Document:

ex10_60.htm

Exhibit 10.60

 

CONSULTING AGREEMENT

STRICTLY CONFIDENTIAL

GENERAL PROVISIONS

Purpose of Agreement

This Consulting Agreement ('Agreement') sets out the terms and conditions of the consulting arrangement between Toveloa Pty Limited ABN 67 003 629 212 a company registered under the Corporations Act in Australia and Natural Soda Holdings, Inc., a corporation registered in the State of Colorado, USA ("NSHT") (together "the Parties") to provide management advisory services ("Consulting Services") to NSHI. References in this agreement to NSHI are intended to be references to NSHI and its subsidiary Natural Soda, Inc., a corporation registered in the State of Colorado, USA. References in this agreement to 'you' and 'your' means 'Toveloa Pty Limited ABN 67 003 629 212'.

Confidential Information

During and after your consultancy with NSHI, except in the proper course of providing the Consulting Services or as required by law, you will not divulge to any person or use any trade secret, intellectual property or any confidential information of, NSHI including but not limited to:

	
  

	
§

	
the businesses, financial arrangements or positions of NSHI;

	
  

	
§

	
any of the dealings, transactions or affairs of the businesses of NSHI and its clients; and

	
  

	
§

	
the terms of contracts, arrangements and transactions between NSHI and its clients and customers.

CONSULTING SERVICES

The Parties acknowledge and agree that the Consulting Services shall be determined by the Board of NSHI based on the needs and requirements of NSHI from time to time. The Parties acknowledge and agree that during this Agreement NSHI may alter your reporting line from time to time to meet its needs or direct you to undertake duties for its affiliate entities. In order to meet the needs of its businesses, NSHI may alter your duties and responsibilities from time to time. NSHI will have regard to your skills and experience and any change will be affected with reasonable notice. The Parties acknowledge and agree that you will engage with the Board, executive management and owners of NSHI in the provision of the Consulting Services. The Parties acknowledge that the Consulting Services may include, but are not limited to, management, financial, commercial, strategic and operational advice and services as the need arises.

The Parties acknowledge and agree that you will render the Consulting Services primarily from Sydney, Australia. The Parties further acknowledge that you may be required to travel, including but not limited to, to the USA from time to time in the provision of the Consultancy Services.

CONSULTING FEES

Retainer

The Consulting Fee will be US$110,000 per annum with effect from 1 November 2009.

The Consulting Fee may be varied from time to time by mutual agreement.

The Consulting Fee will be payable monthly or as agreed between NSHI and you from time to time.

Bonus

In addition to the Consulting Fee you will be eligible for a bonus up to a maximum of 25% of the Consulting Fee ("Bonus") payable in addition to the Consulting Fee based on the assessment of your performance.

  

  

  

	
CONSULTING AGREEMENT

	
STRICTLY CONFIDENTIAL

Review

NSHI will review the Consultancy Fee and Bonus at least once in each 12 months during the term of this Agreement on such basis as NSHI in its absolute discretion may determine so as to reflect your performance in the provision of the Consulting Services.

EXPENSES

Reimbursement

NSHI shall reimburse you for all expenses properly incurred by you in the execution of your responsibilities and duties (including, without limitation, travel, accommodation, meals, entertainment and telephone expenses) and substantiated to the reasonable satisfaction of NSHI, whether by production of receipts or otherwise.

Corporate credit cards

NSHI may at its discretion give you a credit card(s) for the purpose of business related expenditure as referred to above. You shall comply with the card issuer's conditions of use of the card and with NSHI's policy for use of credit cards, as varied from time to time.

INSURANCE AND INDEMNITY

Indemnity

NSHI indemnifies you against any liability or loss arising from and any costs, charges and expenses incurred (including, without limitation, legal costs on a full indemnity basis) on or after the Commencement Date in relation to any act or omission by you in your capacity as a consultant, including you being deemed to be an officer, representative or agent of NSHI and including any position in which you are deemed to have a fiduciary duty to NSHI.

Costs of defending proceedings

The indemnity includes, but is not limited to, any liability for costs and expenses incurred by you:

(a) in defending any proceedings, whether civil or criminal, in which judgment is given in favour of you or in which you are acquitted; and

(b) in connection with any application in relation to any such proceedings in which relief is granted to to you by any court under the Corporations Law or the law in any jurisdiction that you are subject.

The costs and expenses incurred by you for the above purposes shall be paid to you by NSHI as such expenses are incurred provided that you submit a claim for such expenses in a form and with such detail as NSHI may reasonably require.

Limitations

The indemnity:

(a) applies only to the extent permitted by law;

(b) does not apply to the extent that any liability, loss, costs, charges or expenses result from any wilful neglect, wilful default, or dishonesty by you;

(c) applies only to the extent that you are not otherwise indemnified.

	
Consulting Agreement

	
NSHI-TOVELOA PL

  

  

  

	
CONSULTING AGREEMENT

	
STRICTLY CONFIDENTIAL

Impact of Taxation

The Parties agree that to the extent that any indemnity payment to you pursuant to this clause is taxable to you, the amount of the indemnity payment must be grossed up accordingly.

TERMINATION

Notice

This Agreement may be terminated by you giving to NSHI three months written notice or by NSHI giving three months written notice to you or by NSHI making a corresponding payment in lieu of notice for part or the whole of the notice period.

Termination by NSHI

NSHI may terminate this agreement immediately at any time by giving written notice to you if you:

(a) are declared bankrupt or compound with your creditors or any of them or assign your estate for the benefit of your creditors or any of them;

(b) are by reason of illness or other incapacity beyond your control unable to attend to the your responsibilities for six consecutive months or an aggregate of six months in any 12 month period

Entitlements upon termination

On termination of this agreement, whether pursuant to this clause or otherwise, NSHI shall pay to you:

(a) the Consulting Fee and Service Recognition payable to you on a pro rata basis up to and including the date of termination;

(b) any other amount due to you or due to a credit card provider pursuant to the clauses dealing with Expenses.

No compensation

Upon termination of this Agreement under its express terms you will not be entitled to claim any compensation or damages from NSHI in respect of termination other than as may be expressly provided for in this Agreement.

OTHER

Severability

Any part of this Agreement which is held to be illegal, void or unenforceable will be ineffective to the extent only of that illegality, voidness or unenforceability, without invalidating the remaining parts of this Agreement.

Entire Agreement

This Agreement constitutes the entire agreement between the Parties and supercedes all written and oral agreements, understandings, commitments and representations between the Parties.

Acknowledgement

We, the undersigned, hereby acknowledge and agree to the terms and conditions of consultancy as set out in this Agreement.

	
Consulting Agreement

	
NSHI-TOVELOA PL

  

  

  

	
CONSULTING AGREEMENT

	
STRICTLY CONFIDENTIAL

Toveloa Pty Limited ABN 67 003 629 212

	
Director  

	
/s/ A. You Lee

	  	
Name of Director (print)  

	
A. You Lee

	  

	
Executed as an agreement by NATURAL SODA

	
)

	  	  
	
HOLDINGS, INC. by its authorised representative in  

	
)

	  	  
	
the presence of:

	
)

	
/s/ Mike De Leeuw

	  	
/s/ Peter Cassidy

	
Witness

	  	
Director

	  	  	  
	  	  	  
	
Mike De Leeuw

	  	
Peter Cassidy

	
Name of witness (print)

	  	
Name of Director (print)

 

 

	
Consulting Agreement

	
NSHI-TOVELOA PLUnassociated Document

    EXECUTION
VERSION

    

    FIRST
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     

    FIRST
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (the “Amendment”), is
entered into as of June 30, 2010, by and among STANDARD BANK PLC, a bank
organized under the laws of England and Wales (the “Lender”), MINERA
SANTA RITA S. DE R.L. DE C.V., a Mexican company (“MSR”), ORO DE ALTAR
S. DE R.L. DE C.V., a Mexican company (“Oro de Altar” and
together with MSR, collectively, the “Borrowers” and each
individually, a “Borrower”) and
CAPITAL GOLD CORPORATION, a Delaware corporation (the “Guarantor”).

     

    WITNESSETH:

     

    WHEREAS, the Borrowers, the
Guarantor, the Lender and Standard Bank Plc, in its capacity as the Offshore
Account Holder entered into that certain Credit Agreement, dated as of August
15, 2006 ( the “Original Credit
Agreement”);

     

    WHEREAS, the parties hereto
entered into that certain Amended and Restated Credit Agreement, entered into on
September 18, 2008 with retroactive effect from July 17, 2008 (the “Credit Agreement”),
whereby the Original Credit Agreement was amended and restated to, among other
things, establish a senior secured revolving credit facility in the aggregate
principal amount of U.S.$5,000,000;

     

    WHEREAS, the parties hereto
seek to further amend the terms of the Credit Agreement to, among other things,
increase the aggregate principal of the senior secured revolving credit facility
by U.S. $2,500,000;

     

    NOW, THEREFORE, in
consideration of the premises and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     

    Section
1              Definitions.  Unless
otherwise provided herein, capitalized terms used but not defined herein shall
have the meanings assigned to them in the Credit Agreement.

     

    Section
2              Amendments.

     

    (a)           Section 1.01. of the
Credit Agreement is hereby amended by adding the following terms or, as
applicable, deleting the following terms in their entirety and replacing them as
follows:

     

    “Applicable
Margin” means (a) for Term Loans, two and one-half percent (2.50%) per
annum and (b) for Revolving Loans, three percent (3.00%) per annum.

     

    “Availability
Period” means the period from and including June 30, 2010 to the
Revolving Commitment Termination Date.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    “Debt
Service” means, for any period, the sum of any payments due in respect of
the Secured Obligations, excluding any payments due under the Revolving Loans,
payable by the Borrowers during such period.

     

    “El Chanate
Project” means the gold mine located in the State of Sonora, Mexico,
subject to the Mining Concessions listed under Section I of Schedule
1.01(a).

     

    “Fee
Letter” means that certain fee letter dated as of June 30, 2010 and
entered into by the Borrowers, the Guarantor and the Lender.

     

    “First
Amendment” means the First Amendment to the Amended and Restated Credit
Agreement dated as of June 30, 2010 and entered into by the Borrowers, the
Guarantor and the Lender.

     

    “Guarantor Cash
Flow from Operations” means an amount equal to the product of (a) the sum
of “Cash Flow From Operating Activities” as reported in the Guarantor’s
quarterly financial reports for the two (2) most recent Quarterly Periods and
(b) the factor two (2).

     

    “Guarantor
Debt”
means, as reported in the Guarantor’s quarterly financial reports, an amount
equal to the sum of Guarantor’s (a) short-term debt, (b) current portion of
long-term debt, (c) long-term debt and (d) contract derivatives.

     

    “Loan
Documents” means, collectively, (a) this Agreement, (b) the First
Amendment, (c) the Notes, (d) the Guaranty, (e) the Collateral Documents, (f)
the Secured Hedge Agreements, and (g) any ancillary documents, including any fee
letters with the Lender and all certificates delivered under or in connection
with the documents referred to in clauses (a) through
(f).

     

    “Mexican
Collateral Documents” means the Account Pledge Agreement, the Equity
Pledge Agreements, the Mortgage, the Movable Assets Pledge Agreement, and the
Oro de Altar Movable Assets Pledge Agreement, in each case as amended, restated
or otherwise modified from time to time in accordance with its
terms.

     

    “Oro de Altar
Movable Assets Pledge Agreement” means that certain Non-Possessory Pledge
Agreement, dated June 30, 2010 between Oro de Altar and Lender.

     

    “Project”
means the Borrowers’ design, construction, financing, furnishing,
installation, testing, commissioning, ownership, operation and maintenance of
each of the El Chanate Project and the Saric Project.

    
      
         

      

      
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    “Project
Agreements” means the Construction Contract, Real Estate Rights
Agreements, the Mining Services Contract, the Mining Contract and the Saric
Exploration Contract.

     

    “Ratio of Debt to
Cash Flow from Operations” means as of any date of determination, the
ratio of Guarantor Debt to Guarantor Cash Flow from Operations.

     

    “Revolving
Commitment Termination Date” means the earliest to occur of (a) June 30,
2012 and (b) the date of termination of the Commitments in full pursuant to
Section
11.02(a).

     

    “Saric Exploration
Contract” means that certain Contrato de Exploración Minera con
Opción a Compra dated April 4, 2008 between Oro de Altar and Robert
Preciado Soto.

     

    “Saric
Project” means that the gold mine located in the State of Sonora, Mexico
subject to the Mining Concessions listed under Section II of Schedule
1.01(a).

     

    (b)           Clause
(b) of Section
2.01 of the Credit Agreement is hereby amended in its entirety to read as
follows:

     

    “Revolving
Loans.  During the Availability Period, subject to the terms
and conditions set forth herein, the Lender agrees to make revolving loans
(“Revolving
Loans”) to the Borrowers from time to time in an aggregate principal
amount not to exceed Seven Million Five Hundred Thousand Dollars
(U.S.$7,500,000) (as such aggregate maximum amount may be reduced from time to
time as provided in Section 2.04, the
“Revolving
Commitment”).  Revolving Loans
may be repaid and reborrowed in accordance with the provisions
hereof.”

     

    (c)           The
third sentence of Clause (b) of Section 2.02 of the
Credit Agreement is hereby amended in its entirety to read as
follows:

     

    “Each
Revolving Loan shall be in a minimum aggregate amount of U.S.$500,000 and in
integral multiples of U.S.$50,000 in excess thereof (or the remaining amount of
the Revolving Commitment, if less).”

     

    (d)           Clause
(b) of Section
2.04 of the Credit Agreement is hereby amended in its entirety to read as
follows:

     

    “(b)
Voluntary.  The Borrowers shall have the right to terminate or
permanently reduce the unused portion of the Revolving Commitment at any time or
from time to time upon not less than three (3) Business Days’ prior notice
thereof to the Lender, which notice shall specify the effective date of such
termination or reduction, the amount of any such reduction, which shall be in a
minimum amount of U.S.$250,000 or a whole multiple of U.S.$50,000 in excess
thereof and shall be irrevocable and effective upon receipt by the Lender,
provided that no such reduction or termination shall be permitted if after
giving effect thereto and to any prepayments of the Loans made on the effective
date thereof, the sum of the outstanding Revolving Loans would exceed the
Revolving Commitment.”

    
      
         

      

      
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    (e)           Clause
(b) of Section
2.05 of the Credit Agreement is hereby amended in its entirety to read as
follows:

     

    “(b)  Revolving
Loan.  The Borrowers shall repay to the Lender the aggregate
principal amount of all Revolving Loans outstanding on the Revolving Commitment
Termination Date, together with all accrued interest any other additional
amounts required by Section 3.04
hereof.”

     

    (f)           Clause
(a) of Section
2.06 of the Credit Agreement is hereby amended in its entirety to read as
follows:

     

    “(a)  Interest
Rate.  Subject to the provisions of Section 2.06(b) and
Section
2.06(e), each Loan shall bear interest on the outstanding principal
amount thereof for each Interest Period at a rate per annum equal to the LIBO
Rate for such Interest Period plus the Applicable
Margin.”

     

    (g)           The
Credit Agreement is hereby amended by adding the following as Clause (e) to
Section 2.06:

     

    “(e)
Market
Disruption.  If prior to the first day of any Interest Period,
the Lender in its reasonable determination (which determination shall be
conclusive and binding on the Borrowers), the LIBO Rate does not adequately and
fairly reflect the cost to the Lender of advancing or maintaining any Loan
bearing interest at a rate equal to the LIBO Rate for such Interest Period, then
the Lender shall forthwith give written notice of such determination to the
Borrowers at least two (2) Business Days prior to the first day of such Interest
Period and the Borrowers’ right to continue any such Loan and (if the Revolving
Commitment Termination Date has not then occurred) the Lender’s obligation to
advance any such Loan shall be suspended and each such outstanding Loan shall be
converted to and maintained as a Loan whose interest rate is based on a rate
readily ascertainable by the Lender on the last day of its then existing
Interest Period as the cost of funding such Loan (and which may include (x) the
rate certified by the Lender as the rate that reflects the Lender’s cost of
funding its Loan or (y) the rate determined by the Lender to be its internal
prime or similar interest rate for such day, with any change in the rate made by
the Lender taking effect on the Business Day following such change until the
Lender notifies the Borrowers that the circumstances causing such suspension no
longer exist, whereupon the provisions of this Agreement otherwise applicable to
the continuation or (if the Revolving Commitment Termination Date has not then
occurred) advance of Loans having a rate of interest equal to the LIBO Rate
shall again apply.”

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (h)           The
second sentence of Clause (u) of Section 5.01 of the Credit Agreement is hereby
amended in its entirety to read as follows:

     

    “The
proceeds of the Revolving Loans shall be used to fund general corporate and
working capital requirements of the Borrowers in connection with the
Project.”

     

    (i)           The
second sentence of Clause (k) of Section 7.01 of the
Credit Agreement is hereby amended in its entirety to read as
follows:

     

    “Use the
proceeds of the Revolving Loans solely to fund general corporate and working
capital requirements of the Borrowers in connection with the
Project.”

     

    (j)           Clause
(c) of Section
9.01 of the Credit Agreement is hereby deleted in its
entirety.

     

    (k)           Section 9.02 of the
Credit Agreement is hereby amended in its entirety to read as
follows:

     

    “Guarantor’s Financial
Covenants.  So long as the Lender shall have any Commitment
hereunder, any Secured Hedge Agreement shall be in effect or any Loan or other
Secured Obligations hereunder or under any other Loan Document which is accrued
and payable shall remain unpaid or unsatisfied, the Guarantor, shall, (a)
maintain a ratio of current assets to current liabilities at all times greater
than or equal to 1.20:1.00, (b) maintain at all times a minimum Tangible Net
Worth of at least U.S.$30,000,000, (c) maintain an average minimum Liquidity of
U.S.$500,000 for each Quarterly Period, and (d) maintain at all times a Ratio of
Debt to Cash Flow from Operations no greater than 2.50:1.00.

     

    (l)           Clause
(a) of Section
10.01 of the Credit Agreement is hereby amended in its entirety to read
as follows:

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    “(a)
Operating Reports.  Deliver to the Lender, as soon as available, but
in any event no later than fifteen (15) days after the end of each Quarterly
Period of the Borrowers occurring after the first 5,000 tons of ore have been
placed on the Project’s leach pad, a summary of operations for each such
Quarterly Period and a summary of the fiscal year-to-date operations, in each
case including comparisons to the Operating Budget and the Financial Model,
including information in reasonable detail concerning: (A) Mine production
during such Quarterly Period, (B) the Borrowers’ inventory of Gold (i) on the
leach pads, (ii) in solution, (iii) in the adsorption-desorption-recovery plant
or (iv) in doré, in each case at
the end of such Quarterly Period, (C) the Ounces of Gold shipped from the Mine
during such Quarterly Period, (D) Project Revenues received during such
Quarterly Period, (E) Operating Costs paid during such Quarterly Period, (F) any
Capital Expenditures paid during such Quarterly Period, (G) the Borrowers’ most
recent cash planning forecast by month covering at least the next six (6)
months, (H) any material developments that occurred during such Quarterly Period
in Mine operations which have had or could reasonably be expected to have,
either individually or in the aggregate, a Material Adverse Effect, (I) a
description of any material noncompliance with Project Approvals and Agreement
Approvals or the Environmental Management Plan, and (J) without duplication of
any of the foregoing, a description of any defects or malfunctions at the Mine
that have had, or could reasonably be expected to have, either individually or
in the aggregate, a material adverse effect on actual or expected Operating
Costs and Project Revenues or on Mining Reserves.

     

    (m)         Schedule 1.01(a) of
the Credit Agreement is hereby amended in its entirety and replaced with Schedule 1.01(a)
hereto.

     

    (n)           Notice
provisions with respect to the Lender set forth in Schedule 12.02 of the
Credit Agreement is hereby amended in its entirety to read as
follows:

     

    “Lender:

     

    Standard
Bank Plc

    20
Gresham Street

    London
EC2 7JE

    Phone:  +442031458821

    United
Kingdom

    Telefax:  +442031898828

    Email:  london-loansadmin@standardbank.com

    Attention:  Banking
Operations

     

    With a copy
to:

    

    Standard
Americas Inc.

    Transaction
Management Americas

    320 Park
Avenue, 19th
Floor

    New York,
NY  10022

    Phone:  (212)
407-5168

    Telefax:  (212)
407-5178

    Email:  ted.kavanagh@standardny.com

    newyork-batm@standardny.com

    Attention:  Ted
Kavanagh”

    

    Section
3             Limited
Amendment.  Except as otherwise expressly provided herein, this
Amendment shall not be construed to (i) create any obligation on the part of the
Lender to consider or agree to any further action with respect to the Credit
Agreement or any other Loan Document and (ii) this Amendment shall not be deemed
to modify or amend any provision in the Credit Agreement or any other Loan
Document.

     

    
      
         

      

      
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    Section
4              Conditions to
Effectiveness.  The amendments contained in Section 2 shall
become effective on the date first above written provided that the following
conditions precedent shall have been satisfied or waived as determined by the
Lender:

     

    (i) the
Lender shall have received this Amendment together with an amendment of the
Revolving Note in form and substance satisfactory to the Lender duly authorized,
properly executed and delivered by each of the Borrowers and the Guarantor, as
the case may be;

     

    (ii) the
Lender shall have received an Officer’s Certificate (which Officer’s Certificate
shall be accompanied by copies of all documents referred to in such Officer’s
Certificate, (and, if not in English with an English translation thereof)) of
each Loan Party dated as of the date hereof in respect of (A) its Constituent
Documents, (B) its address and other information that will allow the Lender to
identify it in accordance with Applicable Law, and (C) the actions of its Equity
Interest holders, shareholders, partners, board of managers or other similar
corporate supervisory body taken to authorize the execution, delivery and
performance of this Amendment and each document or instrument executed in
connection with this Amendment;

    

    (iii) the
Lender shall have received an Officer’s Certificate of each Loan Party, dated as
of the date hereof, stating that the representations and warranties of such Loan
Party contained in the Loan Documents (including pursuant to Article V of the
Credit Agreement) are true and correct in all respects as of the date hereof,
except to the extent that such representations and warranties relate solely to
an earlier date, in which case such representations and warranties were true and
correct on and as of such date;

    

    (iv) the
Lender shall have received a non-possessory pledge agreement, in form and
substance satisfactory to the Lender duly authorized, properly executed and
delivered by Oro de Altar;

    

    (v) the
Lender shall have received an amendment to the Mortgage in form and substance
satisfactory to the Lender duly authorized, properly executed and delivered by
each of the Borrowers and the Guarantor, as the case may be;

    

    (vi) the
Lender shall have received evidence, in form and substance satisfactory to the
Lender, that the filing for registration of the amendment to the Mortgage before
(A) the Public Registry of Property of Caborca, Sonora, Mexico, with respect to
each of the mine properties and (B) the Mining Public Registry, with respect to
each of the Mining Concessions, occurred;

    

    (vii) the
Lender shall be satisfied that the Borrowers have complied with all reporting
and notice requirements set forth in Section 10.01 of the
Credit Agreement (including, without limitation, timely delivery to the Lender
of all operating reports, updated Life of Mine Plan, Financial Models, financial
statements, certificates and notices);

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    (viii)
the Lender shall have completed its due diligence review of the Project
(including a technical review and site visit to the Mine by the Independent
Engineer), which review shall have been satisfactory to the Lender, in its sole
discretion;

    

    (ix) the
Lender shall have received the following legal opinions in the English language
(with sufficient copies thereof for each addressee) in form and substance
satisfactory to the Lender:  (A) the opinion of Davis Graham &
Stubbs LLP, counsel to the Loan Parties; and (B) the opinion of Lizarraga,
Robles, Tapia y Cabrera S.C., Mexican counsel to the Loan Parties;

    

    (x) there
shall not have occurred any event which has had or could be reasonably expected
to have, either individually or in the aggregate, a Material Adverse
Effect;

    

    (xi)
other than those Project Approvals which are not currently necessary or required
for the development or operation of the Mine as contemplated by the Life of Mine
Plan or otherwise required to be in effect under the terms of Applicable Law,
this Agreement or the other Transaction Documents, as of the date hereof, no
approval, consent, exemption, authorization (including any Environmental Permit)
or other action by, or notice to, or filing with, any Governmental Authority or
any other Person is necessary or required in connection with the development,
construction or operation of the Mine in accordance with Applicable Law and as
otherwise contemplated by the Credit Agreement, this Amendment, the other
Transaction Documents and the Life of Mine Plan, except for the approvals,
consents, exemptions, authorizations, actions, notices, filings and licenses
listed on Schedule
5.01(c) to the Credit Agreement;

    

    (xii)   
the Lender shall have received evidence satisfactory to it that, as of the date
hereof, (A) all insurance policies required under Section 7.01(r) of
the Credit Agreement are in full force and effect, (B) all premiums for such
insurance policies due and payable thereon have been paid and (C) all Required
Insurance names the Lender as an additional insured and as sole loss payee with
respect to any claim payments;

    

    (xiii)  
the Lender shall have received from the Insurance Consultant in form and
substance reasonably satisfactory to the Lender a report confirming that the
Required Insurance is in full force and effect in accordance with the Credit
Agreement; and

    

    (xiv) no
Prospective Event of Default or Event of Default shall have occurred and be
Continuing.

    

    Section
5              Representations and
Warranties.  Each of the Borrowers represents and warrants to
the Lender that:

     

    (a)           as
of the date first above written, it does not own any Real Property Interest
other than the Real Property Interests listed on Schedule A
hereto.  Oro de Altar represents and warrants to the Lender that, as
of the date first above written, it does not own any assets other than those
assets listed on Schedule A hereto; and

     

    
      
         

      

      
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    (b)           as
of the date first above written, each of the Borrowers is not engaged in and has
not conducted any business other than the business of designing, constructing,
financing, furnishing, installing, testing, commissioning, owning, operating and
maintaining the Project.

     

    Section
6              Financial
Statements.  Each of MSR, Oro de Altar and the Guarantor hereby
expressly agrees that it shall comply with its respective obligations to provide
financial statements and related deliverables to the Lender pursuant to the
terms of the Credit Agreement, including without limitation, Section 10.01(c)
thereof.

     

    Section
7              Inspection
Rights.  In addition to, and in no way limiting the Lender’s
inspection rights under Section 7.01(f) of
the Credit Agreement, the parties hereto expressly agree that representatives of
the Lender shall be permitted to schedule (i) a site visit to the Mine prior to
the date hereof; and (ii) one (1) visit prior to June 30, 2011, in the case of
each of (i) and (ii), at the sole cost and expense of the Borrowers’ (including,
without limitation, all travel expenses of the Lender and any of its necessary
Consultants in connection with such visit), to inspect each of the El Chanate
Project and the Saric Project and any other properties of the Borrowers’, to
examine the Borrowers’ corporate, financial and operating records, and make
copies thereof or abstracts therefrom, and to discuss the Borrowers’ affairs,
finances and accounts with its directors, officers and independent public
accountants, at such reasonable times during normal business hours, upon
reasonable advance notice to such Borrower and subject to (i) conducting
such inspections in a manner that does not unreasonably disrupt the Borrowers’
operations, (ii) the confidentiality provisions set forth in Section 12.07 of the
Credit Agreement and (iii) applicable health and safety laws and
regulations and policies adopted by either Borrower.

     

    Section
8              Construction.  All
references in the Credit Agreement to the “Credit Agreement” or “this Agreement”
shall be deemed to refer to the Credit Agreement as amended by this Amendment,
and the parties hereto confirm their respective obligations
thereunder.  The Credit Agreement is hereby ratified by the parties
hereto and shall remain in all respects unchanged and in full force and effect,
except as expressly provided in Section 2 of this
Amendment.  Each Borrower confirms that each of the other Loan
Documents to which it is a party is, and shall continue to be in full force and
effect and is hereby confirmed and ratified in all respects.

     

    Section
9              Acknowledgement and
Consent.  The Guarantor hereby consents to the terms of this
Amendment and further hereby confirms and agrees that the obligations of the
Guarantor under each of the Loan Documents to which it is a party shall not be
impaired and each of the Loan Documents to which it is a party are, and shall
continue to be, in full force and effect and are hereby confirmed and ratified
in all respects, as amended pursuant to this Amendment.

     

    Section
10            Costs and
Expenses:  The Borrowers shall pay to Lender (x) all reasonable
out-of-pocket expenses of the Lender and its Affiliates (including all
reasonable fees and expenses of the Consultants, advisors and legal counsel to
the Lender) in connection with (i) the negotiation, preparation, printing
execution, perfection and enforcement of the Amendment and any document or
instrument executed in connection therewith, and (ii) any other fees due to the
Lender as of the date hereof.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    Section
11           Governing
Law.  This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York (including, without
limitation, Sections 5-1401, 5-1402 of the General Obligations Laws of the State
of New York) but without regard to conflict of law rules thereof.

     

    Section
12           Counterparts.  This
Amendment may be executed by the parties hereto in separate counterparts, each
of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same
instrument.

     

    [SIGNATURE
PAGES TO FOLLOW]

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective officers thereunto duly authorized, as of the date
and year first above written.

     

    
      
        	
                STANDARD
      BANK PLC, as the Lender

              
	 
      
	
                By:

              	
                /s/ Robert Anastasio    

              
	Name: 
      	      
                Robert
      Anastasio

              
	Title: 
      	      
                Senior
      Vice President

              
	 
      
	
                By:

              	
                /s/ Roderick L. Fraser

              
	Name: 	Roderick
      L. Fraser
	Title: 	Managing
      Director

      

    

    

    [SIGNATURE
PAGES CONTINUE]

    

    Signature Page to First Amendment to
Amended and Restated Credit Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        	
                MINERA
      SANTA RITA S. DE R.L. DE C.V., as

              
	
                Borrower

              
	 
      
	
                By:

              	
                /s/ Christopher M.
  Chipman

              
	      
                Name:

              	Christopher
      M. Chipman
	      
                Title:

              	CFO
	 
      
	
                ORO
      DE ALTAR S. DE R.L. DE C.V., as

                Borrower

              
	 
      
	
                By:

              	
                /s/ Christopher M.
  Chipman

              
	      
                Name:

              	Christopher
      M. Chipman
	      
                Title:

              	CFO
	 
      
	
                CAPITAL
      GOLD CORPORATION, as Guarantor

              
	 
      
	
                By:

              	
                /s/ Christopher M.
  Chipman

              
	      
                Name:

              	Christopher
      M. Chipman
	      
                Title:

              	CFO

      

    

    

    [END OF
SIGNATURE PAGES]

    

    Signature Page to First Amendment to
Amended and Restated Credit Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule
A

    

    Real
Property Interests

    

    (i)           Owned
Real Property

     

    (A)           Oro
de Altar owns the following real estate properties:

     

    
      	
               
      

            	
              1.

            	
              A
      rural property located in El Chanate region, in the municipality of Altar,
      Sonora, Mexico, with a surface of 176 hectares, which constitutes part of
      the El Chanate Project, as evidenced in public deed number 2,416, dated
      March 14, 2002, issued by Ms. María Luisa Lizárraga García, Notary Public
      number 35 in Hermosillo, Sonora, registered in the Public Registry of
      Property and Commerce of Caborca, Sonora on August 8, 2002 under registry
      number 40, 034, volume 464, book 1.

            

    

     

    
      	
               
      

            	
              2.

            	
              A
      rural property located in El Chanate region, in the municipality of Altar,
      Sonora, Mexico, with a surface of 290 hectares, which constitute part of
      the El Chanate Project, as evidenced in public deed number 2,416, dated
      March 14, 2002, issued by Ms. María Luisa Lizárraga García, Notary Public
      number 35 in Hermosillo, Sonora, registered in the Public Registry of
      Property and Commerce of Caborca, Sonora on August 8, 2002 under registry
      number 40,034, volume 464, book 1.

            

    

     

    
      	
               
      

            	
              3.

            	
              A
      rural property located in the municipality of Altar, Sonora, Mexico, with
      a surface of 220 hectares, which constitute part of the El Chanate
      Project, as evidenced in public deed number 18,174, dated March 26, 2009,
      issued by Mr. José Antonio Dávila Armenta, Notary Public number 3 in
      Caborca, Sonora, registered in the Public Registry of Property and
      Commerce of Caborca, Sonora on August 11, 2009 under registry number
      48,395, volume 1500, book 1.

            

    

     

    
      	
               
      

            	
              4.

            	
              A
      real estate property in Caborca, Sonora with a surface of 375 square
      meters, as evidenced in public deed number 13,038, dated September 5,
      2005, issued by Mr. José Luis Dávila Armenta, in substitution of Mr. José
      Antonio Dávila Payán, Notary Public number 3 in Caborca, Sonora,
      registered in the Public Registry of Property and Commerce of Caborca,
      Sonora on August 24, 2006 under registry number 43,629, volume 802, book
      1.

            

    

     

    
      	
               
      

            	
              5.

            	
              A
      real estate property located adjacent to the mining concessions set forth
      in Section (ii)(B) below, with a surface of approximately 2,200
      hectares.

            

    

     

    (B)           MSR
owns no real estate property.

     

    (ii)          Mining
Concessions

     

    (A)           Oro
de Altar owns the following mining concessions and leases the concessions to
MSR:

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	 
      	 
      	
                      Title No.

                    	 
      	
                      Concession Name

                    	 
      	
                      Hectares

                    
	
                      1.

                    	 
      	
                      200,718

                    	 
      	
                      San
      José

                    	 
      	
                      96.0000

                    
	
                      2.

                    	 
      	
                      206,408

                    	 
      	
                      Rono
      No. 1

                    	 
      	
                      82.1902

                    
	
                      3.

                    	 
      	
                      214,224

                    	 
      	
                      Rono
      No. 3

                    	 
      	
                      197.2180

                    
	
                      4.

                    	 
      	
                      211,987

                    	 
      	
                      La
      Cuchilla

                    	 
      	
                      143.3481

                    
	
                      5.

                    	 
      	
                      212,004

                    	 
      	
                      Elsa

                    	 
      	
                      2,035.3997

                    
	
                      6.

                    	 
      	
                      214,223

                    	 
      	
                      Elisa

                    	 
      	
                      78.4717

                    
	
                      7.

                    	 
      	
                      217,495

                    	 
      	
                      Ena

                    	 
      	
                      190.0000

                    
	
                      8.

                    	 
      	
                      212,395

                    	 
      	
                      Eva

                    	 
      	
                      416.8963

                    
	
                      9.

                    	 
      	
                      212,082

                    	 
      	
                      Mirsa

                    	 
      	
                      20.5518

                    
	
                      10.

                    	 
      	
                      212,081

                    	 
      	
                      Olga

                    	 
      	
                      60.5890

                    
	
                      11.

                    	 
      	
                      212,355

                    	 
      	
                      Edna

                    	 
      	
                      24.0431

                    
	
                      12.

                    	 
      	
                      206,404

                    	 
      	
                      El
      Charro

                    	 
      	
                      40.0000

                    
	
                      13

                    	 
      	
                      214,874

                    	 
      	
                      Las
      Dos Virgen

                    	 
      	
                      132.2350

                    
	
                      14

                    	 
      	
                      219,624

                    	 
      	
                      La
      Tira

                    	 
      	
                      1.7975

                    
	
                      15

                    	 
      	
                      219,623

                    	 
      	
                      La
      Tira 1

                    	 
      	
                      18.6087

                    
	
                      16

                    	 
      	
                      223,634

                    	 
      	
                      Los
      Tres

                    	 
      	
                      8.000

                    
	
                      17

                    	 
      	
                      231,373

                    	 
      	
                      Santa
      Rita I

                    	 
      	
                      3,765.9666

                    
	
                      18

                    	 
      	
                      232,117

                    	 
      	
                      Santa
      Rita III

                    	 
      	
                      2,233.3163

                    
	
                      19

                    	 
      	
                      233,574

                    	 
      	
                      Santa
      Rita 4 fracción I

                    	 
      	
                      5.0728

                    
	
                      20

                    	 
      	
                      233,575

                    	 
      	
                      Santa
      Rita 4 fracción II

                    	 
      	
                      4.7786

                    
	
                      21

                    	 
      	
                      233,576

                    	 
      	
                      Santa
      Rita 4 fracción III

                    	 
      	
                      110.2725

                    
	 
      	
                        

                    	 
      	Total	
                        

                    	
                      9,664.7559

                    

            

          

        

      

    

     

    (B)           
Pursuant to the Saric Exploration Contract, Oro de Altar owns mining development
rights, together with an option to purchase, the following 12 mining concessions
constituting the Saric Project and totaling 1,789.097 hectares located northwest
of Saric, Sonora:

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	 
      	 
      	
                        Title No.

                      	 
      	
                        Concession Name

                      	 
      	
                        Hectares

                      
	
                        1.

                      	 
      	
                        216,684

                      	 	
                        El
      Cometa

                      	 
      	
                        9.0000

                      
	
                        2.

                      	 
      	
                        219,812

                      	 	
                        El
      Cometa 2

                      	 
      	
                        91.0000

                      
	
                        3.

                      	 
      	
                        225,824

                      	 
      	
                        El
      Cometa 4

                      	 
      	
                        20.0000

                      
	
                        4.

                      	 
      	
                        222,808

                      	 
      	
                        El
      Cometa 4

                      	 
      	
                        148.0018

                      
	
                        5.

                      	 
      	
                        222,784

                      	 
      	
                        El
      Cometa 4

                      	 
      	
                        58.5084

                      
	
                        6.

                      	 
      	
                        225,092

                      	 
      	
                        El
      Cometa 5

                      	 
      	
                        260.5752

                      
	
                        7.

                      	 
      	
                        225,051

                      	 
      	
                        El
      Cometa 5

                      	 
      	
                        65.9935

                      
	
                        8.

                      	 
      	
                        229,206

                      	 
      	
                        Lalo
      1

                      	 
      	
                        29.0000

                      
	
                        9.

                      	 
      	
                        227,384

                      	 
      	
                        Lalo
      1

                      	 
      	
                        611.3590

                      
	
                        10.

                      	 
      	
                        229,255

                      	 
      	
                        Lalo
      2

                      	 
      	
                        97.7623

                      
	
                        11.

                      	 
      	
                        227,383

                      	 
      	
                        Lalo
      2

                      	 
      	
                        21.2562

                      
	
                        12.

                      	
                          

                      	
                        231,330

                      	
                         

                      	
                        Lalo
      3

                      	
                          

                      	
                        376.6406

                      
	 
      	 
      	 
      	Total	 
      	
                        1,789.097

                      

              

            

          

        

      

    

    

    (C)           MSR
does not own any mining concessions.

     

    (iii)        Other
Real Property Interests Owned by MSR:

     

    Water
rights for 3 wells (located in the same well):

    
      	
               
      

            	
              o

            	
              72-16,
      57-06 and 43-03 the 3 like members of ASUDIR (Water Users Association 037
      in Altar, Sonora, México)

            

    

    

    Right of
ways with:

    
      	
               
      

            	
              o

            	
              Ejido
      16 de Septiembre

            

    

    
      	
               
      

            	
              o

            	
              Rafael
      Escalante Almazén

            

    

    
      	
               
      

            	
              o

            	
              Dolores
      Almazán (deceased) (pending resolution of inheritance
      proceeding).

            

    

    

    (iv)         Leased
Real Property

     

    (A)           Oro
de Altar does not lease any real property.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    (B)           MSR
leases the three rural properties described in Sections (i)(A)(1), (i)(A)(2) and
(i)(A)(3) above, from Oro de Altar.

     

    (v)         Other
Leased Property

     

    (A)           Lease
agreement between MSR and Premaco del Desierto S.A. de C.V., dated March 2, 2009
(offices located at Lamberto Hernandez 278 Oeste, Caborca, Sonora,
México).

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule
1.01(a)

    

    Amended and Restated
Schedule 1.01(a)

    

    Mining
Concessions

     

    I. Oro de
Altar owns the following mining concessions, and, except where indicated
otherwise, the following mining concessions constitute the El Chanate
Project:

     

    
      
        
          
            
              	 
      	 
      	
                      Title No.

                    	 
      	
                      Concession Name

                    	 
      	
                      Hectares

                    
	
                      1.

                    	 
      	
                      200,718

                    	 
      	
                      San
      José

                    	 
      	
                      96.0000

                    
	
                      2.

                    	 
      	
                      206,408

                    	 
      	
                      Rono
      No. 1

                    	 
      	
                      82.1902

                    
	
                      3.

                    	 
      	
                      214,224

                    	 
      	
                      Rono
      No. 3

                    	 
      	
                      197.2180

                    
	
                      4.

                    	 
      	
                      211,987

                    	 
      	
                      La
      Cuchilla

                    	 
      	
                      143.3481

                    
	
                      5.

                    	 
      	
                      212,004

                    	 
      	
                      Elsa

                    	 
      	
                      2,035.3997

                    
	
                      6.

                    	 
      	
                      214,223

                    	 
      	
                      Elisa

                    	 
      	
                      78.4717

                    
	
                      7.

                    	 
      	
                      217,495

                    	 
      	
                      Ena

                    	 
      	
                      190.0000

                    
	
                      8.

                    	 
      	
                      212,395

                    	 
      	
                      Eva

                    	 
      	
                      416.8963

                    
	
                      9.

                    	 
      	
                      212,082

                    	 
      	
                      Mirsa

                    	 
      	
                      20.5518

                    
	
                      10.

                    	 
      	
                      212,081

                    	 
      	
                      Olga

                    	 
      	
                      60.5890

                    
	
                      11.

                    	 
      	
                      212,355

                    	 
      	
                      Edna

                    	 
      	
                      24.0431

                    
	
                      12.

                    	 
      	
                      206,404

                    	 
      	
                      El
      Charro

                    	 
      	
                      40.0000

                    
	
                      13

                    	 
      	
                      214,874

                    	 
      	
                      Las
      Dos Virgen

                    	 
      	
                      132.2350

                    
	
                      14

                    	 
      	
                      219,624

                    	 
      	
                      La
      Tira

                    	 
      	
                      1.7975

                    
	
                      15

                    	 
      	
                      219,623

                    	 
      	
                      La
      Tira 1

                    	 
      	
                      18.6087

                    
	
                      16

                    	 
      	
                      223,634

                    	 
      	
                      Los
      Tres

                    	 
      	
                      8.000

                    
	
                      17

                    	 
      	
                      231,373

                    	 
      	
                      Santa
      Rita I

                    	 
      	
                      3,765.9666

                    
	
                      18

                    	 
      	
                      232,117

                    	 
      	
                      Santa
      Rita III1

                    	 
      	
                      2,233.3163

                    
	
                      19

                    	 
      	
                      233,574

                    	 
      	
                      Santa
      Rita 4 fracción I

                    	 
      	
                      5.0728

                    
	
                      20

                    	 
      	
                      233,575

                    	 
      	
                      Santa
      Rita 4 fracción II

                    	 
      	
                      4.7786

                    
	
                      21

                    	 
      	
                      233,576

                    	 
      	
                      Santa
      Rita 4 fracción III

                    	 
      	
                      110.2725

                    
	 
      	
                        

                    	 
      	Total	
                        

                    	
                      9,664.7559

                    

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    II. Pursuant to the Saric
Exploration Contract, Oro de Altar owns mining development rights, together with
an option to purchase, the following 12 mining concessions constituting the
Saric Project and totaling 1,789.097 hectares located northwest of Saric,
Sonora:

     

    constituting
the Saric
Project:

     

    
      
        
          
            
              	 
      	 
      	
                      Title No.

                    	 
      	
                      Concession Name

                    	 
      	
                      Hectares

                    
	
                      1.

                    	 
      	
                      216,684

                    	 
      	
                      El
      Cometa

                    	 
      	
                      9.0000

                    
	
                      2.

                    	 
      	
                      219,812

                    	 
      	
                      El
      Cometa 2

                    	 
      	
                      91.0000

                    
	
                      3.

                    	 
      	
                      225,824

                    	 
      	
                      El
      Cometa 4

                    	 
      	
                      20.0000

                    
	
                      4.

                    	 
      	
                      222,808

                    	 
      	
                      El
      Cometa 4

                    	 
      	
                      148.0018

                    
	
                      5.

                    	 
      	
                      222,784

                    	 
      	
                      El
      Cometa 4

                    	 
      	
                      58.5084

                    
	
                      6.

                    	 
      	
                      225,092

                    	 
      	
                      El
      Cometa 5

                    	 
      	
                      260.5752

                    
	
                      7.

                    	 
      	
                      225,051

                    	 
      	
                      El
      Cometa 5

                    	 
      	
                      65.9935

                    
	
                      8.

                    	 
      	
                      229,206

                    	 
      	
                      Lalo
      1

                    	 
      	
                      29.0000

                    
	
                      9.

                    	 
      	
                      227,384

                    	 
      	
                      Lalo
      1

                    	 
      	
                      611.3590

                    
	
                      10.

                    	 
      	
                      229,255

                    	 
      	
                      Lalo
      2

                    	 
      	
                      97.7623

                    
	
                      11.

                    	 
      	
                      227,383

                    	 
      	
                      Lalo
      2

                    	 
      	
                      21.2562

                    
	
                      12.

                    	
                        

                    	
                      231,330

                    	
                        

                    	
                      Lalo
      3

                    	
                        

                    	
                      376.6406

                    
	 
      	 
      	 
      	Total	 
      	
                      1,789.097

                    

            

          

        

      

    

     

    
      
        

      

      1 The
Santa Rita III mining concession is part of the Saric
Project

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]