Document:

Exhibit 10.3

Exhibit
10.3

MEXORO MINERALS LTD.

CANCELLATION OF DEBT AND RELEASE AGREEMENT

This CANCELLATION OF DEBT AND RELEASE AGREEMENT (this “Agreement”) is made as of the
23rd day of December 2009, by and between Mexoro Minerals Ltd., an entity organized under the laws
of Mexico (the “Company”), Minera Rio Tinto, S.A. de C.V. (“MRT”) and Mario Ayub
(“Mr. Ayub” and along with MRT, the “Releasing Parties”).

RECITALS

A. As of the date of this Agreement, the Releasing Parties claim that the Company owes the
debt outstanding set forth on Schedule A attached hereto (the “Outstanding Debt”).

B. The Company and Releasing Parties have agreed that Releasing Parties shall accept certain
payments and shares of the Company’s Common Stock and warrants to purchase shares of the Company’s
Common Stock in full satisfaction of the Outstanding Debt as set forth herein.

C. Mr. Ayub is acquiring 386,666 shares of the Company’s common stock (the “Shares”)
and 193,333 warrants to purchase shares of the Company’s common stock (the “Warrants”)
pursuant to a Securities Purchase Agreement, dated as of the date hereof, by and among the Company
and Mr. Ayub (“Purchase Agreement”).

NOW, THEREFORE, in consideration of the recitals and the mutual covenants and agreements
hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Full Satisfaction and Forbearance.

(a) The Company agrees that as soon as reasonably practicable following the closing of
the Company’s sale of the Guazapares property (the “Guazapares Closing”), it will
pay the sum of $9,637.50 to MRT and the sum of $74,629.74 to Mr. Ayub (the “Initial
Payments”).

(b) The Company agrees that it will pay an aggregate of $120,000 to Mr. Ayub in equal
monthly installments, with payments beginning January 15, 2010 and continuing on the 15th
day of each month thereafter for a period of one year (the “Deferred Payments”),
provided however if the Guazapares Closing has not occurred prior to January 15, 2010, then
the Deferred Payments shall begin on the 15th day of the first month following the
Guazapares Closing.

(c) The Company agrees to issue the Shares and Warrants to Mr. Ayub pursuant to the
terms of the Purchase Agreement (the “Securities Issuance”).

(d) The Releasing Parties agree that the Initial Payment, the Deferred Payments and the
Securities Issuance will be made by the Company to the Releasing

 

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Parties in full satisfaction of the Outstanding Debt, including any and all accrued
interest with respect to the Outstanding Debt.

2. Release by Releasing Parties. Except with respect to the Initial Payments, the
Deferred Payments and the Securities Issuance, execution of this Agreement will automatically, by
operation of this Agreement and without any further action on the part of the Company or Releasing
Parties, effect a release and discharge by the Releasing Parties of the Company and their
affiliates and past, present and future officers, directors, shareholders, employees, agents,
successors and assigns from all manner of action, cause and causes of action, suits, debts, sums of
money, accounts, covenants, controversies, agreements, promises, damages, judgments, executions,
costs, expenses, rights, claims or demands whatsoever, at law or in equity, existing at the date
thereof, at any time before the date thereof, or thereafter arising, both anticipated and
unanticipated, known and unknown, contingent and non-contingent, liquidated and non-liquidated,
that Releasing Parties have had, now has, then has or may have against the Company or its
affiliates or past, present or future officers, directors, shareholders, employees, agents,
successors or assigns by reason of any cause or thing, arising or to arise, out of the Outstanding
Debt and any and all agreements, purchase orders, invoices or other arrangements, written or oral,
with respect to the relationship between the Company and the Releasing Parties. For purposes
herein, “Releasing Parties” shall be deemed to include any affiliate of the Releasing Parties.

3. Waiver. The Releasing Parties hereby irrevocably waive their rights under any
applicable statute, rule, regulation, legal principle or legal doctrine that provides that a
general release does not extend to claims which a releasing party does not know or suspect to exist
in its favor at the time of executing such release, which if known by the releasing party would
have materially affected its settlement with the released party, including, without limiting the
generality of the foregoing, the provisions of Section 1542 of the California Civil Code, to the
extent deemed applicable, which provides as follows:

A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known
by him must have materially affected his settlement with the debtor.

4. Other Agreements. Notwithstanding anything contained in this Agreement, all terms
of (a) the Definitive Agreement for the Development of the Cieneguita Project, dated February 6,
2009, entered into between the Company and MRT, as amended, (b) the Consulting Agreement, dated
September 21, 2009, by and between the Company and MRT Investments Ltd., and (c) the
Acknowledgement and Agreement, dated December 23, 2009, by and among the Company, Mario Ayub, MRT
and the other parties names therein, shall remain in full force and effect.

5. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE LAW OF THE STATE OF
CALIFORNIA (REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE CALIFORNIA
PRINCIPLES OF CONFLICTS OF LAW) AS TO ALL MATTERS, INCLUDING, WITHOUT LIMITATION, MATTERS OF
VALIDITY, CONSTRUCTION, EFFECT, PERFORMANCE AND REMEDIES.

 

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6. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto, their respective successors and assigns.

7. Counterparts. This Agreement may be executed in counterparts, each of which shall
be an original and all of which shall constitute but one and the same instrument.

8. Captions. The captions contained in this Agreement are for the convenience of the
parties hereto and shall not be deemed or construed as in any way limiting or extending the
language of the provisions to which such captions refer.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written.

	 	 	 	 	 
	THE COMPANY: 	MEXORO MINERALS LTD.

 	 
	 	By:  	/s/ George Young
 	 
	 	 	Name:  	George Young 	 
	 	 	Title:  	President 	 
	 
	 	 	 
	RELEASING PARTIES: 	      /s/ Mario Ayub
 	 
	 	Mario Ayub 	 
	 	 	 
	 
	 	MINERA RIO TINTO, S.A. DE C.V.

 	 
	 	By:  	/s/ Mario Ayub
 	 
	 	 	Name:  	Mario Ayub 	 
	 	 	Title:  	President 	 

 

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Schedule A

OUTSTANDING DEBT SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Amount	 	 	 	 	 	 	Amount	 	 	 	 	 	 	 
	Account	 	Description	 	 	Debtor	 	 	Owed (MXN)	 	 	Fx	 	 	Owed (USD)	 	 	Total Due	 	 	Name	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2100
	 	Accounts Payable	 	Mexoro	 	 	 	 	 	 	 	 	 	 	16,000.00	 	 	 	116,000.00	 	 	Mario Ayub
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2104-002-00
	 	Loan	 	Sunburst *	 	 	2,522,770	 	 	 	0.08	 	 	 	194,629.66	 	 	 	194,629.74	 	 	Mario Ayub
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2109-001-00
	 	Loan	 	Sunburst *	 	 	124,919	 	 	 	0.08	 	 	 	9,637.43	 	 	 	9,637.50	 	 	Minera Rio Tinto
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total due under promissory notes and accounts payable	 	 	 	 	 	 	 	 	 	 	320,267.24	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

5Exhibit 10.4

Exhibit
10.4

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of December
23, 2009 by and between Mexoro Minerals Ltd., an entity organized under the laws of Mexico (the
“Company”), and Mario Ayub (“Purchaser”).

WHEREAS, Purchaser has entered into an Cancellation of Debt and Release Agreement with the
Company, dated as of the date hereof (the “Release Agreement”), pursuant to which the parties have
agreed to enter into this Agreement; and

WHEREAS, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to
purchase from the Company, shares of common stock of the Company and warrants to purchase shares of
common stock of the Company as herein described according to the terms and subject to the
conditions hereinafter set forth.

NOW, THEREFORE, in consideration for the mutual promises and covenants set forth herein and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

1. Number of Shares and Price Per Share. The Purchaser hereby agrees to purchase from
the Company and the Company agrees to sell to Purchaser (a) 386,666 shares of the Company’s Common
Stock, no par value per share (the “Shares”), and (b) 193,333 warrants to purchase shares of the
Company’s Common Stock (the “Warrants”, and along with the Shares, the “Securities”), for an
aggregate purchase price of $116,000 (the “Purchase Price”). The Purchase Price for the Securities
will be paid through the Purchaser’s cancellation hereby of indebtedness in an amount equal to
$116,000 due to Purchaser as set forth in the Release Agreement. The closing of the sale and
purchase of the Securities shall occur immediately upon execution of this Agreement.

2. Legends. All certificates representing any Securities subject to the provisions of
this Agreement shall have endorsed thereon the following legends:

(a) “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED
UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE
SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE ACT, OR THE COMPANY RECEIVES AN OPINION OF
COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT
SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF SUCH ACT.”

(b) Any legend required to be placed thereon under applicable state securities laws.

 

 

 

3. Representations and Warranties. In connection with the proposed purchase of the
Securities, the Purchaser hereby agrees, represents and warrants as follows:

(a) The Purchaser is purchasing the Securities solely for the Purchaser’s own account for
investment and not with a view to, or for resale in connection with, any distribution thereof
within the meaning of the Securities Act.

(b) The Purchaser realizes that Purchaser’s purchase of the Securities will be a highly
speculative investment, and Purchaser is able, without impairing Purchaser’s financial condition,
to hold the Securities for an indefinite period of time and to suffer a complete loss of
Purchaser’s investment.

(c) The Company has disclosed to the Purchaser that:

(i) The sale of the Securities has not been registered under the Securities Act, and the
Securities must be held indefinitely unless a transfer of it is subsequently registered under the
Securities Act or an exemption from such registration is available, and that the Company is under
no obligation to register the Securities;

(ii) The Company will make a notation in its records of the aforementioned restrictions on
transfer and legends.

(d) The Purchaser is aware of the provisions of Rule 144, promulgated under the Securities
Act, which, in substance, permits limited public resale of “restricted securities” acquired,
directly or indirectly, from the issuer thereof (or an affiliate of such issuer), in a non-public
offering subject to the satisfaction of certain conditions, including among other things: the
resale occurring not less than six months from the date the Purchaser has purchased and paid for
the Securities and the availability of certain public information concerning the Company.

(e) Without in any way limiting the Purchaser’s representations and warranties set forth
above, the Purchaser further agrees that the Purchaser shall in no event make any disposition of
all or any portion of the Securities which the Purchaser is purchasing unless and until:

(i) There is then in effect a registration statement under the Securities Act (a “Registration
Statement”) covering such proposed disposition and such disposition is made in accordance with said
Registration Statement; or

(ii) The Purchaser shall have (1) notified the Company of the proposed disposition and
furnished the Company with a detailed statement of the circumstances surrounding the proposed
disposition, and (2) if reasonably requested by the Company, furnished the Company with an opinion
of the Purchaser’s own counsel to the effect that such disposition will not require registration of
such shares under the Securities Act, and such opinion of the Purchaser’s counsel shall have been
concurred in by counsel for the Company, and the Company shall have advised the Purchaser of such
concurrence.

 

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4. “Market Stand-Off” Agreement. Purchaser hereby agrees that in connection with any
underwritten public offering by the Company, during the period of 90 days following the effective
date of the Registration Statement of the Company filed under the Securities Act with respect to
such offering, he or she will not, to the extent requested by the Company and such underwriter,
directly or indirectly sell, offer to sell, contract to sell (including, without limitation, any
short sale), grant any option to purchase, pledge or otherwise transfer or dispose of (other than
to donees who agree to be similarly bound) any securities of the Company held by him or her at any
time during such period except common stock included in such registration. If requested by such
underwriter, Purchaser agrees to execute a lock-up agreement in such form as the underwriter may
reasonably propose.

5. Transfers in Violation of Agreement. The Company shall not be required (i) to
transfer on its books any Securities of the Company which shall have been sold or transferred in
violation of any of the provisions set forth in this Agreement or (ii) to treat as owner of such
shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom
such shares shall have been so transferred.

6. Miscellaneous.

(a) Further Instruments. The parties agree to execute such further instruments and to
take such further action as may reasonably be necessary to carry out the intent of this Agreement.

(b) Notice. All notices required or permitted hereunder shall be in writing and shall
be deemed effectively given (i) upon personal delivery, (ii) when sent by confirmed facsimile, if
sent during normal business hours of recipient, or if not, then on the next business day, or (iii)
one (1) day after deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent to the party to
be notified at the address as set forth on the signature pages hereof or at such other address as
such party may designate by ten (10) days advance written notice to the other parties hereto.

(c) Successors and Assigns. This Agreement shall inure to the benefit of the
successors and assigns of the Company and, subject to the restrictions on transfer herein set
forth, be binding upon the Purchaser, the Purchaser’s heirs, executors, administrators, successors
and assigns.

(d) Applicable Law; Entire Agreement; Amendments. This Agreement shall be governed by
and construed in accordance with the laws of the State of California as it applies to agreements
between California residents, entered into and to be performed entirely within California and
constitutes the entire agreement of the parties with respect to the subject matter hereof
superseding all prior written or oral agreements, and no amendment or addition hereto shall be
deemed effective unless agreed to in writing by the parties hereto.

(e) Right to Specific Performance. The Purchaser agrees that the Company shall be
entitled to a decree of specific performance of the terms hereof or an injunction

 

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restraining violation of this Agreement, said right to be in addition to any other remedies
available to the Company.

(f) Severability. If any provision of this Agreement is held by a court to be
invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force
and effect without being impaired or invalidated in any way and shall be construed in accordance
with the purposes and tenor and effect of this Agreement.

(g) Counterparts; Facsimiles. This Agreement may be executed in counterparts, each of
which shall be an original, but all of which together shall constitute one instrument and such
counterparts may be delivered via facsimile.

(h) California Corporate Securities Law. THE SALE OF THE SECURITIES THAT ARE THE
SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE
OF CALIFORNIA AND THE ISSUANCE OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS
EXEMPT FROM THE QUALIFICATION BY SECTIONS 25100, 25102, OR 25105 OF THE CALIFORNIA CORPORATIONS
CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION
BEING OBTAINED, UNLESS THE SALE IS SO EXEMPT.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	“PURCHASER”	 	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	MARIO AYUB	 	 	 	MEXORO MINERALS LTD.	 	 
	 
	/s/ Mario Ayub	 	 	 	By:	 	/s/ George Young	 	 
	 	 	 	 	 	 	 	 	 
	Signature

	 	 	 	 	 	 	 	Title:
	 	President	 	 
	Address:

	 	 	 	 	 	 	 	Address:
	 	Mountain View Center	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	12303 Airport Way	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Suite 200	 	 
	 

	 	 	 	 	 	 	 	 	 	Broomfield, CO 80021	 	 

[SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

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