Document:

Exhibit 10.1

 

SUBSCRIPTION AGREEMENT

FOR

COMMON STOCK

 

This Subscription
Agreement for Common Stock (“Agreement”) is
entered into this 30th day of June 2009 between GOLD
RESOURCE CORPORATION (“Company”), a
corporation incorporated under the laws of the State of Colorado, and HOCHSCHILD MINING HOLDINGS LIMITED (“Hochschild”),
a private limited company organized under the laws of England and Wales.  The Company and Hochschild may hereinafter be
referred to as the “Parties” or individually as a “Party”.

 

RECITALS

 

WHEREAS, on December
5, 2008, the Parties entered into a Strategic Alliance Agreement providing,
among other things, a right of first refusal in favor of Hochschild to provide
additional equity financing to the Company in circumstances described therein;
and

 

WHEREAS, in
accordance with the terms of the Strategic Alliance Agreement, the Company
delivered written notice to Hochschild on June 10, 2009 that it determined to
solicit additional equity financing and Hochschild has elected to provide such
financing to the Company; and

 

WHEREAS, the
Board of Directors of the Company (“Board of Directors”)
has authorized the Company to enter into this Agreement and the parties wish to
memorialize the terms and conditions of their agreement; and

 

WHEREAS, certain
capitalized terms used in this Agreement are defined in Article I hereof.

 

NOW, THEREFORE,
in consideration of the foregoing recitals, which shall be considered an
integral part of this Agreement, the mutual conditions, covenants and
agreements hereinafter set forth, and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by both Parties, the Parties hereby agree as
follows:

 

ARTICLE
1

DEFINITIONS

 

Definitions.  In this Agreement,
unless the context otherwise requires:

 

“Affiliate” shall have the meaning ascribed thereto in the
Securities Act;

 

“Agreement” means this subscription agreement including the
Schedules attached hereto and any instrument amending this Agreement and “hereof”, “hereto”,
“hereunder” and similar
expressions mean and refer to this Agreement and not to a particular Article,
Section, Subsection or Paragraph;

 

1

 

“Audited Financial Statements” means the
comparative audited consolidated financial statements of the Company for the
years ended December 31, 2008 and December 31, 2007;

 

“Authority” and “Authorities”
means any (i) multinational, federal, provincial, state, regional, municipal,
local or other government, governmental or public department, securities
commission (including the Securities Commissions), central bank, court,
tribunal, arbitral body, commission, board, bureau or agency, domestic or
foreign, (ii) any subdivision, agent, commission, board, or authority of any of
the foregoing, or (iii) any quasi-governmental or private body exercising any
regulatory, expropriation or taxing authority under or for the account of any
of the foregoing, and includes a stock exchange  and any other
self-regulatory authority;

 

“Board of
Directors” means the board of directors of the Company;

 

“Business Day” means any day which is not a Saturday, a Sunday
or a day on which banks are generally closed for business in Denver, Colorado
or London, England;

 

“Claims” means
all losses, damages, expenses, Liabilities, claims and demands of whatever
nature or kind, including all reasonable legal fees and disbursements;

 

“Closing” means the completion of the issue and delivery by the
Company and the acquisition by Hochschild of the Purchased Shares pursuant to
this Agreement;

 

“Closing Date” has the meaning given to it in Section 2.5;

 

“Company”
has the meaning given to it in the preamble hereto;

 

“Company
Indemnities” has the meaning given to it in Section 9.2;

 

“Contracts”
means all agreements, arrangements, understandings, commitments and
undertakings (whether written, electronic or oral), to which a Person is a
party or a beneficiary or pursuant to which any of its property or assets are
or may be affected;

 

“Convertible
Securities” with respect to a corporation or other person, means all
Warrants, rights, agreements or options, present or future, contingent or
absolute, or any right or privilege capable of becoming a right, agreement or
option, for the purchase, subscription or issuance of any shares in the capital
of such corporation or other person or any other security convertible or
exchangeable for shares in the capital of such corporation or other person,
including options granted to officers, directors or employees, whether issued
pursuant to an established plan or otherwise;

 

2

 

“Debt Instrument” means any loan, bond,
debenture, promissory note or other instrument evidencing material indebtedness
for borrowed money or other material liability;

 

“Eligible
Expenses” has the meaning given to it in Section 2.6;

 

“Environmental Laws” means federal, state, municipal or local Laws
and Permits relating to environmental, health or safety matters;

 

“Existing Properties” means the properties, including but not
limited to (i) El Aguila (including the La Arista deposit), (ii) Las
Margaritas, (iii) Solaga, and (iv) El Rey, each located in Oaxaca, Mexico, over
which the Company holds interests;

 

“Final
Closing” has the meaning given to it in Section 2.5;

 

“Hochschild
Indemnitees” has the meaning
given to it in Section 9.1;

 

“Laws”  means any and
all applicable (i) laws, constitutions, treaties, statutes, codes, ordinances,
orders, decrees, rules, regulations and municipal by-laws, (ii) judicial,
arbitral, administrative, ministerial, departmental or regulatory judgments or
orders of any Authorities, and (iii) policies, guidelines and protocols;

 

“Liabilities”
means, with respect to any Person, any liability or obligation of such Person
of any kind, character or description, whether known or unknown, absolute or
contingent, accrued or unaccrued, disputed or undisputed, liquidated or
unliquidated, secured or unsecured, joint or several, due or to become due;

 

“Lien”  means any
mortgage, easement, encroachment, adverse claim, and assignment
by way of security, security interest, servitude, pledge, charge, lien,
assignment, hypothecation, conditional sale agreement, title retention,
preferential right, trust arrangement, right of set-off, counterclaim or banker’s
lien, financing statement, privilege or priority, or other encumbrance of any kind having the
effect of security, any designation of loss payees or beneficiaries or any
similar arrangement under or with respect to any insurance policy or any
preference of one creditor over another arising by operation of law;

 

“Material Adverse Effect” means in respect of any Person, individually or
together with other adverse effects, any matter or action that has an effect
that is, or would reasonably be expected to be, material and adverse to (A) the
assets, liabilities, results of operations, capitalization or business
condition (financial or otherwise) or prospects of such Person and its
subsidiaries, taken as a whole, or (B) such Person’s ability to consummate the
transactions contemplated by this Agreement;

 

“Options”
means outstanding options to acquire Shares of the Company under the Stock
Option Plan;

 

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“Parties” means the Company and Hochschild,
collectively, and “Party” means
any one of them;

 

“Permits”  means all permits,
consents, waivers, licenses, certificates, approvals, authorizations,
registrations, franchises, rights, privileges, quotas and exemptions, or any
item with a similar effect, issued or granted by any Authority;

 

“Person” means an individual, partnership, unincorporated
association, organization, syndicate, corporation or trust or a trustee,
executor, administrator or other legal or personal representative;

 

“Purchase Price” means US$4.00 per share or a total of
US$20,000,000.

 

“Purchased Shares” means the number of Shares subscribed for by
Hochschild under Section 2.1 of this Agreement;

 

“Regulatory Approvals” means those
authorizations, sanctions, rulings, consents, orders, waivers, exemptions,
licenses, Permits and other approvals (including a lapse, without objection, of
a prescribed time under a statute or regulation that states that a transaction
may be implemented if a prescribed time lapses following the giving of notice
without an objection being made) of corporate bodies or Authorities or third
parties required in connection with the consummation of the subscription for
and issuance of the Purchased Shares;

 

“Securities Act”
shall have the meaning given to it in Section 2.4;

 

“Securities Commissions” means the securities regulator in each
jurisdiction whose Securities Laws are applicable to the Company;

 

“Securities
Laws” means the Laws relating to securities of the Company and the
regulations and rules made and forms prescribed thereunder together with all
applicable published policy statements, blanket orders, rulings and notices
adopted by the Securities Commissions of each such jurisdiction or applicable
in such jurisdictions;

 

“Shares” means common shares in the capital of the Company;

 

“Strategic
Alliance Agreement” has the meaning assigned to it in the Recitals of this
Agreement;

 

“Tax Returns”
means any return, declaration, report, schedule, information statement or
return with respect to Taxes required to be filed with an Authority;

 

“Taxes” means,
in respect of a Person, any and all taxes and related governmental charges
(including assessments, charges, duties, rates, fees, imposts, levies or other
governmental charges and interest, penalties or additions associated therewith)
including U.S. federal, provincial, municipal and local, foreign or other
income, franchise, capital, real property, personal property, tangible,
withholding, 

 

4

 

payroll, employer health, social security,
transfer, sales, use, consumption, IVA, excise, anti-dumping, stamp,
countervail and value added taxes, all other taxes of any kind for which the
Person may have any liability whether disputed or not and all employment
insurance premiums;

 

“Tranche One Closing Date” has the
meaning given to it in Section 2.5;

 

“Tranche One Closing” has the
meaning given to it in Section 2.5;

 

“Tranche Two Closing Date” has the
meaning given to it in Section 2.5;

 

“Tranche Two Closing” has the
meaning given to it in Section 2.5;

 

“Unaudited Financial Statements” means the
comparative unaudited interim financial statements of the Company for the
periods ended March 31, 2009 and 2008;

 

“Warrants”
means, collectively, (i) outstanding warrants to acquire Shares in the Company,
and “Warrant” means any one of the foregoing;

 

“Withdrawal”
has the meaning given to it in Section 2.6; and

 

“Withdrawal Notice” has the meaning given
to it in Section 2.6.

 

Interpretation.  In this Agreement,
unless the context otherwise requires, the following rules apply:

 

(a)                                  the use of words in the
singular or plural, or with a particular gender, shall not limit the scope or
exclude the application of any provision of this Agreement to such Person or
Persons or circumstances as the context otherwise permits;

 

(b)                                 unless otherwise
specified, time periods within, or following which any payment is to be made or
act is to be done shall be calculated by excluding the day on which the period
commences and including the day on which the period ends and by extending the
period to the next Business Day, if the last day of the period is not a
Business Day;

 

(c)                                  reference to legislation or to a provision of
legislation includes a modification or re-enactment of it, a legislative
provision substituted for it and a regulation or statutory instrument issued
under it;

 

(d)                                 all amounts expressed herein in terms of money refer
to the lawful currency of the United States of America and all payments made
hereunder shall be made in such currency;

 

(e)                                  headings in this Agreement are for convenience only
and shall not affect its interpretation; and

 

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(f)                                    references to “include”,
“includes” or “including” and the like shall be construed, in each case, as if
followed by the words “but without limitation”.

 

ARTICLE 2

SUBSCRIPTION

 

2.1                                                                               Subscription
for Shares

 

Subject to the terms and
conditions of this Agreement, Hochschild hereby subscribes
for and agrees to purchase a total of five million (5,000,000) Shares (the “Purchased
Shares”) at the Purchase Price.

 

2.2                                                                               Acceptance

 

By its execution of this
Agreement, the Company hereby accepts the subscription by Hochschild for the
Purchased Shares and subject to the terms and conditions of this Agreement,
agrees to issue and sell the Purchased Shares to Hochschild on the respective
Closing Dates.

 

2.3                                                                               Payment of Purchase
Price

 

As described further in Section 2.5 below, and
subject to the conditions set forth in Sections 2.5 and 3.2 below, Hochschild
shall pay to the Company the Purchase Price by wire transfer in immediately available
funds as the Company shall direct in writing.

 

2.4                                                                               Restricted Securities

 

Hochschild hereby acknowledges and agrees
that the Purchased Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), but will be issued pursuant to an
exemption from the registration requirements of the Securities Act.  As a result, the certificate representing the
Purchased Shares shall bear a restrictive legend and transfer of the Purchased
Shares shall be restricted as hereinafter set forth.

 

2.5                                                                               Closings

 

(a)           Contemporaneously
with execution of this Agreement (the “Tranche One Closing”),
a closing for 1,250,000 Shares of the total Purchased Shares and payment of
$5,000,000 of the total Purchase Price shall be completed at the offices of the
Company in Denver, Colorado or such other place, date or time as the Company
and Hochschild may agree (the “Tranche One Closing Date”).  At that place and time, and subject to the
conditions set forth in Section 3.1 below, the Company shall deliver or cause
to be delivered to Hochschild, one or more certificates representing 1,250,000
of the Purchased Shares against payment of the corresponding portion of the
Purchase Price.

 

(b)           By July 20, 2009,
a closing for 3,750,000 Shares of the total Purchased Shares and payment of
$15,000,000 of the total Purchase Price shall be completed at the offices 

 

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of the Company in Denver,
Colorado (the “Tranche Two Closing”; hereinafter
referred to with the Tranche One Closing as the “Final
Closing” where no distinction is required by the context in
which the term is used) or such other place, date
or time as the Company and Hochschild may agree (the “Tranche Two
Closing Date”; hereinafter referred to
with Tranche One Closing Date as “Closing Date” where no distinction is
required by the context in which the term is used).  At that place and time, and subject to the
conditions set forth in Section 3.1 below, the Company shall deliver or cause
to be delivered to Hochschild, one or more certificates representing 3,750,000
of the Purchased Shares.  At the Tranche
Two Closing, Hochschild shall pay to the
Company $11,000,000 of the Purchase Price by wire transfer in immediately
available funds as the Company shall direct in writing.

 

2.6                                                                               Reserved Proceeds for
Exploration Expenses

 

(a)           At the Tranche
Two Closing, the remaining $4,000,000 of the
Purchase Price (the “Exploration Amount”) shall be paid by wire transfer by
Hochschild into a bank account maintained in the Company’s name in the United
States in a federally chartered bank mutually agreeable to the Company and
Hochschild.  The account shall be the
sole and exclusive property of the Company, but shall require a signature from
a Company representative and a Hochschild representative for any withdrawals as
more fully described below.

 

(b)           The
Exploration Amount shall be used exclusively for exploration expenditures at
the El Aguila property or any of the other Existing Properties (“Eligible Expenses”). 
For further clarification, Eligible Expenses shall include, but are not
limited to, exploratory drilling, assays and geological studies, fees and costs
related to geologists (including the time spent by David Reid on exploration)
and sample preparation helpers, construction of drill pad sites and associated
roads, drilling, assays, construction of a decline ramp until the point of
interception with ore, drifts and crosscuts, and associated surface facilities
to support underground development and mining, and any and all activities
associated with exploration through resource estimation.

 

(c)           At any time
beginning with the Tranche Two Closing Date and until such time as the
Exploration Amount has been completely expended, the Company may request a
withdrawal of such portion thereof as may be necessary in its discretion for
payment or reimbursement of Eligible Expenses (a “Withdrawal”)
by delivering written notice to Hochschild (“Withdrawal
Notice”).  Such Withdrawal
Notice shall be signed by an Officer of the Company and accompanied by, or
supplemented with, such additional documentation as may be reasonably requested
by Hochschild and shall be deemed delivered to Hochschild on the day it is sent
by facsimile as described in Section 10.1 hereof or sent by electronic delivery
to Raymond Jannas, Vice President Exploration, Hochschild Mining plc.   Upon delivery of the Withdrawal Notice,
Hochschild shall have three  business  days to authorize and instruct its representative to
provide its signature for the Withdrawal. 
Hochschild may not withhold its approval of any Withdrawal so long as
the request relates to any Eligible Expenses.

 

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ARTICLE 3

CONDITIONS TO CLOSING DATE

 

3.1                                                                              Conditions to the
Company’s Obligations to Close

 

The obligation of the Company to complete the
issuance and sale of the Purchased Shares and tender a certificate for the
Purchased Shares shall be subject to satisfaction on or before each Closing
Date of the following conditions precedent (each
of which is acknowledged to be for the exclusive benefit of the Company and may
be waived in whole or in part by the Company in its complete discretion):

 

(a)                                  All of the representations and warranties
made by Hochschild in this Agreement are true and accurate as of each Closing
Date;

 

(b)                                 All covenants to be performed by
Hochschild prior to each Closing Date pursuant to this Agreement have been
performed;

 

(c)                                  Hochschild
has tendered the requisite portion of the total Purchase Price to the Company;

 

(d)                                 There shall be no Laws,
injunction, order or decree which restrains or enjoins or otherwise prohibits
the issuance and purchase of the Purchased Shares, or any action or proceeding
pending or threatened against the Company or against Hochschild by any
government authority or any other Person (including a Party hereto) to restrain
or prohibit the completion of the transactions contemplated by this Agreement;
and

 

(e)                                  All necessary approvals will have been
obtained to permit the Purchased Shares to be duly issued to, and registered in
the name of, Hochschild in compliance with all applicable Laws, including
regulatory approvals.

 

3.2                                                                              Conditions to the
Obligations of Hochschild to Close

 

The obligation of Hochschild to complete the purchase
of the Purchased Shares pursuant to this Agreement shall be subject to the
fulfillment of, on or before each Closing Date, each of the following
conditions precedent (each of which is acknowledged to be for the exclusive
benefit of Hochschild and may be waived in whole or in part by the Hochschild
in its complete discretion):

 

(a)           All of the representations and warranties of the Company made in or
pursuant to this Agreement shall be true and correct as of each Closing Date
and with the same effect as if made at and as of each Closing Date;

 

(b)           The Company shall have performed or complied with, in all respects, all of
its obligations, covenants and agreements under this Agreement to be performed
or complied with at or prior to each Closing Date;

 

(c)           There shall be no Laws, injunction, order or decree which restrains or
enjoins or otherwise prohibits the issuance and purchase of the Purchased
Shares, or any action or proceeding pending or threatened against Hochschild or
against the Company by any governmental authority or any other Person
(including a Party hereto) to restrain or prohibit the completion of the
transactions contemplated by this Agreement;

 

8

 

(d)           Nothing shall have occurred which, in Hochschild’s reasonable opinion, has
or could reasonably be expected to have a Material Adverse Effect on the
Company;

 

(e)           Hochschild shall have
received such written opinions from counsel to the Company (who shall not be an
employee of the Company or any of its Affiliates) dated as of each Closing
Date, addressed to Hochschild and in the form acceptable to Hochschild
and its counsel, each acting reasonably, and which shall, among other things, include opinions as to the Company’s compliance with
applicable requirements under the Securities Act and other United States
securities laws and title to the Existing Properties;

 

(f)            Hochschild will be furnished with such
certificates or other instruments of the Company or of officers of the Company
as Hochschild or Hochschild’s counsel may reasonably believe necessary in order to
establish that the obligations and covenants contained in this Agreement have
been performed or complied with in accordance with Section 3.2 and that the
representations and warranties of the Company herein given are true and correct
at each Closing Date in accordance with Section 3.2(a); and

 

(g)           All necessary steps and proceedings will have been
taken to permit the Purchased Shares to be duly issued to, and registered in
the name of, Hochschild in compliance with all applicable Laws, including
the Company having obtained all necessary regulatory approvals.

 

3.3                                                                               Waiver of Condition

 

Hochschild,
in the case of a condition set out in Section 3.2, and the Company, in the case
of a condition set out in Section 3.1, will have the exclusive right to waive
before each Closing Date the performance or compliance of such condition in
whole or in part and on such terms as may be agreed upon without prejudice to
any of its rights in the event of non-performance of or non-compliance with any
other condition in whole or in part. Any such waiver will not constitute a
waiver of any other conditions in favor of the waiving party. Such waiving
party will retain the right to complete the sale and purchase of the Purchased
Shares herein contemplated and sue the other party in respect of any breach of
the other party’s covenants or obligations or any inaccuracy or
misrepresentation in a representation or warranty of the other party which gave
rise to the non-performance of or non-compliance with the condition so waived.

 

3.4                                                                               Actions to Satisfy Closing Date
Conditions.

 

(a)                                  The Company shall take all such actions
as are within its power to control and shall use commercially reasonable
efforts to cause other actions to be taken which are not within its power to
control, so as to ensure compliance with all of the conditions set forth in Section
3.2 (except to the extent any such condition is waived by Hochschild pursuant
to Section 3.3), including ensuring that during the period from the date hereof
to 

 

9

 

each Closing Date, there is no breach of any of
its representations and warranties.

 

(b)                                 Hochschild shall take all such actions as
are within its power to control and shall use commercially reasonable efforts
to cause other actions to be taken which are not within its power to control,
so as to ensure compliance with all of the conditions set forth in Section 3.1
(except to the extent any such condition is waived by the Company pursuant to Section
3.3), including ensuring that during the period from the date hereof to each
Closing Date, there is no breach of any of its representations and warranties.

 

ARTICLE 4

COVENANTS

 

4.1                                                                               Post-Closing
Date Covenants of the Company

 

The Company shall comply with all securities regulatory filing
requirements on a timely basis in connection with the distribution of the
Purchased Shares to Hochschild, including filing within the periods stipulated
under Securities Laws, at the Company’s expense, all private placement forms
required to be filed by the Company and paying all filing fees required to be
paid in connection therewith so that the distribution of the Purchased Shares
may lawfully occur without the necessity of filing a prospectus, registration
statement or any similar document under the Securities Laws.

 

4.2                                                                               Press Releases

 

(a)                                  During the period from the date hereof to
each Closing Date, no press release or other public announcement with respect
to this Agreement or the transactions contemplated herein will be made by a
Party until the text of the announcement and the time and manner of its release
have been approved by the other Party in writing, acting reasonably.

 

(b)                                 Notwithstanding Section 4.2(a), if at any
time up to each Closing Date, a Party is bound by Law to make a press release
or other public announcement, such Party may do so, notwithstanding the failure
of the other Parties to approve same, provided:

 

(i)                                   the
other Party is given at least one (1) Business Day prior written notice of the
intention to make such announcement and has a reasonable opportunity to comment
on the announcement; and

 

(ii)                                the
announcement contains no more information than is necessary to satisfy the
specific legal requirement.

 

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4.3                                                                               Commencement of Production

 

The Company  shall use commercially reasonable efforts to apply
for and secure all necessary permits, authorization, agreements and
surface rights required to (i) commence mining operations (exploitation) at the
El Aguila project, including but not
limited to, those permits, authorizations and agreements specified in Schedule 5.1(a) and (ii) conduct exploration and mining
development activities at the Existing Properties.

 

4.4                                                                               Documentation
of Inter-Company Transactions

 

Not later than
the filing of its annual report on Form 10-K for the year ended December 31,
2009 with the United States Securities and Exchange Commission, the Company
shall execute appropriate documentation to evidence the inter-company
transactions with its Mexican subsidiaries, and shall provide copies of such
documentation to Hochschild.

 

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF

THE COMPANY

 

5.1                                                                               Representations,
Warranties and Covenants of the Company

 

The Company hereby
represents and warrants to, and covenants with, Hochschild as follows and
acknowledges that Hochschild is relying on such representations and warranties
in connection with the transaction contemplated hereby:

 

(a)           the Company and its subsidiaries have been duly
incorporated and are in good standing under the laws of their respective
jurisdictions, and are current and up-to-date with all filings required to be
made by them in such jurisdiction, have all requisite corporate power and
authority and are duly qualified and except as disclosed in Schedule 5.1(a), possess all certificates, authorizations,
permits and licences issued by the appropriate state, municipal, or federal
regulatory agencies or bodies necessary (and has not received or is aware of
any modification or revocation to such licences, authorizations, certificates
or permits) to carry on their business as now conducted and to own the Existing
Properties and their other assets and the Company and its subsidiaries have all
requisite corporate power and authority to execute, deliver, perform and carry
out their obligations under this Agreement.

 

(b)           except
as disclosed in Schedule 5.1(b), since March 31,
2009, there has been no change to the Company (actual, or to the knowledge of
the Company, proposed or prospective, whether financial or otherwise) that
would cause a Material Adverse Effect to the Company, which has not been
disclosed to the public and, in all material respects, the business of the
Company has been carried on in the usual and ordinary course consistent with
past practice, to the extent that such past practice is consistent with the
current business direction of the Company.

 

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(c)           this Agreement
constitutes a legal, valid and binding obligation of the Company, enforceable
in accordance with its terms;

 

(d)           the
execution, delivery and performance by the Company of its obligations under
this Agreement and the issuance, sale and delivery of the Purchased Shares by
the Company:

 

(i)                                 has
been duly authorized by all necessary action on the part of the Company;

 

(ii)                             does
not require the approval, authorization, consent or order of, and no filing,
registration or recording with, any governmental authority having jurisdiction
over the Company in connection with the execution and delivery or with the
performance by the Company of this Agreement;

 

(iii)                          does
not require the consent, approval, authorization, registration or qualification
of or with any governmental authority, stock exchange, securities commission or
other regulatory authority or other third party; and

 

(iv)                         does
not and will not (or will not with the giving of notice, the lapse of time or
the happening of any other event or condition) result in a violation of any of
the terms or provisions of any law applicable to the Company, a breach or a
violation of, or conflict with or result in a default under, or allow any other
person to exercise any rights under, any of the terms or provisions of the
articles, by-laws or resolutions of the Board of Directors (or any committee
thereof) or security holders of the Company, or any judgment, decree, order or
award of any court, governmental body or arbitrator having jurisdiction over
any of them, or any agreement, license or permit to which any of them is a
party;

 

(e)           as of the close
of business on June 29, 2009, the
authorized capital of the Company consists of 60,000,000 shares of common stock
and 5,000,000 shares of preferred stock, of which 41,095,489  shares of common stock are issued and outstanding as
fully paid and non-assessable, and the Company has no other shares of any kind
issued and outstanding;

 

(f)            as
at the date of this Agreement there are outstanding Options to acquire an
aggregate of up to 3,770,000 shares of Company common stock, of which 1,000,000
were issued subsequent to the execution of the Strategic Alliance Agreement and
are described in more detail on Schedule 5.1(f) hereto.  Except for the Options, no person, except
Hochschild, holds any Convertible Securities of the Company or any of its
Subsidiaries or is entitled to any pre-emptive or any similar rights to
subscribe for any Shares or other securities of the Company or any of its
Subsidiaries;

 

12

 

(g)           as
at the date of this Agreement, Hochschild owns 6,000,000 Shares of common stock
(“Hochschild Shares”) representing 14.60% of the issued and outstanding Shares
on a non-diluted basis and immediately following the Tranche One Closing,
Hochschild will own the Purchased Shares and the Purchased Shares and Hochschild
Shares will collectively represent 17.12% of the then-issued and outstanding
Shares on a non-diluted basis, assuming no other issuance of shares between the
date of this Agreement and the Tranche One Closing Date;

 

(h)           as
at the date of this Agreement, there is no Contract or any other right of
another Person binding upon or which at any time in the future may become
binding upon the Company or any of its Subsidiaries: (i) to allot or issue any
unissued shares thereof to any Person; (ii) to create any additional class of
shares of the Company or any of its Subsidiaries; (iii) to sell, transfer,
assign, pledge, mortgage or in any way dispose of or encumber any securities of
the Company or any of its Subsidiaries to or in favour of any Person; or (iv) to
sell, transfer, assign, pledge, mortgage or in any other way dispose of or
encumber any of the assets of the Company or any of its Subsidiaries other than
in the ordinary course of business;

 

(i)            to
the knowledge of the Company, no agreement is in force or effect which in any
manner affects the voting or control of any of the securities of the Company or
any of its Subsidiaries and, to the knowledge of the Company, following each
Closing Date and except for the Strategic Alliance Agreement, there will be no
shareholders’ agreement, voting trust agreement or other agreement (i) governing
or otherwise affecting the voting rights associated with any securities of the
Company; or (ii) restricting or otherwise affecting the power and authority of
the directors of the Company;

 

(j)            the
Company is in compliance with its obligations under all applicable securities
laws and has filed and made timely and accurate disclosure in reports and all
other documents required to be filed under securities laws applicable thereto;

 

(k)           neither
the Company, nor any person acting on its behalf has, directly or indirectly, (i)
made offers or sales of any security, or solicited offers to buy any security,
under circumstances that would require the distribution of the Purchased Shares
to be qualified by a prospectus filed in accordance with the Securities Laws or
(ii) has engaged in any advertisement of Company shares in any printed media of
general and regular paid circulation, radio or television or any other form of
advertising in connection with the offer and sale of Company shares that would
require filing of a prospectus;

 

(l)            the
Purchased Shares to be issued have been, or prior to each Closing Date (as
defined in Section 2.5) will have been, duly created and, when issued and delivered
to Hochschild, the Purchased Shares will be validly issued as fully paid Shares
and will not have been issued in violation of or subject to any pre-emptive
rights or contractual rights to purchase securities issued by the Company;

 

(m)          no
securities commission, stock exchange or comparable authority has issued any
order preventing or suspending the distribution of the Purchased Shares or the
trading of securities of the Company generally and the Company is not aware of
any 

 

13

 

investigation,
order, inquiry or proceeding which has been commenced or which is pending,
contemplated or threatened by any such authority;

 

(n)           the
common stock currently trades in the Over-the-Counter market and is quoted on the
Bulletin Board system maintained by FINRA and no order ceasing or suspending
trading in any securities of the Company or the trading of any of the Company’s
issued securities is currently outstanding and no proceedings for such purpose
are, to the knowledge of the Company, pending or threatened;

 

(o)           except as
otherwise publicly disclosed by the Company, the Company has carried out its
affairs in compliance in all material respects with the terms and provisions of
applicable Laws and is not in material violation of or in material default in
the performance of any mortgage, note, indenture, deed of trust, contract,
agreement (written or oral), instrument, lease, licence or other document to
which it is a party or by which it is bound or to which its property or assets
or any of them is subject, and no event has occurred which with notice or lapse
of time or both would constitute such a default and all such contracts,
agreements and arrangements are in good standing;

 

(p)           the Company and
each of its subsidiaries has duly and in a timely manner filed all Tax Returns
that are required to be filed by them and all such Tax Returns are correct or
complete in all respects; and, to the knowledge of the Company and except as
disclosed in Schedule 5.1(p), there are no
audits of the Tax Returns of the Company or any of its Subsidiaries by any
Authority pending and there are no outstanding claims or Liens for Taxes on the
assets of the Company or any of its Subsidiaries;

 

(q)           except as
disclosed in Schedule 5.1(q), there is no
Contract to which the Company or its subsidiaries is a party or by which any of
them or their respective properties or assets are bound that (a) if terminated,
would reasonably be expected to have a material adverse effect on the Company;
or (b) is a contract that contains any non-competition obligations or otherwise
restricts in any material way the business of the Company or its subsidiaries;

 

(r)            the Company and
each of its subsidiaries has performed in all material respects all respective
obligations required to be performed by them to date under any material
contracts and are not, and are not to the knowledge of the Company, alleged to
be in breach or default in any material respect thereunder;

 

(s)           except as
disclosed in Schedule 5.1(s), neither the
Company nor its Subsidiaries are parties to, bound by or subject to any debt
instrument, or any agreement, contract or commitment to create, assume or issue
any debt instrument;

 

(t)            the Audited
Financial Statements and the Unaudited Financial Statements have been prepared
in accordance with generally accepted accounting principles (“GAAP”) applied on
a basis consistent with those of preceding fiscal periods (except that the
Unaudited Financial Statements do not contain all of the footnotes that would be
required by GAAP and have been prepared in accordance with the rules of the
United States Securities and Exchange Commission pertaining to condensed
interim statements) and the 

 

14

 

statements present fairly
the assets, liabilities and financial condition of the Company as at the dates
and for the periods indicated in such financial statements;

 

(u)           neither the
Company nor any of its subsidiaries has been in material violation of any
Environmental Laws or Permits and there are no orders, rulings or directives
issued, pending or, to the knowledge of the Company, threatened against the
Company or any of its Subsidiaries under or pursuant to any Environmental Laws;

 

(v)           the
Company and its subsidiaries hold either freehold title, mining leases, mining
claims or other conventional property, proprietary or contractual interests or
rights, recognized in the jurisdiction in which a particular property is
located in respect of the ore bodies and minerals located in its Existing
Properties under valid, subsisting and enforceable title documents or other
recognized and enforceable agreements or instruments, which are currently
sufficient to permit the Company through its subsidiaries to explore the
minerals relating thereto, and all such property, leases or claims and all
property, leases or claims in which the Company or the subsidiaries have any
interest or right have been validly located and recorded in accordance with all
applicable laws and are valid and subsisting;

 

(w)          the Company’s
Subsidiaries have obtained surface rights, access rights and other rights to
only portions of its holdings as follows: the El Aguila Project has been
granted surface rights for exploration (including the La Arista underground
vein deposit)  and surface rights for
exploitation (the El Aguila open pit) in the area of its mining sites and mill
site (and have applied for surface disturbance at portal of underground mine
for La Arista deposit); Las Margaritas has been granted surface rights for
exploration on a portion of its claims; El Rey has been granted surface rights
for exploration on a portion of its claims; and no surface rights have been
obtained for exploration at the Solaga property;

 

(x)           the
Company has not declared or paid, or committed to declare or pay, any amount to
any person in respect of a performance or incentive or other bonus in
connection with the completion of the transaction contemplated by this
Agreement;

 

(y)           the
Company’s Subsidiaries have timely filed applications with the relevant  authorities to obtain all necessary permits
required to commence mining operations (exploitation) at the  El Aguila
project, including but not limited to: (i) the rights to use groundwater; and (ii)
authorization for the purchase, storage and use of explosives;

 

(z)           neither
the Company nor any of its subsidiaries is subject to any claim for wrongful
dismissal, constructive dismissal or any other claim or any litigation relating
to its employees or independent contractors (including any termination of such
persons) nor to the Company’s knowledge are any such claims or litigation
threatened, other than those claims or such litigation as would individually or
in the aggregate not have a material adverse effect on the Company;

 

(aa)         the
Company and each Subsidiary has timely filed with all applicable securities
regulatory authorities, and all applicable self-regulatory organizations true
and complete copies of all forms, reports, schedules, statements and other
document required to 

 

15

 

be
filed by it, and all such documents complied in all material respects with the
requirements of applicable securities laws;

 

(bb)        there are no actions,
suits, proceedings or inquiries pending or, to the knowledge
of the Company, threatened against or affecting the Company or its subsidiaries
or their property or assets at law or in equity or before or by any federal,
municipal or other governmental department, court, commission, board, bureau,
agency or instrumentality;

 

(cc)         there
is and has been no failure on the part of the Company or any
of the Company’s directors or officers, in their capacities as such, to comply
in all material respects with any applicable provision of the Sarbanes-Oxley
Act of 2002 and the rules and regulations promulgated in connection therewith,
including Section 402 related to loans and Sections 302 and 906 related to
certifications.

 

(dd)        the Company
acknowledges that the representations, warranties, acknowledgements and
agreements contained herein are made by the Company with the intent that they
may be relied upon by Hochschild in deciding to subscribe for the Purchased Shares.  The Company further agrees that it shall
represent and warrant that except as set forth in such representation or
warranty, the foregoing representations and warranties will be true and correct
as at each Closing Date with the same force and effect as if they had been made
by the Company at the Closing Date and that they shall survive the purchase by
Hochschild of the Purchased
Shares. The Company undertakes to notify Hochschild immediately of any change
in any representation, warranty or other information relating to the Company
set forth herein which takes place prior to each Closing Date. For greater
certainty, the Company acknowledges that Hochschild is relying upon the
representations and warranties of the Company in entering into this Agreement
and confirms that no investigation made by Hochschild or its representatives
will affect Hochschild’s right to rely on any such representation and warranty
made by the Company in this Agreement.

 

ARTICLE 6

ACKNOWLEDGEMENTS, COVENANTS, REPRESENTATIONS

AND WARRANTIES OF HOCHSCHILD

 

6.1                                                                               Acknowledgements,
Representations, Warranties and Covenants of Hochschild

 

Hochschild hereby represents
and warrants to, and covenants with, the Company as follows and acknowledges
that the Company is relying on such representations and warranties in
connection with the transactions contemplated herein:

 

(a)           Hochschild
certifies that it is resident in the jurisdiction set out on the signature page
of this Agreement.  Such address was not
created and is not used solely for the purpose of acquiring the Shares and Hochschild was solicited to
purchase in such jurisdiction;

 

(b)          Hochschild is not
a U.S. Person (as defined in Rule 902(k) of Regulation S under the Securities
Act);

 

16

 

(c)           Hochschild is
subscribing for the Purchased Shares for its own account and not
for the account of a U.S. Person or for resale in the United States and
Hochschild confirms that the Purchased
Shares have not been offered to Hochschild in the United States and that this
Agreement has not been signed in the United States;

 

(d)          Hochschild
acknowledges that the Purchased Shares
have not been registered under the Securities Act and may not be offered or
sold in the United States or to a U.S. Person unless the securities are
registered under the Securities Act and all applicable state securities laws or
an exemption from such registration requirements is available, and further
agrees that hedging transactions involving such securities may not be conducted
unless in compliance with the Securities Act;

 

(e)           Hochschild understands that the Company
is the seller of the Purchased Shares and that, for
purposes of Regulation S, a “distributor” is any underwriter, dealer or other
person who participates, pursuant to a contractual arrangement, in the
distribution of securities sold in reliance on Regulation S and that an “affiliate”
is any partner, officer, director or any person directly or indirectly
controlling, controlled by or under common control with any person in question.
Except as otherwise permitted by Regulation S, Hochschild agrees that it will
not, during a one year distribution compliance period, act as a distributor,
either directly or through any affiliate, or sell, transfer, hypothecate or
otherwise convey the Purchased Shares or underlying
securities other than to a non-U.S. Person;

 

(f)           Hochschild acknowledges and understands
that in the event the Purchased Shares are offered,
sold or otherwise transferred by Hochschild to a non-U.S Person prior to the
expiration of a one year distribution compliance period, the purchaser or
transferee must agree not to resell such securities except in accordance with
the provisions of Regulation S, pursuant to registration under the Securities
Act, or pursuant to an available exemption from registration; and must further
agree not to engage in hedging transactions with regard to such securities
unless in compliance with the Securities Act;

 

(g)          Hochschild will
not offer, sell or otherwise dispose of the Purchased Shares in the United States or to a U.S.
Person unless (A) the Company has consented to such offer, sale or disposition
and such offer, sale or disposition is made in accordance with an exemption
from the registration requirements under the Securities Act and the securities
laws of all applicable states of the United States or (B) the SEC has declared
effective a Registration Statement in respect of such securities;

 

(h)          The execution and
delivery of this Agreement, the performance and compliance with the terms
hereof, the subscription for the Purchased
Shares and the completion of the transactions described herein by Hochschild
will not result in any material breach of, or be in conflict with, or
constitute a material default under, or create a state of facts that, after
notice or lapse of time, or both, would constitute a material default under any
term or provision of the constating documents, by-laws or resolutions of
Hochschild, the securities laws or any other Laws applicable to Hochschild, any
agreement to which Hochschild is a party, or any judgment, decree, order,
statute, rule or regulation applicable to Hochschild;

 

17

 

(i)            Hochschild is
subscribing for the
Purchased Shares as principal for its own account and not for
the benefit of any other person (within the meaning of applicable securities
laws);

 

(j)            This Agreement
has been duly authorized, executed and delivered by, and constitutes a legal,
valid and binding agreement of, Hochschild. 
This Agreement is enforceable in accordance with its terms against
Hochschild;

 

(k)           Hochschild is
duly incorporated and is validly subsisting under the laws of its jurisdiction
and has all requisite legal and corporate power and authority to execute and
deliver this Agreement, to subscribe for the Purchased Shares as contemplated herein and to carry
out and perform its obligations under the terms of this Agreement;

 

(l)            Hochschild has
been advised to consult its own legal advisors with respect to trading in the Purchased Shares, and with respect to
the resale restrictions imposed by the securities laws of the jurisdiction in
which Hochschild resides and other applicable securities laws, and acknowledges
that no representation has been made respecting the applicable hold periods
imposed by the securities laws or other resale restrictions applicable to such
securities that restrict the ability of Hochschild to resell such securities,
that Hochschild is solely responsible to find out what these restrictions are
and Hochschild is solely responsible (and the Company is not in any way
responsible) for compliance with applicable resale restrictions and Hochschild
is aware that it may not be able to resell such securities except in accordance
with limited exemptions under the securities laws and other applicable
securities laws;

 

(m)          No person has
made any written or oral representations:

 

(i)            that any person
will resell or repurchase the Purchased
Shares;

 

(ii)           that any person
will refund the Purchase Price; or

 

(iii)          as to the future
price or value of the Purchased
Shares;

 

(n)           There are risks
associated with the purchase of and investment in the Purchased Shares and Hochschild has
such knowledge and experience that it is capable of evaluating the merits and
risks of an investment in the Purchased
Shares and fully understands the restrictions on resale of the Purchased Shares and is capable of
bearing the economic risk of the investment;

 

(o)           The funds
representing the Purchase Price that will be paid by Hochschild to the Company
hereunder, will not represent proceeds of crime for the purposes of United
States anti-terrorist legislation and Hochschild acknowledges that the Company
may in the future be required by law to disclose Hochschild’s name and other
information relating to this Agreement and Hochschild’s subscription hereunder
pursuant to such legislation.  To the
best of its knowledge (a) none of the Purchase Price to be provided by
Hochschild (i) has been or will be derived from or related to any activity that
is deemed criminal under the laws of the United States of America, or any other
jurisdiction, or (ii) is being tendered on behalf of a person or entity who has
not been identified to Hochschild, and (b) it shall 

 

18

 

promptly notify the Company
if Hochschild discovers that any of such representations ceases to be true, and
to provide the Company with appropriate information in connection therewith;

 

(p)          Hochschild
acknowledges that no securities commission, agency, governmental authority,
regulatory body, stock exchange or other regulatory body or similar regulatory
authority has reviewed or passed on the merits of the Purchased Shares;

 

(q)          Hochschild
acknowledges that the Purchased Shares may be subject to statutory resale
restrictions under the securities laws of the jurisdiction in which Hochschild
resides and under other applicable securities laws, and Hochschild covenants
that it will not resell the Shares except in compliance with such laws and
Hochschild acknowledges that it is solely responsible (and in no way is the
Company responsible) for such compliance;

 

(r)           Hochschild
acknowledges that the certificates representing the Purchased Shares, and all
certificates issued in substitution or exchange thereof, will bear a legend
substantially in the following form:

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SECURITIES MAY
BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO GOLD RESOURCE
CORPORATION (“GRC”), (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904
OF REGULATION S UNDER THE SECURITIES ACT, (C) IN COMPLIANCE WITH RULE 144 OR
144A THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS, (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, OR (E) IN
A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR
ANY APPLICABLE STATE SECURITIES LAWS, AND THE HOLDER HAS, PRIOR TO SUCH SALE,
FURNISHED TO GRC AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN
EITHER CASE REASONABLY SATISFACTORY TO GRC. 
HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED
UNLESS IN COMPLIANCE WITH THE U.S. SECURITIES ACT.

 

(s)           Hochschild
acknowledges that the Company is relying on the representations, warranties and
covenants contained herein to determine Hochschild’s eligibility to subscribe
for the Purchased Shares under applicable securities laws.  Hochschild undertakes to immediately notify
the Company of any change in any statement or other information relating to
Hochschild set forth in this Agreement which takes place prior to each Closing
Date;

 

19

 

(t)           Hochschild
acknowledges that it is responsible for obtaining such legal and tax advice as
it considers appropriate in connection with the execution, delivery and
performance of this Agreement and the transactions contemplated under this
Agreement;

 

(u)          Hochschild has
reviewed (i) the annual report on Form 10-K for the fiscal year ended December 31,
2008; (ii) the quarterly report on Form 10-Q for the quarter ended March 31,
2009; and (iii) all other reports filed with the United States Securities and
Exchange Commission by the Company since March 31, 2009, each of which is
available from the Public Reference Room of the SEC or on its web site at http://www.sec.gov. 
Hochschild’s decision to purchase the Purchased Shares was based solely
on the representations in this Agreement and the filings of the Company with
the SEC itemized immediately above, and no person or entity has made any
representations or warranties excepts as set forth herein;

 

(v)          There are risks
associated with the purchase of the Shares and Hochschild may lose its entire
investment.  These risks include those
itemized in the Company’s filings with the SEC itemized above.  Hochschild acknowledges having read these risks
and understands them.

 

(w)          Hochschild has
had the opportunity to ask questions of, and receive answers from, the officers
and directors of the Company regarding the offering, the Company or any other
information relevant to Hochschild’s investment;

 

(x)           Hochschild
acknowledges the following: (i) this Agreement requires Hochschild to provide
certain information to the Company; (ii) such information is being collected by
the Company for the purposes of completing the offering, which includes,
without limitation, determining Hochschild’s eligibility to purchase the
Purchased Shares under the applicable securities laws, preparing and
registering certificates representing Purchased Shares to be issued to
Hochschild and completing filings required by any stock exchange or securities
regulatory authority; (iii) Hochschild’s information may be disclosed by the
Company to: (A) stock exchanges or securities regulatory authorities; and (B) the
Company’s advisors, including legal counsel and may be included in record books
in connection with the offering. By executing this Agreement, Hochschild is
deemed to be consenting to the foregoing collection, use and disclosure of
Hochschild’s information.  Hochschild
also consents to the filing of copies or originals of this Agreement as may be
required to be filed with any stock exchange or securities regulatory authority
in connection with the transactions contemplated hereby;

 

(y)          Hochschild
consents to the Company making a notation on its records and giving
instructions to any transfer agent of the Company in order to implement the
restrictions on transfers set forth and described herein, and Hochschild
understands and acknowledges that the Company may instruct the registrar and
transfer agent of the Company not to record a transfer without first being
notified by the Company that it is satisfied that such transfer is exempt from
or not subject to registration under the Securities Act.

 

20

 

ARTICLE
7

SURVIVAL OF REPRESENTATIONS,

WARRANTIES AND COVENANTS

 

7.1                                                                               Survival of
Representations, Warranties and Covenants of the Company

 

Unless otherwise stated herein, the
representations, warranties and covenants of the Company contained in this
Agreement shall survive each Closing Date for a period of two years and,
notwithstanding such Closing Date or any investigation made by or on behalf of
Hochschild with respect thereto, shall continue in full force and effect for
the benefit of Hochschild.

 

7.2                                                                               Survival of
Representations, Warranties and Covenants of Hochschild

 

The representations, warranties and covenants
of Hochschild contained in this Agreement shall survive each Closing Date for a
period of two years and, notwithstanding such Closing Date or any investigation
made by or on behalf of the Company with respect thereto and notwithstanding
any subsequent disposition by Hochschild of any of the Purchased Shares, shall
continue in full force and effect.

 

ARTICLE 8

TERMINATION

 

8.1                                                                               Termination.

 

This Agreement
may be terminated at any time prior to any Closing Date by:

 

(a)           Hochschild if (i) at any Closing
Date, any of the conditions specified in Section 3.2 has not been
satisfied in full; (ii) there has been a material violation or material
breach by the Company of any covenant, representation or warranty or other
agreement contained in this Agreement such that any condition specified in Section 3.2
would be incapable of being satisfied at the Closing Date, and such violation
or breach is not waived by Hochschild or, in the case of a covenant breach,
cured by the Company by the earlier of ten days (or such longer period of time
as may be required provided the Company is diligently pursuing such cure) after
written notice thereof by Hochschild, or the Closing; and

 

(b)           the Company if (i) at any Closing
Date, any of the conditions specified in Section 3.1 has not been
satisfied in full; (ii) there has been a material violation or material
breach by Hochschild of any covenant, representation or warranty or other
agreement contained in this Agreement such that any condition specified in Section 3.1
would be incapable of being satisfied at the Closing Date, and such violation
or breach is not waived by the Company or, in the case of a covenant breach,
cured by Hochschild by the earlier of ten days (or such longer period of time
as may be required provided the Company is diligently pursuing such cure) after
written notice thereof by the Company, or the Closing;

 

21

 

(c)           by written agreement of the Parties; or

 

(d)           by either Hochschild or the Company if
the Tranche Two Closing Date has not occurred by July 31, 2009 (other than
due to the fault or negligence of the Party purporting to exercise this
termination right), which date may be extended with the written consent of both
Parties.

 

8.2                                                                               Effect of Termination.

 

If this Agreement is terminated pursuant to Section 8.1,
all obligations of the Parties under or pursuant to this Agreement will
terminate without further liability of any Party to the other except for the
provision of Section 10.3 relating to expenses, Section 4.2 relating
to press releases and this Section 8.2, provided that nothing herein will
relieve any Party from liability for any breach of this Agreement occurring
before its termination.

 

ARTICLE
9

INDEMNIFICATION

 

9.1          Indemnification by the Company

 

The Company will indemnify and save harmless
Hochschild and the directors, officers, employees and agents of Hochschild
(collectively, the “Hochschild Indemnitees”)
from and against all Claims incurred by any one or more of Hochschild
Indemnitees directly or indirectly resulting from any breach of any covenant of
the Company contained in this Agreement or from any inaccuracy or
misrepresentation in any representation or warranty set forth in Section 5.1.

 

9.2          Indemnification by Hochschild

 

Hochschild will indemnify collectively and
save harmless the Company and the directors, officers, employees and agents of
the Company (collectively, the “Company Indemnitees”)
from and against all Claims incurred by any one or more of the Company
Indemnitees directly or indirectly resulting from any breach of any covenant of
Hochschild contained in this Agreement or from any inaccuracy or
misrepresentation in any representation or warranty set forth in Section 6.1.

 

ARTICLE
10

MISCELLANEOUS

 

10.1                                                                        Notice

 

All notices or other communications required
or permitted to be given by one party to another by the terms hereof shall be
given in writing by personal delivery or facsimile delivered to such other
party as follows:

 

22

 

To the Company:

 

Gold Resource
Corporation

222 Milwaukee
St., Suite 301

Denver, CO  80206

Attention:  William Reid, President

Facsimile No.:
(303) 320-7835

 

To Hochschild:

 

Hochschild Mining
Holdings Limited

Calle
La Colonia 180

Surco,
Lima 33, Peru

Attention:  Jose A. Palma

Facsimile
No.:  +511-437-5009

 

or at such other address or
facsimile number as may be given by either of them to the other in writing from
time to time and such other notices or communications shall be deemed to have
been received when delivered or, if by facsimile, on the next business day
after such notice or other communication has been transmitted by facsimile
(with receipt confirmed).

 

10.2                                                                        Further Assurances

 

Each of the parties hereto upon the request
of each of the other parties hereto, whether before or after each Closing Date,
shall do, execute, acknowledge and deliver or cause to be done, executed,
acknowledged and delivered all such further acts, deeds, documents,
assignments, transfers, conveyances, powers of attorney and assurances as may
reasonably be necessary or desirable to complete the transactions contemplated
herein.

 

10.3                                                                        Costs and Expenses

 

All costs and expenses (including, without
limitation, the fees and disbursements of legal counsel) incurred in connection
with this Agreement and the transactions herein contemplated shall be paid and
borne by the party incurring such costs and expenses.

 

10.4                                                                        Taxes

 

Hochschild does not assume and will not be
liable for any Taxes which may be or become payable by the Company, including
any Taxes resulting from or arising as a consequence of the issuance by the
Company of any Purchased Shares to Hochschild herein contemplated, and the Company
will indemnify and save harmless Hochschild, its Affiliates and their
respective directors, officers, employees and agents from and against all such
Taxes.

 

10.5                                                                        Applicable Law

 

This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed
by, the laws of the State of New York and the laws of the United States
applicable therein. Any and all disputes arising under this Agreement, whether
as to interpretation, performance or otherwise, shall be subject to the
non-exclusive jurisdiction of 

 

23

 

the courts of Colorado and
each of the parties hereto hereby irrevocably attorns to the jurisdiction of
the courts of such state.

 

10.6                                                                        Entire Agreement

 

This Agreement, together with the
Confidentiality and Non-Disclosure Agreement and the Strategic Alliance
Agreement, constitute the entire agreement between the parties with respect to
the transactions contemplated herein and cancels and supersedes any prior understandings,
agreements, negotiations and discussions between the parties.  There are no representations, warranties,
terms, conditions, undertakings or collateral agreements or understandings,
express or implied, between the parties hereto other than those expressly set
forth in this Agreement or in any such agreement, certificate, affidavit,
statutory declaration or other document as aforesaid.  This Agreement may not be amended or modified
in any respect except by written instrument executed by each of the parties
hereto.

 

10.7                                                                        Counterparts

 

This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original and all of which
together shall constitute one and the same Agreement. Counterparts may be
delivered either in original or faxed form and the parties adopt any signature
received by a receiving fax machine as original signatures of the parties.

 

10.8                                                                        Assignment

 

This Agreement may not be assigned by either
party except with the prior written consent of the other parties hereto.

 

10.9                                                                        Enurement

 

This Agreement shall enure to the benefit of
and be binding upon the parties hereto and their respective heirs, executors,
successors (including any successor by reason of the amalgamation or merger of
any party), administrators and permitted assigns.

 

10.10                                                                 Language

 

It is the express
wish of Hochschild that the Agreement and any related documentation be drawn up
in English.

 

 

	
   

  	
  GOLD RESOURCE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David C. Reid

  
	
   

  	
   

  	
  David C. Reid, Vice President

  
	
   

  	
   

  	
  Authorized Signing Officer

  

 

24

 

	
   

  	
  HOCHSCHILD MINING
  HOLDINGS LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Miguel Aramburu

  
	
   

  	
   

  	
  Miguel Aramburu, Director

  
	
   

  	
   

  	
  Authorized Signing Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Peru

  
	
   

  	
   

  	
  Country of Domicile

  

 

25Exhibit 10.1

 

AMENDMENT No. 1 TO AT MARKET ISSUANCE SALES
AGREEMENT

 

THIS AMENDMENT No. 1 TO AT
MARKET ISSUANCE SALES AGREEMENT (the “Amendment”)
is entered into effective as of the 2nd day of July, 2009 (the “Amendment Effective Date”), by and between
Valence Technology, Inc., a Delaware corporation (the “Company”), and Wm Smith &
Co. (“Wm Smith”).  Capitalized terms used herein but not defined herein
shall have the meanings ascribed to such terms in the At Market Sales Issuance
Agreement dated February 22, 2008 by and between the Company and Wm Smith
(the “Sales Agreement”).

 

RECITALS:

 

WHEREAS, through the
date hereof, the Company has issued and sold 4,621,448 Shares (the “Previously Sold Shares”) prior
to the Amendment Effective Date through Wm Smith, acting as agent and/or
principal, pursuant to the terms and conditions of the Sales Agreement;

 

WHEREAS, the Company and Wm Smith each desire to
amend the Sales Agreement to increase the aggregate number of shares of the
Company’s Common Stock permitted to be sold thereunder by five million
(5,000,000), to an aggregate of ten million (10,000,000) shares of Common Stock;

 

WHEREAS, pursuant to Section 16 thereof, the Sales
Agreement may be amended pursuant to a written instrument executed by the
Company and Wm Smith;

 

WHEREAS, such increase to ten million shares of Common Stock
permitted to be sold under the Sales Agreement less the Previously Sold Shares
shall result in 5,378,552 Shares (the “Available Shares”)
available for issuance and sale thereunder immediately following such increase;
and

 

WHEREAS, the parties hereto desire to take the actions set
forth below.

 

AGREEMENT:

 

NOW, THEREFORE, the parties hereby agree as follows:

 

1.             Amendment to Section 1 of the Sales Agreement;
Increase in Shares.  The first sentence
of Section 1 of the Sales Agreement is amended and restated in its
entirety to read as follows:

 

“The Company agrees that, from time to time during the term of this
Agreement, on the terms and subject to the conditions set forth herein, it may
issue and sell through Wm Smith, acting as agent and/or principal, up to
10,000,000 shares (the “Shares”) of
the Company’s common stock, par value $0.001 per share (the “Common Stock”).”

 

Unless and to the extent
that the context clearly requires otherwise, references to “Shares” in the Sales
Agreement, as amended by this Amendment, shall hereafter be deemed to

 

 

include the additional five million (5,000,000) shares
of Common Stock (the “Additional Shares”)
that are the subject of this Amendment, mutatis mutandis;
provided that only the Available Shares shall
remain available for issuance thereunder.

 

2.             Prospectus Supplement.  The Company agrees to file a prospectus
supplement to the base prospectus included as part of the Registration
Statement relating to the Additional Shares (the “New
Prospectus Supplement”). 
The Company will furnish to Wm Smith, for use by Wm Smith, copies of
such New Prospectus Supplement and such New Prospectus Supplement shall be
included as part of the Registration Statement and the Prospectus.

 

3.             Additional Shares Listing.  The Company will use its reasonable best
efforts to cause the Additional Shares to be listed on the Exchange and to
qualify the Additional Shares for sale under the securities laws of such
jurisdictions as Wm Smith reasonably designates and to continue such
qualifications in effect so long as required for the distribution of the
Placement Shares (including the Available Shares); provided,
however, that the Company shall not be required in connection
therewith to qualify as a foreign corporation or dealer in securities or file a
general consent to service of process in any jurisdiction.

 

4.             Schedule 3 of the Sales Agreement.  The list of names under the heading “Valence
Technology, Inc.” on Schedule 3 of the Sales Agreement is revised to read
as follows:

 

Robert L. Kanode

Ross A. Goolsby

 

5.             Available Shares Acknowledgment.  The Company and Wm Smith each  acknowledge and agree that immediately
following the effectiveness of this Amendment, the number of Shares remaining
available for sale under the Sales Agreement, as amended by this Amendment,
shall be 5,378,552 Shares.

 

6.             Deliveries of the Company.  Concurrently with the execution of this
Amendment, the Company has delivered to Wm Smith a certificate contemplated by Section 7(m) of
the Agreement and has caused Company Counsel to furnish a Reliance Letter and a
legal opinion letter addressing the authorization and enforceability against
the Company of this Amendment.

 

7.             No Other Amendments.  Except as set forth in this Amendment, all
the terms and provisions of the Sales Agreement shall continue in full force
and effect.

 

8.             Governing Law. 
This Amendment shall be governed by and construed under the laws of the
State of New York, without giving effect to conflicts of laws principles.

 

9.             Counterparts.  This Amendment may be executed in two
counterparts (including, without limitation, facsimile counterparts), each of
which shall be deemed an original, but all of which together shall constitute
one and the same agreement.

 

[Signature pages follow]

 

 

IN WITNESS WHEREOF, the respective parties have
executed this Amendment No. 1 to At Market Issuance Sales Agreement effective
as of the date first set forth above.

 

 

	
   

  	
  VALENCE
  TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert L. Kanode

  
	
   

  	
   

  	
  Robert L. Kanode

  
	
   

  	
   

  	
  President and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WM
  SMITH & CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William S. Smith

  
	
   

  	
   

  	
  William S. Smith

  
	
   

  	
   

  	
  President

  

 

 

SIGNATURE PAGE TO
AMENDMENT

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