no current, pending
      or, to the best of Dorato’s knowledge, after due inquiry, threatened
      proceedings by or against Dorato or any Affiliate of Dorato relating to
      the Mineral Property. Dorato is not aware of any basis for any other
      proceeding which, if pursued, would have a significant likelihood of
      having a material adverse effect on any of the Mineral Property or the
      Royalty.

	 	 	 
	 	(d) 	
      Approvals. There is no consent, approval,
      authorization, release, waiver or other action of, or any registration,
      declaration, filing or notice with or to, any Governmental Authority, or
      other person that is required for the execution or delivery by Dorato of
      this Agreement, or the completion or performance by Dorato of this
      Agreement.

	 	 	 
	 	(e) 	
      No Adverse Knowledge. Except as disclosed in this
      Agreement, after due enquiry, Dorato has no information or knowledge of
      any fact relating to any of the Mineral Property, or the transactions
      contemplated by this Agreement which might reasonably be expected to have
      a material adverse effect on the Royalty.

ARTICLE 4 
REPRESENTATIONS AND
WARRANTIES OF FRANCO 

4.1     
Representations and Warranties of Franco 

            Franco
represents and warrants to Dorato as follows and acknowledges that Dorato is
relying upon the following representations and warranties in connection with the
consummation of the transactions contemplated by this Agreement: 

	 	(a) 	
      Status. Franco is a duly incorporated and validly
      existing corporation under the laws of Canada, as amended or supplemented,
      is in good standing, and has full power and capacity to acquire the
      Royalty and to enter into and perform all its obligations under this
      Agreement.

	 	 	 
	 	(b) 	
      Due Authorization. The execution and delivery of
      this Agreement and all documents, instruments and agreements required to
      be executed and delivered by Franco pursuant to this Agreement, and the
      consummation of the transactions contemplated by this Agreement, have been
      duly authorized by all necessary corporate action on the part of Franco,
      and this Agreement has been duly executed and delivered by Franco and
      constitutes a legal, valid and binding obligation of Franco enforceable
      against Franco in accordance with its terms, except as may be limited by
      bankruptcy, insolvency, liquidation, reorganization, reconstruction and
      other similar laws of general application affecting the enforceability of
      remedies and rights of creditors and except that equitable remedies such
      as specific performance and injunction are in the discretion of a
      court.

	 	 	 
	 	(c) 	
      Non-Contravention. Neither the execution and
      delivery of this Agreement nor the completion and performance of the
      transactions contemplated hereunder will result in a breach of or default
      under, or be contrary to, any of the provisions
of the articles or by-laws of Franco or any indenture,
      contract, agreement or instrument to which Franco is a party or by which
  Franco is bound.

- 8 - 

	 	(d) 	
      Enforceability. This Agreement has been, and each
      document, instrument and agreement to be delivered on Closing to which
      Franco is a party will on Closing be, duly executed and delivered by
      Franco and this Agreement constitutes, and each such closing document,
      instrument and agreement to which Franco is a party will on Closing
      constitute, a legal, valid and binding obligation of Franco enforceable
      against Franco in accordance with its terms.

ARTICLE 5 
COVENANTS

	5.1 	
      Operations by Dorato

	 	 	 
		
      Except as otherwise provided in this Agreement, Dorato
      shall, from the date hereof:

	 	 	 
		(a) 	
      take good care of such Mineral Property and use
      commercially reasonable efforts to preserve, protect and safeguard such
      Mineral Property;

	 	 	 
		(b) 	
      use commercially reasonable efforts to not allow Mineral
      Property to become subject to any Encumbrance on or after the date hereof
      that will have a material adverse effect on the Royalty;

	 	 	 
		(c) 	
      not sell, assign, lease, license, transfer, abandon,
      hypothecate, or otherwise dispose of, or agree to sell, assign, lease,
      license, transfer, hypothecate, or otherwise dispose of, the Mineral
      Property or portion thereof, without the prior written consent of Franco,
      such consent not to be unreasonably withheld; provided that, any permitted
      assignee or transferee shall have first entered into an agreement
      satisfactory to Franco under which such assignee or transferee shall
      assume Dorato’s obligations to Franco under this Agreement; and

	 	 	 
		(d) 	
      make all necessary tax, governmental and other filings
      necessary in respect to the Mineral Property in a timely
  fashion.

5.2            
Mutual Covenants 

     Except as otherwise provided in
this Agreement or as otherwise agreed upon in writing by the Parties, each Party
shall from the date of this Agreement up to the closing use all reasonable
efforts to ensure that the representations and warranties of such Party in this
Agreement are true and correct as of the closing and that the covenants and
conditions to be fulfilled by each such Party pursuant to this Agreement are
fulfilled on or prior to the closing, and shall promptly inform the other Party
of any state of facts that will or is reasonably likely to result in any
representation or warranty of such Party being untrue or incorrect or in any
covenant or condition being unfulfilled at closing. 

- 9 - 

5.3     
Performance by Affiliates

            To
the extent any action or thing, or any document, instrument or other agreement
to be executed or delivered, or any other payment, obligation or covenant to be
fulfilled, observed or performed by either Party pursuant to this Agreement or
any other document, instrument or agreement contemplated hereunder, required to
consummate the transactions contemplated hereunder would require an Affiliate of
such Party to do such action or thing, or execute and deliver such document,
instrument or other agreement, or fulfill, observe or perform such other
payment, obligation or covenant, each of the Parties covenants and agrees to
cause its Affiliate(s), as applicable, to do all such actions or things, execute
and deliver all such documents, instruments and other agreements and to fulfill,
observe and perform all such payments, obligations and covenants. 

5.4      Books; Records;
Inspections; Confidentiality

	 	(a) 	
      Books. Dorato shall keep true and accurate
      financial books and records of all of its operations and activities on the
      Mineral Property and under this Agreement.

	 	 	 
	 	(b) 	
      Access to Data Upon Request. Within thirty (30)
      days following the request of Franco, Dorato will make available to Franco
      Data pertaining to exploration and development activities and operations
      conducted upon or with respect to the Mineral Property, including copies
      of reserve and resource calculations, prefeasibility studies, feasibility
      studies and other geological and engineering reports and studies and
      planned programs with estimates of proposed expenditures upon the Mineral
      Property for the succeeding calendar year.

	 	 	 
	 	(c) 	
      Inspections. Franco, or its authorized agents or
      representatives, on not less than two (2) days notice to Dorato, may enter
      upon all surface and subsurface portions of the Mineral Property for the
      purpose of inspecting the Mineral Property, all improvements thereto and
      operations thereon, as well as inspecting and copying all records and
      data, including without limitation such records and data which are
      maintained electronically, pertaining to all exploration and development
      activities and operations on or with respect to the Mineral Property,
      improvements thereto and operations thereon. Franco, or its authorized
      agents or representatives, shall enter the Mineral Property at Franco's
      own risk and expense and may not unreasonably hinder operations on or
      pertaining to the Mineral Property. Franco shall indemnify and hold Dorato
      harmless from any damage, claim or demand by reason of injury to Franco or
      Dorato or any of their respective employees, officers, directors, agents
      or representatives caused by Franco's exercise of its rights
  herein.

	 	 	 
	 	(d) 	
      Investor Tours; Use of Public
      Information. Upon reasonable notice to Dorato and not more
      frequently than semi-annually, Franco shall have the right to conduct
      investor tours on the Mineral Property and facilities associated
      therewith; provided that such tours shall not unreasonably interfere with
      Dorato's activities and operations. Such investors tours shall be at the
      sole risk of Franco and its invitees, and Franco shall indemnify and hold
      Dorato harmless from any liability, damage, claim or demand by reason of injury to Franco or
      Dorato or any of their respective invitees, employees, officers,
      directors, agents, or representatives caused by Franco's exercise of its
      rights under this Section. Franco shall have the right to use for its own
      purposes, including, without limitation, reproduction, publication in its
      annual report or other public filings or presentations made public by
      Franco, such images, data, and other information concerning the Mineral
  Property made available to the public by Dorato.

- 10 - 

	 	(e) 	
      Confidentiality. Franco, its
      successors and assignors shall not, without the express written consent of
      Dorato, which consent shall not be unreasonably withheld, disclose any
      confidential or propriety data or information concerning the operations
      conducted on the Mineral Property obtained under this Agreement which is
      not already in the public domain; provided, however, Franco may disclose
      data or information obtained under this Agreement, including confidential
      or proprietary information, without the consent of Dorato: (i) if required
      for compliance with applicable laws, rules, regulations or orders of a
      Governmental Authority or stock exchange having jurisdiction over Franco
      or its parent or affiliated corporations; (ii) to any of Franco's
      consultants; (iii) to any third party to whom Franco, in good faith,
      anticipates selling or assigning Franco's interest hereunder; or (iv) to a
      prospective lender to whom an interest in the Royalty payments to be made
      to Franco hereunder is proposed to be granted as security, provided that
      Dorato shall first have been provided with a confidentiality agreement
      executed by such consultant, third party or lender, which agreement shall
      include the confidentiality provisions of this Section 5.6. Franco shall
      not issue any press releases pertaining to the Mineral Property except
      upon giving Dorato three (3) days advance written notice of the contents
      thereof, and Franco shall make any reasonable changes to such proposed
      press releases requested by Dorato. Franco shall not, without Dorato's
      consent, issue any press release that implies or infers that Dorato
      endorses or joins in Franco's statements or representations contained in
      any press release. Franco shall indemnify and hold Dorato harmless from
      any damage, claim or demand by reason of injury to Franco, Dorato or any
      third parties or any of their respective employees, officers, directors,
      agents or representatives caused, directly or indirectly, by disclosure of
      the confidential or proprietary information of Dorato by any employees,
      directors, officers, agents, representatives, consultants, third parties
      or lenders that Franco discloses confidential or proprietary information
      of Dorato to.

ARTICLE 6 
CLOSING

6.1      Date and
Place of Closing 

            The
Closing of the transactions contemplated by this Agreement (the
“Closing”) shall occur on such date as may be mutually agreed upon by the
Parties but not later than thirty (30) days following the effective date hereof
(the “Closing Date”). The Closing shall take place in the offices of
Franco or at such other locations or times as may be agreed upon by the Parties.

- 11 - 

	6.2 	
      Franco's Closing Deliveries

	 	 	 
		
      At the Closing, Franco shall deliver the following to
      Dorato:

	 	 	 
		(a) 	
      the Purchase Price paid and satisfied in accordance with
      Article 2 hereof;

	 	 	 
		(b) 	
      an executed Royalty Agreement (in the form attached
      hereto as Schedule B); and

	 	 	 
		(c) 	
      such other documentation in form and substance required
      by Dorato, acting reasonably, to effect the closing contemplated
      hereby.

	 	 	 
	6.3 	
      Dorato’s Closing Deliveries

	 	 	 
		
      At the Closing Dorato shall deliver the following to
      Franco:

	 	 	 
		(a) 	
      an executed Royalty Agreement (in the form attached
      hereto as Schedule B);

	 	 	 
		(b) 	
      certified copies of resolutions of the directors of
      Dorato and, if required, the shareholders of Dorato, approving the
      transactions contemplated by this Agreement and the execution and delivery
      of this Agreement and all documents, instruments and agreements required
      to be executed and delivered by Dorato pursuant to this Agreement and the
      performance by Dorato of its rights and obligations thereunder;
  and

	 	 	 
		(c) 	
      such other transfers, assignments and other documentation
      in form and substance agreed to by the Parties, acting reasonably,
      required by Franco, acting reasonably, to transfer the Royalty to Franco
      .

	 	 	 
	6.4 	
      Concurrent Delivery

            It
shall be a condition of the Closing that all matters of payment and the
execution and delivery of documents by any Party to the other Party pursuant to
the terms of this Agreement shall be concurrent requirements and that nothing
will be complete at the Closing until everything required as a condition
precedent to the Closing has been paid, executed and delivered, as the case may
be. 

	6.5 	
      Conditions of Closing

	 	 	 
		(a) 	
      Conditions of Closing in Favor of Franco . As a
      condition precedent to closing, the representations and warranties of
      Dorato contained in this Agreement shall be true and correct on and as of
      the Closing Date with the same force and effect as though such
      representations and warranties had been made at and as of such time; and
      that all of the terms, covenants, obligations and conditions of this
      Agreement to be performed, observed or complied with by Dorato on or
      before the Closing Date shall have been duly performed, observed or
      complied with by Dorato;

	 	 	 
		(b) 	
      Conditions of Closing in Favor of Dorato. As a
      condition precedent to closing, the representations and warranties of
      Franco contained in Section 4.1 of
this Agreement shall be true and correct on and as of the Closing Date with the same force and effect as though such representations and warranties had been made at and as of the Closing; and that all of the terms, covenants, obligations and conditions of this Agreement to be performed, observed or complied with by Franco on or before the Closing Date shall have been duly performed, observed or complied with by Franco.

- 12 - 

6.6     
Termination of Royalty Option Agreement 

            In
consideration of the execution and delivery of this Royalty Purchase Agreement,
the closing, and the execution and delivery of the Royalty Agreement by Franco
and Dorato, the Royalty Option Agreement dated August 18, 2008, as amended by
that First Amendment to Royalty Option Agreement dated March 30, 2009, shall be
deemed terminated.

ARTICLE 7 
RESPONSIBILITY FOR OBLIGATIONS
AND LIABILITIES 

7.1      Mineral
Property 

            Dorato
shall be responsible for the satisfaction, discharge, fulfillment, observance,
performance and payment of all liabilities whatsoever in respect of Mineral
Property, which are to be satisfied, discharged, fulfilled, observed, performed
or paid, from and after the date hereof, and Dorato shall indemnify and save
Franco harmless from and against any losses suffered or incurred by Franco by
reason of the failure of Dorato to perform or pay any of such liabilities
referred to in this Section 7.1 and for which Dorato is responsible under
applicable law and otherwise as provided in this Agreement. 

7.2      Payment
of Taxes on Sale and Transfer

            Franco
shall be responsible for and shall pay when due any excise taxes (goods and
services taxes) and similar taxes (but not income taxes of Dorato) and any
registration fees payable in respect of the sale and transfer of the Royalty to
Franco. 

ARTICLE 8 
SURVIVAL OF REPRESENTATIONS
AND INDEMNIFICATION

8.1    
 Survival 

           
The representations, warranties, covenants and obligations of: 

	 	(a) 	
      Dorato in or under this Agreement and in or under any
      documents, instruments and agreements delivered pursuant to this
      Agreement; and

	 	 	 
	 	(b) 	
      Franco in or under this Agreement and in or under any
      documents, instruments and agreements delivered pursuant to this
      Agreement,

shall survive the Closing and shall continue in full force and
effect for a period of three years from the Closing Date. 

- 13 - 

8.2     
Indemnification by Dorato

            Dorato
agrees to indemnify and save harmless Franco from and against all losses
suffered or incurred by Franco as a result of or arising directly or indirectly
out of or in connection with: 

	 	(a) 	
      any material breach by Dorato or any material
      misrepresentation or inaccuracy of any representation or warranty of
      Dorato contained in this Agreement or in any document, instrument or
      agreement delivered pursuant hereto; and

	 	 	 
	 	(b) 	
      any material breach or non-performance by Dorato of any
      covenant or obligation to be performed by Dorato which is contained in
      this Agreement or in any document, instrument or agreement delivered
      pursuant hereto.

8.3     
Indemnification by Franco 

  
         Franco agrees to indemnify
and save harmless Dorato from and against all losses suffered or incurred by
Dorato as a result of or arising directly or indirectly out of or in connection
with: 

	 	(a) 	
      any material breach by Franco or any material
      misrepresentation or inaccuracy of any representation or warranty of
      Franco contained in this Agreement or in any document, instrument or
      agreement delivered pursuant hereto; and

	 	 	 
	 	(b) 	
      any material breach or non-performance by Franco of any
      covenant or obligation to be performed by Franco which is contained in
      this Agreement or in any document, instrument or agreement delivered
      pursuant hereto.

ARTICLE 9

MISCELLANEOUS 

9.1      Legal and Other
Fees and Expenses 

          Unless
otherwise specifically provided herein, the Parties will pay their respective
legal, accounting and other professional fees and expenses incurred by each of
them in connection with the negotiation and settlement of this Agreement, the
completion of the Transaction and other matters pertaining hereto. 

9.2   
  Notices

(a)      Any notice, request,
demand or other communication required or permitted to be given by any Party to
another pursuant to this Agreement shall be in writing and shall be delivered in
person, transmitted by facsimile or similar means of recorded electronic
communication or sent by prepaid registered mail, addressed as follows: 

- 14 - 

	 	(i) 	
      if to Franco:

	 	 	 
	 		
      Franco-Nevada Corporation 
Exchange Tower 
130 King
      Street West 
Suite 740, PO Box 467 
Toronto, Ontario M5X
  1E4

	 	 	 
	 		
      Attention:      Chief Legal
      Officer 
Facsimile:      
    416-306-6330

	 	 	 
	 	(ii) 	
      if to Dorato:

	 	 	 
	 		
      Dorato Resources Inc.

	 	 	 
	 		
      Suite 2300 – 1177 West Hastings Street 
Vancouver,
      British Columbia  V6E 2K3

	 	 	 
	 		
      Attention:      President
      and Chief Executive Officer 
Telephone:   
      604-638-5817 
Facsimile:      
      604-408-7499

(b)      Any such notice or other
communication shall be deemed to have been given and received on the day on
which it was personally delivered or transmitted (or, if such day is not a
Business Day or if delivery or transmission is made on a Business Day after 5:00
p.m. at the place of receipt, then on the next following Business Day) or, if
mailed, on the third Business Day following the date of mailing; provided,
however, that if at the time of mailing or within three Business Days thereafter
there is or occurs a labour dispute or other event which might reasonably be
expected to disrupt the delivery of documents by mail, any notice or other
communication hereunder shall be delivered or transmitted by means of recorded
electronic communication as aforesaid. 

   
        Either Party may at any time
change its address for service from time to time by giving notice to the other
Party in accordance with this Section 9.2. 

9.3      Time of the
Essence

    
       Time is of the essence of this
Agreement. 

9.4      Brokers' Fees
and Commissions

        
   Each of the Parties acknowledges and agrees that it has not
engaged any broker, agent or other intermediary to act on its behalf on
connection with the transactions contemplated by this Agreement and that it is
not aware of any current or possible future claim for any brokerage, agency or
finder's fee or commission in connection with the transactions contemplated by
this Agreement and that if any such claim should arise through, or under, or by
virtue of any action taken by any Party, such Party shall indemnify and hold
harmless the others in respect thereof. 

- 15 - 

9.5      Entire
Agreement

        
   This Agreement constitutes the entire agreement between Franco
and Dorato pertaining to the subject matter hereof and supersedes all prior
agreements, undertakings, understandings, negotiations and discussions, whether
oral or written, of Franco and Dorato, and there are no representations,
warranties, conditions, covenants, obligations, agreements or other provisions,
express or implied, collateral, statutory or otherwise, between Franco and
Dorato except as set forth in this Agreement. 

9.6   
  Confidentiality; Public Disclosure

         
  (a)      Except as provided in Section
5.4 of this Agreement, this Agreement and the contents hereof, and any
instruments or agreements in implementation of this Agreement, shall be
maintained in confidence by the Parties and not be disclosed to any other person
(except as may be required by applicable Law or pursuant to any royalty
agreement and then only upon notice by the disclosing Party to the other Party)
without the prior written approval of the other Party, which shall not be
unreasonably withheld. 

       
    (b)      Except as provided in
Section 5.4 of this Agreement, the content of any public disclosure or press
release respecting this Agreement or the transactions contemplated hereby shall
be approved by both Parties hereto prior to the making of such public disclosure
or press release, which approval shall not be unreasonably withheld by the Party
not subject to such disclosure requirements, provided that this Section 9.6 is
subject always to all disclosure obligations of Franco and Dorato under
applicable securities laws. 

9.7      Enurement
and Assignment

         
  This Agreement shall enure to the benefit of and shall be binding on
and enforceable by the Parties and, where the context so permits, their
respective successors and permitted assigns. Dorato may not assign its rights
under this Agreement in whole or in part except with the prior written consent
of Franco; and in full compliance with its covenants in Section 5.1(c) above.
Franco may freely assign, convey or transfer the Royalty and/or all or any part
of its rights, liabilities and obligations under this Agreement, to any
Affiliate or third party. 

9.8   
  Severability

         
  Each of the provisions contained in this Agreement is distinct and
severable and a determination of illegality, invalidity or unenforceability of
any such provision or part hereof by a court of competent jurisdiction shall not
affect the validity or enforceability of any other provision hereof, unless as a
result of such determination this Agreement would fail in its essential
purposes. 

9.9    
 Further Assurances 

           
Each Party to this Agreement covenants and agrees that, from time to time
subsequent to the date hereof, such Party will, at the request and expense of
the requesting Party, execute and deliver all such documents, instruments and
agreements, including all such conveyances, transfers, consents, assumption
documents and other assurances and do all such other acts and things as the other Party hereto, acting reasonably, may from
time to time request be executed or done in order to better evidence or secure,
record, perfect Franco’s and/or Dorato’s title and interest hereunder or to
effectuate any provision of this Agreement or of any agreement or other document
executed pursuant to this Agreement or any of the respective obligations
intended to be created hereby or thereby. 

- 16 - 

9.10     Waiver and
Amendment

         
  Except as expressly provided in this Agreement, no amendment or
waiver of any provision of this Agreement shall be binding on either Party
unless consented to by such Party in writing specifically referencing the
provision so amended or waived. No waiver of any provision, or any portion of
any provision, of this Agreement will constitute a waiver of any other part of
the provision or any other provision of this Agreement nor a continuing waiver
unless otherwise expressly provided. 

9.11     No Third Party
Rights

        
   Nothing in this Agreement shall be construed as giving any
person other than the Parties to this Agreement any legal or equitable right,
remedy or claim under or in respect of this Agreement. 

9.12     Counterparts;
Facsimiles

           
This Agreement may be executed in separate counterparts and by facsimile or
email counterparts, each of which shall constitute an original and all of which,
taken together shall constitute one and the same instrument. 

 

 

SCHEDULE A
 MINERAL PROPERTY 

A-1 

	CODIGOU    	CONCESION 	TITULAR 	FECHA DENUNCIO 	AREA_HA  	D_ESTADO 
	10023208 	MARAVILLA 19 	CARLOS ARMANDO
      BALLON BARRAZA 	     15/01/2008
      0:00 	1000   	D.M. en trámite D.L. 708 
	10023308 	MARAVILLA 20 	CARLOS ARMANDO BALLON BARRAZA    	     15/01/2008 0:00 	500   	D.M. en trámite D.L. 708 
	10023408 	MARAVILLA 21 	CARLOS ARMANDO
      BALLON BARRAZA 	     15/01/2008
      0:00 	700   	D.M. en trámite D.L. 708 
	10080907 	MARAVILLA 1 	CARLOS ARMANDO BALLON BARRAZA    	     12/01/2007 0:00 	200   	D.M. en trámite D.L. 708 
	10081007 	MARAVILLA 2 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/01/2007
      0:00 	1000   	D.M. en trámite D.L. 708 
	10081107 	MARAVILLA 3 	CARLOS ARMANDO BALLON BARRAZA    	     12/01/2007 0:00 	1000   	D.M. en trámite D.L. 708 
	10081207 	MARAVILLA 4 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/01/2007
      0:00 	1000   	D.M. en trámite D.L. 708 
	10081407 	MARAVILLA 6 	CARLOS ARMANDO BALLON BARRAZA    	     12/01/2007 0:00 	1000   	D.M. Titulado D.L. 708 
	10081507 	MARAVILLA 7 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/01/2007
      0:00 	800   	D.M. Titulado D.L. 708 
	10081607 	MARAVILLA 8 	CARLOS ARMANDO BALLON BARRAZA    	     12/01/2007 0:00 	700   	D.M. Titulado D.L. 708 
	10081707 	MARAVILLA 9 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/01/2007
      0:00 	700   	D.M. Titulado D.L. 708 
	10082007 	MARAVILLA 10 	CARLOS ARMANDO BALLON BARRAZA    	     12/01/2007 0:00 	1000   	D.M. Titulado D.L. 708 
	10088007 	MARAVILLA 12 	CARLOS ARMANDO
      BALLON BARRAZA 	     17/01/2007
      0:00 	932   	D.M. en trámite D.L. 708 
	10088107 	MARAVILLA 13 	CARLOS ARMANDO BALLON BARRAZA    	     17/01/2007 0:00 	1000   	D.M. en trámite D.L. 708 
	10088207 	MARAVILLA 14 	CARLOS ARMANDO
      BALLON BARRAZA 	     17/01/2007
      0:00 	873   	D.M. en trámite D.L. 708 
	10088307 	MARAVILLA 15 	CARLOS ARMANDO BALLON BARRAZA    	     17/01/2007 0:00 	908   	D.M. en trámite D.L. 708 
	10088407 	MARAVILLA 16 	CARLOS ARMANDO
      BALLON BARRAZA 	     17/01/2007
      0:00 	95   	D.M. en trámite D.L. 708 
	10088507 	MARAVILLA 17 	CARLOS ARMANDO BALLON BARRAZA    	     17/01/2007 0:00 	1000   	D.M. en trámite D.L. 708 
	10173707 	PAMINA 	NATALIA
      RODRIGUEZ CHANG 	     08/03/2007
      0:00 	1000   	D.M. Titulado D.L. 708 
	10257406 	LAHAINA 1 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	803   	D.M. en trámite D.L. 708 
	10257506 	LAHAINA 2 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/06/2006
      0:00 	900   	D.M. en trámite D.L. 708 
	10257606 	LAHAINA 3 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	900   	D.M. en trámite D.L. 708 
	10257806 	LAHAINA 5 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/06/2006
      0:00 	800   	D.M. en trámite D.L. 708 
	10257906 	LAHAINA 6 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	976   	D.M. en trámite D.L. 708 
	10258006 	LAHAINA 7 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/06/2006
      0:00 	1000   	D.M. en trámite D.L. 708 
	10258106 	LAHAINA 8 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	1000   	D.M. en trámite D.L. 708 
	10258206 	LAHAINA 9 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/06/2006
      0:00 	1000   	D.M. en trámite D.L. 708 
	10258306 	LAHAINA 10 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	1000   	D.M. en trámite D.L. 708 
	10258406 	LAHAINA 11 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/06/2006
      0:00 	900   	D.M. en trámite D.L. 708 
	10258506 	LAHAINA 12 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	800   	D.M. en trámite D.L. 708 
	10258606 	LAHAINA 13 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/06/2006
      0:00 	883   	D.M. Titulado D.L. 708 
	10258706 	LAHAINA 14 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	1000   	D.M. Titulado D.L. 708 
	10258806 	LAHAINA 15 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/06/2006
      0:00 	1000   	D.M. Titulado D.L. 708 
	10258906 	LAHAINA 16 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	1000   	D.M. Titulado D.L. 708 
	10259006 	LAHAINA 17 	CARLOS ARMANDO
      BALLON BARRAZA 	     12/06/2006
      0:00 	800   	D.M. en trámite D.L. 708 
	10326408 	DAVID B1 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	1000   	D.M. Titulado D.L. 708 
	10326508 	DAVID B2 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10326608 	DAVID B3 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	1000   	D.M. Titulado D.L. 708 
	10326708 	DAVID B4 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10326808 	DAVID B6 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	534   	D.M. en trámite D.L. 708 
	10326908 	DAVID B5 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10327008 	DAVID B7 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	1000   	D.M. Titulado D.L. 708 
	10327108 	DAVID B8 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10327208 	DAVID B9 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	1000   	D.M. Titulado D.L. 708 
	10327308 	DAVID B10 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10327408 	DAVID B11 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	1000   	D.M. Titulado D.L. 708 
	10327508 	DAVID B12 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10327608 	DAVID B13 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	1000   	D.M. Titulado D.L. 708 
	10327708 	DAVID B14 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10327808 	DAVID B15 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	556   	D.M. Titulado D.L. 708 
	10327908 	DAVID B16 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	800   	D.M. Titulado D.L. 708 
	10328008 	DAVID B17 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	1000   	D.M. Titulado D.L. 708 
	10328108 	DAVID B18 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10328208 	DAVID B19 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	1000   	D.M. Titulado D.L. 708 
	10328308 	DAVID B20 	CARLOS ARMANDO
      BALLON BARRAZA 	     02/06/2008
      0:00 	1000   	D.M. Titulado D.L. 708 
	10328408 	DAVID B21 	CARLOS ARMANDO BALLON BARRAZA    	     02/06/2008 0:00 	700   	D.M. Titulado D.L. 708 
	10406207 	MARAVILLA 18 	CARLOS ARMANDO
      BALLON BARRAZA 	     01/08/2007
      0:00 	945   	D.M. Titulado D.L. 708  

	CODIGOU    	CONCESION 	TITULAR 	FECHA DENUNCIO 	AREA_HA 	D_ESTADO 
	10454806 	VICMARAMA 11 	VICTOR MARIANO
      ALVARO MARTINEZ 	     27/10/2006
      0:00 	900   	D.M. en trámite D.L. 708 
	10454906 	VICMARAMA 10 	VICTOR MARIANO ALVARO MARTINEZ    	     27/10/2006 0:00 	1000   	D.M. Titulado D.L. 708 
	10455106 	VICMARAMA 13 	VICTOR MARIANO
      ALVARO MARTINEZ 	     27/10/2006
      0:00 	809   	D.M. en trámite D.L. 708 
	10455206 	VICMARAMA 4 	VICTOR MARIANO ALVARO MARTINEZ    	     27/10/2006 0:00 	800   	D.M. Titulado D.L. 708 
	10455406 	VICMARAMA 3 	VICTOR MARIANO
      ALVARO MARTINEZ 	     27/10/2006
      0:00 	1000   	D.M. Titulado D.L. 708 
	10455506 	VICMARAMA 6 	VICTOR MARIANO ALVARO MARTINEZ    	     27/10/2006 0:00 	1000   	D.M. Titulado D.L. 708 
	10455606 	VICMARAMA 16 	VICTOR MARIANO
      ALVARO MARTINEZ 	     27/10/2006
      0:00 	967   	D.M. en trámite D.L. 708 
	10455706 	VICMARAMA 5 	VICTOR MARIANO ALVARO MARTINEZ    	     27/10/2006 0:00 	792   	D.M. Titulado D.L. 708 
	10455806 	VICMARAMA 9 	VICTOR MARIANO
      ALVARO MARTINEZ 	     27/10/2006
      0:00 	1000   	D.M. Titulado D.L. 708 
	10455906 	VICMARAMA 2 	VICTOR MARIANO ALVARO MARTINEZ    	     27/10/2006 0:00 	815   	D.M. Titulado D.L. 708 
	10456006 	VICMARAMA 14 	VICTOR MARIANO
      ALVARO MARTINEZ 	     27/10/2006
      0:00 	675   	D.M. en trámite D.L. 708 
	10456106 	VICMARAMA 8 	VICTOR MARIANO ALVARO MARTINEZ    	     27/10/2006 0:00 	1000   	D.M. Titulado D.L. 708 
	10456206 	VICMARAMA 15 	VICTOR MARIANO
      ALVARO MARTINEZ 	     27/10/2006
      0:00 	1000   	D.M. en trámite D.L. 708 
	10456306 	VICMARAMA 1 	VICTOR MARIANO ALVARO MARTINEZ    	     27/10/2006 0:00 	400   	D.M. Titulado D.L. 708 
	10459106 	LAHAINA 18 	CARLOS ARMANDO
      BALLON BARRAZA 	     27/10/2006
      0:00 	461   	D.M. en trámite D.L. 708 
	10459206 	LAHAINA 19 	CARLOS ARMANDO BALLON BARRAZA    	     27/10/2006 0:00 	922   	D.M. Titulado D.L. 708 
	10459306 	LAHAINA 20 	CARLOS ARMANDO
      BALLON BARRAZA 	     27/10/2006
      0:00 	1000   	D.M. Titulado D.L. 708 
	10459406 	LAHAINA 21 	CARLOS ARMANDO BALLON BARRAZA    	     27/10/2006 0:00 	200   	D.M. Titulado D.L. 708 
	10459506 	LAHAINA 22 	CARLOS ARMANDO
      BALLON BARRAZA 	     27/10/2006
      0:00 	957   	D.M. Titulado D.L. 708 
	10459606 	LAHAINA 23 	CARLOS ARMANDO BALLON BARRAZA    	     27/10/2006 0:00 	800   	D.M. Titulado D.L. 708 
	10459706 	LAHAINA 24 	CARLOS ARMANDO
      BALLON BARRAZA 	     27/10/2006
      0:00 	948   	D.M. Titulado D.L. 708 
	10459806 	LAHAINA 25 	CARLOS ARMANDO BALLON BARRAZA    	     27/10/2006 0:00 	973   	D.M. Titulado D.L. 708 
	10459906 	LAHAINA 26 	CARLOS ARMANDO
      BALLON BARRAZA 	     27/10/2006
      0:00 	1000   	D.M. Titulado D.L. 708 
	10460006 	LAHAINA 28 	CARLOS ARMANDO BALLON BARRAZA    	     27/10/2006 0:00 	951   	D.M. Titulado D.L. 708 
	10460106 	LAHAINA 27 	CARLOS ARMANDO
      BALLON BARRAZA 	     27/10/2006
      0:00 	1000   	D.M. Titulado D.L. 708 
	10460206 	VICMARAMA 17 	VICTOR MARIANO ALVARO MARTINEZ    	     27/10/2006 0:00 	900   	D.M. en trámite D.L. 708 
	10023508 	MARAVILLA 22 	CARLOS ARMANDO
      BALLON BARRAZA 	     15/01/2008
      0:00 	220   	D.M. en Trámite D.L 
	10257706 	LAHAINA 4 	CARLOS ARMANDO BALLON BARRAZA    	     12/06/2006 0:00 	689   	D.M. en Trámite D.L 
	10656208 	RIO AYAMBIS 1 	JORGE ARTURO
      BEDOYA TORRICO 	     19/11/2008
      0:00 	1000   	D.M. en trámite D.L. 708 
	10656308 	RIO AYAMBIS 2 	JORGE ARTURO BEDOYA TORRICO 	     19/11/2008 0:00 	500   	D.M. en trámite D.L. 708 
	10656408 	RIO AYAMBIS 3 	JORGE ARTURO
      BEDOYA TORRICO 	     19/11/2008
      0:00 	500   	D.M. en trámite D.L. 708 
	10656508 	RIO AYAMBIS 4 	JORGE ARTURO BEDOYA TORRICO 	     19/11/2008 0:00 	800   	D.M. en trámite D.L. 708 
	10656608 	RIO AYAMBIS 5 	JORGE ARTURO
      BEDOYA TORRICO 	     19/11/2008
      0:00 	327   	D.M. en trámite D.L. 708 
	10655108 	ALTO CANGAZA 9 	JORGE ARTURO BEDOYA TORRICO 	     19/11/2008 0:00 	100   	D.M. en trámite D.L. 708 
	10655208 	ALTO CANGAZA 11 	JORGE ARTURO
      BEDOYA TORRICO 	     19/11/2008
      0:00 	1000   	D.M. en trámite D.L. 708 
	10655308 	ALTO CANGAZA 12 	JORGE ARTURO BEDOYA TORRICO 	     19/11/2008 0:00 	900   	D.M. en trámite D.L. 708 
	10655408 	ALTO CANGAZA 10 	JORGE ARTURO
      BEDOYA TORRICO 	     19/11/2008
      0:00 	900   	D.M. en trámite D.L. 708 
	10655508 	ALTO CANGAZA 13 	JORGE ARTURO BEDOYA TORRICO 	     19/11/2008 0:00 	600   	D.M. en trámite D.L. 708 
	10655608 	ALTO CANGAZA 14 	JORGE ARTURO
      BEDOYA TORRICO 	     19/11/2008
      0:00 	400   	D.M. en trámite D.L. 708 
	10655708 	ALTO CANGAZA 15 	JORGE ARTURO BEDOYA TORRICO 	     19/11/2008 0:00 	400   	D.M. en trámite D.L. 708 
	10655908 	RIO NARAIME 1 	JORGE ARTURO
      BEDOYA TORRICO 	     19/11/2008
      0:00 	400   	D.M. en trámite D.L. 708 
	10656008 	RIO CANGAZA 1 	JORGE ARTURO BEDOYA TORRICO 	     19/11/2008 0:00 	500   	D.M. en trámite D.L. 708 
	10656108 	RIO CANGAZA 2 	JORGE ARTURO
      BEDOYA TORRICO 	     19/11/2008
      0:00 	900   	D.M. en trámite D.L. 708 
	10006909 	RIO AYAMBIS 6A 	JORGE ARTURO BEDOYA TORRICO 	     19/11/2008 0:00 	900   	D.M. en trámite D.L. 708 
	10094212 	GRAYSTONE 3 	GRUPO MINERAL
      INCA S.A.C 	     15/02/2012
      0:00 	700   	D.M. en trámite D.L. 708 
	10645407 	EESM 9 	ENRIQUE EDMUNDO SANCHEZ
      MCCLINTON 	     11/12/2007 0:00 	997   	D.M. Titulado D.L. 708 
	10645507 	EESM 10 	ENRIQUE EDMUNDO
      SANCHEZ MCCLINTON 	     11/12/2007
      0:00 	874   	D.M. Titulado D.L. 708 
	10645607 	EESM 11 	ENRIQUE EDMUNDO SANCHEZ
      MCCLINTON 	     11/12/2007 0:00 	1000   	D.M. Titulado D.L. 708 
	10645707 	EESM 12 	ENRIQUE EDMUNDO
      SANCHEZ MCCLINTON 	     11/12/2007
      0:00 	1000   	D.M. Titulado D.L. 708 
	10645807 	EESM 13 	ENRIQUE EDMUNDO SANCHEZ
      MCCLINTON 	     11/12/2007 0:00 	1000   	D.M. Titulado D.L. 708 
	10645907 	EESM 14 	ENRIQUE EDMUNDO
      SANCHEZ MCCLINTON 	     11/12/2007
      0:00 	926   	D.M. en Trámite D.L. 708 
	10646007 	EEMS 15 	ENRIQUE EDMUNDO SANCHEZ
      MCCLINTON 	     11/12/2007 0:00 	1000   	D.M. Titulado D.L. 708 
	10646107 	EESM 16 	ENRIQUE EDMUNDO
      SANCHEZ MCCLINTON 	     11/12/2007
      0:00 	960   	D.M. Titulado D.L. 708 
	10646207 	EESM 17 	ENRIQUE EDMUNDO SANCHEZ
      MCCLINTON 	     11/12/2007 0:00 	769   	D.M. en Trámite D.L. 708 
	10646307 	EESM 18 	ENRIQUE EDMUNDO
      SANCHEZ MCCLINTON 	     11/12/2007
      0:00 	823   	D.M. en Trámite D.L. 708 
	10000508 	EESM 21 	ENRIQUE EDMUNDO SANCHEZ
      MCCLINTON 	     02/01/2008 0:00 	255   	D.M. en Trámite D.L. 708 
	10330608 	EESM 29 	ENRIQUE EDMUNDO
      SANCHEZ MCCLINTON 	     03/06/2008
      0:00 	1000   	D.M. en Trámite D.L. 708  

	CODIGOU    	CONCESION 	TITULAR 	FECHA DENUNCIO 	AREA_HA 	D_ESTADO 
	10330708 	EESM 30 	ENRIQUE EDMUNDO SANCHEZ
      MCCLINTON 	     03/06/2008
      0:00 	1000    	D.M. en Trámite D.L. 708 
	10330808 	EESM 31 	ENRIQUE EDMUNDO SANCHEZ MCCLINTON 	     03/06/2008 0:00 	700    	D.M. en Trámite D.L. 708 
	10364208 	EESM 38 	ENRIQUE EDMUNDO SANCHEZ
      MCCLINTON 	     24/06/2008
      0:00 	600    	D.M. en Trámite D.L. 708 
	10364308 	EESM 37 	ENRIQUE EDMUNDO SANCHEZ MCCLINTON 	     24/06/2008 0:00 	1000    	D.M. en Trámite D.L. 708 
	03001507X01 	LA LUMINOSA 	S.M.R.L. LA LUMINOSA DE
      CAJAMARCA 	     08/07/1970
      0:00 	391    	CONC NO EMP D.L. 109  

 

 

 

 

 

SCHEDULE B 
ROYALTY AGREEMENT 

          THIS
AGREEMENT is made effective the _______day of ____________, 2012, by Dorato
Resources Inc., herein referred to as “Operator”, and Franco-Nevada Corporation,
herein referred to as “Franco”. Operator, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, has granted,
bargained, sold, remised, released, and forever assigned, and by these presents
does grant, bargain, sell, remise, release and forever assign, unto the Franco
that certain production royalty together with the rights and interests, subject
to the obligations set forth below. 

                   
1.           Meaning of
Terms. 

                             
(a)           “Beneficiated
Precious Metals” means doré or concentrates produced from Precious Metals by
Operator’s final mill or other final processing plant, but specifically excludes
(i) raw or crushed ore containing Precious Metals or (ii) other preliminarily
processed Precious Metals; 

                             
(b)           “Environmental
Obligations” means the obligations and covenants of Operator, from and after the
date this Agreement takes effect, not to undertake, cause, suffer, or permit any
condition or activity at, on or in the vicinity of the Property which
constitutes a nuisance or which results in a violation of or liability under any
environmental Laws; 

                             
(c)           “Franco”
includes all of Franco and all of Franco’s successors-in-interest, including
inter alia assignees, partners, joint venture partners, lessees and, when
applicable, mortgagees and Franco’s subsidiary, parent, sister or affiliated
companies; 

                             
(d)           “Hedging
Transactions” means any and all activities by which the Operator sells or
disposes of Minerals by engaging in any commodity futures trading, option
trading, metals trading, or sales or dispositions of Minerals for other than
spot prices, or any combination thereof, and any other hedging transactions;

                             
(e)           “Laws” means all
applicable present or future federal, canton, provincial, and local laws,
statutes, rules, regulations, permits, ordinances, certificates, licenses and
other regulatory requirements, policies and guidelines of the Province of
Ontario, Canada or Peru relating to Operator's operations and activities on or
with respect to the Property; 

                             
(f)           “Minerals” means
all minerals of every nature and kind, including without limitation metals,
precious metals, gems, industrial minerals, commercially valuable rock,
aggregate, clays, and diatomaceous earth, hydrocarbons, oil, gas, and other
materials which are mined, excavated, extracted, recovered in soluble solution
or otherwise recovered or produced from the Concessions; 

                             
(g)           “Monthly
Production” means (i) in the case of Precious Metals, the gross number of troy
ounces of Precious Metals contained in the production from the Property which
were delivered to the Payor during the preceding calendar month; and (ii) in the
case of Other Minerals, the gross amount of the particular Other Mineral
contained in the production from the Property which were delivered to the Payor
during the preceding calendar month; 

B-1 

                              (h) “Net Smelter Returns” has the meaning
ascribed to that term in Sections 4.1 and 4.2; 

                              (i) “Operator” includes all of
  Operator’s successors-in-interest, including inter alia the operator of the
  Property, assignees, partners, joint venture partners, lessees and, when
  applicable, mortgagees and Operator’s subsidiary, parent, sister or affiliated
  companies; 

                              (j) “Other Minerals” means all Minerals other than Precious Metals
  and Beneficiated Precious Metals; 

                              (k) “Party” or “Parties” means one or more of
  the persons or entities who or which are a party to this Agreement; 

                              (l) “Payor”
  means the smelter, refiner, processor, purchaser or other recipient of such
  production, or an insurer as a result of casualty to such production to whom the
  Monthly Production is delivered; 

                              (m) “Precious Metals” means gold, silver and
  platinum group metals contained in the Minerals, and includes Beneficiated
  Precious Metals; 

                              (n) “Property” means all of the right, title and interest in
  and to the lands, leases and concessions and all other real property rights
  described in Exhibit A attached hereto and incorporated herein by this
  reference; 

                              (o) “Royalty” means the Royalty described in Section 4 of this
  Agreement, together will all other rights of the Franco as set forth elsewhere
  in this Agreement. 

                     2.          
  Term. The term of this Agreement shall be perpetual, it being the intent
of the Parties hereto that, to the extent allowed by law, the Royalty
constitutes an interest in the land affecting the Property and all successions
thereof whether created privately or through governmental action. 

                   
3.           Property
Subject to Royalty. The Property subject to this Agreement includes without
limitation, all of the mineral rights, mineral claims, mining leases, permits
and concessions and other property interests owned or controlled by the Operator
in Peru, on the effective date hereof, more particularly described in Exhibit A
attached hereto and incorporated herein by this reference, including new or
replacement claims, leases, permits, or concessions or other after acquired
rights or interests covering all or part of the same land. 

                   
4.           Royalty.
Operator shall pay to Franco a perpetual Royalty in the amount two percent (2%)
of Net Smelter Returns from the sale or other disposition of Minerals produced
from the Property, determined in accordance with the provisions set forth in
this Section and, if applicable, Section 8. 

B-2 

                                
4.1.           For Precious
Metals. Net Smelter Returns, in the case of Precious Metals, shall be
determined by multiplying (i) the Monthly Production by (ii) for gold, the
average of the London Bullion Market, Afternoon Fix, spot prices for the
calendar month of the Monthly Production; for all other Precious Metals, the
average of the New York Commodities Exchange final daily spot prices for the
calendar month of the Monthly Production, and subtracting from the product of
(i) and (ii) only the following if actually incurred and paid by Operator: 

	 	(a) 	
      charges imposed by the Payor for refining bullion from
      Beneficiated Precious Metals contained in such production;

	 	 	 
	 	(b) 	
      penalty substance, assaying, and sampling charges imposed
      by the Payor for refining Beneficiated Precious Metals contained in such
      production;

	 	 	 
	 	(c) 	
      the net amount of mining and severance taxes assessed
      directly on the production of Precious Metals, but excluding without
      limitation all such taxes paid directly by Franco and any and all taxes
      based upon either (i) the net or gross income of the Operator or (ii) the
      value of the Property, the privilege of doing business, and other
      similarly based taxes;

	 	 	 
	 	(d) 	
      all reasonable transportation costs to a smelter, mint or
      refinery including, without restricting the generality of the foregoing,
      any and all costs of insurance in respect thereto; and

	 	 	 
	 	(e) 	
      costs and expenses of marketing, if
any.

In the event the refining of bullion from the Beneficiated
Precious Metals contained in such production is carried out in custom toll
facilities owned or controlled, in whole or in part, by Operator, which
facilities were not constructed for the purpose of refining Precious Metals or
Other Minerals, then charges, costs and penalties for such refining shall mean
the amount Operator would have incurred if such refining were carried out at
facilities not owned or controlled by Operator then offering comparable services
for comparable products on prevailing terms, but in no event greater than actual
costs incurred by Operator with respect to such refining. 

In the event Operator receives insurance proceeds for loss of
production, Operator shall pay to Franco the Royalty percentage of the gross
amount of any such insurance proceeds which are received by Operator for such
loss of production. 

                                
4.2.           For Other
Minerals. Net Smelter Returns, in the case of Other Minerals, shall be
determined by multiplying (i) the Monthly Production by (ii) the average of the
New York Commodities Exchange final daily spot prices for the preceding calendar
month of the appropriate Other Mineral, and subtracting from the product of (i)
and (ii) only the following if actually incurred: 

	 	(a) 	
      charges imposed by the Payor for smelting, refining or
      processing Other Minerals contained in the Monthly Production, but
      excluding any and all charges and costs related to Operator’s mills or
      other final processing plants constructed for the purpose of milling or
      processing Other Minerals, in whole or in part;
and

B-3 

	 	(b) 	
      penalty substance, assaying, and sampling charges imposed
      by the Payor for smelting, refining, or processing Other Minerals
      contained in the Monthly Production, but excluding any and all charges and
      costs of or related to Operator’s mills or other final processing plants
      constructed for the purpose of milling or processing Other Minerals, in
      whole or in part;

	 	 	 
	 	(c) 	
      the net amount of mining and severance taxes assessed
      directly on the production of Other Minerals, but excluding without
      limitation all such taxes paid directly by Franco and any and all taxes
      based upon (i) the net or gross income of the Operator and (ii) the value
      of the Property or the privilege of doing business, and other similarly
      based taxes;

	 	 	 
	 	(d) 	
      all reasonable transportation costs to a smelter, mint or
      refinery including, without restricting the generality of the foregoing,
      any and all costs of insurance in respect thereto; and

	 	 	 
	 	(e) 	
      costs and expenses of marketing, if
any.

In the event smelting, refining, or processing of Other
Minerals are carried out in custom toll facilities owned or controlled, in whole
or in part, by Operator, which facilities were not constructed for the purpose
of milling or processing Precious Metals or Other Minerals, then charges, costs
and penalties for such smelting, refining or processing shall mean the amount
Operator would have incurred if such smelting, refining or processing were
carried out at facilities not owned or controlled by Operator then offering
comparable services for comparable products on prevailing terms, but in no event
greater than actual costs incurred by Operator with respect to such smelting and
refining. 

In the event Operator receives insurance proceeds for loss of
production, Operator shall pay to Franco the Royalty percentage of any such
insurance proceeds which are received by Operator for such loss of production.

                                
4.3.           Unavailable
Spot Prices. If the applicable spot prices in Section 4.1 and 4.2 are no
longer available from the London Bullion Market or New York Commodities
Exchange, as applicable, the Parties shall select a comparable commodity
quotation for purposes of calculating the Net Smelter Returns. If such selection
has not been completed prior to the end of the calendar month following the
month in which the applicable spot prices are no longer available, the average
spot price for the calendar month in which the spot price becomes no longer
available shall be used on an interim basis pending such selection. 

                                
4.4.           Time and
Manner; In-Kind or Cash Payment. At the time of making payment to or
otherwise crediting the account of Operator for production from the Property
pursuant to Sections 4.1 or 4.2 (but within the time provided in Section 4.5),
the Payor shall contemporaneously pay the Royalty in accordance with written
instructions given to the Payor by Franco as provided in Sections 4.4.1 and
4.4.2. Once the Payor has received instructions from Franco, such instructions
shall remain in effect until the Payor has received different instructions from
Franco. All contractual or other arrangements entered into by Operator with the
Payor shall contain provisions implementing the terms and conditions of payment
set forth in Sections 4.4 and 4.5 hereof and Operator shall procure the
written undertaking of Payor contractually binding Payor to perform in
accordance with Sections 4.4 and 4.5 in form and substance enforceable by
Franco. Operator acknowledges its primary obligation to pay the Royalty and that
no undertaking by the Payor shall relieve Operator of that obligation, and
Operator agrees to indemnify, protect and defend Franco from and against any
loss, cost (including attorney’s fees incurred) or liability arising from the
performance or failure of performance by Payor hereunder or under any
contractual or other arrangements entered into by Operator with the Payor
pursuant to or for the purposes of complying with Sections 4.4 and 4.5 hereof.
Franco may, from time to time in its discretion, change the bank or account
number for payment under to Sections 4.4.1 and 4.4.2 by giving written notice
thereof to Operator and the Payor; such notice shall be effective upon actual
receipt by the Payor, or upon the fourth day after deposit of such notice in the
mail, first class postage prepaid, addressed to the Payor, whichever occurs
first. All costs charged by the Payor as a result of complying with the payment
provisions of Sections 4.4 and 4.5 shall be paid by Franco, and Operator shall
have no liability or responsibility therefor. 

B-4 

                                                 
4.4.1.   Precious Metals. The Payor shall pay the Royalty for
each shipment of Precious Metals either (a) in the form of gold bullion (.995+
fine gold) directly to Franco's account maintained with the Payor as directed by
Franco, or (b) by delivery of a cheque or draft payable to Franco's account with
a bank to be designated in writing by Franco. In the event Franco instructs the
Payor to deliver the Royalty in the form of gold bullion, the Royalty payable on
silver or platinum group metals shall be converted to the gold equivalent of
such silver or platinum group metals by using the average monthly spot prices
for Precious Metals described in Section 4.1. 

                                                 
4.4.2.   Other Minerals. The Payor shall pay the Royalty for
each shipment of Other Minerals by delivery of a cheque or draft payable to
Franco's account with a bank to be designated in writing by Franco. 

                                
4.5.           Payment
Accounting; Interim Settlements; Late Charges. All credits or payments of
the Royalty shall be accompanied by a detailed statement explaining the manner
in which the payment was calculated together with any available settlement
sheets from the Payor. In no event shall payment of the Royalty be made later
than thirty (30) days after the delivery to the Payor, or use by Operator, of
the Precious Metals, Beneficiated Precious Metals, or Other Minerals. Such
payments and statements shall be deemed conclusively correct unless Franco
objects to them in writing within eighteen (18) months after receipt thereof. On
those occasions when all necessary information is not available to the Payor
within the thirty (30) day period, the Payor shall make an interim settlement of
the Royalty for such shipment or use within the thirty (30) day period; such
interim settlement shall provide for payment of not less than ninety percent
(90%) of the anticipated final settlement Royalty as determined by the assays
and quantities of the Precious Metals or Other Minerals received by the Payor
with respect to which such interim settlement is being made. Final settlement of
the Royalty shall be promptly made upon receipt by the Payor of all information
necessary or appropriate to make final settlement for such shipment. In the
event payment of any Royalty is not made within the time set forth above, Franco
may give the Operator notice in writing of such default, and unless within five
(5) days of receipt of such notice Franco shall have received such Royalty
payment, then Operator shall pay an additional sum equal to ten percent (10%) of
the delinquent payment (“late charge”) plus interest on the delinquent payment and the late charge at the
rate twelve percent (12%) per annum which shall accrue from the day the
delinquent payment was due to the date of payment of the Royalty, late charge
and accrued interest. 

B-5 

                                
4.6.           Hedging
Transactions: Futures, Options and Other Trading. All profits and losses
resulting from Operator engaging in any commodity futures trading, option
trading, or metals trading, or any combination thereof, and any other hedging
transactions (collectively “hedging transactions”) are specifically excluded
from Royalty calculations pursuant to this Agreement. All hedging transactions
by Operator and all profits or losses associated therewith, if any, shall be
solely for Operator's account. The Royalty payable on Precious Metals or Other
Minerals subject to hedging transactions shall be determined as follows: 

                                                 
4.6.1.    Affecting Precious Metals. The amount of Royalty
to be paid on all Precious Metals subject to hedging transactions by Operator
shall be determined in the same manner as provided in Section 4.1, with the
understanding that the average monthly spot price shall be for the calendar
month during which Precious Metals subject to hedging transactions are delivered
to or credited to the account or benefit of Operator, whichever first occurs, by
the Payor. 

                                                 
4.6.2.    Affecting Other Minerals. The amount of Royalty
to be paid on all Other Minerals subject to hedging transactions by Operator
shall be determined in the same manner as provided in Section 4.2, with the
understanding that the average monthly spot price shall be for the calendar
month during which Other Minerals subject to hedging transactions are delivered
to or credited to the account or benefit of Operator, whichever first occurs, by
the Payor. 

                                
4.7.          
Commingling. Before any Precious Metals or Other Minerals produced from
the Property are commingled with minerals from other properties, the Precious
Metals or Other Minerals produced from the Property shall be measured and
sampled in accordance with sound mining and metallurgical practices for
moisture, metal, commercial minerals and other appropriate content.
Representative samples of the Precious Metals or Other Minerals shall be
retained by Operator and assays (including moisture and penalty substances) and
other appropriate analyses of these samples shall be made before commingling to
determine metal, commercial minerals, and other appropriate content. Detailed
records shall be kept by Operator showing measures, moisture, assays of metal,
commercial minerals, and other appropriate content and penalty substances, and
gross metal content of the Precious Metals or gross metal or mineral content of
Other Minerals. From this information, Operator shall determine the amount of
Royalty due and payable to Franco from Precious Metals or Other Minerals
produced from the Property commingled with minerals from other properties.
Following the expiration of the period for objection described above in Section
4.5, and absent timely objection, if any, made by Franco, Operator may dispose
of the materials and data required to be kept and produced by this Section 4.7.

                   
5.           Books;
Records; Inspections; Confidentiality. 

                                
5.1.           Books.
Operator shall keep true and accurate books and records of all of its operations
and activities on the Property and under this Agreement. Such books and records shall be kept on the accrual basis in accordance with generally
accepted accounting principles consistently applied. Not more frequently than
annually and within the time provided in Section 4.5 of this Agreement, Franco
may, at Franco's sole expense, give notice to Operator that Franco desires to
perform an audit or other examination of all of Operator's books and records
kept as required by this Agreement. All financial information shall conclusively
be deemed correct for purposes of this Agreement unless Franco has given timely
notice that it desires to audit or examine Operator's books and records in the
manner and within the time provided in Section 4.5 of this Agreement. Franco
shall promptly commence any such audits and shall diligently prosecute the same
to conclusion. 

B-6 

                                
5.2.           Reports.
Not later than March 1 following the end of each calendar year, Operator shall
provide Franco with an annual report of all activities and operations conducted
upon or with respect to the Property during the preceding calendar year. Such
annual report shall include estimates of proposed expenditures upon, anticipated
production from, and estimated remaining ore reserves on the Property for the
succeeding calendar year. Additionally and within 30 days of the end of each
calendar quarter, Operator shall provide Franco access to all data and
information generated with respect to the Property during the calendar quarter
just ended. 

                                
5.3.          
Inspections. Franco, or its authorized agents or representatives, on not
less than two (2) days notice to Operator, may enter upon all surface and
subsurface portions of the Property for the purpose of inspecting the Property,
all improvements thereto and operations thereon, as well as inspecting and
copying all records and data, including without limitation such records and data
which are maintained electronically, pertaining to all activities and operations
on or with respect to the Property, improvements thereto and operations thereon.
Franco, or its authorized agents or representatives, shall enter the Property at
Franco's own risk and expense and may not unreasonably hinder operations on or
pertaining to the Property. Franco shall indemnify and hold Operator harmless
from any damage, claim or demand by reason of injury to Franco or Operator or
any of their respective employees, officers, directors, agents or
representatives caused by Franco's exercise of its rights herein. 

                                
5.4.           Investor
Tours; Use of Public Information. Upon reasonable notice to Operator and not
more frequently than semi-annually, Franco shall have the right to conduct an
investors tour on the Property and facilities associated therewith; provided
that such tours shall not unreasonably interfere with Operator's activities and
operations. Such investors tours shall be at the sole risk of Franco and its
invitees, and Franco shall indemnify and hold Operator harmless from any
liability, damage, claim or demand by reason of injury to Franco or Operator or
any of their respective invitees, employees, officers, directors, agents, or
representatives caused by Franco's exercise of its rights under this Section.
Franco shall have the right to inspect and copy all data. Franco shall have the
right to use for its own purposes, including without limitation, reproduction,
publication in its annual report or other public filings, or presentations made
public by Franco, such images, data and other information concerning the
Property made available to the public by Operator. 

                                
5.5.          
Confidentiality. Franco shall not, without the express written consent of
Operator, which consent shall not be unreasonably withheld, disclose any data or
information concerning the Operations conducted on the Property or obtained
under the Agreement or this Agreement which is not already in the public domain; provided,
however, Franco may disclose data or information obtained under this Agreement
without the consent of Operator: (i) if required for compliance with applicable
laws, rules, regulations or orders of a Governmental Authority or stock exchange
having jurisdiction over Franco or its parent or affiliated corporations; (ii)
to any of Franco's consultants; (iii) to any third party to whom Franco, in good
faith, anticipates selling or assigning Franco's interest hereunder; or (iv) to
a prospective lender to whom an interest in the Royalty payments to be made to
Franco hereunder is proposed to be granted as security, provided that Operator
shall first have been provided with a confidentiality agreement executed by such
consultant, third party or lender, which agreement shall include the
confidentiality provisions of this Section 5.6. Franco shall not issue any press
releases pertaining to the Property except upon giving Operator three (3) days
advance written notice of the contents thereof, and Franco shall make any
reasonable changes to such proposed press releases requested by Operator. Franco
shall not, without Operator's consent, issue any press release that implies or
infers that Operator endorses or joins in Franco's statements or representations
contained in any press release. Franco shall indemnify and hold Operator
harmless from any damage, claim or demand by reason of injury to Franco,
Operator or any third parties or any of their respective employees, officers,
directors, agents or representatives caused, directly or indirectly, by
disclosure of the confidential or proprietary information of Operator by any
employees, directors, officers, agents, representatives, consultants, third
parties or lenders that Franco discloses confidential or proprietary information
of Operator to.

B-7 

                   
6.           Compliance
with Laws; Reclamation, Environmental Obligations, and Indemnities.

                                
6.1.           Compliance
with Laws. Operator shall at all times comply with all applicable laws,
statutes, rules, regulations, permits, ordinances, certificates, licenses and
other regulatory requirements, policies and guidelines relating to operations
and activities on or with respect to the Property. 

                                
6.2.           Reclamation,
Environmental Obligations, and Indemnities. Operator shall, from and after
the date this Agreement takes effect, timely and fully perform all reclamation
required by all governmental authorities pertaining or related to Operator's
operations or activities on or with respect to the Property or required under
this Agreement. Operator, from and after the date this Agreement takes effect,
covenants and agrees not to undertake, cause, suffer, or permit any condition or
activity at, on or in the vicinity of the Property which results in a violation
of or liability under any applicable environmental laws, statutes, rules,
regulations, permits, ordinances, certificates, licenses and other regulatory
requirements, policies and guidelines (collectively “Environmental
Obligations”). From and after the date this Agreement takes effect, and in the
event Operator fails to comply with any Environmental Obligations, undertakes
any activity giving rise to liability under any Environmental Obligations, or
otherwise breaches any Environmental Obligations, Operator shall promptly remedy
and correct such failure to comply, satisfy such liability, cure such breach and
satisfy all obligations in connection therewith. Operator covenants and agrees
to indemnify and hold Franco harmless from any and all liabilities, obligations,
claims (including administrative claims and claims for injunctive relief),
losses, costs, damages, expenses, attorney fees and causes of action asserted
against Franco related to Operator's failure to comply with and satisfy
Environmental Obligations or other obligations under this Agreement. The
covenants and agreements of this Section 6.2 shall survive the termination of
Operator's rights under this Agreement or to the Property. 

B-8 

                   
7.          
Stockpiling. The rights of Operator to stockpile, store or place Precious
Metals or Other Minerals off of the Property pursuant to any of the provisions
of this Agreement shall not be exercisable until Operator has first secured from
the property owner where such stockpiling, storage or placement is to occur a
written agreement in recordable form which provides that Franco's rights to the
Precious Metals and Other Minerals shall be preserved. Such agreement shall
provide, inter alia, that (a) Franco's rights pursuant to this Agreement,
insofar as they are applicable, shall continue in full force and effect with
respect to Precious Metals and Other Minerals from the Property; (b) Franco's
rights in and to the Precious and Other Minerals shall be the same as if the
Precious Metals and Other Minerals were situate on the Property; (c) Franco's
rights set forth in this Section 7 shall have precedence over the rights to the
Precious Metals and Other Minerals of the property owner where the Precious
Metals and Other Minerals are stockpiled, stored or placed, as well as the
creditors of the said property owner; and (d) the agreement shall be irrevocable
as long as the Precious Metals and Other Minerals from the Property, or any part
thereof, remain on the property not part of the Property. The provisions of this
Section 7 shall not be applicable to Precious Metals or Other Minerals which at
any given point in time do not exceed a value of contained minerals in excess of
Five Million Dollars ($5,000,000). 

                   
8.           Tailings and
Residues. All tailings, residues, waste rock, spoiled leach materials, and
other materials (collectively “Materials”) resulting from Operator's operations
and activities on the Property shall be the sole property of Operator, but shall
remain subject to the Royalty should the same be processed or reprocessed, as
the case may be, in the future and result in the production of Precious Metals
or Other Minerals. Notwithstanding the foregoing, Operator shall have the right
to dispose of Materials from the Property on or off of the Property and to
commingle the same with Material from other properties. In the event Materials
are processed or reprocessed, as the case may be, the Royalty payable thereon
shall be determined on a pro rata basis as determined by using the best
engineering and technical practices then available. 

                   
9.           Title
Maintenance, Maintenance, and Taxes; Abandonment. 

                                 
9.1.           Title
Maintenance and Taxes. From the date this Agreement takes effect, Operator
shall maintain title to the Property, including without limitation, paying when
due all taxes on or with respect to the Property and doing all things and making
all payments necessary or appropriate to maintain the right, title and interest
of Operator and Franco, respectively, in the Property and under this Agreement.

                                 
9.2.          
Abandonment. In the event Operator intends to abandon any of the lands
comprising a portion or all of the Property (“Abandonment Property”), Operator
shall first give notice of such intention to Franco at least 70 days in advance
of the proposed date of abandonment. If not later than 10 days before the
proposed date of abandonment Operator receives from Franco written notice that
Franco desires Operator to convey the Abandonment Property to Franco, Operator
shall, without additional consideration, convey the Abandonment Property in good
standing by quit claim deed, without warranty, to Franco and shall thereafter
have no further obligation to maintain the title to the Abandonment Property. If
Franco does not timely give such notice to Operator, Operator may abandon the
Abandonment Property and shall thereafter have no further obligation to maintain
the title to the Abandonment Property; provided, however, if Operator
reacquires any of the ground covered by the Abandonment Property at any time
within five (5) years following abandonment, the production of Precious Metals
and Other Minerals from such ground shall be subject to this Agreement. 

B-9 

         
10.        Insurance. Operator shall
purchase or otherwise arrange at its own expense and shall keep in force at all
times, directly or through the services of an independent contractor, insurance,
including but not limited to, the following: 

                       
10.1. Employees Insurance. Such insurance or the like covering all
persons engaged in the performance of activities or operations as is required or
appropriate under law or local governmental bodies or agencies. 

                         10.2.
General Liability. Comprehensive general public liability insurance
against claims for bodily injury or death or property damage arising out of or
resulting from Operator's activities or operations on or with respect to the
Property, in such amounts as will adequately protect Operator, Franco, the
Royalty, and the Property from any and all claims, liabilities and damages which
may arise with respect to this Agreement or the Property. Franco shall be named
as a co-insured. 

                       
10.3. Self Insurance. Franco may self insure the foregoing obligations,
provided such self insurance is sufficient to meet the requirements of Sections
10.1 and 10.2 above and is in compliance with applicable laws, statutes, rules,
and regulations. 

         
11.          Dispute
Resolution. 

                        
11.1. Matters to be Arbitrated 

                        
Any dispute, controversy or claim arising under or in connection with this
Agreement or any document, instrument or agreement delivered pursuant hereto,
the resolution of which is not provided for in this Agreement and which cannot
be resolved or settled by the Parties, shall be settled by arbitration in
accordance with this Article 11 upon written notice by a Party to the other.

                        
11.2. Procedure for Arbitration 

	 	(a) 	
      Arbitration shall be conducted in accordance with the
      Ontario Arbitration Act, 1991, as amended, by three arbitrators.
      Each Party will appoint one arbitrator, and such arbitrators together
      shall appoint the third arbitrator. Each arbitrator shall be an individual
      with not less than 15 years of expertise in the precious metals mining
      industry as a senior executive, accountant or lawyer and no arbitrator
      shall have been a director, officer or employee of, or contractor or
      service provider to, or director, officer, beneficial owner or close
      relative of a beneficial owner of any contractor or service provider to,
      any Party for a period of five years preceding his or her appointment as
      an arbitrator. The place of arbitration will be Toronto, Ontario. The
      language of the arbitration will be English. The
  arbitration shall be the sole and exclusive forum for resolution of
      the dispute, controversy or claim. The award (including any award as to
      the costs of the arbitration) shall be final and binding and not subject
      to review or appeal for any reason whatsoever. Judgment thereon may be
      entered by any court of competent jurisdiction. Any arbitration and
      hearings relating thereto and all decisions, documents and submissions
      prepared or filed in connection therewith shall be in the English
  language.

B-10 

	 	(b) 	
      All matters relating to any dispute, controversy or claim
      which is the subject matter of arbitration hereunder, including all
      submissions made to the arbitrators and the decision of the arbitrators,
      shall be treated as confidential by the Parties and the Parties shall, and
      shall cause any witnesses, counsel or professional advisers retained in
      connection with such an arbitration to, maintain all such matters in
      strict confidence.

	 	 	 
	 	(c) 	
      The Prevailing Party in any arbitration proceedings (or
      litigation) shall, in addition to any other relief awarded by the
      arbitrators (or court) be entitled to a judgment against the
      non-prevailing Party for reasonable attorneys fees and cost incurred in
      such proceedings or litigation.

                        
11.3. Continuing Obligations. Pending settlement of any dispute,
controversy or claim, the Parties shall abide by their obligations under this
Agreement without prejudice to a final adjustment in accordance with an award
rendered in an arbitration settling such dispute, controversy or claim. 

          12..          General Provisions. 

                        
12.1. Additional Documents. The Parties shall from time to time execute
all such further instruments and documents and do all such further actions as
may be necessary to effectuate the purposes of this Agreement. 

                        
12.2. Assignment. Operator shall not sell, assign, lease, license,
transfer, hypothecate, encumber, or otherwise dispose of, or agree to sell,
assign, lease, license, transfer, hypothecate, encumber, or otherwise dispose
of, the Property or portion thereof, without the prior written consent of
Franco, such consent not to be unreasonably withheld; provided that, any
permitted assignee or transferee shall have first entered into an agreement
satisfactory to Franco under which such assignee or transferee shall assume
Operator’s obligations to Franco under this Agreement. Franco may freely assign,
convey or transfer the Royalty and/or all or any part of its rights, liabilities
and obligations under this Agreement to any of its Affiliates and/or any third
party. 

                        
12.3. No Partnership. Nothing in this Agreement shall be construed to
create, expressly or by implication, a joint venture, mining partnership,
commercial partnership, or other partnership relationship between Parties. 

                        
12.4. Governing Law. This Agreement is to be governed by and construed
under the laws of the Province of Ontario, Canada. 

B-11 

                        
12.5. Time of Essence. Time is of essence in this Agreement. 

                        
12.6. Notices. Unless otherwise provided in this Agreement, any notice or
other correspondence required or permitted by this Agreement shall be deemed to
have been properly given or delivered when made in writing and hand-delivered to
the Party to whom directed, or when sent by registered mail, electronic
facsimile transmission, with all necessary postage or charges fully prepaid,
return receipt requested (or in the case of a facsimile or courier, confirmation
of delivery), and addressed to the Party to whom directed at the following
address: 

OPERATOR: 

Dorato Resources Inc. 
Suite 2300 –
1177 West Hastings Street 
Vancouver, British Columbia V6E 2K3 

Attention:          
President and Chief Executive Officer

Telephone:         604-638-5817

Facsimile:           
604-408-7499 

FRANCO: 

Franco-Nevada Corporation 
Exchange
Tower 
130 King Street West 
Suite 740, PO Box 467 
Toronto, Ontario
M5X 1E4 

Attention:          
Chief Legal Officer

Facsimile:           
416-306-6330 

Either Party may change its address for the purpose of notices
or communications by furnishing notice thereof to the other Party in the manner
provided in this Section. 

                        
12.7. Binding Effect. All of the covenants, conditions, and terms of this
Agreement shall (i) be of benefit to the Parties, (ii) to the maximum extent
allowed by law, be an interest in the Property, and (iii) bind and inure to the
benefit of the Parties, their successors and permitted assigns. 

                        
12.8. Entire Agreement; Integration. This Agreement contains the entire
agreement between Parties, and no oral agreement, promise, statement or
representation which is not contained herein shall be binding on the Parties
unless subsequently reduced to writing and signed by the Parties. The provisions
of this Agreement shall supersede all previous oral or written agreements
between the Parties hereto. 

B-12 

IN WITNESS WHEREOF, Operator and Franco have executed this
Agreement effective on the date first set forth above. 

DORATO RESOURCES INC. 

 

	 	by 	     
	 	 	Name: 
	 	 	Title: 

FRANCO-NEVADA CORPORATION 

 

	 	by 	     
	 	 	Name: 
	 	 	Title: 

B-13

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