Document:

Option Agmt - Revised

  

 BINDING COMMITMENT TO PURCHASE (LA MILLONARIA)
 

 THIS BINDING COMMITMENT TO PURCHASE (this “Agreement”) is made as of the 19th day of December, 2007
 

 BETWEEN: CORPORACION AMERMIN S.A DE C.V
 

 Ramon Dominguez #200, Col. Deportistas, 31125, Chihuahua, Chihuahua, Mexico;
 

 (the "Seller")
 

 OF THE FIRST PART
 

 AND: MINERO LA CAMERA MEXICO, S.A. DE C.V.
 

 _________________;
 (the "Buyer")
 

 OF THE SECOND PART
 AND INTERVENED TO THE AGREEMENT:
 

 AND: TARA GOLD RECOURCES CORP. ,
 

 a company incorporated under the laws of Nevada, having its registered office at Tara Gold Resources Corp., 2162 Acorn Court, Wheaton, Illinois  60187; 
 

 (“Tara Gold”)
 

 

 AND: LA CAMERA MINING INC., 
 

 a company incorporated under the Business Corporations Act (Ontario), having its registered office at 131 Bloor Street West, Upper Penthouse West, Toronto, ON  M5S 1S3; 
 

 (“CAMERA”)
 

 

 WHEREAS:
 

 A.
 Tara Gold has a 99.9% beneficial interest in the Seller, and the Seller has Contractual Interests (as hereinafter defined) in the Property (as hereinafter defined).  
 

 Initials:  ____________________  /  _____________________
 

 
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 The “Property” shall mean the mineral claim blocks, mining leases, other mining interests and other rights in and to the real property related thereto as described in Schedule “A” attached hereto.  Any reference herein to any mineral claim blocks comprising the Property includes any mineral leases or other interests into which such mineral claim blocks may have been converted.  The “Contractual Interests” shall mean Seller’s interest in the option contracts related to the Property described in Schedule “B” attached hereto; and
 

 B.
 Pursuant to a Master Agreement dated December 14, 2007 between Tara Gold and CAMERA (the “Master Agreement”), Tara Gold has agreed to cause the Seller to grant an exclusive commitment to purchase to the Buyer to acquire a 70% undivided interest in and to the Property on the terms and conditions hereinafter set forth, and the Buyer has executed and delivered certain promissory notes as more fully described therein (collectively, the “Notes”);
 

 NOW THEREFORE the parties hereto agree as follows:
 

 DEFINITIONS
 

 1.
 For the purposes of this Agreement the following words and phrases shall have the following meanings, namely:
 

 (a)
 “Assumed Obligations” shall mean all of those obligations, covenants and burdens under the Contractual Interests which are expressly set forth in this Agreement, including, without limitation, those set forth in Section 3 below and those on Schedule “C” attached hereto;
 

 (b)
 "Bankable Feasibility Study" means a detailed study of the Property in which all geological, engineering, operating, economic and other relevant factors are analyzed in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the Property for mineral production;
 
 (c) 
 "Commitment Period" means the period from the date of this Agreement to and including the sooner of (i) the date of the exercise of the Commitment to Purchase in accordance with this Agreement, or (ii) the termination of this Agreement; 
 

 (d) 
 "Commitment to Purchase" means the exclusive right to acquire up to a 70% undivided interest in and to the Property as provided in this Agreement; 
 

 (e)
 "Exploration Expenditures" means the sum of all direct expenditures on the exploration and development of the Property, including those of a capital nature that have been pre-approved by the Seller, but excluding equity related incentives, taxes and costs contemplated under Section 3 of this Agreement, with the exception of Sections 3(b)(ii), incurred or 
 

 Initials:  ____________________  /  _____________________
 

 

 
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 chargeable by the Buyer with respect to the exploration and development of the Property; and
 

 (f) 
 “Permits” means all licenses, permits, franchises, approvals, authorizations, consents or orders of, or filings with, any governmental authority, or any other person, necessary for the past, present or anticipated conduct of, or relating to the operation of the Property.
 

 (g)
 La Camera shall fulfill each and every of its obligations, covenants and conditions under that certain Letter of Agreement dated as of November 30, 2007 by and among the Seller, La Camera, Tara Gold and Lateegra Gold Corp., including, without limitation, the payment of the Cash Payment and the making of the Share Payment as such terms are defined therein.
 

 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SELLER
 

 2.
 (a)
 Each of the representations and warranties made by the parties under the Master Agreement is hereby incorporated into this Agreement as if such representation and warranty was fully restated and made hereunder.
 

 (b)
 In addition to the representations and warranties under the Master Agreement, the Seller represents and warrants to and covenants with the Buyer, that:
 

 (i)
 the Seller holds the Contractual Interests free and clear of all liens, charges and claims of others, except as contained in Schedule "A" hereto; 
 
 (ii)
 there are not any adverse claims or challenges against or to the ownership of or title to any of the Contractual Interests, and there are no outstanding agreements or options to acquire or purchase the Contractual Interests or any portion thereof, and no person other than the Seller, pursuant to the provisions hereof, has any royalty or other interest whatsoever in production from any of the Contractual Interests; and
 
 (iii)
 the contracts and documents which make up the Contractual Interests as set forth on Schedule “B” attached hereto are in full force and effect, and, as of the date hereof, to the best of its knowledge, the Seller has fulfilled each of its material obligations and duties thereunder.
 

 

 Initials:  ____________________  /  _____________________
 

 

 
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 GRANT OF COMMITMENT TO PURCHASE / CONSIDERATION
 

 3.
 (a)
 The Seller hereby grants to the Buyer the Commitment to Purchase, which shall be a right to acquire a 70% undivided interest in and to the Property, subject to the terms of this Agreement, free and clear of all charges, encumbrances and claims, except for those set out in Schedule "A" hereto.
 

 (b)
 In consideration for the Commitment to Purchase, the Buyer shall:
 

 (i)
 fulfill and assume all the Assumed Obligations of the Seller, including, without limitation, making all the payments in accordance with the payment schedule included hereto within Schedule “C”, which payments shall be made to the Seller on or before the Payment Due Date from the Buyer (which is fourteen (14) days prior to the Payment Scheduled Due Date) as such terms are set forth on Schedule “C.”   All such payments shall be made pursuant to the wire transfer instructions set forth in Schedule “D” or as otherwise directed by Seller; and
 

 (ii)
 in addition to obligations set forth elsewhere in this Agreement, incur, at a minimum, $750,000 for calendar year 2008 and $1,250,000 per year for each calendar year thereafter in Exploration Expenditure on the Property through calendar year 2010.  In the event that the Buyer spends, in any calendar year through calendar year 2010, less than the specified sum, the Buyer shall, in addition to its Exploration Expenditures due for the subsequent years, invest twice such difference (the “Doubled Deficit”) as an additional Exploration Expenditure in the Property within a three (3) month period after the end of such year, and if not done within such three (3) month period, the Buyer shall pay to the Seller any portion of the Doubled Deficit which is not so invested immediately upon the expiry of that three (3) month period in full satisfaction of the Exploration Expenditures obligations set forth above for such prior year.
 

 

 (c)
 During the Commitment Period, the Buyer shall cause all net revenue resulting from production under the Contractual Interests and the Property to be divided between La Camera and Tara Gold as follows:  La Camera will retain seventy percent (70%) of the net revenue and Tara will retain thirty percent (30%) of the net revenue.
 

 (d)
 In the event that La Camera undertakes to purchase any additional properties or contractual interests which are within a two (2) mile radius of the Property, then such costs will be borne by La Camera exclusively.  
 

 Initials:  ____________________  /  _____________________
 

 

 
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 The definition of “Property” shall be revised to include the additional properties and the definition of “Assumed Obligations” shall be revised to include all obligations, covenants and burdens under the option contracts related to the additional properties.
 

 (e)
 La Camera will pay all semi-annual concession rights payments and complete all annual work assessment reports due in connection with the Contractual Interests on a timely basis, as per relevant Mexican laws and regulations.
 

 (f)
 Prior to the transfer of the Property pursuant to the Commitment to Purchase (the “Transfer”), La Camera will enter into a Joint Operating Agreement with Tara Gold in accordance with Section 10 of this Agreement.
 

 OBLIGATIONS OF THE BUYER DURING COMMITMENT PERIOD
 

 4.
 During the Commitment Period the Buyer shall:
 

 (a)
 provide to Tara Gold a statement of the Exploration Expenditures, excluding IVA taxes, along with supporting documents, on a quarterly basis and upon incurring the required Exploration Expenditures.  Tara Gold, within ninety (90) days of receipt of the final statement of the Exploration Expenditures, shall review all the statements for eligible spending and send a letter to the Buyer stating whether the Buyer has met its Exploration Expenditure obligations as outlined in Section 3(b)(ii). 
 

 (b)
 maintain in good standing the Property by the doing and filing of assessment work or the making of payments in lieu thereof, by the payment of all taxes and rentals, and the performance of all other actions which may be necessary in that regard and in order to keep the Property free and clear of all liens and other charges arising from the Buyer's activities thereon;
 

 (c)
 duly record all exploration work carried out on the Property by the Buyer as assessment work ;
 

 (d)
 permit the Seller and its directors, officers, employees and designated consultants, at their own risk and expense, access to the Property at all reasonable times for all reasonable purposes;
 

 (e)
 conduct its operations on the Property in a good and workmanlike fashion and in accordance with the Contractual Interests, all applicable laws, regulations, orders and ordinances of any governmental authority;
 

 

 Initials:  ____________________  /  _____________________
 

 

 
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 (f)
 indemnify and save the Seller harmless in respect of any and all costs, claims, liabilities and expenses arising out of the Buyer's activities on the Property or pursuant to the Contractual Interests;
 

 (g)
 deliver to the Seller, forthwith upon receipt thereof, copies of all reports, maps, assay results and other technical data compiled by or prepared at the direction of the Buyer with respect to the Property; 
 

 (h)
 provide regular reasonable updates, requested by the Seller not less frequently than once every financial quarter of CAMERA, of all work done or contemplated with respect to the Property; 
 

 (i)
 fulfill all requirements, covenants and obligations under and in connection with the Assumed Obligations; 
 (j)
 use best efforts to productively operate the Property in accordance with sound mining practices and best reasonable efforts to achieve an optimal productivity therefrom;
 (k)
 fulfill each of its covenants, conditions and obligations under this Agreement, the Master Agreement, the Notes and the other documents and instruments described in the Master Agreement; and
 (l)
 provided each of the Buyer’s obligations under this Agreement have been fulfilled in a timely manner, the Buyer, in consultation with Tara Gold, shall act as the “operator” of the operations on the Property.
 

 EXERCISE OF COMMITMENT TO PURCHASE / TRANSFER OF PROPERTY
 

 5.
 Provided all of the terms and conditions contained in this Agreement have been fulfilled in a timely manner, the Buyer may exercise the Commitment to Purchase by delivering to the Seller written notice of its intention to exercise the Commitment to Purchase.  Such written notice shall be delivered to the Seller on or before within thirty (30) days of first receipt of a Bankable Feasibility Study.  Provided (i) such notice is given, (ii) all of the terms and conditions contained in this Agreement have been fulfilled, and (iii) the Contractual Interests have not been terminated, altered or modified at no fault of Seller, then the Commitment to Purchase shall be effective as of thirty (30) days after written notice is delivered, at which time the following shall occur:
 

 (a)
 a 70% undivided right, title and interest in and to the Property shall be transferred to the Buyer, free and clear of all charges, encumbrances and claims except for those set out in Schedule "A" hereto; and
 

 (b)
 the Seller and the Buyer shall enter into a Joint Operating Agreement in accordance with Section 10 below in a form agreeable to all concerned parties.
 

 

 Initials:  ____________________  /  _____________________
 

 

 
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 RIGHT OF ENTRY
 

 6. 
 Throughout the Commitment Period, the Buyer shall, subject to the terms of the Contractual Interests, have the right in respect of the Property to:
 

 (a)
 enter thereon;
 

 (b)
 have quiet possession thereof;
 

 (c)
 do such prospecting, exploration, development and other mining work thereon and thereunder as the Contractual Interests and applicable law permit and the Buyer in its sole discretion may determine advisable;
 

 (d)
 bring upon and erect upon the Property such buildings, plant, machinery and equipment as the Buyer may deem advisable; and
 

 (e)
 remove therefrom and dispose of reasonable quantities of ores, minerals and metals for the purposes of obtaining assays or making other tests.
 

 TERMINATION OF COMMITMENT TO PURCHASE
 

 7.
 (a)
 The Commitment to Purchase shall terminate:
 

 (i)
 by mutual written consent of the Parties;
 

 (ii)
 the Seller may terminate this Agreement by giving written notice to the Buyer, in the event any of CAMERA or the Buyer has breached any material representation, warranty, or covenant contained in this Agreement and the Seller has notified the Buyer of the breach and the Buyer has failed to correct the same within ten (10) days; and
 (iii)
 the Buyer may terminate this Agreement by giving written notice to the Buyer, in the event any of Tara Gold or the Seller has breached any material representation, warranty, or covenant contained in this Agreement and the Buyer has notified the Seller of the breach and the Seller has failed to correct the same within ten (10) days.
 (b)
 If the Commitment to Purchase is terminated otherwise than upon the exercise thereof, the Buyer shall:
 

 (i)
 leave in good standing for a period of at least six (6) months from the termination of the Commitment Period those mineral claims comprising the Contractual Interests, to the extent allowable by the laws of the jurisdiction in which the Property is situated;
 
 (ii)
 deliver or make available at no cost to the Seller within thirty (30) days of such termination, all drill core, copies of all reports, maps, 
 

 Initials:  ____________________  /  _____________________
 

 

 
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 assay results and other relevant technical data compiled by, prepared at the direction of, or in the possession of the Buyer with respect to the Property and not theretofore furnished to the Seller; and
 

 (iii)
 reclaim the Property in accordance with the requirements of all applicable environmental laws and regulations, but only to the extent that such requirements result from the Buyer's activities on the Property hereunder.
 

 TRANSFERS
 

 8.
 Neither the Seller nor the Buyer may transfer, sell, pledge, assign, sublet or convey any interest under this Agreement without the prior written consent of the other, which consent shall not be unreasonably withheld.  Any transfer without such prior written consent shall be deemed null and void in its entirety.
 

 SURRENDER OF PROPERTY INTERESTS PRIOR TO TERMINATION OF AGREEMENT
 

 9.
 Subject to the restrictions noted below, the Buyer may in its sole discretion at any time during the Commitment Period elect to abandon all but not part of any “Mineral Claim Block” comprised in the Contractual Interests by giving a thirty (30) day notice to the Seller of such intention.  Each of the concession names identified on Schedule “A” attached hereto shall be deemed part of one, single Mineral Claim Block, which is hereinafter referred to as “Mineral Claim Block A”.  Any subsequent additions acquired by the Buyer in accordance with Section 3 (b) (iii) or Section 15 of this Agreement may be deemed part of one or more other Mineral Claim Blocks, as the Parties may reasonably agree at the time of acquisition.  In no case shall the Buyer be entitled to abandon any mineral concession which is part of a Mineral Claim Block without also abandoning each mineral concession in such Mineral Claim Block.  The Buyer shall cause any Mineral Claim Block so abandoned to be in good standing under the laws of the jurisdiction in which they are situate for at least six (6) months from the date of abandonment; provided, however, the Buyer shall not be responsible for matters which keep an abandoned Mineral Claim Block from being in good standing if (A) such matters existed prior to the Buyer’s interest in the applicable claim and (B) the Buyer used its best efforts to cause such good standing.  Upon any such abandonment, any Mineral Claim Block so abandoned shall, for all purposes of this Agreement, cease to form part of the Contractual Interests or the Property and, if title to such claims has been transferred to the Buyer, the Buyer shall, at the Seller’s request retransfer such title to the Seller at the Buyer's expense.  In no case shall the abandonment of any one or more Mineral Claim Block affect in any way the Buyer’s obligations under the Master Agreement or the Notes unless the Buyer abandons each and every Mineral Claim Block under this Agreement, in which case, the Buyer’s obligations under the particular Note which corresponds to this Agreement (La Millonaria), but not the other Notes, shall cease with regard to payments not yet due and payable at the time of the full 
 

 Initials:  ____________________  /  _____________________
 

 

 
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 abandonment of Mineral Claim Blocks hereunder.  With regard to any abandoned Mineral Claim Block, the Assumed Obligations related to the abandoned Mineral Claim Block, shall immediately cease as to such abandoned Mineral Claim Block upon abandonment of such Mineral Claim Block, however, all of the Buyer’s  obligations for the Assumed Obligations which are not expressly applicable only to the abandoned Mineral Claim Block (including, without limitation, the Buyer’s obligations under Sections 3(b)(ii), 3(c), 3(d), 3(e), 3(f) and Section 4 of this Agreement), shall not change due to abandonment of any such Mineral Claim Block, and shall remain fully applicable to all remaining Mineral Claim Blocks, if any.
 

 JOINT OPERATIONS
 

 10.
 CAMERA and Tara Gold agree that, prior to Transfer, CAMERA and Tara Gold shall enter into a Joint Operating Agreement with respect to the Property, which shall include the following terms and be applicable from and after the Transfer: 
 

 (a)
 CAMERA shall be the operator of the joint venture, so long as it maintains a fifty percent (50%) or greater participating interest in the Property;
 

 (b)
 CAMERA shall be required to fund all joint venture and operating costs and expenditures, and Tara Gold shall not be required to make any funding nor shall Tara Gold’s 30% interest in the Property be subject to any dilution;
 

 (c)
 A management committee shall be formed, consisting of two representatives from each joint venture party. The management committee members shall have voting rights in proportion to the parties' respective participating interests. The operator shall present work programs and budgets to the management committee for approval.  In the event of a tie vote, the operator shall have the deciding vote;
 

 (d)
 CAMERA shall provide to Tara Gold an audited statement of the expenditures, excluding IVA taxes, prepared by an independent accounting firm to be mutually accepted by both parties.  CAMERA shall supply Tara Gold with any requested documents related to expenditures prepared by management as requested.
 

 (e)
 CAMERA shall be the operator of all exploration efforts regarding the Property so long as it meets all of the requirements stated in this Agreement.  If at any time CAMERA fails to meet any of the requirements outlined, it shall immediately cease to be operator of exploration and/or production efforts.  Tara Gold may have its representatives on location at any and all times to observe all operations.
 

 (f)
 The profits from operations shall be shared in accordance with the joint venture interest of each Party. 
 

 Initials:  ____________________  /  _____________________
 

 

 
 10
 

 

 

 ARBITRATION
 

 11.
 (a)
 All questions or matters in dispute under this Agreement shall be submitted to arbitration pursuant to the terms hereof.
 

 (b)
 It shall be a condition precedent to the right of any party to submit any matter to arbitration pursuant to the provisions hereof, that any party intending to refer any matter to arbitration shall have given not less than ten (10) days' prior notice of its intention to do so to the other party, together with particulars of the matter in dispute.  On the expiration of such ten (10) days, the party who gave such notice may proceed to refer the dispute to arbitration as provided in paragraph (c).
 

 (c)
 The party desiring arbitration shall appoint one arbitrator, and shall notify the other party of such appointment, and the other party shall, within fifteen (15) days after receiving such notice, either consent to the appointment of such arbitrator which shall then carry out the arbitration or appoint an arbitrator, and the two arbitrators so named, before proceeding to act, shall, within thirty (30) days of the appointment of the last appointed arbitrator, unanimously agree on the appointment of a third arbitrator to act with them and be chairman of the arbitration herein provided for.  If the other party shall fail to appoint an arbitrator within fifteen (15) days after receiving notice of the appointment of the first arbitrator, the first arbitrator shall be the only arbitrator.  If the two arbitrators appointed by the parties shall be unable to agree on the appointment of the chairman, the chairman shall be appointed by the two arbitrators appointed by the parties  The chairman, or in the case where only one arbitrator is appointed, the single arbitrator, shall fix a time and place in the City of Chihuahua, Mexico, for the purpose of hearing the evidence and representations of the parties, and he shall preside over the arbitration and determine all questions of procedure not provided for under this section.  After hearing any evidence and representations that the parties may submit, the single arbitrator, or the arbitrators, as the case may be, shall make an award and reduce the same to writing, and deliver one copy thereof to each of the parties.  The expense of the arbitration shall be paid as specified in the award.
 

 (d)
 The parties agree that the award of a majority of the arbitrators, or in the case of a single arbitrator, of such arbitrator, shall be final and binding upon each of them.
 

 DEFAULT
 

 12.
 If at any time during the Commitment Period a Party is in default of any provision in this Agreement, the other Party may terminate this Agreement, but only if: 
 

 Initials:  ____________________  /  _____________________
 

 

 
 11
 

 

 

 (a)
 it shall have first given to the other Party a notice of default containing particulars of the obligation which such Party has not performed, or the warranty breached and a time period of ten (10) days to cure such default; and
 

 (b)
 such Party has not, within the ten (10) day time period, cured such default.
 

 NOTICES
 

 13.
 Each notice, demand or other communication required or permitted to be given under this Agreement shall be in writing and shall be delivered or telecopied to such party at the address for such party specified above.  The date of receipt of such notice, demand or other communication shall be the date of delivery thereof if delivered or, if given by telecopier, shall be deemed conclusively to be the next business day.  Either party may at any time and from time to time notify the other party in writing of a change of address and the new address to which notice shall be given to it thereafter until further change.
 

 GENERAL
 

 14.
 (a)
 If there is any conflict between the terms of this Agreement and the terms of the Master Agreement, the terms of the Master Agreement shall control.
 

 (b)
 No consent or waiver expressed or implied by either party in respect of any breach or default by the other in the performance by such other of its obligations hereunder shall be deemed or construed to be a consent to or a waiver of any other breach or default.
 

 (c)
 The Parties shall promptly execute or cause to be executed all documents, deeds, conveyances and other instruments of further assurance and do such further and other acts which may be reasonably necessary or advisable to carry out fully the intent of this Agreement or to record wherever appropriate the respective interest from time to time of the parties in the Property.
 

 (d)
 This Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns.
 

 (e)
 This Agreement shall be governed by and construed in accordance with the laws of the Mexican United States.
 

 (f)
 Time shall be of the essence in this Agreement.
 

 

 Initials:  ____________________  /  _____________________
 

 

 
 12
 

 

 (g)
 Wherever the neuter and singular is used in this Agreement it shall be deemed to include the plural, masculine and feminine, as the case may be.
 

 (h)
 Any reference in this Agreement to currency shall be deemed to be U.S. currency.
 

 (i) 
 This Agreement may be executed in counterparts, and if so executed, each counterpart shall be deemed an original.
 

 (j)
 The titles or section headings of the various provisions of this Agreement are intended solely for convenience and ease of reference and shall not in any manner amplify, limit, modify or otherwise be used in the interpretation of any such provisions.
 

 (k)
 This Agreement may not be modified or altered except by a written instrument duly executed by all Parties, and in no case shall any modification or alteration be effective unless such written instrument is duly executed by Tara Gold and CAMERA.
 

 AREA OF MUTUAL INTEREST
 

 15.
 (a)
 If, during the term of this Agreement, any Party stakes or acquires any mineral claims located wholly or partly within an area two (2) miles from the outermost boundary of the Property, the acquiring Party shall forthwith give notice to the other Party of such staking or acquisition, the cost thereof and all details in the possession of that Party with respect to the nature of the claims and the known mineralization. Whenever possible, any Party which intends to acquire additional mineral claims located wholly or partly within an area of two (2) miles from the outermost boundary of the Property, shall inform the other Party of its intention and include the other Party in the acquisition decision and negotiations.
 

 (b)
 The other Party may, within thirty (30) days of receipt of the acquiring Party's notice, elect, by notice to the acquiring Party, to require that such claims be included in and thereafter form part of the Property, as an additional mineral claim block, for all purposes of this Agreement. 
 

 (c)
 If the other Party makes such election, any such related claims shall be made in the name of the Seller and included in and thereafter form part of the Property as a part of an additional Mineral Claim Block (other than Mineral Claim Block A) for the purposes of Section 9 above. The acquisition costs, all expenditures and any associated taxes related to or arising from the acquisition of such mineral claims will be paid by the Buyer.
 

 

 Initials:  ____________________  /  _____________________
 

 

 
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 (d)
 If the other Party does not make such election, such claims acquired or staked shall not form part of the Property and the acquiring Party shall be solely entitled thereto.
 

 (e)
 Nothing contained herein or elsewhere in this Agreement is intended to bestow on the Buyer any right, power or interest to act as an agent of the Seller.
 

 

 

 [signature page follows]
 

 Initials:  ____________________  /  _____________________
 

 

 
 

 

 IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.
 

 

 AMERMIN S.A DE C.V
 

 

 Per : /s/ Ramiro Trevizo Ledezma____________
         Ramiro Trevizo Ledezma, duly authorized
 

 

 MINERO LA CAMERA MEXICO, S.A. DE C.V.
 

 

 Per :  /s/ David Deslauriers_______________
          duly authorized
 

 

 TARA GOLD RECOURCES CORP. 
 

 

 Per : /s/ Francis Richard Biscan Jr. _________
         Francis Richard Biscan Jr., duly authorized
 

 

 LA CAMERA MINING INC. 
 

 

 Per : /s/ David Deslauriers_______________
          duly authorized
 

 Initials:  ____________________  /  _____________________
 

 
 

 

 SCHEDULE "A"
 

 

 	 	 
	 Mining Concessions:

	 Title:
	 Name:

	 181,965
	 La Colmena

	 196,120
	 La Billonaria

	 191,845
	 Cuitlahuac

	 211,981
	 La Mexicana

 

 

 Future Mineral Claim Blocks will be added as they are acquired under Section 15 of this Agreement.
 

 

 

 

 Initials:  ____________________  /  _____________________
 

 
 SCHEDULE “B”

CONTRACTUAL INTERESTS
 

 See Attached
 

 

 

 Initials:  ____________________  /  _____________________
 

 
 SCHEDULE “C”
 

 THE MILLONARIA PROJECT
 

 	 	 
	 Mining Concessions:

	 Title:
	 Name:

	 181,965
	 La Colmena

	 196,120
	 La Billonaria

	 191,845
	 Cuitlahuac

	 211,981
	 La Mexicana

 

 I.
 Payment and tax obligations:
 

 -
 In order to determine the price to be paid by the buyer for the title of the mining concessions, drilling studies have to be performed at the mining site at its own cost, attending to the 43/101 international standards, pursuing the specification of the positive in situ reserves and the probable in situ reserves.
 

 -
 Once the studies are concluded, the price shall be fixed by adding: (1) The 1% (one per cent) of the positive in situ reserves multiplied by the last 12 months average of the international market value of an ounce of gold, and; (2) The 0.5% (point five percent) of the probable in situ reserve, likewise multiplied by the last 12 months average of the international market of an ounce of gold.
 

 -
 Nevertheless, the price to be paid by the buyer for the title of the mining concessions can not be more than $7’000,000.00 Dollars, plus V. A. T., even though the calculation mentioned above results in a higher price.
 

 -
 Payments of $90,000.00 plus V.A.T. taxes must be made every 90 days beginning January 24, 2008, which shall continue until the investment commitment of 2 million is complete.
 

 -
 The to-be-determined price shall be paid in five years, attending to the following percentages: (1) 5% (five per cent) during the first year; (2) 10% (ten per cent) during the second year; (3) 20% (twenty per cent) during the third year; (4) 25% (twenty five per cent) during the fourth year, and; (5) 40% (forty per cent) during the fifth year.
 

 -
 From the to-be-determined price, the following specific payments shall be discounted, since the buyer is obliged to pay them while the drilling studies are performed:
 

 -
 ISR taxes due
 

 Initials:  ____________________  /  _____________________
 

 
 2
 

 

 

 

 Total Expenditure to October 24, 2007
 

 1.
 The amount of $136,000.00 Dollars, already paid as a consequence of the prior Association in Participation Agreement executed and performed by the parties before;
 

 2.
 The following specific previous payments have also been made:
 

 	 	 	 	 
	 Date:
	 Amount:
	 V. A. T.:
	 Total:

	 October 23rd, 2006
	 $30,000.00
	 $4,500.00
	 $34,500.00

	 November 24th, 2006
	 $15,000.00
	 $2,250.00
	 $17,250.00

	 January 24th, 2007
	 $45,000.00
	 $6,750.00
	 $51,750.00

	 April 24th, 2007
	 $90,000.00
	 $13,500.00
	 $103,500.00

	 July 24th, 2007
	 $90,000.00
	 $13,500.00
	 $103,500.00

	 October 24th, 2007
	 $90,000.00
	 $13,500.00
	 $103,500.00

	 TOTALS:
	 $360,000.00
	 $54,000.00
	 $414,000.00

 Total expenditures through October 24, 2007 = $496,000.00
 

 

 Note 1: The seller granted a 30 (thirty) days grace period to pay the above described installments.
 

 

 II.
 Investments
 

 -
 The buyer has the obligation to invest $2’000,000.00 Dollars, within 2 years, in drilling exploration studies, in order to determine the positive and probable in situ reserves in the mining site and, consequently, be able to fix the price to be paid for the mining concessions. This investment shall start once the seller legally proofs the good standing of the title over all four mining concessions, including “La Millonaria”, taking into account that some administrative proceedings are still in progress before the General Mining Bureau.
 

 -
 The buyer is obliged to pay all costs related to the use of the superficial land located over the mining site, including any rents or administrative proceedings to be filed before the corresponding authorities.
 

 -
 The buyer must pay all costs related to the reforestation of the mining site if applicable according to Mexican law, as well as any other expenditure regarding environmental issues.
 

 

 Initials:  ____________________  /  _____________________
 

 

 
 3
 

 

 

 III.
 Obligations before the Mining Authorities
 

 The buyer is obliged to comply with all obligations before the General Mining Bureau, including the payment of any mining duties (each semester) and the filing of the required work assessments’ reports, as well as any other obligations to maintain in good standing said concessions.
 

 

 IV.
 Taxes
 

 The Buyer shall pay all applicable taxes, including, without limitation, all ISR and IVA taxes, resulting from or related to the Contractual Interests, the Property and the operations conducted under this Agreement.
 

 

 

 

 

 Initials:  ____________________  /  _____________________
 

 

 
 SCHEDULE "D"
 

 

 Amermin Wiring Instructions
 

 

 Bank Name:
      Scotia Bank Inverlat
 

 Address:
 Ave Nines Heros #403
 Chihuahua, Chihuahua
 Mexico
 

 Phone:
 011-52-614-415-5198
 

 Company:
 Corporacion Amermin S.A. De C.V.
 

 Address:
 Calle Allende #104, Int. 103
 Col. Centro
 Chihuahua, Chihuahua C.P. 3100
 Mexico
 

 Phone:
 011-52-635-457-4059
 

 U.S. Account:
  XXXXXXXXXXXX
 

 ABA:
 MBCOMXMM
 

 Code:
          XXXXXXXXXXXXXX
 

 or
 

 (Only use this account if directed too)
 

 Peso Account:
  XXXXXXXXXXXXXx
 

 ABA: 
 MBCOMXMM
 

 Code:
          XXXXXXXXXX
 

 

 Initials:  ____________________  /  _____________________Converted by EDGARwiz

  MASTER AGREEMENT
 

 This Master Agreement (this “Master Agreement”) is made and entered into as of the 19th day of December, 2007 by and among Tara Gold Resources Corp., a Nevada corporation (“Tara”), Corporacion Amermin, S.A. de C.V., a company incorporated under the laws of the Mexican United States and affiliate of Tara (“Amermin” and together with Tara, the “Tara Parties”), La Camera Mining Inc., a company incorporated under the Business Corporations Act (Ontario) (“Camera”), and Minero La Camera Mexico, S.A de C.V., a company incorporated under the laws of the Mexican United States and subsidiary of Camera (“Minero” and together with Camera, the “Camera Parties”).  Each of Tara, Amermin, Camera and Minero are referred to herein individually as a “Party” and collectively as the “Parties.”
 

 RECITAL:
 

 A.
 The Parties desire to enter into a business relationship to exploit certain mining ventures located in the Mexican United States.  
 

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

 AGREEMENT: 
 

 1.
 Binding Agreements to Purchase.  On the Closing Date (hereinafter defined), each Party shall execute and deliver to other Parties three purchase right agreements in the forms attached hereto as Exhibits A, B and C (the “Binding Agreements to Purchase”).  In consideration for the Tara Parties’ grant of purchase rights to Camera pursuant to the Binding Agreements to Purchase, Camera shall:
 (i)
 pay Tara (a) an aggregate of Two Hundred Thirty Thousand Dollars ($230,000) on or before December 31, 2007; (b) an aggregate amount of Three Hundred Fifty Thousand Dollars ($350,000) on or before May 1, 2008; and (c) until Camera delivers to Tara a Bankable Feasibility Study (defined below) relating to the property commonly known as “Curcurpe”, Two Hundred Fifty Thousand Dollars ($250,000) on January 1, 2009 and each anniversary thereof (all payments under this Section 1(i) shall be referred to herein as the “Curcurpe Fees”);
 (ii)
 pay Tara (a) an aggregate amount of Three Hundred Fifty Thousand Dollars ($350,000) on or before May 1, 2008; and (b) until Camera delivers to Tara a Bankable Feasibility Study relating to the property commonly known as “La Millonaria”, Two Hundred Fifty Thousand Dollars ($250,000) on January 1, 2009 and each anniversary thereof (all payments under this Section 1(ii) shall be referred to herein as the “La Millonaria Fees”);
 (iii)
 pay Tara (a) an aggregate amount of One Million Dollars ($1,000,000) at Closing (the “Picacho Closing Payment”); (b) an aggregate amount of One Million Dollars ($1,000,000) on or before May 1, 2008; (c) subject to the Payment Termination Test set forth in  Section 3(h) of the Binding Agreement to Purchase relating to Picacho, an aggregate amount of 
 

 1
 

 
 Five Hundred Thousand Dollars ($500,000) on or before December 31, 2008; (d) an aggregate amount of One Million Dollars ($1,000,000) on or before December 31, 2009; and (e) an aggregate amount of One Million Dollars ($1,000,000) on or before December 31, 2010 (the Picacho Closing Payment, together with all other payments under this Section 1(iii) shall be referred to herein as the “Picacho Fees”); 
 (iv)
 pay Amermin an aggregate amount of Two Hundred Sixty Thousand Dollars ($260,000) on or before December 31, 2007 (the “ISR Payment”), which amount shall be payable in immediately available funds by wire transfer to Scotia Bank Inverlat, Ave Ninos Heroes #403, Chihuahua, Chihuahua, Mexico (ABA / Routing Number: MBCOMXMM), for the account of Corporacion Amermin S.A. De C.V. (Account Number: 3377067; Code: 044150215033770671); and
 

 (v)
 issue to Tara an aggregate amount of One Million Five Hundred Thousand (1,500,000) fully paid and non-assessable shares of Camera common stock, par value CD$0.001 per share, free and clean of any lien, claim or encumbrance at Closing (the “Common Stock”), and shall register such issuance in the books and records of the company.    
 As used in this Master Agreement, a “Bankable Feasibility Study” shall mean a detailed study of the geological, engineering, operating and economic factors relating to mining at the property identified in the applicable Binding Agreement to Purchase, in a form acceptable to a commercial financial institution in order to finance such property.
 Notwithstanding anything to the contrary contained herein, if the Camera Parties abandon each and every claim block underlying a Binding Agreement to Purchase in accordance with Section 9 of such Binding Agreement to Purchase (an “Abandonment”), all principal not yet due and payable under the Note (defined below) relating to such Binding Agreement to Purchase shall be released in full, in favor of the Camera Parties, as of the effective date of such Abandonment.  
 2.
 Appointment of Biscan to Camera Board of Directors.  For a period of five (5) years from and after the Closing Date, and not withstanding any Abandonment (the “Board Term”), Camera shall take all lawful action to:
 

 (i)
 permit Francis Richard Biscan Jr. or a person designated by Biscan in writing (Biscan or such designated person, the “Representative”), at all times during the Board Term, to (a) receive notice of all meetings of the Board of Directors of Camera (the “Board”) at the same time as such notice is provided to members of the Board generally; (b) be present as an observer at all meetings of the Board; (c) receive payment or reimbursement for the cost of attending meetings of the Board to the same extent available to members of the Board generally; provided, however, that unless the Representative is serving as a member of the Board pursuant to Section 2(ii) hereof, the Representative shall not be entitled to receive a fee for his attendance at such meetings; and (d) receive all documents or other materials delivered or made available to members of the Board generally at the same time as such materials are delivered or made available to members of the Board generally; and
 

 

 2
 

 
 
 (ii)
 upon Biscan’s request, cause the Representative to be elected to the Board (including, without limitation, causing the Representative to be nominated and recommended to serve on the Board) and receive the same rights and privileges offered to members of the Board generally.  If the Representative resigns or is removed from the Board for any reason during the Board Term, the rights and obligations set forth in Section 2(i) hereof shall continue to apply during the Board Term. 
 

 Biscan shall be entitled to replace any delagee serving as Representative at any time during the Board Term upon written notice of same to Camera.  Biscan shall be an intended third-party beneficiary of, and entitled to enforce, this Section 2.
 

 3.
 Conditions Precedent to Obligations of Camera.  The obligations of Camera toconsummate the transactions contemplated by this Master Agreement shall be subject to fulfillment at or prior to Closing of the following conditions (any one or more of which may be waived in whole or in part by Camera by written instrument):
 

 (i)
 The Tara Parties shall have in all material respects performed and complied with all of their covenants and obligations contained in this Master Agreement to be performed and complied with by them on or prior to Closing.
 

 (ii)
 The representations and warranties of the Tara Parties contained herein shall have been accurate, true and correct in all material respects on and as of the date hereof, and shall also be accurate, true and correct in all material respects on and as of the Closing with the same force and effect as though made by the Tara Parties on and as of the Closing.
 

 (iii)
 Camera shall be satisfied, in its sole discretion, with the results of its business, legal and financial due diligence investigation of the matters and properties to which the Binding Agreements to Purchase pertain.
 

 (iv)
 The Tara Parties shall have effected the deliveries required pursuant to Section 6.
 

 4.
 Conditions Precedent to Obligations of the Tara Parties.  The obligations of the Tara Parties to consummate the transactions contemplated by this Master Agreement shall be subject to fulfillment at or prior to Closing of the following conditions (any one or more of which may be waived in whole or in part by the Tara Parties by written instrument):
 

 (i)
 The Letter of Agreement and Full and Final Release dated November 30, 2007 and attached hereto as Exhibit D (collectively, the “Release”) shall be in full force and effect.  
 

 (ii)
 Camera shall have in all material respects performed and complied with all of its covenants and obligations contained in this Master Agreement to be performed and complied with by it on or prior to Closing.
 

 

 3
 

 
 
 (iii)
 The representations and warranties of Camera contained herein shall have been accurate, true and correct in all material respects on and as of the date hereof, and shall also be accurate, true and correct in all material respects on and as of the Closing with the same force and effect as though made by Camera on and as of the Closing.
 

 (iv)
 The Tara Parties shall be satisfied, in their sole discretion, with the results of its business, legal and financial due diligence investigation of Camera and Minero.
 

 (v)
 Camera shall have effected the deliveries required pursuant to Section 5.
 

 5.
 Camera’s Deliveries.  At Closing, Camera shall deliver or cause to be delivered to the Tara Parties the following:
 

 (i)
 The Picacho Closing Payment, in immediately available funds by wire transfer to the following account: 
 

 Bank name, address and phone:
 Bank of America
 18 Blanchard Circle  
 Wheaton, IL 60187
 United States of America
 630-384-3925
 ABA / Routing Number: 
 026009593
 For the account of: 
 Tara Gold Resources Corp.
 Account Number: 
 002872837056
 

 (ii)
 three promissory notes payable to Tara, representing the portions of the Curcupe Fees, La Millonaria Fees and Picacho Fees payable after Closing, in the forms attached hereto as Exhibits E, F and G (the “Notes”);  
 

 (iii)
 a copy of each Binding Agreement to Purchase, executed by Camera and Minero;
 

 (iv)
 a copy of the fully-executed Release; and
 

 (v)
 a certificate representing the Common Stock issued to Tara. 
 

 6.
 Tara’s Delivery.  At Closing, the Tara Parties shall deliver or cause to be delivered to Camera a copy of each Binding Agreement to Purchase, executed by each of the Tara Parties.
 

 7.
 Closing.  The Closing contemplated by this Master Agreement shall occur at 10:00 a.m. central time on December 19, 2007 at the offices of Fox, Hefter, Swibel, Levin & Carroll, LLP, 321 North Clark Street, Suite 3300, Chicago, Illinois, or at such other time and place as the parties agree upon in writing (the closing date shall be referred to herein as the “Closing Date”).  The Closing may, with the consent of the Parties, take place by delivering an 
 

 4
 

 
 exchange of documents by facsimile transmission or electronic mail with originals to follow by overnight mail service courier.
 

 8.
 Termination.  This Master Agreement shall terminate:
 

 (i)
 upon the mutual written agreement of all Parties;
 

 (ii)
 upon written notice from either of the Tara Parties to Camera if any of the conditions precedent set forth in Section 4 shall not have been fulfilled (and shall not have been waived by the Tara Parties by the Closing Date), so long as the Tara Parties are not then in material breach of any of their representations, warranties, covenants or agreements contained in this Master Agreement; or  
 

 (iii)
 upon written notice from Camera to the Tara Parties if any of the conditions precedent set forth in Section 3 shall not have been fulfilled (and shall not have been waived by Camera by the Closing Date), so long as Camera is not then in material breach of any of its representations, warranties, covenants or agreements contained in this Master Agreement.
 

 Upon termination of this Master Agreement pursuant to this Section 8, this Master Agreement and the rights and obligations of each Party contained herein shall be null, void and of no further effect.  For the avoidance of all doubt, but without limiting the forgoing, upon termination of this Master Agreement pursuant to this Section 8, each of the Binding Agreements to Purchase and Notes shall be null and void and Camera shall have no right, claim or interest to any of the properties underlying or any rights or obligations arising under the Binding Agreements to Purchase.  In no event shall Camera be entitled to reimbursement, refund or restitution for any payment made by Camera pursuant to this Master Agreement, the Release or any Binding Agreement to Purchase, notwithstanding (a) any termination of this Master Agreement, the Release or any Binding Agreement to Purchase; or (b) the failure of the Closing to occur.          
 

 9.
 Representations, Warranties, and Covenants of the Tara Parties.  Each of the Tara Parties hereby represents, warrants and covenants to Camera as follows: 
 (i)
 Power and Authority.  Such Tara Party has full corporate right, power and authority to execute, deliver and perform this Master Agreement and the Binding Agreements to Purchase.  This Master Agreement has been duly executed and delivered by such Tara Party and constitutes the legal, valid and binding obligation of such Tara Party, enforceable against it in accordance with its terms.  When executed at Closing, the Binding Agreements to Purchase will be duly executed and delivered by such Tara Party and constitute the legal, valid and binding obligation of such Tara Party, enforceable against such Tara Party in accordance with its terms.
 

 (ii)
 Non-Contravention. The execution and delivery of this Master Agreement, and the consummation of the transactions contemplated hereby, will not: (a) violate any governmental law, rule or regulation to which such Tara Party is subject or any provision of the organizational documents of such Tara Party; or (b) result in a breach of, constitute a default under, or result in the acceleration or termination of, any material agreement, lease, license or instrument to which such Tara Party is a party.  Such Tara Party is not required to give any notice to, make any filing with, or obtain any authorization, consent or approval of any 
 

 5
 

 
 government or governmental agency in order for the parties hereto to consummate the transactions contemplated by this Master Agreement.
 

 (iii)
 Pre-Closing Access to Information.  Prior to the Closing, subject to any applicable legal restrictions, such Tara Party shall afford Camera and its counsel, accountants and other authorized representatives, upon reasonable prior notice, reasonable access during normal business hours (when accompanied by an authorized representative of such Tara Party) to the information and documents relating to the properties underlying the Binding Agreements to Purchase.
 

 (iv)
 Pre-Closing Operation of the Properties.  Prior to the Closing, such Tara Party shall continue to discharge its obligations under the agreements referenced in the Binding Agreements to Purchase (which are to be discharged by Camera after Closing).  
 

 10.
 Representations, Warranties, and Covenants of Camera.  Camera hereby represents, warrants and covenants to each Tara Party as follows:
 (i)
 Power and Authority.  Camera has full corporate right, power and authority to execute, deliver and perform this Master Agreement, the Binding Agreements to Purchase and the Notes.  This Master Agreement has been duly executed and delivered by Camera, and constitutes the legal, valid and binding obligation of Camera enforceable against Camera in accordance with its terms.  When executed at Closing, the Binding Agreements to Purchase and the Notes shall have been duly executed and delivered by Camera and constitute the legal, valid and binding obligation of Camera, enforceable against Camera in accordance with its terms.
 (ii)
 Non-Contravention.  The execution and delivery of this Master Agreement, the Binding Agreements to Purchase, and the Notes, and the consummation of the transactions contemplated thereby, will not: (a) violate any governmental law, rule or regulation to which Camera is subject or any provision of the organizational documents of Camera; or (b) result in a breach of, constitute a default under, or result in the acceleration or termination of, any material agreement, lease, license or instrument to which Camera is a party.  Camera is not required to give any notice to, make any filing with, or obtain any authorization, consent or approval of any government or governmental agency in order for the parties hereto to consummate the transactions contemplated by this Master Agreement, the Binding Agreements to Purchase or the Notes.
 (iii)
 Pre-Closing Access to Information.  Prior to the Closing, subject to any applicable legal restrictions, Camera shall afford each Tara Party and its counsel, accountants and other authorized representatives, upon reasonable prior notice, reasonable access during normal business hours (when accompanied by an authorized representative of Camera) to the information and documents relating to the Camera Parties, the operation of its business and its financial condition and shall provide each Tara Party with copies of all requested documentation and financial information related thereto that are within either Camera Party’s possession or control.
 

 

 6
 

 
 
 11.
 Disclaimer of Additional Representations and Warranties.  Neither Tara nor Amermin makes representations or warranties of any kind except as expressly set forth in this Master Agreement, the Binding Agreements to Purchase or the Notes.  Camera acknowledges and understands that it must exercise its own diligence to examine and evaluate all aspects of the transactions, property interests, rights and obligations underlying the Master Agreement and each Binding Agreement to Purchase and that it is relying solely and exclusively on its own diligence and review and not on any representation, warranty statement or information provided by or on behalf of any Tara Party or any employee, officer or representative of either of them, except for the representations and warranties expressly set forth herein or in the Binding Agreements to Purchase.  Camera acknowledges and understands that it has received and reviewed to its satisfaction all documents and agreements referenced in the Binding Agreements to Purchase and has undertaken or will undertake prior to Closing, at its own expense, said review of the conditions and circumstances of the property underlying the Binding Agreements to Purchase.
 12.
 Guaranty of Camera.  
 (i)
 Nature of Guaranty.  Camera hereby absolutely and unconditionally guarantees to the Tara Parties, as primary obligor and not merely as surety, the full and prompt payment and performance when due of all of Minero’s duties, agreements, covenants, terms, and obligations under the Binding Agreements to Purchase (the “Guaranteed Obligations”).  Camera guarantees that the Guaranteed Obligations will be paid and performed strictly in accordance with the terms of the Binding Agreements to Purchase. The obligations of Camera hereunder are absolute, present, and continuing obligations which are not conditional upon the exercise of any remedies against Minero or the making of a demand against Minero or the filing of a suit to obtain or assert a claim for personal judgment against Minero for the Guaranteed Obligations or the making of an effort at collecting the Guaranteed Obligations from Minero, or any attempt to foreclose or realize upon any security for obligations of Minero or the taking of any other action with respect to Minero, it being expressly acknowledged and agreed that Camera shall be directly obligated hereunder for all amounts payable by Minero under the Binding Agreements to Purchase and for breaches of or failures to perform or observe, or any other noncompliance with any covenant, condition, or agreement or other obligation to be performed by Minero under the Binding Agreements to Purchase or the inaccuracy (in any material respect) of any representation or warranty of Minero in the Binding Agreements to Purchase.  The liability of Camera under this Guaranty shall not be subject to any counterclaim, setoff, deduction, release, recoupment, or defense and shall remain in full force and effect and shall be irrevocable, absolute and unconditional, irrespective of: (a) any lack of validity, genuineness, or enforceability of the Binding Agreements to Purchase or any other agreement or instrument relating thereto; (b) any change in the time, manner, or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of, or any consent to departure from, the Binding Agreements to Purchase; (c) any bankruptcy or insolvency of, or any merger or consolidation of, or any sale of shares in, Minero; (d) any failure by either of the Tara Parties to pursue remedies against Minero; (e) the pursuit by either Tara Party of whatsoever remedies there may be against Minero, any other guarantor or any security for any or all of the Guaranteed Obligations; (f) any claim as a result of any other dealing between either Tara Party and Minero; or (g) any other occurrence or circumstances whatsoever, whether similar or dissimilar to the foregoing and any other circumstances (other than actual payment or performance) that might otherwise constitute a legal or equitable defense or 
 

 7
 

 
 discharge of the liabilities of a guarantor or surety or that might otherwise limit recourse against Minero.  Indefeasible fulfillment by Minero or Camera of any of the Guaranteed Obligations shall dispose of any claim hereunder with respect to, and to the extent of, such of the Guaranteed Obligations.
 

 (ii)
 Waiver.  Camera hereby waives (a) notice of any of the foregoing matters, (b) promptness, diligence, demand, protest, proof, or notice of nonperformance and notice of acceptance, and (c) any other notice with respect to any of the Guaranteed Obligations and this Section 12.
 

 (iii)
 Right to Deal with Minero.  At any time and from time to time, without terminating, affecting or impairing the validity of the obligations of Camera under this Section 12,  the Tara Parties may deal with Minero in the same manner and as fully as if this Section 12 did not exist and shall be entitled, among other things, to grant Minero such extension or extensions of time to perform, or to waive any obligation of Minero to perform, any act or acts as may to either Tara Party be deemed advisable, and no such waiver or extension shall in any way limit or otherwise affect any of Camera's obligations under this Section 12.
 

 (iv)
 No Waiver; Remedies.  No failure on the part of either Tara Party to exercise, and no delay in exercising any right under this Section 12 shall operate as a waiver thereof; nor shall any single or partial exercise of any right under this Section 12 preclude any other or further exercise thereof or the exercise of any other right.  The remedies provided in this Section 12 are cumulative and not exclusive of any remedies provided by law.
 

 (v)
 Continuing Agreement; Transfer of Interest.  This Section 12 is a continuing agreement and shall (a) remain in full force and effect until payment and performance in full of the Guaranteed Obligations; (b) be binding upon Camera, and its successors and assigns, and (c) inure to the benefit of and be enforceable by either Tara Party and its successors, transferees, and assigns.  Camera shall execute and deliver to the Tara Parties, upon their request, such instruments and assurances and take such other actions as may be necessary or advisable to confirm or evidence the rights under this Section 12 of any successor, transferee or assignee to or of either Tara Party.
 

 (vi)
 Enforcement Expenses.  Camera agrees to pay to the Tara Parties any and all reasonable costs and expenses (including reasonable legal fees) incurred by the Tara Parties in enforcing their rights under this Section 12.
 

 13.
 Miscellaneous
 (i)
 Letter of Intent.  The Letter of Intent by and among Camera, Tara and Amermin, dated as of November 27, 2007, shall terminate on the date hereof. 
 (ii)
 Currency.  Except as expressly set forth herein, all references in this Master Agreement to currency shall be deemed to be U.S. currency.
 (iii)
 Notices.  All notices or other communications required or permitted hereunder shall be in writing and shall be deemed given, delivered and received (a) when 
 

 8
 

 
 delivered, if delivered personally; (b) four (4) days after mailing, when sent by registered or certified mail, return receipt requested and postage prepaid; and (c) one (1) business day after delivery to a private courier service, when delivered to a private courier service providing documented overnight service, in each case addressed as follows:
 If to Camera or Minero:
 

 La Camera Mining Inc.
 131 Bloor Street West
 Upper Penthouse West
 Toronto, ON M5S 1S3
 Canada
 

 If to Tara or Amermin:
 

 Tara Gold Resources Corp.
 2162 Acorn Court
 Wheaton, IL 60187
 United States of America
 

 With a copy to each of:
 

 Martin B. Carroll, Esq.
 Fox, Hefter, Swibel, Levin & Carroll, LLP
 321 North Clark Street, Suite 3300
 Chicago, Illinois 60610
 United States of America
 

 Jose Alberto Jimenez Probert, Esq.
 Jimenez Probert
 Calle 16 de Septiembre 608
 Col. Cuauhtemoc, C.P. 31020
 Ciudad de Chihuahua, Chihuahua
 Mexico
 

 or to such other address or addresses as may hereafter be specified by notice given by either Party to the other.   
 

 (iv)
 Successors and Assigns.  This Master Agreement may not be assigned by any Party without the express written consent of all other Parties.  This Master Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns.  Nothing in this Master Agreement, expressed or implied, is intended or shall be construed to confer upon any person other than the Parties and their successors and assigns any right, remedy or claim under or by reason of this Master Agreement.
 (v)
 Entire Agreement; Amendments.  This Master Agreement contains the entire understanding of the Parties with regard to the subject matter contained herein, and 
 

 9
 

 
 supersedes all prior agreements, understandings or letters of intent between the Parties.  This Master Agreement shall not be amended, modified or supplemented except by a written instrument signed by the Parties.
 (vi)
 Interpretation.  Headings to sections herein are inserted for convenience of reference only and are not intended to affect the interpretation of this Master Agreement.
 (vii)
 Partial Invalidity.  Wherever possible, each provision hereof shall be interpreted in such manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such invalid, illegal or unenforceable provision or provisions or any other provisions hereof, unless such a construction would be unreasonable.
 (viii)
 Specific Performance.  Each Party agrees that the others would be damaged irreparably in the event any of the provisions of this Master Agreement are not performed in accordance with their specific terms or are otherwise breached.  Accordingly, each such Party agrees that the other Parties shall be entitled to an injunction or specific performance to prevent breaches of the provisions of this Master Agreement and to enforce specifically this Master Agreement and the terms and conditions hereof, in addition to any other remedy to which it may be entitled, at law or in equity.  
 (ix)
 Expenses.  Each Party shall bear its own costs and expenses (including legal and accounting fees, costs and expenses) incurred in connection with this Master Agreement and the transactions contemplated hereby.
 (x)
 Governing Law.  This Master Agreement shall be governed by and construed in accordance with the internal laws (as opposed to the conflicts of law provisions) of the State of Illinois.  Any litigation arising out of or related to this Master Agreement shall be instituted and prosecuted only in the appropriate state or federal court or other tribunal situated in Chicago, Illinois.  Each Party hereby submits to the exclusive jurisdiction of such courts and tribunals for purposes of any such action and the enforcement of any judgment or order arising therefrom.  Each Party hereby waives any right to a change of venue and any and all objections to the jurisdiction of the state and federal courts and other tribunals located in Chicago, Illinois.
 (xi)
 Incorporation of Recitals and Exhibits.  The recitals set forth on page 1 hereof, and the exhibits attached hereto, are hereby incorporated into this Master Agreement by this reference.
 (xii)
 Execution in Counterparts.  This Master Agreement may be executed in counterparts, each of which shall be considered an original instrument, but all of which together shall be considered one and the same agreement.
 

 [Signature Page to Follow]
 

 

 

 10
 

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

 TARA:
 

 TARA GOLD RESOURCES CORP.
 

 By:  /s/ Francis Richard Biscan Jr
 Name:  Francis Richard Biscan Jr.
 Title:  
 

 AMERMIN:
 

 CORPORACION AMERMIN, S.A. DE C.V.
 

 By: /s/ Ramiro Trevizo Ledezma
 Name: Ramiro Trevizo Ledezma
 Title: 
 

 CAMERA:
 

 LA CAMERA MINING INC.
 

 By: /s/ David Deslauriers
 Name: David Deslauriers
 Title: 
 

 MINERO:
 

 MINERO LA CAMERA MEXICO, S.A. DE C.V.
 

 By: /s/ David Deslauriers
 Name: 
 Title: 
 

 

 

 Master Agreement
 

 
 EXHIBIT A
 

 BINDING AGREEMENT TO PURCHASE INTEREST IN “CURCURPE”
 

 

 See attached.
 

 Exhibit A
 

 

 
 EXHIBIT B
 

 BINDING AGREEMENT TO PURCHASE INTEREST IN “LA MILLONARIA”
 

 See attached.
 

 

 Exhibit B
 

 

 
 EXHIBIT C
 

 BINDING AGREEMENT TO PURCHASE INTEREST IN “PICACHO”
 

 See attached.
 

 Exhibit C
 

 
 EXHIBIT D
 

 RELEASE
 

 See attached.
 

 Exhibit D
 

 
 EXHIBIT E
 

 PROMISSORY NOTE FOR CURCURPE FEES PAYABLE AFTER CLOSING
 

 See attached.
 

 Exhibit E
 

 
 EXHIBIT F
 

 PROMISSORY NOTE FOR LA MILLONARIA FEES PAYABLE AFTER CLOSING
 

 See attached.
 

 Exhibit F
 

 
 EXHIBIT G
 

 PROMISSORY NOTE FOR PICACHO FEES PAYABLE AFTER CLOSING
 

 See attached.
 

 

 Exhibit G

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